Proficient Auto Logistics provided an update on its expected operating and financial metrics for Q3 of fiscal 2024. As mentioned in the company’s Q2 earnings call in August, unit volumes slowed in June and continued into July, impacted by events like seasonal plant closures and cautious outlooks from OEM customers regarding the second half of 2024.
Unit volumes remained weak throughout Q3, with an estimated change of flat to a 1% decline compared to Q3 2023. The decrease in dedicated fleet, brokerage, and spot buy opportunities—usually commanding premium pricing—led to an estimated $90-92 million in revenue, a drop of 14-16% year-over-year. The company expects significantly lower net income for Q3 2024 compared to Q2, due to reduced revenue and operating leverage.
Macroeconomic factors, such as a 1.9% drop in vehicle SAAR (Seasonally Adjusted Annual Sales Rate) for Q3 2024, have contributed to weaker sales, with consumers hesitating amid job market uncertainties and anticipated interest rate cuts.
Despite these challenges, the company remains on track with its long-term goals, including post-acquisition integration and competitive positioning in the auto-hauling industry. The recent acquisition of Auto Transport Group, LC, and increased market share indicate continued progress. The brief east coast longshoremen strike is expected to have only a minor impact.
Final Q3 results will be shared in early November. These preliminary estimates are subject to change as the company completes its financial closing procedures. The results have not been audited or reviewed.
Conference Call
The company will hold a conference call on November 8, 2024, at 9:00 a.m. EST to discuss final Q3 results. Investors can register for the call here and listen to the webcast here.
