Jack Atkins: Okay. Great. Good afternoon and thank you for taking my question. So I guess, Derek, you referenced stable Dedicated demand in the fourth quarter. Would just be curious if maybe you could talk about the Dedicated pipeline more broadly as you go into 2023? And are you seeing some of your Dedicated customers looking to either push trucks back or want more trucks kind of in a one-off or onesie, twosie kind of way? Just any kind of color around that and the broader pipeline would be helpful.
Derek Leathers : Yes, Jack. So, good afternoon. And when we think about Dedicated, first off, the pipeline remains strong in Dedicated right now. We’re — that will be tempered somewhat with the reality that in certain Dedicated fleets, you might see some shrinkage just due to their business being under duress. We know that there are certain businesses that are going to be more impacted by the economic backdrop than others. And so there’ll be some offset to what that pipeline is able to bring to fruition. We’re also going to be pretty disciplined. Dedicated is hard to do business with very high service expectations. We know what it costs to do that. And so we’re going to stay disciplined relative to price. Our customers have been supportive thus far.
And so it’s hard to dictate exactly where that fleet goes over the next, call it, quarter or two. We’ve guided to kind of flat because we know there are some puts and takes. Right now, I’m encouraged by the conversations we’re having. I’m also encouraged that the one-third of that Dedicated book of business is actually set up on index. It’s indexed business. So the rate noise on some of that will be less. And we’ll have the ability to focus on the two-thirds where there could be activity. You put all that into the blender, and here’s what I would say. I think we’re a premier dedicated player. I think the service we provide for our customers is second to none. And I think they understand that. We also understand they’re under a lot of pressure, and so there’s going to be some interesting conversations to be had.
But most — I guess, in closing, I would say I’m encouraged by the pipeline. I’m encouraged by the ongoing bid activities in Dedicated. And I’m probably most encouraged by the fact that we’ve been able to test the model relative to not letting designated fleet into our Dedicated business and therefore, having the kind of hemorrhaging that may have happened in past cycles where the business was not set up with a true dedicated construct.
Jack Atkins: Okay. No, that’s very helpful. I appreciate that. And then I guess maybe for a longer-term question, Derek, if I go back to, I think, last year in the fourth quarter call, you outlined a plan to grow Werner’s revenue by 10% a year on a CAGR basis for the next five years. We’re now a year into it. You had a good revenue year in 2022, partially driven by M&A. Could you maybe update us on that longer-term vision for the company? And do you feel like you’re on schedule, ahead of schedule, as you sort of think about those longer-term plans?
Derek Leathers : Sure. I mean, clearly, at this point, we’re ahead of schedule based on what we — that the two years that have played out since we first started having that conversation. We’re encouraged on the revenue front. We want to continue to always keep an eye on the bottom line because I’ve always said that it’s not going to be an or proposition that’s an and. We need to grow and, maintain our discipline relative to margins and expectations around performance. But right now, we’re ahead of that schedule. We also indicated at the time, and I’ll reiterate today, there’s going to be years that don’t fall into that 10%-plus type revenue growth because you’ve got to be smart and disciplined and kind of read the market that you’re in.
This year, obviously, expectations at this point, just doing the math on the recent acquisitions, we’ve got a really good head start to that 10%-plus number, but we’re going to have our eye this year on cost control, synergies through the implementation that’s through the integration probably most importantly, product and portfolio enhancement through these additive acquisitions that we’ve done and continuing our larger strategy of just building out yet another layer of defense for some of the economic ups and downs and then proving it out. Look, at the end of the day, what matters is what’s on the scoreboard. And you don’t get credit for first downs. We’ve got a lot of those, but I’m looking forward to working our way through this downturn, so we can show what this company is capable of.
Jack Atkins: Okay, that makes a lot of sense. Thank you here for the time.
Operator: Your next question is from Ken Hoexter with Bank of America. Please go ahead.
KenHoexter: Great. Good afternoon. Hey Derek, hey John. Can you — maybe your thoughts on acquisitions? Your leverage is at the top end of your target, but typically, in a downturn, you kind of want to maybe take more opportunities. You just swallowed the four over the last two years as you highlighted. So can you be more aggressive in this market? Do you calm down if we’re in a slowdown in and step back, maybe just talk about your thoughts and then how discussions are going?
