This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings.
“YRC Freight’s tonnage was down 0.5%, and regional tonnage per day was up 6%. The decline at YRC Freight was due to a loss of business in our local channel. YRC Freight’s revenue per shipment grew by 0.6%, which included a decrease of 2.2% in revenue per hundredweight and an increase in its weight per shipment of 2.8%. While the regional carriers increased their revenue per shipment by 0.8%, and the revenue per hundredweight by 1%, their weight per shipment decreased by 0.2% on a year-over-year basis.”
“due to the decline in performance at YRC Freight, we have had to cut back on that plan for the time being. While we will be — while we will continue to reinvest in our fleet and especially technology, it simply will not be at a pace that we had originally anticipated.”
“Obviously, we were not pleased at all with our overall reported results for the third quarter.”
“One, we did not have enough drivers relocate to the terminals that gained freight volume as a result of the change of operations.”
“Two, with a manpower shortage, there were too many locations in the YRC Freight network where freight was not processed timely, causing the network to be out of cycle. With the network out of cycle, we increased spend on purchased transportation and incurred a lot of unplanned over time to help clean out the freight that was clogging the network. Simply put, we were operating an inefficient network.
Three, the service under pressure for basically the entire third quarter due to the manpower shortages, we experienced some temporary loss of business that obviously we’re not happy about.”
“Four, we experienced a decline in productivities during the third quarter as compared to those experienced prior to the network optimization. And finally, the momentum created by our concentrated sales effort leading up to the May change of operations took a step backwards in the third quarter.”
“where we’re going to spend our CapEx dollars, it will be more focused on the technology side. I mean, we’re going to continue to do what we can from the revenue equipment in terms of the total fleet, in particular, on the engine swings and to the extent that we can continue to lease, we’ll certainly do that. And I think, our biggest bang for the buck, not only in the near term but in the long term, is going to be along the lines of our handheld technology, actually getting that to being more of a partner in how we operate the dimensioning units.”
“I’m confident that we’re going to continue to move the company forward. I just can’t seem to predict how fast it will be just coming onto the holiday season and the tough winter months. But I’ll just say the fundamentals of the business are better than they have been.”
“And candidly, we missed the window in terms of when you — it spiked up. There’s only a 45-day period when it ran to the roof and then it came pretty heavily back down, went from 7 to 34, and then it went back down to 15, now it’s 10. Well, the good news is that, at 3, it’s still alive. It’s out there. We just need to clean up some of our supplemental disclosures and if we’re so fortunate, we could choose to use it.”