Jonathan Shepko: Yeah, so brokerage we have going down 6% or 7% this year. And you acknowledged it and we saw it at the very end of Q4. And we see it so far into January, we’re shifting those loads that would have otherwise been taken by third party carriers onto our company trucks, which is, again, the model that we’ve talked about. It’s a model that a number of our peers employ. So it’s really that kind of control valve, if you will. I would say, though, that what we’ve seen at the end of the year and going into 2023 so far is that while brokerage is down, the margin on our brokerage is up. So it’s actually performing reasonably well. The share count, let me get you the exact share count that we’re working off of now, it’s 47 million Bert.
Bert Subin: Got it. Okay, great. Well, thanks again for all the time. I’ll pass it over.
Jonathan Shepko: Absolutely.
Operator: Thank you. And one moment for our next question, please. And our next question comes from the line of Jason Seidl with Cowen. Your line is open. Please go ahead.
Jason Seidl: Hey, thank you operator. Hey, Jonathan and team how is everyone.
Jonathan Shepko: Hey, how are you?
Jason Seidl: Hanging in. It’s still earning season for us, but I wanted to ask a couple on you guys here. Can you put a little more clarity on the productivity decline in 1Q because that was a big step down, I know you sort of mentioned it, was that a mixed shift towards some high security cargo stuff that was much shorter than hauls?
Jonathan Shepko: In Q1 of 2022 you’re saying there was
Jason Seidl: Most recent quarter here?
Jonathan Shepko: Oh yeah, okay. That’s right. I mean, look, a little bit of it was on the high security cargo side, those were shorter length of hauls on the specialized side, that weighed on some of the kind of average productivity metrics. On the Flatbed side, we lost some productivity. And again, if you remember, we really shifted more to asset life, LP owner operator moving into 2022. And so we saw some of that fall away. Either owner operators parking their trucks, going, I’ve done well for this year and I’m taking myself out of the market right now. Or you had LP drivers that weren’t making the same amount of money because the rate environment changed and they’re reevaluating whether or not they exit the industry or ultimately shift over to being a company driver.
So there’s some movement around there which we’ll figure out where those drivers land probably in Q1 of this year. Look, you also had just the time of the year, you had two holidays in Q4, and you’re having to route a lot of those drivers back home. So just by virtue of that, you lose productivity. So hopefully that answers your question.
Aaron Coley: We also took
Jason Seidl: No, it does.
Aaron Coley: Jason, we also took a lot of late deliveries of trucks, which are harder to see when you get them late in the fourth quarter like that. And so, that’s part of what drove it as well. So we would expect that to start to rebound in Q1. We’ve been pretty successful with our recruiting classes in January.
Jason Seidl: And I would imagine you’ve already probably seen some improvement in that just by some of the seasonality that you mentioned?
Aaron Coley: Correct.
