Daniel Imbro: Got it. And then, Drew, one strategically, you’re talking about revenue per load improving to flat and growth on the headline is slowing due to harder comps. That makes sense. I mean, it sounds like managing price to make money is a rational way to do the business. But as the three-year stacks stay hard in the back half, should we expect negative growth could persist into the third quarter? And strategically, is this — is RXO potentially a slower top line growing, but more profitable business going forward? Are we kind of transitioning to that point in the growth curve?
Drew Wilkerson: Yes, I think it depends on what happens in the market, overall. We’ve got tough comps. We think our three-year stacks for the back half of the year will be extremely strong. But we’ve told you that we’ve taken a position on where we believe the market is going and the conversations with our customers, we priced accordingly. So, if you do not see the recovery in the back half of the year and there’s no spot loads, then volume growth gets a little bit tougher. If there is some sort of spot market activity, we think we’re going to be one of the first calls, if not the first call, for our customers for spot loads, projects and mini bids. You’ve seen that before whenever the market tightens. So, we’re confident in our position that whenever the market does turn, we’ll be the place that they turn to. But I think the volume growth will depend on how much spot load opportunity there is there.
Daniel Imbro: And then strategically, to follow-up, is there any change in kind of you’ll thinking around kind of focusing on growth versus the profitability or pricing per contract as you approach kind of the out years? Maybe not back half, but just the forward-looking timeframe?
Drew Wilkerson: We’ve always said that there’s a playbook for every market. And so, I mean, if you go back to last year, the market was falling all year long as rates fell all year long. As you look into this year, we believe that you’re going to start to see a market recovery over the next six, 9, 12 months. So, I think that the best approach to have is an agile one, a flexible one; one that can move with the market this dynamic. And over the last decade, we’ve shown the ability to do that. And the important way to look for growth is on a multi-year stack basis.
Daniel Imbro: Appreciate the color. Best of luck.
Operator: And our last question for today is coming from Kevin Gainey from Thompson Davis. Please go ahead.
Kevin Gainey: Hi guys. Good morning. I actually wanted to touch on how you guys had progressed post spin on some of the facilities and operations that you’ve opened via capital expense and how those things have performed versus what your expectations were with those?
Drew Wilkerson: Are you talking about like opening up like brokerage offices since the spin?
Kevin Gainey: Correct, right.
Drew Wilkerson: Yes. We have not opened up any new brokerage offices since the spin. We’ve expanded some offices. So, for example, like if you’re here in Charlotte today, you know years ago we had one office that was there. Now, we’ve got three branch leaders. If you think back to one of our acquisitions from Gainesville, Georgia, we have multiple offices that it has expanded to. So, it’s been more about expanding our larger offices and putting in new real estate for some of those offices. Ann Arbor, Michigan is another one. Columbus, Ohio has grown. It’s been expansion within our existing offices and adding new branches within those offices versus new locations.
Kevin Gainey: Okay. That sounds good. And then maybe if we could talk about, this is the first time I think you guys have emphasized the tech capability of the LTL business. How much is that of a lag versus the TL business? And is that something that you guys are going to focus on this year to improve?
Jared Weisfeld: It’s Jared. So, one of the very appealing aspects of the LTL business is that it is highly automated. So we think about that business at scale actually being accretive to both gross margin and EBITDA margin, just given the technology capabilities that we’ve put into that business, and we’re very pleased with the outlook in terms of delivering profitable growth for our LTL business.
Kevin Gainey: Perfect. Thanks.
Operator: Thank you. We have reached the end of a question-and-answer session for today. I’ll hand the floor back over to Drew Wilkerson for closing remarks.
Drew Wilkerson: Thank you, Julie. We entered the second quarter with momentum and our sales pipeline is the largest that it’s been in four years. We expect to deliver a significant sequential increase in our adjusted EBITDA in the second quarter. We’re doing all the right things today to ensure our success, including focusing on service, solutions, innovation, and our relationships. We also continue to have a disciplined focus on costs, while we’re still investing in our future. Thanks for joining us today, and I look forward to seeing many of you at the upcoming conferences.
Operator: Ladies and gentlemen, this concludes today’s conference call. You may now disconnect. Thank you.
