U.S. Xpress Enterprises, Inc. (NYSE:USX) Q2 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 05:00 pm ET


U.S. Xpress Enterprises, Inc. (NYSE:USX) Q2 2020 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen and welcome to the U.S. Xpress Second Quarter 2020 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Mr. Brian Baubach, Senior Vice President, Corporate Finance. Please go ahead, sir.

Brian Baubach

Thank you, operator and good afternoon everyone. We appreciate your participation in our second quarter 2020 earnings call. With me here today are Eric Fuller, President and Chief Executive Officer; and Eric Peterson, Chief Financial Officer. As a reminder, a replay of this call will be available on the Investors section of our website through August 6, 2020. We have also posted an updated and more detailed supplemental presentation to accompany today's discussion on our website at investor.usxpress.com. We will be referencing portions of this supplement as part of today's call.

Before we begin, let me remind everyone that this call may contain certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include remarks about future expectations, beliefs, estimates, plans and prospects. Such statements are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from those indicated or implied by such statements. Such risks and other factors are set forth in our 2019 10-K filed on March 4, 2020 as supplemented by our first quarter 2020 Form 10-Q filed on May 6, 2020. We do not undertake any duty to update such forward-looking statements.

Additionally, during today's call, we will discuss certain non-GAAP measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with U.S. GAAP. A reconciliation of these non-GAAP measures to the most comparable GAAP measure can be found in our earnings release.

At this point, I will turn the call over to Eric Fuller.

Eric Fuller

Thank you, Brian and good afternoon. On today's call, I will review our second quarter results and the success that we are achieving as a result of our technology and cost management initiatives. Eric Peterson will review our financial results in more detail, and I will then conclude with a review of our market outlook.

The four main themes that we hope you take away are: first, we continued to make meaningful progress implementing our frictionless order initiative and we are seeing the pace of business accelerate across the company. Second, we formally launched a new digital fleet within our Over-the-Road division and scaled it to an average of approximately 400 tractors in the second quarter. I will spend more time later in the call further discussing this new optimized fleet developed in Xpress Ventures. Third, we delivered strong margin expansion despite rate pressure in our OTR division that exceeded the benefit from lower fuel price. And we expect continued margin expansion as we continue to ramp our digital fleet and drive costs out of the organization. Fourth, our Dedicated operations continued