Well-positioned to serve customers in a
rapidly changing market
Increased focus on efficient and effective
operations
- Second quarter 2023 net income of $40.4
million, or $1.64 per diluted
share.
- Second quarter 2023 net income from continuing operations of
$39.6 million, or $1.60 per diluted share. On a non-GAAP basis,
second quarter 2023 net income from continuing operations of
$38.0 million, or $1.54 per diluted common share.
FORT
SMITH, Ark., July 28,
2023 /PRNewswire/
-- ArcBest® (Nasdaq: ARCB), a leader in supply
chain logistics, today reported second quarter
2023 revenue from continuing operations of $1.1 billion, compared to $1.3 billion in the second quarter of 2022.
Second quarter 2023 net income was $40.4
million, or $1.64 per diluted
share, compared to $102.5 million, or $4.00 per diluted share, in the second quarter of
2022.
ArcBest's second quarter 2023 operating income from
continuing operations was $42.1
million, compared to $136.0 million in the second quarter of
2022, and net income from continuing operations was
$39.6 million, or $1.60 per diluted share, compared to
$101.5 million, or $3.97 per diluted share, in the prior-year
period.
Excluding certain items in both periods as identified in the
attached reconciliation tables, second quarter 2023 non‑GAAP
operating income from continuing operations was $50.1 million, compared to $149.2 million in the prior‑year period. On
a non-GAAP basis, net income from continuing operations was
$38.0 million, or $1.54 per diluted share, compared to
$109.1 million, or $4.26 per diluted share, in second quarter
2022.
"ArcBest is uniquely positioned to meet customers' needs,
especially in a market that is rapidly changing," said Judy R.
McReynolds, ArcBest chairman, president and CEO. "We serve as
trusted advisors – ready to keep customer supply chains moving with
a full suite of logistics solutions, including a nationwide network
of asset-based LTL capacity."
ArcBest recognizes the importance of operating in the most
efficient and effective way possible, which enables growth and
creates value. In its Asset-Based segment, ArcBest has seen
productivity and service improvements from deploying
highly-experienced teams to train managers and employees on
operational best practices in certain locations. Based on this
success, ArcBest is redeploying resources to expand these training
efforts. ArcBest also sees the opportunity to improve Asset-Based
profitability by prioritizing network capacity to serve core
customers that value long-term partnerships. In its Asset-Light
segment, ArcBest is focused on aligning costs with business levels
and achieved the $3 million of previously announced cost
reductions for second quarter 2023.
Second Quarter Results of Operations Comparisons
Asset-Based
Second Quarter 2023 Versus Second Quarter 2022
- Revenue of $722.0 million
compared to $802.6 million, a per-day
decrease of 10.0 percent.
- Total tonnage per day increased 0.9 percent; LTL-rated weight
per shipment decreased 1.5 percent.
- Total shipments per day increased 4.2 percent.
- Total billed revenue per hundredweight decreased 11.0 percent.
Revenue per hundredweight on LTL-rated business, excluding fuel
surcharge, decreased by a percentage in the mid-single digits.
- Operating income of $43.3 million
and an operating ratio of 94.0 percent compared to operating income
of $116.7 million and an operating
ratio of 85.5 percent. On a non-GAAP basis, operating income of
$51.7 million and an operating ratio
of 92.8 percent compared to operating income of $124.6 million and an operating ratio of 84.5
percent.
The decrease in second quarter total revenue for ArcBest's
Asset-Based business compared to the prior-year period was
primarily due to a general slowing of core customer order
frequency, smaller average shipment quantities related to a weaker
economy and less fuel surcharge revenue based on lower diesel fuel
prices. ArcBest maintained more consistent business and labor
levels during the second quarter by using its tech-enabled, dynamic
LTL-rated pricing program to secure incrementally profitable
shipments to more effectively utilize available ABF Freight network
capacity. As a result, LTL-rated shipments and tonnage in ArcBest's
Asset-Based business increased compared to the prior-year period.
On a sequential basis compared to the first quarter, LTL-rated
tonnage increased while shipments were flat, which is weaker than
normal, seasonal expectations.
The pricing environment continues to be rational as pricing on
core LTL-rated business, excluding fuel surcharges, increased by a
percentage in the high-single digits in second quarter 2023. On a
sequential basis, compared to the first quarter, revenue per
hundredweight, excluding fuel surcharge, on core LTL-rated business
increased by a percentage in the low-single digits. The decrease in
the second quarter 2023 revenue per hundredweight pricing measure
was driven by the change in mix associated with a decrease in core
LTL-rated shipments and an increase in dynamic, market-priced
LTL-rated shipments as well as an increase in heavier-weighted
truckload-rated shipments compared to the prior-year period. The
year-over-year total revenue per hundredweight decrease in second
quarter 2023 followed a 17.7 percent increase in second quarter
2022 versus second quarter 2021. In addition, lower diesel fuel
prices, and the resulting decrease in fuel surcharge revenue,
meaningfully impacted year-over-year and sequential comparisons of
revenue per hundredweight statistics.
Asset-Light‡
Second Quarter 2023 Versus Second Quarter 2022
- Revenue of $409.8 million
compared to $549.7 million, a per-day
decrease of 25.4 percent.
- Operating income of $13.2 million
compared to operating income of $27.5
million. On a non‑GAAP basis, operating income of
$6.4 million compared to $30.3 million.
- Adjusted earnings before interest, taxes, depreciation and
amortization ("Adjusted EBITDA") of $8.3
million compared to $32.5
million, as detailed in the attached non-GAAP reconciliation
tables.
Current year second quarter revenue results were impacted by
lower average revenue per shipment as a result of a softer market
environment. Despite the increase in daily shipments resulting from
growth in the truckload business, lower shipment rates and related
shipment margins drove reduced second quarter profitability. During
last year's second quarter, as purchased transportation buy rates
steadily decreased, Asset-Light benefited from higher market rates
on committed business, which resulted in record profitability.
During the second quarter, employee-related and outside services
cost reductions were implemented to better align resources with
business levels. As a result, excluding purchased transportation
and the impact of the change in fair value of contingent
consideration, operating expenses were managed lower by
$3 million, or 5 percent, compared to
first quarter 2023.
NOTE ‡ - Asset-Light represents the reportable
segment previously named ArcBest. Asset-Light financial results
previously included the ArcBest segment and FleetNet, which was
sold on February 28, 2023.
Share Repurchase Program
Year-to-date through the end of the second quarter, ArcBest has
returned $41.2 million of capital to
shareholders through common stock share repurchases and
$83.8 million remains available under
the current repurchase authorization for future common stock
purchases.
Conference Call
ArcBest will host a conference call with company executives to
discuss the second quarter 2023 results. The call will be today,
Friday, July 28 at 9:30 a.m. EDT (8:30 a.m.
CDT). Interested parties are invited to listen by calling
(800) 757-9216 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 July
28, 2023, 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 September
15, 2023. To listen to the playback, dial (800) 633-8284
or (402) 977-9140 (for international callers). The conference
call ID for the playback is 22027510. The conference call and
playback can also be accessed, through September 15, 2023, on ArcBest's website at
arcb.com.
About ArcBest
ArcBest® (Nasdaq: ARCB) is a multibillion-dollar
integrated logistics company that helps keep the global supply
chain moving. Founded in 1923 and now with over 15,000 employees
across nearly 250 campuses and service centers, the company is a
logistics powerhouse, fueled by the simple notion of finding a way
to get the job done. Through innovative thinking, agility and
trust, ArcBest leverages its full suite of shipping and logistics
solutions to meet customers' critical needs, each and every day.
For more information, visit arcb.com.
The following is a "safe harbor" statement under the Private
Securities Litigation Reform Act of 1995: Certain
statements and information in this press release concerning results
for the three months ended June 30,
2023, 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, including the
COVID-19 pandemic, 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 the Vaux freight handling pilot
test program at ABF Freight and our customer pilot offering of
Vaux, including human-centered remote operation software; the loss
or reduction of business from large customers; 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, including the acquisition of MoLo
Solutions, LLC, and the inability to realize the anticipated
benefits of the acquisition within the expected time period or at
all; 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 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
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; increasing costs due to inflation and rising
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 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
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
|
($ thousands, except share and
per share data)
|
REVENUES
|
|
$
|
1,103,464
|
|
$
|
1,321,692
|
|
$
|
2,209,558
|
|
$
|
2,589,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
1,061,348
|
|
|
1,185,654
|
|
|
2,146,283
|
|
|
2,360,802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
42,116
|
|
|
136,038
|
|
|
63,275
|
|
|
228,981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(COSTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income
|
|
|
3,725
|
|
|
353
|
|
|
6,658
|
|
|
452
|
Interest and other
related financing costs
|
|
|
(2,205)
|
|
|
(1,863)
|
|
|
(4,532)
|
|
|
(3,803)
|
Other, net
|
|
|
5,038
|
|
|
(2,807)
|
|
|
6,818
|
|
|
(3,633)
|
|
|
|
6,558
|
|
|
(4,317)
|
|
|
8,944
|
|
|
(6,984)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
|
48,674
|
|
|
131,721
|
|
|
72,219
|
|
|
221,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
PROVISION
|
|
|
9,074
|
|
|
30,179
|
|
|
13,772
|
|
|
52,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME FROM
CONTINUING OPERATIONS
|
|
|
39,600
|
|
|
101,542
|
|
|
58,447
|
|
|
169,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
DISCONTINUED OPERATIONS, NET OF TAX(1)
|
|
|
843
|
|
|
919
|
|
|
53,279
|
|
|
2,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$
|
40,443
|
|
$
|
102,461
|
|
$
|
111,726
|
|
$
|
172,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
COMMON SHARE(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
1.65
|
|
$
|
4.13
|
|
$
|
2.42
|
|
$
|
6.88
|
Discontinued
operations(1)
|
|
|
0.04
|
|
|
0.04
|
|
|
2.20
|
|
|
0.10
|
|
|
$
|
1.68
|
|
$
|
4.16
|
|
$
|
4.62
|
|
$
|
6.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
COMMON SHARE(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
1.60
|
|
$
|
3.97
|
|
$
|
2.35
|
|
$
|
6.58
|
Discontinued
operations(1)
|
|
|
0.03
|
|
|
0.04
|
|
|
2.14
|
|
|
0.10
|
|
|
$
|
1.64
|
|
$
|
4.00
|
|
$
|
4.49
|
|
$
|
6.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE COMMON
SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
24,064,882
|
|
|
24,607,362
|
|
|
24,175,893
|
|
|
24,658,739
|
Diluted
|
|
|
24,672,948
|
|
|
25,596,031
|
|
|
24,864,691
|
|
|
25,756,314
|
|
|
|
|
|
|
|
|
1)
|
Discontinued operations
represents the FleetNet segment, which sold on February 28,
2023. The six months ended June 30, 2023 includes net
gain on sale of FleetNet of $52.3 million after-tax, or
$2.16 basic earnings per share and $2.10 diluted earnings
per share.
|
2)
|
Earnings per common
share is calculated in total and may not equal the sum of earnings
per common share from continuing operations and discontinued
operations due to rounding.
|
ARCBEST
CORPORATION
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
June 30
|
|
December 31
|
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
|
($ thousands, except share data)
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
187,286
|
|
$
|
158,264
|
Short-term
investments
|
|
|
153,116
|
|
|
167,662
|
Accounts receivable,
less allowances (2023 - $11,318; 2022 - $13,892)
|
|
|
429,570
|
|
|
517,494
|
Other accounts
receivable, less allowances (2023 - $721; 2022 - $713)
|
|
|
11,160
|
|
|
11,016
|
Prepaid
expenses
|
|
|
33,244
|
|
|
39,484
|
Prepaid and refundable
income taxes
|
|
|
39,230
|
|
|
19,239
|
Current assets of
discontinued operations
|
|
|
—
|
|
|
64,736
|
Other
|
|
|
11,584
|
|
|
11,888
|
TOTAL CURRENT
ASSETS
|
|
|
865,190
|
|
|
989,783
|
|
|
|
|
|
|
|
PROPERTY, PLANT AND
EQUIPMENT
|
|
|
|
|
|
|
Land and
structures
|
|
|
421,821
|
|
|
401,840
|
Revenue
equipment
|
|
|
1,062,854
|
|
|
1,038,832
|
Service, office, and
other equipment
|
|
|
309,952
|
|
|
298,234
|
Software
|
|
|
167,292
|
|
|
167,164
|
Leasehold
improvements
|
|
|
26,240
|
|
|
23,466
|
|
|
|
1,988,159
|
|
|
1,929,536
|
Less allowances for
depreciation and amortization
|
|
|
1,159,626
|
|
|
1,129,366
|
|
|
|
828,533
|
|
|
800,170
|
|
|
|
|
|
|
|
GOODWILL
|
|
|
304,753
|
|
|
304,753
|
INTANGIBLE ASSETS,
NET
|
|
|
107,467
|
|
|
113,733
|
OPERATING
RIGHT-OF-USE ASSETS
|
|
|
194,597
|
|
|
166,515
|
DEFERRED INCOME
TAXES
|
|
|
6,918
|
|
|
6,342
|
LONG-TERM ASSETS OF
DISCONTINUED OPERATIONS
|
|
|
—
|
|
|
11,097
|
OTHER LONG-TERM
ASSETS
|
|
|
106,644
|
|
|
101,893
|
TOTAL
ASSETS
|
|
$
|
2,414,102
|
|
$
|
2,494,286
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
245,998
|
|
$
|
269,854
|
Income taxes
payable
|
|
|
—
|
|
|
16,017
|
Accrued
expenses
|
|
|
299,339
|
|
|
338,457
|
Current portion of
long-term debt
|
|
|
64,882
|
|
|
66,252
|
Current portion of
operating lease liabilities
|
|
|
31,047
|
|
|
26,225
|
Current liabilities of
discontinued operations
|
|
|
—
|
|
|
51,665
|
TOTAL CURRENT
LIABILITIES
|
|
|
641,266
|
|
|
768,470
|
|
|
|
|
|
|
|
LONG-TERM DEBT, less
current portion
|
|
|
168,105
|
|
|
198,371
|
OPERATING LEASE
LIABILITIES, less current portion
|
|
|
174,145
|
|
|
147,828
|
POSTRETIREMENT
LIABILITIES, less current portion
|
|
|
12,169
|
|
|
12,196
|
LONG-TERM
LIABILITIES OF DISCONTINUED OPERATIONS
|
|
|
—
|
|
|
781
|
CONTINGENT
CONSIDERATION
|
|
|
117,040
|
|
|
112,000
|
OTHER LONG-TERM
LIABILITIES
|
|
|
37,314
|
|
|
42,745
|
DEFERRED INCOME
TAXES
|
|
|
52,702
|
|
|
60,494
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Common stock, $0.01 par
value, authorized 70,000,000 shares;
issued 2023: 30,007,634 shares; 2022: 29,758,716 shares
|
|
|
300
|
|
|
298
|
Additional paid-in
capital
|
|
|
335,397
|
|
|
339,582
|
Retained
earnings
|
|
|
1,194,610
|
|
|
1,088,693
|
Treasury stock,
at cost, 2023: 5,982,679 shares; 2022: 5,529,383 shares
|
|
|
(325,515)
|
|
|
(284,275)
|
Accumulated other
comprehensive income
|
|
|
6,569
|
|
|
7,103
|
TOTAL STOCKHOLDERS'
EQUITY
|
|
|
1,211,361
|
|
|
1,151,401
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
2,414,102
|
|
$
|
2,494,286
|
ARCBEST
CORPORATION
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
June 30
|
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
|
($ thousands)
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
Net income
|
|
$
|
111,726
|
|
$
|
172,030
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
64,804
|
|
|
63,690
|
Amortization of
intangibles
|
|
|
6,398
|
|
|
6,463
|
Share-based
compensation expense
|
|
|
5,585
|
|
|
6,641
|
Provision for losses
on accounts receivable
|
|
|
2,257
|
|
|
3,583
|
Change in deferred
income taxes
|
|
|
(8,228)
|
|
|
(6,371)
|
(Gain) loss on sale of
property and equipment
|
|
|
1,188
|
|
|
(4,073)
|
Gain on sale of
subsidiary
|
|
|
—
|
|
|
(402)
|
Pre-tax gain on sale
of discontinued operations
|
|
|
(70,215)
|
|
|
—
|
Change in fair value
of contingent consideration
|
|
|
5,040
|
|
|
810
|
Change in fair value
of equity investment
|
|
|
(3,739)
|
|
|
—
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Receivables
|
|
|
83,542
|
|
|
(87,092)
|
Prepaid
expenses
|
|
|
6,353
|
|
|
7,477
|
Other
assets
|
|
|
759
|
|
|
72
|
Income
taxes
|
|
|
(35,968)
|
|
|
4,211
|
Operating right-of-use
assets and lease liabilities, net
|
|
|
3,059
|
|
|
114
|
Accounts payable,
accrued expenses, and other liabilities
|
|
|
(68,804)
|
|
|
17,470
|
NET CASH PROVIDED BY
OPERATING ACTIVITIES
|
|
|
103,757
|
|
|
184,623
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
Purchases of property,
plant and equipment, net of financings
|
|
|
(83,171)
|
|
|
(49,682)
|
Proceeds from sale of
property and equipment
|
|
|
2,853
|
|
|
9,115
|
Proceeds from sale of
discontinued operations
|
|
|
100,949
|
|
|
—
|
Business acquisition,
net of cash acquired(1)
|
|
|
—
|
|
|
2,279
|
Proceeds from sale of
subsidiary
|
|
|
—
|
|
|
475
|
Purchases of short-term
investments
|
|
|
(46,858)
|
|
|
(64,330)
|
Proceeds from sale of
short-term investments
|
|
|
63,693
|
|
|
35,840
|
Capitalization of
internally developed software
|
|
|
(7,010)
|
|
|
(8,541)
|
NET CASH PROVIDED BY
(USED IN) INVESTING ACTIVITIES
|
|
|
30,456
|
|
|
(74,844)
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
Borrowings under credit
facilities
|
|
|
—
|
|
|
58,000
|
Proceeds from notes
payable
|
|
|
—
|
|
|
7,280
|
Payments on long-term
debt
|
|
|
(35,114)
|
|
|
(84,905)
|
Net change in book
overdrafts
|
|
|
(13,171)
|
|
|
6,085
|
Deferred financing
costs
|
|
|
57
|
|
|
—
|
Payment of common stock
dividends
|
|
|
(5,809)
|
|
|
(4,927)
|
Purchases of treasury
stock
|
|
|
(41,240)
|
|
|
(31,237)
|
Payments for tax
withheld on share-based compensation
|
|
|
(10,022)
|
|
|
(9,637)
|
NET CASH USED IN
FINANCING ACTIVITIES
|
|
|
(105,299)
|
|
|
(59,341)
|
|
|
|
|
|
|
|
NET INCREASE IN CASH
AND CASH EQUIVALENTS
|
|
|
28,914
|
|
|
50,438
|
Cash and cash
equivalents of continuing operations at beginning of
period
|
|
|
158,264
|
|
|
76,568
|
Cash and cash
equivalents of discontinued operations at beginning of
period
|
|
|
108
|
|
|
52
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
|
$
|
187,286
|
|
$
|
127,058
|
|
|
|
|
|
|
|
NONCASH
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Equipment
financed
|
|
$
|
3,478
|
|
$
|
19,498
|
Accruals for equipment
received
|
|
$
|
10,106
|
|
$
|
7,574
|
Lease liabilities
arising from obtaining right-of-use assets
|
|
$
|
43,366
|
|
$
|
30,210
|
|
|
|
|
|
|
|
|
1)
|
Represents cash
received from escrow for post-closing adjustments related to the
acquisition of MoLo.
|
|
|
Note: The statements of
cash flows for the six months ended June 30, 2023 and 2022,
includes cash flows from continuing operations and cash flows from
the discontinued operations of FleetNet America®, which
was 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
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
(Unaudited)
|
|
|
($ thousands,
except percentages)
|
|
REVENUES FROM
CONTINUING OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-Based
|
$
|
722,015
|
|
|
|
|
$
|
802,622
|
|
|
|
|
$
|
1,419,832
|
|
|
|
|
$
|
1,507,933
|
|
|
|
Asset-Light(1)
|
|
409,816
|
|
|
|
|
|
549,655
|
|
|
|
|
|
847,908
|
|
|
|
|
|
1,144,939
|
|
|
|
Other and
eliminations
|
|
(28,367)
|
|
|
|
|
|
(30,585)
|
|
|
|
|
|
(58,182)
|
|
|
|
|
|
(63,089)
|
|
|
|
Total consolidated
revenues from continuing operations
|
$
|
1,103,464
|
|
|
|
|
$
|
1,321,692
|
|
|
|
|
$
|
2,209,558
|
|
|
|
|
$
|
2,589,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
FROM CONTINUING OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-Based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages, and
benefits
|
$
|
344,538
|
|
47.7
|
%
|
|
$
|
328,068
|
|
40.9
|
%
|
|
$
|
680,143
|
|
47.9
|
%
|
|
$
|
641,565
|
|
42.5
|
%
|
Fuel, supplies, and
expenses
|
|
90,897
|
|
12.6
|
|
|
|
99,296
|
|
12.4
|
|
|
|
185,185
|
|
13.1
|
|
|
|
184,127
|
|
12.2
|
|
Operating taxes and
licenses
|
|
14,094
|
|
2.0
|
|
|
|
12,823
|
|
1.6
|
|
|
|
28,073
|
|
2.0
|
|
|
|
25,316
|
|
1.7
|
|
Insurance
|
|
12,889
|
|
1.8
|
|
|
|
12,197
|
|
1.5
|
|
|
|
26,162
|
|
1.8
|
|
|
|
22,628
|
|
1.5
|
|
Communications and
utilities
|
|
4,553
|
|
0.6
|
|
|
|
4,648
|
|
0.6
|
|
|
|
9,857
|
|
0.7
|
|
|
|
9,335
|
|
0.6
|
|
Depreciation and
amortization
|
|
25,273
|
|
3.5
|
|
|
|
24,463
|
|
3.1
|
|
|
|
50,184
|
|
3.5
|
|
|
|
48,768
|
|
3.2
|
|
Rents and purchased
transportation
|
|
101,922
|
|
14.1
|
|
|
|
121,550
|
|
15.1
|
|
|
|
192,666
|
|
13.6
|
|
|
|
224,535
|
|
14.9
|
|
Shared
services
|
|
74,468
|
|
10.3
|
|
|
|
75,584
|
|
9.4
|
|
|
|
139,081
|
|
9.8
|
|
|
|
142,734
|
|
9.6
|
|
(Gain) loss on sale of
property and equipment
|
|
416
|
|
0.1
|
|
|
|
(1,370)
|
|
(0.2)
|
|
|
|
365
|
|
—
|
|
|
|
(4,065)
|
|
(0.3)
|
|
Innovative technology
costs(2)
|
|
8,343
|
|
1.1
|
|
|
|
7,954
|
|
1.0
|
|
|
|
14,411
|
|
1.0
|
|
|
|
14,914
|
|
1.0
|
|
Other
|
|
1,297
|
|
0.2
|
|
|
|
753
|
|
0.1
|
|
|
|
2,909
|
|
0.2
|
|
|
|
1,386
|
|
0.1
|
|
Total
Asset-Based
|
|
678,690
|
|
94.0
|
%
|
|
|
685,966
|
|
85.5
|
%
|
|
|
1,329,036
|
|
93.6
|
%
|
|
|
1,311,243
|
|
87.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-Light(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
transportation
|
$
|
343,102
|
|
83.7
|
%
|
|
$
|
448,160
|
|
81.5
|
%
|
|
$
|
713,265
|
|
84.1
|
%
|
|
$
|
956,540
|
|
83.5
|
%
|
Supplies and
expenses
|
|
3,348
|
|
0.8
|
|
|
|
4,263
|
|
0.8
|
|
|
|
7,420
|
|
0.9
|
|
|
|
7,529
|
|
0.7
|
|
Depreciation and
amortization(3)
|
|
5,085
|
|
1.2
|
|
|
|
5,468
|
|
1.0
|
|
|
|
10,153
|
|
1.2
|
|
|
|
10,648
|
|
0.9
|
|
Shared
services
|
|
48,985
|
|
12.0
|
|
|
|
57,986
|
|
10.6
|
|
|
|
100,414
|
|
11.8
|
|
|
|
108,183
|
|
9.5
|
|
Contingent
consideration(4)
|
|
(10,000)
|
|
(2.4)
|
|
|
|
—
|
|
—
|
|
|
|
5,040
|
|
0.6
|
|
|
|
810
|
|
0.1
|
|
Gain on sale of
subsidiary(5)
|
|
—
|
|
—
|
|
|
|
(402)
|
|
(0.1)
|
|
|
|
—
|
|
—
|
|
|
|
(402)
|
|
—
|
|
Other
|
|
6,116
|
|
1.5
|
|
|
|
6,701
|
|
1.2
|
|
|
|
12,527
|
|
1.5
|
|
|
|
13,036
|
|
1.1
|
|
Total
Asset-Light
|
|
396,636
|
|
96.8
|
%
|
|
|
522,176
|
|
95.0
|
%
|
|
|
848,819
|
|
100.1
|
%
|
|
|
1,096,344
|
|
95.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other and
eliminations(6)
|
|
(13,978)
|
|
|
|
|
|
(22,488)
|
|
|
|
|
|
(31,572)
|
|
|
|
|
|
(46,785)
|
|
|
|
Total consolidated
operating expenses from continuing operations
|
$
|
1,061,348
|
|
96.2
|
%
|
|
$
|
1,185,654
|
|
89.7
|
%
|
|
$
|
2,146,283
|
|
97.1
|
%
|
|
$
|
2,360,802
|
|
91.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
FROM CONTINUING OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-Based
|
$
|
43,325
|
|
|
|
|
$
|
116,656
|
|
|
|
|
$
|
90,796
|
|
|
|
|
$
|
196,690
|
|
|
|
Asset-Light(1)
|
|
13,180
|
|
|
|
|
|
27,479
|
|
|
|
|
|
(911)
|
|
|
|
|
|
48,595
|
|
|
|
Other and
eliminations(6)
|
|
(14,389)
|
|
|
|
|
|
(8,097)
|
|
|
|
|
|
(26,610)
|
|
|
|
|
|
(16,304)
|
|
|
|
Total consolidated
operating income from continuing operations
|
$
|
42,116
|
|
|
|
|
$
|
136,038
|
|
|
|
|
$
|
63,275
|
|
|
|
|
$
|
228,981
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
Asset-Light
represents the reportable segment previously named ArcBest.
Asset-Light financial results previously included the ArcBest
segment and FleetNet, which was sold on February 28,
2023.
|
2)
|
Represents costs
associated with the Vaux freight handling pilot test program at ABF
Freight.
|
3)
|
Depreciation and
amortization includes amortization of intangibles associated with
acquired businesses.
|
4)
|
Represents the 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. 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.
|
5)
|
Gain relates to the
contingent amount recognized in second quarter 2022 when the funds
from the May 2021 sale of the labor services portion of the
Asset-Light segment's moving business were released from
escrow.
|
6)
|
"Other and
eliminations" includes corporate costs for certain unallocated
shared service costs which are not attributable to any segment,
additional investments to offer comprehensive transportation and
logistics services across multiple operating segments, and other
investments in ArcBest technology and innovations.
|
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 was 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, operating cash flow, net income
or earnings per share, as determined under GAAP.
|
|
Three
Months Ended
|
|
Six Months Ended
|
|
|
June 30
|
|
June 30
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
ArcBest Corporation
- Consolidated
|
|
(Unaudited)
|
|
|
($ thousands,
except per share data)
|
Operating Income
from Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
42,116
|
|
$
|
136,038
|
|
$
|
63,275
|
|
$
|
228,981
|
Innovative technology
costs, pre-tax(1)
|
|
|
14,821
|
|
|
10,341
|
|
|
27,299
|
|
|
20,027
|
Purchase accounting
amortization, pre-tax(2)
|
|
|
3,192
|
|
|
3,214
|
|
|
6,384
|
|
|
6,427
|
Change in fair value of
contingent consideration, pre-tax(3)
|
|
|
(10,000)
|
|
|
—
|
|
|
5,040
|
|
|
810
|
Gain on sale of
subsidiary, pre-tax(4)
|
|
|
—
|
|
|
(402)
|
|
|
—
|
|
|
(402)
|
Non-GAAP
amounts
|
|
$
|
50,129
|
|
$
|
149,191
|
|
$
|
101,998
|
|
$
|
255,843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income from
Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
39,600
|
|
$
|
101,542
|
|
$
|
58,447
|
|
$
|
169,550
|
Innovative technology
costs, after-tax (includes related financing
costs)(1)
|
|
|
11,206
|
|
|
7,789
|
|
|
20,686
|
|
|
15,078
|
Purchase accounting
amortization, after-tax(2)
|
|
|
2,398
|
|
|
2,397
|
|
|
4,796
|
|
|
4,793
|
Change in fair value of
contingent consideration, after-tax(3)
|
|
|
(7,512)
|
|
|
—
|
|
|
3,787
|
|
|
604
|
Gain on sale of
subsidiary, after-tax(4)
|
|
|
—
|
|
|
(317)
|
|
|
—
|
|
|
(317)
|
Change in fair value of
equity investment, after-tax(5)
|
|
|
(2,786)
|
|
|
—
|
|
|
(2,786)
|
|
|
—
|
Life insurance proceeds
and changes in cash surrender value
|
|
|
(1,086)
|
|
|
2,710
|
|
|
(2,582)
|
|
|
3,503
|
Tax benefit from vested
RSUs(6)
|
|
|
(3,864)
|
|
|
(5,059)
|
|
|
(4,915)
|
|
|
(5,929)
|
Non-GAAP
amounts
|
|
$
|
37,956
|
|
$
|
109,062
|
|
$
|
77,433
|
|
$
|
187,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per
Share from Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
1.60
|
|
$
|
3.97
|
|
$
|
2.35
|
|
$
|
6.58
|
Innovative technology
costs, after-tax (includes related financing
costs)(1)
|
|
|
0.45
|
|
|
0.30
|
|
|
0.83
|
|
|
0.59
|
Purchase accounting
amortization, after-tax(2)
|
|
|
0.10
|
|
|
0.09
|
|
|
0.19
|
|
|
0.19
|
Change in fair value of
contingent consideration, after-tax(3)
|
|
|
(0.30)
|
|
|
—
|
|
|
0.15
|
|
|
0.02
|
Gain on sale of
subsidiary, after-tax(4)
|
|
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
(0.01)
|
Change in fair value of
equity investment, after-tax(5)
|
|
|
(0.11)
|
|
|
—
|
|
|
(0.11)
|
|
|
—
|
Life insurance proceeds
and changes in cash surrender value
|
|
|
(0.04)
|
|
|
0.11
|
|
|
(0.10)
|
|
|
0.14
|
Tax benefit from vested
RSUs(6)
|
|
|
(0.16)
|
|
|
(0.20)
|
|
|
(0.20)
|
|
|
(0.23)
|
Non-GAAP
amounts(7)
|
|
$
|
1.54
|
|
$
|
4.26
|
|
$
|
3.11
|
|
$
|
7.27
|
|
|
|
|
|
|
|
|
1)
|
Represents costs
associated with the Vaux freight handling pilot test program
at ABF Freight, costs related to our customer pilot offering of
Vaux, including human-centered remote operation software, and
initiatives to optimize our performance through technological
innovation.
|
2)
|
Represents the
amortization of acquired intangible assets in the Asset-Light
segment.
|
3)
|
Represents change in
fair value of the contingent earnout consideration recorded for the
MoLo acquisition, as previously described in the footnotes to the
Financial Statement Operating Segment Data and Operating Ratios
table.
|
4)
|
Gain relates to the
contingent amount recognized in second quarter 2022 when the funds
from the May 2021 sale of the labor services portion of the
Asset-Light segment's moving business were released from
escrow.
|
5)
|
Represents increase in
fair value of our investment in Phantom Auto, the leading provider
of human-centered remote operation software, based on observable
price changes during second quarter 2023.
|
6)
|
Represents recognition
of the tax impact for the vesting of share-based
compensation.
|
7)
|
Non-GAAP earnings per
share is calculated in total and may not equal the sum of the GAAP
amounts and the non-GAAP adjustments due to rounding.
|
ARCBEST
CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES –
Continued
|
|
|
|
Three
Months Ended
|
|
Six Months Ended
|
|
|
June 30
|
|
June 30
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Segment Operating
Income Reconciliations
|
|
(Unaudited)
|
|
|
($ thousands,
except percentages)
|
Asset-Based
Segment
|
|
|
|
|
Operating Income ($)
and Operating Ratio (% of revenues)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
43,325
|
|
94.0
|
%
|
|
$
|
116,656
|
|
85.5
|
%
|
|
$
|
90,796
|
|
93.6
|
%
|
|
$
|
196,690
|
|
87.0
|
%
|
Innovative technology
costs, pre-tax(1)
|
|
|
8,343
|
|
(1.1)
|
|
|
|
7,954
|
|
(1.0)
|
|
|
|
14,411
|
|
(1.0)
|
|
|
|
14,914
|
|
(1.0)
|
|
Non-GAAP
amounts(2)
|
|
$
|
51,668
|
|
92.8
|
%
|
|
$
|
124,610
|
|
84.5
|
%
|
|
$
|
105,207
|
|
92.6
|
%
|
|
$
|
211,604
|
|
86.0
|
%
|
|
|
|
|
|
Asset-Light
Segment(3)
|
|
|
|
|
Operating Income
(Loss) ($) and Operating Ratio (% of revenues)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
13,180
|
|
96.8
|
%
|
|
$
|
27,479
|
|
95.0
|
%
|
|
$
|
(911)
|
|
100.1
|
%
|
|
$
|
48,595
|
|
95.8
|
%
|
Purchase accounting
amortization, pre-tax(4)
|
|
|
3,192
|
|
(0.8)
|
|
|
|
3,214
|
|
(0.6)
|
|
|
|
6,384
|
|
(0.8)
|
|
|
|
6,427
|
|
(0.6)
|
|
Change in fair value
of contingent consideration, pre-tax(5)
|
|
|
(10,000)
|
|
2.4
|
|
|
|
—
|
|
—
|
|
|
|
5,040
|
|
(0.6)
|
|
|
|
810
|
|
(0.1)
|
|
Gain on sale of
subsidiary, pre-tax(6)
|
|
|
—
|
|
—
|
|
|
|
(402)
|
|
0.1
|
|
|
|
—
|
|
—
|
|
|
|
(402)
|
|
—
|
|
Non-GAAP
amounts(2)
|
|
$
|
6,372
|
|
98.4
|
%
|
|
$
|
30,291
|
|
94.5
|
%
|
|
$
|
10,513
|
|
98.8
|
%
|
|
$
|
55,430
|
|
95.2
|
%
|
|
|
|
|
|
Other and
Eliminations
|
|
|
|
|
Operating Income
(Loss) ($)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
(14,389)
|
|
|
|
|
$
|
(8,097)
|
|
|
|
|
$
|
(26,610)
|
|
|
|
|
$
|
(16,304)
|
|
|
|
Innovative technology
costs, pre-tax(7)
|
|
|
6,478
|
|
|
|
|
|
2,387
|
|
|
|
|
|
12,888
|
|
|
|
|
|
5,113
|
|
|
|
Non-GAAP
amounts(2)
|
|
$
|
(7,911)
|
|
|
|
|
$
|
(5,710)
|
|
|
|
|
$
|
(13,722)
|
|
|
|
|
$
|
(11,191)
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
Represents costs
associated with the Vaux freight handling pilot test program at ABF
Freight.
|
2)
|
Non-GAAP amounts are
calculated in total and may not equal the sum of the GAAP amounts
and the non-GAAP adjustments due to rounding.
|
3)
|
Asset-Light represents
the reportable segment previously named ArcBest. Asset-Light
financial results previously included the ArcBest segment and
FleetNet, which was sold on February 28, 2023.
|
4)
|
Represents the
amortization of acquired intangible assets in the Asset-Light
segment.
|
5)
|
Represents change in
fair value of the contingent earnout consideration recorded for the
MoLo acquisition, as previously described in the footnotes to the
Financial Statement Operating Segment Data and Operating Ratios
table.
|
6)
|
Gain relates to the
contingent amount recognized in second quarter 2022 when the funds
from the May 2021 sale of the labor services portion of the
Asset-Light segment's moving business were released from
escrow.
|
7)
|
Represents certain
costs related to our customer pilot offering of Vaux, including
human-centered remote operation software, and initiatives to
optimize our performance through technological
innovation.
|
ARCBEST
CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES –
Continued
|
|
Effective Tax Rate
Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ArcBest Corporation
- Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ thousands,
except percentages)
|
|
Three
Months Ended June 30, 2023
|
|
|
|
|
|
Other
|
|
Income
|
|
Income
|
|
|
|
|
|
|
CONTINUING
OPERATIONS
|
|
Operating
|
|
Income
|
|
Before
Income
|
|
Tax
|
|
Net
|
|
|
|
|
Income
|
|
(Costs)
|
|
Taxes
|
|
Provision
|
|
Income
|
|
Tax
Rate(6)
|
Amounts on GAAP
basis
|
|
$
|
42,116
|
|
$
|
6,558
|
|
$
|
48,674
|
|
$
|
9,074
|
|
$
|
39,600
|
|
18.6
|
%
|
Innovative technology
costs(1)
|
|
|
14,821
|
|
|
241
|
|
|
15,062
|
|
|
3,856
|
|
|
11,206
|
|
25.6
|
|
Purchase accounting
amortization(2)
|
|
|
3,192
|
|
|
—
|
|
|
3,192
|
|
|
794
|
|
|
2,398
|
|
24.9
|
|
Change in fair value of
contingent consideration(3)
|
|
|
(10,000)
|
|
|
—
|
|
|
(10,000)
|
|
|
(2,488)
|
|
|
(7,512)
|
|
(24.9)
|
|
Change in fair value of
equity investment(4)
|
|
|
—
|
|
|
(3,739)
|
|
|
(3,739)
|
|
|
(953)
|
|
|
(2,786)
|
|
(25.5)
|
|
Life insurance proceeds
and changes in cash surrender value
|
|
|
—
|
|
|
(1,086)
|
|
|
(1,086)
|
|
|
—
|
|
|
(1,086)
|
|
—
|
|
Tax benefit from vested
RSUs(5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,864
|
|
|
(3,864)
|
|
—
|
|
Non-GAAP
amounts
|
|
$
|
50,129
|
|
$
|
1,974
|
|
$
|
52,103
|
|
$
|
14,147
|
|
$
|
37,956
|
|
27.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
2023
|
|
|
|
|
Other
|
|
Income
|
|
Income
|
|
|
|
|
|
|
|
|
Operating
|
|
Income
|
|
Before
Income
|
|
Tax
|
|
Net
|
|
|
|
|
Income
|
|
(Costs)
|
|
Taxes
|
|
Provision
|
|
Income
|
|
Tax
Rate(6)
|
Amounts on GAAP
basis
|
|
$
|
63,275
|
|
$
|
8,944
|
|
$
|
72,219
|
|
$
|
13,772
|
|
$
|
58,447
|
|
19.1
|
%
|
Innovative technology
costs(1)
|
|
|
27,299
|
|
|
500
|
|
|
27,799
|
|
|
7,113
|
|
|
20,686
|
|
25.6
|
|
Purchase accounting
amortization(2)
|
|
|
6,384
|
|
|
—
|
|
|
6,384
|
|
|
1,588
|
|
|
4,796
|
|
24.9
|
|
Change in fair value of
contingent consideration(3)
|
|
|
5,040
|
|
|
—
|
|
|
5,040
|
|
|
1,253
|
|
|
3,787
|
|
24.9
|
|
Change in fair value of
equity investment(4)
|
|
|
—
|
|
|
(3,739)
|
|
|
(3,739)
|
|
|
(953)
|
|
|
(2,786)
|
|
(25.5)
|
|
Life insurance proceeds
and changes in cash surrender value
|
|
|
—
|
|
|
(2,582)
|
|
|
(2,582)
|
|
|
—
|
|
|
(2,582)
|
|
—
|
|
Tax benefit from vested
RSUs(5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,915
|
|
|
(4,915)
|
|
—
|
|
Non-GAAP
amounts
|
|
$
|
101,998
|
|
$
|
3,123
|
|
$
|
105,121
|
|
$
|
27,688
|
|
$
|
77,433
|
|
26.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended June 30, 2022
|
|
|
|
|
Other
|
|
Income
|
|
Income
|
|
|
|
|
|
CONTINUING
OPERATIONS
|
|
Operating
|
|
Income
|
|
Before
Income
|
|
Tax
|
|
Net
|
|
|
|
|
Income
|
|
(Costs)
|
|
Taxes
|
|
Provision
|
|
Income
|
|
Tax
Rate(6)
|
Amounts on GAAP
basis
|
|
$
|
136,038
|
|
$
|
(4,317)
|
|
$
|
131,721
|
|
$
|
30,179
|
|
$
|
101,542
|
|
22.9
|
%
|
Innovative technology
costs(1)
|
|
|
10,341
|
|
|
148
|
|
|
10,489
|
|
|
2,700
|
|
|
7,789
|
|
25.7
|
|
Purchase accounting
amortization(2)
|
|
|
3,214
|
|
|
—
|
|
|
3,214
|
|
|
817
|
|
|
2,397
|
|
25.4
|
|
Gain on sale of
subsidiary(7)
|
|
|
(402)
|
|
|
—
|
|
|
(402)
|
|
|
(85)
|
|
|
(317)
|
|
(21.1)
|
|
Life insurance proceeds
and changes in cash surrender value
|
|
|
—
|
|
|
2,710
|
|
|
2,710
|
|
|
—
|
|
|
2,710
|
|
—
|
|
Tax benefit from vested
RSUs(5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,059
|
|
|
(5,059)
|
|
—
|
|
Non-GAAP
amounts
|
|
$
|
149,191
|
|
$
|
(1,459)
|
|
$
|
147,732
|
|
$
|
38,670
|
|
$
|
109,062
|
|
26.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
2022
|
|
|
|
|
Other
|
|
Income
|
|
Income
|
|
|
|
|
|
|
|
|
Operating
|
|
Income
|
|
Before
Income
|
|
Tax
|
|
Net
|
|
|
|
|
Income
|
|
(Costs)
|
|
Taxes
|
|
Provision
|
|
Income
|
|
Tax
Rate(6)
|
Amounts on GAAP
basis
|
|
$
|
228,981
|
|
$
|
(6,984)
|
|
$
|
221,997
|
|
$
|
52,447
|
|
$
|
169,550
|
|
23.6
|
%
|
Innovative technology
costs(1)
|
|
|
20,027
|
|
|
277
|
|
|
20,304
|
|
|
5,226
|
|
|
15,078
|
|
25.7
|
|
Purchase accounting
amortization(2)
|
|
|
6,427
|
|
|
—
|
|
|
6,427
|
|
|
1,634
|
|
|
4,793
|
|
25.4
|
|
Change in fair value of
contingent consideration(3)
|
|
|
810
|
|
|
—
|
|
|
810
|
|
|
206
|
|
|
604
|
|
25.4
|
|
Gain on sale of
subsidiary(7)
|
|
|
(402)
|
|
|
—
|
|
|
(402)
|
|
|
(85)
|
|
|
(317)
|
|
(21.1)
|
|
Life insurance proceeds
and changes in cash surrender value
|
|
|
—
|
|
|
3,503
|
|
|
3,503
|
|
|
—
|
|
|
3,503
|
|
—
|
|
Tax benefit from vested
RSUs(5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,929
|
|
|
(5,929)
|
|
—
|
|
Non-GAAP
amounts
|
|
$
|
255,843
|
|
$
|
(3,204)
|
|
$
|
252,639
|
|
$
|
65,357
|
|
$
|
187,282
|
|
25.9
|
%
|
|
|
|
|
|
|
|
|
1)
|
Represents costs
associated with the Vaux freight handling pilot test program at ABF
Freight, costs related to our customer pilot offering of Vaux,
including human-centered remote operation software, and initiatives
to optimize our performance through technological
innovation.
|
2)
|
Represents the
amortization of acquired intangible assets in the Asset-Light
segment.
|
3)
|
Represents change in
fair value of the contingent earnout consideration recorded for the
MoLo acquisition, as previously described in the footnotes to the
Financial Statement Operating Segment Data and Operating Ratios
table.
|
4)
|
Represents increase in
fair value of our investment in Phantom Auto, the leading provider
of human-centered remote operation software, based on observable
price changes during second quarter 2023.
|
5)
|
Represents recognition
of the tax impact for the vesting of share-based
compensation.
|
6)
|
Tax rate for total
"Amounts on GAAP basis" represents the effective tax rate. The tax
effects of non-GAAP adjustments are calculated based on the
statutory rate applicable to each item based on tax jurisdiction,
unless the nature of the item requires the tax effect to be
estimated by applying a specific tax treatment.
|
7)
|
Gain relates to the
contingent amount recognized in second quarter 2022 when the funds
from the May 2021 sale of the labor services portion of the
Asset-Light segment's moving business were released from
escrow.
|
ARCBEST CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES –
Continued
Adjusted Earnings Before Interest, Taxes, Depreciation, and
Amortization (Adjusted EBITDA)
Management uses Adjusted
EBITDA as a key measure of performance and for business planning.
The measure is particularly meaningful for analysis of operating
performance because it excludes amortization of acquired
intangibles and software of the Asset-Light segment, changes in the
fair value of contingent consideration and equity investment, and
gain on sale of subsidiary, which are significant expenses or gains
resulting from strategic decisions rather than core daily
operations. Additionally, Adjusted EBITDA is a primary component of
the financial covenants contained in our credit agreement. The
calculation of Consolidated Adjusted EBITDA as presented below
begins with net income from continuing operations, which is the
most directly comparable GAAP measure. The calculation of
Asset-Light Adjusted EBITDA as presented below begins with
operating income, as other income (costs), income taxes, and net
income from continuing operations are reported at the consolidated
level and not included in the operating segment financial
information evaluated by management to make operating
decisions.
|
|
Three
Months Ended
|
|
Six Months Ended
|
|
|
June 30
|
|
|
June 30
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
|
($ thousands)
|
ArcBest Corporation
- Consolidated Adjusted EBITDA from Continuing
Operations
|
|
|
Net Income from
Continuing Operations
|
|
$
|
39,600
|
|
$
|
101,542
|
|
$
|
58,447
|
|
$
|
169,550
|
Interest and other
related financing costs
|
|
|
2,205
|
|
|
1,863
|
|
|
4,532
|
|
|
3,803
|
Income tax
provision
|
|
|
9,074
|
|
|
30,179
|
|
|
13,772
|
|
|
52,447
|
Depreciation and
amortization(1)
|
|
|
35,811
|
|
|
34,884
|
|
|
70,821
|
|
|
69,280
|
Amortization of
share-based compensation
|
|
|
3,350
|
|
|
3,799
|
|
|
5,532
|
|
|
6,500
|
Change in fair value of
contingent consideration(2)
|
|
|
(10,000)
|
|
|
—
|
|
|
5,040
|
|
|
810
|
Change in fair value of
equity investment(3)
|
|
|
(3,739)
|
|
|
—
|
|
|
(3,739)
|
|
|
—
|
Gain on sale of
subsidiary(4)
|
|
|
—
|
|
|
(402)
|
|
|
—
|
|
|
(402)
|
Consolidated Adjusted
EBITDA from Continuing Operations
|
|
$
|
76,301
|
|
$
|
171,865
|
|
$
|
154,405
|
|
$
|
301,988
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six Months Ended
|
|
|
|
June 30
|
|
June 30
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
(Unaudited)
|
|
|
|
($ thousands)
|
|
Asset-Light Adjusted
EBITDA(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
$
|
13,180
|
|
$
|
27,479
|
|
$
|
(911)
|
|
$
|
48,595
|
|
Depreciation and
amortization(1)
|
|
|
5,085
|
|
|
5,468
|
|
|
10,153
|
|
|
10,648
|
|
Change in fair value
of contingent consideration(2)
|
|
|
(10,000)
|
|
|
—
|
|
|
5,040
|
|
|
810
|
|
Gain on sale of
subsidiary(4)
|
|
|
—
|
|
|
(402)
|
|
|
—
|
|
|
(402)
|
|
Asset-Light Adjusted
EBITDA
|
|
$
|
8,265
|
|
$
|
32,545
|
|
$
|
14,282
|
|
$
|
59,651
|
|
|
|
|
|
|
|
|
|
1)
|
Includes amortization
of intangibles associated with acquired businesses.
|
2)
|
Represents change in
fair value of the contingent earnout consideration recorded for the
MoLo acquisition, as previously described in the footnotes to the
Financial Statement Operating Segment Data and Operating Ratios
table.
|
3)
|
Represents increase in
fair value of our investment in Phantom Auto, the leading provider
of human-centered remote operation software, based on observable
price changes during second quarter 2023.
|
4)
|
Gain relates to the
contingent amount recognized in second quarter 2022 when the funds
from the May 2021 sale of the labor services portion of the
Asset-Light segment's moving business were released from
escrow.
|
5)
|
Asset-Light represents
the reportable segment previously named ArcBest. Asset-Light
financial results previously included the ArcBest segment and
FleetNet, which sold on February 28, 2023.
|
ARCBEST
CORPORATION
OPERATING
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Six Months Ended
|
|
|
June 30
|
|
|
June 30
|
|
|
2023
|
|
2022
|
|
% Change
|
|
|
2023
|
|
2022
|
|
% Change
|
|
|
(Unaudited)
|
Asset-Based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Workdays
|
|
|
63.5
|
|
|
63.5
|
|
|
|
|
|
127.5
|
|
|
127.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Billed
Revenue(1) / CWT
|
|
$
|
40.72
|
|
$
|
45.76
|
|
(11.0 %)
|
|
|
$
|
41.33
|
|
$
|
44.77
|
|
(7.7 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Billed
Revenue(1) / Shipment
|
|
$
|
545.35
|
|
$
|
632.43
|
|
(13.8 %)
|
|
|
$
|
537.38
|
|
$
|
606.14
|
|
(11.3 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments
|
|
|
1,330,068
|
|
|
1,276,859
|
|
4.2 %
|
|
|
|
2,664,822
|
|
|
2,504,083
|
|
6.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments /
Day
|
|
|
20,946
|
|
|
20,108
|
|
4.2 %
|
|
|
|
20,901
|
|
|
19,717
|
|
6.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnage
(Tons)
|
|
|
890,686
|
|
|
882,367
|
|
0.9 %
|
|
|
|
1,732,204
|
|
|
1,695,097
|
|
2.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons / Day
|
|
|
14,027
|
|
|
13,896
|
|
0.9 %
|
|
|
|
13,586
|
|
|
13,347
|
|
1.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds /
Shipment
|
|
|
1,339
|
|
|
1,382
|
|
(3.1 %)
|
|
|
|
1,300
|
|
|
1,354
|
|
(4.0 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Length of Haul
(Miles)
|
|
|
1,122
|
|
|
1,096
|
|
2.4 %
|
|
|
|
1,109
|
|
|
1,088
|
|
1.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
Revenue for undelivered
freight is deferred for financial statement purposes in accordance
with the Asset-Based segment revenue recognition policy. Billed
revenue used for calculating revenue per hundredweight measurements
has not been adjusted for the portion of revenue deferred for
financial statement purposes.
|
|
|
Year Over Year %
Change
|
|
|
Three
Months Ended
|
Six Months Ended
|
|
|
June 30,
2023
|
June 30,
2023
|
|
|
(Unaudited)
|
Asset-Light(2)(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue /
Shipment
|
|
|
(30.0 %)
|
|
|
(30.3 %)
|
|
|
|
|
|
|
|
Shipments /
Day
|
|
|
3.5 %
|
|
|
2.3 %
|
|
|
|
|
|
|
|
|
2)
|
Asset-Light represents
the reportable segment previously named ArcBest.
|
3)
|
Statistical data
related to managed transportation solutions transactions is not
included in the presentation of operating statistics for the
Asset-Light segment for the periods presented.
|
|
|
Investor Relations
Contact: David Humphrey
|
Media
Contact: Autumnn Mahar
|
Title: Vice President –
Investor Relations
|
Title: Senior Manager,
PR and Social
|
Phone:
479-785-6200
|
Phone:
479-494-8221
|
Email:
dhumphrey@arcb.com
|
Email:
amahar@arcb.com
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/arcbest-announces-second-quarter-2023-results-301887915.html
SOURCE ArcBest