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ArcBest Announces Second Quarter 2024 Results

Strong gains in productivity and service metrics

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

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

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

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

Results of Operations Comparisons

Asset-Based

Second Quarter 2024 Versus Second Quarter 2023

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

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

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

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

Asset-Light

Second Quarter 2024 Versus Second Quarter 2023

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

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

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

Conference Call

ArcBest will host a conference call with company executives to discuss the quarterly results. The call will be today, Friday, August 2, 2024 at 9:30 a.m. EDT (8:30 a.m. CDT). Interested parties are invited to listen by calling (800) 715‑9871 or by joining the webcast which can be found on ArcBest’s website at arcb.com. Slides to accompany this call are included in Exhibit 99.3 of the Form 8-K filed on August 2, 2024, will be posted and available to download on the company’s website prior to the scheduled conference time, and will be included in the webcast. Following the call, a recorded playback will be available through the end of the day on August 15, 2024. To listen to the playback, dial (800) 770-2030. The conference call ID for the live conference call and the playback is 4743250. The conference call and playback can also be accessed through August 15, 2024 on ArcBest’s website at arcb.com.

About ArcBest

ArcBest® (Nasdaq: ARCB) is a multibillion-dollar integrated logistics company that helps keep the global supply chain moving. Founded in 1923 and now with 15,000 employees across 250 campuses and service centers, the company is a logistics powerhouse, using its technology, expertise and scale to connect shippers with the solutions they need — from ground, air and ocean transportation to fully managed supply chains. ArcBest has a long history of innovation that is enriched by deep customer relationships. With a commitment to helping customers navigate supply chain challenges now and in the future, the company is developing ground-breaking technology like Vaux™, one of the TIME Best Inventions of 2023. For more information, visit arcb.com.

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: Certain statements and information in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding (i) our expectations about our intrinsic value or our prospects for growth and value creation and (ii) our financial outlook, position, strategies, goals, and expectations. Terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “foresee,” “intend,” “may,” “plan,” “predict,” “project,” “scheduled,” “should,” “would,” and similar expressions and the negatives of such terms are intended to identify forward-looking statements. These statements are based on management’s beliefs, assumptions, and expectations based on currently available information, are not guarantees of future performance, and involve certain risks and uncertainties (some of which are beyond our control). Although we believe that the expectations reflected in these forward-looking statements are reasonable as and when made, we cannot provide assurance that our expectations will prove to be correct. Actual outcomes and results could materially differ from what is expressed, implied, or forecasted in these statements due to a number of factors, including, but not limited to: the effects of a widespread outbreak of an illness or disease or any other public health crisis, as well as regulatory measures implemented in response to such events; external events which may adversely affect us or the third parties who provide services for us, for which our business continuity plans may not adequately prepare us, including, but not limited to, acts of war or terrorism, or military conflicts; data privacy breaches, cybersecurity incidents, and/or failures of our information systems, including disruptions or failures of services essential to our operations or upon which our information technology platforms rely; interruption or failure of third-party software or information technology systems or licenses; untimely or ineffective development and implementation of, or failure to realize the potential benefits associated with, new or enhanced technology or processes, including our customer pilot offering of Vaux; the loss or reduction of business from large customers or an overall reduction in our customer base; the timing and performance of growth initiatives and the ability to manage our cost structure; the cost, integration, and performance of any recent or future acquisitions and the inability to realize the anticipated benefits of the acquisition within the expected time period or at all; unsolicited takeover proposals, proxy contests, and other proposals/actions by activist investors; maintaining our corporate reputation and intellectual property rights; nationwide or global disruption in the supply chain resulting in increased volatility in freight volumes; competitive initiatives and pricing pressures; increased prices for and decreased availability of equipment, including new revenue equipment, decreases in value of used revenue equipment, and higher costs of equipment-related operating expenses such as maintenance, fuel, and related taxes; availability of fuel, the effect of volatility in fuel prices and the associated changes in fuel surcharges on securing increases in base freight rates, and the inability to collect fuel surcharges; relationships with employees, including unions, and our ability to attract, retain, and upskill employees; unfavorable terms of, or the inability to reach agreement on, future collective bargaining agreements or a workforce stoppage by our employees covered under ABF Freight’s collective bargaining agreement; union employee wages and benefits, including changes in required contributions to multiemployer plans; availability and cost of reliable third-party services; our ability to secure independent owner-operators and/or operational or regulatory issues related to our use of their services; litigation or claims asserted against us; governmental regulations; environmental laws and regulations, including emissions-control regulations; default on covenants of financing arrangements and the availability and terms of future financing arrangements; our ability to generate sufficient cash from operations to support significant ongoing capital expenditure requirements and other business initiatives; self-insurance claims, insurance premium costs, and loss of our ability to self-insure; potential impairment of long-lived assets and goodwill and intangible assets; general economic conditions and related shifts in market demand that impact the performance and needs of industries we serve and/or limit our customers’ access to adequate financial resources; increasing costs due to inflation and higher interest rates; seasonal fluctuations, adverse weather conditions, natural disasters, and climate change; and other financial, operational, and legal risks and uncertainties detailed from time to time in ArcBest Corporation’s public filings with the Securities and Exchange Commission (“SEC”).

For additional information regarding known material factors that could cause our actual results to differ from those expressed in these forward-looking statements, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8K.

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events, or otherwise.

Financial Data and Operating Statistics

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

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30

 

June 30

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

(Unaudited)

 

 

 

($ thousands, except share and per share data)

 

REVENUES

 

$

1,077,831

 

 

$

1,103,464

 

 

$

2,114,250

 

 

$

2,209,558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

1,028,986

 

 

 

1,061,348

 

 

 

2,042,970

 

 

 

2,146,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

48,845

 

 

 

42,116

 

 

 

71,280

 

 

 

63,275

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (COSTS)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

 

3,241

 

 

 

3,725

 

 

 

6,556

 

 

 

6,658

 

 

Interest and other related financing costs

 

 

(2,078

)

 

 

(2,205

)

 

 

(4,306

)

 

 

(4,532

)

 

Other, net

 

 

(781

)

 

 

5,038

 

 

 

(28,980

)

 

 

6,818

 

 

 

 

 

382

 

 

 

6,558

 

 

 

(26,730

)

 

 

8,944

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

 

49,227

 

 

 

48,674

 

 

 

44,550

 

 

 

72,219

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX PROVISION

 

 

2,303

 

 

 

9,074

 

 

 

538

 

 

 

13,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME FROM CONTINUING OPERATIONS

 

 

46,924

 

 

 

39,600

 

 

 

44,012

 

 

 

58,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX(1)

 

 

 

 

 

843

 

 

 

600

 

 

 

53,279

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

46,924

 

 

$

40,443

 

 

$

44,612

 

 

$

111,726

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC EARNINGS PER COMMON SHARE(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

1.99

 

 

$

1.65

 

 

$

1.87

 

 

$

2.42

 

 

Discontinued operations(1)

 

 

 

 

 

0.04

 

 

 

0.03

 

 

 

2.20

 

 

 

 

$

1.99

 

 

$

1.68

 

 

$

1.89

 

 

$

4.62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DILUTED EARNINGS PER COMMON SHARE(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

1.96

 

 

$

1.60

 

 

$

1.83

 

 

$

2.35

 

 

Discontinued operations(1)

 

 

 

 

 

0.03

 

 

 

0.02

 

 

 

2.14

 

 

 

 

$

1.96

 

 

$

1.64

 

 

$

1.86

 

 

$

4.49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

23,618,318

 

 

 

24,064,882

 

 

 

23,589,814

 

 

 

24,175,893

 

 

Diluted

 

 

23,919,613

 

 

 

24,672,948

 

 

 

24,025,499

 

 

 

24,864,691

 

 

_________________________
1)  

Represents the discontinued operations of FleetNet America® (“FleetNet”), which sold on February 28, 2023. The six months ended June 30, 2024 represents adjustments related to the prior year gain on sale of FleetNet. The six months ended June 30, 2023 includes the net gain on sale of FleetNet of $52.3 million after-tax, or $2.16 basic earnings per share and $2.10 diluted earnings per share.

2)  

Earnings per common share is calculated in total and may not equal the sum of earnings per common share from continuing operations and discontinued operations due to rounding.

ARCBEST CORPORATION

CONSOLIDATED BALANCE SHEETS

 

 

June 30

 

December 31

 

 

 

2024

 

 

2023

 

 

 

 

(Unaudited)

 

Note

 

 

 

($ thousands, except share data)

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

215,590

 

 

$

262,226

 

 

Short-term investments

 

 

44,865

 

 

 

67,842

 

 

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

 

 

429,511

 

 

 

430,122

 

 

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

 

 

11,846

 

 

 

52,124

 

 

Prepaid expenses

 

 

31,835

 

 

 

37,034

 

 

Prepaid and refundable income taxes

 

 

22,555

 

 

 

24,319

 

 

Other

 

 

11,011

 

 

 

11,116

 

 

TOTAL CURRENT ASSETS

 

 

767,213

 

 

 

884,783

 

 

 

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT

 

 

 

 

 

 

 

Land and structures

 

 

507,194

 

 

 

460,068

 

 

Revenue equipment

 

 

1,143,985

 

 

 

1,126,055

 

 

Service, office, and other equipment

 

 

326,633

 

 

 

319,466

 

 

Software

 

 

177,933

 

 

 

173,354

 

 

Leasehold improvements

 

 

27,675

 

 

 

24,429

 

 

 

 

 

2,183,420

 

 

 

2,103,372

 

 

Less allowances for depreciation and amortization

 

 

1,212,381

 

 

 

1,188,548

 

 

PROPERTY, PLANT AND EQUIPMENT, NET

 

 

971,039

 

 

 

914,824

 

 

 

 

 

 

 

 

 

 

GOODWILL

 

 

304,753

 

 

 

304,753

 

 

INTANGIBLE ASSETS, NET

 

 

94,740

 

 

 

101,150

 

 

OPERATING RIGHT-OF-USE ASSETS

 

 

186,779

 

 

 

169,999

 

 

DEFERRED INCOME TAXES

 

 

9,974

 

 

 

8,140

 

 

OTHER LONG-TERM ASSETS

 

 

74,031

 

 

 

101,445

 

 

TOTAL ASSETS

 

$

2,408,529

 

 

$

2,485,094

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Accounts payable

 

$

222,303

 

 

$

214,004

 

 

Income taxes payable

 

 

 

 

 

10,410

 

 

Accrued expenses

 

 

332,258

 

 

 

378,029

 

 

Current portion of long-term debt

 

 

58,615

 

 

 

66,948

 

 

Current portion of operating lease liabilities

 

 

32,674

 

 

 

32,172

 

 

TOTAL CURRENT LIABILITIES

 

 

645,850

 

 

 

701,563

 

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT, less current portion

 

 

144,972

 

 

 

161,990

 

 

OPERATING LEASE LIABILITIES, less current portion

 

 

185,637

 

 

 

176,621

 

 

POSTRETIREMENT LIABILITIES, less current portion

 

 

13,264

 

 

 

13,319

 

 

CONTINGENT CONSIDERATION

 

 

104,070

 

 

 

92,900

 

 

OTHER LONG-TERM LIABILITIES

 

 

37,606

 

 

 

40,553

 

 

DEFERRED INCOME TAXES

 

 

45,592

 

 

 

55,785

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

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

 

 

304

 

 

 

300

 

 

Additional paid-in capital

 

 

324,645

 

 

 

340,961

 

 

Retained earnings

 

 

1,311,549

 

 

 

1,272,584

 

 

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

 

 

(407,433

)

 

 

(375,806

)

 

Accumulated other comprehensive income

 

 

2,473

 

 

 

4,324

 

 

TOTAL STOCKHOLDERS’ EQUITY

 

 

1,231,538

 

 

 

1,242,363

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

2,408,529

 

 

$

2,485,094

 

 

_________________________

Note: The balance sheet at December 31, 2023 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

June 30

 

 

 

2024

 

 

2023

 

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income

 

$

44,612

 

 

$

111,726

 

 

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

 

 

 

 

 

 

 

Depreciation and amortization

 

 

66,693

 

 

 

64,804

 

 

Amortization of intangibles

 

 

6,416

 

 

 

6,398

 

 

Share-based compensation expense

 

 

6,322

 

 

 

5,585

 

 

Provision for losses on accounts receivable

 

 

1,248

 

 

 

2,257

 

 

Change in deferred income taxes

 

 

(11,457

)

 

 

(8,228

)

 

Loss on sale of property and equipment

 

 

565

 

 

 

1,188

 

 

Pre-tax gain on sale of discontinued operations

 

 

(806

)

 

 

(70,215

)

 

Change in fair value of contingent consideration

 

 

11,170

 

 

 

5,040

 

 

Change in fair value of equity investment

 

 

28,739

 

 

 

(3,739

)

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Receivables

 

 

38,702

 

 

 

83,542

 

 

Prepaid expenses

 

 

5,199

 

 

 

6,353

 

 

Other assets

 

 

(2,789

)

 

 

759

 

 

Income taxes

 

 

(8,806

)

 

 

(35,968

)

 

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

 

 

(7,262

)

 

 

3,059

 

 

Accounts payable, accrued expenses, and other liabilities

 

 

(38,344

)

 

 

(68,804

)

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

 

140,202

 

 

 

103,757

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

Purchases of property, plant and equipment, net of financings

 

 

(104,909

)

 

 

(83,171

)

 

Proceeds from sale of property and equipment

 

 

2,341

 

 

 

2,853

 

 

Proceeds from sale of discontinued operations

 

 

 

 

 

100,949

 

 

Purchases of short-term investments

 

 

(5,236

)

 

 

(46,858

)

 

Proceeds from sale of short-term investments

 

 

28,504

 

 

 

63,693

 

 

Capitalization of internally developed software

 

 

(7,779

)

 

 

(7,010

)

 

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

 

 

(87,079

)

 

 

30,456

 

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

Payments on long-term debt

 

 

(35,705

)

 

 

(35,114

)

 

Net change in book overdrafts

 

 

(4,146

)

 

 

(13,171

)

 

Deferred financing costs

 

 

 

 

 

57

 

 

Payment of common stock dividends

 

 

(5,647

)

 

 

(5,809

)

 

Purchases of treasury stock

 

 

(31,627

)

 

 

(41,240

)

 

Payments for tax withheld on share-based compensation

 

 

(22,634

)

 

 

(10,022

)

 

NET CASH USED IN FINANCING ACTIVITIES

 

 

(99,759

)

 

 

(105,299

)

 

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

(46,636

)

 

 

28,914

 

 

Cash and cash equivalents of continuing operations at beginning of period

 

 

262,226

 

 

 

158,264

 

 

Cash and cash equivalents of discontinued operations at beginning of period

 

 

 

 

 

108

 

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

215,590

 

 

$

187,286

 

 

 

 

 

 

 

 

 

 

NONCASH INVESTING ACTIVITIES

 

 

 

 

 

 

 

Equipment financed

 

$

10,354

 

 

$

3,478

 

 

Accruals for equipment received

 

$

3,904

 

 

$

10,106

 

 

Lease liabilities arising from obtaining right-of-use assets

 

$

26,001

 

 

$

43,366

 

 

_________________________

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

ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30

 

 

June 30

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

(Unaudited)

 

 

($ thousands, except percentages)

 

REVENUES FROM CONTINUING OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

$

712,725

 

 

 

 

 

$

722,015

 

 

 

 

 

$

1,384,192

 

 

 

 

 

$

1,419,832

 

 

 

 

Asset-Light

 

395,817

 

 

 

 

 

 

409,816

 

 

 

 

 

 

792,180

 

 

 

 

 

 

847,908

 

 

 

 

Other and eliminations

 

(30,711

)

 

 

 

 

 

(28,367

)

 

 

 

 

 

(62,122

)

 

 

 

 

 

(58,182

)

 

 

 

Total consolidated revenues from continuing operations

$

1,077,831

 

 

 

 

 

$

1,103,464

 

 

 

 

 

$

2,114,250

 

 

 

 

 

$

2,209,558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES FROM CONTINUING OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages, and benefits

$

352,678

 

 

49.5

%

 

$

344,538

 

 

47.7

 

%

 

$

697,677

 

 

50.4

%

 

$

680,143

 

 

47.9

%

Fuel, supplies, and expenses

 

82,938

 

 

11.6

 

 

 

90,897

 

 

12.6

 

 

 

 

163,982

 

 

11.8

 

 

 

185,185

 

 

13.1

 

Operating taxes and licenses

 

13,557

 

 

1.9

 

 

 

14,094

 

 

2.0

 

 

 

 

27,086

 

 

2.0

 

 

 

28,073

 

 

2.0

 

Insurance

 

16,964

 

 

2.4

 

 

 

12,889

 

 

1.8

 

 

 

 

31,446

 

 

2.3

 

 

 

26,162

 

 

1.8

 

Communications and utilities

 

4,412

 

 

0.6

 

 

 

4,553

 

 

0.6

 

 

 

 

9,211

 

 

0.7

 

 

 

9,857

 

 

0.7

 

Depreciation and amortization

 

26,646

 

 

3.8

 

 

 

25,273

 

 

3.5

 

 

 

 

53,653

 

 

3.9

 

 

 

50,184

 

 

3.5

 

Rents and purchased transportation

 

70,315

 

 

9.9

 

 

 

101,922

 

 

14.1

 

 

 

 

135,986

 

 

9.8

 

 

 

192,666

 

 

13.6

 

Shared services

 

72,245

 

 

10.1

 

 

 

74,468

 

 

10.3

 

 

 

 

137,159

 

 

9.9

 

 

 

139,081

 

 

9.8

 

(Gain) loss on sale of property and equipment

 

(91

)

 

 

 

 

416

 

 

0.1

 

 

 

 

58

 

 

 

 

 

365

 

 

 

Innovative technology costs(1)

 

 

 

 

 

 

8,343

 

 

1.1

 

 

 

 

 

 

 

 

 

14,411

 

 

1.0

 

Other

 

269

 

 

 

 

 

1,297

 

 

0.2

 

 

 

 

1,686

 

 

0.1

 

 

 

2,909

 

 

0.2

 

Total Asset-Based

 

639,933

 

 

89.8

%

 

 

678,690

 

 

94.0

 

%

 

 

1,257,944

 

 

90.9

%

 

 

1,329,036

 

 

93.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Light

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

$

339,247

 

 

85.7

%

 

$

343,102

 

 

83.7

 

%

 

$

683,369

 

 

86.3

%

 

$

713,265

 

 

84.1

%

Salaries, wages, and benefits(2)

 

31,036

 

 

7.8

 

 

 

32,485

 

 

7.9

 

 

 

 

61,340

 

 

7.7

 

 

 

67,495

 

 

8.0

 

Supplies and expenses(2)

 

2,768

 

 

0.7

 

 

 

2,905

 

 

0.7

 

 

 

 

5,577

 

 

0.7

 

 

 

6,534

 

 

0.8

 

Depreciation and amortization(3)

 

5,039

 

 

1.3

 

 

 

5,085

 

 

1.2

 

 

 

 

10,117

 

 

1.3

 

 

 

10,153

 

 

1.2

 

Shared services(2)

 

17,297

 

 

4.4

 

 

 

16,500

 

 

4.1

 

 

 

 

33,571

 

 

4.2

 

 

 

33,014

 

 

3.9

 

Contingent consideration(4)

 

3,850

 

 

1.0

 

 

 

(10,000

)

 

(2.4

)

 

 

 

11,170

 

 

1.4

 

 

 

5,040

 

 

0.6

 

Other(2)

 

6,078

 

 

1.5

 

 

 

6,559

 

 

1.6

 

 

 

 

11,792

 

 

1.5

 

 

 

13,318

 

 

1.5

 

Total Asset-Light

 

405,315

 

 

102.4

%

 

 

396,636

 

 

96.8

 

%

 

 

816,936

 

 

103.1

%

 

 

848,819

 

 

100.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations(5)

 

(16,262

)

 

 

 

 

 

(13,978

)

 

 

 

 

 

(31,910

)

 

 

 

 

 

(31,572

)

 

 

 

Total consolidated operating expenses from continuing operations

$

1,028,986

 

 

95.5

%

 

$

1,061,348

 

 

96.2

 

%

 

$

2,042,970

 

 

96.6

%

 

$

2,146,283

 

 

97.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

$

72,792

 

 

 

 

 

$

43,325

 

 

 

 

 

$

126,248

 

 

 

 

 

$

90,796

 

 

 

 

Asset-Light

 

(9,498

)

 

 

 

 

 

13,180

 

 

 

 

 

 

(24,756

)

 

 

 

 

 

(911

)

 

 

 

Other and eliminations(5)

 

(14,449

)

 

 

 

 

 

(14,389

)

 

 

 

 

 

(30,212

)

 

 

 

 

 

(26,610

)

 

 

 

Total consolidated operating income from continuing operations

$

48,845

 

 

 

 

 

$

42,116

 

 

 

 

 

$

71,280

 

 

 

 

 

$

63,275

 

 

 

 

_________________________
1)  

Represents costs associated with the freight handling pilot test program at ABF Freight, for which the decision was made to pause the pilot during third quarter 2023.

2)  

For the 2023 period, certain expenses have been reclassed to conform to the current year presentation, including amounts previously reported in “Shared services” that were reclassed to present “Salaries, wages, and benefits” expenses in a separate line item.

3)  

Includes amortization of intangibles associated with acquired businesses.

4)  

Represents the change in fair value of the contingent earnout consideration recorded for the MoLo acquisition. The liability for contingent consideration is remeasured at each quarterly reporting date, and any change in fair value as a result of the recurring assessments is recognized in operating income (loss). The contingent consideration for the MoLo acquisition will be paid based on achievement of certain targets of adjusted earnings before interest, taxes, depreciation, and amortization, as adjusted for certain items pursuant to the merger agreement, for years 2023 through 2025, including catch-up provisions.

5)   

“Other and eliminations” includes corporate costs for certain unallocated shared service costs which are not attributable to any segment, additional investments to offer comprehensive transportation and logistics services across multiple operating segments, costs related to our customer pilot offering of Vaux, and other investments in ArcBest technology and innovations.

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

Non-GAAP Financial Measures

We report our financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP performance measures and ratios utilized for internal analysis provide analysts, investors, and others the same information that we use internally for purposes of assessing our core operating performance and provides meaningful comparisons between current and prior period results, as well as important information regarding performance trends. Accordingly, non-GAAP results are presented on a continuing operations basis, excluding the discontinued operations of FleetNet, which sold on February 28, 2023. The use of certain non-GAAP measures improves comparability in analyzing our performance because it removes the impact of items from operating results that, in management's opinion, do not reflect our core operating performance. Other companies may calculate non-GAAP measures differently; therefore, our calculation may not be comparable to similarly titled measures of other companies. Certain information discussed in the scheduled conference call could be considered non-GAAP measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results. These financial measures should not be construed as better measurements than operating income, net income or earnings per share, as determined under GAAP.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30

 

June 30

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

ArcBest Corporation - Consolidated

 

(Unaudited)

 

 

 

($ thousands, except per share data)

 

Operating Income from Continuing Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

48,845

 

 

$

42,116

 

 

$

71,280

 

 

$

63,275

 

 

Innovative technology costs, pre-tax(1)

 

 

8,311

 

 

 

14,821

 

 

 

18,009

 

 

 

27,299

 

 

Purchase accounting amortization, pre-tax(2)

 

 

3,192

 

 

 

3,192

 

 

 

6,384

 

 

 

6,384

 

 

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

 

 

3,850

 

 

 

(10,000

)

 

 

11,170

 

 

 

5,040

 

 

Non-GAAP amounts

 

$

64,198

 

 

$

50,129

 

 

$

106,843

 

 

$

101,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income from Continuing Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

46,924

 

 

$

39,600

 

 

$

44,012

 

 

$

58,447

 

 

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

 

 

6,380

 

 

 

11,206

 

 

 

13,820

 

 

 

20,686

 

 

Purchase accounting amortization, after-tax(2)

 

 

2,400

 

 

 

2,398

 

 

 

4,801

 

 

 

4,796

 

 

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

 

 

2,896

 

 

 

(7,512

)

 

 

8,401

 

 

 

3,787

 

 

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

 

 

 

 

 

(2,786

)

 

 

21,603

 

 

 

(2,786

)

 

Life insurance proceeds and changes in cash surrender value

 

 

(440

)

 

 

(1,086

)

 

 

(1,673

)

 

 

(2,582

)

 

Tax benefit from vested RSUs(5)

 

 

(10,777

)

 

 

(3,864

)

 

 

(11,264

)

 

 

(4,915

)

 

Non-GAAP amounts

 

$

47,383

 

 

$

37,956

 

 

$

79,700

 

 

$

77,433

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share from Continuing Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

1.96

 

 

$

1.60

 

 

$

1.83

 

 

$

2.35

 

 

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

 

 

0.27

 

 

 

0.45

 

 

 

0.58

 

 

 

0.83

 

 

Purchase accounting amortization, after-tax(2)

 

 

0.10

 

 

 

0.10

 

 

 

0.20

 

 

 

0.19

 

 

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

 

 

0.12

 

 

 

(0.30

)

 

 

0.35

 

 

 

0.15

 

 

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

 

 

 

 

 

(0.11

)

 

 

0.90

 

 

 

(0.11

)

 

Life insurance proceeds and changes in cash surrender value

 

 

(0.02

)

 

 

(0.04

)

 

 

(0.07

)

 

 

(0.10

)

 

Tax benefit from vested RSUs(5)

 

 

(0.45

)

 

 

(0.16

)

 

 

(0.47

)

 

 

(0.20

)

 

Non-GAAP amounts(6)

 

$

1.98

 

 

$

1.54

 

 

$

3.32

 

 

$

3.11

 

 

_________________________

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

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30

 

June 30

 

 

 

2024

 

2023

 

2024

 

2023

 

Segment Operating Income (Loss) Reconciliations

 

(Unaudited)

 

 

 

($ thousands, except percentages)

 

Asset-Based Segment

 

 

 

 

 

Operating Income ($) and Operating Ratio

(% of revenues)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

72,792

 

 

89.8

 

%

 

$

43,325

 

 

94.0

 

%

 

$

126,248

 

 

90.9

 

%

 

$

90,796

 

 

93.6

 

%

 

Innovative technology costs, pre-tax(7)

 

 

 

 

 

 

 

 

8,343

 

 

(1.1

)

 

 

 

 

 

 

 

 

 

14,411

 

 

(1.0

)

 

 

Non-GAAP amounts(6)

 

$

72,792

 

 

89.8

 

%

 

$

51,668

 

 

92.8

 

%

 

$

126,248

 

 

90.9

 

%

 

$

105,207

 

 

92.6

 

%

 

 

 

 

 

 

 

Asset-Light Segment

 

 

 

 

 

Operating Income (Loss) ($) and Operating Ratio

(% of revenues)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

(9,498

)

 

102.4

 

%

 

$

13,180

 

 

96.8

 

%

 

$

(24,756

)

 

103.1

 

%

 

$

(911

)

 

100.1

 

%

 

Purchase accounting amortization, pre-tax(2)

 

 

3,192

 

 

(0.8

)

 

 

 

3,192

 

 

(0.8

)

 

 

 

6,384

 

 

(0.8

)

 

 

 

6,384

 

 

(0.8

)

 

 

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

 

 

3,850

 

 

(1.0

)

 

 

 

(10,000

)

 

2.4

 

 

 

 

11,170

 

 

(1.4

)

 

 

 

5,040

 

 

(0.6

)

 

 

Non-GAAP amounts(6)

 

$

(2,456

)

 

100.6

 

%

 

$

6,372

 

 

98.4

 

%

 

$

(7,202

)

 

100.9

 

%

 

$

10,513

 

 

98.8

 

%

 

 

 

 

 

 

 

Other and Eliminations

 

 

 

 

 

Operating Income (Loss) ($)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

(14,449

)

 

 

 

 

$

(14,389

)

 

 

 

 

$

(30,212

)

 

 

 

 

$

(26,610

)

 

 

 

 

Innovative technology costs, pre-tax(1)

 

 

8,311

 

 

 

 

 

 

6,478

 

 

 

 

 

 

18,009

 

 

 

 

 

 

12,888

 

 

 

 

 

Non-GAAP amounts(6)

 

$

(6,138

)

 

 

 

 

$

(7,911

)

 

 

 

 

$

(12,203

)

 

 

 

 

$

(13,722

)

 

 

 

 

_________________________

Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this Segment Operating Income (Loss) Reconciliations non-GAAP table.

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, 2024

 

 

 

 

 

Other

 

Income

 

Income

 

 

 

 

 

CONTINUING OPERATIONS

 

Operating

 

Income

 

Before Income

 

Tax

 

Net

 

 

 

 

Income

 

(Costs)

 

Taxes

 

Provision

 

Income

 

Tax Rate(8)

Amounts on GAAP basis

 

$

48,845

 

$

382

 

 

$

49,227

 

 

$

2,303

 

$

46,924

 

 

4.7

%

Innovative technology costs(1)

 

 

8,311

 

 

172

 

 

 

8,483

 

 

 

2,103

 

 

6,380

 

 

24.8

 

Purchase accounting amortization(2)

 

 

3,192

 

 

 

 

 

3,192

 

 

 

792

 

 

2,400

 

 

24.8

 

Change in fair value of contingent consideration(3)

 

 

3,850

 

 

 

 

 

3,850

 

 

 

954

 

 

2,896

 

 

24.8

 

Life insurance proceeds and changes in cash surrender value

 

 

 

 

(440

)

 

 

(440

)

 

 

 

 

(440

)

 

 

Tax benefit from vested RSUs(5)

 

 

 

 

 

 

 

 

 

 

10,777

 

 

(10,777

)

 

 

Non-GAAP amounts

 

$

64,198

 

$

114

 

 

$

64,312

 

 

$

16,929

 

$

47,383

 

 

26.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2024

 

 

 

 

Other

 

Income

 

Income

 

 

 

 

 

 

 

 

Operating

 

Income

 

Before Income

 

Tax

 

Net

 

 

 

 

Income

 

(Costs)

 

Taxes

 

Provision

 

Income

 

Tax Rate(8)

Amounts on GAAP basis

 

$

71,280

 

$

(26,730

)

 

$

44,550

 

 

$

538

 

$

44,012

 

 

1.2

%

Innovative technology costs(1)

 

 

18,009

 

 

367

 

 

 

18,376

 

 

 

4,556

 

 

13,820

 

 

24.8

 

Purchase accounting amortization(2)

 

 

6,384

 

 

 

 

 

6,384

 

 

 

1,583

 

 

4,801

 

 

24.8

 

Change in fair value of contingent consideration(3)

 

 

11,170

 

 

 

 

 

11,170

 

 

 

2,769

 

 

8,401

 

 

24.8

 

Change in fair value of equity investment(4)

 

 

 

 

28,739

 

 

 

28,739

 

 

 

7,136

 

 

21,603

 

 

24.8

 

Life insurance proceeds and changes in cash surrender value

 

 

 

 

(1,673

)

 

 

(1,673

)

 

 

 

 

(1,673

)

 

 

Tax benefit from vested RSUs(5)

 

 

 

 

 

 

 

 

 

 

11,264

 

 

(11,264

)

 

 

Non-GAAP amounts

 

$

106,843

 

$

703

 

 

$

107,546

 

 

$

27,846

 

$

79,700

 

 

25.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2023

 

 

 

 

Other

 

Income

 

Income

 

 

 

 

 

CONTINUING OPERATIONS

 

Operating

 

Income

 

Before Income

 

Tax

 

Net

 

 

 

 

Income

 

(Costs)

 

Taxes

 

Provision

 

Income

 

Tax Rate(8)

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(8)

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

 

%

_________________________

Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this Effective Tax Rate Reconciliation non-GAAP table.

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 and changes in the fair values of contingent consideration and our equity investment, which are significant expenses resulting from strategic decisions or other factors 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 (loss), 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

 

 

 

2024

 

2023

 

 

2024

 

2023

 

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

ArcBest Corporation - Consolidated Adjusted EBITDA from Continuing Operations

 

 

Net Income from Continuing Operations

 

$

46,924

 

$

39,600

 

 

$

44,012

 

$

58,447

 

 

Interest and other related financing costs

 

 

2,078

 

 

2,205

 

 

 

4,306

 

 

4,532

 

 

Income tax provision

 

 

2,303

 

 

9,074

 

 

 

538

 

 

13,772

 

 

Depreciation and amortization(9)

 

 

36,276

 

 

35,811

 

 

 

73,109

 

 

70,821

 

 

Amortization of share-based compensation

 

 

3,433

 

 

3,350

 

 

 

6,322

 

 

5,532

 

 

Change in fair value of contingent consideration(3)

 

 

3,850

 

 

(10,000

)

 

 

11,170

 

 

5,040

 

 

Change in fair value of equity investment(4)

 

 

 

 

(3,739

)

 

 

28,739

 

 

(3,739

)

 

Consolidated Adjusted EBITDA from Continuing Operations

 

$

94,864

 

$

76,301

 

 

$

168,196

 

$

154,405

 

 

_________________________

Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this ArcBest Corporation – Consolidated Adjusted EBITDA from Continuing Operations non-GAAP table.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30

 

June 30

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

Asset-Light Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

$

(9,498

)

 

$

13,180

 

 

$

(24,756

)

 

$

(911

)

 

Depreciation and amortization(9)

 

 

5,039

 

 

 

5,085

 

 

 

10,117

 

 

 

10,153

 

 

Change in fair value of contingent consideration(3)

 

 

3,850

 

 

 

(10,000

)

 

 

11,170

 

 

 

5,040

 

 

Asset-Light Adjusted EBITDA

 

$

(609

)

 

$

8,265

 

 

$

(3,469

)

 

$

14,282

 

 

_________________________

Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this Asset-Light Adjusted EBITDA non-GAAP table.

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued

 

Notes to Non-GAAP Financial Tables

 

The following footnotes apply to the non-GAAP financial tables presented in this press release.

 
1)

Represents costs related to our customer pilot offering of Vaux and initiatives to optimize our performance through technological innovation. The 2023 period also includes costs associated with the freight handling pilot test program at ABF Freight, for which the decision was made to pause the pilot during third quarter 2023.

2)

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)

For the six months ended June 30, 2024, represents a noncash impairment charge to write off our equity investment in Phantom Auto, a provider of human-centered remote operation software, which ceased operations during first quarter 2024. For the three and six months ended June 30, 2023, represents the increase in fair value of our investment in Phantom Auto based on observable price changes during second quarter 2023.

5)

Represents recognition of the tax impact for the vesting of share-based compensation.

6)

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.

7)

Represents costs associated with the freight handling pilot test program at ABF Freight, for which the decision was made to pause the pilot during third quarter 2023.

8)

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.

9)

Includes amortization of intangibles associated with acquired businesses.

ARCBEST CORPORATION

OPERATING STATISTICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30

 

 

June 30

 

 

 

2024

 

2023

 

% Change

 

 

2024

 

2023

 

% Change

 

 

 

(Unaudited)

 

Asset-Based

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Workdays

 

 

64.0

 

 

63.5

 

 

 

 

 

127.5

 

 

127.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Billed Revenue(1) / CWT

 

$

50.09

 

$

40.72

 

23.0

%

 

 

$

49.34

 

$

41.33

 

19.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Billed Revenue(1) / Shipment

 

$

562.17

 

$

545.35

 

3.1

%

 

 

$

552.64

 

$

537.38

 

2.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage / Day

 

 

11,186

 

 

14,027

 

(20.3

%)

 

 

 

11,062

 

 

13,586

 

(18.6

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments / Day

 

 

19,934

 

 

20,946

 

(4.8

%)

 

 

 

19,751

 

 

20,901

 

(5.5

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments / DSY hour

 

 

0.448

 

 

0.417

 

7.4

%

 

 

 

0.445

 

 

0.424

 

5.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weight / Shipment

 

 

1,122

 

 

1,339

 

(16.2

%)

 

 

 

1,120

 

 

1,300

 

(13.8

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Length of Haul (Miles)

 

 

1,135

 

 

1,122

 

1.2

%

 

 

 

1,123

 

 

1,109

 

1.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

_________________________
1)

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

 

 

 

 

 

 

 

 

 

Year Over Year % Change

 

 

Three Months Ended

Six Months Ended

 

 

June 30, 2024

June 30, 2024

 

 

(Unaudited)

Asset-Light(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue / Shipment

 

 

(14.9%)

 

 

(17.4%)

 

 

 

 

 

 

 

Shipments / Day

 

 

12.6%

 

 

13.1%

_________________________
2)

Statistical data for the periods presented include transactions related to managed transportation solutions which were previously excluded from the presentation of operating statistics for the Asset-Light segment for the three and six months ended June 30, 2023.

 

Contacts

Investor Relations Contact: Amy Mendenhall

Title: Vice President – Treasury & Investor Relations

Phone: 479-785-6200

Email: invrel@arcb.com

Media Contact: Autumnn Mahar

Title: Director External Communications and Public Relations

Phone: 479-494-8221

Email: amahar@arcb.com

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