ArcBest Announces Third 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

ArcBest® Announces Third Quarter 2017 Results

  • Third quarter 2017 revenue of $744.3 million, and net income of $14.8 million, or $0.56 per diluted share.  On a non-GAAP basis, third quarter 2017 net income of $15.5 million, or $0.59 per diluted share.
  • Increased revenue and profit in Asset-Based services positively impacted by improved pricing 
  • Third quarter Asset-Light revenue increase and operating income improvement impacted by positive Expedite trends

FORT SMITH, Arkansas, November 3, 2017 — ArcBest® (Nasdaq: ARCB) today reported third quarter 2017 revenue of $744.3 million compared to third quarter 2016 revenue of $713.9 million.  Third quarter 2017 operating income was $24.3 million compared to operating income of $20.4 million last year.  Net income of $14.8 million, or $0.56 per diluted share, compared to third quarter 2016 net income of $12.9 million, or $0.49 per diluted share.    

Excluding certain items in both periods as identified in the attached reconciliation tables, non-GAAP net income was $15.5 million, or $0.59 per diluted share, in third quarter 2017 compared to third quarter 2016 net income of $12.6 million, or $0.48 per diluted share. On a non-GAAP basis, operating income was $27.0 million in third quarter 2017 compared to third quarter 2016 operating income of $21.7 million.  Cost controls resulting from the enhanced market approach implemented at the beginning of the year continue to be in-line with expectations.  

“Our enhanced market approach, tighter capacity and a generally favorable pricing environment all contributed to improved third quarter results,” said ArcBest Chairman, President and CEO Judy R. McReynolds. “Our expedited business was particularly strong, and on the asset-based side, we continue to make progress on the implementation of our space-based pricing initiative, which took effect August 1. While we experienced some negative effects in our asset-based business from hurricanes in the southern U.S. and Puerto Rico, customers seeking total logistics solutions and guaranteed capacity are increasingly looking to ArcBest to fulfill their supply chain needs.”

Asset-Based

Results of Operations

Third Quarter 2017 Versus Third Quarter 2016

  • Revenue of $517.4 million compared to $509.0 million, a per-day increase of 4.1 percent.
  • Tonnage per day decrease of 3.0 percent.
  • Shipments per day decrease 1.4 percent.
  • Total billed revenue per hundredweight increased 6.6 percent that 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 $21.8 million and an operating ratio of 95.8 percent compared to operating income of $18.1 million and an operating ratio of 96.5 percent.  On a non-GAAP basis, operating income of $23.5 million and an operating ratio of 95.5 percent compared to operating income of $18.6 million and an operating ratio of 96.4 percent.

In the midst of a solid LTL pricing environment, yield management actions implemented throughout 2017, including this quarter’s space-based pricing initiative, resulted in higher revenue per hundredweight and improved revenue per shipment.  Though freight tonnage was lower, primarily due to purposeful reductions in asset-based truckload-rated shipments, monthly total weight per shipment trends improved throughout the quarter and LTL weight per shipment increased slightly.  In addition, one and a half fewer working days in the quarter impacted operating results and comparisons to previous periods.  On the expense side, costs were reduced in a number of areas through cost management efforts including lower linehaul costs influenced by our optimization technologies and reductions in purchased transportation.  However, these cost reductions were offset by reduced pickup and delivery productivity, higher rental costs and increased health, welfare and pension expenses for union employees.

Asset-Light

Results of Operations

Third Quarter 2017 Versus Third Quarter 2016

  • Revenue of $235.3 million compared to $210.1 million.
  • Operating income of $8.5 million compared to operating income of $6.4 million. On a non-GAAP basis, operating income of $8.7 million compared to $6.4 million.
  • Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) of $11.8 million compared to Adjusted EBITDA of $10.3 million.

The increase in ArcBest’s Asset-Light revenue and operating income was driven by solid growth in expedite services and year-over-year business increases associated with the early September 2016 acquisition of a dedicated truckload company.  Combined with a slight increase in average daily expedite shipments, the increase in expedite revenue was the result of significant growth in average shipment revenue associated with positive changes in equipment mix and longer average length of haul.  Truckload revenue improved slightly as a result of increased revenue per shipment despite lower shipment counts.  Truckload net revenue margins were below the same period last year due to the challenges of implementing customer rate increases in line with rising purchased transportation costs associated with tighter capacity in the truckload marketplace.  Despite a reduction in total events associated with changes in customer mix, FleetNet’s third quarter revenue and operating income improved as a result of focused cost controls and labor reductions.

Closing Comments

“As a logistics company with diverse, reliable and unique capacity options, ArcBest strives to offer a best-in-class experience for all of our supply chain solutions,” said McReynolds. “The initiatives we have embarked on this year to optimize our structure and offer most services under the ArcBest brand have positioned us well as we are winning more business from existing customers and creating new relationships that were previously outside our reach. At the same time, we have worked hard to manage costs and ensure that the value we provide for our services is appropriately compensated.”

Conference Call

ArcBest will host a conference call with company executives to discuss the 2017 third quarter results. The call will be today, Friday, November 3, at 9:30 a.m. ET (8:30 a.m. CT). Interested parties are invited to listen by calling (800) 771-6883. Following the call, a recorded playback will be available through the end of the day on December 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 21860068. The conference call and playback can also be accessed, through December 15, 2017, on ArcBest’s website at arcb.com.

About ArcBest

ArcBest® (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 September 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 ArcBest® and its reportable segments.

Restructuring and Operating Segment Restatements and Reclassifications. 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. During the third quarter of 2017, the Company modified the presentation of segment expenses allocated from shared services. Previously, expenses allocated from company-wide functions were categorized in individual segment expense line items by type of expense. Allocated expense is now presented on a single “Shared services” line within the Company’s operating segment disclosures. Reclassifications have been made to the prior period operating segment expenses to conform to the current year presentation. There was no impact on each segment’s total expenses as a result of the reclassifications.

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30

 

September 30

 

 

 

2017

 

2016

 

2017

 

2016

 

 

 

(Unaudited)

 

 

 

($ thousands, except share and per share data)

 

REVENUES

 

$

 744,280

 

$

 713,923

 

$

 2,115,736

 

$

 2,012,005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 719,931

 

 

 693,553

 

 

 2,078,906

 

 

 1,984,246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

 24,349

 

 

 20,370

 

 

 36,830

 

 

 27,759

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (COSTS)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

 

 346

 

 

 390

 

 

 905

 

 

 1,178

 

Interest and other related financing costs

 

 

 (1,706)

 

 

 (1,296)

 

 

 (4,410)

 

 

 (3,774)

 

Other, net

 

 

 1,079

 

 

 1,091

 

 

 2,231

 

 

 2,028

 

 

 

 

 (281)

 

 

 185

 

 

 (1,274)

 

 

 (568)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

 24,068

 

 

 20,555

 

 

 35,556

 

 

 27,191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX PROVISION

 

 

 9,280

 

 

 7,615

 

 

 12,398

 

 

 10,123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

 14,788

 

$

 12,940

 

$

 23,158

 

$

 17,068

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER COMMON SHARE(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 0.57

 

$

 0.50

 

$

 0.90

 

$

 0.66

 

Diluted

 

$

 0.56

 

$

 0.49

 

$

 0.87

 

$

 0.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 25,671,535

 

 

 25,724,550

 

 

 25,699,306

 

 

 25,779,166

 

Diluted

 

 

 26,393,359

 

 

 26,211,524

 

 

 26,373,382

 

 

 26,263,732

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH DIVIDENDS DECLARED PER COMMON SHARE

 

$

 0.08

 

$

 0.08

 

$

 0.24

 

$

 0.24

 


  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

 

 

 

 

 

 

 

 

 

 

September 30

 

December 31

 

 

 

2017

 

2016

 

 

 

(Unaudited)

 

Note

 

 

 

($ thousands, except share data)

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 109,034

 

$

 114,280

 

Short-term investments

 

 

 57,052

 

 

 56,838

 

Restricted cash

 

 

 —

 

 

 962

 

   Accounts receivable, less allowances (2017 - $6,313; 2016 - $5,437)

 

 

 301,941

 

 

 260,643

 

   Other accounts receivable, less allowances (2017 - $906; 2016 - $849)             

 

 

 15,337

 

 

 22,041

 

Prepaid expenses

 

 

 22,156

 

 

 22,124

 

Prepaid and refundable income taxes

 

 

 4,673

 

 

 9,909

 

Other

 

 

 8,834

 

 

 4,300

 

TOTAL CURRENT ASSETS

 

 

 519,027

 

 

 491,097

 

 

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT

 

 

 

 

 

 

 

Land and structures

 

 

 340,889

 

 

 324,086

 

Revenue equipment

 

 

 773,859

 

 

 743,860

 

Service, office, and other equipment

 

 

 168,627

 

 

 154,119

 

Software

 

 

 127,109

 

 

 120,877

 

Leasehold improvements

 

 

 9,228

 

 

 8,758

 

 

 

 

 1,419,712

 

 

 1,351,700

 

Less allowances for depreciation and amortization

 

 

 850,054

 

 

 819,174

 

 

 

 

 569,658

 

 

 532,526

 

 

 

 

 

 

 

 

 

GOODWILL

 

 

 108,981

 

 

 108,875

 

INTANGIBLE ASSETS, NET

 

 

 77,103

 

 

 80,507

 

DEFERRED INCOME TAXES

 

 

 2,747

 

 

 2,978

 

OTHER LONG-TERM ASSETS

 

 

 66,916

 

 

 66,095

 

 

 

$

 1,344,432

 

$

 1,282,078

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Accounts payable

 

$

 147,889

 

$

 133,301

 

Income taxes payable

 

 

 167

 

 

 —

 

Accrued expenses

 

 

 202,408

 

 

 198,731

 

Current portion of long-term debt

 

 

 62,837

 

 

 64,143

 

TOTAL CURRENT LIABILITIES

 

 

 413,301

 

 

 396,175

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT, less current portion

 

 

 200,181

 

 

 179,530

 

PENSION AND POSTRETIREMENT LIABILITIES

 

 

 40,168

 

 

 35,848

 

OTHER LONG-TERM LIABILITIES

 

 

 16,585

 

 

 16,790

 

DEFERRED INCOME TAXES

 

 

 60,632

 

 

 54,680

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Common stock, $0.01 par value, authorized 70,000,000 shares;
issued 2017: 28,478,150 shares; 2016: 28,174,424 shares

 

 

 285

 

 

 282

 

Additional paid-in capital

 

 

 317,677

 

 

 315,318

 

Retained earnings

 

 

 403,868

 

 

 386,917

 

   Treasury stock, at cost, 2017: 2,851,578 shares; 2016: 2,565,399 shares

 

 

 (86,064)

 

 

 (80,045)

 

Accumulated other comprehensive loss

 

 

 (22,201)

 

 

 (23,417)

 

TOTAL STOCKHOLDERS’ EQUITY

 

 

 613,565

 

 

 599,055

 

 

 

$

 1,344,432

 

$

 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

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

September 30

 

 

 

2017

 

2016

 

 

 

Unaudited

 

 

 

($ thousands)

 

 OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income

 

$

 23,158

 

$

 17,068

 

Adjustments to reconcile net income

 

 

 

 

 

 

 

to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 73,417

 

 

 73,633

 

Amortization of intangibles

 

 

 3,404

 

 

 3,059

 

Pension settlement expense

 

 

 3,644

 

 

 2,267

 

Share-based compensation expense

 

 

 5,070

 

 

 6,151

 

Provision for losses on accounts receivable

 

 

 705

 

 

 787

 

Deferred income tax provision

 

 

 5,846

 

 

 14,199

 

Gain on sale of property and equipment

 

 

 (409)

 

 

 (2,581)

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Receivables

 

 

 (35,590)

 

 

 (17,465)

 

Prepaid expenses

 

 

 (37)

 

 

 1,108

 

Other assets

 

 

 (3,962)

 

 

 (3,655)

 

Income taxes

 

 

 5,180

 

 

 2,583

 

Accounts payable, accrued expenses, and other liabilities

 

 

 17,915

 

 

 (7,812)

 

 NET CASH PROVIDED BY OPERATING ACTIVITIES

 

 

 98,341

 

 

 89,342

 

 

 

 

 

 

 

 

 

 INVESTING ACTIVITIES

 

 

 

 

 

 

 

Purchases of property, plant and equipment, net of financings

 

 

 (44,377)

 

 

 (45,774)

 

Proceeds from sale of property and equipment

 

 

 3,585

 

 

 7,296

 

Purchases of short-term investments

 

 

 (50,274)

 

 

 (51,760)

 

Proceeds from sale of short-term investments

 

 

 49,980

 

 

 54,027

 

Business acquisitions, net of cash acquired

 

 

 —

 

 

 (24,805)

 

Capitalization of internally developed software

 

 

 (7,225)

 

 

 (7,660)

 

 NET CASH USED IN INVESTING ACTIVITIES

 

 

 (48,311)

 

 

 (68,676)

 

 

 

 

 

 

 

 

 

 FINANCING ACTIVITIES

 

 

 

 

 

 

 

Borrowings under accounts receivable securitization program

 

 

 10,000

 

 

 —

 

Payments on long-term debt

 

 

 (52,262)

 

 

 (36,579)

 

Net change in book overdrafts

 

 

 2,289

 

 

 (3,829)

 

Deferred financing costs

 

 

 (959)

 

 

 —

 

Payment of common stock dividends

 

 

 (6,207)

 

 

 (6,249)

 

Purchases of treasury stock

 

 

 (6,019)

 

 

 (7,594)

 

Payments for tax withheld on share-based compensation

 

 

 (3,080)

 

 

 (1,415)

 

 NET CASH USED IN FINANCING ACTIVITIES

 

 

 (56,238)

 

 

 (55,666)

 

 

 

 

 

 

 

 

 

 NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

 

 

 (6,208)

 

 

 (35,000)

 

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

 

$

 109,034

 

$

 131,357

 

 

 

 

 

 

 

 

 

 NONCASH INVESTING ACTIVITIES

 

 

 

 

 

 

 

Equipment financed

 

$

 61,607

 

$

 61,684

 

Accruals for equipment received

 

$

 851

 

$

 9,391

 

ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30

 

 

September 30

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

Unaudited

 

 

 

($ thousands, except percentages)

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

$

 517,417

 

 

 

 

$

 509,001

 

 

 

 

$

 1,496,310

 

 

 

 

$

 1,434,315

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest(1)

 

 

 195,749

 

 

 

 

 

 170,991

 

 

 

 

 

 524,554

 

 

 

 

 

 467,735

 

 

 

FleetNet

 

 

 39,568

 

 

 

 

 

 39,073

 

 

 

 

 

 116,307

 

 

 

 

 

 124,417

 

 

 

Total Asset-Light

 

 

 235,317

 

 

 

 

 

 210,064

 

 

 

 

 

 640,861

 

 

 

 

 

 592,152

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations

 

 

 (8,454)

 

 

 

 

 

 (5,142)

 

 

 

 

 

 (21,435)

 

 

 

 

 

 (14,462)

 

 

 

Total consolidated revenues

 

$

 744,280

 

 

 

 

$

 713,923

 

 

 

 

$

 2,115,736

 

 

 

 

$

 2,012,005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages, and benefits

 

$

 286,918

 

 55.5

%

 

$

 284,240

 

 55.9

%

 

$

 853,474

 

 57.0

%

 

$

 829,312

 

 57.8

%

Fuel, supplies, and expenses

 

 

 57,395

 

 11.1

 

 

 

 55,017

 

 10.8

 

 

 

 174,326

 

 11.7

 

 

 

 160,532

 

 11.2

 

Operating taxes and licenses

 

 

 11,712

 

 2.3

 

 

 

 12,237

 

 2.4

 

 

 

 35,726

 

 2.4

 

 

 

 36,239

 

 2.5

 

Insurance

 

 

 8,348

 

 1.6

 

 

 

 8,464

 

 1.7

 

 

 

 23,068

 

 1.5

 

 

 

 22,492

 

 1.6

 

Communications and utilities

 

 

 4,575

 

 0.9

 

 

 

 4,114

 

 0.8

 

 

 

 13,260

 

 0.9

 

 

 

 11,847

 

 0.8

 

Depreciation and amortization

 

 

 20,543

 

 4.0

 

 

 

 19,950

 

 3.9

 

 

 

 61,777

 

 4.1

 

 

 

 59,614

 

 4.2

 

Rents and purchased transportation

 

 

 55,381

 

 10.7

 

 

 

 58,221

 

 11.4

 

 

 

 154,995

 

 10.3

 

 

 

 145,439

 

 10.2

 

Shared services(2)

 

 

 48,255

 

 9.3

 

 

 

 46,981

 

 9.2

 

 

 

 138,700

 

 9.3

 

 

 

 139,449

 

 9.7

 

Gain on sale of property and equipment

 

 

 (7)

 

 —

 

 

 

 (81)

 

 —

 

 

 

 (599)

 

 —

 

 

 

 (2,450)

 

 (0.2)

 

Nonunion pension expense, including settlement(3)

 

 

 1,676

 

 0.3

 

 

 

 545

 

 0.1

 

 

 

 3,474

 

 0.2

 

 

 

 1,929

 

 0.1

 

Other

 

 

 757

 

 0.1

 

 

 

 1,263

 

 0.3

 

 

 

 3,936

 

 0.3

 

 

 

 3,489

 

 0.3

 

Restructuring costs(4)

 

 

 95

 

 —

 

 

 

 —

 

 —

 

 

 

 268

 

 —

 

 

 

 —

 

 —

 

Total Asset-Based

 

 

 495,648

 

 95.8

%

 

 

 490,951

 

 96.5

%

 

 

 1,462,405

 

 97.7

%

 

 

 1,407,892

 

 98.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

 

 155,894

 

 79.6

%

 

 

 132,860

 

 77.7

%

 

 

 417,313

 

 79.6

%

 

 

 366,346

 

 78.3

%

Supplies and expenses

 

 

 3,853

 

 2.0

 

 

 

 3,263

 

 1.9

 

 

 

 11,265

 

 2.1

 

 

 

 9,282

 

 2.0

 

Depreciation and amortization(5)

 

 

 3,015

 

 1.5

 

 

 

 3,684

 

 2.1

 

 

 

 9,511

 

 1.8

 

 

 

 10,497

 

 2.2

 

Shared services(2)(3)

 

 

 22,565

 

 11.5

 

 

 

 21,724

 

 12.7

 

 

 

 63,115

 

 12.0

 

 

 

 64,928

 

 13.9

 

Other

 

 

 2,817

 

 1.5

 

 

 

 3,191

 

 1.9

 

 

 

 8,155

 

 1.6

 

 

 

 8,232

 

 1.8

 

Restructuring costs(4)

 

 

 —

 

 —

 

 

 

 —

 

 —

 

 

 

 875

 

 0.2

 

 

 

 —

 

 —

 

 

 

 

 188,144

 

 96.1

%

 

 

 164,722

 

 96.3

%

 

 

 510,234

 

 97.3

%

 

 

 459,285

 

 98.2

%

FleetNet(3)

 

 

 38,695

 

 97.8

%

 

 

 38,952

 

 99.7

%

 

 

 113,730

 

 97.8

%

 

 

 122,716

 

 98.6

%

Total Asset-Light

 

 

 226,839

 

 

 

 

 

 203,674

 

 

 

 

 

 623,964

 

 

 

 

 

 582,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations(3)

 

 

 (2,556)

 

 

 

 

 

 (1,072)

 

 

 

 

 

 (7,463)

 

 

 

 

 

 (5,647)

 

 

 

Total consolidated operating expenses

 

$

 719,931

 

 96.7

%

 

$

 693,553

 

 97.1

%

 

$

 2,078,906

 

 98.3

%

 

$

 1,984,246

 

 98.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

$

 21,769

 

 

 

 

$

 18,050

 

 

 

 

 

 33,905

 

 

 

 

 

 26,423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ArcBest(1)

 

 

 7,605

 

 

 

 

 

 6,269

 

 

 

 

 

 14,320

 

 

 

 

 

 8,450

 

 

 

FleetNet

 

 

 873

 

 

 

 

 

 121

 

 

 

 

 

 2,577

 

 

 

 

 

 1,701

 

 

 

Total Asset-Light

 

 

 8,478

 

 

 

 

 

 6,390

 

 

 

 

 

 16,897

 

 

 

 

 

 10,151

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations(6)

 

 

 (5,898)

 

 

 

 

 

 (4,070)

 

 

 

 

 

 (13,972)

 

 

 

 

 

 (8,815)

 

 

 

Total consolidated operating income

 

$

 24,349

 

 

 

 

$

 20,370

 

 

 

 

$

 36,830

 

 

 

 

$

 27,759

 

 

 


  1. The 2017 period includes the operations of Logistics & Distribution Services, LLC (“LDS”), which was acquired in September 2016.
  2. The presentation of segment expenses allocated from shared services was modified during third quarter 2017 and reclassifications have been made to the prior period operating segment expenses to conform to the current year presentation. (See the Restructuring and Operating Segment Restatements and Reclassifications note preceding the tables presented in this release.)
  3. Consolidated and segment operating results for all periods presented were impacted by nonunion pension expense, including settlement. (See ArcBest Corporation - Consolidated and Segment Operating Income Reconciliations of GAAP to Non-GAAP Financial Measures tables.)
  4. Restructuring charges relate to the realignment of the Company’s organizational structure.
  5. Depreciation and amortization consists primarily of amortization of intangibles, including customer relationships, and software associated with acquired businesses.
  6. “Other” corporate costs include $0.6 million and $1.6 million of restructuring charges for the three and nine months ended September 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 Second 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

 

Nine Months Ended

 

 

September 30

 

 

September 30

 

 

 

2017

 

2016

 

 

2017

 

 

2016

 

 

 

(Unaudited)

 

 

($ thousands, except per share data)

ArcBest Corporation - Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 24,349

 

$

 20,370

 

$

 36,830

 

$

 27,759

 

Restructuring charges, pre-tax(1)

 

 

 737

 

 

 —

 

 

 2,731

 

 

 —

 

Nonunion pension expense, including settlement, pre-tax(2)

 

 

 1,956

 

 

 724

 

 

 4,468

 

 

 2,564

 

Transaction costs, pre-tax(3)

 

 

 —

 

 

 561

 

 

 —

 

 

 561

 

Non-GAAP amounts

 

$

 27,042

 

$

 21,655

 

$

 44,029

 

$

 30,884

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 14,788

 

$

 12,940

 

$

 23,158

 

$

 17,068

 

Restructuring charges, after-tax(1)

 

 

 447

 

 

 —

 

 

 1,656

 

 

 —

 

Nonunion pension expense, including settlement, after-tax(2)

 

 

 1,195

 

 

 442

 

 

 2,730

 

 

 1,567

 

Life insurance proceeds and changes in cash surrender value

 

 

 (956)

 

 

 (1,088)

 

 

 (1,943)

 

 

 (1,980)

 

Tax expense (benefit) from vested RSUs(3)

 

 

 16

 

 

 —

 

 

 (1,229)

 

 

 —

 

Transaction costs, after-tax(4)

 

 

 —

 

 

 341

 

 

 —

 

 

 341

 

Non-GAAP amounts

 

$

 15,490

 

$

 12,635

 

$

 24,372

 

$

 16,996

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 0.56

 

$

 0.49

 

$

 0.87

 

$

 0.64

 

Restructuring charges, after-tax(1)

 

 

 0.02

 

 

 —

 

 

 0.06

 

 

 —

 

Nonunion pension expense, including settlement, after-tax(2)

 

 

 0.05

 

 

 0.02

 

 

 0.10

 

 

 0.06

 

Life insurance proceeds and changes in cash surrender value

 

 

 (0.04)

 

 

 (0.04)

 

 

 (0.07)

 

 

 (0.08)

 

Tax expense (benefit) from vested RSUs(3)

 

 

 —

 

 

 —

 

 

 (0.05)

 

 

 —

 

Transaction costs, after-tax(4)

 

 

 —

 

 

 0.01

 

 

 —

 

 

 0.01

 

Non-GAAP amounts

 

$

 0.59

 

$

 0.48

 

$

 0.91

 

$

 0.63

 


  1. Restructuring charges relate to the realignment of the Company’s organizational structure.
  2. Nonunion pension expense is presented as a non-GAAP adjustment with pension settlement expense, for all periods presented, because expenses related to the plan have been excluded from the financial information management uses to make operating decisions, as the ArcBest Board of Directors approved a resolution authorizing the execution of an amendment to terminate the nonunion defined benefit pension plan with a proposed termination date of December 31, 2017. Plan participants will have an election window in which they can choose any form of payment allowed by the Plan for immediate commencement of payment or defer payment until a later date with pension settlements related to the plan termination likely to occur in the second half of 2018.
  3. The Company recognized the tax impact for the vesting of share-based compensation resulting in excess tax expense during the three months ended September 30, 2017 and excess tax benefit during the nine months ended September 30, 2017.
  4. Transaction costs for the three and nine months ended September 30, 2016 are associated with the September 2, 2016 acquisition of Logistics & Distribution Services, LLC.

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 September 30, 2017

 

 

 

 

 

 

 

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before

 

Income

 

 

 

 

 

 

 

 

Operating

 

Other

 

Income

 

Tax

 

Net

 

Effective

 

 

Income

 

Income

 

Taxes

 

Provision

 

Income

 

Tax Rate

Amounts on GAAP basis

 

$

 24,349

 

$

 (281)

 

$

 24,068

 

$

 9,280

 

$

 14,788

 

 38.6

%

Restructuring charges(1)

 

 

 737

 

 

 —

 

 

 737

 

 

 290

 

 

 447

 

 39.3

 

Nonunion pension expense, including settlement(2)

 

 

 1,956

 

 

 —

 

 

 1,956

 

 

 761

 

 

 1,195

 

 38.9

 

Life insurance proceeds and changes in cash surrender value

 

 

 —

 

 

 (956)

 

 

 (956)

 

 

 —

 

 

 (956)

 

 —

 

Tax expense from vested RSUs(3)

 

 

 —

 

 

 —

 

 

 —

 

 

 (16)

 

 

 16

 

 —

 

Non-GAAP amounts

 

$

 27,042

 

$

 (1,237)

 

$

 25,805

 

$

 10,315

 

$

 15,490

 

 40.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2016

 

 

 

 

 

 

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before

 

Income

 

 

 

 

 

 

 

 

Operating

 

Other

 

Income

 

Tax

 

Net

 

Effective

 

 

Income

 

Income

 

Taxes

 

Provision

 

Income

 

Tax Rate

Amounts on GAAP basis

 

$

 20,370

 

$

 185

 

$

 20,555

 

$

 7,615

 

$

 12,940

 

 37.0

%

Nonunion pension expense, including settlement(2)

 

 

 724

 

 

 —

 

 

 724

 

 

 282

 

 

 442

 

 39.0

 

Life insurance proceeds and changes in cash surrender value

 

 

 —

 

 

 (1,088)

 

 

 (1,088)

 

 

 —

 

 

 (1,088)

 

 —

 

Transactions costs(4)

 

 

 561

 

 

 —

 

 

 561

 

 

 220

 

 

 341

 

 39.2

 

Non-GAAP amounts

 

$

 21,655

 

$

 (903)

 

$

 20,752

 

$

 8,117

 

$

 12,635

 

 39.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2017

 

 

 

 

 

 

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before

 

Income

 

 

 

 

 

 

 

 

Operating

 

Other

 

Income

 

Tax

 

Net

 

Effective

 

 

Income

 

Income

 

Taxes

 

Provision

 

Income

 

Tax Rate

Amounts on GAAP basis

 

$

 36,830

 

$

 (1,274)

 

$

 35,556

 

$

 12,398

 

$

 23,158

 

 34.9

%

Restructuring charges(1)

 

 

 2,731

 

 

 —

 

 

 2,731

 

 

 1,075

 

 

 1,656

 

 39.4

 

Nonunion pension expense, including settlement(2)

 

 

 4,468

 

 

 —

 

 

 4,468

 

 

 1,738

 

 

 2,730

 

 38.9

 

Life insurance proceeds and changes in cash surrender value

 

 

 —

 

 

 (1,943)

 

 

 (1,943)

 

 

 —

 

 

 (1,943)

 

 —

 

Tax benefit from vested RSUs(3)

 

 

 —

 

 

 —

 

 

 —

 

 

 1,229

 

 

 (1,229)

 

 —

 

Non-GAAP amounts

 

$

 44,029

 

$

 (3,217)

 

$

 40,812

 

$

 16,440

 

$

 24,372

 

 40.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2016

 

 

 

 

 

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before

 

Income

 

 

 

 

 

 

 

 

Operating

 

Other

 

Income

 

Tax

 

Net

 

Effective

 

 

Income

 

Income

 

Taxes

 

Provision

 

Income

 

Tax Rate

Amounts on GAAP basis

 

$

 27,759

 

$

 (568)

 

$

 27,191

 

$

 10,123

 

$

 17,068

 

 37.2

%

Nonunion pension expense, including settlement(2)

 

 

 2,564

 

 

 —

 

 

 2,564

 

 

 997

 

 

 1,567

 

 38.9

 

Life insurance proceeds and changes in cash surrender value

 

 

 —

 

 

 (1,980)

 

 

 (1,980)

 

 

 —

 

 

 (1,980)

 

 —

 

Transactions costs(4)

 

 

 561

 

 

 —

 

 

 561

 

 

 220

 

 

 341

 

 39.2

 

Non-GAAP amounts

 

$

 30,884

 

$

 (2,548)

 

$

 28,336

 

$

 11,340

 

$

 16,996

 

 40.0

%


  1. Restructuring charges relate to the realignment of the Company’s organizational structure.
  2. Nonunion pension expense is presented as a non-GAAP adjustment with pension settlement expense, for all periods presented, because expenses related to the plan have been excluded from the financial information management uses to make operating decisions, as the ArcBest Board of Directors approved a resolution authorizing the execution of an amendment to terminate the nonunion defined benefit pension plan with a proposed termination date of December 31, 2017.
  3. The Company recognized the tax impact for the vesting of share-based compensation resulting in excess tax expense during the three months ended September 30, 2017 and excess tax benefit during the nine months ended September 30, 2017.
  4. Transaction costs for the three and nine months ended September 30, 2016 are associated with the September 2, 2016 acquisition of Logistics & Distribution Services, LLC.

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30

 

September 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

 

$

 21,769

 

 95.8

%

 

$

 18,050

 

 96.5

%

 

$

 33,905

 

 97.7

%

 

$

 26,423

 

 98.2

%

 

Restructuring charges(1)

 

 

 95

 

 —

 

 

 

 —

 

 —

 

 

 

 268

 

 —

 

 

 

 —

 

 —

 

 

Nonunion pension expense, including settlement(2)

 

 

 1,676

 

 (0.3)

 

 

 

 545

 

 (0.1)

 

 

 

 3,474

 

 (0.2)

 

 

 

 1,929

 

 (0.1)

 

 

Non-GAAP amounts

 

$

 23,540

 

 95.5

%

 

$

 18,595

 

 96.4

%

 

$

 37,647

 

 97.5

%

 

$

 28,352

 

 98.1

%

 

 

 

 

 

 

 

Asset-Light

 

 

 

 

 

 

 

 

 

 

 

ArcBest

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 7,605

 

 96.1

%

 

$

 6,269

 

 96.3

%

 

$

 14,320

 

 97.3

%

 

$

 8,450

 

 98.2

%

 

Restructuring charges(1)

 

 

 —

 

 —

 

 

 

 —

 

 —

 

 

 

 875

 

 (0.2)

 

 

 

 —

 

 —

 

 

Nonunion pension expense, including settlement(2)

 

 

 155

 

 (0.1)

 

 

 

 15

 

 —

 

 

 

 304

 

 (0.1)

 

 

 

 53

 

 —

 

 

Non-GAAP amounts

 

$

 7,760

 

 96.0

%

 

$

 6,284

 

 96.3

%

 

$

 15,499

 

 97.0

%

 

$

 8,503

 

 98.2

%

 

 

 

 

 

 

 

FleetNet

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 873

 

 97.8

%

 

$

 121

 

 99.7

%

 

$

 2,577

 

 97.8

%

 

$

 1,701

 

 98.6

%

 

Nonunion pension expense, including settlement(2)

 

 

 47

 

 (0.1)

 

 

 

 14

 

 —

 

 

 

 108

 

 (0.1)

 

 

 

 51

 

 —

 

 

Non-GAAP amounts

 

$

 920

 

 97.7

%

 

$

 135

 

 99.7

%

 

$

 2,685

 

 97.7

%

 

$

 1,752

 

 98.6

%

 

 

 

 

 

 

 

Total Asset-Light

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 8,478

 

 96.4

%

 

$

 6,390

 

 97.0

%

 

$

 16,897

 

 97.4

%

 

$

 10,151

 

 98.3

%

 

Restructuring charges(1)

 

 

 —

 

 —

 

 

 

 —

 

 —

 

 

 

 875

 

 (0.1)

 

 

 

 —

 

 —

 

 

Nonunion pension expense, including settlement(2)

 

 

 202

 

 (0.1)

 

 

 

 29

 

 —

 

 

 

 412

 

 (0.1)

 

 

 

 104

 

 —

 

 

Non-GAAP amounts

 

$

 8,680

 

 96.3

%

 

$

 6,419

 

 97.0

%

 

$

 18,184

 

 97.2

%

 

$

 10,255

 

 98.3

%

 

 

 

 

 

 

 

Other and Eliminations

 

 

 

 

 

Operating Loss ($)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

 (5,898)

 

 

 

 

$

 (4,070)

 

 

 

 

$

 (13,972)

 

 

 

 

$

 (8,815)

 

 

 

 

Restructuring charges(1)

 

 

 642

 

 

 

 

 

 —

 

 

 

 

 

 1,588

 

 

 

 

 

 —

 

 

 

 

Nonunion pension expense, including settlement(2)

 

 

 78

 

 

 

 

 

 150

 

 

 

 

 

 582

 

 

 

 

 

 531

 

 

 

 

Transaction costs(3)

 

 

 —

 

 

 

 

 

 561

 

 

 

 

 

 —

 

 

 

 

 

 561

 

 

 

 

Non-GAAP amounts

 

$

 (5,178)

 

 

 

 

$

 (3,359)

 

 

 

 

$

 (11,802)

 

 

 

 

$

 (7,723)

 

 

 

 


  1. Restructuring charges relate to the realignment of the Company’s organizational structure.
  2. Nonunion pension expense is presented as a non-GAAP adjustment with pension settlement expense, for all periods presented, because expenses related to the plan have been excluded from the financial information management uses to make operating decisions, as the ArcBest Board of Directors approved a resolution authorizing the execution of an amendment to terminate the nonunion defined benefit pension plan with a proposed termination date of December 31, 2017.
  3. Transaction costs for the three and nine months ended September 30, 2016 are associated with the September 2, 2016 acquisition of Logistics & Distribution Services, LLC.

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30

 

 

September 30

 

 

 

2017

 

2016

 

2017

 

2016

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

ArcBest Corporation - Consolidated

 

 

 

 

 

Net income

 

$

 14,788

 

$

 12,940

 

$

 23,158

 

$

 17,068

 

Interest and other related financing costs

 

 

 1,706

 

 

 1,296

 

 

 4,410

 

 

 3,774

 

Income tax provision

 

 

 9,280

 

 

 7,615

 

 

 12,398

 

 

 10,123

 

Depreciation and amortization

 

 

 26,218

 

 

 25,793

 

 

 76,821

 

 

 76,692

 

Amortization of share-based compensation

 

 

 1,471

 

 

 1,951

 

 

 5,070

 

 

 6,151

 

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

 

 

 1,839

 

 

 2,124

 

 

 6,571

 

 

 6,033

 

Restructuring charges(1)

 

 

 737

 

 

 —

 

 

 2,731

 

 

 —

 

Consolidated Adjusted EBITDA

 

$

 56,039

 

$

 51,719

 

$

 131,159