8/3/2023

speaker
Stephen
Moderator/Operator

Thank you for joining today's conference call to discuss Dasky's financial and operational results for the quarter ended June 30th, 2023. With us today are Jonathan Shepko, Chief Executive Officer and Board Member, Aaron Coley, Executive Vice President and Chief Financial Officer, and Adrian Griffin, Vice President of Investor Relations and Treasurer. I would like to now turn the call over to Adrienne Griffin. Adrienne, please go ahead.

speaker
Adrienne Griffin
Vice President of Investor Relations and Treasurer

Thank you, Stephen. As indicated in the press release issued earlier today, participants may now download the second quarter 2023 presentation that will accompany the remarks made on today's call. You may access this presentation on Dasky's website, www.dasky.com, and in the events and presentations portion within the investor relations section. Slide two of today's presentation contains our safe harbor and non-gap statements. Today's presentation also contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Projected financial information, including our guidance outlook, are forward-looking statements. Forward-looking statements, including those with respect to revenues, earnings, performance, strategies, prospects, and other aspects of Daske's business, are based on management's current estimates, projections, and assumptions that are subject to risks and uncertainties that could cause actual results to be different materially from our expectations and projections. I encourage you to read our filings with the Securities and Exchange Commission for a discussion of the risks that can affect our business and not to place any undue reliance on any forward-looking statements. We undertake no obligation to revise our forward-looking statements to reflect events or circumstances occurring today. whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. During the call, there will also be a discussion of some items that do not conform to U.S. generally accepted accounting principles or GAAP, including and not limited to adjusted EBITDA, adjusted EBITDA margin, adjusted operating ratio, adjusted operating income, adjusted net income or loss in free cash flow. Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures are included in the appendix of the investor presentation and press release issued this morning. In terms of the structure of our call today, I will first turn the call over to Jonathan Shepko, who will review our business operations and the progress we are making as we execute our key strategic priorities. Aaron Coley will then provide an update on our second quarter results. Jonathan will conclude our prepared remarks with an updated 2023 outlook before we open the line for your questions. With that, I'll turn the call over to Jonathan. Jonathan?

speaker
Jonathan Shepko
Chief Executive Officer and Board Member

Good morning, everyone, and thank you for joining our call today. Since the second quarter of 2022, when we delivered our company's highest ever quarterly adjusted EBITDA, our industry has faced multiple consecutive quarters of challenges in both the freight rate side of the ledger as well as the cost side. While many agree that the bottom is here, our industry continues its optimism in support of a forthcoming inflection and we remain watchful for consistent key data points to signal the inflection is imminent. Whether such recovery ultimately occurs in the back half of this year or at some later point, our team has approached the current environment as an opportunity to reinvent and reposition Dasky. Given our solid Q2 2023 performance, as a small-cap public company with a business model and in-market exposure truly unmatched by any of our publicly traded peers, and a company that is successfully executing a fundamental rebuilding and continuing repositioning of our organization, we believe it's misplaced to discreetly evaluate our performance and our progress on a quarter-by-quarter basis, particularly when comparative periods include the record-breaking industry cycle peak of 2022 versus the current cycle trough. As such, today, in addition to providing more context around the second quarter's performance, I would like to provide a recap of our profound progress to date and our momentum as we approach the next up cycle. To that, after Aaron provides his quarterly financial update, I will offer a summary of our transformation progress, spend some time on capital allocation, and close with a comparison of our performance in the current environment to that of legacy Dasky's performance in the pre-COVID freight recession of 2019. This comparison illustrates the significant improvement affected over the last few years and the resultant strength of an organization on better footing for tomorrow. Before moving forward, though, I would like to take a moment to thank the entire Dasky team across North America, who continues to prioritize our legacy of strong employee relationships, including those with our committed drivers. Their contributions toward our company's success, as well as the success of our customers, are critical throughout this difficult and important time. With that, I'll now turn the call over to Aaron for an update on our financials.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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