Schneider National, Inc. (NYSE:SNDR) Q3 2019 Earnings Conference Call - Final Transcript
Oct 31, 2019 • 10:30 am ET
Greetings, and welcome to Schneider National's Third Quarter 2019 Earnings Call. [Operator Instructions]
It is now my pleasure to introduce your host, Mr. Steve Bindas, Director of IR. Thank you. You may begin.
Thank you, and good morning, everyone. Joining me on the call today are Mark Rourke, President and Chief Executive Officer and Steve Bruffett, Executive Vice President and Chief Financial Officer. Earlier today, the company issued an earnings press release, which is available on the investor relations section of our website. Before we begin, I'd like to remind you that this call may contain forward-looking statements and that actual results may vary.
Also, there may be references to non-GAAP measures. Please refer to the special notes related to risks and uncertainties of forward-looking statements and the reconciliations of non-GAAP measures included in this earnings release. Now I'd like to turn the call over to our CEO, Mark Rourke.
Good morning, everyone, and thank you for joining the Schneider call today. I will offer a few summary comments for the most recent quarter regarding core operations, and I will turn it over to Steve Bruffett for more specifics on the financials to include the First to Final Mile service offering shutdown status and the impairment of the for-sale tractor inventory that was booked in the Truckload segment, as well as the remainder of 2019 forward commentary.
Schneider has three reporting segments, Truckload, Intermodal and Logistics that all operate at considerable scale and serve a highly diversified customer base throughout North America. The commodities move range from general retail merchandise across multiple retail platforms, the highly specialized value-added services in bulk tanker and delivery -- excuse me, and dedicated delivery configurations.
Therefore, we participate in and serve a wide cross-section of North America's economic engine. While the segments operate independently, we strongly leverage the commercial, operational and cost synergies between the segments. The environment in the quarter was very competitive with persistent oversupply of capacity across all three reporting segments. Condition continues so far in the fourth quarter, even as we are in the midst of peak season.
Through August, 2019 has lacked the typical seasonal patterns of capacity tightening due to things like spring, produce or summer beverage seasons. But starting in September and carrying into October, we have seen some seasonality and promotional volumes related to the traditional retail peak season, but they are well below the frothy conditions of last year.
As context, in the most recent quarter, contract pricing is flat with the year ago in our large Truckload for-hire network offering. However, overall price is down year-over-year, with spot price erosion and fewer promotional freight projects.
Intermodal delivered less order volume into a more difficult year-over-year comps. And Intermodal new contract price renewals in the quarter were in the low single-digit increase range.
On the expense front, I am especially appreciative of the organizational-wide focus on variable and indirect cost management. I want to recognize the good work of our professional driver, mechanic and operations staff,