David Jackson: Well, let me — maybe I’ll talk for a moment here on what some of the cadence of what these looks like. And then maybe, Adam, if you want to chime in on tempering OR as we do this. But we will acknowledge first off, Bruce, that since 2021, we’ve opened 14 locations. While we’ve seen that OR, consistently on an annual basis, improve as we’ve settled into that mid-80s. So, we like that along the way about this time last year that we were integrating the MME network and the AAA Cooper network. And so those are operating on 1 network. So from a technology optimization standpoint, we’re just 1 LTL company. But from a uniform and relationship in the local markets, we appear, and we work with 2 different brands, MME in one region of the country and AAA Cooper in another.
And so we anticipate that as we have opportunities to enter new markets through organic and also through acquisitions that, that will continue in — for the most part, with acquisitions. Now as for organic, we mentioned we have 25 in the pipeline. 5 of those locations just opened up this week, so there’s 20 more that we’ll cycle through the remainder of the year. Probably about half of those we expect to be open in the first half of the year and then the remainder in the back half. First 60 days, we’re really trying to get — build up enough volume to breakeven. And that’s largely done by opening up those new service ZIP codes to 3PLs. And then over the course of the year, you get a chance to build out that business through the nationwide bids.
There’s also some local business we’ll often pick-up in addition to things that comes through the 3PLs. There are still some additional locations through the yellow bankruptcy that we’re pursuing. And so we think — we expect that the 25 number will grow. And those will likely be on the lease side. Those are in the process of being settled as we speak. So this is very measured growth, I would say. I’ll give you an example. The 5 locations we just opened are in the bustling cities of West Burlington, Iowa for Cherry Ville, Kansas or Rock Island, Illinois or Forest City, Arkansas or Wichita Falls, Texas. So these are smaller markets. These are not huge facilities. We’ve been able to procure these at attractive rates on a per door basis. And so this is — I would say that it’s a very conservative growth plan.
But nonetheless, there will be some pressure to award in those locations. Adam, any thoughts on…
Adam Miller: Yes. I think as you mentioned, it does take 60 to 90 days to build up volume to breakeven. So it does put a little pressure on the business. And so you may see a maybe a sequential change from Q4 to Q1, that’s a little higher than normal seasonality. But I do feel like once we get our legs under us, at least with the first kind of the first batch of them or maybe the first half. There’ll be — that revenue generation of that half will more than offset the cost that we experienced from ramping up in the back half. So I don’t see a material impact. But maybe earlier in the year, we would feel that, and then we would be ramping that in the back half. Thanks for the question, Bruce.
Bruce Chan : Yes. Thank you, both.
Operator: And your next question comes from the line of Jordan Alliger from Goldman Sachs. Your line is now open.
Jordan Alliger : Yes. Just to follow up a little bit on the last question, it’s very helpful to think about this year and the growth, obviously, there — looking at your map, there’s — I think you talked about over time, going from super regional to a national LTL carrier. There’s obviously some gaps in the math that exists today. So I’m just sort of curious, how long does it take to go to cover more of the country in some of the areas that you’re now in just the current plan even this year include newer areas? Or will that have to come more in like a chunky type of acquisition type of a deal?
David Jackson: I appreciate the question, Jordan. We realistically, we would anticipate over the next 2 years being able to consider ourselves as having nationwide coverage that was in-house. So of course, today, with interline partners, we do — we can service the whole nation, but there’s — we’ll get access to nationwide network bids when we can do that all in-house together in a system. And so we expect for that map to look less super regional and more nationwide over the next 2 years. A lot of these locations that we just referred to that are the 25 call it, that we have in the pipeline plus perhaps we may add another 10, let’s say, lease type facilities on top of that. Those are largely gap fillers, if you will. Those fill in space is part of a very intentional effort so that we can acquire some chunks, as you will.
I think you referred to it in other regions that we don’t currently service. So we are — this is a multiyear plan, but it’s not as far out as you might think. So we’re well on our way. I would say that the yellow terminals, I would say, we purchased LTL terminals from two other businesses that no longer use them or also went through a bankruptcy or liquidation process, those have been wonderful gifts for us. I mean what it would have cost us to go acquire the land and build these, we would have had a much more significant capital investment. And so we’re grateful that these have come. We’ve taken a very conservative approach here. But we’re on our way. Over — hopefully, by the end of 2025, we’re able to show you a map that makes it very clear we’re a nationwide LTL network.
