Werner Enterprises, Inc. (NASDAQ:WERN) Q4 2022 Earnings Call Transcript

Brian Ossenbeck : All right. Thanks, Derek. John, just a quick one for you then on the cost side. You mentioned going after some controllable costs. I don’t know if you can elaborate on that. I know you’ve got a few things on maintenance, it sounds like parts could be a big deal even more so than the — getting the new trucks in place, which obviously have a knock-on effect on maintenance and other line items. But maybe you can elaborate a little bit on where you have line of sight to that’s controllable over the next year, you’re looking to deliver on? Thank you.

John Steele : Yes. Thank you, Brian. Yes, we definitely have a cost focus across the entire business, and we’re realizing savings in several categories such as driver hiring and advertising, lower driver guaranteed pay synergies related to the acquisitions that we’ve done, actually, all four acquisitions. And then IT savings implement our Cloud-First Cloud Now strategy that are helping with both efficiencies and productivity, and we’re taking aggressive actions to improve our cost structure. We know we have a big headwind with the reduction in gains in ’23 compared to ’22, but we’re confident that we can make a meaningful dent in that with the cost improvements that I just elaborated on.

Brian Ossenbeck: Thank you, John.

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

Derek Leathers : I just want to thank you for joining us today on the call. We’re proud of our results in 2022 and encouraged by the durability of our business as we enter a weaker setup, at least in the first half of ’23. Dedicated is going to remain the lead horse on our wagon, but One-Way and Logistics now surpassing $1 billion in freight with increased customer and industry diversity is exciting. I believe this year will be a story told in two halves. Our capacity is already exiting. Inventories are coming into balance. And while there remains macro uncertainties, the one thing I feel strongly about is this, strong well-capitalized carriers, focused on operational execution will have an opportunity to shine, and we look forward to that challenge. I want to thank you for spending your afternoon with us today.

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