Echo Global Logistics, Inc. (NASDAQ:ECHO) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 25, 2018 • 05:00 pm ET

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Echo Global Logistics, Inc. (NASDAQ:ECHO) Q1 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Echo Global Logistics First Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Following management's prepared remarks, we will host a question-and-answer session, and our instructions will be given at that time. (Operator Instructions) As a reminder, this conference call may be recorded for replay purposes.

It is now my pleasure to hand the conference over to Mr. Kyle Sauers, Chief Financial Officer. Sir, you may begin.

Executive
Kyle Sauers

Thank you. And thank you for joining us today to discuss our first quarter 2018 earnings. Hosting the call are Doug Waggoner, Chairman and Chief Executive Officer; Dave Menzel, President and Chief Operating Officer; and Kyle Sauers, Chief Financial Officer. We've posted the presentation slides to our website that accompany management's prepared remarks. And these slides can be accessed in the Investor Relations section of our site, echo.com.

During the course of this call, management will be making forward-looking statements based on our best view of the business as we see it today. Our SEC filings contain additional information about factors that could cause actual results to differ from management's expectations. We will also be discussing certain non-GAAP financial measures. The definition and reconciliation of each non-GAAP financial measure to its most directly comparable GAAP financial measure is contained in the press release we issued earlier today and Form 8-K we filed earlier today.

With that, I'm pleased to turn the call over to Doug Waggoner.

Executive
Douglas R. Waggoner

Thanks and good afternoon, everyone. We're very pleased with our results for the first quarter, and it looks like it will be an exciting year in the freight markets. Our results this quarter and all the external data point to a continued robust freight environment for the foreseeable future. A lot of people ask us how this environment compares to what we saw in 2014.

Here's what we see is different. Demand appears to be stronger and more sustained, supply has been impacted by regulations that have taken real capacity out of the market, and the ability to add capacity is significantly handicapped by the shortage of drivers. Even more important is how Echo has evolved over the last four years. We've added substantial freight and brokerage talent to our leadership ranks, our sales and operations teams are much more experienced and our volume and truckload has increased four times what it was at the end of 2013, significantly improving our access to capacity and buying options.

Lastly, our technology has improved dramatically. The ability of our platform to capture capacity in the marketplace and dynamically match it with shipper needs makes us a highly valuable asset to both carriers and shippers. We are tightly integrated with shippers and carriers when appropriate and continue to focus on visibility and automation. All of this improves service levels and allows us to capture larger share of both shipper volumes and carrier capacity.

Now let me take you through some of the highlights from our first