Knight-Swift Transportation Holdings Inc. (NYSE:KNX) Q4 2022 Earnings Call Transcript

Adam Miller: And on the — your second question, Amit. when I look at 2021 versus 2022, I mean the fourth quarter there was unbelievable in 2021 led to a big step down, I think almost $0.25 $0.26 a share into Q1, which Q1 was still strong. Q4 this year, we are hauling freight in just normal course. We didn’t have projects, we didn’t have spot opportunities. And so as you transition from Q4 into Q1, you don’t have a lot changing in that freight dynamic. Now you have bids that you’re working through. But many of those bids aren’t effective until you go into probably early second quarter, some will be later in the second quarter. And then as the bid season progresses, you’re probably complete by probably mid-third quarter. So is rate going to be pressured Q4 to Q1?

Probably. I don’t know is to the extent that you quoted. But — so I don’t see the normal step down you would see from the Q4 where you have project business, you have robust spot market and then you move into Q1 where you’re just, again, moving freight in the normal course. The dynamic hasn’t changed that dramatically.

Amit Mehrotra: So — but adjusted profits in truck cracking went down 18% 4Q ’21 to 1Q ’22. Are you basically saying that it’s going to be down significantly less than that as you move from 4Q ’22 to 1Q ’23?

Adam Miller: I would say overall for the business, I wouldn’t see the same step down in profit from — the same percentage step down in profit from Q4 to Q1.

David Jackson: Yes. Thanks, Amit. Well, JP, we appreciate your help as our operator. Everyone, thanks for joining our call today. we apologize to a little more than a half dozen who were in the queue to ask questions that we didn’t get to. Welcome to reach out to us directly and hope everyone has a great evening.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.