Schneider National, Inc. (NYSE:SNDR) Q4 2022 Earnings Call Transcript

Page 3 of 13

And I think that’s probably more of a first half renewals as we had our second half renewals, those were taken into account fairly effectively. So that’s why we still think, overall, we’ll still have some price appreciation in Dedicated for full year 2023.

Jon Chappell: Okay great. And then just a follow-up on the truck side so, you have to go back a long way to see a sequential decrease in the Dedicated truck count. That’s probably – I’m guessing just some pruning in equipment. I don’t know if there is some seasonality involved too. But network moved up sequentially. Again, small numbers, but kind of against the run of place, so to speak. As we think about the fleet growth this year, I mean, I guess there’s two parts to this? One, is it primarily still in the Dedicated segment as you continue to gain share there? And two, as the OEMs kind of eased a bit, and what’s the total kind of overall growth to your fleet that you’re expecting in ’23?

Mark Rourke: Yes Jon, strategically, our growth focus on the truck side of the business is in Dedicated. And as mentioned earlier, we have sold several – hundred units of new business that we’ll start to implement here in the late first quarter and through the second quarter. And so that will be our growth focus. And as we’ve mentioned, we want to make sure that the best we can is we want to stay stable on the network side and provide additional coverage and value by integrating our Power Only offering and with our network asset side. And so our growth on the network side whilst report in logistics will be more focused around Power Only than truck count on the asset side in our network business.

Jon Chappell: Got it, thanks Mark.

Operator: Our next question is from Scott Group with Wolfe Research. Please proceed with your question.

Scott Group: Hi thanks, good morning guys.

Mark Rourke: Good morning, Scott.

Scott Group: Steve, any color on the margins for the segments in ’23? I know we got the long-term margin targets. I’m just curious, ’23 looks any differently for any of the businesses?

Stephen Bruffett: Yes, I guess providing those ranges is our attempt to provide some insight on how we view the business over the longer term and it can vary year-by-year where we fall within those ranges. But – it’s part of the benefit of having the complementary portfolio of services that we do have in any given year, one might be toward the upper end, one might be in the middle and the other might be lower or wherever it might end up. But it all contributes to the enterprise profitability over the course of time. So on a full year basis, it’s hard to nail down a specific number, and it’s probably not a path that will go down on a frequent basis, but I feel very comfortable with the range of margins that we have outlined as we look at 2023 here early in the year.

Scott Group: Okay. Maybe just to follow up, like the one intermodal in Q3, 83 in Q4 so that’s the one that’s moving around the most, so maybe the one we need the most help with. Any thoughts on beginning of the year where we should be thinking about for intermodal margins, do you think those improved or not? Any color?

Page 3 of 13