Saia, Inc. (NASDAQ:SAIA) Q4 2022 Earnings Call Transcript

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We’ve got the rate increase we’ve worked on and announced the GRI, and that’s key to what we’re doing, because I think our service does put us in a position to go get pricing. And whatever goes on from here, I think we’ve got a pretty good relative value proposition. And if things are going to be down, maybe we’ll find share opportunity. Maybe ours will be down a little bit less because we’re in some newer markets. We’ve got good service. If our rate is attractive, even if we’re all bumping rates up a little bit, maybe we offset it, and we’re down a little bit less. So I don’t think we’ve got a great view into what our general customer outlook is. We look at some of the shipper surveys that come out of you all. So the analyst’s ranked.

Jack Atkins: Okay. All right. Well, I appreciate that. I appreciate just the intellectual lot to see about that, and it’s all good. So I guess maybe for my second question, I just would be curious, just following up on Amit’s question earlier, which is a fair point. How are you guys thinking about line capacity in the network today? If I recall, last time you updated us, it was about 20% or so. I know it’s a hard number to really get to, but we’ve also seen tonnage come down a bit. It definitely feels like you’re carrying extra costs for when things begin to recover to be prepared for that. But how are you thinking about where that number stands today, roughly?

Fritz Holzgrefe: Yes. Jack, we’re at least, so we’ve got — I think I’d expand that to 25% capacity, 25% kind of latent capacity. I think one call out that I’d point to, we’ve mentioned that we’ve opened 18 facilities in the last two years. And our focus there is, we’re thrilled with the early success we’ve had there, but when you’re making a 10-year investment, we move or identify these facilities, we’re thinking about them for 10-years. And so those are all opportunities for us. And we’ve got our sales force geared on that as an opportunity, because those are — that’s capacity we can fill. I think in some of the — we have a couple of pinch point investments in the network this year where we’re adding some great capacity.

So we still have some of the challenges we had before in terms of we have a range. We’ve got facilities that have got tons of capacity and others that we’ve still got to make some investments. So what I really like about it is that we’ve — as we look across our network and footprint, we’ve got a pretty consistent service offering across the board. So for us to match a customer need and grow is really exciting to us. And I think that flexibility and the ability to repeat the service is going to be key.

Jack Atkins: Okay, Fritz. Thanks again for the time. Really appreciate it.

Operator: Our next question comes from Jordan Alliger with Goldman Sachs.

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