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ArcBest Announces Second Quarter 2017 Results

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Investor Relations Contact: David Humphrey
Title: Vice President – Investor Relations
Phone: 479-785-6200 
Email: dhumphrey@arcb.com

Media Contact: Kathy Fieweger
Phone: 479-719-4358
Email: kfieweger@arcb.com

ArcBestSM Announces Second Quarter 2017 Results

  • Second quarter 2017 revenue of $720.4 million, and net income of $15.8 million, or $0.60 per diluted share. On a non-GAAP basis, second quarter 2017 net income of $14.9 million, or $0.57 per diluted share.
  • Increased revenue and profit in Asset-Based services resulting from shipment growth and improved pricing 
  • Second quarter Asset-Light operating income improvement associated with revenue growth

FORT SMITH, Arkansas, July 28, 2017 — ArcBestSM (Nasdaq: ARCB) today reported second quarter 2017 revenue of $720.4 million compared to second quarter 2016 revenue of $676.6 million.  Second quarter 2017 operating income was $24.7 million compared to operating income of $16.7 million last year.  Net income of $15.8 million, or $0.60 per diluted share, compared to second quarter 2016 net income of $10.2 million, or $0.39 per diluted share.    

Excluding certain items in both periods as identified in the attached reconciliation tables, non-GAAP net income was $14.9 million, or $0.57 per diluted share, in second quarter 2017 compared to second quarter 2016 net income of $10.0 million, or $0.38 per diluted share. On a non-GAAP basis, operating income was $25.8 million in second quarter 2017 compared to second quarter 2016 operating income of $17.2 million.  Cost controls resulting from the enhanced market approach implemented at the beginning of the year continue to be in-line with expectations.  

“We were pleased to see improved results in the second quarter,” said ArcBest Chairman, President and CEO Judy R. McReynolds. “Our responsiveness to customers’ logistics needs supported by assured capacity options contributed to revenue growth and improved profitability.  Favorable trends in economic indicators are expected to positively impact the freight environment going forward.  In situations where multiple logistics solutions are increasingly required by customers to meet their own business objectives, we are well positioned to deliver.”

Asset-Based

Results of Operations

Second Quarter 2017 Versus Second Quarter 2016

  • Revenue of $514.5 million compared to $486.3 million, a per-day increase of 6.7 percent.
  • Tonnage per day increase of 0.1 percent.
  • Shipments per day increase of 4.4 percent.
  • Total billed revenue per hundredweight increased 6.1 percent and was positively impacted by changes in shipment profile and higher fuel surcharges.  Excluding fuel surcharge, the percentage increase on ArcBest’s Asset-Based LTL freight was in the mid-single digits.
  • Operating income of $22.2 million and an operating ratio of 95.7 percent compared to operating income of $17.4 million and an operating ratio of 96.4 percent.  On a non-GAAP basis, operating income of $22.7 million and an operating ratio of 95.6 percent compared to operating income of $17.8 million and an operating ratio of 96.3 percent.

The increase in total revenue and revenue per shipment for ArcBest’s Asset-Based services occurred within a positive industry pricing environment.  Daily freight tonnage was flat versus the same period last year, as LTL-rated tonnage growth was partially offset by purposeful reductions in volume-quoted business.  Asset-Based expenses were positively impacted by lower costs and greater efficiencies in linehaul and equipment repositioning costs, partially offset by the need for higher amounts of freight handling labor and purchased transportation associated with the quarterly shipment growth.

Asset-Light

Results of Operations

Second Quarter 2017 Versus Second Quarter 2016

  • Revenue of $212.4 million compared to $196.1 million.
  • Operating income of $6.5 million compared to operating income of $2.8 million. On a non-GAAP basis, operating income of $6.7 million compared to $2.8 million.
  • Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) of $10.2 million compared to Adjusted EBITDA of $6.5 million.

ArcBest’s Asset-Light revenue increase was the result of continued strength in demand for expedite services combined with the effects of additional dedicated truckload business from a September 2016 acquisition.  The significant year-over-year increase in asset-light operating income was the result of labor efficiencies, continued cost management and expedite revenue growth. Truckload revenue per shipment increased over the previous year’s period, but led to lower shipment levels. While the truckload market tightened, truckload net revenue margins continued to be compressed as higher market rates for purchased transportation outpaced increases in revenue per shipment.  FleetNet maintained ongoing improvements in labor efficiencies and cost reductions that drove second quarter operating income improvement despite lower revenue and fewer total events versus last year associated with changes in customer profile.

Credit Agreement Amendment

As previously announced, on July 7, 2017 ArcBest amended the existing credit agreement with its current bank group. The new agreement increases the amount of the revolving credit facility to $200 million from $150 million, increases the revolver accordion to $100 million from $75 million and extends the credit facility maturity date approximately two and a half years to July 2022.

Closing Comments

“The improvement in the 2017 operating environment that we expected to see has materialized, giving us a solid foundation upon which to initiate our LTL, space-based pricing effort that takes effect August 1,” said McReynolds. “As the freight profile we see in our network continues to evolve, we are confident this complementary pricing structure will provide better compensation in cases where the space taken up on our equipment is the most important factor to consider.  ArcBest is a trusted supply-chain advisor that understands our customers complex needs.  We continue to evolve our approach for the benefit of customers, the broader marketplace and our shareholders.  With the implementation of our enhanced market approach, we are now able to compete much more effectively for a larger segment of the logistics market by offering a wider array of solutions along with a more simplified customer experience.”

Conference Call

ArcBest will host a conference call with company executives to discuss the 2017 second quarter results. The call will be today, Friday, July 28, at 9:30 a.m. ET (8:30 a.m. CT). Interested parties are invited to listen by calling (888) 209-3771. Following the call, a recorded playback will be available through the end of the day on September 15, 2017. To listen to the playback, dial (800) 633-8284 or (402) 977-9140 (for international callers). The conference call ID for the playback is 21854790. The conference call and playback can also be accessed, through September 15, 2017, on ArcBest’s website at arcb.com.

About ArcBest

ArcBestSM (Nasdaq: ARCB) is a logistics company with creative problem solvers who have The Skill and the Will® to deliver integrated logistics solutions.  At ArcBest, We'll Find a Way to deliver knowledge, expertise and a can-do attitude with every shipment and supply chain solution, household move or vehicle repair.  For more information, visit arcb.com.

Forward-Looking Statements

Certain statements and information in this press release concerning results for the three months ended June 30, 2017 may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. 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: 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; not achieving some or all of the expected financial and operating benefits of our corporate restructuring or incurring additional costs or operational inefficiencies as a result of the restructuring; relationships with employees, including unions, and our ability to attract and retain 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; competitive initiatives and pricing pressures; union and nonunion employee wages and benefits, including changes in required contributions to multiemployer plans; the cost, integration, and performance of any recent or future acquisitions; 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; governmental regulations; environmental laws and regulations, including emissions-control regulations; the loss or reduction of business from large customers; litigation or claims asserted against us; the cost, timing, and performance of growth initiatives; the loss of key employees or the inability to execute succession planning strategies; 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; default on covenants of financing arrangements and the availability and terms of future financing arrangements; timing and amount of capital expenditures; self-insurance claims and insurance premium costs; 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; 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 and fuel and related taxes; potential impairment of goodwill and intangible assets; maintaining our intellectual property rights, brand, and corporate reputation; seasonal fluctuations and adverse weather conditions; regulatory, economic, and other risks arising from our international business;  antiterrorism and safety measures; and other financial, operational, and legal risks and uncertainties detailed from time to time in ArcBest’s public filings with the Securities and Exchange Commission (“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 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.

NOTE

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

Financial Data and Operating Statistics

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

Restructuring and Operating Segment Restatements. Certain restatements have been made to the prior year’s operating segment data to conform to the current year presentation, reflecting the realignment of the Company’s organizational structure as announced on November 3, 2016. Under the new structure, the segments previously reported as Premium Logistics (Panther), Transportation Management (ABF Logistics), and Household Goods Moving Services (ABF Moving) are consolidated as a single asset-light logistics operation under ArcBest. Segment revenues and expenses were adjusted to eliminate certain intercompany charges consistent with the manner in which they are reported under the new corporate structure. Certain intercompany charges among the previously reported Panther, ABF Logistics, and ABF Moving segments which were previously eliminated in the “Other and eliminations” line, are now eliminated within the ArcBest segment. There was no impact on the Company’s consolidated revenues, operating expenses, operating income or earnings per share as a result of the restatements.

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

Six Months Ended 

 

 

 

June 30

 

June 30

 

 

    

2017

    

2016

    

2017

    

2016

 

 

 

(Unaudited)

 

 

 

($ thousands, except share and per share data)

 

REVENUES

 

$

 720,368

 

$

 676,627

 

$

 1,371,456

 

$

 1,298,082

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 695,634

 

 

 659,973

 

 

 1,358,975

 

 

 1,290,693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

 24,734

 

 

 16,654

 

 

 12,481

 

 

 7,389

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (COSTS)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

 

 285

 

 

 387

 

 

 559

 

 

 788

 

Interest and other related financing costs

 

 

 (1,389)

 

 

 (1,231)

 

 

 (2,704)

 

 

 (2,478)

 

Other, net

 

 

 505

 

 

 571

 

 

 1,152

 

 

 937

 

 

 

 

 (599)

 

 

 (273)

 

 

 (993)

 

 

 (753)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

 24,135

 

 

 16,381

 

 

 11,488

 

 

 6,636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX PROVISION

 

 

 8,358

 

 

 6,150

 

 

 3,118

 

 

 2,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

 15,777

 

$

 10,231

 

$

 8,370

 

$

 4,128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER COMMON SHARE(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 0.61

 

$

 0.39

 

$

 0.32

 

$

 0.16

 

Diluted

 

$

 0.60

 

$

 0.39

 

$

 0.32

 

$

 0.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 25,767,791

 

 

 25,791,026

 

 

 25,726,363

 

 

 25,806,774

 

Diluted

 

 

 26,291,641

 

 

 26,246,868

 

 

 26,378,436

 

 

 26,295,683

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH DIVIDENDS DECLARED PER COMMON SHARE

 

$

 0.08

 

$

 0.08

 

$

 0.16

 

$

 0.16

 


  1. ArcBest uses the two-class method for calculating earnings per share. This method requires an allocation of dividends paid and a portion of undistributed net income (but not losses) to unvested restricted stock for calculating per share amounts.

ARCBEST CORPORATION

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

June 30

 

December 31

 

 

    

2017

    

2016

 

 

 

(Unaudited)

 

Note

 

 

 

($ thousands, except share data)

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 102,569

 

$

 114,280

 

Short-term investments

 

 

 54,148

 

 

 56,838

 

Restricted cash

 

 

 —

 

 

 962

 

   Accounts receivable, less allowances (2017 - $6,046; 2016 - $5,437)

 

 

 282,856

 

 

 260,643

 

   Other accounts receivable, less allowances (2017 - $890; 2016 - $849)             

 

 

 19,052

 

 

 22,041

 

Prepaid expenses

 

 

 24,668

 

 

 22,124

 

Prepaid and refundable income taxes

 

 

 10,098

 

 

 9,909

 

Other

 

 

 8,293

 

 

 4,300

 

TOTAL CURRENT ASSETS

 

 

 501,684

 

 

 491,097

 

 

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT

 

 

 

 

 

 

 

Land and structures

 

 

 338,228

 

 

 324,086

 

Revenue equipment

 

 

 763,567

 

 

 743,860

 

Service, office, and other equipment

 

 

 161,555

 

 

 154,119

 

Software

 

 

 124,135

 

 

 120,877

 

Leasehold improvements

 

 

 9,008

 

 

 8,758

 

 

 

 

 1,396,493

 

 

 1,351,700

 

Less allowances for depreciation and amortization

 

 

 841,245

 

 

 819,174

 

 

 

 

 555,248

 

 

 532,526

 

 

 

 

 

 

 

 

 

GOODWILL

 

 

 108,981

 

 

 108,875

 

INTANGIBLE ASSETS, NET

 

 

 78,237

 

 

 80,507

 

DEFERRED INCOME TAXES

 

 

 2,722

 

 

 2,978

 

OTHER LONG-TERM ASSETS

 

 

 65,389

 

 

 66,095

 

 

 

$

 1,312,261

 

$

 1,282,078

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Accounts payable

 

$

 142,373

 

$

 133,301

 

Accrued expenses

 

 

 200,052

 

 

 198,731

 

Current portion of long-term debt

 

 

 62,588

 

 

 64,143

 

TOTAL CURRENT LIABILITIES

 

 

 405,013

 

 

 396,175

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT, less current portion

 

 

 194,730

 

 

 179,530

 

PENSION AND POSTRETIREMENT LIABILITIES

 

 

 37,028

 

 

 35,848

 

OTHER LONG-TERM LIABILITIES

 

 

 15,185

 

 

 16,790

 

DEFERRED INCOME TAXES

 

 

 58,225

 

 

 54,680

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Common stock, $0.01 par value, authorized 70,000,000 shares;
issued 2017: 28,450,025 shares; 2016: 28,174,424 shares

 

 

 285

 

 

 282

 

Additional paid-in capital

 

 

 316,334

 

 

 315,318

 

Retained earnings

 

 

 391,143

 

 

 386,917

 

   Treasury stock, at cost, 2017: 2,759,919 shares; 2016: 2,565,399 shares

 

 

 (83,656)

 

 

 (80,045)

 

Accumulated other comprehensive loss

 

 

 (22,026)

 

 

 (23,417)

 

TOTAL STOCKHOLDERS’ EQUITY

 

 

 602,080

 

 

 599,055

 

 

 

$

 1,312,261

 

$

 1,282,078

 

Note:  The balance sheet at December 31, 2016 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

 

 

 

 

 

 

 

 

 

 

Six Months Ended 

 

 

 

June 30

 

 

    

2017

    

2016

 

 

 

Unaudited

 

 

 

($ thousands)

 

 OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income

 

$

 8,370

 

$

 4,128

 

Adjustments to reconcile net loss

 

 

 

 

 

 

 

to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 48,332

 

 

 48,913

 

Amortization of intangibles

 

 

 2,271

 

 

 1,986

 

Pension settlement expense

 

 

 2,701

 

 

 1,464

 

Share-based compensation expense

 

 

 3,599

 

 

 4,200

 

Provision for losses on accounts receivable

 

 

 1,053

 

 

 418

 

Deferred income tax provision

 

 

 2,687

 

 

 13,535

 

Gain on sale of property and equipment

 

 

 (412)

 

 

 (2,486)

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Receivables

 

 

 (21,091)

 

 

 (2,292)

 

Prepaid expenses

 

 

 (2,549)

 

 

 (806)

 

Other assets

 

 

 (3,100)

 

 

 (3,286)

 

Income taxes

 

 

 458

 

 

 (4,262)

 

Accounts payable, accrued expenses, and other liabilities

 

 

 9,007

 

 

 (7,752)

 

 NET CASH PROVIDED BY OPERATING ACTIVITIES

 

 

 51,326

 

 

 53,760

 

 

 

 

 

 

 

 

 

 INVESTING ACTIVITIES

 

 

 

 

 

 

 

Purchases of property, plant and equipment, net of financings

 

 

 (27,123)

 

 

 (26,082)

 

Proceeds from sale of property and equipment

 

 

 2,751

 

 

 6,250

 

Purchases of short-term investments

 

 

 (6,223)

 

 

 (18,685)

 

Proceeds from sale of short-term investments

 

 

 9,065

 

 

 16,415

 

Business acquisitions, net of cash acquired

 

 

 —

 

 

 197

 

Capitalization of internally developed software

 

 

 (4,323)

 

 

 (5,098)

 

 NET CASH USED IN INVESTING ACTIVITIES

 

 

 (25,853)

 

 

 (27,003)

 

 

 

 

 

 

 

 

 

 FINANCING ACTIVITIES

 

 

 

 

 

 

 

Borrowings under accounts receivable securitization program

 

 

 10,000

 

 

 —

 

Payments on long-term debt

 

 

 (34,948)

 

 

 (22,827)

 

Net change in book overdrafts

 

 

 (2,478)

 

 

 (6,489)

 

Deferred financing costs

 

 

 (275)

 

 

 —

 

Payment of common stock dividends

 

 

 (4,144)

 

 

 (4,175)

 

Purchases of treasury stock

 

 

 (3,611)

 

 

 (5,116)

 

Payments for tax withheld on share-based compensation

 

 

 (2,690)

 

 

 (1,310)

 

 NET CASH USED IN FINANCING ACTIVITIES

 

 

 (38,146)

 

 

 (39,917)

 

 

 

 

 

 

 

 

 

 NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

 

 

 (12,673)

 

 

 (13,160)

 

Cash and cash equivalents and restricted cash at beginning of period

 

 

 115,242

 

 

 166,357

 

 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

 

$

 102,569

 

$

 153,197

 

 

 

 

 

 

 

 

 

 NONCASH INVESTING ACTIVITIES

 

 

 

 

 

 

 

Equipment financed

 

$

 38,593

 

$

 35,768

 

Accruals for equipment received

 

$

 3,179

 

$

 10,614

 

ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

Six Months Ended 

 

 

 

June 30

 

 

June 30

 

 

    

2017

    

 

2016

    

 

2017

    

 

2016

 

 

 

Unaudited

 

 

 

($ thousands, except percentages)

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

$

 514,537

 

 

 

 

$

 486,251

 

 

 

 

$

 978,893

 

 

 

 

$

 925,314

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest(1)

 

 

 175,929

 

 

 

 

 

 154,347

 

 

 

 

 

 328,805

 

 

 

 

 

 296,744

 

 

 

FleetNet

 

 

 36,501

 

 

 

 

 

 41,780

 

 

 

 

 

 76,739

 

 

 

 

 

 85,344

 

 

 

Total Asset-Light

 

 

 212,430

 

 

 

 

 

 196,127

 

 

 

 

 

 405,544

 

 

 

 

 

 382,088

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations

 

 

 (6,599)

 

 

 

 

 

 (5,751)

 

 

 

 

 

 (12,981)

 

 

 

 

 

 (9,320)

 

 

 

Total consolidated revenues

 

$

 720,368

 

 

 

 

$

 676,627

 

 

 

 

$

 1,371,456

 

 

 

 

$

 1,298,082

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages, and benefits

 

$

 314,252

 

 61.1

%

 

$

 303,214

 

 62.3

%

 

$

 619,095

 

 63.2

%

 

$

 599,376

 

 64.8

%

Fuel, supplies, and expenses

 

 

 75,878

 

 14.7

 

 

 

 72,279

 

 14.9

 

 

 

 151,310

 

 15.5

 

 

 

 138,968

 

 15.0

 

Operating taxes and licenses

 

 

 12,252

 

 2.4

 

 

 

 12,154

 

 2.5

 

 

 

 24,121

 

 2.5

 

 

 

 24,134

 

 2.6

 

Insurance

 

 

 7,540

 

 1.5

 

 

 

 7,660

 

 1.6

 

 

 

 14,649

 

 1.5

 

 

 

 14,126

 

 1.5

 

Communications and utilities

 

 

 4,535

 

 0.9

 

 

 

 4,279

 

 0.9

 

 

 

 9,357

 

 1.0

 

 

 

 8,651

 

 0.9

 

Depreciation and amortization

 

 

 21,324

 

 4.1

 

 

 

 20,911

 

 4.3

 

 

 

 42,307

 

 4.3

 

 

 

 41,303

 

 4.5

 

Rents and purchased transportation

 

 

 53,346

 

 10.4

 

 

 

 47,800

 

 9.8

 

 

 

 99,954

 

 10.2

 

 

 

 87,496

 

 9.5

 

(Gain) loss on sale of property and equipment

 

 

 25

 

 —

 

 

 

 (2,197)

 

 (0.5)

 

 

 

 (592)

 

 (0.1)

 

 

 

 (2,369)

 

 (0.3)

 

Pension settlement expense(2)

 

 

 533

 

 0.1

 

 

 

 424

 

 0.1

 

 

 

 1,934

 

 0.2

 

 

 

 1,101

 

 0.1

 

Other

 

 

 2,658

 

 0.5

 

 

 

 2,355

 

 0.5

 

 

 

 4,449

 

 0.5

 

 

 

 4,155

 

 0.5

 

Restructuring costs(3)

 

 

 33

 

 —

 

 

 

 —

 

 —

 

 

 

 173

 

 —

 

 

 

 —

 

 —

 

Total Asset-Based

 

 

 492,376

 

 95.7

%

 

 

 468,879

 

 96.4

%

 

 

 966,757

 

 98.8

%

 

 

 916,941

 

 99.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

 

 139,354

 

 79.2

%

 

 

 121,502

 

 78.7

%

 

 

 261,273

 

 79.5

%

 

 

 233,333

 

 78.6

%

Salaries, wages, and benefits

 

 

 16,762

 

 9.5

 

 

 

 17,668

 

 11.4

 

 

 

 33,298

 

 10.1

 

 

 

 36,249

 

 12.2

 

Supplies and expenses

 

 

 6,769

 

 3.9

 

 

 

 4,641

 

 3.0

 

 

 

 12,055

 

 3.7

 

 

 

 9,059

 

 3.1

 

Depreciation and amortization(4)

 

 

 3,337

 

 1.9

 

 

 

 3,475

 

 2.3

 

 

 

 6,703

 

 2.0

 

 

 

 6,940

 

 2.4

 

Other(2)

 

 

 3,828

 

 2.2

 

 

 

 4,888

 

 3.2

 

 

 

 7,886

 

 2.4

 

 

 

 8,982

 

 3.0

 

Restructuring costs(3)

 

 

 65

 

 —

 

 

 

 —

 

 —

 

 

 

 875

 

 0.3

 

 

 

 —

 

 —

 

 

 

 

 170,115

 

 96.7

%

 

 

 152,174

 

 98.6

%

 

 

 322,090

 

 98.0

%

 

 

 294,563

 

 99.3

%

FleetNet(2)

 

 

 35,771

 

 98.0

%

 

 

 41,184

 

 98.6

%

 

 

 75,035

 

 97.8

%

 

 

 83,764

 

 98.1

%

Total Asset-Light

 

 

 205,886

 

 

 

 

 

 193,358

 

 

 

 

 

 397,125

 

 

 

 

 

 378,327

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations(2)

 

 

 (2,628)

 

 

 

 

 

 (2,264)

 

 

 

 

 

 (4,907)

 

 

 

 

 

 (4,575)

 

 

 

Total consolidated operating expenses

 

$

 695,634

 

 96.6

%

 

$

 659,973

 

 97.5

%

 

$

 1,358,975

 

 99.1

%

 

$

 1,290,693

 

 99.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

$

 22,161

 

 

 

 

$

 17,372

 

 

 

 

 

 12,136

 

 

 

 

 

 8,373

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest(1)

 

 

 5,814

 

 

 

 

 

 2,173

 

 

 

 

 

 6,715

 

 

 

 

 

 2,181

 

 

 

FleetNet

 

 

 730

 

 

 

 

 

 596

 

 

 

 

 

 1,704

 

 

 

 

 

 1,580

 

 

 

Total Asset-Light

 

 

 6,544

 

 

 

 

 

 2,769

 

 

 

 

 

 8,419

 

 

 

 

 

 3,761

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations(5)

 

 

 (3,971)

 

 

 

 

 

 (3,487)

 

 

 

 

 

 (8,074)

 

 

 

 

 

 (4,745)

 

 

 

Total consolidated operating income

 

$

 24,734

 

 

 

 

$

 16,654

 

 

 

 

$

 12,481

 

 

 

 

$

 7,389

 

 

 


  1. The 2017 period includes the operations of Logistics & Distribution Services, LLC (“LDS”), which was acquired in September 2016.
  2. Consolidated and segment operating results for all periods presented were impacted by pension settlement expense. (See ArcBest Corporation - Consolidated and Segment Operating Income Reconciliations of GAAP to Non-GAAP Financial Measures tables.)
  3. Restructuring charges relate to the realignment of the Company’s organizational structure.
  4. Depreciation and amortization consists primarily of amortization of intangibles, including customer relationships, and software associated with acquired businesses.
  5. “Other” corporate costs include $0.3 million and $0.9 million of restructuring charges for the three and six months ended June 30, 2017, respectively. (See Segment Operating Income Reconciliations of GAAP to Non-GAAP Financial Measures table.) Other corporate costs also include additional investments to provide an improved platform for revenue growth and for offering ArcBest services across multiple operating segments.

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, such as Adjusted EBITDA, 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. Accordingly, using these 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. Management uses Adjusted EBITDA as a key measure of performance and for business planning. The measure is particularly meaningful for analysis of the Asset-Light businesses, because they exclude amortization of acquired intangibles and software, which are significant expenses resulting from strategic decisions rather than core daily operations. Additionally, Adjusted EBITDA is a primary component of the financial covenants contained in our Amended and Restated Credit Agreement. Other companies may calculate EBITDA differently; therefore, our calculation of Adjusted EBITDA 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 

 

Six Months Ended 

 

 

June 30

 

 

June 30

 

 

    

2017

 

2016

    

  

2017

 

 

2016

 

 

 

(Unaudited)

 

 

($ thousands, except per share data)

ArcBest Corporation - Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 24,734

 

$

 16,654

 

$

 12,481

 

$

 7,389

 

Restructuring charges, pre-tax(1)

 

 

 363

 

 

 —

 

 

 1,994

 

 

 —

 

Pension settlement expense, pre-tax

 

 

 744

 

 

 564

 

 

 2,701

 

 

 1,464

 

Non-GAAP amounts

 

$

 25,841

 

$

 17,218

 

$

 17,176

 

$

 8,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 15,777

 

$

 10,231

 

$

 8,370

 

$

 4,128

 

Restructuring charges, after-tax(1)

 

 

 220

 

 

 —

 

 

 1,209

 

 

 —

 

Pension settlement expense, after-tax

 

 

 454

 

 

 345

 

 

 1,650

 

 

 895

 

Life insurance proceeds and changes in cash surrender value

 

 

 (407)

 

 

 (537)

 

 

 (987)

 

 

 (892)

 

Tax benefit from vested RSUs(2)

 

 

 (1,170)

 

 

 —

 

 

 (1,245)

 

 

 —

 

Non-GAAP amounts

 

$

 14,874

 

$

 10,039

 

$

 8,997

 

$

 4,131

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Income Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 0.60

 

$

 0.39

 

$

 0.32

 

$

 0.16

 

Restructuring charges, after-tax(1)

 

 

 0.01

 

 

 —

 

 

 0.05

 

 

 —

 

Pension settlement expense, after-tax

 

 

 0.02

 

 

 0.01

 

 

 0.06

 

 

 0.03

 

Life insurance proceeds and changes in cash surrender value

 

 

 (0.02)

 

 

 (0.02)

 

 

 (0.04)

 

 

 (0.03)

 

Tax benefit from vested RSUs(2)

 

 

 (0.04)

 

 

 —

 

 

 (0.05)

 

 

 —

 

Non-GAAP amounts

 

$

 0.57

 

$

 0.38

 

$

 0.34

 

$

 0.16

 


  1. Restructuring charges relate to the realignment of the Company’s organizational structure.
  2. The Company recognized a tax benefit for the vesting of share-based compensation resulting in excess tax benefits during the three and six months ended June 30, 2017.

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective Tax Rate Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest Corporation - Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ thousands, except percentages)

 

Three Months Ended June 30, 2017

 

 

 

 

 

 

 

 

 

 

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before

 

Income

 

 

 

 

 

 

 

 

Operating

 

Other

 

Income

 

Tax

 

Net

 

Effective

 

 

Income

 

Income

 

Taxes

 

Provision

 

Income

 

Tax Rate

Amounts on GAAP basis

 

$

 24,734

 

$

 (599)

 

$

 24,135

 

$

 8,358

 

$

 15,777

 

 34.6

%  

Restructuring charges(1)

 

 

 363

 

 

 —

 

 

 363

 

 

 143

 

 

 220

 

 39.4

 

Pension settlement expense

 

 

 744

 

 

 —

 

 

 744

 

 

 290

 

 

 454

 

 39.0

 

Life insurance proceeds and changes in cash surrender value

 

 

 —

 

 

 (407)

 

 

 (407)

 

 

 —

 

 

 (407)

 

 —

 

Tax benefit from vested RSUs(2)

 

 

 —

 

 

 —

 

 

 —

 

 

 1,170

 

 

 (1,170)

 

 —

 

Non-GAAP amounts

 

$

 25,841

 

$

 (1,006)

 

$

 24,835

 

$

 9,961

 

$

 14,874

 

 40.1

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2016

 

 

 

 

 

 

 

 

 

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before

 

Income

 

 

 

 

 

 

 

 

Operating

 

Other

 

Income

 

Tax

 

Net

 

Effective

 

 

Income

 

Income

 

Taxes

 

Provision

 

Income

 

Tax Rate

Amounts on GAAP basis

 

$

 16,654

 

$

 (273)

 

$

 16,381

 

$

 6,150

 

$

 10,231

 

 37.5

%  

Pension settlement expense

 

 

 564

 

 

 —

 

 

 564

 

 

 219

 

 

 345

 

 38.8

 

Life insurance proceeds and changes in cash surrender value

 

 

 —

 

 

 (537)

 

 

 (537)

 

 

 —

 

 

 (537)

 

 —

 

Non-GAAP amounts

 

$

 17,218

 

$

 (810)

 

$

 16,408

 

$

 6,369

 

$

 10,039

 

 38.8

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2017

 

 

 

 

 

 

 

 

 

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before

 

Income

 

 

 

 

 

 

 

 

Operating

 

Other

 

Income

 

Tax

 

Net

 

Effective

 

 

Income

 

Income

 

Taxes

 

Provision

 

Income

 

Tax Rate

Amounts on GAAP basis

 

$

 12,481

 

$

 (993)

 

$

 11,488

 

$

 3,118

 

$

 8,370

 

 27.1

%  

Restructuring charges(1)

 

 

 1,994

 

 

 —

 

 

 1,994

 

 

 785

 

 

 1,209

 

 39.4

 

Pension settlement expense

 

 

 2,701

 

 

 —

 

 

 2,701

 

 

 1,051

 

 

 1,650

 

 38.9

 

Life insurance proceeds and changes in cash surrender value

 

 

 —

 

 

 (987)

 

 

 (987)

 

 

 —

 

 

 (987)

 

 —

 

Tax benefit from vested RSUs(2)

 

 

 —

 

 

 —

 

 

 —

 

 

 1,245

 

 

 (1,245)

 

 —

 

Non-GAAP amounts

 

$

 17,176

 

$

 (1,980)

 

$

 15,196

 

$

 6,199

 

$

 8,997

 

 40.8

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2016

 

 

 

 

 

 

 

 

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before

 

Income

 

 

 

 

 

 

 

 

Operating

 

Other

 

Income

 

Tax

 

Net

 

Effective

 

 

Income

 

Income

 

Taxes

 

Provision

 

Income

 

Tax Rate

Amounts on GAAP basis

 

$

 7,389

 

$

 (753)

 

$

 6,636

 

$

 2,508

 

$

 4,128

 

 37.8

%  

Pension settlement expense

 

 

 1,464

 

 

 —

 

 

 1,464

 

 

 569

 

 

 895

 

 38.9

 

Life insurance proceeds and changes in cash surrender value

 

 

 —

 

 

 (892)

 

 

 (892)

 

 

 —

 

 

 (892)

 

 —

 

Non-GAAP amounts

 

$

 8,853

 

$

 (1,645)

 

$

 7,208

 

$

 3,077

 

$

 4,131

 

 42.7

%  


  1. Restructuring charges relate to the realignment of the Company’s organizational structure
  2. The Company recognized a tax benefit for the vesting of share-based compensation resulting in excess tax benefits during the three and six months ended June 30, 2017.

 

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

Six Months Ended 

 

 

 

June 30

 

June 30

 

 

    

2017

 

2016

 

2017

 

2016

 

Segment Operating Income Reconciliations

 

(Unaudited)

 

 

 

($ thousands, except percentages)

 

Asset-Based

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 22,161

 

 95.7

%  

 

$

 17,372

 

 96.4

%  

 

$

 12,136

 

 98.8

%  

 

$

 8,373

 

 99.1

%  

 

Restructuring charges(1)

 

 

 33

 

 —

 

 

 

 —

 

 —

 

 

 

 173

 

 —

 

 

 

 —

 

 —

 

 

Pension settlement expense

 

 

 533

 

 (0.1)

 

 

 

 424

 

 (0.1)

 

 

 

 1,934

 

 (0.2)

 

 

 

 1,101

 

 (0.1)

 

 

Non-GAAP amounts

 

$

 22,727

 

 95.6

%  

 

$

 17,796

 

 96.3

%  

 

$

 14,243

 

 98.6

%  

 

$

 9,474

 

 99.0

%  

 

 

 

 

 

 

 

Asset-Light

 

 

 

 

 

 

 

 

 

 

 

ArcBest

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 5,814

 

 96.7

%  

 

$

 2,173

 

 98.6

%  

 

$

 6,715

 

 98.0

%  

 

$

 2,181

 

 99.3

%  

 

Restructuring charges(1)

 

 

 65

 

 —

 

 

 

 —

 

 —

 

 

 

 875

 

 0.3

 

 

 

 —

 

 —

 

 

Pension settlement expense

 

 

 45

 

 —

 

 

 

 12

 

 —

 

 

 

 160

 

 —

 

 

 

 30

 

 —

 

 

Non-GAAP amounts

 

$

 5,924

 

 96.7

%  

 

$

 2,185

 

 98.6

%  

 

$

 7,750

 

 98.3

%  

 

$

 2,211

 

 99.3

%  

 

 

 

 

 

 

 

FleetNet

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 730

 

 98.0

%  

 

$

 596

 

 98.6

%  

 

$

 1,704

 

 97.8

%  

 

$

 1,580

 

 98.1

%  

 

Pension settlement expense

 

 

 19

 

 (0.1)

 

 

 

 11

 

 —

 

 

 

 65

 

 (0.1)

 

 

 

 29

 

 —

 

 

Non-GAAP amounts

 

$

 749

 

 97.9

%  

 

$

 607

 

 98.6

%  

 

$

 1,769

 

 97.7

%  

 

$

 1,609

 

 98.1

%  

 

 

 

 

 

 

 

Total Asset-Light

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 6,544

 

 96.9

%  

 

$

 2,769

 

 98.6

%  

 

$

 8,419

 

 97.9

%  

 

$

 3,761

 

 99.0

%  

 

Restructuring charges(1)

 

 

 65

 

 —

 

 

 

 —

 

 —

 

 

 

 875

 

 (0.2)

 

 

 

 —

 

 —

 

 

Pension settlement expense

 

 

 64

 

 —

 

 

 

 23

 

 —

 

 

 

 225

 

 (0.1)

 

 

 

 59

 

 —

 

 

Non-GAAP amounts

 

$

 6,673

 

 96.9

%  

 

$

 2,792

 

 98.6

%  

 

$

 9,519

 

 97.6

%  

 

$

 3,820

 

 99.0

%  

 

 

 

 

 

 

 

Other and Eliminations

 

 

 

 

 

Operating Loss ($)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 (3,971)

 

 

 

 

$

 (3,487)

 

 

 

 

$

 (8,074)

 

 

 

 

$

 (4,745)

 

 

 

 

Restructuring charges(1)

 

 

 265

 

 

 

 

 

 —

 

 

 

 

 

 946

 

 

 

 

 

 —

 

 

 

 

Pension settlement expense

 

 

 147

 

 

 

 

 

 117

 

 

 

 

 

 542

 

 

 

 

 

 304

 

 

 

 

Non-GAAP amounts

 

$

 (3,559)

 

 

 

 

$

 (3,370)

 

 

 

 

$

 (6,586)

 

 

 

 

$

 (4,441)

 

 

 

 


  1. Restructuring charges relate to the realignment of the Company’s organizational structure.

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (Adjusted EBITDA)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

Six Months Ended 

 

 

June 30

 

 

June 30

 

 

    

2017

    

2016

    

2017

    

2016

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

ArcBest Corporation - Consolidated

 

 

 

 

 

Net income

 

$

 15,777

 

$

 10,231

 

$

 8,370

 

$

 4,128

 

Interest and other related financing costs

 

 

 1,389

 

 

 1,231

 

 

 2,704

 

 

 2,478

 

Income tax provision

 

 

 8,358

 

 

 6,150

 

 

 3,118

 

 

 2,508

 

Depreciation and amortization

 

 

 25,209

 

 

 25,748

 

 

 50,603

 

 

 50,899

 

Amortization of share-based compensation

 

 

 1,868

 

 

 2,491

 

 

 3,599

 

 

 4,200

 

Amortization of net actuarial losses of benefit plans and pension settlement expense

 

 

 1,695

 

 

 1,840

 

 

 4,732

 

 

 3,909

 

Restructuring charges(1)

 

 

 363

 

 

 —

 

 

 1,994

 

 

 —

 

Consolidated Adjusted EBITDA

 

$

 54,659

 

$

 47,691

 

$

 75,120

 

$

 68,122

 


  1. Restructuring charges relate to the realignment of the Company’s organizational structure.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (Adjusted EBITDA)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30

 

 

 

2017

 

2016

 

 

    

 

    

Depreciation

    

    

 

    

    

 

    

 

    

Depreciation

    

    

 

 

 

 

Operating

 

and

 

Restructuring

 

Adjusted

 

Operating

 

and

 

Adjusted

 

 

 

Income

 

Amortization

 

Charges(2)

 

EBITDA

 

Income

 

Amortization

 

EBITDA

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

Asset-Light

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest(3)

 

$

 5,814

 

$

 3,337

 

$

 65

 

$

 9,216

 

$

 2,173

 

$

 3,475

 

$

 5,648

 

FleetNet

 

 

 730

 

 

 272

 

 

 —

 

 

 1,002

 

 

 596

 

 

 301

 

 

 897

 

Total Asset-Light

 

$

 6,544

 

$

 3,609

 

$

 65

 

$

 10,218

 

$

 2,769

 

$

 3,776

 

$

 6,545

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30

 

 

 

2017

 

2016

 

 

    

 

    

Depreciation

    

    

 

    

    

 

    

 

    

Depreciation

    

    

 

 

 

 

Operating

 

and

 

Restructuring

 

Adjusted

 

Operating

 

and

 

Adjusted

 

 

 

Income

 

Amortization

 

Charges(2)

 

EBITDA

 

Income

 

Amortization

 

EBITDA

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

Asset-Light

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest(3)

 

$

 6,715

 

$

 6,703

 

$

 875

 

$

 14,293

 

$

 2,181

 

$

 6,940

 

$

 9,121

 

FleetNet

 

 

 1,704

 

 

 552

 

 

 —

 

 

 2,256

 

 

 1,580

 

 

 588

 

 

 2,168

 

Total Asset-Light

 

$

 8,419

 

$

 7,255

 

$

 875

 

$

 16,549

 

$

 3,761

 

$

 7,528

 

$

 11,289

 


  1. Restructuring charges relate to the realignment of the Company’s organizational structure.
  2. Depreciation and amortization consists primarily of amortization of intangibles and software associated with acquired businesses.

ARCBEST CORPORATION

OPERATING STATISTICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

Six Months Ended 

 

 

 

June 30

 

June 30

 

 

    

2017

    

2016

    

% Change

    

2017

    

2016

    

% Change

 

 

 

(Unaudited)

 

Asset-Based

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Workdays

 

 

 63.5

 

 

 64.0

 

 

 

 

 127.5

 

 

 127.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Billed Revenue(1) CWT

 

$

 30.84

 

$

 29.07

 

6.1%

 

$

 30.17

 

$

 28.41

 

6.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Billed Revenue(1) / Shipment

 

$

 378.18

 

$

 371.64

 

1.8%

 

$

 367.24

 

$

 364.20

 

0.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments

 

 

 1,370,497

 

 

 1,323,606

 

3.5%

 

 

 2,687,415

 

 

 2,559,929

 

5.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments / Day

 

 

 21,583

 

 

 20,681

 

4.4%

 

 

 21,078

 

 

 20,078

 

5.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage (Tons)

 

 

 840,275

 

 

 846,203

 

(0.7%)

 

 

 1,635,450

 

 

 1,640,675

 

(0.3%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tons / Day

 

 

 13,233

 

 

 13,222

 

0.1%

 

 

 12,827

 

 

 12,868

 

(0.3%)

 


  1. Revenue for undelivered freight is deferred for financial statement purposes in accordance with the Asset-Based segment revenue recognition policy. Billed revenue used for calculating revenue per hundredweight measurements has not been adjusted for the portion of revenue deferred for financial statement purposes.

 

 

 

 

 

 

 

 

 

Year Over Year % Change

 

 

Three Months Ended 

 

Six Months Ended 

 

    

June 30, 2017

 

June 30, 2017

 

 

(Unaudited)

ArcBest

 

 

 

 

 

 

 

 

 

 

 

 

 

Expedite(2)

 

 

 

 

 

 

Revenue / Shipment

 

 

14.3%

 

 

12.2%

 

 

 

 

 

 

 

Shipments / Day

 

 

4.0%

 

 

1.1%

 

 

 

 

 

 

 

Truckload and Truckload - Dedicated(3)

 

 

 

 

 

 

Revenue / Shipment

 

 

6.8%

 

 

4.7%

 

 

 

 

 

 

 

Shipments / Day

 

 

17.7%

 

 

17.1%


  1. Expedite primarily represents the expedited operations which were previously reported in the Premium Logistics (Panther) segment.
  2. Truckload represents the brokerage operations and the Truckload – Dedicated represents the dedicated operations of LDS, both of which were previously reported in the Transportation Management (ABF Logistics) segment. Comparisons are impacted by the operations of LDS, which was acquired in September 2016.

 

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