Yellow Corporation (NASDAQ:YELL) Q4 2022 Earnings Call Transcript

Jack Atkins: Okay. Great. Thank you. I guess maybe two questions. One, just on following up on Jeff’s kind of question on the demand outlook. I mean there’s a thought that we’re going to see the markets, free markets generally stabilize here around the second quarter, and maybe start to build back a bit in the second half of the year, once we get through this destock phase. Darren, I just be curious to get your take on that. Is that something you’re willing to underwrite? Or is it just too early to tell?

Darren Hawkins: Hello, again, Jack, and absolutely that I will typically share what I believe is going to play out. And as I said, I’m bullish on America, and I’m bullish on LTL. And I think near-shoring, re-shoring from an industrial standpoint, we’re going to have a great awakening in America, that’s going to be a big benefit to the LTL industry over time. Now, certainly the timing of those come into play and more near term, we’re going to get our phase two implemented, work through those processes, and be prepared for when demand exceeds capacity. And I do want to comment on the infrastructure investments it’s going to happen is I personally believe that the summer and with 600,000 jobs being added in that capacity, good jobs, and we know that construction area is the number one competitor for drivers to the LTL and truckload industry.

So I think we’re right back in a situation where there will be a shortage of drivers, and we’ll see capacity challenged. And that’s an opportunity that we’ll be watching for Yellow.

Jack Atkins: And I think we’re all kind of pulling for that same build back in the second half. Last question for me, and I’ll let you guys go. But there was discussion earlier this week with one of your united competitors, about finding ways to on their conference call to maybe find ways to collaborate with other unionized carriers in a way to reduce costs, improve efficiency, improve density, that sort of thing. You guys really are leaving no stone unturned in your effort to get Yellow back on track. What do you think about that? Is that something that you guys would be willing to explore? Do you think it makes sense? Just be curious to get your thoughts on it?

Darren Hawkins: Well, Jack, I’ve been working with four companies under the Yellow umbrella for the last five years. So we’re well down the road on a lot of that discussion just right here at home with the companies that were part of. And we’re it’s been a multiyear transformation for us. And we’re in the final year that and we’re just terribly excited about what’s going on at Yellow, I don’t really have any input for those competitor comments. But we’ve had four companies that we’re working through, and we’re proud of where we’re landing here.

Jack Atkins: So there’s enough with a chopper with your own organization, before thinking about maybe collaborating with other unionized carriers. I mean, that makes sense. I just kind of wanted to get your thoughts on, it’s been on folks minds.

Darren Hawkins: And the moat in that I think the reason so many people are interested in LTL the barriers to entry are so high, which you’re aware of, and everyone that follows and as part of the industry is aware of, but we’ve just simply-simply got a real estate portfolio that cannot be replicated. And as we’re approaching our centennial anniversary, next year, that real estate portfolio, and then those 30,000 employees, we’ve got back in it up. We’ve got tremendous opportunity right here in front of us at Yellow, and that’s what we’re wholly focused on. And looking forward to what 2023 is going to bring, especially after the nice progress we had in 2022 of delivering improvements that we hadn’t seen in over 16 years. So it’s just exciting time to be at Yellow.