Saia, Inc.

Welcome to the SIA Incorporated first quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. Please note, this event is being recorded. I would now like to turn the conference over to Matt Vitae, Executive Vice President and Chief Financial Officer. Please go ahead.

Thank you, Michael. Good morning, everyone. Welcome to SIA's first quarter 2025 conference call. With me for today's call is SIA's President and Chief Executive Officer, Fritz Hulske. Before we begin, you should note that during this call, we may make some forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and all other statements that might be made on this call that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially. We refer you to our press release and our SEC filing for more information on the exact risk factors that could cause actual results to differ. I will now turn the call over to Fritz for some opening comments.

Good morning, and thank you for joining us to discuss Si's first quarter results. To open the year, we experienced first quarter records for revenue, tonnage, and shipments on one less workday than in the first quarter of 2024. with growth driven primarily by ramping terminals open in the last three years. Our first quarter revenue of $787.6 million increased from last first quarter by 4.3%. The growth we experienced was concentrated in our newer markets where we were pleased with customer acceptance. Going into the year, our business plans for 2025 are focused on execution and leveraging the investments we've made in our network over the last several years. We expected the macro environment to remain somewhat muted or at least consistent with what we've seen over the last two years. As we approach the end of April, the backdrop is notably different. Historically, we've typically seen seasonal increases in shipments and tonnage at approximately 3% to 4% from February to March. In facilities open less than three years, we saw the 3% sequential improvement. In legacy facilities, shipments were actually down slightly from February to March. This year, shipments in total for the company were only modestly improved from March to April, which we attribute primarily to the uncertain macro environment. Customers, although satisfied with their service and valuing our network expansion, appear cautious in the current backdrop and are taking a wait-and-see approach. We estimate the revenue impact of the sub-seasonal trends to be approximately $25 to $40 million. While the first quarter is typically impacted by adverse weather events, this year's disruptions proved more challenging in both magnitude and geographic location. Winter weather in the southern part of the country prompted closures and limited operations in some of our most dense and profitable regions. We experienced significantly more closures and terminals with limited operations in 2025 compared to the first quarter of last year, with substantial impacts to our Atlanta, Dallas, and Houston markets in 2025. We estimate that the impact of weather to our operating ratio for the quarter was approximately 25 to 75 basis points. Our first quarter operating ratio of 91.1% deteriorated by 670 basis points compared to our operating ratio of 84.4 posted in the first quarter last year. We remain intently focused on our pricing and mix optimization initiatives, We're encouraged to see wafer shipment trends in a positive direction sequentially. Additionally, we saw proportionally more growth in our ramping markets, or those open since 2022, which, while great to see, can be challenging as they're relatively less profitable compared to the legacy markets. At this stage, it is critically important that we maintain and continue to improve our service levels. Customers value certainty and reliability in their supply chain, and we believe that we're well-positioned to provide that service. Contractual renewals averaged 6.1% in the quarter, reflecting our customers' belief in the high quality of service that we continue to provide. However, as the environment has impacted our performance, we are focused on improving our service levels while also managing controllable costs and productivity. Moving forward, we'll continue to do our part for customers by providing great quality and differentiated service to justify pricing changes as are necessary to run our business. Now I'll turn it back to Matt to walk us through some key expense items for the quarter. Thanks, Chris.