Brad Hicks: Yes. And let me just add from my opening comments that we do have excess capacity and so we’re making good company-wide decisions around where we can utilize those in the short term but in no way are we abandoning our 360box strategy. As I mentioned, we actually had volume growth inside of the network that, that box strategy supports and we remain very encouraged about that service offering.
Jeff Kauffman: That’s the context I was looking for.
Operator: And our last question will come from Tom Wadewitz with UBS.
Tom Wadewitz: Yes. Great. There was some discussion on bad debt expense. It sounded like it was meaningful. I think you referred to like the tenth largest customer in Dedicated. And so I’m guessing that was maybe a meaningful effect on the margin in 1Q. Can you give us any quantification how big that was year-over-year or absolute, just if we could kind of think about potentially parsing that out or just understanding that impact?
John Kuhlow: Yes. So Tom, this is John Kuhlow. So our bad debt expense on a consolidated basis quarter-over-quarter was $4.6 million. We had a reversal in the prior year first quarter of around $1 million and we charged $3.6 million in the first quarter of this year.
Brad Delco: And Tom, most of that would have been in DCS.
John Kuhlow: Primarily in Dedicated.
Operator: And that does conclude the question-and-answer session. I’d now like to turn the call back to Shelley Simpson for any additional or closing remarks.
Shelley Simpson: Thank you and thank you, everyone, for joining the call. Here we are, going on two years of a really difficult freight market, the hardest freight market, I think, in my 30-year career and I think certainly for the entire leadership team. And it’s hard to see what’s really happening good when you see financial performance struggling as a result but we did have some really great things I want to make sure to call out for our people. Number one, our people continue to deliver great safety performance as we reduced accidents per million miles DOT preventable by 25% and that is something important and at the forefront of how we think of our operations. We also delivered for our customers on great on-time service and that’s our expectation, that we continue to deliver value and that’s where we’re going to be focused.
We talked a lot about what we can control. And although we’re not pleased with our performance, we are focused on controlling our costs without jeopardizing our long-term opportunity. We’re listening to our customers and they’re counting on us. They want us to deliver the right value for them and we have to make sure that’s the right value for us. We remain committed to being long term in our focus, to being disciplined in our investments and we want to stay balanced between the needs of our customers and delivering the greatest return for our shareholders. But I want to make sure that I end on this, we talk about being for our people. And if you think about where we’re at as an organization, we’ve been led by 4 different leaders previous to me and John Roberts has had the privilege of leading our company for the last 13 years.
John is one that won’t normally turn the spotlight back on him. So since I’m sitting in the seat now, I get an opportunity to do that. In our 13 years, John, actually entered the organization in that time period into the Fortune 500. We’ve seen our company grow substantially over the course of period and we’ve also seen our shareholders benefit greatly. As I step into these shoes, they are big shoes to fill but I will tell you we have great leaders that not only sit at the table with me but all throughout our organization. Our tenure in the company is something that’s remarkable and something that I think has been tried and true to what makes a culture successful. But I would be remiss if we weren’t to say one of our greatest advocates for our people is are still CEO John Roberts.
And I want to make sure I give him an opportunity to address based on being our CEO and spending time doing that. And I just want to say thanks on behalf of, John, not only our leadership team but for the 35,000 people that have stood with you for the last 13 years, thanks for everything you’ve done. And I’ll turn the call over to you.
John Roberts: Well, I appreciate that, Shelley. You know I don’t like a lot of attention. I’ll tell you that it’s been the greatest honor of my professional career to get to be a part of and lead this team through some incredible growth years, through some learning years, through some evolution. Even with this quarter and even the last few and as you mentioned in the last couple of years, I could not be more proud of this group of people, all 35,000 of them, for everything that has happened under the banner of our scroll. And the way that we always put our people and our customers first knowing that we have a duty to return compounding growth and reliable, credible information so that our shareholders, our owners can make good decisions, I think that that’s something we want to protect and we want to be candid and transparent.
I can say with no hesitation at all and I’ve been up here the last couple of weeks hanging around and kind of watching for the things that I look for when I want to see my team win the Masters, win the Super Bowl, win the NCAA tournament, I see it all. I’ve seen it really for the last couple of years. But right now, the fire is hot and our people are responding to that. Our leadership is guiding the way they’re supposed to go. Our priorities are right. And I get to hand this institution, this brand, to a very, very capable person in Shelley. And importantly, she and I both agree, neither one of us can do anything without our team and specifically our leadership team. We have the highest level of responsibility to be sure that we get it right and when we don’t get it right, get it right, redirect, evolve, make sure we keep our focus on the right things.
It’s an honor. I am humbled. I’m amazed. I am thrilled. I am sad. I am all of the above. The best news is that I still have a seat at this table. I look forward to being the Chairman of this company and working in a different capacity. But I hope to continue to leverage my 35 years of experience. And 25, 13 of which was at Ford’s running dedicated contract services where I learned so many things; and the last 13-plus of being our CEO, just thank you for your trust. I feel like we’ve had a great relationship with you folks and it’s been a lot of fun. It’s been a lot more fun than it hasn’t, it’s just not a lot of fun right now; so we got to go to work. So, thanks for calling in, and we’ll be back with you next quarter with Shelley at the helm.
Operator: Thank you. And that does conclude today’s presentation. Thank you for your participation today. You may now disconnect.
