ArcBest Announces Record-Setting Fourth Quarter 2021 and Full Year 2021 Results

Investor Relations Contact: David Humphrey

Media Contact: Autumnn Mahar

Title: Vice President – Investor Relations

Title: Senior Manager, PR and Social

Phone: 479-785-6200 

Phone: 479-494-8221

Email: dhumphrey@arcb.com

Email: amahar@arcb.com

 

Accelerating Growth to Benefit Customers, Empower Employees, and Enhance Value for Shareholders

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• Delivered record fourth quarter net income of $65.5 million, or $2.47 per diluted share, with non-GAAP fourth quarter 2021 net income of $73.9 million, or $2.79 per diluted share.
• Generated full year 2021 net income of $213.5 million, or $7.98 per diluted share. On a non-GAAP basis, full year 2021 net income was $228.0 million, or $8.52 per diluted share.
• Achieved the highest revenue and net income in ArcBest’s history on both a fourth quarter and annual basis.
• Returned $116 million to shareholders through stock repurchase programs and dividends.
• Continued strong results enable ArcBest to pay profit-sharing bonus to union-represented ABF Freight employees for the third year in a row.

FORT SMITH, Arkansas, February 1, 2022 — ArcBest® (Nasdaq: ARCB), a leader in supply chain logistics, today reported fourth quarter 2021 revenue of $1.2 billion, reflecting an increase of $368.8 million compared to fourth quarter 2020. Each of ArcBest’s operating segments achieved double-digit percentage revenue growth over the prior year period. Fourth quarter 2021 results include the impact of the MoLo Solutions, LLC (“MoLo”) acquisition, which closed on November 1, 2021.

ArcBest’s fourth quarter 2021 operating income was $86.9 million and net income was $65.5 million, or $2.47 per diluted share, compared to fourth quarter 2020 operating income of $30.3 million and net income of $23.9 million, or $0.89 per diluted share.

Excluding certain items in both periods as identified in the attached reconciliation tables, fourth quarter non-GAAP operating income was $102.2 million, compared to $39.5 million in the prior-year period. On a non-GAAP basis, net income was $73.9 million, or $2.79 per diluted share, in fourth quarter 2021 compared to $27.5 million, or $1.03 per diluted share, in fourth quarter 2020.

ArcBest’s full year 2021 revenue totaled $4.0 billion compared to $2.9 billion in 2020. Net income was $213.5 million, or $7.98 per diluted share, compared to net income of $71.1 million, or $2.69 per diluted share in 2020. On a non-GAAP basis, ArcBest’s 2021 net income was $228.0 million, or $8.52 per diluted share, compared to net income of $90.5 million, or $3.42 per diluted share, in 2020.

“I am extremely proud of the talented people of ArcBest, whose dedication and hard work have driven our record-breaking fourth quarter and full year results,” said Judy R. McReynolds, ArcBest chairman, president and CEO. “2021 was a year of immense challenges – from the ongoing pandemic to extreme supply chain pressures – but our team stayed focused on our strategic initiatives and consistently exceeded expectations. We are making smart investments across our business to advance our strategic vision and adapt to the rapidly evolving market environment, all while being true advisors to our customers. Our recent announcement of an investment we made in Phantom Auto, the leading provider of human-centered remote operation software, is an example of our commitment in these areas. Investments in our people, our integrated logistics solutions, and our innovations and technology have provided ArcBest with a solid foundation and will continue to drive our company’s growth, success and value-creation in 2022 and beyond.”

Fourth Quarter Results of Operations Comparisons

Asset-Based

Fourth Quarter 2021 Versus Fourth Quarter 2020

• Revenue of $683.5 million compared to $554.4 million, a per-day increase of 23.3 percent.
• Total tonnage per day increase of 5.1 percent, including an increase of 1.1 percent in LTL-rated weight per shipment.
• Total shipments per day increase of 1.5 percent.
• Total billed revenue per hundredweight increased 17.3 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 double digits.
• Operating income of $83.1 million compared to $27.9 million. On a non-GAAP basis, operating income of $89.5 million compared to $34.9 million.

Continued customer demand for ArcBest’s Asset-Based services and a solid pricing environment are reflected in the segment’s record-setting fourth quarter and full year revenue and profit. As transportation capacity challenges continued in the marketplace, ArcBest’s customers benefited from integrated supply chain solutions enhanced by trusted relationships and utilization of ArcBest’s Asset-Based network. Hiring events and initiatives have been successful and are expected to produce further benefits for customers. An emphasis on network resource allocation to serve core LTL customers continued to result in tonnage and shipment growth as well as increased profitability.

As a result of the operating ratio achieved in 2021, ABF Freight will pay a 3% profit-sharing bonus to qualifying union-represented employees – the maximum amount provided in the collective bargaining agreement.

“The ABF Freight team is an integral part of ArcBest’s differentiated offering of integrated logistics solutions. It’s because of that team’s continued dedication and efforts that we’re able to provide this bonus for the third year in a row and at a higher level compared to the previous two years,” added McReynolds.


Asset-Light‡

Fourth Quarter 2021 Versus Fourth Quarter 2020 (including the results of MoLo beginning November 1, 2021)

• Revenue of $541.2 million compared to $301.2 million, a per-day increase of 79.7 percent.
• For the months of November and December 2021, MoLo revenue of $120.3 million.
• Operating income of $13.9 million compared to $5.5 million. On a non-GAAP basis, operating income of $16.4 million compared to $6.4 million.
• Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) of $18.6 million compared to $8.3 million, as detailed in the attached non-GAAP reconciliation tables.

Increased market rates associated with limited transport capacity, combined with continued strength in customer demand, resulted in another record-setting quarter for the ArcBest segment. For the months of November and December, the positive momentum in the ArcBest segment was enhanced by the addition of MoLo. With the addition of MoLo, ArcBest’s truckload services produced a significant increase in truckload brokerage revenue and shipments over the prior year’s fourth quarter. Revenue growth and enhanced profitability were driven by strong demand from customers seeking supply chain solutions requiring expedite, managed transportation and international services. ArcBest also continued to benefit from strong relationships with carrier partners, further improved by the addition of MoLo, and the ability to meet customers’ needs through innovation in a tight freight market.

At FleetNet, an increase in roadside events and higher revenue per total service event contributed to record quarterly revenue and strong fourth quarter profitability for the segment.

Full Year Results of Operations Comparisons

Asset-Based

Full Year 2021 Versus Full Year 2020

• Revenue of $2.6 billion, compared to $2.1 billion, a per-day increase of 23.5 percent.
• Tonnage per day increase of 7.6 percent.
• Shipments per day increase of 4.3 percent.
• Total billed revenue per hundredweight increase of 14.7 percent, positively impacted by higher fuel surcharges.
• Operating income of $260.7 million compared to $98.9 million. On a non-GAAP basis, operating income of $288.3 million compared to $121.3 million.
• Profit-sharing bonus to union-represented ABF Freight employees of $15.1 million, an increase of approximately $10 million over those paid for both 2019 and 2020.
Asset-Light‡
Full Year 2021 Versus Full Year 2020 (including the results of MoLo beginning November 1, 2021)
• Revenue of $1.6 billion compared to $984.2 million, a per-day increase of 58.6 percent.
• Operating income of $50.9 million compared to $13.0 million. On a non-GAAP basis, operating income of $49.3 million compared to $16.8 million.
• Adjusted EBITDA of $64.0 million compared to $24.4 million.

Capital Expenditures

In 2021, total net capital expenditures, including equipment financed, equaled $104 million. Net capital expenditures in 2021 included $79 million of revenue equipment, the majority of which was for ArcBest’s Asset-Based operation. Revenue equipment purchases in 2021 were lower than the original estimate because of pandemic-related manufacturing delays, primarily on new road tractors. Depreciation and amortization costs on property, plant and equipment were $119 million in 2021.

Quarterly Dividend and Share Repurchase Programs

ArcBest generated solid cash from operations in 2021 and continued to return capital to shareholders through its dividend and share repurchase programs, including the $100 million accelerated share repurchase agreement that was entered into in early November 2021 and completed in January 2022. Currently, $41.9 million remains available under an authorized program for future common stock purchases.


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 2021 fourth quarter and full year 2021 results. The call will be today, Tuesday, February 1, at 9:30 a.m. EST (8:30 a.m. CST). Interested parties are invited to listen by calling (800) 954-0652 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 1, 2022, 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, 2022. To listen to the playback, dial (800) 633-8284 or (402) 977-9140 (for international callers). The conference call ID for the playback is 22014422. The conference call and playback can also be accessed, through March 15, 2022, 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 14,000 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 their 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, 2021 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: market fluctuations and interruptions affecting the price of our stock or the price or timing of our share repurchase programs; widespread outbreak of an illness or disease, including the COVID-19 pandemic and its effects, 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; a failure of our information systems, including disruptions or failures of services essential to our operations or upon which our information technology platforms rely, data breach, and/or cybersecurity incidents; 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; 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 MoLo acquisition, and the inability to realize the anticipated benefits of the acquisition within the expected time period or at all; the timing or amount of the earnout payments for the MoLo acquisition, if any; maintaining our corporate reputation and intellectual property rights; 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; 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

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

Year Ended 

 

 

 

December 31

 

December 31

 

 

    

2021

    

2020

    

2021

    

2020

 

 

 

(Unaudited)

 

 

 

($ thousands, except share and per share data)

 

REVENUES

 

$

 1,185,224

 

$

 816,414

 

$

 3,980,067

 

$

 2,940,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 1,098,289

 

 

 786,162

 

 

 3,699,081

 

 

 2,841,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

 86,935

 

 

 30,252

 

 

 280,986

 

 

 98,278

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (COSTS)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

 

 238

 

 

 494

 

 

 1,275

 

 

 3,616

 

Interest and other related financing costs

 

 

 (2,130)

 

 

 (2,512)

 

 

 (8,904)

 

 

 (11,697)

 

Other, net

 

 

 1,156

 

 

 1,965

 

 

 3,797

 

 

 2,299

 

 

 

 

 (736)

 

 

 (53)

 

 

 (3,832)

 

 

 (5,782)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

 86,199

 

 

 30,199

 

 

 277,154

 

 

 92,496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX PROVISION

 

 

 20,711

 

 

 6,285

 

 

 63,633

 

 

 21,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

 65,488

 

$

 23,914

 

$

 213,521

 

$

 71,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 2.60

 

$

 0.94

 

$

 8.38

 

$

 2.80

 

Diluted

 

$

 2.47

 

$

 0.89

 

$

 7.98

 

$

 2.69

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 25,211,666

 

 

 25,427,449

 

 

 25,471,939

 

 

 25,410,232

 

Diluted

 

 

 26,467,420

 

 

 26,734,287

 

 

 26,772,126

 

 

 26,422,523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH DIVIDENDS DECLARED PER COMMON SHARE

 

$

 0.08

 

$

 0.08

 

$

 0.32

 

$

 0.32

 

 

ARCBEST CORPORATION

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

December 31

 

December 31

 

 

    

2021

    

2020

 

 

 

(Unaudited)

 

Note

 

 

 

($ thousands, except share data)

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 76,620

 

$

 303,954

 

Short-term investments

 

 

 48,339

 

 

 65,408

 

Accounts receivable, less allowances (2021 - $13,226; 2020 - $7,851)

 

 

 582,344

 

 

 320,870

 

Other accounts receivable, less allowances (2021 - $690; 2020 - $660)

 

 

 13,094

 

 

 14,343

 

Prepaid expenses

 

 

 40,104

 

 

 37,774

 

Prepaid and refundable income taxes

 

 

 9,654

 

 

 11,397

 

Other

 

 

 5,898

 

 

 4,422

 

TOTAL CURRENT ASSETS

 

 

 776,053

 

 

 758,168

 

 

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT

 

 

 

 

 

 

 

Land and structures

 

 

 350,694

 

 

 342,178

 

Revenue equipment

 

 

 980,283

 

 

 916,760

 

Service, office, and other equipment

 

 

 251,085

 

 

 233,810

 

Software

 

 

 175,989

 

 

 163,193

 

Leasehold improvements

 

 

 16,931

 

 

 15,156

 

 

 

 

 1,774,982

 

 

 1,671,097

 

Less allowances for depreciation and amortization

 

 

 1,079,061

 

 

 992,407

 

 

 

 

 695,921

 

 

 678,690

 

 

 

 

 

 

 

 

 

GOODWILL

 

 

 300,337

 

 

 88,320

 

INTANGIBLE ASSETS, NET

 

 

 126,580

 

 

 54,981

 

OPERATING RIGHT-OF-USE ASSETS

 

 

 106,686

 

 

 115,195

 

DEFERRED INCOME TAXES

 

 

 5,470

 

 

 6,158

 

OTHER LONG-TERM ASSETS

 

 

 101,629

 

 

 77,496

 

TOTAL ASSETS

 

$

 2,112,676

 

$

 1,779,008

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Accounts payable

 

$

 311,401

 

$

 170,898

 

Income taxes payable

 

 

 12,087

 

 

 316

 

Accrued expenses

 

 

 305,851

 

 

 246,746

 

Current portion of long-term debt

 

 

 50,615

 

 

 67,105

 

Current portion of operating lease liabilities

 

 

 22,740

 

 

 21,482

 

TOTAL CURRENT LIABILITIES

 

 

 702,694

 

 

 506,547

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT, less current portion

 

 

 174,917

 

 

 217,119

 

OPERATING LEASE LIABILITIES, less current portion

 

 

 88,835

 

 

 97,839

 

POSTRETIREMENT LIABILITIES, less current portion

 

 

 16,733

 

 

 18,555

 

OTHER LONG-TERM LIABILITIES

 

 

 135,537

 

 

 37,948

 

DEFERRED INCOME TAXES

 

 

 64,893

 

 

 72,407

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Common stock, $0.01 par value, authorized 70,000,000 shares;
      issued 2021: 29,359,597 shares; 2020: 29,045,309 shares

 

 

 294

 

 

 290

 

Additional paid-in capital

 

 

 318,033

 

 

 342,354

 

Retained earnings

 

 

 801,314

 

 

 595,932

 

   Treasury stock, at cost, 2021: 4,492,514 shares; 2020: 3,656,938 shares

 

 

 (194,273)

 

 

 (111,173)

 

Accumulated other comprehensive income

 

 

 3,699

 

 

 1,190

 

TOTAL STOCKHOLDERS’ EQUITY

 

 

 929,067

 

 

 828,593

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

 2,112,676

 

$

 1,779,008

 

 

Note:  The balance sheet at December 31, 2020 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

 

 

    

2021

    

2020

 

 

 

Unaudited

 

 

 

($ thousands)

 

 OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income

 

$

 213,521

 

$

 71,100

 

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

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 118,864

 

 

 114,379

 

Amortization of intangibles

 

 

 5,357

 

 

 4,012

 

Pension settlement expense

 

 

 —

 

 

 89

 

Share-based compensation expense

 

 

 11,426

 

 

 10,478

 

Provision for losses on accounts receivable

 

 

 1,466

 

 

 4,327

 

Change in deferred income taxes

 

 

 (7,589)

 

 

 7,715

 

Gain on sale of property and equipment and lease termination

 

 

 (8,520)

 

 

 (2,376)

 

Gain on sale of subsidiaries

 

 

 (6,923)

 

 

 —

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Receivables

 

 

 (122,782)

 

 

 (38,129)

 

Prepaid expenses

 

 

 (1,482)

 

 

 (7,966)

 

Other assets

 

 

 354

 

 

 2,646

 

Income taxes

 

 

 13,136

 

 

 (1,712)

 

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

 

 

 623

 

 

 756

 

Accounts payable, accrued expenses, and other liabilities

 

 

 106,064

 

 

 40,670

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

 

 323,515

 

 

 205,989

 

 

 

 

 

 

 

 

 

 INVESTING ACTIVITIES

 

 

 

 

 

 

 

Purchases of property, plant and equipment, net of financings

 

 

 (58,412)

 

 

 (43,248)

 

Proceeds from sale of property and equipment

 

 

 13,815

 

 

 13,348

 

Business acquisitions, net of cash acquired(1)

 

 

 (239,380)

 

 

 —

 

Proceeds from sale of subsidiaries

 

 

 9,013

 

 

 —

 

Purchases of short-term investments

 

 

 (56,011)

 

 

 (165,133)

 

Proceeds from sale of short-term investments

 

 

 73,182

 

 

 216,735

 

Purchase of long-term investments

 

 

 (25,350)

 

 

 —

 

Capitalization of internally developed software

 

 

 (20,061)

 

 

 (14,241)

 

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

 

 

 (303,204)

 

 

 7,461

 

 

 

 

 

 

 

 

 

 FINANCING ACTIVITIES

 

 

 

 

 

 

 

Borrowings under credit facilities

 

 

 50,000

 

 

 180,000

 

Borrowings under accounts receivable securitization program

 

 

 —

 

 

 45,000

 

Proceeds from notes payable

 

 

 3,523

 

 

 —

 

Payments on long-term debt

 

 

 (171,915)

 

 

 (326,098)

 

Net change in book overdrafts

 

 

 (1,957)

 

 

 6,510

 

Deferred financing costs

 

 

 (314)

 

 

 —

 

Payment of common stock dividends

 

 

 (8,139)

 

 

 (8,157)

 

Purchases of treasury stock

 

 

 (83,100)

 

 

 (6,595)

 

Forward contract for accelerated share repurchase

 

 

 (25,000)

 

 

 —

 

Payments for tax withheld on share-based compensation

 

 

 (10,743)

 

 

 (2,065)

 

NET CASH USED IN FINANCING ACTIVITIES

 

 

 (247,645)

 

 

 (111,405)

 

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

 (227,334)

 

 

 102,045

 

Cash and cash equivalents at beginning of period

 

 

 303,954

 

 

 201,909

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

 76,620

 

$

 303,954

 

 

 

 

 

 

 

 

 

 NONCASH INVESTING ACTIVITIES

 

 

 

 

 

 

 

Equipment financed

 

$

 59,700

 

$

 61,803

 

Accruals for equipment received

 

$

 1,704

 

$

 1,667

 

Lease liabilities arising from obtaining right-of-use assets

 

$

 14,671

 

$

 67,819

 


  1. Represents the acquisition of MoLo Solutions, LLC (“MoLo”) on November 1, 2021.

 

ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

Year Ended 

 

 

 

December 31

 

 

December 31

 

 

    

2021

    

 

2020

    

 

2021

    

 

2020

 

 

 

Unaudited

 

 

 

($ thousands, except percentages)

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

$

 683,485

 

 

 

 

$

 554,392

 

 

 

 

$

 2,573,773

 

 

 

 

$

 2,092,031

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest(1)

 

 

 472,335

 

 

 

 

 

 245,579

 

 

 

 

 

 1,300,626

 

 

 

 

 

 779,115

 

 

 

FleetNet

 

 

 68,863

 

 

 

 

 

 55,625

 

 

 

 

 

 254,087

 

 

 

 

 

 205,049

 

 

 

Total Asset-Light

 

 

 541,198

 

 

 

 

 

 301,204

 

 

 

 

 

 1,554,713

 

 

 

 

 

 984,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations

 

 

 (39,459)

 

 

 

 

 

 (39,182)

 

 

 

 

 

 (148,419)

 

 

 

 

 

 (136,032)

 

 

 

Total consolidated revenues

 

$

 1,185,224

 

 

 

 

$

 816,414

 

 

 

 

$

 3,980,067

 

 

 

 

$

 2,940,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages, and benefits

 

$

 304,350

 

 44.5

%

 

$

 275,476

 

 49.7

%

 

$

 1,198,253

 

 46.6

%

 

$

 1,095,694

 

 52.4

%

Fuel, supplies, and expenses

 

 

 73,662

 

 10.8

 

 

 

 52,051

 

 9.4

 

 

 

 266,139

 

 10.3

 

 

 

 209,095

 

 10.0

 

Operating taxes and licenses

 

 

 12,484

 

 1.8

 

 

 

 12,581

 

 2.2

 

 

 

 49,461

 

 1.9

 

 

 

 49,300

 

 2.4

 

Insurance

 

 

 9,232

 

 1.4

 

 

 

 8,910

 

 1.6

 

 

 

 37,800

 

 1.5

 

 

 

 33,568

 

 1.6

 

Communications and utilities

 

 

 4,581

 

 0.7

 

 

 

 4,490

 

 0.8

 

 

 

 18,773

 

 0.7

 

 

 

 17,916

 

 0.8

 

Depreciation and amortization

 

 

 23,774

 

 3.5

 

 

 

 23,675

 

 4.3

 

 

 

 93,799

 

 3.6

 

 

 

 94,326

 

 4.5

 

Rents and purchased transportation

 

 

 97,820

 

 14.3

 

 

 

 78,795

 

 14.2

 

 

 

 364,345

 

 14.2

 

 

 

 250,159

 

 12.0

 

Shared services

 

 

 67,277

 

 9.8

 

 

 

 62,104

 

 11.2

 

 

 

 263,532

 

 10.2

 

 

 

 217,258

 

 10.4

 

Gain on sale of property and equipment(2)

 

 

 (52)

 

 —

 

 

 

 (103)

 

 —

 

 

 

 (8,676)

 

 (0.3)

 

 

 

 (3,309)

 

 (0.2)

 

Innovative technology costs(3)

 

 

 6,328

 

 0.9

 

 

 

 6,937

 

 1.3

 

 

 

 27,631

 

 1.1

 

 

 

 22,458

 

 1.1

 

Other

 

 

 906

 

 0.1

 

 

 

 1,533

 

 0.3

 

 

 

 2,009

 

 0.1

 

 

 

 6,701

 

 0.3

 

Total Asset-Based

 

 

 600,362

 

 87.8

%

 

 

 526,449

 

 95.0

%

 

 

 2,313,066

 

 89.9

%

 

 

 1,993,166

 

 95.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

$

 402,834

 

 85.3

%

 

$

 206,532

 

 84.1

%

 

$

 1,097,332

 

 84.4

%

 

$

 649,933

 

 83.4

%

Supplies and expenses

 

 

 2,746

 

 0.6

 

 

 

 2,612

 

 1.0

 

 

 

 10,531

 

 0.8

 

 

 

 9,627

 

 1.2

 

Depreciation and amortization(4)

 

 

 4,283

 

 0.9

 

 

 

 2,382

 

 1.0

 

 

 

 11,387

 

 0.9

 

 

 

 9,714

 

 1.3

 

Shared services

 

 

 45,939

 

 9.7

 

 

 

 26,199

 

 10.7

 

 

 

 132,137

 

 10.1

 

 

 

 90,983

 

 11.7

 

Gain on sale of subsidiary(5)

 

 

 —

 

 —

 

 

 

 —

 

 —

 

 

 

 (6,923)

 

 (0.5)

 

 

 

 —

 

 —

 

Other

 

 

 3,710

 

 0.8

 

 

 

 2,924

 

 1.2

 

 

 

 9,765

 

 0.7

 

 

 

 9,203

 

 1.2

 

 

 

 

 459,512

 

 97.3

%

 

 

 240,649

 

 98.0

%

 

 

 1,254,229

 

 96.4

%

 

 

 769,460

 

 98.8

%

FleetNet

 

 

 67,749

 

 98.4

%

 

 

 55,067

 

 99.0

%

 

 

 249,543

 

 98.2

%

 

 

 201,682

 

 98.4

%

Total Asset-Light

 

 

 527,261

 

 

 

 

 

 295,716

 

 

 

 

 

 1,503,772

 

 

 

 

 

 971,142

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations(6)

 

 

 (29,334)

 

 

 

 

 

 (36,003)

 

 

 

 

 

 (117,757)

 

 

 

 

 

 (122,423)

 

 

 

Total consolidated operating expenses

 

$

 1,098,289

 

 92.7

%

 

$

 786,162

 

 96.3

%

 

$

 3,699,081

 

 92.9

%

 

$

 2,841,885

 

 96.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

$

 83,123

 

 

 

 

$

 27,943

 

 

 

 

$

 260,707

 

 

 

 

$

 98,865

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest

 

 

 12,823

 

 

 

 

 

 4,930

 

 

 

 

 

 46,397

 

 

 

 

 

 9,655

 

 

 

FleetNet

 

 

 1,114

 

 

 

 

 

 558

 

 

 

 

 

 4,544

 

 

 

 

 

 3,367

 

 

 

Total Asset-Light

 

 

 13,937

 

 

 

 

 

 5,488

 

 

 

 

 

 50,941

 

 

 

 

 

 13,022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations(6)

 

 

 (10,125)

 

 

 

 

 

 (3,179)

 

 

 

 

 

 (30,662)

 

 

 

 

 

 (13,609)

 

 

 

Total consolidated operating income

 

$

 86,935

 

 

 

 

$

 30,252

 

 

 

 

$

 280,986

 

 

 

 

$

 98,278

 

 

 


  1. The 2021 periods include the operations of MoLo since the November 1, 2021 acquisition date.
  2. 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.
  6. “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, including innovative technology costs.

 

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

Non-GAAP Financial Measures

We report our financial results in accordance with 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

 

 

    

2021

 

2020

    

  

2021

 

 

2020

 

ArcBest Corporation - Consolidated

 

(Unaudited)

 

 

 

($ thousands, except per share data)

 

Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 86,935

 

$

 30,252

 

$

 280,986

 

$

 98,278

 

Innovative technology costs, pre-tax(1)

 

 

 8,454

 

 

 8,279

 

 

 32,845

 

 

 25,620

 

Purchase accounting amortization(2)

 

 

 2,455

 

 

 937

 

 

 5,266

 

 

 3,749

 

Transaction costs, pre-tax(3)

 

 

 4,362

 

 

 —

 

 

 5,969

 

 

 —

 

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

 

 

 —

 

 

 —

 

 

 (6,923)

 

 

 —

 

Non-GAAP amounts

 

$

 102,206

 

$

 39,468

 

$

 318,143

 

$

 127,647

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 65,488

 

$

 23,914

 

$

 213,521

 

$

 71,100

 

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

 

 

 6,388

 

 

 6,283

 

 

 24,871

 

 

 19,604

 

Purchase accounting amortization(2)

 

 

 1,837

 

 

 702

 

 

 3,940

 

 

 2,805

 

Transaction costs, after-tax(3)

 

 

 3,222

 

 

 —

 

 

 4,409

 

 

 —

 

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

 

 

 —

 

 

 —

 

 

 (5,437)

 

 

 —

 

Nonunion pension expense, including settlement expense, after-tax(5)

 

 

 —

 

 

 —

 

 

 —

 

 

 66

 

Life insurance proceeds and changes in cash surrender value

 

 

 (1,215)

 

 

 (2,058)

 

 

 (4,123)

 

 

 (2,316)

 

Tax expense (benefit) from vested RSUs(6)

 

 

 (236)

 

 

 (31)

 

 

 (7,647)

 

 

 510

 

Tax credits(7)

 

 

 (1,540)

 

 

 (1,285)

 

 

 (1,540)

 

 

 (1,285)

 

Non-GAAP amounts

 

$

 73,944

 

$

 27,525

 

$

 227,994

 

$

 90,484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 2.47

 

$

 0.89

 

$

 7.98

 

$

 2.69

 

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

 

 

 0.24

 

 

 0.24

 

 

 0.93

 

 

 0.74

 

Purchase accounting amortization(2)

 

 

 0.07

 

 

 0.03

 

 

 0.15

 

 

 0.11

 

Transaction costs, after-tax(3)

 

 

 0.12

 

 

 —

 

 

 0.16

 

 

 —

 

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

 

 

 —

 

 

 —

 

 

 (0.20)

 

 

 —

 

Nonunion pension expense, including settlement expense, after-tax(5)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

Life insurance proceeds and changes in cash surrender value

 

 

 (0.05)

 

 

 (0.08)

 

 

 (0.15)

 

 

 (0.09)

 

Tax expense (benefit) from vested RSUs(6)

 

 

 (0.01)

 

 

 —

 

 

 (0.29)

 

 

 0.02

 

Tax credits(7)

 

 

 (0.06)

 

 

 (0.05)

 

 

 (0.06)

 

 

 (0.05)

 

Non-GAAP amounts(8)

 

$

 2.79

 

$

 1.03

 

$

 8.52

 

$

 3.42

 

 


  1. Represents costs associated with the freight handling pilot test program at ABF Freight and initiatives to optimize our performance through technological innovation, including costs related to our recently announced investment in human-centered remote operation software.
  2. Represents the amortization of acquired intangible assets related to the November 1, 2021 acquisition of MoLo and previously acquired businesses in the ArcBest segment.
  3. Transaction costs are associated with the acquisition of MoLo.
  4. Gain relates to the sale of the labor services portion of ArcBest segment’s moving business in second quarter 2021.
  5. Represents pension settlement expense related to the Company’s supplemental benefit plan.
  6. The Company recognizes the tax impact for the vesting of share-based compensation resulting in excess tax expense (benefit).
  7. Represents a research and development tax credit recognized in the tax provision during fourth quarter 2021 and 2020 which relates to the tax year ended February 28, 2021 and February 29, 2020, respectively.
  8. Non-GAAP EPS is calculated in total and may not foot due to rounding.

 

 

Three Months Ended 

 

Year Ended 

 

 

 

December 31

 

December 31

 

 

    

2021

 

2020

 

2021

 

2020

 

Segment Operating Income Reconciliations

 

(Unaudited)

 

 

 

($ thousands, except percentages)

 

Asset-Based Segment

 

 

 

 

 

Operating Income ($) and Operating Ratio (% of revenues)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 83,123

 

 87.8

%  

 

$

 27,943

 

 95.0

%  

 

$

 260,707

 

 89.9

%  

 

$

 98,865

 

 95.3

%  

 

Innovative technology costs, pre-tax(1)

 

 

 6,328

 

 (0.9)

 

 

 

 6,937

 

 (1.3)

 

 

 

 27,631

 

 (1.1)

 

 

 

 22,458

 

 (1.1)

 

 

Non-GAAP amounts