Welcome to the XPO Logistics Q4 2015 Earnings Conference Call and Webcast. My name is Cynthia and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded. Before the call begins, let me read a brief statement on behalf of the company regarding forward-looking statements and the use of non-GAAP financial measures. During this call, the company will be making certain forward-looking statements within the meaning of applicable securities laws which, by their nature, involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those projected in the forward-looking statements. A discussion of factors that could cause actual results to differ materially is contained in the company's SEC filings. The forward-looking statements in the company's earnings release or made on this call are made only as of today and the company has no obligation to update any of these forward-looking statements, including its outlook, except to the extent required by law. During this call, the company also may refer to certain non-GAAP financial measures as defined under applicable SEC rules. Reconciliations of such non-GAAP financial measures to the most comparable GAAP measures are contained in the company's earnings release and the related financial table. You can find a copy of the company's earnings release which contains additional important information regarding forward-looking statements and non-GAAP financial measures in the Investors section on the company's website at www.xpo.com. I will now turn the call over to Mr. Brad Jacobs. Mr. Jacobs, you may begin. Bradley S. Jacobs - Chairman & Chief Executive Officer: Thank you, Cynthia. Good morning, everybody. Welcome to the call. With me today are John Hardig, our CFO;…

Thanks, Brad. I'll cover the performance of our business segments during the quarter, then I'll provide our outlook for certain financial measures in 2016. We had a very strong performance in the quarter. We increased revenue 302% over last year and increased adjusted EBITDA 418% to $218 million. Revenue on our transportation segment was $2.1 billion during the quarter, up 217% over last year. Transportation net revenue increased by 333%. This growth was primarily from acquisitions combined with strong organic growth. Net revenue margin increased 730 basis points over the prior year due to our acquisitions and organic margin expansion. Importantly, excluding the acquisitions, organic net revenue margin increased 280 basis points. Adjusted EBITDA for transportation was up 379% to $151 million. Our less-than-truckload business contributed revenue of $559 million in the two months of the quarter that we owned it. Yields remained strong. For the entire quarter, revenue per hundredweight excluding fuel surcharge increased 3% over the prior year. Daily LTL tonnage declined 3.6% in the quarter. This was relatively in line with the volume trend the LTL business had been experiencing for the first nine months of the year primarily reflecting soft market demand. In the fourth quarter, our LTL operating ratio, excluding amortization of intangibles and transaction and integration costs improved to 95.0 compared to 95.9 last year. Looking at the 2016 year-to-date trends, LTL yield ex-fuel has improved further and is up about 3.5% over last year. Tonnage declined on the order of 5.5% year-to-date which is the seasonally slowest part of the year. Turning to logistics. We are very pleased with the performance of our logistics segment in the quarter. Revenue and EBITDA exceeded our expectations. Revenue increased to $1.3 billion from only $167 million a year ago and adjusted EBITDA increased 279% to $99…

Thanks, John. North American freight volumes remain soft and capacity is loose. Pricing is holding strong in LTL, while industry truckload pricing has decreased. We've been able to expand our truck brokerage margins in this environment by lowering our cost to purchase transportation. That's one of the reasons brokerage is so attractive. It's a high-return business that's in demand in all parts of the cycle. The main investments we make in brokerage are in technology and talent, both of which are levers for delivering customer service. We have a network of about 38,000 carriers, representing approximately 1 million trucks on the road in North America. Our people use our technology to direct freight to the carriers that have the highest levels of performance. Our brokerage customers consistently rank us at the top of the industry for on-time deliveries and tender acceptance. One bright spot in the economy is the demand for heavy goods that we serve through our last mile business. Consumer spending on big ticket items has been growing at a good pace. Furniture, appliances and large electronics are some of the best-performing categories for our retail and e-commerce customers. This is especially true for Internet purchases. For example, online sales of furniture have been showing double-digit growth in recent years. We signed 59 new last mile contracts in 2015, representing $118 million in annualized sales. In LTL, we are more than offsetting a volume decline with cost savings. In just a few months, we've executed on more than a quarter of the $200 million of annual profit improvement that we plan to realize over the next two years. These early savings came mostly through back office rationalization. We're also running one of the largest over-the-road bids in the industry, over 500 lanes that represent about $550 million in…

Thank you. And our first question comes from Rob Salmon with Deutsche Bank. You may begin.

Hey. Good morning guys. Bradley S. Jacobs - Chairman & Chief Executive Officer: Good morning, Rob.

Brad, you guys had completed your strategic review of the Con-way truckload business earlier, relatively recently; can you give us a sense in terms of what your organic expectations are from an EBITDA improvement story at truckload and kind of how you see the profitability trending in 2016 as we look out? Bradley S. Jacobs - Chairman & Chief Executive Officer: I don't know yet; we're still getting our arms around it. What I do know is, in the fourth quarter, in 2015, truckload had about $120 million of revenue ex-fuel which is basically flat year-over-year, which given the external market, we're happy with. And the 35% of the business that is cross-border Mexico is going okay. It's going – that's a defensive geography to be in the truckload business. So, it's off to a good start this year. The latest forecast I saw was, it was supposed to beat budget by about $1 million for the year, but it's really too early to tell. It's really – to some extent, we're at the mercy of the external market for that.

I understand. And when I'm thinking about the EBITDA guidance for 2016, what sort of – are there any savings associated with some of these RFPs that's built into the forecast or does that represent potential upside as I'm thinking about the targets that you guys laid out?

Hey, Rob. It's Scott. It is included in our targets. When you look over the, around $200 million in cost savings we've laid out, those are the ones that we penciled out that are just very clear, that makes sense. We've looked at the market rates and what we think we're going to get and we put that into our opportunity set for this year and our guidance. Anything that is improving the business or lowering it to levels in costs that were below what our expectations were, that will be upside. There will be upside if we can do a better job with some of those bids, if we can run the business better, do a better job with pricing, with making sure we're focusing on the most profitable freight, running the business more efficiently, all those things would be part of actually improving the business which is separate from the $200 million in cost savings.

Okay. I understand. And I think in the prepared remarks you had mentioned the year to – January tonnage trends for Con-way, John. What was that number? Was it down 5%? Did I hear that right and yield up about 3.5%?

Yeah. The tonnage is running year-to-date around 5.5% negative and the yield ex-fuel is up about 3.5%. And – go ahead.

And that would – is part of the tonnage trends which kind of soften, do you think that's more macro, or is this the yield initiatives which obviously have strengthened year-to-date versus the trends that we saw in the fourth quarter?

Well, it's a little bit of different things, including macro and other areas. But I would say if you look below the numbers, look at national accounts versus 3PLs versus more local accounts, you've seen decrease in some of our national account business, but that's been an offset by an increase in business from 3PLs and local accounts. We'd expect that mix to continue to move in that direction that's in line with our strategy.

Got it. And that would drive the underlying profitability improvement that you guys are targeting.

One of the things, yeah.

Appreciate. I'll leave it there and hop back in the queue.

Thank you, sir.

And our next question comes from Christian Wetherbee with Citigroup. You may begin.

Good morning, gentlemen. This is Prashant in for Chris. Bradley S. Jacobs - Chairman & Chief Executive Officer: Prashant, Good morning to you.

Good morning. I just wanted to start off on the European segments, just sticking up on that. With Norbert, given the rationalization and also the wins that you had with contracts, what do the end market exposures look like now, and how do you see that developing through the year? And maybe some color on EBITDA contribution and maybe cadence from Norbert in France – Europe in general as we look through 2016? Bradley S. Jacobs - Chairman & Chief Executive Officer: Very diversified across the whole European economy. And if you look at the top 200 companies in Europe we are doing business with, almost all of them. If you look at the top two categories, it'd be retail and food and beverage, that's the biggest chunk. But it's everything, everything across Europe, particularly UK, Spain, France, Portugal be our four biggest places.

Okay. And is there – should we be thinking about this in terms of acceleration. It sounds like you guys are winning some big contracts early on here. Is that built into the 2016 guidance number, or how should we be thinking about that cadence, any color you could provide would be great? Bradley S. Jacobs - Chairman & Chief Executive Officer: We have built that into the guidance, because we are investing in sales, and we expect a return on that, and we're getting that. That's what's been going extremely well. We'll grow earnings faster than topline in Europe as we saved some, especially at some of the money losing locations. But we would expect to grow earnings significantly this year.

Great. And just wanted to touch up on leverage and targets. I know we've talked about this before, but just wanted to get a sense of deleveraging, especially – I think this becomes a question that comes up given the softer sort of truckload in LTL environment. How do you think – how should we think about the timing of deleveraging and where do you see balance sheet leverage as we get towards our 2016 target?

Well, we expect to – it's John speaking – we expect to get in the low 4s range in terms of net leverage by the end of this year. Exactly how that unfolds over the next four quarters is going to depend on a couple things. One being the integration costs at Con-way and how those kind of roll out through the course of the year. But that's what we're thinking about for 2016.

Okay. Got it. Thanks. It's helpful. And just one last one, sort of more longer-term, strategic. There's been a lot of buzz obviously related to Amazon getting involved in transportation and logistics assets, and given your consumer e-commerce exposure – and I can understand you can't answer specific to Amazon, but more broadly, what opportunities and what challenges does this present for the business – for your business now. And to what extent does this present direct competition versus revenue wins? Bradley S. Jacobs - Chairman & Chief Executive Officer: Well, probably shouldn't talk about a specific customer in a public conference call.

Of course. Bradley S. Jacobs - Chairman & Chief Executive Officer: But in general terms, the kinds of things that we do for customers are generally non-commoditized. The stuff we're doing in last mile, the stuff we're doing in contract logistics, it's not something that could be easily replicated and it's working for customers. Customers, generally, if they can't fulfill their own commitments to their own customers by outsourced providers, they'll think about bringing that in-house. With the kinds of things that we're doing for customers, in general, don't fit to that category. So we look at the rapid growth of certain e-tailers as a good guy, not a bad guy for us.

Great. And then just one last one and I'll hop off the queue. Real quick on the tonnage trends to-date. I just wanted to get a sense, how does this compare to your expectations and, yeah, your expectations in 4Q as well also looking back? Bradley S. Jacobs - Chairman & Chief Executive Officer: Pretty much on track Prashant. In the whole of last year, even before we bought Con-way, they had that trend of volume being down, pricing being up. If you have one or the other to be up and down, that's the right one to be down and the right one to be up. You saw in the year-to-date, since January 1, an acceleration of that trend, volumes down a little bit more than it was and prices up a little bit more than it was. And again, if you want to be pushing one lever or the other, clearly you want to be pushing the price one and not the volume.

Of course. Got it. Thank you very much for the time gentlemen. Bradley S. Jacobs - Chairman & Chief Executive Officer: Thank you.

And our next question comes from Scott Schneeberger with Oppenheimer. You may begin. Scott Schneeberger - Oppenheimer & Co., Inc. (Broker): Thanks, good morning. I'd like to follow-up on that last topic. In LTL, clearly there is the economic component, but it sounds like you guys are appropriately managing for margin and price. What type of – with national accounts being the area that you're kind of targeting for the pricing and maybe management of customers, what type of, I guess, cadence is the right word or speed you want to see there? I guess you don't want to see too much revenue out the door quickly, but obviously it's a margin expansion story. Just conceptually how do you guys think about that? Bradley S. Jacobs - Chairman & Chief Executive Officer: Well, I want to make sure it's clear that all national accounts aren't bad. Some national accounts are very attractive business and it's a profitable business for us. There is a sizable minority of the national account business that loses money. And we're not in business to lose money. We're not a charity. We're not a non-profit organization. So we are calling freights from some of those national accounts and replacing it with the 3PL business and replacing it with the small and midsized customers as Scott was talking about before. And that's a measured pace. That's something that doesn't happen overnight. This is – before we would call freight, we would have a conversation. We're having lots of conversation with all of our customers. Look, a lot of these big customers that are money losers in LTL or money makers for us in other parts of the business, and there is more ways than just stopping the LTL business to get the whole portfolio more positive, by…

And I would add to that as well. So if you look at the numbers they've reset as we added on acquisitions, as you get new customers. But there's – over 70% of our top customers are using two or more of our services. Right now, about 10% of our revenue is coming from cross-selling. That again resets lower when you put in acquisitions. And then we would expect it to grow not the opportunity set to increase that 10% of revenue we're getting from cross-selling. Scott Schneeberger - Oppenheimer & Co., Inc. (Broker): Great. Thanks guys. I'll pass it along. Bradley S. Jacobs - Chairman & Chief Executive Officer: Thank you, Scott.

And our next question comes from Brandon Oglenski with Barclays. You may begin.

Hi. This is actually Eric Morgan on for Brandon. Thanks for talking my question. Bradley S. Jacobs - Chairman & Chief Executive Officer: No problem. Good morning.

I just wanted to ask one more on U.S. demand given some of the commentary around softer volumes and what sounds like might be some deceleration in LTL year-to-date. Would you say that – I guess what would you say that the risk is that some of the industrial headwinds kind of bleed into the consumer markets and impact some of those favorable trends you're talking about? Bradley S. Jacobs - Chairman & Chief Executive Officer: We haven't seen that yet. We have seen soft, industrial soft manufacturing climate for a long time now, for over a year, and it hasn't gone away, and doesn't seem like it is going away any time soon. We don't see that in retail. We see strong retail volumes. We see our big customers, our big box customers doing well. We see greater demand for the last mile. We just don't see that softening right now. It's very hard to predict that going forward. But right now, we don't see that.

Okay, understood. And is there any way to quantify maybe Con-way but also all the acquisitions, what the overhead cost redundancy is? And maybe how much you've already taken out? And how much you think you can save longer term on overhead?

Yeah. Hey, Eric. It's John Hardig. So I mean, we're still sticking with our estimate for overall cost savings with the Con-way acquisition and all the things that we're globally around procurement and cost savings and driving down cost across the company. So we've said $170 million to $210 million of annual cost savings by the end of next year. And so we're still on track to do that. I mean – so that's kind of the number that we're shooting for. That will get us moving in the right direction towards our $1.7 billion target that's out there. So that's what we're shooting for in terms of overall costs. But it's in all areas of the company. It's around finance and accounting, HR, there is a lot of things that we can do to consolidate the back office functions of the company and we're working hard to do that now.

The chances that we succeed at taking out $200 million of costs over the next couple of years is extremely high. They're very clearly identified project. We've already taken out $50 million of it, more than $50 million of it in the first three-and-a-half months. So we feel very good about that.

Great. Thanks. And maybe just one more on cash flow this year. I know you commented on it in the opening remarks, but do you have like a ballpark range that you are thinking about achieving this year? And is there a way to think about the bridge between $1.25 million adjusted EBITDA to free cash for the year? Bradley S. Jacobs - Chairman & Chief Executive Officer: Sure. The free cash flow, if you look at the $1.25 billion in EBITDA, John broke out CapEx of $475 million to $500 million, interest is $370 million to $380 million, but about $15 million or $16 million of that is non-cash, and then taxes. We're not going to be big cash tax payer in the U.S. this year. We're not going to pay cash taxes in the U.S. on a Federal basis. So let's say (34:51) $25 million in taxes or so. Working capital is roughly an investment of $70 million to $80 million. You put that together, on a normalized basis, it's around $250 million to $300 million. Now, I would say that we have integration cost this year. The integration costs and some bled over into first quarter and will continue on through the year, could be in the range of another $100 million of integration cost. So that'll come off of that free cash flow this year. But certainly our free cash flow – and seasonally it's typically more down in the first quarter and then it tends to run up through year. We'd expect our free cash flow to accelerate as we move through 2016.

Great. Appreciate it.

Thank you.

And our next question comes from Ravi Shanker with Morgan Stanley. You may begin. Ravi Shanker - Morgan Stanley & Co. LLC: Thanks. Good morning, everyone. Brad a couple of questions for you, one operational and one big picture, both kind of related. The operating question is, I think you've sued a couple of your competitors for poaching executives from your organization. Can you give us some more color on what's going on here? Is it getting harder to find talent out there? And the bigger picture question is, as you know I come from the automotive space where Silicon Valley has taken a big interest recently, maybe to the detriment of some incumbents, when it comes to, again, talent sourcing, technology, investor perception and some other areas. We are now starting to see Silicon Valley take a big interest in the transportation and freight business space as well. What do you think this means for your industry? Do you think there are big changes needed in either culture or the way you operate to kind of fend off that threat? Bradley S. Jacobs - Chairman & Chief Executive Officer: Okay. Well, first of all, Ravi, thank you for taking up coverage on us, we appreciate that. Ravi Shanker - Morgan Stanley & Co. LLC: Thanks, Brad. Bradley S. Jacobs - Chairman & Chief Executive Officer: On your two questions, we're not going to comment about litigation in a public setting – we're just not going to do that. With respect to talent, we're a magnet for talent. We have waiting lines for jobs that we post. We are very careful who we bring in. We have many more people who want to work here than we have posts open. Having said that, we're hiring. We're hiring in different parts…

And our next question comes from Allison Landry with Credit Suisse. You may begin. Allison M. Landry - Credit Suisse Securities (USA) LLC (Broker): Good morning. Thank you. Bradley S. Jacobs - Chairman & Chief Executive Officer: Good morning. Allison M. Landry - Credit Suisse Securities (USA) LLC (Broker): So thinking about the normalized free cash flow, Scott, that you've mentioned of $250 million to $300 million for this year, how do we reconcile that with the adjusted free cash flow per share targets that were outlined in the recent compensation agreement? Those seem to suggest 2016 free cash flow of closer to $400 million? So I was wondering, is this a proxy for how you're thinking about EBITDA upside in 2016?

No, they line up very closely. So we have signed up for a plan of getting to $6.40 a share of cash flow. It's an adjusted cash flow number by 2019. That – each year has targets that you laid out, but it's based on EBITDA, minus interest expense, minus CapEx. It does not include taxes; it does not include working capital. Allison M. Landry - Credit Suisse Securities (USA) LLC (Broker): Okay. Perfect. That makes a lot of sense. And then I was wondering if you could comment on the recent changes to the thresholds that would trigger the long-term incentive comp. The magnitude of the hair cut to the share price target was larger than the increase in the EPS target. So just curious as to the logic behind that change and how we should interpret that? Thank you. Bradley S. Jacobs - Chairman & Chief Executive Officer: We pay for performance; that's our strategy with compensation. We tie people's compensation, particularly their equity compensation, to how the company performs. And recently we did the – another tranche of the senior executive employee compensation to do just that and we put in yearly equity vesting completely dependent on what we want them to focus on, which is EBITDA, minus CapEx, minus interest. And if people hit those levels, they will be rewarded very well. If they don't hit them, they'll be rewarded okay, but not really well and less than they could get in other places. There was a complete restructuring of the employment contracts, there were a lot of put and takes. And of those, a dozen or so put and takes, we got – the company got more favorable terms on non-competes, on claw-backs, on severance – a number of different items. And one of the things that was given back to the employees is the $60 threshold for one of the tranches was reduced. But you can't look at that out of context all by itself. It would be misleading to do that. If you look at it in the context of the total package, it was absolutely a win-win restructuring that the board thought through very well. And what do we have now? We've got a senior management team that is -already was extremely engaged, who is even more engaged, and is very committed to delivering on the numbers that we've promised to the Street. Allison M. Landry - Credit Suisse Securities (USA) LLC (Broker): Great. Thank you for the color. Bradley S. Jacobs - Chairman & Chief Executive Officer: Thank you.

And our next question comes from Kevin Sterling with BB&T Capital Markets. You may begin. Kevin Wallance Sterling - BB&T Capital Markets: Thank you. Good morning, gentlemen. Bradley S. Jacobs - Chairman & Chief Executive Officer: Good morning. Kevin Wallance Sterling - BB&T Capital Markets: Brad, you guys have made a lot of changes at Con-way so far. There's been a fair amount of turnover. And I heard in your prepared remarks that the service levels which are already good at Con-way have improved. What's the secret sauce here with all these changes and maybe some of the key drivers to already building upon what was a pretty good service despite a lot of changes? Bradley S. Jacobs - Chairman & Chief Executive Officer: I have one secret sauce and its name is Tony Brooks. We're so lucky to attract a guy who's got his background, who's been mostly on the shipper end of the table and really understands how shippers look at the relationship with 3PLs and with carriers – he's just a real fireball. He's just a rare bird in the transportation industry. He's managed four of the largest transportation networks in the industry and he had – I think it was the largest spend of transportation in the industry; it was about $2 billion at Sears. He was 11 years at Roadway and – you know Tony was an offensive lineman at Miami, and he brings that sportsman-like team competitive attitude to the business. And we've completely redesigned the organizational chart. It's much leaner, more efficient, more accountable and it's laser-focused on customer service. You can't just focus on costs, you can't just focus on the numbers, you have to first focus on the customer – making the customer happy, picking up the freight on time, delivering…

And our next question comes from Nate Brochmann with William Blair. You may begin. Nate Brochmann - William Blair & Company, L.L.C: Good morning, everyone. Thanks for taking the question. Bradley S. Jacobs - Chairman & Chief Executive Officer: Good morning, Nate. Nate Brochmann - William Blair & Company, L.L.C: Hey, Brad, so you kind of answered this in a bunch of different ways to some degree, but kind of wanted to get in your head a little bit. As you think about all these moving pieces and you still have obviously some integration work over at Norbert and obviously a lot of heavy-lifting at Con-way, and you've talked about some of the initial results and some of the great customer retention that you've been able to drive, but how do you really think about it? Obviously, there is a lot to tackle. How do you prioritize what you need to tackle? And, obviously, you have a highly driven team, but also too with some of the new associates that you bring on as part of these organizations might not be used to that culture. How do you drive that culture down without stressing the organization or stressing too many people leaving at once and also too in terms of stressing that there wouldn't be disruption for your customers? Bradley S. Jacobs - Chairman & Chief Executive Officer: Well, I think we do stress the organization, we don't stress it over much, we don't overstress the organization. But we do challenge the organization to performance at their best and to give their personal best and to be passionate about serving customers. And that is the common culture we have in all of our organizations. If you want to work here, you better be extraordinarily passionate about pleasing customers. It has…

And our next question comes from Jason Seidl with Cowen & Co. You may begin. Jason H. Seidl - Cowen & Co. LLC: Yeah. Thank you very much. Hey, Brad. Hey, guys. Couple of quick questions from me. You mentioned the Con-way line-haul bid and that it hasn't really been out in seven years. What are you expecting to get in terms of the rates? And also could you remind us what percentage of that line-haul business is done by the truckload business you own? Bradley S. Jacobs - Chairman & Chief Executive Officer: Sure. Good morning to you Jason. So there's about $1.35 billion of line-hauls in LTL and about $800 million and change of that is done in-house by our own trucks and our own employee, and they do a great job. Most of those drivers have been with the company for a long, long period of time, are very dedicated to the business and we take care of them very, very well, They're very important part of our organization now. And then there's about between $500 million and $550 million of outsourced LTL, outsourced line-haul to third parties that we put on over hundred different carriers, and that's what's out to bid right now. With respect to what kind of savings we're expecting; we don't know, that's the purpose of an RFP, that's the purpose of a tender. You hold it honest and fair RFP, you see where the numbers come in, and you evaluate people's service performance from the past, and you respect the relationships that you've had and the good relationships and partnerships you've had with carriers in the past and you sort it all out in a win-win way. So we don't have – we don't know where we're going to end up on that. All we know is wherever we end up, it's going to be the right market, it's going to be market-oriented. Jason H. Seidl - Cowen & Co. LLC: Okay. Brad, that's fair enough. Moving to LTL, you guys obviously say you'd rather have pricing moving up in the right direction. But given the tonnage declines in the market, are you guys surprised to see pricing hold up this well in the marketplace?

Not really Jason, because look at – I mean, LTL and truckload, as you know, are totally different worlds. So on truckload you got 200,000 competitors and most of them have five trucks or ten trucks. And LTL is so much more consolidated and the top handful of competitors have the vast majority of the market, and several of them got burns in the last downturn. So they're very keenly aware of the tradeoff of price versus volume. And people are acting rationale and disciplined in – so I'm not surprised price it's holding up. Jason H. Seidl - Cowen & Co. LLC: Okay. You said it was up – the yields were up 3.5% ex fuel, could you remind us what the weight per shipment was in the quarter? Bradley S. Jacobs - Chairman & Chief Executive Officer: Give us a second, we'll look it up. Jason H. Seidl - Cowen & Co. LLC: Sure.

In the fourth quarter weight per shipment was 1,338 pounds. Jason H. Seidl - Cowen & Co. LLC: Okay. Thank you very much guys. I appreciate the time as always. Bradley S. Jacobs - Chairman & Chief Executive Officer: Thank you.

And our next question comes from Todd Fowler with KeyBanc. You may begin.

Thanks. Great. Good morning, everyone. I was curious if you had an EBITDA number for the full quarter if Con-way would have been included for the whole quarter? So the $218 million would have compared to what if Con-way would have closed at the beginning of the quarter?

I don't have that off the top. Con-way added around $68 million, $69 million in EBITDA, when you take into account the allocations and what we do in corporate for them.

So the $68 million to $69 million is just the two months?

That is the two months, yes.

Okay.

And the December month is a weaker month generally, because middle of the month, things slowdown significantly and you're twiddling yourselves a little bit in the back half of December usually. So it's a significant portion of the quarter.

Yeah. And what I'm trying to get at, Scott, is just a sense of how should we think about the cadence of EBITDA going into the first part of 2016? So you're trying to get kind of a clean run rate here for the fourth quarter and then think about some of the seasonal factors with the different business lines, particularly as you move into the first quarter and then the timing of some of the cost savings I guess as well?

Well, that's a good question, because there is a significant amount of seasonality in our business. Our strongest quarters are the second and third quarters followed by the fourth quarter and then last first quarter. So in general, our first quarter will be around 19% of the earnings of the year. Fourth quarter is more representative, about 25%; and then the balance is in the second and third quarters.

Okay. That helps. And then, Brad, I mean, just so I understand your kind of the comments around LTL, in the prepared remarks. I mean, you talked about a high growth LTL plan. I guess what I wasn't completely sure about what that is, is that basically saying high growth on the EBITDA line and seeing high growth in margin improvements? Or is that actually specifically saying that you're targeting – looking to grow the volumes and the revenue within the LTL business? Bradley S. Jacobs - Chairman & Chief Executive Officer: I was primarily referring to the first, Todd, but we're also going to grow market share as well. But that's not the focus. The focus is on improve the profitability by taking the cost out and then adding revenue on top of that on a more lean cost structure.

Yeah. Okay. That makes sense to me. I just wanted to make sure I kind of understood the comments that you made. And then, I guess, just the last one that I had is, what is the expectation and you've talked about it a couple of times, about the integration costs. It sounds like that there is roughly going to be $100 million or so of cash costs. But are we going to continue to have adjustments in add-backs throughout 2016 related to integration or rebranding both for Norbert and for Con-way? Does that start to subside either in the second half of the year or – when would you, I guess, expect to see the large adjustments really start to slow down? Bradley S. Jacobs - Chairman & Chief Executive Officer: Yeah, Todd. So that $100 million, that is a 2016 number. So that includes rebranding and the other things you are mentioning. We will see a little bit more of that in 2017, because our plan is – goes through that year. And in terms of the timing of those expenses throughout the course of 2016, it's going to be pretty evenly spread through the year for the most part.

Okay, okay. And I apologize. I'm going to ask kind of one more here. On the corporate expenses in the quarter, the $32 million, it seems like that the 2016 guidance is for around $1.25 million. The big step-up in the fourth quarter, is that mostly incentive compensation or was there something else going on in the fourth quarter on the corporate line item?

Well, it was a number of things, Todd. So we – there was some additional corporate expense in there. We also had an increase in professional service fees or audit fees. We had a big chunk hit in the fourth quarter there. We had increase in healthcare costs and other items. I mean, the other thing, if you think about 2016 and where – the reason our corporate expense is increasing, is we have taken a number of people out of the field that were in the – some of the businesses that we acquired, put them into corporate so that we really could focus on driving integration with that team and driving cost out of the company overall. And so it's really – the $1.25 billion estimate for EBITDA this year could have had any number of corporate expense related to that. So it doesn't affect the overall cost of the company, but it's more of a re-class from the field to corporate.

Okay. That helps. John, I appreciate the time this morning. Thanks, guys.

Sure. Bradley S. Jacobs - Chairman & Chief Executive Officer: Yeah. Thank you, Todd.

Thanks.

And our next question comes from Casey Deak with Wells Fargo. You may begin.

Thank you. Good morning, gentlemen. Bradley S. Jacobs - Chairman & Chief Executive Officer: Good morning, Casey.

Just wanted to ask, can you guys give the monthly tonnage trends on a year-over-year basis for fourth quarter and into first quarter so far? And importantly there, what have you seen in February so far, given that if you look back on the year-over-year, it looks like a much easier comparison for February? Bradley S. Jacobs - Chairman & Chief Executive Officer: I don't have the year-over-year handy right in front of me, but January was a little bit weaker than February, and February started coming back. To tell the truth, January was a little bit scary in the sense that it was starting to go down and then it started coming right back and exceeded where it had to be in February. So I don't know whether that's the trend, but certainly we're in a better place now than we were in January.

So February it feels – even regardless of the comp on a year-over-year basis, it feels a lot better than January? Bradley S. Jacobs - Chairman & Chief Executive Officer: Yes.

Okay. And then to stay with LTL, are you guys – are you and if you are, how are you leveraging the LTL network to grow your last mile product? Bradley S. Jacobs - Chairman & Chief Executive Officer: Well, that's one of the more exciting things we're doing. I don't want to disclose to all our competitors exactly what we're doing there, but obviously we've got a big cross-dock network now with about 275 service centers that we got out of – with the Con-way acquisition. And quite a number of those can be leveraged for our last mile network to fill out parts of the geography that we weren't in, and to get closer to the end customer, to get close to our customers' DCs. So there is a lot of planning going on and rolling out going on between Karl Meyer's group and Tony's group on LTL last mile collaboration.

Okay. So would you expect that that becomes a material gain for you guys this year or is that something more out in the 2017-2018 timeframe? Bradley S. Jacobs - Chairman & Chief Executive Officer: It's something that's already happening and will continue to pick up steam every year. And it's one additional way that we can serve our customers better and one additional way that we're just a little bit different than our competitors in terms of having both those products in the mix. And it's resonating well with solving some very concrete problems for some of our larger customers.

Okay, thanks. And if I switch gears to the truckload operation, you've stated in the past that your plan was to always build leading positions in the markets you are serving and you've gotten there with mostly all of those markets. Obviously, the new TL operation has some scale, but it's not a top five player in North America. Is that something that you're going to have to build now that – given the decision that you're going to keep it in the fold or how does that play out strategically for you guys? Bradley S. Jacobs - Chairman & Chief Executive Officer: Well, at the moment we're not planning on buying anybody and we don't need to buy anybody, because our goal is to deliver, as we have for the last four years, on the publicly stated financial goals. And to get to $1.7 billion in EBITDA by 2018, we don't have to do another acquisition. All we have to do is to continue to improve the businesses that we've got now and further integrate them and optimize them. So while we don't like being the 19th anything or 18th anything – I think we're the 18th largest trucking company according to Transport Topics, something like that. Nevertheless, we don't need to do an acquisition in order to hit our numbers. What we do need to do is every part of our business has to hold up its end of the bargain, has to pitch in what's expected of it, and Con-way – the XPO Truckload, the former Con-way Truckload, will deliver its part of the budget. And that's going to be by just running the business well and paying more attention to it and getting in it and showing our drivers lots of love and integrating the sales force with the rest of the organization. And next week we'll be at a big trade show and we'll have a couple of people from the truckload organization and we'll be sitting in meetings with retail customers, talking about all their needs including truckload. So they can benefit – that part of the organization can benefit from the great relationships we've got in other parts of the company with customers who also do truckload.

Great. Thanks, Brad. I appreciate it. Bradley S. Jacobs - Chairman & Chief Executive Officer: Thank you.

And our next question comes from Jack Atkins with Stephens. You may begin.

Okay. Hey, good morning guys. Thanks for squeezing me in here. Bradley S. Jacobs - Chairman & Chief Executive Officer: No, problem. Good morning, Jack.

Just a couple of follow-up questions for you Brad. So, when you think about the split of revenue between asset-light and more asset intensive, you gave that earlier in the call, but when you kind of think about it, parse it out based on an EBITDA basis, how would you split your EBITDA stream between more asset intensive and more the asset-light business? Bradley S. Jacobs - Chairman & Chief Executive Officer: About half and half, give or take a couple points. And revenues about two-thirds on the asset-light side and free cash flow is about 77% from the asset-light side. So what do we have now Jack? What we have in addition to the non-asset based organization that we have built on a global basis and the second-largest freight broker and the last mile and so forth, we also have 19,000 tractors, 46,000 trailers, 450 cross-docks, 750 contract logistics facilities, 10,000 boxes on the rail, 9,000 chassis. We've got a very solid asset base network that resonates with customers. That gives us a seat at the table with the largest shippers in the world to serve their needs. We also have maintained an asset-right complexion of our business that's predominantly asset-light, and the financial returns are great. When we look at asset-light versus asset-heavy, lots of different ways to look at that. Probably the most meaningful way for us to look at it is what percent of our revenue does CapEx represent, and it's a little over 3%. And it's a really interesting exercise. When we're talking about the debate about asset-light and asset-heavy, take out a list of the top 30 or so transportation logistics companies; put their revenue in one column, put their CapEx in another column, look at it to that last year, look at it expected for this year, and what percent of their revenue does CapEx represent? We're at the very low end of that. So I think the market got a little over-infatuated with the asset nature of the LTL, which we had to do if we wanted to be a big player in LTL, but we're still an asset-light company overall.

Okay. Okay. Thank you for that Brad. And then, John, I guess this one is for you, once you include the full EBITDA run rate from Con-way, would you guys expect to be profitable on an adjusted EPS basis in 2016? And if not, sort of when do you think you're going to cross that threshold?

We do expect to be net income positive on an adjusted basis for 2016. Exactly which quarter that falls in, again I think will be mostly dependent on the timing of the integration costs for this year.

Okay, okay. That's helpful. And then last question, just going back to Allison's question on the new employment agreement. I get the pay-for-performance aspect of it, but a lot of the reasons why the PSUs were so far out of the money was a result of strategic decisions made by the executive suite namely to acquire Con-way. So on that light, one could argue that your pay-for-performance really didn't match the initial expectations of the employment agreement. So, Brad, I was just curious if you could comment on that. That's all I have. Bradley S. Jacobs - Chairman & Chief Executive Officer: I completely disagree with what you said in the last sentence about the performance hasn't matched what we put in the original employee agreement. The goal we put in the employment agreement was to deliver EBITDA minus CapEx minus interest, so adjusted free cash flow. That is the most important measure for us. And that's what we're compensating senior management for. And we have hit every single financial target that we publicly stated since 2011. I don't know how many other companies can say that. And I believe that barring some very bad macroeconomic environment that prior tradition of meeting or exceeding our financial targets will continue.

Okay. Thank you again for the time. Bradley S. Jacobs - Chairman & Chief Executive Officer: Thank you. Operator, anymore questions?

No, we have no further questions at this time. Bradley S. Jacobs - Chairman & Chief Executive Officer: Thank you very much. Well, I want to appreciate your interest in the company and following us and supporting us. Look forward to talking to you in about 90 days. Bye-bye now. Have a good day.

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.