Covenant Logistics Group, Inc.

Welcome to today's Covenant Logistics Group Q2 2025 earnings release and investor conference call. Our host for today's call is Tripp Grant. At this time, all participants will be in a listen-only mode. Later, we will conduct a question and answer session. I would now like to turn the call over to your host. Mr. Grant, you may begin.

Good morning everyone and welcome to the Covenant Logistics Group's second quarter 2025 conference call. As a reminder, this call will contain forward-looking statements under the Private Securities Litigation Reform Act, which are subject to risks and uncertainties that could cause actual results to differ materially. Please review our SEC filings and most recent risk factors. We undertake no obligation to publicly ask A to revise any forward-looking statements. Our prepared comments and additional financial information are available on our website at .covenantlogistics.com slash investors. Joining me today are CEO David Parker, President Paul Bunn, and COO Dustin Cale. Revenue rebounded during the second quarter to a new record high thanks to growing our dedicated fleet, strong new business awards and managed trade, small acquisition, and receding impact of weather and avian influenza. However, margins remain compressed, particularly in our asset-based workload segments, due to an inflationary cost environment, persistently high claims expense, a quarter-end jump in fuel prices, and continued pressure on volume and yields in our expedited and legacy dedicated segments. During the quarter, we repurchased approximately 1.6 million shares, or .7% of the average diluted shares outstanding for a total cost of $35.2 million. The average price per share we purchased was $22.69. Approximately $13.8 million remains available under our $50 million share repurchase authorization. We retain the full range of capital allocation alternatives based on our current financial profile. -over-year highlights for the quarter include consolidated trade revenue increased by .8% or approximately $20 million to $276.5 million. Consolidated adjusted operating income shrank by .6% to $15 million, primarily as a result of -over-year cost increases within our threat load segment. Our net indebtedness as of June 30 increased by $49 million to $268.7 million, compared to December 31, 2024, yielding an adjusted ledgers ratio of approximately 2 times and -to-capital ratio of 39.2%, as a result of executing our share repurchase program and acquisition-related earn-out payments. The average age of our fractures at June 30 has increased slightly to 22 months compared to 21 months a year ago. On an adjusted basis, return on average invested capital was 7% versus 8% in the prior year. Now, providing a little more color on the performance of the individual business segments. Our expedited segment yielded a 93.9 adjusted operating ratio, a result only slightly better than the year-ago quarter. While this result falls short of our expectations for this segment, we were pleased with the -over-year consistency. Compared to the prior year, expedited average fleet size shrunk by 50 units or .5% to 860 average fractures in the period. We expect the size of the fleet to flex up and down modestly based on various market factors. As market conditions improve, our focus will be on improving margins through rate increases, exiting less profitable business and adding more profitable business. Dedicated's 95 adjusted operating ratio improved sequentially, but fell short of both the prior year and our long-term expectations for this segment. On a positive note, we were successful in growing the dedicated fleet by 162 fractures, or approximately .7% compared to the prior year, and grew freight revenue by $8.3 million or .2% compared with the 2024 quarter. We continue to win new business in specialized and high-service niches within our dedicated segment and reduce exposure to more commoditized and markets where returns have not justified continued investment. Going forward, we remain focused on our strategy of growing our dedicated fleet, specifically in areas that provide value-added services for customers. Managed freight exceeded both revenue and profitability expectations for the quarter. We were pleased by the team's ability to bring on new freight, handle overflow freight from expedited, and reduce costs. The quarter benefited from non-recurring business that is expected to roll off during the third quarter, and we point out that this segment generally is susceptible to volatility of revenue gains and losses and to margin expansion and compression related to the cost of sourcing capacity during market cycles. Over the longer term, our strategy is to grow and diversify this segment, and we note that an operating margin in the mid-single digits generates an accessible return in capital given the asset-like nature of this segment. Our warehouse segment experienced freight revenue that was effectively flat to the prior year of quarter, but adjusted operating profit fell by approximately 45%. The significant reduction in adjusted operating profit is largely due to facility-related cost increases for which we have not yet been able to negotiate rate increases with our customers and startup-related costs and inefficiencies related to new business. We anticipate improvements to adjusted margin during the remainder of the year. Our minority investment in TEL contributed a pre-fac net income of $4.3 million for the quarter compared to $4.1 million in the prior year period. TEL's revenue in the quarter increased by 34% compared to the prior year, primarily by increasing its truck fleet of 429 trucks to 2,635 and increasing its trailer fleet by 866 to 7,880. The revenue increase was largely offset by lower margins on lease revenue and equipment sales due to a soft market. Regarding our outlook for the future, our team is performing well while keeping the pedal down on roads and shifting next to more contracted, specialized and high-service niches. Devon Logistics is one of the few companies in our industry to grow revenue and flow count year over year while the combination of -to-general freight market and startup costs and new dedicated accounts along with inflationary costs has pressured margins more than we'd like. We see a path to improving fundamentals as the year develops. Our baseline expectations for the second half of the year includes additional startups in our dedicated segment, a slowly improving general freight market and modest peak season that will benefit expedited and dedicated, and a wide range of outcomes and managed freight. If the general freight market fails to improve, we still expect mixed change and seasonality to generate better results in the second half of the year. And the general freight market improves and a typical peak season takes place, we believe leverage exists and are model to capitalize and expedite certain dedicated accounts and managed freight. Regardless of what the remainder of 2025 has in store for us, our team is aligned and focused on continuing to execute on our strategy and plan, which includes a disciplined approach to capital allocation, executing with a high sense of urgency, improving operational leverage as conditions improve, growing our dedicated fleet, and improving our cost profile.

Thank

you for your time and we will now open up the call

for any questions.

Thank you. If you would like to ask a question, please press star 1 on your telephone keypad now. You'll be placed into the queue any order received. Please be prepared to ask your question when prompted. Once again, if you have a question, please press star 1 on your phone now. And our first question will come from Scott Rupp with Wolf Research.

Hey, thanks. Morning.

So you just talked about, I think, improving or optimism about improving fundamentals in the back half of the year. Maybe just give us some sense what you're seeing in the market, any sort of customer conversations around peak, any impacts from English proficiency enforcement, just broad views about how the market's developing. Hey, Scott. This is David. Yeah, you know, we are definitely seeing, I believe, some green shoots that are starting to show forth. And I think we've all been looking for it for three years. And the thing is, in three years, I think we all will say there's been two or three times we felt like something was happening that never did quite have any longevity to it. But I do believe there are some opportunities out there in the marketplace today. As I look at bids, as I look at mid-year bids that, you know, people that did bids six months ago, that all of a sudden are having some issues on capacity that are starting to come back and want to ask questions. I'm looking at, not inability, but pricing that is not going down, may not be going up as much as I want, or those kind of things. I don't sense the pressure on rate decreases across the book of business. So I do think that some things are happening. I think some things are happening in the capacity side as well. As I look about, as we know some of the things that are going on from English, you know, English language and those kind of things that none of us consider and say that it's really at pagan effect. But we're sensing some of that. On the solution side, the business is feeling kind of up and down. I think that at the very beginning of it, they really sensed it and had to say goodbye to some carriers that could not guarantee that they were going to have some English speaking people. But that said, overall I feel pretty good about what I'm starting to see in the market. But I could get really excited if it had not gone down a couple of times in the last three years, Scott. I understand. You've got a lot of LPL exposure on the expedited side. Maybe just talk about how that business is developing, any signs of green shoots there, or is that still more challenging? It is. It has been challenging. And that's one of the, to be honest with you, one of the surprises that I would say to me in the last few months, the last five months anyway, as we've seen our LPL customers get softer in the marketplace, trying to figure out exactly what that is and what is happening there. You know, we kind of did a study in the last couple of days of all our LPL companies. I'm talking about verbalizing with them. And out of all of them, we've only found a couple of them that would say, our business is up. The rest of them are saying, we're feeling pressure on volumes. And so the LPL side of it is concerning. What's going on there, I would tell you also though, that's surprising from a good standpoint, is that the air freight side of our business, the consolidation of air freight, I'm seeing some good things happen there that is exciting me. And I mean, I think we all see the focus of the government that Trump and the administration has got on AI. And we're thinking that. I mean, we're hauling a lot of servers right now. I'm starting to see transportation-wise what I've been hearing from people verbally about AI. And I'm starting to see some of that taking place in some of these data centers that are building out the United States and the service that we're starting to haul just in the last 30, 45 days that we're really starting to send some opportunity there. So the LPL is down, but the air freight side of our business is really, I don't want to say really starting to pick up. It's starting to pick up. So that's encouraging. Yeah, that's interesting about the AI stuff and data center maybe finally starting to drop in freight a little bit. Last one, if I can, how does the big bill impact your thinking about catbacks and spending on trucks? Are you more likely to be buying trucks, or buying more trucks now, anything like that?

Yeah, I don't know that it changes our plans, Scott, but it sure does help our cash tax obligations for the remainder of this year and quite honestly next year. You've got to think, I mean, just in a broader sense of kind of the economy, there are a lot of industries, particularly kind of heavy catbacks. I think it could spur some additional freight. I think it could be a catalyst for some additional demand. I look at it as kind of a stimulus that can kind of help with some of that industrial lightness that David was talking to. But, you know, we've talked about our capex for the year was planned a little bit lighter than what we had announced in the release. And I think what we've seen, fortunately, is the ability to grow, continue to grow our dedicated. And I think we've got some additional dedicated growth opportunities for the tail end of the year. And so there's some growth capex in our numbers as well for the rest of the year. But generally, we try to stay pretty disciplined to our capex plan and adjust it for growth opportunities.

Thank you guys. Appreciate the time. Thanks, Scott.

Our next question will come from Daniel Embro with Stevens.

Hey, good morning guys. Thanks for your questions. Hey, Daniel.

But maybe

I'm dedicated to that. I was starting there. We saw some stronger actual growth in truck count this quarter. It's good to see that, I guess. Can you talk about what drove that and what part of the dedicated business you were able to grow here in the second quarter? And then just tie

into that, you know, how are you thinking about poultry for the back half of the year? Is there any Asian influenza still kind of out there that you hear from the field? I know the back half is important for that poultry business. Would love an update there on that

as well. Hey, Daniel. Paul. Yeah, the Asian influenza is all but gone. You know, that season is generally more, you know, mid-fall to mid-winter, you know. And so that's gone. And then, fingers crossed, we don't experience anything like we did last year on that front. Yeah, the growth in the dedicated count was a function of really two things. A small kind of tuck-in acquisition, really small, you know, 50-70 truck kind of deal on some specialized business. And as well as growth in poultry. And then I would say the legacy dedicated business was sladdish. You know, we saw a little bit of decline in that in Q1. And that business was sladdish for Q2, hence the truck growth in the quarter. As far as you asked about balance of the year, I would say flat to incrementally up. You know, I think that we do have some startups that are signed and planned. Also know a few, you know, small reductions. And so on the balance, I think it'll be flat to slightly up for the balance of the year. That's helpful. Appreciate that, Paul. And maybe share a percentage of a follow-up question. Just looking at the model, you know, revenue from IELTS has gone a

little bit, one Q to two Q. But if I married that with David's comment earlier, how those things are actually getting better and pricing still OK. Maybe just walk through kind of what happened in the quarter there optically

and then how we think about that trajectory in the back half of the year.

Yeah, I think what you're seeing in revenue per mile, whether you're looking at it sequentially or whether you're looking at it on a -over-year basis. Going from a -over-year basis, we have had some rate increases particularly on our expedited segment. But I think what you're seeing is a significant change in business mix. And if you're looking at our total truckload operation and you're reducing 50 trucks out of our expedited slate, and I'll just use round numbers that are putting 200,000 miles on a truck per year and inherently have a lower rate per total mile, if you will. And then you're adding in these low short haul mileage trucks and are dedicated and significantly growing that. You're going to see some distortion on the rate per mile and not as chaos or confusion. But the dedicated business is not just pure line haul stuff. It has fixed and variable calls. It's build per load and there's some weight pieces to it. So you just can't really look at the number of miles they ran and look when you have a changing mix in the fleet, I would say. The other thing I would say if you're looking at it sequentially, all of the shutdowns and the created in the weather, created a little bit of a bump in deadhead and it created some noise in the first quarter. So it tore the fall from a 1Q to 2Q. When we were out here talking about some rate increases, particularly in expedited, there was some out of route miles and it kind of creates some issues where you're kind of, it makes the rate per total mile look a little lumpy. But I think for the rest of the year we're probably going to be looking at flat after some sort of short term catalyst, which I think this thing is turning. I just don't know how quick it's turning. I'd be hesitant to make a call on it. It does turn and it's torn up. Yeah, we've got some leverage when it does turn. We're just waiting on that day to happen.

That all makes sense. So you lost some time to squeeze it in. You mentioned you did a small tuck-in this quarter

on the dedicated side. I'm just curious how the M&A backdrop is evolving as we navigate this prolonged downturn, but we're coming off the bottom. Like are you seeing the frequency of deals coming across your desk picking up at all, sir?

I think, well first of all the tuck-in acquisition was done on the really back end of last quarter. We mentioned it in the release last quarter, but again it was a small one. It fit well and it was a tuck-in and really interesting type of business and interesting type of non-poultry related trade or non-ag related trade. Yeah, I think it's interesting. The deal market ebbs and flows and I think we're in kind of a situation over the last couple of months where a couple of interesting things have crossed our desk or crossed our path that have made it to a level where we're talking about them that fit what we do. I think the key to us is sticking to what we've done historically and just being disciplined in our, you know, working our plan and being disciplined with our capital and making sure that we're allocating it appropriately. But it definitely has, it feels like it has picked up with some interesting opportunities. There's always things floating out there, but the last two or three months I've noticed some things that have been particularly interesting I'd say.

Appreciate all the color and best of luck guys. Alright, thanks, Tanya.

We'll move next to Jeff Kostman with Vertical Research Partners.

Hey, good morning everybody. How are you? Hey, Joe. Hey, well, there's a lot of questions right here, so I

got one detailed question and one big picture question

here. Question for Tripp,

you bought back 1.5 million shares. The shares sequentially changed by only half a million. What's a good number to think

of in terms of third quarter shares outstanding? Well, we purchased, I mean remember our average,

here's what I would say. The shares that are presented in our financial information are an average. So, I think you can, the 1.5 or 1.6 million that we repurchased over the course of the quarter, you'll see them be completely out of the Q3 results. So, you could basically take where we landed in Q1 or at the end of Q1, reduce it by 1.5 million or 1.6 million and then that's probably going to be a close run rate. There's not a lot of festings or anything like that or diluted share issuances that are going to kind of materially impact that number or that math, if you will, on your reconciliation. Okay, so an overly simple way to think about it is you had 27.2 million shares average for the second quarter. Would something in the 26 to 26.2 range be kind of a fair target in terms of where that third quarter average is likely to be? And let's borrow your letter, activity. I think that's pretty spot on. It may move up and down a little bit, but not 26.2 is probably a good number.

Okay, thanks. And then question for

David and Paul. If I take a couple steps back and look at the bigger picture of the freight environment and where we think we're probably going over the next year or two. Right now we're looking at kind of a 95-ish OR in expedited. We're kind of around the 96-ish OR in dedicated. Where do you think these should be in the longer run when the market's stabilized? And when I think about the dedicated business, you mentioned the avian flu is gone, but that impact to the franchise still kind of lingers around. As these businesses heal and the market's normalized, where should those margins go?

Yeah, David, great question. I would sum up a couple of things over here. One, that particular question is in our overall summary from a big picture standpoint. I really think that expedited is a depend upon the market. It's a 83 to 93 operation. It's 83 to 93 depend upon the market. I think it's when it is thinking like it has been the last couple of years. Now keep in mind, some of us on this call will remember that, that 10 points that I'm saying there, they used to be 93 to 103. They used to be a 92 to 102 kind of number back in 2015, 14, those kind of days. So we have kind of dropped it by a strong 5, 6 point, but I do believe that expedited is 83 to 93, depend upon the market. I believe that our dedicated is going to, the first goal that we got there is to get back down into the low 90s. And I think that that is very, very possible. As I think about dedicated, as we all know, I mean our poultry division is in the 80s to give you an idea. We all know that. It's in the 80s. The flu hurt it into the low 90s, but it's a solid mid to high 80s kind of number. We want to improve that and it will improve. We have grown that segment so fast and so rapidly, and I still see continued growth in that. It costs money to go out here and grow these things, even for the repositioning equipment all over the country in order to do that. So internally I would tell you that, give me 84 to 86 on poultry and I'm a happy guy. And I think that that's where it's going to be as long as we're going to be growing by. I mean we have tripled that business. So it's a big operation that we've got there. And we continue to make good headway on the legacy dedicated side of our business. No doubt it's operating to equal 95. It's operating to high 90s in order to operate there. But what has happened on that, and it's getting closer, I believe, to maybe it gets to 94 kind of numbers, that a lot of, two things happened, a lot of commoditized business has left. I still think out of, on that legacy out of 8, 900 trucks in there, I think we've still got a couple of hundred trucks that are commoditized that have to be dealt with eventually. But I also think that the business that we lost in that over the last couple of years in the legacy dedicated, as we all know, two things happened. Commoditized ruins your race. And that's not what any of us want to be in, is to commoditize any kind of, any kind of commoditized business. That's what we've ran from for so long. But another one is that the ones that are operating extremely well in the last couple of years, the pressure, when that contract's up, that pressure gets there. Let's just say those businesses are operating the low 80s, and they were and they are, those kind of things, an acceptable return, all of a sudden the contract expires and you either lose it or it goes to a 95. So you've got legacy commoditized as well as the good ones. And so that's the thing on the legacy side that we've been dealing with for the last three years. I think it starts healing itself as we go forward, especially when the market gets a little bit tighter. So that's what's going on in the expedited. I think expedited is, we still believe it's high 80s, low 90s, together. Everything together. And I think that's where we will end up at. We just may need some help from a strengthening of economy or less capacity. So hopefully that gave you a big picture of those two jails.

No, that was really, really helpful. And then Scott Group 10a hinted at this, but let me come back to it. You know, the one gripe I think this industry has had for two to three years is where's the volume. We've been waiting for that volume catalyst to tighten up the market, because capacity is just not coming out as fast as it needs to. Do you believe that between the consumer benefits, the disposable income, and some of the industrial incentives that are out there on capital investment and manufacturing, could the one big beautiful bill be that volume catalyst the industry's waited for, or do you think it's something else?

Well, I think there's a couple of things. I think first of all, big beautiful bill there. I think Donald Trump is going to get this economy going nicely. I do believe that. I mean, I think he will die before he doesn't get there. And so I think the entire government focus is there. And I do believe, I think that we're going to start seeing three to four percent GDP kind of numbers. I was with housing folks yesterday, you know, in the floor covering business. And, you know, they're just basically waiting for housing, for interest rates to drop on the houses. They think the backlog is gigantic as soon as people can afford the payments. And we see the battle going on in Washington with the Federal Reserve on the interest rates. And I think there's a lot of catalysts, because he will win, whether that's Trump, whether that's in November, October, or next March, he's going to win that battle. And those interest rates are going to go down and housing is going to improve. So I think that those are some of the catalysts. As well as capacity is leading. It has not left as fast as what all of us would like to see capacity leading. It's been very stubborn and those kind of things. But capacity is leading. You can see that in the class eight truck orders. Nobody is buying a bunch of trucks. And so it's just a matter of time. I think that whatever number you want to use, three to three and a half percent GDP with classic truck orders being down and exit being up, even though maybe not the number I want, that is going to show up in tightness of business. And whether that's three months from now, I believe my guess is as good as anybody here, as good as mine. I think it's the October kind of timeframe that we will start seeing capacity really starting to tie up. Because we're starting to sense it as we speak right now.

That was a terrific

broad answer. Thank

you very much. Those are my questions.

As a reminder, if you would like to ask a question, you may signal by typing star one at this time. And our next question will come from Elliot Alver with Covenant Logistics.

But yes,

thanks. This is Elliot for Jason Seidel. Maybe coming back to dedicated margins improving in the back half of the year. You spoke about some additional startups. Is that margin drag quantifiable at all? I guess trying to think about core dedicated trends, maybe some of the expectations into what a modest peak season looks like, especially given some trade policy that might swing what a normalized peak might look like.

Yeah, let me break it down for you a little bit Elliot. I think that dedicated margin got better from Q1 to Q2. And I think dedicated margin could get slightly better from Q2 to Q3. And then wherever it gets in Q3, that will probably be where it will be. Because Q4 with the holidays, Thanksgiving and Christmas, it actually always pressures dedicated margins. And so I think you'll see dedicated get a little better Q2 to Q3. And then it could be flat at the back a little bit in Q4. And then on the expedited side, you're talking about the peak season. If some of the things David talks about come to pass, and October things start tightening. We did see a little bit of peak last year. You can see an uptick in rates and tightness in that fourth quarter on the expedited side. If we experience that, and nothing tells us that it's going to be looser than it was last year, especially with the tax policy and maybe what GDP might do. You think it'd be better than it was last year. Then I think you could

see expedited, you actually get a little better in the fourth quarter.

Okay, very helpful. And then maybe just following up on that, with then dedicated use of value added services for customers. Sure, if you can give us a figure what that could look like.

Yeah, I think we're continuing to try to diversify

on the dedicated side, out of those commoditized end markets. So that takes time. But here's what you know, is that every time specialty businesses that are harder generally have better margins than stuff that's not specialized. So over time, I think you'll continue to see that margin improve as we work that plan. But that's going to kind of be a slow, steady plan, not a flip of the switch kind of deal.

Thank you, brother. Ali, just to add to that, I mean, all of this prolonged down cycle, if you will, if it's done one thing, it's created a lot of competition within traditional dedicated, driving and dedicated. And there is a lot of capacity flooding into that. And adding to Paul's comments and part of our strategy is to figure out ways basically how to differentiate ourselves, whether it's hauling different things like life haul or feed or using different equipment or doing different things that require driver credentials or that are just difficult, high service requirement type things. Those are the type of areas that we're trying to penetrate. And the more commoditized stuff is the stuff that we're going to have. As we think about capital allocation long term, those are the types of things that are going to be, we're going to have to leave those behind because they may have been considered nitty or kind of dedicated and high margin at one time. But I do think it's becoming more and more competitive. And I don't know if it'll ever come back to where it was. So, you know, we're having to adjust our plan and adjust our sights on some of that more specialized stuff to help us stay ahead of the game.

Our next question will come from David Floyd with StratNuka Times.

Hey, thanks for taking my questions. I was hoping you could elaborate on the factors that led to the record revenue you guys saw in the second quarter this year. Yeah, you know, we've been really

blessed. I mean, David, this freight economy has been terrible for three years. And we've had the benefit of being able to grow our dedicated freight and our total trucks. And, you know, unlike any time in company history, we've been able to kind of sustain our margin and sustain our expedited business. Our managed freight, which is an asset-like business, has continued to grow organically. We did have some surge freight in the quarter that, you know, helped, whether you're looking at it on a -over-year or sequential basis. But, you know, that happens in that segment. And I think it'll be up again -over-year in the third quarter. And who knows, you know, it can be impacted by peak in the fourth quarter and additional business ads. We're seeing a lot of opportunities there. And then, you know, organic growth and warehousing itself. And so, you know, the combination of the two big, you know, drivers of the growth -over-year are going to be the dedicated segment. And that growth, I would say, of 162 units net in that segment. And then, you know, basically your managed freight, which, you know, grew almost $18 million -over-year. So we're excited about it. And, you know, we like the direction of the company, especially as where we're going, especially in an environment that is really, really tough to grow.

Gotcha. And I was curious about just like what the effects of the English proficiency requirements are on just

like recruitment of drivers. I mean, industry-wide development of that covenant.

That's not been a problem, David, because they had to pass it. We've never been there where we would not allow it, them to come to work. So we've always had to have English-speaking abilities and so drivers. So that's not a problem with us. And so really, from our standpoint and for the carriers that do not have that issue or do not employ those drivers that can't speak English, anything that comes out is something that we've been talking about in the reduction of capacity that will help the industry.

Gotcha.

Last thing I had was just,

and you were talking about how the other things, the interest rates will come down, which will encourage more people to start buying homes, and that could be good for the industry. I feel like you could elaborate on

just like the outlook for the freight market going forward under Trump's economy.

Well, here's what I know. The higher GDP is, the more freight there's going to be. The lower interest rates are, the more it's going to help housing. There's probably 20 truckloads of freight for every house they get built. To give you an idea, if you get into flatbeds and those kind of things, probably more than that. But it's just a big nucleus of freight for the housing industry. So the better the economy, the more freight that's going to be available for all of us. So that's really the two things that we look at.

Gotcha. Thank you. Appreciate it. Thank you.

And once again, if you would like to ask a question, please signal by pressing star one at this time. And we'll pause for just a moment to allow everyone an opportunity to signal.

And it appears there

are no further questions at this time. Mr. Grant, I'll turn the conference back to you.

You know, I want to say add on a little bit about the big picture that we were talking about a little while ago. And I want to make sure that I look at our company to what we've done. This team, I am so thrilled and so proud of what this team has done. They've done an excellent job. Especially when you look at the last three years' environment that the whole trucking industry has been in. We've excelled much better than virtually any peer that we got out there during the most difficult environment in trucking history that this team has done great. And I look at that and I look at things I believe are going to get better. And the things I love about this, because this has been since 2018. We're on a seven-year journey now of taking our company and transforming our company tremendously since 2018. And the model that we're sitting here talking about and raising all the various questions around expedited and dedicated and freight management and warehousing, et cetera. That's exactly what we wanted. And what we are seeing is taking place. It's what we've been working on for the last, since 2018, so the last eight years. And it's exciting to me because I look and I say, you know, when something is up, one of the other ones are coming stronger. When one is down, the other ones are pulling us up. And that is something that's helping our model tremendously. Expedited, I take the freight manager, we're all happy about the second quarter of freight management. They did a great job. Well, let me tell you, a lot of that, some of that or a percentage of that is because of the overflow from expedited. I look at expedited, we had discussed about it. 93.OR and expedited, I think it's 83 to 93 is where expedited can go at. But because of something that 93, the high end of a number that I want, the freight did extremely well. They had to give them a lot. I mean, it was a lot of freight because of the network, because expedited is working in a network in this economy that could be up, it could be down. The network, it could be sluggish from one area to another area and they may not have the trucks available in those areas that it's slung in. And so they give it over to the managed freight and that has helped manage freight tremendously in the second quarter. So what ends up happening is that expedited, as freight continues to get stronger, we talked about LTL, as LTL gets stronger, the network for expedited will get better. It will get stricter and rates will go up, then it will go down, rates will go up, utilization will go up. Now, and expedited will perform better. Now, the worst part of that is that they won't be throwing over less freight over to managed freight. And so therefore, managed freight will go down a little bit. And so that's what I love about what I'm seeing in our model. And I just want to make sure that everybody sees, recognizes that because that's powerful. And it's this team that has done this throughout our company. Another thing, okay, that does drive me crazy and, you know, our industry has got to get help on this, but it's the interns. And I look for the last four years, this is our fourth year that we're trying to set a record on station. Fourth year, the last three years, the previous three years have been record. We've beat it every year for the last three years. And we're working on trying to beat it again this year for the fourth, fourth year in a row. And we're also putting in more station cameras. As we speak, we got in about 700 trucks today. So we're continuously looking and working and the results are there on safety. But I look at our costs on insurance. It has almost doubled since COVID. It's telling you that something's not right. We've got to, we've got to get tort reform. We got a couple of accidents I'm concerned about. I don't know where it's going to go. We'll figure out where it's going to go. But tort reform has got to happen. The American Truck Association is working extremely hard on tort reform. But it's got to happen in our industry. And so, I don't know, as I look at the big picture, I think that we have done a great job. I will question whether we've been rewarded for that great job from Wall Street and Ompa. That's your question, your answer. But I'm proud of the team. So anyway, I hope that we gave you all a big overall, big picture of how I feel. So I think that's it.

All right. Well, thanks everyone for joining us today. And we look forward to speaking with you again in the third quarter.