Good morning, and welcome to Titanium Transportation Group's Q1 2024 conference call. On today's call, we have Ted Daniel, President and Chief Executive Officer, Alex Fu, Chief Financial Officer, and Marilyn Daniel, Chief Operating Officer. Before we can begin, I would like to remind everyone that certain statements made on this call today may be forward-looking. In that regard, please refer to the risk factors and cautionary provisions outlined in the press release issued by the company yesterday, as well as the filings made by Titanium on SEDAR. Please note that this call is being recorded Tuesday, May 14, 2024. A replay of this call will be made available until midnight on May 28, 2024. The details of the replay can be found on Titanium's website under the investors section. I would now like to turn the call over to Titanium's President and CEO, Ted Daniel. Please go ahead, sir. Good morning. Thank you, operator, and thank you all for joining us. During the first quarter of 2024, unfavorable market conditions persisted within the transportation logistics industry. Muted economic activity, overcapacity, inflationary input costs, geopolitical and market uncertainties continued to impact freight demand and volume. I'm pleased to share that our team was able to successfully navigate through these disruptive industry conditions and deliver another profitable quarter. In the first quarter of 2024, we generated CAD 115 million in revenue, an 8.3% increase over Q1 of 2023, and CAD 9.5 million in consolidated EBITDA. As outlined on our previous conference call, we had anticipated these market conditions, and our diversified business model positioned us well to steer through them. Once again, these results reiterate Titanium's proven ability to deliver consistent results through an unrelenting focus on operational excellence, prudent capital allocation, and a strategic model of almost equal asset and asset-light business segments. Turning to our segmented results. Our trucking business continued to drive growth. We delivered revenue of CAD 59.6 million in Q1, 2024, a 15.5% increase year-over-year. EBITDA margin came in at 12.6%, a decline from Q1, 2023. As I mentioned previously, this 570 basis point decline in EBITDA was mainly due to the segment absorbing the majority of integration costs from the acquisition of Crane, as well as soft economic conditions. We expect to see growth in the second half of the year. The current freight environment continued to exert downward pressures on the logistics segment of our business. Despite these unfavorable conditions, logistics generated revenue of CAD 56.2 million, flat compared to Q1 of 2023, with EBITDA coming in at CAD 3.1 million in Q1 2024. EBITDA margins for logistics during the quarter were 5.5% in Q1 of 2024, compared to 9.3% in Q1 of 2023, a 320 basis point decrease. I would like to highlight that even with continued pricing pressure during the first three months of the year, our team was able to grow volumes organically across both our segments. Truck transportation saw an increase in volume of 23%, mainly attributable to the acquisition, which offset losses in volume due to strategic pricing decisions. On the logistics side, volumes increased approximately 28% year-over-year. Our growth, notwithstanding economic challenges, is not only a testament to the strength of our technology and people, but it's a reminder that we're uniquely positioned to take advantage of an eventual market improvement with the foundations we have built over the years, regardless of economic conditions. Speaking of foundational platforms, Titanium's commitment to scale our business in the U.S. market will be the major driver for our next stage of growth. As of January 1, 2024, we started to see the benefits of our acquisition of Crane, as their operations were migrated onto the Titanium technology and financial platform. This directly contributed to significant growth within our truck transportation segment. As discussed, we anticipate a temporary adverse effect on margins during this period of integration, which was experienced during Q1. Looking ahead, we expect Crane to be a core asset in our business and enable customers to access our comprehensive freight management offering, driving growth in Titanium's U.S.-based logistics business. In addition to capitalizing on the benefits of our Crane acquisition this quarter, we have directed considerable focus to identifying innovative solutions to achieve profitability within this environment. As we evaluated pricing concessions requests from our customers, we opted to remain committed to responsible rates to operate in this environment, which resulted in the loss of unprofitable volume. Furthermore, through advanced data analytics, we purposefully allocated capacity to sustainable or flexible markets.Overall, Titanium's steadfast commitment to deliver sustainable and profitable growth is the driving force behind every action we took during the quarter and continues to be our top priority as we navigate this market. Despite the current economic challenges, we remain focused on strengthening our foundation of people and technology, all while enhancing our capital position. We're also committed to operating responsibly, whether through sustainable contractual pricing or our unyielding fleet safety standards. Our capital allocation strategy prioritizes debt reduction while maintaining dividend payments and opportunistic buybacks via our NCIB. Our continued focus remains on scaling for future growth and generating long-term value for our shareholders. With a refreshed fleet and reduced capital expenditures, we expect to generate substantial free cash flow over the next 18-24 months. We strongly believe, as we always have, that a prudent capital management strategy, coupled with good governance, is a backbone to current and future long-term sustainable growth and profitability. Due to significant pricing pressures from ongoing adverse economic factors, we're revising our 2024 full year revenue guidance. New range is CAD 470 million-CAD 490 million, and our EBITDA margin target percentage has remained the same. Despite market conditions with the acquisition of Crane, as well as our developing freight brokerage offices, we remain resolute in preparing Titanium for future growth. We also anticipate the addition of at least one more brokerage office this year. With that, I'll turn it over to Alex for a more detailed discussion of our financial results for Q1. Alex, take it away. Thanks, Ted. In the first quarter of 2024, on a consolidated basis, Titanium generated revenue of CAD 115 million, compared to CAD 106 million in Q1 2023, an 8.3% increase. We delivered EBITDA of CAD 9.5 million, with EBITDA margin of 8.2%. Diving deeper into segment performances, the truck transportation segment saw revenue of CAD 59.6 million, an increase of 15.5% over Q1 of 2023, and EBITDA of CAD 7.5 million, with an EBITDA margin of 12.6%. As Ted mentioned, it is important to note that these results include the segment having absorbed a significant portion of continued integration costs resulting from the acquisition of Crane. We expect this to last for the next few quarters. The logistics segment generated revenue of CAD 56.2 million, compared to the same period last year. EBITDA was CAD 3.1 million, compared to the CAD 4.6 million in Q1 2023, with an EBITDA margin of 5.5%. During the quarter, we took meaningful steps to identify redundant assets in our portfolio. These measures include the sale of about 21 acres of unused raw land in Cornwall, which closed earlier this month. This aligns with our capital allocation strategy, reinforcing our commitment to strengthen our balance sheet, rapidly paying down debt, and improving our overall capital position. Given the strength of our business and our confidence in the earnings outlook, we maintain our dividend, declaring a dividend of CAD 0.02 per common share. To conclude, I would like to highlight that we have a strong balance sheet, which will continue, as always, to be our focus as we navigate these economic headwinds. I would now like to turn the call back over to Ted. Thank you, Alex. Despite industry-wide challenges, Titanium delivered a profitable first quarter. While we anticipate continued macroeconomic uncertainty for the first half of 2024, our expectation is that the market will improve toward the latter part of the year, with reductions in capacity of the freight market, enabling additional organic growth and shareholder value. Navigating this environment has been difficult, but we have demonstrated that we have the right management team in place to execute our growth plan and take advantage of end market weakness. For the remainder of the year, we'll remain focused on continuing to grow and diversify our customer base, leveraging the strength of our U.S.-based footprint, utilizing technology to spec strategically allocate capacity, and continuing to deliver sustainable and profitable growth. With that, I'll turn it over to the operator to open the line for Q&A. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the one on your touch tone phone. You will hear a three-tone prompt acknowledging your request, and your questions will be pulled in the order they are received. Should you wish to decline from the polling process, please press star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from Yuri Zoreda with Canaccord Genuity. Your line is now open. Good morning, and thank you for taking my questions. Good morning, Yuri. Good morning. So first, just on logistics, I think you called out some potential margin compression in the last call, but I was a bit surprised by the magnitude compared to past quarters and given where spot freight rates are. So I was just wondering if you could provide any more color on the drivers, on any other specifics behind that margin weakness. Okay. So I'm glad you asked that. Let's start a couple things, right? We're gonna start with the fact that, there's a lot of pressure on pricing, a lot of competition out there right now. The pricing pressure is significant. And there's, in a way, there's more pricing pressure than there is at this point in time. And, you know, there's less movement at the carrier level. So there is a little bit of margin compression, number one. Number two, we're also dealing with the fact that there is an element of fixed costs in a brokerage formula. You know, we do a really great job balancing fixed and variable, but there is an element of that. And the other thing is that we're actually still in growth mode. So albeit we're profitable, it's a little compressed, but what's really. In a way, I'm kind of glad you asked this, because I'm actually excited to answer this question, because we're in growth mode in logistics. So we are in the process of adding, actually, not reducing certain headcounts in particular. And those are headcounts that are involved in increasing volume, increasing growth, building out new for additional offices this year. So we're actually a bigger broker today. In fact, we're a bigger company today than we were a year ago. Our brokerage has grown by over 22% in volume, year-over-year. That's incredibly exciting, and as soon as things turn, that's gonna explode. Okay. Yeah, thank you. That's quite helpful, actually. And then, I think just shifting gears a little bit, I'd just like to ask about the overall dynamics that you're seeing so far in Q2 compared to Q1. Of course, you mentioned pressure, but just wanna know how that's playing out, and also on the pace of the sequential margin improvement that you expect to see, given that you kept the margin guidance unchanged. So how do you see that playing out throughout the rest of the year? Sorry, just I'm trying to clarify the question here. If you don't mind, you're talking about the economic pressures of the pricing environment that we're currently in? I'm talking about the dynamics in general in Q2, compared to Q1. Okay. Like, sequentially, volumes, pricing, do you see producing the same types of pressure? And then, what does that sort of imply, given the unchanged margin guidance for Q2 and the second half of the year? So, morning, Yuri, it's Alex. So obviously, with the with our EBITDA margin unchanged, we do expect a EBITDA improvement over time. Q2 remains a little soft. It's comparable to Q1. It's a little better than Q1. However, our volumes, like Ted said, continues to be strong. We are, we are expecting that in later half in the year, that the margin will climb, so that we will be within the 10%-12% range. That is our expectation going on forward. If it's a Q3 or Q4 recovery, at this point, it's difficult to tell. I'll just add a little bit to that. In terms of our second half expectations of the year, we expect to continue to see capacity exiting the marketplace. We consider, we know that will have an effect on the current pricing market. We are hearing from our customers who have also been down in volumes, that they expect to see increased productivity in the second half of the year as well. So we're sort of aligned with that, and we've been very cautiously watching our customer volumes as we go through that. But there is a little bit of a shift already in terms of telltales for the second half of the year, in a positive way. Okay. Thank you. Thank you, everyone. That's helpful. I'll turn it over. Thank you. Thanks, Yuri. Your next question comes from Benoit Poirier with Desjardins. Your line is now open. Yeah. Good morning, everyone. Good morning, Benoit. Yeah. Just on the contract rate front, are you seeing competitors being more aggressive than expected and undercutting the market? When would you expect contractual rates to increase, or maybe it's more a 2025 story? I mean, nobody has a complete crystal ball, but I think we have, we have seen some of that neutralized a little bit already. I think some of the, we'll call it, hypercompetitive undercutting of rates, seems to have softened just a little bit, and part of that is, again, because a lot of the carriers have hit bottom, and the exits are starting, we'll call it a bit of a purge, is already underway. I don't think it's as far out as 2025. 2025 will be a continuation of the same story in terms of a realignment of shipper and freight markets, et cetera, with their carriers. But in terms of pricing in the current RFQ marketplace, it is neutralizing a little bit already. Okay, that's great. When we look at the integration of Crane last quarter, you mentioned that it was to continue until the end of the second quarter, 2024. We didn't see any mention at the MD&A. Any update on the integration of Crane? So the integration of Crane is still ongoing. We didn't specifically mention the margin compression or how much of that quantify it, because it is now in the second phase of the integration, where we are done the physical part. We're into the culture and optimizing the lanes and routes. So that takes time, and the cost is a little more harder to separate. But we are seeing that margin compression. Of course, the market as well doesn't help during this time, but we are expecting it to finish second or third quarter this year. We are expecting that this will be a huge benefit to Titanium once it's completed, especially when the market conditions improve. We are very excited that Crane is now within our portfolio, and I'll pass it off to Marilyn for- I'll say that we are on track as expected to our plans. As Alex mentioned, our integration physically was completed at the beginning of this year, 2024, and we're in that optimization phase. We have now had the opportunity to get in front of a lot of new customer base in the United States, adding our names to RFQs and business opportunities that we expect to see a rate of return on, hopefully, by the second half of this year and certainly into the future beyond that. Remembering that Crane was a large door opener for us into the U.S. marketplace, both on the asset and on the brokerage side, for exposure and leverage to some of our current accounts, some of the accounts we acquired through Crane, and now new opportunities that we're getting into that was a barrier for entry for us without having the assets in the U.S. So we're very excited to see where Crane moves along, and it's completely on schedule for where we, for what we had set it up for. Ok. Hi Benoit. In your. Oh, sorry, Alex. No, it's okay. I was just gonna say it's purely a strategic acquisition, right? In terms of the fact that we're gonna be cross-selling and that, you know, there's gonna be holistic offerings that are going to augment significantly, you know, just, you know, the purchase itself. Okay. That's great. And last one for me. In your MD&A, you mentioned committing to CAD 8 million in CapEx towards the purchase of 100 trailers. You did about this figure in Q1, so does it mean that you're mostly done for the year? And also wondering if you have any other underutilized assets you could monetize. Well, as we continue forward, we are going to continue to evaluate underutilized or redundant assets in our portfolio. I can't say that we will or will not divest of any of them going forward. One of the things that we are looking at, for example, is our trailer pool. As we refresh them, we're also looking for older excess age redundant assets. Onto our CapEx, we are substantially completed in Q2. We have completed our refreshment cycle, so there are some CapEx in Q2, but going forward, there will that would be it. We're not expecting any additional capital expenditure unless the market requires us to. Perfect. Thank you very much for the time. Thank you. Thank you. Welcome. Your next question comes from Steve Hansen with Raymond James. Your line is now open. Morning, Steve. Oh, yes, good morning. Good Good morning, guys. Perhaps a naive question, so I apologize, but I just wanted to ask a bit more about the pace of the Crane acquisition and integration, particularly in the context of the softer backdrop. I have to imagine that on the one hand, perhaps it highlights some of the cost redundancies a little more easily with the softer backdrop, but then at the same time, it might also make it harder to generate the revenue synergies on the other side. So I just wanted to understand that dynamic a little bit and how you're thinking about it from. I think you referenced already, the physical side has already been done. Now you're moving on to the more intangible stuff, but maybe just a bit more context around how, you know, you see that in the integration in the context of the softer market. Thanks. Yeah. So it's actually a very good point, and I appreciate you phrasing it that way. It is always easier to integrate a company when you've got tailwinds. And in this particular case, we're integrating, and we're dealing with you know, a situation where you've got headwinds, and that's one of the challenges. So one, you're looking at optimizing now, you're looking at you know, making a company more efficient, but you're doing it at the same time as you've got headwinds throughout an integration process. So that is definitely more challenging. However, again, having said that, you know, we've got really good navigation systems. We have great technology, so. You know, one of the things that we're able to do is we're able to move them over our platform, you know, do the analytics, you know, use our boards, use our navigation tools, and, you know, work through the circumstances. And as well, not just the tech, but put the tech and the right people in place, so that as soon as there's an inflection, you know, we're able to take advantage of the opportunities. Again, for us, you know, we offer a more holistic type of product. It is both asset heavy and asset light, so we're able to package that up, and then that's kind of what we're moving that environment to. So it's not just, you know, trucking terminal in Georgia. It's, you know, essentially having both the ability to leverage our assets and our non-asset-based business, you know, throughout essentially the Eastern Seaboard and the rest of the United States. And that's kind of, you know, the way we're navigating through this, this cyclical component or cyclical time, you know, given the timing of the acquisition, right? That's super helpful. And just to go back to one of the comments earlier about capacity starting to purge or get vacated from the system. I mean, are you seeing that in any specific market that you're covering and from a geographic standpoint or customer-end market? I'm trying to get a sense for whether it's equally spread, that purge, or if it's isolated to some pockets versus others, or how you see it across your territory mix. So, it's from what I can see so far, what we can see so far, it's not necessarily geographical, nor is it product line driven. It seems to be rather general across the board. As you know, when COVID was a thing, there was a huge amount of entrants into the marketplace, both in Canada and the United States. If you could buy a truck, you were in trucking. And then that is, that the sophistication required to operate a transportation company is now coming to fruition and reality for most of these carriers, so we're seeing that across the board. I don't think I'm seeing anything specific to reefer, flatbed or heat services, et cetera. It seems to be rather generalized. I would say the provinces and states that it's most expensive to operate in, so your Northeastern United States and your Ontario, Quebec, part of Canada, where we focus in, seems to be a little bit more harder hit, largely because it's a little more expensive to operate. That's very helpful. Thanks, guys. Appreciate the call. Bye. Thank you. Your next question comes from David Ocampo with Cormark. Your line is now open. Thanks. Good morning, everyone. Good morning, David. Morning. Kind of when I look at your margin guidance, I mean, 10%-12%, you guys kept it despite the softness—the weakness that we saw in the quarter. I guess I'm curious, what do we need to see in the marketplace today for Titanium to come closer to that 12% margin? And I guess on the more negative end, what needs to happen to see, you know, that 10% print? It's really a number of factors. Well, I mean, Q1, to some degree, was actually really, really low. January, February are really tough months, and I think that, you know, most carriers have identified the fact that January and February are really tough in terms of weather. There are a lot of issues in the Northeast. We lost a lot of billing days. So I think they were exceptionally difficult months, as well with the headwinds and the pricing. So I think it's kind of a combination. One, we're actually seeing growth in volume, which is a good thing, for us in particular. Two, I do believe that at this point in time, I just don't see how carriers in our brokerage environments how they can run for any less than what they're running. As we continue to see capacity exit the market, I believe that we're gonna start to see a little bit of a shift in, again, in call it the, you know, sort of the balance of the negotiations. There will come a time where it's not gonna be a race to the bottom on the RFQs and, you know, and it's gonna become a more balanced environment. I don't think anyone is looking necessarily for another COVID, you know, circumstance where, you know, carriers are making prices up literally. They're basically asking for double, triple. That's, that's unrealistic, and I don't think that's stable either. That's what caused this overcapacity that's so extreme, and obviously, the tabloids are saying that this is a longer recession now in trucking than the, the length of COVID. So having said that, I don't love the volatility either. I prefer a more stable market. So once we see, I believe, at least some capacity exit the market, we'll see a more balanced pricing environment where, you know, you've got at least some, some reasonable kind of tension in the negotiations, where, but where sides are balanced and, and people can make money, right? So that's kinda how I'm seeing it play out. Okay, and then maybe a bigger picture question. Sure. I mean, when I look at your EBIT margin for logistics, it's been consistently higher than your asset-heavy truck transportation business. That typically isn't the case for some of your peers, whether it's in the U.S. or even in Canada. So I guess I'm wondering, is there significant opportunity in your truck transportation business to really ramp up the margin profile once market conditions normalize? Like, can you get that EBIT margin to at least equalize over the long term? So our EBIT margin, it's difficult to compare our peers in Canada or in some of the United States ones, because we carry different lines, even though it's all going on a truck, we do different lines of business. So, I don't think it's comparable within the business. Even within the truckload, they have different business lines. So our EBIT margin we obviously continue to use our tech and our focus for our ops team is to bring efficiency to our operating environment, so we definitely look to improve on that EBIT margin. At the same time, it's difficult to say to compare apples to apples when you're saying that our EBIT margin and trucking sector, does that compare to our Canadian peers? Because it's difficult to see what exactly are the product lines they carry in the- There aren't a lot of comparables in Canada either, right? I mean, it's various product lines, right? You know, you don't know the age of the equipment. You know, you don't know the exact margin profile, what's above the line, below the line, et cetera, right? So for us, we're quite purified truckload. We're mostly van. We've got some flatbed. That is the majority of our Truck Transportation. That's the same as Crane, very similar businesses. We've got a lot of experience in that. Margin definitely has to go up in trucking. You know, Logistics is more of a variable cost business, and trucking is a fixed cost business. It's real estate on wheels. When you got a fixed cost business, you got this kind of pricing headwinds, you know, your EBITDA and your margin profile is gonna, it's gonna take a beating. And you know, I think that it's just a matter of getting to, you know, getting to a point where we can see some improvements in the pricing environment. It doesn't mean that, you know, you're sitting back, obviously. You know, we certainly, you know, had to make some decisions in the last little while. I think it's important that you run your business, right? Sometimes you got to make some of the tough choices, and if that's, you know, if that's the case, then you got to do what you got to do. But other than that, you know what? Once things, you know, normalize, then, you know, we'll be able to see an improvement to our margins. Yeah, I guess maybe not even just a comparison to your some of the peers, just given the different dynamics on what you guys are hauling, but just a comparison between your trucks transportation business and logistics. I mean, the margin difference is quite large, and as you pointed out, the truck transportation business requires a ton of capital, whether it's real estate or the trucks and trailers. So do you think those the two margin profiles should eventually become more, a little bit more apparent, like truck transportation outstripping logistics? Well, trucking is always gonna need more EBITDA just because it's got the depreciation, whereas logistics really doesn't. It's almost asset zero. Never mind, asset light. You know, the assets in logistics are, I would say, intangible, right? You know, we've got our technology, we've got our people, so it's a whole different environment. You know, one is, again, variable costs, and one requires a much higher EBITDA to compensate for really your capital allocation of trucks and trailers. And, you know, if you've got newer trucks, you know what? Then you've got less R&M, you got more fuel efficiency, and so you've got In all honesty, you've got more, let's face it, you've got more costs below the line as opposed to above the line. If you've got older trucks, you know what? You're not gonna have as much fuel efficiency, and so you've got more fuel costs above the line, and you're gonna have as well a lot more repairs and maintenance above the line and so on. And as well, you know, generally speaking, you're gonna have more trucks in the shop, so you're gonna have lower utilization. So that's a whole different environment. So yeah, so we require a much higher margin profile in trucking in the long run than the brokerage environment, where, you know, EBITDA is EBT, right? I know Alex wanted to jump in on that as well, so. Well, we another thing that we want to highlight is that with, yes, you're right, the, the EBIT margin, logistics is better than trucking now and even, during normalized times, but that's also why our strategic move is to grow our U.S. brokerage business, because we do recognize that part. Not to say that we're not going to grow the trucking segment, but our focus on the organic growth is on our logistics side, and that there is a, there is a clear strategic reason why. Yeah, I mean, our brokerage grew organically by 22% over last year, which is phenomenal. And but don't forget, we're also eating right now the costs of integrating a, you know, a fairly sizable acquisition during a headwinds environment. So we know as soon as, you know, things improve, that all this is gonna, you know, excuse the pun, but it's gonna pay off in dividends. Right? Yeah. Yeah, and it does make sense to continue to expand the logistics business since it doesn't require a whole lot of capital. Yeah. And then just last one for me, Alex. Can you provide the EBITDA contribution from Crane? I know you guys provide the top line, but wondering if you can strip out the EBITDA contribution. EBITDA contribution for Crane for the quarter was one, about CAD 1.5 million. Okay, perfect. Thank you so much. Ladies and gentlemen, as a reminder, should you have a question, please press star followed by the one. Your next question comes from Gianluca Tucci with Haywood. Your line is now open. Hi, good morning, guys. Morning, Gianluca. Morning. You're showing great organic volume growth on your brokerage side. You mentioned at least one more office this year, I think you said, Ted, can you give us any color on your prospective locations that you're exploring, expanding to? I can't give you the exact state, but we're hoping that we're gonna have one and possibly even a second office by the end of the year. One will be further north, one will be further south, if that helps. As you can see, we are organically growing our brokerage. I like to say there are times where offense is your best defense, and that's exactly what we're doing. You know, we're just pounding away at, you know, putting more balls in the net, you know, and that's exactly the strategy we're taking. That's great. Also to add. Sorry, just to put on there, we're basing those decisions on our growth by our increased volumes. So though you're not seeing it on the top line of our margins just yet, but our volume has really become even more diversified and dynamic and some big differences. So we're ready to keep pushing forward with our expansions into the United States and our brokerage offices, and to sort of rebalance our our weight between asset light and asset heavy of our overall business. Yeah, not to give the wrong impression, we're not looking to shrink our assets. We're looking to grow brokerage even faster so that the two work hand in hand. So assets will remain where they are for the time being, and we're gonna grow brokerage exponentially beyond that. That's great. And like, you know, like, what needs to happen for the company to explore an entrance into the West Coast of the U.S.? Like, like, you know, your- Mm-hmm. brokerage office is predominantly on the East Coast, on Freight Alley. Yeah. But like, like, you know, how are you thinking about the West Coast or even, like, you know, the Midwest, the U.S. in terms of expansion plans? It all becomes the who. So as we move forward in the expansion the who and where we wanna be, kind of goes hand in hand. Let's not forget that 80% of the population of the United States is not- Yeah on the West Coast. So- They're east of the Mississippi. there's an obvious that way. I mean, we have our Denver location, so that is definitely remained a good piece of exposure for us. But I think as we move forward, we sort of focus on where our current customer base takes us, as well as our human capital. Okay. Perfect color. Thank you. Just on the balance sheet, great work paying down debt in Q1. Could you provide, or like, what are you targeting for your annual debt reduction this year at this point? And, could you give us a targeted debt to EBITDA ratio that you're aiming at exiting at this year? All right. Well, Alex is salivating to answer this question. So I'm gonna let him take this one, you know? Well, we're still aiming to pay down debt of about CAD 40 million in the year. We did a lot of there's a lot of action in the start of the year for us to pay down debt, and we had voluntary payments as well as divesting some redundant assets to reduce our debt level. So we've done a lot this first quarter, but not to say we're not doing anything else in the year, but our target is CAD 40 million. If we end up taking action again and removing more redundant assets, then we may accelerate that. But again, our stretch target is CAD 40 million for the year, about CAD 40 million for the year. And then in terms. Sorry, what was the second part of the question again? Your targeted debt to EBITDA ratio exiting the year? Yeah. We're hoping that we can bring it down to about 2.2-2. That's our target, and in the current environment, debt to EBITDA is a little bit of a moving target, so it's harder to- Right to tell if we can get there. But, with our expected EBITDA from our, from our, outlook, we're pretty confident that we can get down to that level. We'll be close to two-to-one on that, actually. We should, because let's face it, one's a numerator, one's a denominator. As much as we're pounding away at debt, if EBITDA goes down- Yeah. which it's not gonna go down in the second half of the year for sure, but, but obviously with Q1 being a little bit of an anomaly, even though we paid down debt, which is great, EBITDA went down, it wasn't a great quarter, right? So, you know, your EBITDA is down, so both numerator and denominator went down, and that's why, you know, EBITDA to debt more or less pretty much stayed the same quarter- over- quarter. Right. Right. That's good color. Appreciate that. And then just lastly, from our end here, with all the noise in the rails these days, Ted and Marilyn, how are you positioning to benefit from a potential rail strike later this month? We're not sure if there's gonna be one or not. If there's gonna be one, we are, we are prepared for it. We have, we have partnered with a lot of our customers in terms of putting contingency programs in place for our customer base that relies on rail. It's a good thing for the trucking industry when there's a rail strike. I'll say mildly. You know, whether it will come to fruition or not, we're not sure at this point. There seems to be some talk now that there may not be a rail strike. So we stay, we stay tuned on what's going on there, and we are definitely prepared to take advantage of that situation as it, as it arises, if it arises. Okay. Thanks, guys, and talk soon. Thank you. Thank you. Appreciate it. Thank you. There are no further questions at this time. I will now turn the call over to Ted Daniel for closing remarks. Thank you, operator, and thank you all for joining us today. We appreciate your interest in our company. I look forward to providing an update on our progress and all of our priorities discussed today when we report our Q2 2024 results in August. If there are any further questions, please feel free to contact us. Thank you again for joining us on the call today. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.