ArcBest Announces Second Quarter 2024 Results

Strong gains in productivity and service metrics 

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  • Delivered second quarter 2024 net income of $46.9 million, or $1.96 per diluted share, and non-GAAP net income of $47.4 million, or $1.98 per diluted share.
  • Significant efficiency improvements at ABF Freight while delivering the best on-time service in five years.
  • Improved Asset-Based operating income, despite higher labor contract costs and lower revenue.

 

FORT SMITH, Arkansas, August 2, 2024 — ArcBest® (Nasdaq: ARCB), a leader in supply chain logistics, today reported second quarter 2024 revenue from continuing operations of $1.08 billion, compared to $1.10 billion in the second quarter of 2023. Second quarter 2024 operating income from continuing operations was $48.8 million, compared to $42.1 million in the prior year period, and net income from continuing operations was $46.9 million, or $1.96 per diluted share, compared to $39.6 million, or $1.60 per diluted share, in 2023.

Excluding certain items in both periods as identified in the attached reconciliation tables, second quarter 2024 non‑GAAP operating income from continuing operations was $64.2 million, compared to $50.1 million in the prior year period, an improvement of $14.1 million. On a non-GAAP basis, net income from continuing operations was $47.4 million, or $1.98 per diluted share, compared to $38.0 million, or $1.54 per diluted share, in the second quarter of 2023.

“I am incredibly proud of our employees’ commitment to utilizing our quality process in pursuit of excellence every day. This dedication has led to significant improvements in our operational execution, with ABF Freight achieving its best on-time service performance in recent years,” said Judy R. McReynolds, ArcBest Chairman and CEO. “Furthermore, our substantial year-over-year improvement in operating income is a solid performance, especially considering ongoing macroeconomic headwinds.”

Results of Operations Comparisons

Asset-Based

Second Quarter 2024 Versus Second Quarter 2023

  • Revenue of $712.7 million compared to $722.0 million, a per-day decrease of 2.1 percent.
  • Total tonnage per day decrease of 20.3 percent.
  • Total shipments per day decrease of 4.8 percent.
  • Total billed revenue per hundredweight increase of 23.0 percent.
  • Core daily shipments increase of 14 percent and tonnage increase of 11 percent.
  • Operating income of $72.8 million and an operating ratio of 89.8 percent, on both a GAAP and non-GAAP basis, compared to prior-year GAAP operating income of $43.3 million and an operating ratio of 94.0 percent and prior-year non-GAAP operating income of $51.7 million and an operating ratio of 92.8 percent.

 

On a non-GAAP basis, the Asset-Based segment generated $21.1 million more operating income than second quarter 2023 despite lower revenue levels and higher labor costs, which highlights the continued focus on serving core customers well and improving operational efficiencies. Total second quarter daily shipment and tonnage levels were below the prior year, due primarily to fewer transactional shipments offset by increased core shipments, which positively impacted productivity and contributed to an improved operating ratio. On a non-GAAP basis, the Asset‑Based segment delivered its second-best operating income result for a second quarter in company history.

Pricing momentum continued in the quarter, driven by improved freight mix, higher pricing on transactional shipments and contract renewal increases of 5.1 percent. Overall, LTL industry pricing remains rational.

Compared sequentially to the first quarter of 2024, second quarter 2024 revenue per day was up 5.3 percent, tons per day improved 2.3 percent and shipments per day were better by 1.9 percent. Second quarter billed revenue per hundredweight increased 3.2 percent from first quarter 2024. The operating ratio improved 220 basis points sequentially, which was within the range of sequential quarterly changes seen in recent years.

Asset-Light

Second Quarter 2024 Versus Second Quarter 2023

  • Revenue of $395.8 million compared to $409.8 million, a per-day decrease of 4.2 percent.
  • Operating loss of $9.5 million compared to operating income of $13.2 million. On a non‑GAAP basis, operating loss of $2.5 million compared to operating income of $6.4 million.
  • Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) of negative $0.6 million compared to $8.3 million, as detailed in the attached non-GAAP reconciliation tables.

Compared to the second quarter of 2023, Asset-Light revenues were impacted by lower revenue per shipment and reduced margins associated with the soft rate environment and a higher mix of managed transportation business, which has lower revenue per shipment and margins. Shipments per day grew 12.6 percent, driven in part by customers turning to ArcBest’s managed solution to optimize their logistics spend. The decline in financial results on a year-over-year basis was primarily due to lower rates and margins for truckload solutions, reflecting the soft freight environment and excess full truckload capacity. The segment continues to benefit from productivity initiatives, as shipments per employee per day and SG&A cost per shipment both significantly improved on a year-over-year basis.

Compared sequentially to first quarter 2024, second quarter 2024 revenue per day was down one percent. Purchased transportation costs decreased sequentially as carrier rates dipped following the first quarter spike related to winter weather. The reduced purchased transportation costs were the biggest contributor to the lower non-GAAP operating loss in second quarter 2024, versus first quarter. Total shipments per day decreased 1.4 percent compared to first quarter 2024 and revenue per shipment was flat.

Conference Call

ArcBest will host a conference call with company executives to discuss the quarterly results. The call will be today, Friday, August 2, 2024 at 9:30 a.m. EDT (8:30 a.m. CDT). Interested parties are invited to listen by calling (800) 7159871 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 August 2, 2024, 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 August 15, 2024. To listen to the playback, dial (800) 770-2030. The conference call ID for the live conference call and the playback is 4743250. The conference call and playback can also be accessed through August 15, 2024 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 15,000 employees across 250 campuses and service centers, the company is a logistics powerhouse, using its technology, expertise and scale to connect shippers with the solutions they need — from ground, air and ocean transportation to fully managed supply chains. ArcBest has a long history of innovation that is enriched by deep customer relationships. With a commitment to helping customers navigate supply chain challenges now and in the future, the company is developing ground-breaking technology like Vaux™, one of the TIME Best Inventions of 2023. 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 may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding (i) our expectations about our intrinsic value or our prospects for growth and value creation and (ii) our financial outlook, position, strategies, goals, and expectations. Terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “foresee,” “intend,” “may,” “plan,” “predict,” “project,” “scheduled,” “should,” “would,” and similar expressions and the negatives of such terms are intended to identify forward-looking statements. These statements are based on management’s beliefs, assumptions, and expectations based on currently available information, are not guarantees of future performance, and involve certain risks and uncertainties (some of which are beyond our control). Although we believe that the expectations reflected in these forward-looking statements are reasonable as and when made, we cannot provide assurance that our expectations will prove to be correct. Actual outcomes and results could materially differ from what is expressed, implied, or forecasted in these statements due to a number of factors, including, but not limited to: the effects of a widespread outbreak of an illness or disease or any other public health crisis, as well as regulatory measures implemented in response to such events; external events which may adversely affect us or the third parties who provide services for us, for which our business continuity plans may not adequately prepare us, including, but not limited to, acts of war or terrorism, or military conflicts; data privacy breaches, cybersecurity incidents, and/or failures of our information systems, including disruptions or failures of services essential to our operations or upon which our information technology platforms rely; interruption or failure of third-party software or information technology systems or licenses; untimely or ineffective development and implementation of, or failure to realize the potential benefits associated with, new or enhanced technology or processes, including our customer pilot offering of Vaux; the loss or reduction of business from large customers or an overall reduction in our customer base; the timing and performance of growth initiatives and the ability to manage our cost structure; the cost, integration, and performance of any recent or future acquisitions and the inability to realize the anticipated benefits of the acquisition within the expected time period or at all; unsolicited takeover proposals, proxy contests, and other proposals/actions by activist investors; maintaining our corporate reputation and intellectual property rights; nationwide or global disruption in the supply chain resulting in increased volatility in freight volumes; competitive initiatives and pricing pressures; increased prices for and decreased availability of equipment, including 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 upskill 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; our ability to generate sufficient cash from operations to support significant ongoing capital expenditure requirements and other business initiatives; self-insurance claims, insurance premium costs, and loss of our ability to self-insure; potential impairment of long-lived assets and goodwill and intangible assets; general economic conditions and related shifts in market demand that impact the performance and needs of industries we serve and/or limit our customers’ access to adequate financial resources; increasing costs due to inflation and higher interest rates; seasonal fluctuations, adverse weather conditions, natural disasters, and climate change; 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 (“SEC”).

For additional information regarding known material factors that could cause our actual results to differ from those expressed in these forward-looking statements, 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 8K.

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

 

 

    

2024

    

2023

    

2024

    

2023

 

 

 

(Unaudited)

 

 

 

($ thousands, except share and per share data)

 

REVENUES

 

$

 1,077,831

 

$

 1,103,464

 

$

 2,114,250

 

$

 2,209,558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 1,028,986

 

 

 1,061,348

 

 

 2,042,970

 

 

 2,146,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

 48,845

 

 

 42,116

 

 

 71,280

 

 

 63,275

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (COSTS)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

 

 3,241

 

 

 3,725

 

 

 6,556

 

 

 6,658

 

Interest and other related financing costs

 

 

 (2,078)

 

 

 (2,205)

 

 

 (4,306)

 

 

 (4,532)

 

Other, net

 

 

 (781)

 

 

 5,038

 

 

 (28,980)

 

 

 6,818

 

 

 

 

 382

 

 

 6,558

 

 

 (26,730)

 

 

 8,944

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

 

 49,227

 

 

 48,674

 

 

 44,550

 

 

 72,219

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX PROVISION

 

 

 2,303

 

 

 9,074

 

 

 538

 

 

 13,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME FROM CONTINUING OPERATIONS

 

 

 46,924

 

 

 39,600

 

 

 44,012

 

 

 58,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX(1)

 

 

 —

 

 

 843

 

 

 600

 

 

 53,279

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

 46,924

 

$

 40,443

 

$

 44,612

 

$

 111,726

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC EARNINGS PER COMMON SHARE(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

 1.99

 

$

 1.65

 

$

 1.87

 

$

 2.42

 

Discontinued operations(1)

 

 

 —

 

 

 0.04

 

 

 0.03

 

 

 2.20

 

 

 

$

 1.99

 

$

 1.68

 

$

 1.89

 

$

 4.62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DILUTED EARNINGS PER COMMON SHARE(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

 1.96

 

$

 1.60

 

$

 1.83

 

$

 2.35

 

Discontinued operations(1)

 

 

 —

 

 

 0.03

 

 

 0.02

 

 

 2.14

 

 

 

$

 1.96

 

$

 1.64

 

$

 1.86

 

$

 4.49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 23,618,318

 

 

 24,064,882

 

 

 23,589,814

 

 

 24,175,893

 

Diluted

 

 

 23,919,613

 

 

 24,672,948

 

 

 24,025,499

 

 

 24,864,691

 


  1. Represents the discontinued operations of FleetNet America® (“FleetNet”), which sold on February 28, 2023. The six months ended June 30, 2024 represents adjustments related to the prior year gain on sale of FleetNet. The six months ended June 30, 2023 includes the net gain on sale of FleetNet of $52.3 million after-tax, or $2.16 basic earnings per share and $2.10 diluted earnings per share.
  2. Earnings per common share is calculated in total and may not equal the sum of earnings per common share from continuing operations and discontinued operations due to rounding.
 
  1.  

ARCBEST CORPORATION

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

June 30

 

December 31

 

 

    

2024

    

2023

 

 

 

(Unaudited)

 

Note

 

 

 

($ thousands, except share data)

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 215,590

 

$

 262,226

 

Short-term investments

 

 

 44,865

 

 

 67,842

 

Accounts receivable, less allowances (2024 - $8,788; 2023 - $10,346)

 

 

 429,511

 

 

 430,122

 

Other accounts receivable, less allowances (2024 - $654; 2023 - $731)

 

 

 11,846

 

 

 52,124

 

Prepaid expenses

 

 

 31,835

 

 

 37,034

 

Prepaid and refundable income taxes

 

 

 22,555

 

 

 24,319

 

Other

 

 

 11,011

 

 

 11,116

 

TOTAL CURRENT ASSETS

 

 

 767,213

 

 

 884,783

 

 

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT

 

 

 

 

 

 

 

Land and structures

 

 

 507,194

 

 

 460,068

 

Revenue equipment

 

 

 1,143,985

 

 

 1,126,055

 

Service, office, and other equipment

 

 

 326,633

 

 

 319,466

 

Software

 

 

 177,933

 

 

 173,354

 

Leasehold improvements

 

 

 27,675

 

 

 24,429

 

 

 

 

 2,183,420

 

 

 2,103,372

 

Less allowances for depreciation and amortization

 

 

 1,212,381

 

 

 1,188,548

 

PROPERTY, PLANT AND EQUIPMENT, NET

 

 

 971,039

 

 

 914,824

 

 

 

 

 

 

 

 

 

GOODWILL

 

 

 304,753

 

 

 304,753

 

INTANGIBLE ASSETS, NET

 

 

 94,740

 

 

 101,150

 

OPERATING RIGHT-OF-USE ASSETS

 

 

 186,779

 

 

 169,999

 

DEFERRED INCOME TAXES

 

 

 9,974

 

 

 8,140

 

OTHER LONG-TERM ASSETS

 

 

 74,031

 

 

 101,445

 

TOTAL ASSETS

 

$

 2,408,529

 

$

 2,485,094

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Accounts payable

 

$

 222,303

 

$

 214,004

 

Income taxes payable

 

 

 —

 

 

 10,410

 

Accrued expenses

 

 

 332,258

 

 

 378,029

 

Current portion of long-term debt

 

 

 58,615

 

 

 66,948

 

Current portion of operating lease liabilities

 

 

 32,674

 

 

 32,172

 

TOTAL CURRENT LIABILITIES

 

 

 645,850

 

 

 701,563

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT, less current portion

 

 

 144,972

 

 

 161,990

 

OPERATING LEASE LIABILITIES, less current portion

 

 

 185,637

 

 

 176,621

 

POSTRETIREMENT LIABILITIES, less current portion

 

 

 13,264

 

 

 13,319

 

CONTINGENT CONSIDERATION

 

 

 104,070

 

 

 92,900

 

OTHER LONG-TERM LIABILITIES

 

 

 37,606

 

 

 40,553

 

DEFERRED INCOME TAXES

 

 

 45,592

 

 

 55,785

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Common stock, $0.01 par value, authorized 70,000,000 shares;
issued 2024: 30,399,853 shares; 2023: 30,024,125 shares

 

 

 304

 

 

 300

 

Additional paid-in capital

 

 

 324,645

 

 

 340,961

 

Retained earnings

 

 

 1,311,549

 

 

 1,272,584

 

   Treasury stock, at cost, 2024: 6,711,805 shares; 2023: 6,460,137 shares

 

 

 (407,433)

 

 

 (375,806)

 

Accumulated other comprehensive income

 

 

 2,473

 

 

 4,324

 

TOTAL STOCKHOLDERS’ EQUITY

 

 

 1,231,538

 

 

 1,242,363

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

 2,408,529

 

$

 2,485,094

 


Note: The balance sheet at December 31, 2023 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

 

 

    

2024

    

2023

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

 OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income

 

$

 44,612

 

$

 111,726

 

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

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 66,693

 

 

 64,804

 

Amortization of intangibles

 

 

 6,416

 

 

 6,398

 

Share-based compensation expense

 

 

 6,322

 

 

 5,585

 

Provision for losses on accounts receivable

 

 

 1,248

 

 

 2,257

 

Change in deferred income taxes

 

 

 (11,457)

 

 

 (8,228)

 

Loss on sale of property and equipment

 

 

 565

 

 

 1,188

 

Pre-tax gain on sale of discontinued operations

 

 

 (806)

 

 

 (70,215)

 

Change in fair value of contingent consideration

 

 

 11,170

 

 

 5,040

 

Change in fair value of equity investment

 

 

 28,739

 

 

 (3,739)

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Receivables

 

 

 38,702

 

 

 83,542

 

Prepaid expenses

 

 

 5,199

 

 

 6,353

 

Other assets

 

 

 (2,789)

 

 

 759

 

Income taxes

 

 

 (8,806)

 

 

 (35,968)

 

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

 

 

 (7,262)

 

 

 3,059

 

Accounts payable, accrued expenses, and other liabilities

 

 

 (38,344)

 

 

 (68,804)

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

 

 140,202

 

 

 103,757

 

 

 

 

 

 

 

 

 

 INVESTING ACTIVITIES

 

 

 

 

 

 

 

Purchases of property, plant and equipment, net of financings

 

 

 (104,909)

 

 

 (83,171)

 

Proceeds from sale of property and equipment

 

 

 2,341

 

 

 2,853

 

Proceeds from sale of discontinued operations

 

 

 —

 

 

 100,949

 

Purchases of short-term investments

 

 

 (5,236)

 

 

 (46,858)

 

Proceeds from sale of short-term investments

 

 

 28,504

 

 

 63,693

 

Capitalization of internally developed software

 

 

 (7,779)

 

 

 (7,010)

 

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

 

 

 (87,079)

 

 

 30,456

 

 

 

 

 

 

 

 

 

 FINANCING ACTIVITIES

 

 

 

 

 

 

 

Payments on long-term debt

 

 

 (35,705)

 

 

 (35,114)

 

Net change in book overdrafts

 

 

 (4,146)

 

 

 (13,171)

 

Deferred financing costs

 

 

 —

 

 

 57

 

Payment of common stock dividends

 

 

 (5,647)

 

 

 (5,809)

 

Purchases of treasury stock

 

 

 (31,627)

 

 

 (41,240)

 

Payments for tax withheld on share-based compensation

 

 

 (22,634)

 

 

 (10,022)

 

NET CASH USED IN FINANCING ACTIVITIES

 

 

 (99,759)

 

 

 (105,299)

 

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

 (46,636)

 

 

 28,914

 

Cash and cash equivalents of continuing operations at beginning of period

 

 

 262,226

 

 

 158,264

 

Cash and cash equivalents of discontinued operations at beginning of period

 

 

 —

 

 

 108

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

 215,590

 

$

 187,286

 

 

 

 

 

 

 

 

 

 NONCASH INVESTING ACTIVITIES

 

 

 

 

 

 

 

Equipment financed

 

$

 10,354

 

$

 3,478

 

Accruals for equipment received

 

$

 3,904

 

$

 10,106

 

Lease liabilities arising from obtaining right-of-use assets

 

$

 26,001

 

$

 43,366

 


Note: The statements of cash flows for the six months ended June 30, 2024 and 2023 include cash flows from continuing operations and cash flows from discontinued operations of FleetNet, which sold on February 28, 2023.
ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

Six Months Ended 

 

 

June 30

 

 

June 30

 

 

2024

    

 

2023

    

 

2024

    

 

2023

 

 

(Unaudited)

 

 

($ thousands, except percentages)

 

REVENUES FROM CONTINUING OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

$

 712,725

 

 

 

 

$

 722,015

 

 

 

 

$

 1,384,192

 

 

 

 

$

 1,419,832

 

 

 

Asset-Light

 

 395,817

 

 

 

 

 

 409,816

 

 

 

 

 

 792,180

 

 

 

 

 

 847,908

 

 

 

Other and eliminations

 

 (30,711)

 

 

 

 

 

 (28,367)

 

 

 

 

 

 (62,122)

 

 

 

 

 

 (58,182)

 

 

 

Total consolidated revenues from continuing operations

$

 1,077,831

 

 

 

 

$

 1,103,464

 

 

 

 

$

 2,114,250

 

 

 

 

$

 2,209,558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES FROM CONTINUING OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages, and benefits

$

 352,678

 

 49.5

%

 

$

 344,538

 

 47.7

%

 

$

 697,677

 

 50.4

%

 

$

 680,143

 

 47.9

%

Fuel, supplies, and expenses

 

 82,938

 

 11.6

 

 

 

 90,897

 

 12.6

 

 

 

 163,982

 

 11.8

 

 

 

 185,185

 

 13.1

 

Operating taxes and licenses

 

 13,557

 

 1.9

 

 

 

 14,094

 

 2.0

 

 

 

 27,086

 

 2.0

 

 

 

 28,073

 

 2.0

 

Insurance

 

 16,964

 

 2.4

 

 

 

 12,889

 

 1.8

 

 

 

 31,446

 

 2.3

 

 

 

 26,162

 

 1.8

 

Communications and utilities

 

 4,412

 

 0.6

 

 

 

 4,553

 

 0.6

 

 

 

 9,211

 

 0.7

 

 

 

 9,857

 

 0.7

 

Depreciation and amortization

 

 26,646

 

 3.8

 

 

 

 25,273

 

 3.5

 

 

 

 53,653

 

 3.9

 

 

 

 50,184

 

 3.5

 

Rents and purchased transportation

 

 70,315

 

 9.9

 

 

 

 101,922

 

 14.1

 

 

 

 135,986

 

 9.8

 

 

 

 192,666

 

 13.6

 

Shared services

 

 72,245

 

 10.1

 

 

 

 74,468

 

 10.3

 

 

 

 137,159

 

 9.9

 

 

 

 139,081

 

 9.8

 

(Gain) loss on sale of property and equipment

 

 (91)

 

 —

 

 

 

 416

 

 0.1

 

 

 

 58

 

 —

 

 

 

 365

 

 —

 

Innovative technology costs(1)

 

 —

 

 —

 

 

 

 8,343

 

 1.1

 

 

 

 —

 

 —

 

 

 

 14,411

 

 1.0

 

Other

 

 269

 

 —

 

 

 

 1,297

 

 0.2

 

 

 

 1,686

 

 0.1

 

 

 

 2,909

 

 0.2

 

Total Asset-Based

 

 639,933

 

 89.8

%

 

 

 678,690

 

 94.0

%

 

 

 1,257,944

 

 90.9

%

 

 

 1,329,036

 

 93.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Light

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

$

 339,247

 

 85.7

%

 

$

 343,102

 

 83.7

%

 

$

 683,369

 

 86.3

%

 

$

 713,265

 

 84.1

%

Salaries, wages, and benefits(2)

 

 31,036

 

 7.8

 

 

 

 32,485

 

 7.9

 

 

 

 61,340

 

 7.7

 

 

 

 67,495

 

 8.0

 

Supplies and expenses(2)

 

 2,768

 

 0.7

 

 

 

 2,905

 

 0.7

 

 

 

 5,577

 

 0.7

 

 

 

 6,534

 

 0.8

 

Depreciation and amortization(3)

 

 5,039

 

 1.3

 

 

 

 5,085

 

 1.2

 

 

 

 10,117

 

 1.3

 

 

 

 10,153

 

 1.2

 

Shared services(2)

 

 17,297

 

 4.4

 

 

 

 16,500

 

 4.1

 

 

 

 33,571

 

 4.2

 

 

 

 33,014

 

 3.9

 

Contingent consideration(4)

 

 3,850

 

 1.0

 

 

 

 (10,000)

 

 (2.4)

 

 

 

 11,170

 

 1.4

 

 

 

 5,040

 

 0.6

 

Other(2)

 

 6,078

 

 1.5

 

 

 

 6,559

 

 1.6

 

 

 

 11,792

 

 1.5

 

 

 

 13,318

 

 1.5

 

Total Asset-Light

 

 405,315

 

 102.4

%

 

 

 396,636

 

 96.8

%

 

 

 816,936

 

 103.1

%

 

 

 848,819

 

 100.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations(5)

 

 (16,262)

 

 

 

 

 

 (13,978)

 

 

 

 

 

 (31,910)

 

 

 

 

 

 (31,572)

 

 

 

Total consolidated operating expenses from continuing operations

$

 1,028,986

 

 95.5

%

 

$

 1,061,348

 

 96.2

%

 

$

 2,042,970

 

 96.6

%

 

$

 2,146,283

 

 97.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

$

 72,792

 

 

 

 

$

 43,325

 

 

 

 

$

 126,248

 

 

 

 

$

 90,796

 

 

 

Asset-Light

 

 (9,498)

 

 

 

 

 

 13,180

 

 

 

 

 

 (24,756)

 

 

 

 

 

 (911)

 

 

 

Other and eliminations(5)

 

 (14,449)

 

 

 

 

 

 (14,389)

 

 

 

 

 

 (30,212)

 

 

 

 

 

 (26,610)

 

 

 

Total consolidated operating income from continuing operations

$

 48,845

 

 

 

 

$

 42,116

 

 

 

 

$

 71,280

 

 

 

 

$

 63,275

 

 

 


  1. Represents costs associated with the freight handling pilot test program at ABF Freight, for which the decision was made to pause the pilot during third quarter 2023.
  2. For the 2023 period, certain expenses have been reclassed to conform to the current year presentation, including amounts previously reported in “Shared services” that were reclassed to present “Salaries, wages, and benefits” expenses in a separate line item.
  3. Includes amortization of intangibles associated with acquired businesses.
  4. Represents the change in fair value of the contingent earnout consideration recorded for the MoLo acquisition. The liability for contingent consideration is remeasured at each quarterly reporting date, and any change in fair value as a result of the recurring assessments is recognized in operating income (loss). The contingent consideration for the MoLo acquisition will be paid based on achievement of certain targets of adjusted earnings before interest, taxes, depreciation, and amortization, as adjusted for certain items pursuant to the merger agreement, for years 2023 through 2025, including catch-up provisions.
  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, costs related to our customer pilot offering of Vaux, and other investments in ArcBest technology and innovations.

 

 

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

Non-GAAP Financial Measures

We report our financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP performance measures and ratios utilized for internal analysis provide analysts, investors, and others the same information that we use internally for purposes of assessing our core operating performance and provides meaningful comparisons between current and prior period results, as well as important information regarding performance trends. Accordingly, non-GAAP results are presented on a continuing operations basis, excluding the discontinued operations of FleetNet, which sold on February 28, 2023. 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, net income or earnings per share, as determined under GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

Six Months Ended 

 

 

June 30

 

June 30

 

 

    

2024

 

2023

    

2024

 

2023

 

ArcBest Corporation - Consolidated

 

(Unaudited)

 

 

 

($ thousands, except per share data)

 

Operating Income from Continuing Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 48,845

 

$

 42,116

 

$

 71,280

 

$

 63,275

 

Innovative technology costs, pre-tax(1)

 

 

 8,311

 

 

 14,821

 

 

 18,009

 

 

 27,299

 

Purchase accounting amortization, pre-tax(2)

 

 

 3,192

 

 

 3,192

 

 

 6,384

 

 

 6,384

 

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

 

 

 3,850

 

 

 (10,000)

 

 

 11,170

 

 

 5,040

 

Non-GAAP amounts

 

$

 64,198

 

$

 50,129

 

$

 106,843

 

$

 101,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income from Continuing Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 46,924

 

$

 39,600

 

$

 44,012

 

$

 58,447

 

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

 

 

 6,380

 

 

 11,206

 

 

 13,820

 

 

 20,686

 

Purchase accounting amortization, after-tax(2)

 

 

 2,400

 

 

 2,398

 

 

 4,801

 

 

 4,796

 

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

 

 

 2,896

 

 

 (7,512)

 

 

 8,401

 

 

 3,787

 

Change in fair value of equity investment, after-tax(4)

 

 

 —

 

 

 (2,786)

 

 

 21,603

 

 

 (2,786)

 

Life insurance proceeds and changes in cash surrender value

 

 

 (440)

 

 

 (1,086)

 

 

 (1,673)

 

 

 (2,582)

 

Tax benefit from vested RSUs(5)

 

 

 (10,777)

 

 

 (3,864)

 

 

 (11,264)

 

 

 (4,915)

 

Non-GAAP amounts

 

$

 47,383

 

$

 37,956

 

$

 79,700

 

$

 77,433

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share from Continuing Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 1.96

 

$

 1.60

 

$

 1.83

 

$

 2.35

 

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

 

 

 0.27

 

 

 0.45

 

 

 0.58

 

 

 0.83

 

Purchase accounting amortization, after-tax(2)

 

 

 0.10

 

 

 0.10

 

 

 0.20

 

 

 0.19

 

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

 

 

 0.12

 

 

 (0.30)

 

 

 0.35

 

 

 0.15

 

Change in fair value of equity investment, after-tax(4)

 

 

 —

 

 

 (0.11)

 

 

 0.90

 

 

 (0.11)

 

Life insurance proceeds and changes in cash surrender value

 

 

 (0.02)

 

 

 (0.04)

 

 

 (0.07)

 

 

 (0.10)

 

Tax benefit from vested RSUs(5)

 

 

 (0.45)

 

 

 (0.16)

 

 

 (0.47)

 

 

 (0.20)

 

Non-GAAP amounts(6)

 

$

 1.98

 

$

 1.54

 

$

 3.32

 

$

 3.11

 


See “Notes to Non-GAAP Financial Tables” for footnotes to this ArcBest Corporation – Consolidated non-GAAP table.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

Six Months Ended 

 

 

 

June 30

 

June 30

 

 

    

2024

 

2023

 

2024

 

2023

 

Segment Operating Income (Loss) Reconciliations