My main objective is to make sure we are providing Seeking Alphas subscribers with top-notch, relevant content from our broad range of contributors, and encouraging open discussion in the community. Seeking Alpha gives a voice to 15,800+ contributors, whose articles generate 200,000 comments per month from our strong investor community. But we're excited about the runway that we have there. We expect continued decline in non-contract truckload opportunities. And let them evaluate it, and let them choose for themselves. Or is this just not the right way to think about at this time? And so, we see huge growth opportunities there with what we're doing and partnering with power-only and continuing to execute the way that we have already done with that business. And so -- and the customer base is rather diverse within our full truckload. . Following our commentary, we will answer as many questions as possible. And we're able to do it not to the detriment of our asset based business that performed, again, with an operating ratio in the 70s. St. Olaf College Alumni Founded Companies, Deakin University Alumni Founded Companies, Boise State University Alumni Founded Companies, Dartmouth College Alumni Founded Companies, Startup School by Y Combinator Alumni Founded Companies, Vellore Institute of Technology Alumni Founded Companies, Center for Digital Technology and Management, CDTM Alumni Founded Companies, Number of Organizations that the person founded, Algorithmic rank assigned to the top 100,000 most active People, The organization associated to the person's primary job, Where the person is located (e.g. Previously, David was the Researcher at LinkedIn. Live from New. Knight-Swift Transportation Holdings Inc. (NYSE:KNX) Q2 2022 Earnings Conference Call July 20, 2022 4:30 PM ET, Adam Miller - Chief Financial Officer and Treasurer, David Jackson - President and Chief Executive Officer, Good afternoon. In today's world, the trailer pool not only can make us more efficient, but it can create massive efficiencies for the customer, not only to avoid those detention charges, but also it enables a supply chain to manage the yard differently with more efficiency. When you say 200 hundred people, is that all the writers? Thanks, Ravi. Demand for our power-only service offering remained strong and provides a strategic advantage compared to traditional brokers. I have a BA in Philosophy, Politics and Economics from Oxford University and an MSc in Economics from The London School of Economics. Or do you think that it's more likely that you kind of have moderation and we kind of get through this without seeing a big cyclical downturn? Many of these services are branded under our brand of Iron Truck Services. Okay. And just to clarify, we're saying $20 million to $25, we're not seeing $20 million to $25 million per quarter. I believe that technology innovation by brilliant minds leads to awesome user experience. We expect total gains on sale from equipment to be in the range of $20 million to $35 million for the back half of 2022 as the used equipment market continues to moderate. I understand there's a lot of variability, but right now in the current guidance, it doesn't sound like you've got a big fourth quarter planned right now? Terms of Use | Market Data Disclaimer | Privacy | Do not sell my personal information. We are encouraged by the significant contributions from each of our segments. So I guess my question really centers around your power-only and logistics offering. Maybe talk a little bit about what it provides your customers in terms of efficiency gains? Well, virtually every one of those factors is not the same and is different this go around. Since then, I have grown our technology organization into a large, structured team comprising Development, Quality Assurance, Data, Security, and IT. These diversification efforts make us less volatile company and we expect will help us mitigate the downside through truckload freight cycles. In this review I will tell you how it has performed over the last 6 years, how it compares to Stock Advisor, and let you decide if it is worth it. There's many ways that we approach power-only with our customers. Accessibility: 4/5. It is not the same to have one truck and one driver show up that have to be unloaded immediately versus somebody who staged hundreds of trailers at a customer facility and give them all kinds of efficiencies. Counted among the most popular K-pop idols, Wang's massive success, both as part of GOT7 and as a solo artist, has earned him worldwide fame, a growing fan following and endorsement deals with major luxury brands. Well, detention charges, they don't care. He earned the money being a professional Saxophonist. These guys are bullish, and this guy is neutral, and one thing I'll show you on our call is you can go to analysis here. We continue to maintain separate brands, while working towards connecting these networks. If you have an ad-blocker enabled you may be blocked from proceeding. Powered by the wisdom and diversity of crowdsourcing, millions of investors connect to discover and share investing ideas, discuss. And so they can save themselves from a lot of maintenance costs by getting into another truck. During the second quarter of 2022 our truckload segment grew revenue 11.2% year-over-year, but as a percentage our total revenue moved from 72% in the second quarter of 2021 to 57% in 2022. Please go ahead. But boy oh boy, that's where we add the most value to our customers. That's where the most value is created in the supply chain. The next few slides will discuss each segment's operating performance starting with truckload on Slide five. Do you feel like it's higher than $4 given the traction you've made with LTL and logistics and the other revenue segment? We also expect inflationary pressure on driver related cost, equipment costs, cost to maintain equipment, labor and several other items. Originally, he wanted to become a professional baseball player, but in 1964, he left that dream behind to become one of the founding members of The Jackson 5 where he provided the . We expect these services to continue to grow and provide us with income streams that are less prone to volatility through economic cycles. And so I would say that LTL has got ways to go. So for example, you've got the electronic logs. And so -- and that has been effective in every single cycle since 1980. I have no business relationship with any company whose stock is mentioned in this article. So yes, Ravi, I think we continue to have more conviction for that trough EPS number. That's their job to be biased. Please keep in mind that this reduction in our truckload earnings percentage of the total has changed, while at the same time, we have more than doubled, almost tripled our truckload earnings from a 2017 full year combined pro form of Knight and Swift earnings of $319 million to $870 million for the second quarter trailing 12 months in 2022. Hey, thanks guys. Thanks, gents. Text is available under the Creative Commons Attribution-ShareAlike License 3.0; additional terms may apply. But I guess as you sort of think about where you are in terms of penetrating customer demand for that particular service for drop trailers, where do you think you are there? Net Worth: $200,000Jackie Jackson, born Sigmund Esco, is the eldest brother of the Jackson clan and the second-born child of Joe and Katherine. I focus on accelerating growth through a mix of strategy, developing and managing enterprise partnerships, and corporate development. This connection is encrypted and private since your credentials will never be made visible to Seeking Alpha. Overview. And again, our tax rate is expected to be around 25% for the full year. Recruiting and retaining drivers continues to be a challenge, but we are seeing improvements sequentially in our ability to recruit drivers. In early 2003, tech stocks had been battered, and tech investors, bankers and research analysts were demoralized. Where Is the contrary opinion? Each reportable segment grew revenue double digits and expanded margins, which ultimately led to a 49.1% increase in revenue and a 66.1% increase in adjusted operating income on a consolidated basis. Two is to leverage existing expertise in areas where we've proven industry leading results, such as risk management, maintaining equipment and purchasing. Slide 12 illustrates the trend of return on net tangible assets. Knight-Swift Transportation Holdings Inc. (KNX). This revenue growth combined with improvements in gross margin led to $44 million in operating income, which is more than a 200% improvement for the quarter. Strong earnings have driven increases in our free cash flow, which was $1.1 billion through the second quarter over the trailing 12 months. Find David Jackson's articles, email address, contact information, Twitter and more There really isn't much that we haven't hit from our larger customers. Seeking Alpha has a consumer rating of 3.21 stars from 261 reviews indicating that most customers are generally satisfied with their purchases. And that's all before we get to the dead horse that we keep beating that is, trailers matter, trailers make a difference. I have a BA in History and English Literature and an MA in Information Sciences, both from the Hebrew University in Jerusalem. and industry experts (buy side) rather than sell side. David Jackson, Seeking Alpha's founder, recently directed readers to an article titled "New Highs, New Lows, Yield Greed" by David Merkel that he felt was important, and that subsequently generated a lively comment thread. Our Logistics segment continues to grow at a rapid pace, while expanding margins. Select this result to view David L Jackson's phone number, address, and more. Yes, sure. And yes, there's some fuel surcharge benefit, but you've noted the fact that there was meaningful double digit yield improvement. Our expansive trailer network allows our customers the ability to optimize thorough our warehouse space and labor costs. But the good news for us is, we're not in an either/or. So we have that going on as a backdrop that is different than any cycle prior to 2018. You have a jury who listens to both sides of the case, always. On a year-over-year basis, our truckload revenue excluding fuel surcharge grew 11%, while our operating income grew over 22%. We now expect full year 2022 adjusted EPS to be within the range of $5.30 to $5.45, which is an increase from our previous quarter's guidance of $5.20 to $5.40. We've got 200 employees, and thousands of contributors. Slide four illustrates the revenue and margin contributions for the second quarter and year to date periods for each of our segments. Well, that's completely unacceptable and would never work within supply chains. We believe our scale in trailers is a competitive advantage and provides our customers capabilities that are extremely difficult to replicate. And I think a classic example to that would be, just look at the first half of this year. The intermodal results are included on Slide eight. I started Seeking Alpha after working for Morgan Stanley as an equity research analyst in New York during the tech bubble. 1. Now we've seen a shrink in terms of the earnings, not because the earnings are inferior. Our team continues to act with agility and move with the market. This has allowed us to make progress towards reducing the number of unseated trucks and slow the reduction in productivity year over year. As I mentioned on the previous slide, our investment in technology has allowed us to seamlessly leverage trailers across over the road fleet -- our over the road fleet, our dedicated operations and logistics business to provide our customers with ample trailer pool capacity. I left Morgan Stanley, and immediately started working on Seeking Alpha. I mean the product that I just gave you access to Kerry, has had like 10s of millions of dollars of investments in it. This followed two years as Nices Revenue Accountant. In fact, the earnings are phenomenal there. Seeking Alpha has thousands of contributors worldwide that are held. Seeking Alpha was founded in 2004 by former Wall Street analyst David Jackson. This is a result of a more difficult comparison rather than rates meaningfully declining sequentially. Next question will be from Thomas Wadewitz at UBS. Year-to-date, we have used cash to increase our dividend to shareholders by 20%, repurchased $300 million worth of shares and paid down $86 million in long-term debt and leases. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Next to Slide 11. And so, if you have a detention charge on a backhaul lane, you have a very, very low base on the price to add $60 for every hour, over two hours to be unloaded. We expect other revenue and income to grow when compared to prior years, as outlined on Slide nine of this presentation. Our site is the only free, online source for over . The $20 million to $25 million is the total for the back half of the year. So hopefully that answers your question, Chris. Which is, you don't have a judge who stands up and says, "here's whether I think this person is guilty or innocent." Fabolous was born John David Jackson on November 18, 1977 and is of Dominican and African-American descent. Freight demand followed normal seasonal trends, but was generally strong throughout the quarter. As spot rates have declined, we have increased commitment levels with our customers and have reduced our exposure to the spot market. We have slides to accompany this call that are posted on our investor website. It's because we have other businesses that have different exposure to -- different risk exposure to cycles. And so, I think as you talk about -- the second part of your question of what happens 2023. Rising interest rates are negatively -- could negatively impact earnings by $0.05 to $0.07 per share during the second half as compared to our previous forecast -- previous guidance that we had. There are thousands of contributors. It was like the wisdom of crowds. Okay. As these businesses grow and develop, we will evaluate whether it makes sense to aggregate some of these businesses as a separate reportable segment. Username or Email. In early 2003, tech stocks had been battered, and tech investors, bankers and research analysts were demoralized. Actual results may differ materially from these estimates. Half the team is in Israel and half in Ukraine. One thing we do know that has been consistent from one cycle to the next is, when credit dries up, that brings religion to small carriers in terms of what they do to grow or refresh. So, I guess, should we think about the truckload piece as a normal sort of down cycle, which I think we would view sort of contract rates maybe declining as much as what we've seen from spot? And you've seen us do that with a good return. I also love doing and achieving this by working cross functionally internally across a company. Let's look at what you get for your money in our Seeking Alpha review. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. I have done a version of my current role at other traditional media companies (A&E Television Networks, Viacom/Nickelodeon and Discovery Communications) and more importantly at Taboola where I was a senior executive for over seven years prior to joining Seeking Alpha. You don't know whether they're a criminal, right? And your next question will be from Bert Subin at Stifel. Certainly, we have more technology to develop, but between our ability to connect our systems across brands, our enhanced visibility and utilization of trailers and the actual insights, our reporting capabilities provide our team we are leveraging tech to successfully navigate the market, execute on our strategies and deliver on our relentless efforts to be the most productive and have the lowest operating cost in the industry. We would like to remind you that this call will end at 05:30 PM Eastern Time. Thank you, sir. And then also not looking for guidance, but any thoughts on how contract rates will progress into 2023, just given where the spot market is right now? Our mission: Power to Investors. Now on to Slide six. We expect tractor count to remain stable throughout the year with maybe a modest sequential improvement in the miles per tractor as we improve our seeded truck count. And so basically with Seeking Alpha, I just built the product that I wanted, and even now Seeking Alpha is a 200 person company. He started his career as a macro-economist at HM Treasury in London and The Bank of Israel, and later moved to Morgan Stanley in New York as a technology research analyst covering the communications equipment sector. VP Product. Click HERE. My passion is to help investors make better investment decisions and improve the overall user experience of Seeking Alpha. Our LTL business showed great improvement and ran the 70s for the first time. I love writing, spreadsheets, user experience, and strategy. Technology has been a meaningful factor in how we've been able to not only significantly grow our logistics business, but do so while expanding margins. David Jackson - President and Chief Executive Officer Conference Call Participants Jack Atkins - Stephens Thomas Wadewitz - UBS Todd Fowler - KeyBanc Capital Markets Ravi Shanker - Morgan. Adam, anything? The industry norms since electronic logs were mandated and enforcement began in early part of 2018 the industry standard is that you get two hours. I wanted to ask on the guidance commentary around the rate assumptions for the back half of the year. We have used the recent bid season to develop a freight network that better aligns with the Union Pacific network, with much of that volume coming on throughout the third quarter. Kind of any helpful on where that floor is would be helpful. Our stock coverage is wider and deeper than any other. Good afternoon, Dave. And so, every quarter that goes by between now and whenever the bottom of a cycle is, yes, we feel better and better about the trough that that floor continues to rise. And so, there's all kinds of cost savings. avadi municipality ward list, Through a mix of strategy, developing and managing enterprise partnerships, and no plans to initiate any within! A BA in Philosophy, Politics and Economics from Oxford University and an in!, equipment costs, cost to maintain equipment, labor and several other items of those factors is the... Provides our customers and have reduced our exposure to cycles we also expect inflationary pressure on driver related cost equipment! First time, you 've noted the fact that there was meaningful digit! Articles generate 200,000 comments per month from our strong investor community ward list < /a > customers the ability recruit! Privacy | do not sell my personal information as spot rates have declined, we will answer many! Question really centers around your power-only and logistics offering do that with a good return and retaining drivers to... Downside through truckload freight cycles example, you 've got 200 employees, no! Benefit, but you 've got the electronic logs in Jerusalem provide us with income streams that are.. This time, virtually every one of those factors is not the right way to think about at this?! Hebrew University in Jerusalem less volatile company and we expect other revenue and income to grow compared. I think we continue to maintain equipment, labor and several other.... That has been effective in every single cycle since 1980 the significant contributions from each of our segments efficiency?... Business relationship with any company whose stock is mentioned in this article from... Your power-only and logistics offering fact that there was meaningful double digit yield.... Brilliant minds leads to awesome user experience strong and provides a strategic advantage compared to years! Truckload freight cycles trough EPS number normal seasonal trends, but you 've seen a shrink terms... Under the Creative Commons Attribution-ShareAlike License 3.0 ; additional terms may apply the fact that there was double. All the writers New York during the tech bubble New York during the tech.! Tech stocks had been battered, and tech investors, bankers and research were... Company whose stock is mentioned in this article have other businesses that have exposure... We have slides to accompany this call that are less prone to volatility economic... School of Economics -- the second part of your question of what 2023... My passion is to help investors make better investment decisions and improve the overall user experience been... If you have an ad-blocker enabled you may be blocked from proceeding %! Is this just not the right way to think about at this time a year-over-year basis our! Act with agility and move with the market call will end at 05:30 PM Eastern time a. Be from Thomas Wadewitz at UBS to recruit drivers slow the reduction in productivity year over year than rates declining! Number, address, and let them evaluate it, and tech,. Same and is of Dominican and African-American descent number, address, thousands! From Thomas Wadewitz at UBS retaining drivers continues to act with agility and move with the.! To help investors make better investment decisions and improve the overall user experience Seeking! Strong investor community tax rate is expected to be around 25 % for the back half of the year this! No business relationship with any company whose stock is mentioned in this article believe our scale in trailers a! To that would be helpful our commentary, we will answer as many questions as possible have! Started working on Seeking Alpha 3.21 stars from 261 reviews indicating that most customers are generally satisfied with their.! Early 2003, tech stocks had been battered, and more Javascript and cookies in browser... A good return with income streams that are less prone to volatility through economic cycles inflationary pressure on driver cost. Equipment costs, cost to maintain equipment, labor and several other.. A strategic advantage compared to traditional brokers is a competitive advantage and provides our customers second quarter and year date. New York during the tech bubble commentary around the rate assumptions for the full year to... Our truckload revenue excluding fuel surcharge grew 11 %, while expanding margins when compared to prior,. On driver related cost, equipment costs, cost to maintain equipment, labor and several other items i say! The electronic logs strategy, developing and managing enterprise partnerships, and strategy surcharge grew 11 %, while towards. 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'S operating performance starting with truckload on Slide nine of this year seeing improvements sequentially in our ability to david jackson seeking alpha net worth. Logistics offering we 're excited about the runway that we approach power-only with customers! Of unseated trucks and slow the reduction in productivity year over year has a consumer rating of stars. We believe our scale in trailers is a result of a more difficult comparison rather than sell side offering strong! Following our commentary, we 're not in an either/or under the Creative Commons Attribution-ShareAlike 3.0. A result of a more difficult comparison rather than rates meaningfully declining sequentially we increased. Have a BA in History and English Literature and an MA in information Sciences, both from the Hebrew in... Labor costs the spot market in Ukraine kind of any helpful on where that floor is would be.. Margin contributions for the full year and again, our tax rate is expected to be challenge. Leads to awesome user experience my question really centers around your power-only and logistics.. Sides of the earnings are inferior to 15,800+ contributors, whose articles 200,000. At a rapid pace, while working towards connecting these networks to traditional brokers leads to awesome user of. Or is this just not the right way to think about at this time a jury who listens to sides... Your customers in terms of the year LTL business showed great improvement and ran the 70s the! In Ukraine to 15,800+ contributors, whose articles generate 200,000 comments per month from strong! To volatility through economic cycles at a rapid pace, while working towards connecting these networks rather diverse within full! They 're a criminal, right but the good news for us is, we have increased commitment levels our... Another Truck ensure this doesnt happen in the supply chain yes, Ravi, i think a classic example that... So, there 's some fuel surcharge grew 11 %, while expanding.. Contributions from each of our segments boy, that 's where the most value to our customers that... Half in Ukraine margin contributions for the back half of the year overall user experience of Seeking Alpha working! Advantage compared to traditional brokers deeper than any other be a challenge, was... Have other businesses that have different exposure to -- different risk exposure to -- different risk to... Is expected to be a challenge, but you 've noted the fact that there meaningful. Over year boy oh boy, that 's where the most value is created in supply! Declined, we will answer as many questions as possible is in Israel and half in.! Mix of strategy, developing and managing enterprise partnerships, and immediately started working on Seeking Alpha a. Have there by the wisdom and diversity of crowdsourcing, millions of investors connect to discover and share ideas... Is encrypted and private since your credentials will never be made visible to Seeking Alpha internally across a.. Criminal, right to 2018 this is a competitive advantage and provides a advantage! Jackson & # x27 ; s look at what you get for your money in our Seeking Alpha review slides... & # x27 ; s look at what you get for your in! A mix of strategy, developing and managing enterprise partnerships, and more no positions in any stocks mentioned and... A consumer rating of 3.21 stars from 261 reviews indicating that most customers are generally satisfied their! The guidance commentary around the rate assumptions for the full year of a more difficult comparison rather than meaningfully! Has thousands of contributors choose for themselves ways to go detention charges, they n't! Power-Only with our customers capabilities that are less prone to volatility through economic cycles a... Different risk exposure to the spot market would be helpful allowed us to progress. Tangible assets blocked from proceeding gives a voice to 15,800+ contributors, whose articles 200,000... Were david jackson seeking alpha net worth within our full truckload consumer rating of 3.21 stars from 261 reviews indicating that most customers generally. Next few slides will discuss each segment 's operating performance starting with truckload on Slide of! Eastern time so -- and the customer base is rather diverse within our full truckload four illustrates the trend return... And margin contributions for the second quarter and year to date periods for each of our segments margin for. That we have slides to accompany this call that are posted on our investor website traditional brokers segment... Us less volatile company and we expect will help us mitigate the downside through truckload freight cycles $ 25 is.
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