Hello, and welcome to Hub's Group, Inc. Third Quarter 2015 Earnings Conference Call. I am joined on the call by Dave Yeager, Hub's CEO; Don Maltby, our President and Chief Operating Officer, and Terri Pizzuto, our CFO. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. In order for everyone to have an opportunity to participate, please limit your enquiries to one primary and one follow-up question. Any forward-looking statements made during the course of the call represents our best good-faith judgment as what may happen in the future. Statements that are forward-looking can be identified by the use of words such as believe, expect, anticipate and project. Actual results could differ materially from those projected in these forward-looking statements. As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to your host, Dave Yeager. You may begin. David P. Yeager - Chairman & Chief Executive Officer: Great. Good afternoon and thank you for participating in Hub Group's third quarter earnings call. As Vivian stated, I'm joined today by Don Maltby, Hub's President and COO, and our CFO, Terri Pizzuto. In the 45 days since Don returned to the organization, we've made numerous positive changes. We're focused on flattening the organization in order for Hub to become more responsive to our clients. One of the major changes made is that Intermodal now reports directly to me. Don has the added responsibility of having our information technology group reporting to him as well as sales, customer service, truck brokerage, Unyson Logistics, and our specialized equipment group. In addition to changes being made to the existing organization, we're currently performing a search to fill the newly created role of Vice President of Corporate Development.…

Thank you. We will now begin the question-and-answer session. Our first question comes from John Barnes from RBC Capital Markets. John, please go ahead.

Hey, good afternoon. Thanks for taking my question. Hey, so two questions I've got. Number one, I think you're still making some pretty decent progress on asset utilization. Can you just talk a little bit about how you anticipate utilization improving from here? And especially in the new role as COO, where do you think you can begin to maybe change or influence that utilization that maybe wasn't being attacked before? David P. Yeager - Chairman & Chief Executive Officer: Yeah John, this is Dave. I think, I can answer that. I think, number one, we are seeing that the rail service is incrementally getting better. And so I think that that's very positive, as it should begin to eliminate the need to make double appointments, because that during the worse periods, we were doing an awful lot of that. I think the other is, is that, Don and I and actually the entire team are really digging in to where our bottlenecks are; whether those bottlenecks are that our containers are waiting too long to make appointments prior to actually when we know the container is going to be available the following day. We're looking at an awful lot of, how we leave our equipment sit in some remote locations for extended periods. It's going to require a lot of operational focus as much as anything else, and I think that there is a lot of opportunity there that we have not kept.

Okay. All right. Donald G. Maltby - President & Chief Operating Officer: It's taking an order from cradle to grave and looking at it and how it impacts our efficiencies with our boxes. So we've got some projects underway that are looking at that and digging into it. Terri A. Pizzuto - Chief Financial Officer, Treasurer & Executive VP: And the other item that will help us is satellite tracking devices. With those, we expect that next year we'll get at least a half a day improvement in utilization from the trackers. We're seeing a little bit of benefit now, and it's only on the 11,000 containers. And we see benefit from utilization as well as driver productivity because they don't have to go hunting for a box they haven't asked that they can touch and that will tell them where the box is. David P. Yeager - Chairman & Chief Executive Officer: But we're not waiting for that, because there is a lot of things we can do without that technology just from a process standpoint or focus standpoint.

Okay. All right, very good. All right. Then just a couple of questions on maybe your thoughts around the outlook for the balance of this year and going into next year. And the two things I want to highlight; number one, your commentary around the peak right now seems to be maybe a little bit more robust than what we've heard from others in the last couple of days. And then as you look out maybe over the next few quarters, both of the Eastern railroads, especially Norfolk today slid domestic intermodal over into the headwind column when they were looking at the outlook. And even Union Pacific, I think, is calling into question maybe some of the road-to-rail conversion opportunity just where diesel fuel prices are, and beginning to acknowledge that as a bit of a headwind. So given all of that, can you just talk a little bit about, number one, the peak, maybe why you think you're seeing maybe something that others aren't? And then, number two, just given those headwinds facing the road-to-rail conversion, how do you think that plays out? David P. Yeager - Chairman & Chief Executive Officer: Yeah, I think that's a really good question. We have a lot of retail business and our retailers this year, again it's more of a traditional peak that we're used to seeing, John. Last year we had a lot of retailers that pulled business forward, because they were concerned, rightly concerned, about the potential labor disruptions, and this year it's much more normalized where we saw it begin to build late August and September, and now it's really in the heart of it right now and will be for the next three weeks or so. So I think the reason we're seeing that is, we have such a large retail component. As we look at the overall market and maybe Don can comment on the truck brokerage market, and how we're viewing carriers right now, but it is certainly soft. And I would agree with – I haven't seen what Norfolk Southern said, but certainly we've seen some limited amount of conversion back from rail to truck. And it's for two reasons is; A, it can be service, or B, it can be just with the lower cost of fuel that truck is competitive once again. Did you have anything to add to that, Don. Donald G. Maltby - President & Chief Operating Officer: No, it's – capacity is plentiful right now in peak season and the economy is soft. So our strategy has been to try to penetrate customers that we haven't the past with a bimodal solution, but this is softer than normal peaks with regard to the truck capacity.

Very good. And Dave, are you saying this is a normal peak, not as robust as it was a year ago? Is that what I'm hearing you say? David P. Yeager - Chairman & Chief Executive Officer: Well, actually no. I think it's just as robust. It's just the timing is different, yeah.

Okay. Donald G. Maltby - President & Chief Operating Officer: Yeah. David P. Yeager - Chairman & Chief Executive Officer: To where we get, you get big bunches in October unlike last year, so many people, I mean they were shipping for Christmas in June and July and people just didn't do that this year because they didn't have the potential labor unrest issue.

Okay. David P. Yeager - Chairman & Chief Executive Officer: So this is more of a traditional peak, where right around this time period in late October or early November is the biggest three weeks or four weeks that we see all year. Donald G. Maltby - President & Chief Operating Officer: Absolutely.

Okay. Very good. Thanks for your time, guys. I appreciate it. David P. Yeager - Chairman & Chief Executive Officer: Thanks, John.

Thank you. And our next question comes from Ben Hartford from Robert W. Baird. Please go ahead. Benjamin J. Hartford - Robert W. Baird & Co., Inc. (Broker): Thanks. And welcome back, Don. Wanted to get your (28:14) a very good summary at the beginning, wanted to get your take, though. You obviously know the organization very well, left, maybe gained some – was able to get some perspective in retirement, come back to the organization with a fresh start. How long do you think it's going to take for you to – you talked about broadening the Logistics offerings in addition to some of the operational focuses. But how long do you think it will take realistically for you to make some of the changes to the point that you really feel like the organization is maximizing its potential? I will ask that first then ask a follow-up. Donald G. Maltby - President & Chief Operating Officer: A good question. Yeah, I look at the potential at Hub Group as being able to satisfy our customers first, right? That's number one. If we do that, we will be very successful on growth. So we're focusing right now on being able to deliver that value to our customers on all lines of business; part of it is structural, and part of it is just a focus, part of it is technology. So to answer your question, we've got a number of initiatives underway. I would say in the next six months or so you will start to see some improvement overall in how we go-to-market. Benjamin J. Hartford - Robert W. Baird & Co., Inc. (Broker): Okay. David P. Yeager - Chairman & Chief Executive Officer: I would add that, Don did not come in and rest at his desk…

Thank you. And our next question comes from Todd Fowler from KeyBanc Capital Markets. Please go ahead.

Great. Thanks. Good evening. And Don, it's been said, welcome back. I guess I wanted to go back to John's question about the asset utilization. The 15 days here in the quarter, it sounds like that the GPS tracking is going to give you half a day in 2016. Dave, what do you think that the rail service is still costing you at this point? David P. Yeager - Chairman & Chief Executive Officer: Go ahead Terri, what did you say? Terri A. Pizzuto - Chief Financial Officer, Treasurer & Executive VP: It's a half day worse than 2013 still, so though we hope that it gets back up to those levels. David P. Yeager - Chairman & Chief Executive Officer: All right. I would just add though, that there is some things that we can do more effectively with our process or our focus on equipment management that just not being done right now. So there is no question, the satellite tracking's going to help, there is no question that the rails are – they did get better in September... Donald G. Maltby - President & Chief Operating Officer: They did. David P. Yeager - Chairman & Chief Executive Officer: ...14.5 days, and they are getting better. But, candidly a lot of it is focus also, and so that fall – that rests on us.

And Dave, do you think that you can eventually move the turns back below the 13.5 day level where you were in mid-2013. It sounds like with, I mean that's assuming normalized rail service, but it seems like with everything else that you are doing internally that there should be additional opportunity above and beyond where you've been historically? David P. Yeager - Chairman & Chief Executive Officer: We should be able to get to the 13.5 day or better, particularly with the satellite tracking. When we have first tested it, when we were looking at the technology, we forecast that it was going to be about 18 hours of benefit, just because our customers are telling us that the containers are empty and available for 18 hours, and that's actually with the limited number we have actually as we've gotten a broader number of units, it's actually closer to two days. So it's – or not two days excuse me, but 24 hours. And so, it's...

Okay. David P. Yeager - Chairman & Chief Executive Officer: There is a lot of opportunity there.

Okay. And Terri just as reminder, what is the earning sensitivities everyday in container returns on an annual basis? Terri A. Pizzuto - Chief Financial Officer, Treasurer & Executive VP: $6 million a year for every one day improvement.

Okay. And then just for my follow-up, if I could, with everything that you have in place with the GPS and with the pricing tool. Can you give us a sense of how – I don't know the right way to ask this, but how utilized do you think each of those are right now? And I hate to use the baseball analogy, but maybe like what inning you're at as far as using the pricing tool and GPS on the fleet? I'm just trying to get a sense of where you are in the whole process? David P. Yeager - Chairman & Chief Executive Officer: I would say with the pricing tool, we're probably in the beginning of the middle innings. I think that we weren't accustomed to it, we understand it better, how to utilize it better, how to run a sensitivity analysis as far as price ranges, where we have a high probability of retaining business. It's using big data in this fashion has really helped us become – to operate more efficiently during the bids. The GPS, that's very early innings. We're probably still in the first inning on it. And it'll progress quickly as we're able to get a larger and larger percentage of the fleet with the tracking devices on them, and in addition just some of the software is not even written yet that'll help us better utilize the GPS and where the containers are. And so as that comes into being, and that'll be pretty quick. All of that will help our dispatchers and route planning managers to make better and smarter decisions.

Okay. I wasn't sure if it was too soon with the Cubs to do the baseball analogy, but I appreciate it. Thanks for your time. David P. Yeager - Chairman & Chief Executive Officer: With the Cubs where they are probably, but that seems pretty strong too. So does Kansas City.

All right, guys. Thanks so much. David P. Yeager - Chairman & Chief Executive Officer: Thank you.

Thank you. And our next question comes from Scott Group from Wolfe Research. Scott, please go ahead.

Great. Thanks. Afternoon everyone. So I want to ask about pricing, both from a customer perspective and then from the rail perspective. So we started to see truck growth pricing slow, hearing today about LTL pricing slowing; can you talk about the momentum in Intermodal pricing and what your outlook for next year would be there? And then from a rail perspective, can you just give us any insight on rail cost increases in the fourth quarter, and if you think that 2016 has similar, bigger, or smaller rail cost increases than 2015? So a few things in there. David P. Yeager - Chairman & Chief Executive Officer: Yeah Scott, this is Dave. I would suggest you that we don't have any more price increases for the remainder of this year with our rail carriers. For next year, I would say that increases will be similar to a little bit larger, we're talking to our Eastern and Western partners right now, and working towards bringing that to closure, as always it's just like with clients, it's bit of a night fight, and I think they have been very good partners and there is no reason for us to believe that that's been changed dramatically. So we expect – and what our focus will be is to make sure that we can pass on the increases that do occur in 2016. So we'll have a much better idea of it. Of course, our business don't really start to kick in till the probably the mid-late first quarter and then are actually awarded closer to the middle of the year. So we're hoping we can get our rail price increases to coordinate with, in fact – one in fact, we are able to get price increases with our clients.

That's great color. Do you think that you can get from your customers similar to bigger increases next year? David P. Yeager - Chairman & Chief Executive Officer: It's a really good question, and we're kicking around a lot internally. I think one of the biggest things that concerns us is the amount of truck capacity out there. So I think on the shorter haul lane that getting a large price increase is going to be difficult or at least more – put I'll it this way, more difficult than this year. For the longer haul, for the 1,200 plus mile haul, I mean that's really more of an issue with how our competitors behave. And if everybody is looking to increase basis on long-haul business, they'll increase, if they're not, that could become difficult as well.

Okay, great. And if I can just ask one last one. So Dave, your prepared comments on the beginning about acquisitions, it sounded more like a when, not an if, which to me is a change. Maybe just talk about if I'm right that there is something changing where you seem more definitive about doing deals and what kinds of deals and how big and things like that? David P. Yeager - Chairman & Chief Executive Officer: Yeah, our last several board meetings, and I'll put a lot of it with our board. We've been looking at our long-term strategy and we concluded that really there is a certain amount of organic growth that can be performed, but where we're going to branch out and offer some of the services that are being requested and required by our clients then we need to have a much greater focus on acquisitions. So that's why we're currently interviewing for VP of Corporate Development. We really think that we may be a little bit late to the acquisition party here, but we also might be avoiding some of the high multiple hangover that some of the aggressive acquirers might feel later on, because we do think multiples have come down somewhat. There's still a lot of really good companies that could add value as a part of Hub Group and we're going to be very, very focused. As far as size, we definitely want something. We've always had a certain criteria that basically we wanted companies that diversify product offering, that are not fixer-uppers, good cultural fit, strong management teams, and immediately accretive, and we believe that they're out there. Our efforts in the past, I think that myself and several others, we've looked, but we have day jobs as well, and we just work as effective, but we need somebody that can solely focus on that, someone with investment banking experience and deal experience that can bring these home for us.

All right. Good stuff. Thanks, guys. David P. Yeager - Chairman & Chief Executive Officer: Thanks, Scott.

Thank you. And our next question comes from Matthew Frankel from Macquarie Capital. Please go ahead. Matthew Frankel - Macquarie Capital (USA), Inc.: Hi, thanks guys. Thank you for taking the question. Just to add on to what Scott asked you about, would you be willing to take on more assets in an acquisition, or do you want to remain asset-light and – well, how do you think about that? David P. Yeager - Chairman & Chief Executive Officer: Well, I think it depends upon the type of acquisition. If in fact, let's say, we would acquire a dedicated company. I think in that case what we would look to do is – where we would derive synergies is not necessarily from cost takeouts of that company, it would be through sales synergies that we can bring with our book-of-business and with our client relationships that could allow that company to grow at a quicker pace and maybe a more profitable pace as well. There could be certain times with other businesses that if it was aligned like an IMC that I mean got, that would probably be more cost synergy-driven, but for the new services, for the dedicated, for the new logistic services, we need a really strong company with a very strong management team that we can work with to help drive their sales and revenue. Matthew Frankel - Macquarie Capital (USA), Inc.: And how comfortable would you be in terms of taking on more debt? I mean how much – what kind of leverage (43:40)? David P. Yeager - Chairman & Chief Executive Officer: We're very comfortable. We're thinking – we are conservative by nature and we always have been – we're thinking two times to three times EBITDA is not unrealistic, that's kind of what we're thinking right now. Matthew Frankel - Macquarie Capital (USA), Inc.: Okay. All right. Well, thank you very much. I appreciate it. David P. Yeager - Chairman & Chief Executive Officer: Thanks Matt.

Thank you. And our next question comes from Thomas Wadewitz from UBS. Please go ahead.

Yeah. Good afternoon. David P. Yeager - Chairman & Chief Executive Officer: Hi Thomas.

And I apologize if I'm asking something you have talked about. I had to flip over from another call, so I missed a little bit at the beginning. But did you comment at all on your outlook for volumes for fourth quarter? If that looked kind of similar in Intermodal to what you saw in third quarter, or if you'd expect it to be a little lighter given some of the weakness we've seen in trucking data points? David P. Yeager - Chairman & Chief Executive Officer: Yes, we did talk about that a bit and as much as we're seeing a very strong peak right now, and the rationale for that, for the most part is that we have a strong retail concentration. And as a result of that, it's been very, very strong; October, and into early November will be the strongest periods for our business coming off of the West Coast. So Southern California right now is 20% to 30% more volume than we would regularly see, non-peak I'm talking about, just normalized volumes. We've had a lot more shipping out of the P&W, Seattle specifically. So we think that it's going to continue to be strong up through Thanksgiving, and then we think that the large surge business will begin to dissipate as this appears to be a normalized peak. Terri A. Pizzuto - Chief Financial Officer, Treasurer & Executive VP: And we're thinking for the fourth quarter between 3% and 5% volume. David P. Yeager - Chairman & Chief Executive Officer: Correct.

3% to 5% volume growth. Okay. And what about the progress on the outsourcing of your drayage activity, and just kind of – I know you faced some easy comparisons, but improvement in the drayage operation in general, where are you at on that topic? David P. Yeager - Chairman & Chief Executive Officer: As far as the outsourcing, I think that we've made some very positive momentum. Hub Group Trucking actually headed 1,000 basis points less of Hub business than they had the prior year. And so, HGT is now 60% of Hub's business versus 70% before. From an operating efficiencies perspective, I can honestly say, we're still not there, we can get a lot better. We can focus better on equipment turns. We can focus better on our own trucking optimization as far as reducing empty miles. So that's really getting down in the mud for us, so that's what we intend to do and that's really the only way to fix it. Donald G. Maltby - President & Chief Operating Officer: Right. And that's we plan on working on, because of the allocation of third-party draymen. So they're partners, we've done a good job of developing that, and now we want to continue to work on the work flows?

So when you are in fourth quarter, would you expect it to be stable in terms of the – at the run-rate you want in terms of how much is in-house and how much is outsourced dray? Like at that 60% in-sourced? David P. Yeager - Chairman & Chief Executive Officer: That's a really good question. I don't have a goal. I think that what we're looking at is to be able to optimize from a price and a service perspective, the in-sourcing and outsourcing. And so if we're finding that outside draymen in fact are more cost effective and better service oriented and 50% of it or 60%, we will shrink or grow HGT accordingly.

Okay. But it sounds like a pretty constructive read from the progress and what you are doing with it and probably a lot of runway left to go on the improvement in drayage and how that flows through to the net revenue margin? David P. Yeager - Chairman & Chief Executive Officer: Absolutely, Tom. There is a lot – there is a – good news and bad news is, there's still a lot of room for improvement.

Right. Okay. Thanks for the time. David P. Yeager - Chairman & Chief Executive Officer: Sure.

Thank you. And our next question comes from Justin Long from Stephens. Please go ahead.

Thanks and good afternoon. I wanted to ask another one on 2016 with the final rule on ELDs potentially coming out in the next few days or so. Is this something that you think could materially impact your Intermodal volumes and/or pricing for next year? And if so, any rough guess you would have on the order of magnitude would be helpful. David P. Yeager - Chairman & Chief Executive Officer: You know, I've read a lot of different things. First of all, all of our tractors with HGT have ELDs, whether it's an owner-operator tractor owned or a Hub-owned tractor, it certainly would shrink the amount of available capacity. I've seen different numbers, 8%, 12%, but whatever it is, it certainly will enhance the attractiveness of Intermodal. And certainly will change the pricing environment and the relationship with your customers.

Right... David P. Yeager - Chairman & Chief Executive Officer: So from a transportation company perspective, it's very positive. I think from a safety perspective it's very positive as well, as you eliminate a lot of people going over on hours.

Great. But just to maybe touch on the timing of when you think it could impact the market, if we get a final rule, do you think this is something that could impact the market and the pricing dynamics in 2016, or do you think it's something that we're looking at impacting the market more so in 2017 and beyond? David P. Yeager - Chairman & Chief Executive Officer: You know, I think it would – if there is a ruling in 2016, I would suggest that it would impact 2017 more so, because clients would look at it, look at their bids and become very, very focused on trying to secure the capacity that they require.

Okay. And I know you don't break out margins by segment, but one of the things I wanted to ask about, could you give us a sense for where OR in your Intermodal business stands today on a relative basis to where it was in the prior peak? Terri A. Pizzuto - Chief Financial Officer, Treasurer & Executive VP: We still have room to go. Our margins at the Hub segment were 10.9% and back in the day they were closer to 12% or 13%. So a couple of hundred basis points at least of improvement still to go to get back to those levels.

And would you say that's what the gap is if you just looked at Intermodal specifically, or is the gap in Intermodal bigger than 200 basis points or so? I know you've had some mix changes, especially with the growth in Logistics? Terri A. Pizzuto - Chief Financial Officer, Treasurer & Executive VP: It's mostly in Intermodal. You're right, Logistics gross margin, as a percent of sales has gone down from 2013 levels as well. That business has grown too, so it has a little bigger impact. But that will always be a headwind we think. So most of the improvement would have to come from Intermodal. David P. Yeager - Chairman & Chief Executive Officer: Yeah, (51:02).

Okay. And last quick one, if you don't mind. I was going to ask the $1 million in other expense during the quarter, Terri, could you give some more color on what drove that? Terri A. Pizzuto - Chief Financial Officer, Treasurer & Executive VP: Sure, it was a Canadian exchange loss that's unrealized because we have cash sitting in Canada.

Okay, great. I will leave it at that. Thanks for the time. David P. Yeager - Chairman & Chief Executive Officer: Thanks, Justin.

Thank you. And our next question comes from Brandon Oglenski from Barclays. Please go ahead.

Hey, good afternoon, everyone. David, I wanted to circle back to the corporate development and the M&A discussion. Just because we've seen some of these recent deals get a little bit more challenging with investors at least, with the concern that you go outside your core competency and pursue a different service, does it really drive synergy with your customers? So, I mean what's been your experience as you have gone through some of your own acquisitions at Hub? Where do you find yourself deficient when you go to negotiate with customers, and is there actually some truthfulness in the fact that, hey, we need to be more things to our current customers to get more at the table. David P. Yeager - Chairman & Chief Executive Officer: Well, I think, first and foremost, I do think that, if you're bringing a really well-run product to them that, yes, in fact, our existing clients do have a high degree of interest. And so, specifically again, I'll go back to dedicated trucking. It's an area all of our retail customers use it, many of our durable goods companies do, and are there current providers? Absolutely. But I think, if – again, we would be looking at a really solid well-run company that we can proudly present to our clients that are going to deliver a service that's going to be value added for them. I get what you're saying about, if you've got a management team that leaves shortly after the acquisition, we'd be in trouble. And so that's why we would be very, very focused on the management team and their capabilities. And if you look at our history, we bought Comtrak and this was eons ago, but 2008, which was a drayage company. We basically had them takeover our drayage company and implement their processes and their systems because they were superior. And the President, who was the sole owner, he stayed with us for four years. If you look at Mode, which we acquired in 20.... Terri A. Pizzuto - Chief Financial Officer, Treasurer & Executive VP: 2011. David P. Yeager - Chairman & Chief Executive Officer: 2011, the entire management team remains with us. And again, because, we incent them to most of their bonus or a lot of their bonus is based upon those things that they can control. And we give them a lot of leash and we also assist them wherever we can. So I think, it's very doable, but you always do have to be leery, when you're going into types of businesses that you don't fully understand. So I get your point.

Well actually, I wanted to get your opinion on it because you guys are by far the experts compared to me. But I can just observe how the market reacts to these things. On dedicated trucking, though, I would just add, and I would love to hear what you think about it, but it doesn't seem that there is that many examples of actual differentiated dedicated trucking models that drive higher financial returns. Most of the businesses, at least from our perspective, seem to be very commoditized. So relative to your current business model that can spin-off some pretty high returns, how do you think about getting into – I guess this question was already asked, but more asset-heavy business that could potentially be more commoditized? David P. Yeager - Chairman & Chief Executive Officer: Well, like I indicated, and we've looked at some that we haven't pursued that, but it can be not necessarily as asset intensive, particularly if the equipment is co-terminus with the contract that you have with the client, which is a relatively common practice. If you're going to go to all of the major retailers and those types of people, I mean it can't be commoditized, there's no question, because what are you doing, you're bringing a truck and a driver, that's only going to get you a certain margin. But there is a lot of other value-added services that in fact can be, and are offered, whether it's specific to a type of industry, whether it's automotive that requires high degrees of service, or other white-glove type of treatment. I mean there are areas that in fact you can get into that are a high margin for high service so, I mean you've got – and that's why the quality of the company and the leadership is so important when you make these acquisitions.

All right. I appreciate it. Thank you.

Thank you. And our next question comes from Casey Deak from Wells Fargo. Please go ahead.

Thank you. Just wanted to go back to the volume surge off the West Coast that you guys are seeing. So when you put out a number like 20% to 30% volume surge, and you've made some helpful comments here, but is that within your expectations and what you would normally expect in a normal peak season environment, or is 20% to 30% above typical trends? David P. Yeager - Chairman & Chief Executive Officer: It is a typical peak. So the way we go about this is, we do query with all of our large retail clients and we ask them for their forecast, and from that – because we need repo empties from Texas, from the Pacific Northwest and a lot of other areas in order to make sure we have enough equipment there for them. So it's a very collaborative approach with our retail customers so that we can supply them the equipment they need to get the goods into their warehouses and then ultimately their shores.

Okay. Great. And to stay on the West Coast, can you give an update on where you are with the driver sourcing and drayage in California after the change out there? David P. Yeager - Chairman & Chief Executive Officer: Sure. That's one where we've been very successful with the sourcing. When we first changed the model from owner operators to company drivers, we had 275 drivers, we now have about 125, and instead of handling 70% of our Los Angeles business, they're handling about 25%. And that feels about right.

Okay. Great. So that's where you would expect it to stay going forward? David P. Yeager - Chairman & Chief Executive Officer: Again, I think that that's something that we're going to allow to be fluid depending upon the service levels we've given our customers and how the sourcing events work and how we're able to continue to grow our relationship with our outside providers. Los Angeles, we've got some really good ones with very long-term relationships that I think that we can continue to get, make that relationship stronger and stronger over time. Donald G. Maltby - President & Chief Operating Officer: Yeah, we're evaluating it by market.

Okay. So how many third-party players are you working with? You had talked about going with a few strategic alliances out there. How many is that up to at this point? David P. Yeager - Chairman & Chief Executive Officer: Well, as you can guess with the amount of volume we have, it's not a handful, it's probably more like 20.

Okay. David P. Yeager - Chairman & Chief Executive Officer: And we do try to concentrate volume. We want to make sure we're significant client to them because we think that that's important that our business means something, and so it's in that range. And we're always looking for others, I mean it's the relatively low barrier-to-entry type of a business and if you get something that's really service focused, the relationship can really build well.

Okay. I appreciate the time. Thank you. David P. Yeager - Chairman & Chief Executive Officer: Thanks, Casey.

Thank you. And we have a follow up question from Scott Group from Wolfe Research. Please, go ahead.

Great. Thank you for the follow-up. So just a couple last things. With the Norfolk's change with Triple Crown, what do you hear from customers and what kind of opportunity is that for you next year on the volume side? David P. Yeager - Chairman & Chief Executive Officer: We've been looking at it, we had of course – with our competitive intelligence we have a pretty good idea who their clients were and some of the lanes involved, an awful lot of full lanes that Triple Crown headed are not a natural transition to the Norfolk Southern's intermodal network. There is some fit but, it's a little more difficult Scott. So I don't look for huge surges as a result of this. For Hub Group anyway, I do look for a lot of that businesses to convert to over the road, and so that will suck up some of the capacity as well. So there are some positive things from that perspective, but I think Norfolk Southern had really designed the Triple Crown network, cannot compete with their intermodal network.

Does it overlap with the CSX and is that an opportunity for them? David P. Yeager - Chairman & Chief Executive Officer: You know, it probably has a little more overlap with them because just some of their terminal locations. But an awful lot of the traffic is just outside of Triple Crown naturally will move towards truck.

Okay. We've heard from your – I guess, your competitor that they are moving some business from – or it appears they're moving some business from NS to CSX. Do you think that's an opportunity for you? David P. Yeager - Chairman & Chief Executive Officer: As far as just our relationship with Norfolk Southern?

Or a similar potential transition; either way? David P. Yeager - Chairman & Chief Executive Officer: Yeah, we never rule anything out, I mean we had a very strong good relationship with the Norfolk Southern. We certainly have a lot of respect for CSX and their network, which unlike the West, like the UP does has the gut to probably the most points of the two Western railroads, Norfolk Southern and CSX have very different networks, and so it's certainly something that could be interesting and attractive, just from a perspective that there's markets that Norfolk Southern can't get to, that CSX can.

Okay. And then just lastly real quick, with the focus on acquisitions, do think you'll still be buying back stock, or do you stay out of the market then? David P. Yeager - Chairman & Chief Executive Officer: Terri is nodding her head, yes. Terri A. Pizzuto - Chief Financial Officer, Treasurer & Executive VP: Yes, yes, yes. David P. Yeager - Chairman & Chief Executive Officer: Yes. Terri A. Pizzuto - Chief Financial Officer, Treasurer & Executive VP: Yes, we think, we could do both. David P. Yeager - Chairman & Chief Executive Officer: We could do both Scott. Terri A. Pizzuto - Chief Financial Officer, Treasurer & Executive VP: Yeah, we've got about $43 million remaining on our current share buyback authorization or $24 million – I'm sorry $24 million on our share buyback authorization remaining, and so we can certainly do that and acquisitions.

Okay. David P. Yeager - Chairman & Chief Executive Officer: Yeah, we'll talk to our board about whether we need another authorization from them in the upcoming November meeting.

Okay. Thank you. David P. Yeager - Chairman & Chief Executive Officer: Thanks, Scott.

Thank you. And our next question comes from Matt Brooklier from Longbow Research. Please go ahead.

Hey, thanks. Good evening. I think the Intermodal volume growth guidance range, that the top end came down just a little bit, I'm just trying to get a sense for if that's just a function of maybe a softer macro here in 3Q versus when you gave guidance in 2Q, or if there's any other factors at play? If maybe rail service isn't improving at the rate you thought it would or some conversion from rail to truck. I'm just trying to get a feel for the components of the top end coming down a little bit. Terri A. Pizzuto - Chief Financial Officer, Treasurer & Executive VP: Yeah, you're right, Matt, we had originally said between 3% and 7% volume growth for the year, so now we think between 3% and 5% hence the reason for bringing it down is the overall domestic intermodal market growth isn't as strong as it was at this time last year. There are headwinds due to rail service and lower fuel, you know for the first nine months of the year we grew our volume 3.5% and you know what range we get to either 3% or 5% will depend on how long peak lasts and how strong it is. As Dave mentioned in his prepared remarks that it's going well now, it could dissipate at Thanksgiving. It could last longer with the e-commerce we're just not sure, and more tepid demand than last year.

Okay. It sounds like we're off to a good start. I guess the conversion part of it, more capacity in the truckload market and additional freight maybe moving from rail over to truck, that sounds like that's a much smaller component of it? Terri A. Pizzuto - Chief Financial Officer, Treasurer & Executive VP: We certainly saw some of that, but not a lot, and it was more in the East that we saw it, and then... David P. Yeager - Chairman & Chief Executive Officer: Right. Terri A. Pizzuto - Chief Financial Officer, Treasurer & Executive VP: ...the local West business.

Okay. And then on the other end of things, your net revenue margin guide from fourth quarter, I mean you hit towards the higher end of the guide in 3Q. You took off the bottom end of the range. Just trying to get a sense for the contributors to having more conviction in the higher end of the range, and if there's any headwinds that we should be thinking about in terms of the margin? Terri A. Pizzuto - Chief Financial Officer, Treasurer & Executive VP: Yeah. Well, I mean a couple of things that have to happen to get to the high-end volume and price increase as the customers awarded us have to materialize rail service and utilization improvement, we're assuming about a half day better than last year and slightly better than the third quarter and then growth in truck brokerage and mode get us to the high end.

Okay. I appreciate the time. Thank you. David P. Yeager - Chairman & Chief Executive Officer: Thanks, Matt.

Thank you. And I'm not showing any further questions at this time. I'll now turn the call back over to Dave Yeager for closing remarks. David P. Yeager - Chairman & Chief Executive Officer: Great. Well again, thank you for joining us this evening on the call. Obviously, as always, if there's any further questions, both Terri, Don, as well as myself are available at any time. So thank you again. Have a nice evening.