Financial Data and Key Metrics Changes - Consolidated revenue decreased by 7% year-over-year to $967 million, with non-GAAP operating income from continuing operations at $17 million compared to $43 million in the prior year [22] - Adjusted earnings per share were $0.51, down from $1.34 in Q1 2024 [22] - The Asset Based segment saw a $27 million decrease in operating income, while the Asset Light segment's non-GAAP operating loss improved by $4 million year-over-year [22] Business Line Data and Key Metrics Changes - Asset Based business revenue was $646 million, a daily decrease of 3%, with an operating ratio of 95.9%, an increase of 390 basis points year-over-year [23] - Daily shipments in the Asset Based segment were flat year-over-year, while weight per shipment decreased by 4%, leading to a 4% decrease in tons per day [23] - Asset Light segment revenue was $356 million, a daily decrease of 9%, with shipments per day down 4% [28] Market Data and Key Metrics Changes - In April 2025, the Asset Based business achieved a 4% year-over-year increase in daily shipments, despite a 3% decrease in weight per shipment [26] - The pricing environment remains rational, with a 4.9% average increase on contract renewals during the quarter [25][51] - The company anticipates a non-GAAP operating loss for the Asset Light segment of between $1 million and $2 million for Q2 2025 [30] Company Strategy and Development Direction - The company is focused on driving profitable growth, advancing premium service for customers, and optimizing efficiency [11] - Investments in technology and operational efficiency are expected to enhance service levels and reduce costs [89] - The company is adapting to changes in trade policies and tariffs, aiming to support customers in navigating these challenges [5][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term value despite challenges in the freight environment [10] - The leadership team highlighted a disciplined approach to pricing and operational efficiency to outpace rising costs [25][66] - Management noted that customer relationships remain strong, with 80% of revenue coming from long-term customers [67] Other Important Information - The company has a capital expenditure guidance of $225 million to $275 million for 2025, focusing on maintenance and strategic investments [30] - Approximately $350 million in available liquidity is reported, indicating a strong balance sheet [31] Q&A Session Summary Question: Near term setup and profitability outlook - Management expects normal seasonality to drive revenue increases and continues to target cost reductions aligned with business levels [34][36] Question: Tonnage and revenue per hundredweight trends - Management noted a 1% sequential increase in tonnage but a 1% decrease in revenue per hundredweight, attributing this to a mix of easier-to-handle shipments [38][66] Question: Pricing environment and competitive landscape - Management indicated that the pricing environment remains rational, with no significant pressure from competitors to lower prices [51][52] Question: Retail exposure and inbound traffic from China - The company has around 10% exposure to the retail sector, with varying impacts from inbound traffic from China [78] Question: Strategies in a stagflation environment - Management emphasized operational efficiencies and strategic investments to navigate inflationary pressures while maintaining service levels [88][91]

Financial Data and Key Metrics Changes - Consolidated revenue decreased by 7% year-over-year to $967 million, with non-GAAP operating income from continuing operations at $17 million compared to $43 million in the prior year [24] - Adjusted earnings per share were $0.51, down from $1.34 in Q1 2024 [24] - The Asset Based segment saw a $27 million decrease in operating income, while the Asset Light segment's non-GAAP operating loss improved to $1 million from $4 million the previous year [24] Business Line Data and Key Metrics Changes - Asset Based business revenue was $646 million, a daily decrease of 3%, with an operating ratio of 95.9%, an increase of 390 basis points year-over-year [25] - Daily shipments in the Asset Based segment were flat year-over-year, while weight per shipment decreased by 4%, resulting in a 4% decrease in tons per day [25] - Asset Light segment revenue was $356 million, a daily decrease of 9%, with shipments per day down 4% due to a strategic reduction in less profitable truckload volumes [29] Market Data and Key Metrics Changes - In April 2025, the Asset Based business achieved a 4% year-over-year increase in daily shipments, despite a 3% decrease in weight per shipment [28] - The pricing environment remains rational, with a 4.9% average increase on contract renewals during the quarter [27][53] - The company noted a decline in shipments within the manufacturing vertical, impacting revenue per hundredweight [28] Company Strategy and Development Direction - The company is focused on driving profitable growth, advancing premium service for customers, and optimizing efficiency [13] - Investments in technology and operational efficiency are expected to enhance service levels and reduce costs [89] - The company is adapting to changes in trade policies and tariffs, aiming to support customers in navigating these challenges [6][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term value despite challenges in the freight environment [12] - The leadership team highlighted a disciplined approach to pricing and operational efficiency to outpace rising costs [27][41] - Management noted that while external factors are unpredictable, the company is focused on controlling its operations and maintaining financial discipline [32] Other Important Information - The company expects capital expenditures for 2025 to be between $225 million and $275 million, focusing on maintenance and strategic investments [31] - The company has approximately $350 million in available liquidity, indicating a strong balance sheet [32] Q&A Session Summary Question: Near term setup and profitability targets - Management expects normal seasonality to drive revenue increases and continues to implement cost initiatives to align workforce with business levels [36][38] Question: Tonnage and revenue per hundredweight trends - Management noted a 1% sequential increase in tonnage but a 1% decrease in revenue per hundredweight, attributing this to a mix of easier-to-handle shipments [40][44] Question: Competitive environment and pricing dynamics - Management emphasized that the pricing environment remains rational, with no significant pressure from competitors to lower prices [53][66] Question: Retail exposure and inbound traffic from China - The company has around 10% exposure to the retail sector, with variations between asset-based and asset-light businesses [80] Question: Strategies in a stagflation environment - Management highlighted operational efficiencies and strategic investments as key levers to navigate inflationary pressures [88][91]