ArcBest Announces Second Quarter 2021 Results

 

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Investor Relations Contact: David Humphrey

 

Title: Vice President – Investor Relations

 

Phone: 479-785-6200 

 

Email: dhumphrey@arcb.com

 

 

ArcBest® Announces Second Quarter 2021 Results

 

  • Second quarter 2021 revenue of $949.0 million, and net income of $61.0 million, or $2.27 per diluted share.  On a non-GAAP1 basis, second quarter 2021 net income of $53.1 million, or $1.97 per diluted share.
  • Highest quarterly revenue and operating income in ArcBest’s history.

 

FORT SMITH, Arkansas, August 2, 2021 — ArcBest® (Nasdaq: ARCB), a leader in supply chain logistics, today reported second quarter 2021 revenue of $949.0 million compared to second quarter 2020 revenue of $627.4 million.  ArcBest’s second quarter 2021 operating income was $74.3 million and net income was $61.0 million, or $2.27 per diluted share compared to second quarter 2020 operating income of $20.4 million and net income of $15.9 million, or $0.61 per diluted share.

Excluding certain items in both periods as identified in the attached reconciliation tables, non-GAAP operating income was $74.8 million in second quarter 2021 compared to second quarter 2020 operating income of $25.1 million.  On a non-GAAP basis, net income was $53.1 million, or $1.97 per diluted share in second quarter 2021 compared to second quarter 2020 net income of $17.6 million, or $0.67 per diluted share.

“We’re very pleased to report record results for the second consecutive quarter,” said Judy R. McReynolds, ArcBest chairman, president and CEO. “Our strong results for the first half of 2021 reflect our tireless execution in a period of extremely tight capacity and high demand. We put the customer at the center of everything we do, and we’re seeing our approach pay off as we work alongside shippers and capacity providers to solve their complex challenges.”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. U.S. Generally Accepted Accounting Principles

 

Second Quarter Results of Operations Comparisons

Asset-Based

Second Quarter 2021 Versus Second Quarter 2020

  • Revenue of $652.8 million compared to $460.1 million, a per-day increase of 41.9 percent.
  • Total tonnage per day increase of 22.7 percent, with double-digit percentage increases in both LTL-rated tonnage and TL-rated spot shipment tonnage moving in the Asset-Based network.
  • Total shipments per day increase of 13.5 percent including a 13.7 percent increase in LTL-rated shipments per day and an increase of 10.8 percent in LTL-rated weight per shipment.
  • Total billed revenue per hundredweight increased 15.4 percent and was positively impacted by higher fuel surchargesRevenue per hundredweight on LTL-rated business, excluding fuel surcharge, improved by a percentage in the mid-single digits.
  • Operating income of $63.9 million and an operating ratio of 90.2 percent compared to the prior year quarter operating income of $21.0 million and an operating ratio of 95.4 percent.  On a non-GAAP basis, operating income of $71.4 million and an operating ratio of 89.0 percent compared to the prior year quarter operating income of $25.8 million and an operating ratio of 94.4 percent.

ArcBest’s Asset-Based business continued to benefit from increasing customer demand and a solid pricing environment that contributed to record-setting revenue and profits.  This quarter’s results compared favorably to the second quarter of 2020 which was significantly impacted by the COVID-19 pandemic.  Considering the strength of business from core customers, along with unseasonable demand for household goods moving services which was earlier in the year than normal, Asset-Based shipment mix was managed for customer service levels, while optimizing revenue.  In response to the need for increased use of local and linehaul purchased transportation to supplement the Asset-Based network and meet customers’ needs, second quarter hiring initiatives were successful and should produce future benefits

Asset-Light

Second Quarter 2021 Versus Second Quarter 2020

  • Revenue of $330.3 million compared to $197.9 million, a per-day increase of 66.9 percent.
  • Operating income of $16.3 million compared to the prior year quarter operating income of $2.1 million. Operating income includes a $6.9 million gain on the sale of the labor services portion of the Asset-Light moving business.  Non-GAAP operating income, as detailed in the attached reconciliation tables, excludes the gain on the sale of the moving services subsidiary and totaled $9.3 million in second quarter 2021.
  • Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) of $19.0 million compared to the prior year quarter Adjusted EBITDA of $4.9 million, as detailed in the attached reconciliation tables.

Solid customer demand and higher market rates resulting from continued tightness in available truckload capacity translated into strong second quarter revenue growth in the ArcBest segment. The increased need for expedite service and managed logistics solutions, along with new account growth, contributed to higher shipment levels and profitability.  The operating income improvement reflects higher revenue, partially offset by investments in technology and personnel associated with shipment growth. ArcBest continued to benefit from strong relationships with carrier partners to meet customers’ needs in a tight market. 

An increase in revenue per event combined with an increase in total events contributed to total revenue and profitability growth for FleetNet.

Closing Comments

“We are experiencing a strong start to 2021 and I’m proud of the work our leaders and employees are doing on behalf of our customers as their businesses normalize,” McReynolds said. Providing assured capacity is a shared mindset of employees across our organization.

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 second quarter results.  The call will be today, Monday, August 2, at 9:30 a.m. EDT (8:30 a.m. CDT). Interested parties are invited to listen by calling (800) 926-9871. Following the call, a recorded playback will be available through the end of the day on September 15, 2021. To listen to the playback, dial (800) 633‑8284 or (402) 977‑9140 (for international callers). The conference call ID for the playback is 21995988. The conference call and playback can also be accessed, through September 15, 2021, on ArcBest’s website at arcb.com.

About ArcBest

ArcBest® (Nasdaq: ARCB) is a leading logistics company with creative problem solvers who deliver innovative solutions for our customers’ supply chain needs.  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.  At ArcBest, we’re More Than Logistics®. 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 months ended June 30, 2021 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: 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; 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

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

Six Months Ended 

 

 

 

June 30

 

June 30

 

 

    

2021

    

2020

    

2021

    

2020

 

 

 

(Unaudited)

 

 

 

($ thousands, except share and per share data)

 

REVENUES

 

$

 948,973

 

$

 627,370

 

$

 1,778,186

 

$

 1,328,769

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 874,674

 

 

 606,945

 

 

 1,671,696

 

 

 1,300,525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

 74,299

 

 

 20,425

 

 

 106,490

 

 

 28,244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (COSTS)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

 

 322

 

 

 991

 

 

 714

 

 

 2,366

 

Interest and other related financing costs

 

 

 (2,274)

 

 

 (3,378)

 

 

 (4,702)

 

 

 (6,325)

 

Other, net

 

 

 1,111

 

 

 2,696

 

 

 2,303

 

 

 (1,166)

 

 

 

 

 (841)

 

 

 309

 

 

 (1,685)

 

 

 (5,125)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

 73,458

 

 

 20,734

 

 

 104,805

 

 

 23,119

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX PROVISION

 

 

 12,477

 

 

 4,854

 

 

 20,463

 

 

 5,337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

 60,981

 

$

 15,880

 

$

 84,342

 

$

 17,782

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 2.38

 

$

 0.62

 

$

 3.30

 

$

 0.70

 

Diluted

 

$

 2.27

 

$

 0.61

 

$

 3.13

 

$

 0.68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 25,586,353

 

 

 25,463,559

 

 

 25,522,453

 

 

 25,468,624

 

Diluted

 

 

 26,910,796

 

 

 26,217,957

 

 

 26,926,133

 

 

 26,252,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH DIVIDENDS DECLARED PER COMMON SHARE

 

$

 0.08

 

$

 0.08

 

$

 0.16

 

$

 0.16

 

 

 

 

 

 

ARCBEST CORPORATION

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

June 30

 

December 31

 

 

    

2021

    

2020

 

 

 

(Unaudited)

 

Note

 

 

 

($ thousands, except share data)

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 362,619

 

$

 303,954

 

Short-term investments

 

 

 59,967

 

 

 65,408

 

Accounts receivable, less allowances (2021 - $7,396; 2020 - $7,851)

 

 

 360,498

 

 

 320,870

 

Other accounts receivable, less allowances (2021 - $667; 2020 - $660)

 

 

 13,284

 

 

 14,343

 

Prepaid expenses

 

 

 36,355

 

 

 37,774

 

Prepaid and refundable income taxes

 

 

 5,871

 

 

 11,397

 

Other

 

 

 4,937

 

 

 4,422

 

TOTAL CURRENT ASSETS

 

 

 843,531

 

 

 758,168

 

 

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT

 

 

 

 

 

 

 

Land and structures

 

 

 345,829

 

 

 342,178

 

Revenue equipment

 

 

 933,264

 

 

 916,760

 

Service, office, and other equipment

 

 

 239,462

 

 

 233,810

 

Software

 

 

 170,528

 

 

 163,193

 

Leasehold improvements

 

 

 15,835

 

 

 15,156

 

 

 

 

 1,704,918

 

 

 1,671,097

 

Less allowances for depreciation and amortization

 

 

 1,038,974

 

 

 992,407

 

 

 

 

 665,944

 

 

 678,690

 

 

 

 

 

 

 

 

 

GOODWILL

 

 

 86,368

 

 

 88,320

 

INTANGIBLE ASSETS, NET

 

 

 53,084

 

 

 54,981

 

OPERATING RIGHT-OF-USE ASSETS

 

 

 109,860

 

 

 115,195

 

DEFERRED INCOME TAXES

 

 

 6,419

 

 

 6,158

 

OTHER LONG-TERM ASSETS

 

 

 76,267

 

 

 77,496

 

 

 

$

 1,841,473

 

$

 1,779,008

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Accounts payable

 

$

 204,124

 

$

 170,898

 

Income taxes payable

 

 

 7,357

 

 

 316

 

Accrued expenses

 

 

 260,185

 

 

 246,746

 

Current portion of long-term debt

 

 

 66,644

 

 

 67,105

 

Current portion of operating lease liabilities

 

 

 21,950

 

 

 21,482

 

TOTAL CURRENT LIABILITIES

 

 

 560,260

 

 

 506,547

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT, less current portion

 

 

 171,075

 

 

 217,119

 

OPERATING LEASE LIABILITIES, less current portion

 

 

 92,811

 

 

 97,839

 

POSTRETIREMENT LIABILITIES, less current portion

 

 

 18,514

 

 

 18,555

 

OTHER LONG-TERM LIABILITIES

 

 

 35,722

 

 

 37,948

 

DEFERRED INCOME TAXES

 

 

 64,957

 

 

 72,407

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Common stock, $0.01 par value, authorized 70,000,000 shares;
      issued 2021: 29,317,699 shares; 2020: 29,045,309 shares

 

 

 293

 

 

 290

 

Additional paid-in capital

 

 

 338,263

 

 

 342,354

 

Retained earnings

 

 

 676,179

 

 

 595,932

 

   Treasury stock, at cost, 2021: 3,783,227 shares; 2020: 3,656,938 shares

 

 

 (119,273)

 

 

 (111,173)

 

Accumulated other comprehensive income

 

 

 2,672

 

 

 1,190

 

TOTAL STOCKHOLDERS’ EQUITY

 

 

 898,134

 

 

 828,593

 

 

 

$

 1,841,473

 

$

 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

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended 

 

 

 

June 30

 

 

    

2021

    

2020

 

 

 

Unaudited

 

 

 

($ thousands)

 

 OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income

 

$

 84,342

 

$

 17,782

 

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

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 58,709

 

 

 56,140

 

Amortization of intangibles

 

 

 1,927

 

 

 1,959

 

Pension settlement expense

 

 

 —

 

 

 89

 

Share-based compensation expense

 

 

 5,678

 

 

 5,071

 

Provision for losses on accounts receivable

 

 

 (334)

 

 

 999

 

Change in deferred income taxes

 

 

 (7,612)

 

 

 (5,170)

 

Gain on sale of property and equipment and lease termination

 

 

 (8,408)

 

 

 (3,581)

 

Gain on sale of subsidiaries

 

 

 (6,923)

 

 

 —

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Receivables

 

 

 (37,745)

 

 

 9,626

 

Prepaid expenses

 

 

 1,419

 

 

 1,444

 

Other assets

 

 

 25

 

 

 4,358

 

Income taxes

 

 

 12,275

 

 

 8,413

 

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

 

 

 761

 

 

 (230)

 

Accounts payable, accrued expenses, and other liabilities

 

 

 41,786

 

 

 (14,833)

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

 

 145,900

 

 

 82,067

 

 

 

 

 

 

 

 

 

 INVESTING ACTIVITIES

 

 

 

 

 

 

 

Purchases of property, plant and equipment, net of financings

 

 

 (25,395)

 

 

 (16,209)

 

Proceeds from sale of property and equipment

 

 

 10,864

 

 

 7,670

 

Proceeds from sale of subsidiaries

 

 

 9,013

 

 

 —

 

Purchases of short-term investments

 

 

 (43,690)

 

 

 (97,493)

 

Proceeds from sale of short-term investments

 

 

 49,165

 

 

 46,725

 

Capitalization of internally developed software

 

 

 (9,477)

 

 

 (6,495)

 

NET CASH USED IN INVESTING ACTIVITIES

 

 

 (9,520)

 

 

 (65,802)

 

 

 

 

 

 

 

 

 

 FINANCING ACTIVITIES

 

 

 

 

 

 

 

Borrowings under credit facilities

 

 

 —

 

 

 180,000

 

Borrowings under accounts receivable securitization program

 

 

 —

 

 

 45,000

 

Payments on long-term debt

 

 

 (54,643)

 

 

 (29,185)

 

Net change in book overdrafts

 

 

 (922)

 

 

 615

 

Deferred financing costs

 

 

 (189)

 

 

 —

 

Payment of common stock dividends

 

 

 (4,095)

 

 

 (4,082)

 

Purchases of treasury stock

 

 

 (8,100)

 

 

 (3,162)

 

Payments for tax withheld on share-based compensation

 

 

 (9,766)

 

 

 (1,070)

 

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

 

 

 (77,715)

 

 

 188,116

 

 

 

 

 

 

 

 

 

NET INCREASE IN CASH AND CASH EQUIVALENTS

 

 

 58,665

 

 

 204,381

 

Cash and cash equivalents at beginning of period

 

 

 303,954

 

 

 201,909

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

 362,619

 

$

 406,290

 

 

 

 

 

 

 

 

 

 NONCASH INVESTING ACTIVITIES

 

 

 

 

 

 

 

Equipment financed

 

$

 8,138

 

$

 13,566

 

Accruals for equipment received

 

$

 5,984

 

$

 857

 

Lease liabilities arising from obtaining right-of-use assets

 

$

 6,051

 

$

 23,727

 

 

 

 

 

 

ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

Six Months Ended 

 

 

 

June 30

 

 

June 30

 

 

    

2021

    

 

2020

    

 

2021

    

 

2020

 

 

 

Unaudited

 

 

 

($ thousands, except percentages)

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

$

 652,832

 

 

 

 

$

 460,070

 

 

 

 

$

 1,209,124

 

 

 

 

$

 975,783

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest

 

 

 270,748

 

 

 

 

 

 151,467

 

 

 

 

 

 523,084

 

 

 

 

 

 316,242

 

 

 

FleetNet

 

 

 59,547

 

 

 

 

 

 46,440

 

 

 

 

 

 118,710

 

 

 

 

 

 98,879

 

 

 

Total Asset-Light

 

 

 330,295

 

 

 

 

 

 197,907

 

 

 

 

 

 641,794

 

 

 

 

 

 415,121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations

 

 

 (34,154)

 

 

 

 

 

 (30,607)

 

 

 

 

 

 (72,732)

 

 

 

 

 

 (62,135)

 

 

 

Total consolidated revenues

 

$

 948,973

 

 

 

 

$

 627,370

 

 

 

 

$

 1,778,186

 

 

 

 

$

 1,328,769

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages, and benefits

 

$

 302,370

 

 46.3

%

 

$

 248,995

 

 54.1

%

 

$

 588,064

 

 48.6

%

 

$

 532,833

 

 54.6

%

Fuel, supplies, and expenses

 

 

 64,689

 

 9.9

 

 

 

 45,675

 

 9.9

 

 

 

 125,530

 

 10.4

 

 

 

 106,900

 

 11.0

 

Operating taxes and licenses

 

 

 12,303

 

 1.9

 

 

 

 11,629

 

 2.5

 

 

 

 24,551

 

 2.0

 

 

 

 24,423

 

 2.5

 

Insurance

 

 

 9,454

 

 1.4

 

 

 

 8,247

 

 1.8

 

 

 

 18,393

 

 1.5

 

 

 

 16,071

 

 1.6

 

Communications and utilities

 

 

 4,663

 

 0.7

 

 

 

 4,342

 

 1.0

 

 

 

 9,633

 

 0.8

 

 

 

 9,053

 

 0.9

 

Depreciation and amortization

 

 

 23,308

 

 3.6

 

 

 

 23,327

 

 5.1

 

 

 

 46,792

 

 3.9

 

 

 

 46,597

 

 4.8

 

Rents and purchased transportation

 

 

 95,082

 

 14.6

 

 

 

 46,152

 

 10.0

 

 

 

 170,670

 

 14.1

 

 

 

 101,922

 

 10.4

 

Shared services

 

 

 69,372

 

 10.6

 

 

 

 45,605

 

 9.9

 

 

 

 125,238

 

 10.4

 

 

 

 94,490

 

 9.7

 

Gain on sale of property and equipment(1)

 

 

 71

 

 —

 

 

 

 (1,175)

 

 (0.2)

 

 

 

 (8,624)

 

 (0.7)

 

 

 

 (3,339)

 

 (0.3)

 

Innovative technology costs(2)

 

 

 7,532

 

 1.2

 

 

 

 4,789

 

 1.0

 

 

 

 14,400

 

 1.2

 

 

 

 9,322

 

 1.0

 

Other

 

 

 77

 

 —

 

 

 

 1,448

 

 0.3

 

 

 

 511

 

 —

 

 

 

 3,235

 

 0.3

 

Total Asset-Based

 

 

 588,921

 

 90.2

%

 

 

 439,034

 

 95.4

%

 

 

 1,115,158

 

 92.2

%

 

 

 941,507

 

 96.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

 

 226,603

 

 83.7

%

 

 

 125,090

 

 82.6

%

 

 

 437,598

 

 83.6

%

 

 

 262,272

 

 82.9

%

Supplies and expenses

 

 

 2,476

 

 0.9

 

 

 

 1,989

 

 1.3

 

 

 

 5,044

 

 1.0

 

 

 

 4,269

 

 1.3

 

Depreciation and amortization(3)

 

 

 2,366

 

 0.9

 

 

 

 2,449

 

 1.6

 

 

 

 4,752

 

 0.9

 

 

 

 4,919

 

 1.6

 

Shared services

 

 

 29,078

 

 10.7

 

 

 

 18,840

 

 12.4

 

 

 

 55,150

 

 10.5

 

 

 

 40,567

 

 12.8

 

Gain on sale of subsidiaries(4)

 

 

 (6,923)

 

 (2.6)

 

 

 

 —

 

 —

 

 

 

 (6,923)

 

 (1.3)

 

 

 

 —

 

 —

 

Other

 

 

 2,021

 

 0.8

 

 

 

 1,796

 

 1.2

 

 

 

 4,071

 

 0.8

 

 

 

 4,321

 

 1.4

 

 

 

 

 255,621

 

 94.4

%

 

 

 150,164

 

 99.1

%

 

 

 499,692

 

 95.5

%

 

 

 316,348

 

 100.0

%

FleetNet

 

 

 58,409

 

 98.1

%

 

 

 45,658

 

 98.3

%

 

 

 116,549

 

 98.2

%

 

 

 97,057

 

 98.2

%

Total Asset-Light

 

 

 314,030

 

 

 

 

 

 195,822

 

 

 

 

 

 616,241

 

 

 

 

 

 413,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations(5)

 

 

 (28,277)

 

 

 

 

 

 (27,911)

 

 

 

 

 

 (59,703)

 

 

 

 

 

 (54,387)

 

 

 

Total consolidated operating expenses

 

$

 874,674

 

 92.2

%

 

$

 606,945

 

 96.7

%

 

$

 1,671,696

 

 94.0

%

 

$

 1,300,525

 

 97.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

$

 63,911

 

 

 

 

$

 21,036

 

 

 

 

$

 93,966

 

 

 

 

$

 34,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest

 

 

 15,127

 

 

 

 

 

 1,303

 

 

 

 

 

 23,392

 

 

 

 

 

 (106)

 

 

 

FleetNet

 

 

 1,138

 

 

 

 

 

 782

 

 

 

 

 

 2,161

 

 

 

 

 

 1,822

 

 

 

Total Asset-Light

 

 

 16,265

 

 

 

 

 

 2,085

 

 

 

 

 

 25,553

 

 

 

 

 

 1,716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations(5)

 

 

 (5,877)

 

 

 

 

 

 (2,696)

 

 

 

 

 

 (13,029)

 

 

 

 

 

 (7,748)

 

 

 

Total consolidated operating income

 

$

 74,299

 

 

 

 

$

 20,425

 

 

 

 

$

 106,490

 

 

 

 

$

 28,244

 

 

 


  1. The six months ended June 30, 2021 includes an $8.6 million gain on the sale of an unutilized service center property.
  2. Represents costs associated with the freight handling pilot test program at ABF Freight.
  3. Depreciation and amortization consists primarily of amortization of intangibles, including customer relationships, and software associated with acquired businesses.
  4. Gain recognized for the three and six months ended June 30, 2021 relates to the sale of the labor services portion of the ArcBest segment’s moving business in May 2021.
  5. “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 

 

Six Months Ended 

 

 

June 30

 

 

June 30

 

 

    

2021

 

2020

    

  

2021

 

 

2020

 

ArcBest Corporation - Consolidated

 

(Unaudited)

 

 

 

($ thousands, except per share data)

 

Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 74,299

 

$

 20,425

 

$

 106,490

 

$

 28,244

 

Innovative technology costs, pre-tax(1)

 

 

 7,432

 

 

 4,699

 

 

 14,342

 

 

 9,299

 

Gain on sale of subsidiaries, pre-tax(2)

 

 

 (6,923)

 

 

 —

 

 

 (6,923)

 

 

 —

 

Non-GAAP amounts

 

$

 74,808

 

$

 25,124

 

$

 113,909

 

$

 37,543

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 60,981

 

$

 15,880

 

$

 84,342

 

$

 17,782

 

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

 

 

 5,642

 

 

 3,637

 

 

 10,903

 

 

 7,207

 

Gain on sale of subsidiaries, after-tax(2)

 

 

 (5,437)

 

 

 —

 

 

 (5,437)

 

 

 —

 

Nonunion pension expense, including settlement expense, after-tax(3)

 

 

 —

 

 

 —

 

 

 —

 

 

 66

 

Life insurance proceeds and changes in cash surrender value

 

 

 (1,248)

 

 

 (2,560)

 

 

 (2,514)

 

 

 1,245

 

Tax expense (benefit) from vested RSUs(4)

 

 

 (6,796)

 

 

 659

 

 

 (6,931)

 

 

 679

 

Non-GAAP amounts

 

$

 53,142

 

$

 17,616

 

$

 80,363

 

$

 26,979

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 2.27

 

$

 0.61

 

$

 3.13

 

$

 0.68

 

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

 

 

 0.21

 

 

 0.14

 

 

 0.40

 

 

 0.27

 

Gain on sale of subsidiaries, after-tax(2)

 

 

 (0.20)

 

 

 —

 

 

 (0.20)

 

 

 —

 

Nonunion pension expense, including settlement expense, after-tax(3)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

Life insurance proceeds and changes in cash surrender value

 

 

 (0.05)

 

 

 (0.10)

 

 

 (0.09)

 

 

 0.05

 

Tax expense (benefit) from vested RSUs(4)

 

 

 (0.25)

 

 

 0.03

 

 

 (0.26)

 

 

 0.03

 

Non-GAAP amounts(5)

 

$

 1.97

 

$

 0.67

 

$

 2.98

 

$

 1.03

 

 


  1. Represents costs associated with the freight handling pilot test program at ABF Freight.
  2. Gain recognized for the three and six months ended June 30, 2021 relates to the sale of the labor services portion of ArcBest segment’s moving business in May 2021.
  3. For the six months ended June 30, 2020, represents pension settlement expense related to the Company’s supplemental benefit plan.
  4. The Company recognized the tax impact for the vesting of share-based compensation resulting in excess tax expense (benefit) during the three and six months ended June 30, 2021 and 2020.
  5. Non-GAAP EPS is calculated in total and may not foot due to rounding.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

Six Months Ended 

 

 

 

June 30

 

June 30

 

 

    

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

 

$

 63,911

 

 90.2

%  

 

$

 21,036

 

 95.4

%  

 

$

 93,966

 

 92.2

%  

 

$

 34,276

 

 96.5

%  

 

Innovative technology costs, pre-tax(1)

 

 

 7,532

 

 (1.2)

 

 

 

 4,789

 

 (1.0)

 

 

 

 14,400

 

 (1.2)

 

 

 

 9,322

 

 (1.0)

 

 

Non-GAAP amounts(3)

 

$

 71,443

 

 89.0

%  

 

$

 25,825

 

 94.4

%  

 

$

 108,366

 

 91.0

%  

 

$

 43,598

 

 95.5

%  

 

 

 

 

 

 

 

Asset-Light

 

 

 

 

 

 

 

 

 

 

 

ArcBest Segment

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 15,127

 

 94.4

%  

 

$

 1,303

 

 99.1

%  

 

$

 23,392

 

 95.5

%  

 

$

 (106)

 

 100.0

%  

 

Gain on sale of subsidiaries, pre-tax(2)

 

 

 (6,923)

 

 2.6

 

 

 

 —

 

 —

 

 

 

 (6,923)

 

 1.3

 

 

 

 —

 

 —

 

 

Non-GAAP amounts

 

$

 8,204

 

 97.0

%  

 

$

 1,303

 

 99.1

%  

 

$

 16,469

 

 96.8

%  

 

$

 (106)

 

 100.0

%  

 

 

 

 

 

 

 

FleetNet Segment

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 1,138

 

 98.1

%  

 

$

 782

 

 98.3

%  

 

$

 2,161

 

 98.2

%  

 

$

 1,822

 

 98.2

%  

 

 

 

 

 

 

 

Total Asset-Light

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 16,265

 

 95.1

%  

 

$

 2,085

 

 98.9

%  

 

$

 25,553

 

 96.0

%  

 

$

 1,716

 

 99.6

%  

 

Gain on sale of subsidiaries, pre-tax(2)

 

 

 (6,923)

 

 2.1

 

 

 

 —

 

 —

 

 

 

 (6,923)

 

 1.1

 

 

 

 —

 

 —

 

 

Non-GAAP amounts

 

$

 9,342

 

 97.2

%  

 

$

 2,085

 

 98.9

%  

 

$

 18,630

 

 97.1

%  

 

$

 1,716

 

 99.6

%  

 

 

 

 

 

 

 

Other and Eliminations

 

 

 

 

 

Operating Loss ($)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 (5,877)

 

 

 

 

$

 (2,696)

 

 

 

 

$

 (13,029)

 

 

 

 

$

 (7,748)

 

 

 

 

Innovative technology costs, pre-tax(1)

 

 

 (100)

 

 

 

 

 

 (90)

 

 

 

 

 

 (58)

 

 

 

 

 

 (23)

 

 

 

 

Non-GAAP amounts

 

$

 (5,977)

 

 

 

 

$

 (2,786)

 

 

 

 

$

 (13,087)

 

 

 

 

$

 (7,771)

 

 

 

 

 


  1. Represents costs associated with the freight handling pilot test program at ABF Freight.
  2. Gain recognized for the three and six months ended June 30, 2021 relates to the sale of the labor services portion of the ArcBest segment’s moving business in May 2021.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective Tax Rate Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest Corporation - Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ thousands, except percentages)

 

Three Months Ended June 30, 2021

 

 

 

 

 

Other

 

Income

 

Income

 

 

 

 

 

 

 

 

Operating

 

Income

 

Before Income

 

Tax

 

Net

 

 

 

 

Income

 

(Costs)

 

Taxes

 

Provision

 

Income

 

Tax Rate(4)

Amounts on GAAP basis

 

$

 74,299

 

$

 (841)

 

$

 73,458

 

$

 12,477

 

$

 60,981

 

 17.0

%  

Innovative technology costs(1)

 

 

 7,432

 

 

 166

 

 

 7,598

 

 

 1,956

 

 

 5,642

 

 25.7

 

Gain on sale of subsidiaries(2)

 

 

 (6,923)

 

 

 —

 

 

 (6,923)

 

 

 (1,486)

 

 

 (5,437)

 

 (21.5)

 

Life insurance proceeds and changes in cash surrender value

 

 

 —

 

 

 (1,248)

 

 

 (1,248)

 

 

 —

 

 

 (1,248)

 

 —

 

Tax benefit from vested RSUs(3)

 

 

 —

 

 

 —

 

 

 —

 

 

 6,796

 

 

 (6,796)

 

 —

 

Non-GAAP amounts

 

$

 74,808

 

$

 (1,923)

 

$

 72,885

 

$

 19,743

 

$

 53,142

 

 27.1

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2021

 

 

 

 

Other

 

Income Before

 

Income

 

 

 

 

 

 

 

 

Operating