Saia, Inc. (NASDAQ:SAIA) Q2 2023 Earnings Call Transcript

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Fritz Holzgrefe: We have — we do have across board of presence. It’s particularly South, it’s smaller than where we’d like. I think over time, there’s an opportunity for us to grow that as part of the long term strategy for sure.

Bruce Chan: Okay, great. Thanks for the time.

Operator: The next question is from Christopher Kuhn with the Benchmark Company, your line is open.

Chris Kuhn: Yes. Good morning. Hey, Fritz, hey, Doug. Thanks for getting me in here. Just on, Doug, you and I have talked about your focus on increasing weight revenue per shipment, some of this newer volume is lower weight and lower revenue per shipment. So how do you balance that with sort of your longer term strategy and your ability to manage profitability?

Doug Col: Yes, I mean, our weights still up quite a bit over the last couple of years. And like I said, I mean, some of that was really driven by focus on that good industrial weighted freight, as we call it, but we’ve increasingly have national account customers that may be in retail, for example, that see the quality in the service we provide, maybe some limited choices on folks that can handle, increasing volumes with that kind of service. They’re asking us to do more and more from, and sometimes that’s lighter weighted shipments. So it’s not that it’s dramatically lighter weight in terms of moving the average. But, like Fritz said, I mean, we’re going to haul the business form, but it needs to be at the appropriate rate.

So, I don’t think weight in itself is the sole factor in that negotiation, it’s the mix of business, it’s the volume you get, when you show up to pick up a shipment, if they’re lighter weight, you can get two or three and that’s usually pretty good business. So, a lot of things factor into it.

Chris Kuhn: Okay, thanks.

Operator: The next question is from Tyler Brown with Raymond James, your line is open.

Tyler Brown: Hey, good morning, guys. First curious on what the labor markets look like, right now, how tight are they? And then, given all the work that you’ve done from a cultural perspective over the last couple of years, how do you feel as an employer of choice? And do you think you can add human capital quickly?

Fritz Holzgrefe: Yes, good question. Tyler. I think the certainly in the labor market around drivers and such as is competitive, and I don’t know that’s changed the demographics are necessarily in our favor. But I will tell you that I think one of the things that Saia has done a pretty good job of over the last several years is that, the success kind of compounds a little bit and people see kind of what the opportunity is and what our trajectory is. So around, being able to recruit people that’s been helpful, we’ve also made a pretty substantial investment in our human resources and recruiting effort, and really sought to professionalize that and to give us the opportunity to scale, the business. And those are been important investments.

And then the emphasis — the key thing is that throughout all these, employees want to be able to see, we can talk about values and those sorts of things, but they want to see values in action. And that I think we’ve done a good job with that. And that’s helped us in the recruiting front. People know that what they’re going to get when they come here, and I think that that’s been positive. And I think that’s going to help us through. This will be a challenging time, as we grow volume through this disruption, that being able to replicate that’s going to be important.

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