C.H. Robinson Worldwide, Inc.

Good afternoon, ladies and gentlemen, and welcome to the CH Robinson first quarter 2023 conference call. At this time, all participants are on a listen-only mode. Following the company's prepared remarks, we will open the line for a live question and answer session. To ask a question, please press star 1 on your telephone keypad. If anyone needs assistance at any time during the conference, please press star 0. As a reminder, the conference call is being recorded Wednesday, April 26, 2023. I would now like to turn the conference over to Chuck Ives, Director of Investor Relations.

Thank you, Donna, and good afternoon, everyone. On the call with me today is Scott Anderson, our Interim Chief Executive Officer, Mike Zuckmeister, our Chief Financial Officer, and Arun Rajan, our Chief Operating Officer. Scott and Mike will provide a summary of our 2023 first quarter results and our outlook for 2023. Arun will provide an update on our efforts to improve our efficiency and operating leverage, and then we will open the call up for questions. Our earnings presentation slides are supplemental to our earnings release and can be found in the investor section of our website at investor.chrobinson.com. Our prepared comments are not intended to follow the slides. If we do refer to specific information on the slides, we will let you know which slide we're referencing. I'd also like to remind you that our remarks today may contain forward-looking statements. Slide two in today's presentation lists factors that could cause our actual results to differ from management's expectations. And with that, I'll turn the call over to Scott.

Thank you, Chuck. Good afternoon, everyone, and thank you for joining us today. Our Q1 financial results reflect the softening market conditions that have transpired in the freight transportation market over the past 12 months. With shippers continuing to manage through elevated inventories amidst slowing economic growth, the balance of supply and demand has shifted from a tight market a year ago to one that is now oversupplied. As spot rates approach the break-even cost per mile to operate a truck, the market is likely at or near the bottom of the industry cycle, which typically results in capacity exiting the market. Contract rates are also declining as transportation providers adjust to the changing market. During this transition, we've continued to increase our focus on delivering an improved customer and carrier experience and a more efficient business model, and we're taking steps to foster profitable growth through cycles. In his prepared remarks, Arun will provide an update on the progress we're making on increasing the digital execution within the lifecycle of a load by streamlining certain processes that are core to our operating model. Mike will give you an update on our continuing restructuring effort. We are executing on the plan that was initiated in November and we're lowering our 2023 personal expense by $100 million at the midpoint of our guidance, reflecting actions that have already been taken and additional opportunities to further reduce our costs. As I've transitioned from my role of board chair to the interim CEO, I've met with many of our employees who remain highly engaged and motivated to win. as we strive to amplify their expertise with new tools. I've also met with several of our customers, and I'm confident in the power of our commercial engine and our ability to deliver superior global services and capabilities and solve complex logistics challenges for our customers while continuing to execute on our sustainable growth strategy. I'll wrap up my opening remarks by providing an update on the search for the new permanent CEO. Jody Kozlak, the chair of the board and former chief HR officer at Target, is leading the search committee. With the assistance of Russell Reynolds, this role has attracted a strong pool of candidates. The committee is choosing a proven leader with broad operational experience who will accelerate our strategic initiatives and execute on the opportunities ahead for the company. The process is moving along as expected, and the board anticipates naming the new CEO in the second quarter. I, along with the senior leadership team, am actively preparing for a smooth transition to a new leader. Now let me turn it over to Mike for a review of our first quarter results.