Echo Global Logistics, Inc. (NASDAQ:ECHO) Q3 2020 Earnings Conference Call October 28, 2020 5:00 PM ET
Pete Rogers – Chief Financial Officer
Doug Waggoner – Chairman of the Board and Chief Executive Officer
Dave Menzel – President and Chief Operating Officer
Conference Call Participants
Jack Atkins – Stephens
Jason Seidl – Cowen
Allison Landry – Credit Suisse
Stephanie Benjamin – SunTrust
David Campbell – Thompson Davis & Company
Bruce Chan – Stifel
Bascome Majors – Susquehanna
Alex Johnson – UBS
Ladies and gentlemen, thank you for standing by, and welcome to Echo Global Logistics Third Quarter 2020 Earnings Call. At this time, all participant lines are in a listen-only mode. After the speakers presentation there will be a question and answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions]
I would now like to hand the conference to your speaker for today, Mr. Pete Rogers, Chief Financial Officer. Please go ahead, sir.
Thank you. And thank you for joining us today to discuss our third quarter 2020 earnings call. Hosting the call are Doug Waggoner, Chairman of the Board and Chief Executive Officer; Dave Menzel, President and Chief Operating Officer; and Pete Rogers, Chief Financial Officer.
We have posted presentation slides to our website that accompany management’s prepared remarks. And these slides can be accessed in the Investor Relations section of our site echo.com. During the course of this call, management will be making forward-looking statements based our best view of the business as you see it today. Our SEC filings contain additional information about factors that could cause actual results to differ from management’s expectations.
We will also be discussing certain non-GAAP financial measures. The definition and reconciliation of each non-GAAP financial measure to its most comparable GAAP financial measure is contained in the press release we issued earlier today and the Form 8-K we filed earlier today.
With that, I am pleased to turn the call over to Doug Waggoner.
Thanks, and good afternoon, everyone. I appreciate all of you joining us today. First off, I want to introduce Pete Rogers as our new Chief Financial Officer. Pete is a long-tenured Echo veteran, and I’m thrilled to have him join Echo’s executive team. Pete has played an instrumental role and had various leadership positions in our accounting and finance organization dating back to when we were a private company. He has a deep understanding of our industry, our business, our processes and our technology. In his 13-plus years at Echo, Pete has built strong internal relationships with people throughout our organization, including our Board of Directors, and I’m confident in his ability to lead our finance organization.
Switching gears, Let me cover some of the key highlights for this third quarter. As all of you know, the freight markets have been accelerating since the brief trough triggered by the COVID-19 back in April. Capacity has been very tight and truckload rates have increased throughout the quarter, hitting record highs as recently as last week. We saw an increase in demand from shippers while the supply of capacity has not correspondingly expanded. This obviously creates upward pressure on prices. It also creates an environment where shippers find it increasingly difficult to find a truck, and a larger percentage of the loads that they tender pursuant to the execution of their routing guides gets rejected.
While this environment can be quite difficult on shippers, it’s also an environment where Echo can provide increased value by tapping into our capacity across multiple modes of transportation. This quarter, we not only did a great job of living up to our shipper commitments and our contracts but we also found them a lot of additional capacity in the spot markets. Our people have continued to do a great…