Werner Enterprises, Inc. (NASDAQ:WERN) Q1 2024 Earnings Call Transcript

We can focus on controlling the controllables, continuing to serve our customers safely, reliably and at scale and execute on the long-term strategy. If we do that, then we’re going to be more positioned to navigate this market well and be ready for a tighter market and a better market. Q1 is typically our low quarter coming off the peak, and there were some compounding factors in the first quarter, including, call it, $0.05 to $0.06 of really unique one-offs in terms of the adverse weather, elevated health insurance costs and some discrete income tax adjustments in the quarter that aren’t necessarily expected to continue. So a lot there. I’m probably not being as specific as you would like, but we would expect some improvement, and we’re just going to continue to be focused on controlling what we can and being set up for a better market when it comes.

Bascome Majors: So it sounds like you do expect sequential improvement just it’s really hard to peg that versus any historic sort of bogey at this point?

Derek Leathers: We do.

Operator: This concludes our question-and-answer session. I will now turn the call over to Mr. Derek Leathers, who will provide closing comments. Please go ahead, sir.

Derek Leathers: Thank you, Gary. I want to thank our nearly 14,000 Werner associates for their dedication, loyalty and commitment to supporting each other and serving our customers daily. I also want to reiterate our support for everyone impacted by the recent tornadoes across Omaha and the Midwest, and we will get through this. I want to thank our valued customers for choosing Werner and giving us the opportunity to support their business. And we will continue to operate with eyes wide open as we navigate the current very challenging environment. We are controlling what we can and driving operational improvements, managing expenses and driving savings while strategically investing for our future. Our balance sheet is healthy, and our cash flow is strong, and our diverse portfolio puts us in a great position for the eventual market turn.

In the meantime, we’re going to remain disciplined on our approach. We’re going to remain committed to safety and we’re going to continue to serve our customers. I’m going to thank you all for being with us today and for joining our call.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.