ArcBest Announces Fourth Quarter 2022 and Record-Setting Full Year 2022 Results

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Advancing Strategic Initiatives to Better Serve Customers,
Drive Efficiencies and Enhance Value

Celebrates 100 Years of Delivering Cutting-Edge Supply Chain
and Logistics Solutions to Customers Worldwide 
 

  • Delivered fourth quarter 2022 net income of $37.3 million, or $1.48 per diluted share, with non-GAAP fourth quarter 2022 net income of $61.6 million, or $2.45 per diluted share.
  • Generated full year 2022 net income of $298.2 million, or $11.69 per diluted share. On a non-GAAP basis, full year 2022 net income was $348.4 million, or $13.66 per diluted share.
  • Achieved a second consecutive year of record-setting annual revenue and net income.
  • Returned $76 million to shareholders through stock repurchase program and dividends paid.
  • Continued strong results will enable ABF Freight to pay a profit-sharing bonus to qualifying union-represented employees for the fourth year in a row.


FORT SMITH, Arkansas, February 3, 2023 — ArcBest® (Nasdaq: ARCB), a leader in supply chain logistics, today reported fourth quarter 2022 revenue of $1.2 billion, reflecting an increase of $59.0 million compared to fourth quarter 2021. Fourth quarter 2022 results include the impact of a full quarter of the operations of MoLo Solutions, LLC (“MoLo”), for which the acquisition closed on November 1, 2021.

ArcBest’s fourth quarter 2022 operating income was $51.2 million and net income was $37.3 million, or $1.48 per diluted share, compared to fourth quarter 2021 operating income of $86.9 million and net income of $65.5 million, or $2.47 per diluted share.   

Excluding certain items in both periods as identified in the attached reconciliation tables, fourth quarter 2022 non-GAAP operating income was $82.7 million, compared to $102.2 million in the prior-year period. On a non-GAAP basis, net income was $61.6 million, or $2.45 per diluted share, in fourth quarter 2022 compared to $73.9 million, or $2.79 per diluted share, in fourth quarter 2021.

ArcBest’s full year 2022 revenue totaled a record $5.3 billion compared to $4.0 billion in 2021. Net income was $298.2 million, or $11.69 per diluted share, compared to net income of $213.5 million, or $7.98 per diluted share in 2021. On a non-GAAP basis, ArcBest’s 2022 net income was $348.4 million, or $13.66 per diluted share, compared to net income of $228.0 million, or $8.52 per diluted share, in 2021.

“I am pleased to report that ArcBest exceeded $5 billion in annual revenue for the first time and delivered the highest annual earnings per share in company history,” said Judy R. McReynolds, ArcBest chairman, president and CEO. “Our fourth quarter and record-breaking full-year 2022 results are directly related to our relentless pursuit of excellence.  Despite the challenges in 2022 as a result of ongoing macro trends, the ArcBest team remained focused on serving our customers and advancing our strategic initiatives. We see tremendous opportunity ahead as we celebrate our 100th anniversary in 2023 – an impressive milestone that would not be possible without our dedicated people, who are at the heart of our success.  Looking forward, we are confident that our continued investments in ArcBest’s people, our unrivaled network of integrated logistics solutions and innovative mindset will drive continued growth, greater efficiency and value creation for generations to come.” 

Fourth Quarter Results of Operations Comparisons

Asset-Based

Fourth Quarter 2022 Versus Fourth Quarter 2021

  • Revenue of $711.4 million compared to $683.5 million, a per-day increase of 4.9 percent.
  • Total tonnage per day decrease of 5.5 percent, including a decrease of 1.6 percent in LTL-rated weight per shipment.
  • Total shipments per day increase of 0.8 percent.
  • Total billed revenue per hundredweight increased 9.3 percent and was positively impacted by higher fuel surcharges. Revenue per hundredweight on LTL-rated business, excluding fuel surcharge, improved by a percentage in the low single digits.
  • Operating income of $75.1 million compared to $83.1 million. On a non-GAAP basis, operating income of $81.4 million compared to $89.5 million.
     

Monthly business levels in ArcBest’s Asset-Based business slowed throughout the fourth quarter, resulting in moderate year-over-year revenue growth associated with flat, total daily shipments combined with a decrease in total freight tonnage and an increase in price.  Market conditions and diminished customer demand contributed to a decrease in the size of shipments moving through the Asset-Based network.  Total Asset-Based freight trends were weaker in the quarter.  However, year-over-year revenue and operating statistics on LTL-rated shipments were better than those of Truckload-rated spot shipments, including household goods U-Pack moves, whose demand was impacted by current market conditions and revenue optimization actions.   

Fourth quarter pricing levels were solid and followed historic LTL price increases in previous quarters.  ArcBest’s focus on maximizing yield management opportunities continues.  During the current period of reduced business levels, ArcBest is focused on effectively managing personnel, equipment and other network resources to provide superior customer service, while controlling costs and working to improve profit margins.  Optimization initiatives in the Asset-Based network are positively contributing to efficiency improvements and reduced costs.          

As a result of the operating ratio achieved in 2022, ABF Freight will pay a 3% profit-sharing bonus to qualifying union-represented employees – the maximum amount provided in its collective bargaining agreement.

“Our integrated solutions are a differentiator for us and the team at ABF Freight is a key part of that. It’s because of their efforts that we’re able to pay a profit-sharing bonus for the fourth year in a row, and at the highest level,” added McReynolds.

Asset-Light

Fourth Quarter 2022 Versus Fourth Quarter 2021 (including the results of MoLo beginning November 1, 2021)

  • Revenue of $572.4 million compared to $541.2 million, a per-day increase of 6.6 percent.
  • Operating loss of $9.6 million, including a charge of $17.5 million associated with the increase in fair value of the contingent earnout consideration recorded for the November 1, 2021 MoLo acquisition, compared to operating income of $13.9 million. On a non‑GAAP basis, operating income of $11.1 million compared to $16.4 million.
  • Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) of $13.4 million compared to $18.6 million, as detailed in the attached non-GAAP reconciliation tables.
     

In the ArcBest Asset-Light segment, following growth earlier in the year, total revenue levels during the recent quarter were comparable to the previous year period.  Fourth quarter 2022 benefited from a full quarter of operations of MoLo; however, revenue levels versus the prior year quarter were impacted by a slowdown in customer shipping volumes, softness in market rates and changes in business mix, including fewer expedite and international shipments.  Daily fourth quarter Asset-Light truckload shipments, compared to the recent third quarter, increased by a percentage in the high-single digits.  Enhanced truckload capabilities as a result of the MoLo acquisition are an essential part of the creative logistics solutions ArcBest is delivering to customers during a more challenging economic environment.  In addition, year-over-year growth in managed transportation services was a positive contributor to quarterly revenue totals.  Fourth quarter operating margins were pressured as sequential revenue levels decreased as a result of weakening market conditions and three fewer workdays versus third quarter 2022, while operating expenses, excluding purchased transportation and the increase in fair value of contingent earnout consideration related to the MoLo acquisition, were at similar levels to those in the recent third quarter.  Moving forward, ArcBest Asset-Light operating costs will be monitored and managed in response to customer demand and on-going market conditions.

Increased event volume combined with improved revenue per event contributed to higher quarterly revenue for the FleetNet segment and an increase in operating income over the prior year’s fourth quarter.

Full Year Results of Operations Comparisons

Asset-Based

Full Year 2022 Versus Full Year 2021

  • Revenue of $3.0 billion, compared to $2.6 billion, a per-day increase of 17.0 percent.
  • Tonnage per day increase of 1.6 percent.
  • Shipments per day increase of 1.5 percent.
  • Total billed revenue per hundredweight increase of 14.5 percent, positively impacted by higher fuel surcharges.
  • Operating income of $381.1 million compared to $260.7 million. On a non-GAAP basis, operating income of $409.6 million compared to $288.3 million.
  • Profit-sharing bonus to qualifying union-represented ABF Freight employees of approximately $16.2 million, an increase of approximately $1 million over the amount paid for 2021. 

Asset-Light

Full Year 2022 Versus Full Year 2021 (including the results of MoLo beginning November 1, 2021)

  • Revenue of $2.5 billion compared to $1.6 billion, a per-day increase of 59.7 percent.
  • Operating income of $58.6 million, including a charge of $18.3 million associated with the increase in fair value of the contingent earnout consideration recorded for the November 1, 2021 MoLo acquisition, compared to operating income of $50.9 million. On a non-GAAP basis, operating income of $89.7 million compared to $49.3 million.
  • Adjusted EBITDA of $99.1 million compared to $57.1 million.

Capital Expenditures

In 2022, total net capital expenditures, including equipment financed, equaled $211 million. Net capital expenditures in 2022 included $93 million of revenue equipment, the majority of which was for ArcBest’s Asset-Based operation. Revenue equipment purchases in 2022 were lower than the original estimate because of supply chain-related manufacturing delays and cancellations, primarily on new road tractors and trailers. Depreciation and amortization costs on property, plant and equipment were $127 million in 2022. 

Share Repurchase and Quarterly Dividend Programs

ArcBest generated solid cash from operations in 2022 and continued to return capital to shareholders through its share repurchase and dividend programs. In 2022, 822,106 ArcBest shares were purchased for $65 million. Currently, $26.5 million remains available under the authorized program for future common stock purchases. In April 2022, the ArcBest Board of Directors authorized a fifty percent increase in ArcBest’s quarterly cash dividend to twelve cents per share from the previous eight cents per share.

NOTE

 ‡ - The ArcBest and FleetNet reportable segments, combined, represent Asset-Light operations.

Conference Call

ArcBest will host a conference call with company executives to discuss the 2022 fourth quarter and full year 2022 results. The call will be today, Friday, February 3, at 9:30 a.m. EST (8:30 a.m. CST). Interested parties are invited to listen by calling (877) 231-8701 or by joining the webcast which can be found on ArcBest’s website at arcb.com. Slides to accompany this call are included in Exhibit 99.3 of the Form 8-K filed on February 3, 2023, will be posted and available to download on the company’s website prior to the scheduled conference time, and will be included in the webcast. Following the call, a recorded playback will be available through the end of the day on March 15, 2023. To listen to the playback, dial (800) 633‑8284 or (402) 977‑9140 (for international callers). The conference call ID for the playback is 22025410. The conference call and playback can also be accessed, through March 15, 2023, on ArcBest’s website at arcb.com.

About ArcBest

ArcBest® (Nasdaq: ARCB) is a multibillion-dollar integrated logistics company that helps keep the global supply chain moving. Founded in 1923 and now with over 15,000 employees across more than 250 campuses and service centers, the company is a logistics powerhouse, fueled by the simple notion of finding a way to get the job done. Through innovative thinking, agility and trust, ArcBest leverages its full suite of shipping and logistics solutions to meet customers’ critical needs, each and every day. For more information, visit arcb.com.

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: Certain statements and information in this press release concerning results for the three and twelve months ended December 31, 2022 may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding (i) our expectations about our intrinsic value or our prospects for growth and value creation and (ii) our financial outlook, position, strategies, goals, and expectations. Terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “foresee,” “intend,” “may,” “plan,” “predict,” “project,” “scheduled,” “should,” “would,” and similar expressions and the negatives of such terms are intended to identify forward-looking statements. These statements are based on management’s beliefs, assumptions, and expectations based on currently available information, are not guarantees of future performance, and involve certain risks and uncertainties (some of which are beyond our control). Although we believe that the expectations reflected in these forward-looking statements are reasonable as and when made, we cannot provide assurance that our expectations will prove to be correct. Actual outcomes and results could materially differ from what is expressed, implied, or forecasted in these statements due to a number of factors, including, but not limited to: the effects of widespread outbreak of an illness or disease, including the COVID-19 pandemic, or any other public health crisis, as well as regulatory measures implemented in response to such events; external events which may adversely affect us or the third parties who provide services for us, for which our business continuity plans may not adequately prepare us, including acts of war or terrorism or military conflicts; data breach, cybersecurity incidents, and/or failure of our information systems, including disruptions or failures of services essential to our operations or upon which our information technology platforms rely; interruption or failure of third-party software or information technology systems or licenses; untimely or ineffective development and implementation of, or failure to realize potential benefits associated with, new or enhanced technology or processes, including the pilot test program at ABF Freight and our investments in human-centered remote operation software; the loss or reduction of business from large customers; the ability to manage our cost structure, and the timing and performance of growth initiatives; the cost, integration, and performance of any recent or future acquisitions, including the acquisition of MoLo Solutions, LLC, and the inability to realize the anticipated benefits of the acquisition within the expected time period or at all; market fluctuations and interruptions affecting the price of our stock; maintaining our corporate reputation and intellectual property rights; nationwide or global disruption in the supply chain resulting in increased volatility in freight volumes; competitive initiatives and pricing pressures; increased prices for and decreased availability of new revenue equipment, decreases in value of used revenue equipment, and higher costs of equipment-related operating expenses such as maintenance, fuel, and related taxes; availability of fuel, the effect of volatility in fuel prices and the associated changes in fuel surcharges on securing increases in base freight rates, and the inability to collect fuel surcharges; relationships with employees, including unions, and our ability to attract, retain, and develop employees; unfavorable terms of, or the inability to reach agreement on, future collective bargaining agreements or a workforce stoppage by our employees covered under ABF Freight’s collective bargaining agreement; union employee wages and benefits, including changes in required contributions to multiemployer plans; availability and cost of reliable third-party services; our ability to secure independent owner operators and/or operational or regulatory issues related to our use of their services; litigation or claims asserted against us; governmental regulations; environmental laws and regulations, including emissions-control regulations; default on covenants of financing arrangements and the availability and terms of future financing arrangements; self-insurance claims and insurance premium costs; potential impairment of goodwill and intangible assets; general economic conditions and related shifts in market demand that impact the performance and needs of industries we serve and/or limit our customers’ access to adequate financial resources; increasing costs due to inflation and rising interest rates; seasonal fluctuations and adverse weather conditions; and other financial, operational, and legal risks and uncertainties detailed from time to time in ArcBest Corporation’s public filings with the Securities and Exchange Commission (the “SEC”).

For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events, or otherwise.

Financial Data and Operating Statistics

The following tables show financial data and operating statistics on ArcBest® and its reportable segments.

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

Year Ended 

 

 

 

December 31

 

December 31

 

 

    

2022

    

2021

    

2022

    

2021

 

 

 

(Unaudited)

 

 

 

($ thousands, except share and per share data)

 

REVENUES

 

$

 1,244,218

 

$

 1,185,224

 

$

 5,324,052

 

$

 3,980,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 1,192,984

 

 

 1,098,289

 

 

 4,924,783

 

 

 3,699,081

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

 51,234

 

 

 86,935

 

 

 399,269

 

 

 280,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (COSTS)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

 

 2,343

 

 

 238

 

 

 3,957

 

 

 1,275

 

Interest and other related financing costs

 

 

 (2,150)

 

 

 (2,130)

 

 

 (7,701)

 

 

 (8,904)

 

Other, net

 

 

 1,452

 

 

 1,156

 

 

 (2,370)

 

 

 3,797

 

 

 

 

 1,645

 

 

 (736)

 

 

 (6,114)

 

 

 (3,832)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

 52,879

 

 

 86,199

 

 

 393,155

 

 

 277,154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX PROVISION

 

 

 15,542

 

 

 20,711

 

 

 94,946

 

 

 63,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

 37,337

 

$

 65,488

 

$

 298,209

 

$

 213,521

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 1.53

 

$

 2.60

 

$

 12.13

 

$

 8.38

 

Diluted

 

$

 1.48

 

$

 2.47

 

$

 11.69

 

$

 7.98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 24,420,325

 

 

 25,211,666

 

 

 24,585,205

 

 

 25,471,939

 

Diluted

 

 

 25,146,664

 

 

 26,467,420

 

 

 25,504,508

 

 

 26,772,126

 

 

 

 

 

 

ARCBEST CORPORATION

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

December 31

 

December 31

 

 

    

2022

    

2021

 

 

 

(Unaudited)

 

Note

 

 

 

($ thousands, except share data)

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 158,372

 

$

 76,620

 

Short-term investments

 

 

 167,662

 

 

 48,339

 

Accounts receivable, less allowances (2022 - $14,172; 2021 - $13,226)

 

 

 580,515

 

 

 582,344

 

Other accounts receivable, less allowances (2022 - $713; 2021 - $690)

 

 

 11,867

 

 

 13,094

 

Prepaid expenses

 

 

 40,240

 

 

 40,104

 

Prepaid and refundable income taxes

 

 

 19,239

 

 

 9,654

 

Other

 

 

 11,888

 

 

 5,898

 

TOTAL CURRENT ASSETS

 

 

 989,783

 

 

 776,053

 

 

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT

 

 

 

 

 

 

 

Land and structures

 

 

 406,620

 

 

 350,694

 

Revenue equipment

 

 

 1,038,832

 

 

 980,283

 

Service, office, and other equipment

 

 

 302,891

 

 

 251,085

 

Software

 

 

 180,929

 

 

 175,989

 

Leasehold improvements

 

 

 23,466

 

 

 16,931

 

 

 

 

 1,952,738

 

 

 1,774,982

 

Less allowances for depreciation and amortization

 

 

 1,142,218

 

 

 1,079,061

 

 

 

 

 810,520

 

 

 695,921

 

 

 

 

 

 

 

 

 

GOODWILL

 

 

 305,382

 

 

 300,337

 

INTANGIBLE ASSETS, NET

 

 

 113,796

 

 

 126,580

 

OPERATING RIGHT-OF-USE ASSETS

 

 

 166,515

 

 

 106,686

 

DEFERRED INCOME TAXES

 

 

 6,342

 

 

 5,470

 

OTHER LONG-TERM ASSETS

 

 

 101,948

 

 

 101,629

 

TOTAL ASSETS

 

$

 2,494,286

 

$

 2,112,676

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Accounts payable

 

$

 317,541

 

$

 311,401

 

Income taxes payable

 

 

 16,630

 

 

 12,087

 

Accrued expenses

 

 

 341,822

 

 

 305,851

 

Current portion of long-term debt

 

 

 66,252

 

 

 50,615

 

Current portion of operating lease liabilities

 

 

 26,225

 

 

 22,740

 

TOTAL CURRENT LIABILITIES

 

 

 768,470

 

 

 702,694

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT, less current portion

 

 

 198,371

 

 

 174,917

 

OPERATING LEASE LIABILITIES, less current portion

 

 

 147,828

 

 

 88,835

 

POSTRETIREMENT LIABILITIES, less current portion

 

 

 12,196

 

 

 16,733

 

OTHER LONG-TERM LIABILITIES

 

 

 154,745

 

 

 135,537

 

DEFERRED INCOME TAXES

 

 

 61,275

 

 

 64,893

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Common stock, $0.01 par value, authorized 70,000,000 shares;
      issued 2022: 29,758,716 shares; 2021: 29,359,597 shares

 

 

 298

 

 

 294

 

Additional paid-in capital

 

 

 339,582

 

 

 318,033

 

Retained earnings

 

 

 1,088,693

 

 

 801,314

 

   Treasury stock, at cost, 2022: 5,529,383 shares; 2021: 4,492,514 shares

 

 

 (284,275)

 

 

 (194,273)

 

Accumulated other comprehensive income

 

 

 7,103

 

 

 3,699

 

TOTAL STOCKHOLDERS’ EQUITY

 

 

 1,151,401

 

 

 929,067

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

 2,494,286

 

$

 2,112,676

 

 

Note: The balance sheet at December 31, 2021 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

 

 

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

 

 

Year Ended 

 

 

 

December 31

 

 

    

2022

    

2021

 

 

 

Unaudited

 

 

 

($ thousands)

 

 OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income

 

$

 298,209

 

$

 213,521

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 127,119

 

 

 118,864

 

Amortization of intangibles

 

 

 12,920

 

 

 5,357

 

Share-based compensation expense

 

 

 12,775

 

 

 11,426

 

Provision for losses on accounts receivable

 

 

 6,955

 

 

 1,466

 

Change in deferred income taxes

 

 

 (6,250)

 

 

 (7,589)

 

Gain on sale of property and equipment

 

 

 (11,650)

 

 

 (8,520)

 

Gain on sale of subsidiary

 

 

 (402)

 

 

 (6,923)

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Receivables

 

 

 (10,349)

 

 

 (122,782)

 

Prepaid expenses

 

 

 (410)

 

 

 (1,482)

 

Other assets

 

 

 (2,941)

 

 

 354

 

Income taxes

 

 

 (5,041)

 

 

 13,136

 

Operating right-of-use assets and lease liabilities, net

 

 

 2,952

 

 

 623

 

Accounts payable, accrued expenses, and other liabilities

 

 

 46,932

 

 

 106,064

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

 

 470,819

 

 

 323,515

 

 

 

 

 

 

 

 

 

 INVESTING ACTIVITIES

 

 

 

 

 

 

 

Purchases of property, plant and equipment, net of financings

 

 

 (148,223)

 

 

 (58,412)

 

Proceeds from sale of property and equipment

 

 

 19,691

 

 

 13,815

 

Business acquisition, net of cash acquired(1)

 

 

 2,279

 

 

 (239,380)

 

Proceeds from sale of subsidiary

 

 

 475

 

 

 9,013

 

Purchases of short-term investments

 

 

 (182,352)

 

 

 (56,011)

 

Proceeds from sale of short-term investments

 

 

 64,329

 

 

 73,182

 

Purchase of long-term investments

 

 

 —

 

 

 (25,350)

 

Capitalization of internally developed software

 

 

 (17,282)

 

 

 (20,061)

 

NET CASH USED IN INVESTING ACTIVITIES

 

 

 (261,083)

 

 

 (303,204)

 

 

 

 

 

 

 

 

 

 FINANCING ACTIVITIES

 

 

 

 

 

 

 

Borrowings under credit facilities

 

 

 58,000

 

 

 50,000

 

Proceeds from notes payable

 

 

 14,206

 

 

 3,523

 

Payments on long-term debt

 

 

 (115,540)

 

 

 (171,915)

 

Net change in book overdrafts

 

 

 8,356

 

 

 (1,957)

 

Deferred financing costs

 

 

 (952)

 

 

 (314)

 

Payment of common stock dividends

 

 

 (10,830)

 

 

 (8,139)

 

Purchases of treasury stock

 

 

 (65,002)

 

 

 (83,100)

 

Forward contract for accelerated share repurchase

 

 

 —

 

 

 (25,000)

 

Payments for tax withheld on share-based compensation

 

 

 (16,222)

 

 

 (10,743)

 

NET CASH USED IN FINANCING ACTIVITIES

 

 

 (127,984)

 

 

 (247,645)

 

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

 81,752

 

 

 (227,334)

 

Cash and cash equivalents at beginning of period

 

 

 76,620

 

 

 303,954

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

 158,372

 

$

 76,620

 

 

 

 

 

 

 

 

 

 NONCASH INVESTING ACTIVITIES

 

 

 

 

 

 

 

Equipment financed

 

$

 82,425

 

$

 59,700

 

Accruals for equipment received

 

$

 4,337

 

$

 1,704

 

Lease liabilities arising from obtaining right-of-use assets

 

$

 87,294

 

$

 14,671

 


  1. For the year ended December 31, 2022, represents cash received from escrow for post-closing adjustments related to the acquisition of MoLo. For the year ended December 31, 2021, represents the acquisition of MoLo on November 1, 2021.

 

 

ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

Year Ended 

 

 

 

December 31

 

 

December 31

 

 

    

2022

    

 

2021

    

 

2022

    

 

2021

 

 

 

Unaudited

 

 

 

($ thousands, except percentages)

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

$

 711,436

 

 

 

 

$

 683,485

 

 

 

 

$

 3,010,900

 

 

 

 

$

 2,573,773

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest(1)

 

 

 479,098

 

 

 

 

 

 472,335

 

 

 

 

 

 2,139,272

 

 

 

 

 

 1,300,626

 

 

 

FleetNet

 

 

 93,270

 

 

 

 

 

 68,863

 

 

 

 

 

 343,056

 

 

 

 

 

 254,087

 

 

 

Total Asset-Light

 

 

 572,368

 

 

 

 

 

 541,198

 

 

 

 

 

 2,482,328

 

 

 

 

 

 1,554,713

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations

 

 

 (39,586)

 

 

 

 

 

 (39,459)

 

 

 

 

 

 (169,176)

 

 

 

 

 

 (148,419)

 

 

 

Total consolidated revenues

 

$

 1,244,218

 

 

 

 

$

 1,185,224

 

 

 

 

$

 5,324,052

 

 

 

 

$

 3,980,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages, and benefits

 

$

 319,563

 

 44.9

%

 

$

 304,350

 

 44.5

%

 

$

 1,293,487

 

 43.0

%

 

$

 1,198,253

 

 46.6

%

Fuel, supplies, and expenses

 

 

 97,152

 

 13.7

 

 

 

 73,662

 

 10.8

 

 

 

 378,558

 

 12.6

 

 

 

 266,139

 

 10.3

 

Operating taxes and licenses

 

 

 13,885

 

 1.9

 

 

 

 12,484

 

 1.8

 

 

 

 52,290

 

 1.7

 

 

 

 49,461

 

 1.9

 

Insurance

 

 

 11,574

 

 1.6

 

 

 

 9,232

 

 1.4

 

 

 

 47,382

 

 1.6

 

 

 

 37,800

 

 1.5

 

Communications and utilities

 

 

 4,820

 

 0.7

 

 

 

 4,581

 

 0.7

 

 

 

 18,949

 

 0.6

 

 

 

 18,773

 

 0.7

 

Depreciation and amortization

 

 

 24,437

 

 3.4

 

 

 

 23,774

 

 3.5

 

 

 

 97,322

 

 3.2

 

 

 

 93,799

 

 3.6

 

Rents and purchased transportation

 

 

 92,918

 

 13.1

 

 

 

 97,820

 

 14.3

 

 

 

 441,167

 

 14.6

 

 

 

 364,345

 

 14.2

 

Shared services

 

 

 66,678

 

 9.4

 

 

 

 67,277

 

 9.8

 

 

 

 281,698

 

 9.4

 

 

 

 263,532

 

 10.2

 

Gain on sale of property and equipment(2)

 

 

 (2,493)

 

 (0.4)

 

 

 

 (52)

 

 —

 

 

 

 (12,468)

 

 (0.4)

 

 

 

 (8,676)

 

 (0.3)

 

Innovative technology costs(3)

 

 

 6,225

 

 0.9

 

 

 

 6,328

 

 0.9

 

 

 

 27,207

 

 0.9

 

 

 

 27,631

 

 1.1

 

Other

 

 

 1,546

 

 0.2

 

 

 

 906

 

 0.1

 

 

 

 4,175

 

 0.1

 

 

 

 2,009

 

 0.1

 

Total Asset-Based

 

 

 636,305

 

 89.4

%

 

 

 600,362

 

 87.8

%

 

 

 2,629,767

 

 87.3

%

 

 

 2,313,066

 

 89.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

$

 402,561

 

 84.0

%

 

$

 402,834

 

 85.3

%

 

$

 1,784,668

 

 83.4

%

 

$

 1,097,332

 

 84.4

%

Supplies and expenses

 

 

 3,908

 

 0.8

 

 

 

 2,746

 

 0.6

 

 

 

 15,815

 

 0.7

 

 

 

 10,531

 

 0.8

 

Depreciation and amortization(4)

 

 

 5,010

 

 1.0

 

 

 

 4,283

 

 0.9

 

 

 

 20,730

 

 1.0

 

 

 

 11,387

 

 0.9

 

Shared services

 

 

 53,579

 

 11.2

 

 

 

 45,939

 

 9.7

 

 

 

 218,133

 

 10.2

 

 

 

 132,137

 

 10.1

 

Gain on sale of subsidiary(5)

 

 

 —

 

 —

 

 

 

 —

 

 —

 

 

 

 (402)

 

 —

 

 

 

 (6,923)

 

 (0.5)

 

Other(6)

 

 

 25,294

 

 5.3

 

 

 

 3,710

 

 0.8

 

 

 

 47,603

 

 2.2

 

 

 

 9,765

 

 0.7

 

 

 

 

 490,352

 

 102.3

%

 

 

 459,512

 

 97.3

%

 

 

 2,086,547

 

 97.5

%

 

 

 1,254,229

 

 96.4

%

FleetNet

 

 

 91,635

 

 98.2

%

 

 

 67,749

 

 98.4

%

 

 

 337,231

 

 98.3

%

 

 

 249,543

 

 98.2

%

Total Asset-Light

 

 

 581,987

 

 

 

 

 

 527,261

 

 

 

 

 

 2,423,778

 

 

 

 

 

 1,503,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations

 

 

 (25,308)

 

 

 

 

 

 (29,334)

 

 

 

 

 

 (128,762)

 

 

 

 

 

 (117,757)

 

 

 

Total consolidated operating expenses

 

$

 1,192,984

 

 95.9

%

 

$

 1,098,289

 

 92.7

%

 

$

 4,924,783

 

 92.5

%

 

$

 3,699,081

 

 92.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

$

 75,131

 

 

 

 

$

 83,123

 

 

 

 

$

 381,133

 

 

 

 

$

 260,707

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest(1)

 

 

 (11,254)

 

 

 

 

 

 12,823

 

 

 

 

 

 52,725

 

 

 

 

 

 46,397

 

 

 

FleetNet

 

 

 1,635

 

 

 

 

 

 1,114

 

 

 

 

 

 5,825

 

 

 

 

 

 4,544

 

 

 

Total Asset-Light

 

 

 (9,619)

 

 

 

 

 

 13,937

 

 

 

 

 

 58,550

 

 

 

 

 

 50,941

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations(7)

 

 

 (14,278)

 

 

 

 

 

 (10,125)

 

 

 

 

 

 (40,414)

 

 

 

 

 

 (30,662)

 

 

 

Total consolidated operating income

 

$

 51,234

 

 

 

 

$

 86,935

 

 

 

 

$

 399,269

 

 

 

 

$

 280,986

 

 

 


  1. The 2021 and 2022 periods include the operations of MoLo since the November 1, 2021 acquisition date.
  2. The year ended December 31, 2022 includes a $4.3 million noncash gain on a like-kind property exchange of a service center. The year ended December 31, 2021 includes an $8.6 million gain on the sale of an unutilized service center property.
  3. Represents costs associated with the freight handling pilot test program at ABF Freight.
  4. Depreciation and amortization includes amortization of intangibles associated with acquired businesses.
  5. Gain relates to the sale of the labor services portion of the ArcBest segment’s moving business in second quarter 2021, including the contingent amount recognized in second quarter 2022 when the funds were released from escrow.
  6. The three months and year ended December 31, 2022 include the increase in fair value of the contingent earnout consideration of $17.5 million and $18.3 million, respectively, recorded for the MoLo acquisition (See Note 3 of the Notes to Non-GAAP Financial Tables).
  7. “Other and eliminations” includes corporate costs for certain unallocated shared service costs which are not attributable to any segment, additional investments to offer comprehensive transportation and logistics services across multiple operating segments, and other investments in ArcBest technology and innovations.

 

 

 

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

Non-GAAP Financial Measures

We report our financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP performance measures and ratios utilized for internal analysis provide analysts, investors, and others the same information that we use internally for purposes of assessing our core operating performance and provides meaningful comparisons between current and prior period results, as well as important information regarding performance trends. The use of certain non-GAAP measures improves comparability in analyzing our performance because it removes the impact of items from operating results that, in management's opinion, do not reflect our core operating performance. Other companies may calculate non-GAAP measures differently; therefore, our calculation may not be comparable to similarly titled measures of other companies. Certain information discussed in the scheduled conference call could be considered non-GAAP measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results. These financial measures should not be construed as better measurements than operating income, operating cash flow, net income or earnings per share, as determined under GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

Year Ended 

 

 

December 31

 

 

December 31

 

 

    

2022

 

2021

    

  

2022

 

 

2021

 

ArcBest Corporation - Consolidated

 

(Unaudited)

 

 

 

($ thousands, except per share data)

 

Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 51,234

 

$

 86,935

 

$

 399,269

 

$

 280,986

 

Innovative technology costs, pre-tax(1)

 

 

 10,713

 

 

 8,454

 

 

 40,796

 

 

 32,845

 

Purchase accounting amortization, pre-tax(2)

 

 

 3,213

 

 

 2,455

 

 

 12,853

 

 

 5,266

 

Change in fair value of contingent consideration, pre-tax(3)

 

 

 17,490

 

 

 —

 

 

 18,300

 

 

 —

 

Gain on sale of subsidiary, pre-tax(4)

 

 

 —

 

 

 —

 

 

 (402)

 

 

 (6,923)

 

Nonunion vacation policy enhancement, pre-tax(5)

 

 

 —

 

 

 —

 

 

 2,080

 

 

 —

 

Transaction costs, pre-tax(6)

 

 

 —

 

 

 4,362

 

 

 —

 

 

 5,969

 

Non-GAAP amounts

 

$

 82,650

 

$

 102,206

 

$

 472,896

 

$

 318,143

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 37,337

 

$

 65,488

 

$

 298,209

 

$

 213,521

 

Innovative technology costs, after-tax (includes related financing costs)(1)

 

 

 8,136

 

 

 6,388

 

 

 30,822

 

 

 24,871

 

Purchase accounting amortization, after-tax(2)

 

 

 2,396

 

 

 1,837

 

 

 9,585

 

 

 3,940

 

Change in fair value of contingent consideration, after-tax(3)

 

 

 13,043

 

 

 —

 

 

 13,647

 

 

 —

 

Gain on sale of subsidiary, after-tax(4)

 

 

 —

 

 

 —

 

 

 (317)

 

 

 (5,437)

 

Nonunion vacation policy enhancement, after-tax(5)

 

 

 —

 

 

 —

 

 

 1,546

 

 

 —

 

Transaction costs, after-tax(6)

 

 

 —

 

 

 3,222

 

 

 —

 

 

 4,409

 

Life insurance proceeds and changes in cash surrender value

 

 

 (942)

 

 

 (1,215)

 

 

 2,737

 

 

 (4,123)

 

Tax expense (benefit) from vested RSUs(7)

 

 

 223

 

 

 (236)

 

 

 (8,087)

 

 

 (7,647)

 

Tax credits(8)

 

 

 1,424

 

 

 (1,540)

 

 

 234

 

 

 (1,540)

 

Non-GAAP amounts

 

$

 61,617

 

$

 73,944

 

$

 348,376

 

$

 227,994

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 1.48

 

$

 2.47

 

$

 11.69

 

$

 7.98

 

Innovative technology costs, after-tax (includes related financing costs)(1)

 

 

 0.32

 

 

 0.24

 

 

 1.21

 

 

 0.93

 

Purchase accounting amortization, after-tax(2)

 

 

 0.10