Delivers Double-Digit Percentage Revenue
Growth In Each Operating Segment; On Track To Deliver Record Annual
Revenues in 2022
- Third quarter 2022 revenue of $1.4
billion increased 33.0 percent over third quarter 2021.
- Net income improved to $88.8
million, or $3.50 per diluted
share. On a non-GAAP basis, third quarter 2022 net income was
$96.4 million, or $3.80 per diluted share.
FORT
SMITH, Ark., Nov. 1, 2022
/PRNewswire/ -- ArcBest® (Nasdaq: ARCB), a leader
in supply chain logistics, today reported third quarter
2022 revenue of $1.4
billion, an increase of $335.2
million compared to third quarter 2021. Each operating
segment achieved double-digit percentage revenue growth over
the prior year period. Third quarter 2022 results include the
impact of the acquisition of MoLo Solutions, LLC ("MoLo"),
which was completed in November
2021.
ArcBest's third quarter 2022 operating income was
$115.8 million and net income was
$88.8 million, or $3.50 per diluted share, compared to
operating income of $87.6 million and
net income of $63.7 million, or
$2.38 per diluted share, in the
third quarter of 2021.
Excluding certain items in both periods as identified in the
attached reconciliation tables, third quarter non-GAAP operating
income was $131.1
million, compared to $98.4 million in the prior-year period. On a
non-GAAP basis, net income was $96.4
million, or $3.80 per diluted
share, compared to $70.9
million, or $2.65 per diluted
share, in the third quarter of 2021.
"Our third quarter results reflect the benefits of our
growth strategy and continue a track record of impressive
performances as we bring our best-in-class approach to customers
more efficiently and effectively every single day," said
Judy R. McReynolds, ArcBest
chairman, president and CEO. "Despite a more challenging economic
environment, we continue to invest in our team, solutions and
facilities. We remain focused on delivering for our customers to
provide them the reliability, flexibility and
sustainability they need in their supply chains. This year we
are on track to deliver more than $5 billion in annual revenue
for the first time in our hundred-year history. We are confident
that future growth opportunities remain bright as we work to
achieve our long-term financial targets."
Third Quarter Results of Operations Comparisons
Asset-Based
Third Quarter 2022 Versus Third Quarter 2021
- Revenue of $791.5 million
compared to $681.2 million, a per-day
increase of 16.2 percent.
- Total tonnage per day increase of 4.4 percent, including an
increase of 1.9 percent in LTL-rated weight per shipment.
- Total shipments per day increased 2.8 percent.
- Total billed revenue per hundredweight increased 11.1 percent
and was positively impacted by higher fuel surcharges. Revenue per
hundredweight on LTL-rated business, excluding fuel surcharge,
improved by a percentage in the high single digits.
- Operating income of $109.3
million and an operating ratio of 86.2 percent compared to
operating income of $83.6 million and
an operating ratio of 87.7 percent. On a non-GAAP basis, operating
income of $116.6 million and an
operating ratio of 85.3 percent compared to operating income of
$90.5 million and an operating ratio
of 86.7 percent.
ArcBest's Asset-Based business continued its recent pattern of
revenue growth as customer demand softened some but remained at a
good level. Higher third quarter shipments and tonnage, combined
with an increase in average weight per shipment, resulted in a
revenue increase versus the same period last year. Following
the robust year-over-year increase in third quarter 2021, current
pricing levels remain solid and were enhanced by higher fuel
surcharges. To facilitate continued growth, ABF Freight continues
its successful actions to add personnel in key locations. Despite
experiencing cost pressures across the network, ArcBest's
Asset-Based business improved its third quarter profitability due
to the collaborative efforts of all employees and the careful
management of resources. Shippers are currently navigating a more
challenging economic environment while seeking to return
consistency to their supply chains. The equipment and network
resources offered by ABF Freight, as part of a comprehensive set of
ArcBest logistics solutions, are valued by customers which
positions ArcBest for growth.
Asset-Light‡
Third
Quarter 2022 Versus Third Quarter 2021 (including the results of
MoLo)
- Revenue of $604.5 million
compared to $371.7 million, a per-day
increase of 62.6 percent.
- Operating income of $16.3 million
compared to $11.5 million. On a
non‑GAAP basis, operating income of $19.9
million compared to $12.4
million.
- Adjusted earnings before interest, taxes, depreciation and
amortization ("Adjusted EBITDA") of $21.8
million compared to $14.2
million, as detailed in the attached non-GAAP reconciliation
tables.
Compared to the previous year, revenue growth in the ArcBest
Asset-Light segment moderated throughout the third quarter as
a result of a softer economic environment, which led to lower
average revenue per shipment, and changes in business mix. The
positive impact of additional truckload business from MoLo was the
main contributor to increased third quarter revenue and shipment
totals versus last year. Further progress was made on the MoLo
integration and all of ArcBest's Asset-Light truckload shipments
are now being managed in one operating platform. In addition to
truckload, third quarter revenue growth was positively impacted by
managed transportation and dedicated services. In the
third quarter, overall rates charged for customer shipments
decreased sequentially at a more rapid pace than the cost
reductions associated with securing carrier partner equipment
capacity in the marketplace. The resulting sequential
margin compression contributed to reduced profitability in the
Asset-Light business compared to earlier quarters this
year.
At FleetNet, despite revenue growth resulting from increases in
both total events and revenue per event, higher costs contributed
to a decrease in profitability versus the prior year
period.
NOTE
‡ - The ArcBest and FleetNet reportable
segments, combined, represent Asset-Light operations.
Conference Call
ArcBest will host a conference call with company executives to
discuss the 2022 third quarter results. The call will be today,
Tuesday, November 1, at 9:30 a.m. EDT (8:30 a.m.
CDT). Interested parties are invited to listen by calling
(800) 916-9049 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 November 1, 2022, 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
December 15, 2022. To listen to the
playback, dial (800) 633‑8284 or (402) 977‑9140 (for
international callers). The conference call ID for the playback is
22020814. The conference call and playback can also be accessed,
through December 15, 2022, 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 more than 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 their 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 September 30,
2022 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
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 acts of war or
terrorism or military conflicts; a failure of our information
systems, including disruptions or failures of services essential to
our operations or upon which our information technology platforms
rely, data breach, and/or cybersecurity incidents; interruption or
failure of third-party software or information technology systems
or licenses; untimely or ineffective development and implementation
of, or failure to realize potential benefits associated with, new
or enhanced technology or processes, including the pilot test
program at ABF Freight; the loss or reduction of business from
large customers; the ability to manage our cost structure, and the
timing and performance of growth initiatives; 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; market fluctuations and
interruptions affecting the price of our stock or the price or
timing of our share repurchase programs; maintaining our corporate
reputation and intellectual property rights; nationwide or global
disruption in the supply chain increasing 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 develop employees;
unfavorable terms of, or the inability to reach agreement on,
future collective bargaining agreements or a workforce stoppage by
our employees covered under ABF Freight's collective bargaining
agreement; union employee wages and benefits, including changes in
required contributions to multiemployer plans; availability and
cost of reliable third-party services; our ability to secure
independent owner operators and/or operational or regulatory issues
related to our use of their services; litigation or claims asserted
against us; governmental regulations; environmental laws and
regulations, including emissions-control regulations; default on
covenants of financing arrangements and the availability and terms
of future financing arrangements; self-insurance claims and
insurance premium costs; potential impairment of goodwill and
intangible assets; general economic conditions and related shifts
in market demand that impact the performance and needs of
industries we serve and/or limit our customers' access to adequate
financial resources; increasing costs due to inflation; seasonal
fluctuations and adverse weather conditions; and other financial,
operational, and legal risks and uncertainties detailed from time
to time in ArcBest Corporation's public filings with the Securities
and Exchange Commission (the "SEC").
For additional information regarding known material factors that
could cause our actual results to differ from our projected
results, please see our filings with the SEC, including our Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current
Reports on Form 8-K.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date hereof.
We undertake no obligation to publicly update or revise any
forward-looking statements after the date they are made, whether as
a result of new information, future events, or otherwise.
Financial Data and Operating
Statistics
The following tables show financial data and operating
statistics on ArcBest® and its reportable
segments.
ARCBEST CORPORATION
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30
|
|
September 30
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
(Unaudited)
|
|
|
|
($ thousands, except share and
per share data)
|
|
REVENUES
|
|
$
|
1,351,831
|
|
$
|
1,016,657
|
|
$
|
4,079,834
|
|
$
|
2,794,843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
1,236,070
|
|
|
929,096
|
|
|
3,731,799
|
|
|
2,600,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
115,761
|
|
|
87,561
|
|
|
348,035
|
|
|
194,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(COSTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income
|
|
|
1,147
|
|
|
323
|
|
|
1,614
|
|
|
1,037
|
|
Interest and other
related financing costs
|
|
|
(1,749)
|
|
|
(2,072)
|
|
|
(5,551)
|
|
|
(6,774)
|
|
Other, net
|
|
|
(189)
|
|
|
338
|
|
|
(3,822)
|
|
|
2,641
|
|
|
|
|
(791)
|
|
|
(1,411)
|
|
|
(7,759)
|
|
|
(3,096)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
|
114,970
|
|
|
86,150
|
|
|
340,276
|
|
|
190,955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
PROVISION
|
|
|
26,128
|
|
|
22,459
|
|
|
79,404
|
|
|
42,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$
|
88,842
|
|
$
|
63,691
|
|
$
|
260,872
|
|
$
|
148,033
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
3.61
|
|
$
|
2.48
|
|
$
|
10.59
|
|
$
|
5.79
|
|
Diluted
|
|
$
|
3.50
|
|
$
|
2.38
|
|
$
|
10.18
|
|
$
|
5.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE COMMON
SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
24,605,228
|
|
|
25,632,805
|
|
|
24,640,706
|
|
|
25,559,642
|
|
Diluted
|
|
|
25,372,755
|
|
|
26,770,146
|
|
|
25,626,225
|
|
|
26,872,381
|
|
ARCBEST CORPORATION
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
|
September 30
|
|
December 31
|
|
|
|
2022
|
|
2021
|
|
|
|
(Unaudited)
|
|
Note
|
|
|
|
($ thousands, except share data)
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
155,531
|
|
$
|
76,620
|
|
Short-term
investments
|
|
|
145,758
|
|
|
48,339
|
|
Accounts receivable,
less allowances (2022 - $15,441; 2021 - $13,226)
|
|
|
627,092
|
|
|
582,344
|
|
Other accounts
receivable, less allowances (2022 - $709; 2021 - $690)
|
|
|
11,472
|
|
|
13,094
|
|
Prepaid
expenses
|
|
|
32,280
|
|
|
40,104
|
|
Prepaid and refundable
income taxes
|
|
|
16,010
|
|
|
9,654
|
|
Other
|
|
|
9,885
|
|
|
5,898
|
|
TOTAL CURRENT
ASSETS
|
|
|
998,028
|
|
|
776,053
|
|
|
|
|
|
|
|
|
|
PROPERTY, PLANT AND
EQUIPMENT
|
|
|
|
|
|
|
|
Land and
structures
|
|
|
361,705
|
|
|
350,694
|
|
Revenue
equipment
|
|
|
1,014,369
|
|
|
980,283
|
|
Service, office, and
other equipment
|
|
|
291,595
|
|
|
251,085
|
|
Software
|
|
|
178,145
|
|
|
175,989
|
|
Leasehold
improvements
|
|
|
20,865
|
|
|
16,931
|
|
|
|
|
1,866,679
|
|
|
1,774,982
|
|
Less allowances for
depreciation and amortization
|
|
|
1,120,962
|
|
|
1,079,061
|
|
|
|
|
745,717
|
|
|
695,921
|
|
|
|
|
|
|
|
|
|
GOODWILL
|
|
|
307,252
|
|
|
300,337
|
|
INTANGIBLE ASSETS,
NET
|
|
|
116,922
|
|
|
126,580
|
|
OPERATING
RIGHT-OF-USE ASSETS
|
|
|
164,654
|
|
|
106,686
|
|
DEFERRED INCOME
TAXES
|
|
|
5,563
|
|
|
5,470
|
|
OTHER LONG-TERM
ASSETS
|
|
|
101,978
|
|
|
101,629
|
|
TOTAL
ASSETS
|
|
$
|
2,440,114
|
|
$
|
2,112,676
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
329,887
|
|
$
|
311,401
|
|
Income taxes
payable
|
|
|
7,668
|
|
|
12,087
|
|
Accrued
expenses
|
|
|
331,610
|
|
|
305,851
|
|
Current portion of
long-term debt
|
|
|
63,521
|
|
|
50,615
|
|
Current portion of
operating lease liabilities
|
|
|
24,686
|
|
|
22,740
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
757,372
|
|
|
702,694
|
|
|
|
|
|
|
|
|
|
LONG-TERM DEBT, less
current portion
|
|
|
189,798
|
|
|
174,917
|
|
OPERATING LEASE
LIABILITIES, less current portion
|
|
|
146,134
|
|
|
88,835
|
|
POSTRETIREMENT
LIABILITIES, less current portion
|
|
|
16,681
|
|
|
16,733
|
|
OTHER LONG-TERM
LIABILITIES
|
|
|
134,701
|
|
|
135,537
|
|
DEFERRED INCOME
TAXES
|
|
|
69,136
|
|
|
64,893
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
Common stock, $0.01 par
value, authorized 70,000,000 shares;
issued 2022:
29,747,867 shares; 2021: 29,359,597 shares
|
|
|
297
|
|
|
294
|
|
Additional paid-in
capital
|
|
|
337,113
|
|
|
318,033
|
|
Retained
earnings
|
|
|
1,054,294
|
|
|
801,314
|
|
Treasury
stock, at cost, 2022: 5,340,836 shares; 2021: 4,492,514
shares
|
|
|
(269,390)
|
|
|
(194,273)
|
|
Accumulated other
comprehensive income
|
|
|
3,978
|
|
|
3,699
|
|
TOTAL STOCKHOLDERS'
EQUITY
|
|
|
1,126,292
|
|
|
929,067
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
2,440,114
|
|
$
|
2,112,676
|
|
|
Note: The balance sheet
at December 31, 2021 has been derived from the audited financial
statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles
for complete financial statements.
|
ARCBEST CORPORATION
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
September 30
|
|
|
|
2022
|
|
2021
|
|
|
|
Unaudited
|
|
|
|
($ thousands)
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
Net income
|
|
$
|
260,872
|
|
$
|
148,033
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
95,169
|
|
|
88,113
|
|
Amortization of
intangibles
|
|
|
9,691
|
|
|
2,882
|
|
Share-based
compensation expense
|
|
|
9,816
|
|
|
8,567
|
|
Provision for losses
on accounts receivable
|
|
|
5,065
|
|
|
(57)
|
|
Change in deferred
income taxes
|
|
|
3,745
|
|
|
(8,593)
|
|
Gain on sale of
property and equipment
|
|
|
(9,759)
|
|
|
(8,389)
|
|
Gain on sale of
subsidiary
|
|
|
(402)
|
|
|
(6,923)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Receivables
|
|
|
(54,889)
|
|
|
(103,886)
|
|
Prepaid
expenses
|
|
|
7,550
|
|
|
7,655
|
|
Other
assets
|
|
|
287
|
|
|
539
|
|
Income
taxes
|
|
|
(11,068)
|
|
|
8,174
|
|
Operating right-of-use
assets and lease liabilities, net
|
|
|
1,579
|
|
|
650
|
|
Accounts payable,
accrued expenses, and other liabilities
|
|
|
32,793
|
|
|
101,577
|
|
NET CASH PROVIDED BY
OPERATING ACTIVITIES
|
|
|
350,449
|
|
|
238,342
|
|
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment, net of financings
|
|
|
(76,068)
|
|
|
(43,506)
|
|
Proceeds from sale of
property and equipment
|
|
|
13,938
|
|
|
11,509
|
|
Proceeds from sale of
subsidiary
|
|
|
475
|
|
|
9,013
|
|
Purchases of short-term
investments
|
|
|
(145,254)
|
|
|
(56,011)
|
|
Proceeds from sale of
short-term investments
|
|
|
48,161
|
|
|
61,174
|
|
Capitalization of
internally developed software
|
|
|
(13,922)
|
|
|
(14,308)
|
|
Business acquisition,
net of cash acquired(1)
|
|
|
2,279
|
|
|
—
|
|
NET CASH USED IN
INVESTING ACTIVITIES
|
|
|
(170,391)
|
|
|
(32,129)
|
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
Borrowings under credit
facilities
|
|
|
58,000
|
|
|
—
|
|
Proceeds from notes
payable
|
|
|
12,113
|
|
|
—
|
|
Payments on long-term
debt
|
|
|
(99,567)
|
|
|
(76,513)
|
|
Net change in book
overdrafts
|
|
|
2,102
|
|
|
(305)
|
|
Deferred financing
costs
|
|
|
(53)
|
|
|
(295)
|
|
Payment of common stock
dividends
|
|
|
(7,892)
|
|
|
(6,145)
|
|
Purchases of treasury
stock
|
|
|
(50,117)
|
|
|
(8,100)
|
|
Payments for tax
withheld on share-based compensation
|
|
|
(15,733)
|
|
|
(10,602)
|
|
NET CASH USED IN
FINANCING ACTIVITIES
|
|
|
(101,147)
|
|
|
(101,960)
|
|
|
|
|
|
|
|
|
|
NET INCREASE IN CASH
AND CASH EQUIVALENTS
|
|
|
78,911
|
|
|
104,253
|
|
Cash and cash
equivalents at beginning of period
|
|
|
76,620
|
|
|
303,954
|
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
|
$
|
155,531
|
|
$
|
408,207
|
|
|
|
|
|
|
|
|
|
NONCASH
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Equipment
financed
|
|
$
|
57,241
|
|
$
|
36,731
|
|
Accruals for equipment
received
|
|
$
|
5,587
|
|
$
|
3,158
|
|
Lease liabilities
arising from obtaining right-of-use assets
|
|
$
|
78,324
|
|
$
|
7,280
|
|
__________________________
|
1)
|
Represents cash
received from escrow for post-closing adjustments related to the
acquisition of MoLo.
|
ARCBEST CORPORATION
|
FINANCIAL STATEMENT
OPERATING SEGMENT DATA AND OPERATING RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Nine Months Ended
|
|
|
|
September 30
|
|
|
September 30
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
|
Unaudited
|
|
|
|
($ thousands,
except percentages)
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-Based
|
|
$
|
791,531
|
|
|
|
|
$
|
681,164
|
|
|
|
|
$
|
2,299,464
|
|
|
|
|
$
|
1,890,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ArcBest(1)
|
|
|
515,235
|
|
|
|
|
|
305,207
|
|
|
|
|
|
1,660,174
|
|
|
|
|
|
828,291
|
|
|
|
FleetNet
|
|
|
89,276
|
|
|
|
|
|
66,514
|
|
|
|
|
|
249,786
|
|
|
|
|
|
185,224
|
|
|
|
Total
Asset-Light
|
|
|
604,511
|
|
|
|
|
|
371,721
|
|
|
|
|
|
1,909,960
|
|
|
|
|
|
1,013,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other and
eliminations
|
|
|
(44,211)
|
|
|
|
|
|
(36,228)
|
|
|
|
|
|
(129,590)
|
|
|
|
|
|
(108,960)
|
|
|
|
Total consolidated
revenues
|
|
$
|
1,351,831
|
|
|
|
|
$
|
1,016,657
|
|
|
|
|
$
|
4,079,834
|
|
|
|
|
$
|
2,794,843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-Based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages, and
benefits
|
|
$
|
332,359
|
|
42.0
|
%
|
|
$
|
305,839
|
|
44.9
|
%
|
|
$
|
973,924
|
|
42.4
|
%
|
|
$
|
893,903
|
|
47.3
|
%
|
Fuel, supplies, and
expenses
|
|
|
97,279
|
|
12.3
|
|
|
|
66,947
|
|
9.8
|
|
|
|
281,406
|
|
12.2
|
|
|
|
192,477
|
|
10.2
|
|
Operating taxes and
licenses
|
|
|
13,089
|
|
1.6
|
|
|
|
12,426
|
|
1.8
|
|
|
|
38,405
|
|
1.7
|
|
|
|
36,977
|
|
2.0
|
|
Insurance
|
|
|
13,180
|
|
1.7
|
|
|
|
10,175
|
|
1.5
|
|
|
|
35,808
|
|
1.5
|
|
|
|
28,568
|
|
1.5
|
|
Communications and
utilities
|
|
|
4,794
|
|
0.6
|
|
|
|
4,559
|
|
0.7
|
|
|
|
14,129
|
|
0.6
|
|
|
|
14,192
|
|
0.7
|
|
Depreciation and
amortization
|
|
|
24,117
|
|
3.0
|
|
|
|
23,233
|
|
3.4
|
|
|
|
72,885
|
|
3.2
|
|
|
|
70,025
|
|
3.7
|
|
Rents and purchased
transportation
|
|
|
123,714
|
|
15.6
|
|
|
|
95,855
|
|
14.1
|
|
|
|
348,249
|
|
15.1
|
|
|
|
266,525
|
|
14.1
|
|
Shared
services
|
|
|
72,286
|
|
9.1
|
|
|
|
71,017
|
|
10.4
|
|
|
|
215,020
|
|
9.4
|
|
|
|
196,255
|
|
10.4
|
|
Gain on sale of
property and equipment(2)
|
|
|
(5,910)
|
|
(0.7)
|
|
|
|
—
|
|
—
|
|
|
|
(9,975)
|
|
(0.4)
|
|
|
|
(8,624)
|
|
(0.5)
|
|
Innovative technology
costs(3)
|
|
|
6,068
|
|
0.8
|
|
|
|
6,903
|
|
1.0
|
|
|
|
20,982
|
|
0.9
|
|
|
|
21,303
|
|
1.1
|
|
Other
|
|
|
1,243
|
|
0.2
|
|
|
|
592
|
|
0.1
|
|
|
|
2,629
|
|
0.1
|
|
|
|
1,103
|
|
0.1
|
|
Total
Asset-Based
|
|
|
682,219
|
|
86.2
|
%
|
|
|
597,546
|
|
87.7
|
%
|
|
|
1,993,462
|
|
86.7
|
%
|
|
|
1,712,704
|
|
90.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ArcBest(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
transportation
|
|
$
|
425,567
|
|
82.6
|
%
|
|
$
|
256,900
|
|
84.2
|
%
|
|
$
|
1,382,107
|
|
83.3
|
%
|
|
$
|
694,498
|
|
83.8
|
%
|
Supplies and
expenses
|
|
|
4,378
|
|
0.9
|
|
|
|
2,741
|
|
0.9
|
|
|
|
11,907
|
|
0.7
|
|
|
|
7,785
|
|
0.9
|
|
Depreciation and
amortization(4)
|
|
|
5,072
|
|
1.0
|
|
|
|
2,352
|
|
0.8
|
|
|
|
15,720
|
|
0.9
|
|
|
|
7,104
|
|
0.9
|
|
Shared
services
|
|
|
56,371
|
|
10.9
|
|
|
|
31,048
|
|
10.2
|
|
|
|
164,554
|
|
9.9
|
|
|
|
86,198
|
|
10.4
|
|
Gain on sale of
subsidiary(5)
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
(402)
|
|
—
|
|
|
|
(6,923)
|
|
(0.8)
|
|
Other
|
|
|
8,463
|
|
1.6
|
|
|
|
1,984
|
|
0.6
|
|
|
|
22,309
|
|
1.3
|
|
|
|
6,055
|
|
0.7
|
|
|
|
|
499,851
|
|
97.0
|
%
|
|
|
295,025
|
|
96.7
|
%
|
|
|
1,596,195
|
|
96.1
|
%
|
|
|
794,717
|
|
95.9
|
%
|
FleetNet
|
|
|
88,395
|
|
99.0
|
%
|
|
|
65,245
|
|
98.1
|
%
|
|
|
245,596
|
|
98.3
|
%
|
|
|
181,794
|
|
98.1
|
%
|
Total
Asset-Light
|
|
|
588,246
|
|
|
|
|
|
360,270
|
|
|
|
|
|
1,841,791
|
|
|
|
|
|
976,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other and
eliminations(6)
|
|
|
(34,395)
|
|
|
|
|
|
(28,720)
|
|
|
|
|
|
(103,454)
|
|
|
|
|
|
(88,423)
|
|
|
|
Total consolidated
operating expenses
|
|
$
|
1,236,070
|
|
91.4
|
%
|
|
$
|
929,096
|
|
91.4
|
%
|
|
$
|
3,731,799
|
|
91.5
|
%
|
|
$
|
2,600,792
|
|
93.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-Based
|
|
$
|
109,312
|
|
|
|
|
$
|
83,618
|
|
|
|
|
$
|
306,002
|
|
|
|
|
$
|
177,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ArcBest(1)
|
|
|
15,384
|
|
|
|
|
|
10,182
|
|
|
|
|
|
63,979
|
|
|
|
|
|
33,574
|
|
|
|
FleetNet
|
|
|
881
|
|
|
|
|
|
1,269
|
|
|
|
|
|
4,190
|
|
|
|
|
|
3,430
|
|
|
|
Total
Asset-Light
|
|
|
16,265
|
|
|
|
|
|
11,451
|
|
|
|
|
|
68,169
|
|
|
|
|
|
37,004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other and
eliminations(6)
|
|
|
(9,816)
|
|
|
|
|
|
(7,508)
|
|
|
|
|
|
(26,136)
|
|
|
|
|
|
(20,537)
|
|
|
|
Total consolidated
operating income
|
|
$
|
115,761
|
|
|
|
|
$
|
87,561
|
|
|
|
|
$
|
348,035
|
|
|
|
|
$
|
194,051
|
|
|
|
__________________________
|
1)
|
The 2022 periods
include the operations of MoLo, which was acquired on November 1,
2021.
|
2)
|
The three and nine
months ended September 30, 2022 include a $4.3 million noncash gain
on a like-kind property exchange of a service center. The nine
months ended September 30, 2021 include an $8.6 million gain
on the sale of an unutilized service center property.
|
3)
|
Represents costs
associated with the freight handling pilot test program at ABF
Freight.
|
4)
|
Depreciation and
amortization includes amortization of intangibles associated with
acquired businesses.
|
5)
|
Gain relates to the
sale of the labor services portion of the ArcBest segment's moving
business in May 2021, including the contingent amount recognized in
second quarter 2022 when the funds 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. 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
|
|
Nine Months Ended
|
|
|
September 30
|
|
|
September 30
|
|
|
|
2022
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
ArcBest Corporation
- Consolidated
|
|
(Unaudited)
|
|
|
|
($ thousands,
except per share data)
|
|
Operating
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
115,761
|
|
$
|
87,561
|
|
$
|
348,035
|
|
$
|
194,051
|
|
Innovative technology
costs, pre-tax(1)
|
|
|
10,056
|
|
|
8,250
|
|
|
30,083
|
|
|
24,392
|
|
Purchase accounting
amortization, pre-tax(2)
|
|
|
3,213
|
|
|
938
|
|
|
9,640
|
|
|
2,812
|
|
Change in fair value of
contingent consideration, pre-tax(3)
|
|
|
—
|
|
|
—
|
|
|
810
|
|
|
—
|
|
Gain on sale of
subsidiary, pre-tax(4)
|
|
|
—
|
|
|
—
|
|
|
(402)
|
|
|
(6,923)
|
|
Nonunion vacation
policy enhancement, pre-tax(5)
|
|
|
2,080
|
|
|
—
|
|
|
2,080
|
|
|
—
|
|
Transaction costs,
pre-tax(6)
|
|
|
—
|
|
|
1,607
|
|
|
—
|
|
|
1,607
|
|
Non-GAAP
amounts
|
|
$
|
131,110
|
|
$
|
98,356
|
|
$
|
390,246
|
|
$
|
215,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
88,842
|
|
$
|
63,691
|
|
$
|
260,872
|
|
$
|
148,033
|
|
Innovative technology
costs, after-tax (includes related financing
costs)(1)
|
|
|
7,608
|
|
|
6,243
|
|
|
22,686
|
|
|
18,484
|
|
Purchase accounting
amortization, after-tax(2)
|
|
|
2,396
|
|
|
702
|
|
|
7,189
|
|
|
2,106
|
|
Change in fair value of
contingent consideration, after-tax(3)
|
|
|
—
|
|
|
—
|
|
|
604
|
|
|
—
|
|
Gain on sale of
subsidiary, after-tax(4)
|
|
|
—
|
|
|
—
|
|
|
(317)
|
|
|
(5,437)
|
|
Nonunion vacation
policy enhancement, after-tax(5)
|
|
|
1,546
|
|
|
—
|
|
|
1,546
|
|
|
—
|
|
Transaction costs,
after-tax(6)
|
|
|
—
|
|
|
1,187
|
|
|
—
|
|
|
1,187
|
|
Life insurance proceeds
and changes in cash surrender value
|
|
|
176
|
|
|
(394)
|
|
|
3,679
|
|
|
(2,908)
|
|
Tax benefit from vested
RSUs(7)
|
|
|
(2,381)
|
|
|
(480)
|
|
|
(8,310)
|
|
|
(7,411)
|
|
Tax
credits(8)
|
|
|
(1,831)
|
|
|
—
|
|
|
(1,190)
|
|
|
—
|
|
Non-GAAP
amounts
|
|
$
|
96,356
|
|
$
|
70,949
|
|
$
|
286,759
|
|
$
|
154,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
3.50
|
|
$
|
2.38
|
|
$
|
10.18
|
|
$
|
5.51
|
|
Innovative technology
costs, after-tax (includes related financing
costs)(1)
|
|
|
0.30
|
|
|
0.23
|
|
|
0.89
|
|
|
0.69
|
|
Purchase accounting
amortization, after-tax(2)
|
|
|
0.09
|
|
|
0.03
|
|
|
0.28
|
|
|
0.08
|
|
Change in fair value of
contingent consideration, after-tax(3)
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
Gain on sale of
subsidiary, after-tax(4)
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
|
(0.20)
|
|
Nonunion vacation
policy enhancement, after-tax(5)
|
|
|
0.06
|
|
|
—
|
|
|
0.06
|
|
|
—
|
|
Transaction costs,
after-tax(6)
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
|
0.04
|
|
Life insurance proceeds
and changes in cash surrender value
|
|
|
0.01
|
|
|
(0.01)
|
|
|
0.14
|
|
|
(0.11)
|
|
Tax benefit from vested
RSUs(7)
|
|
|
(0.09)
|
|
|
(0.02)
|
|
|
(0.32)
|
|
|
(0.28)
|
|
Tax
credits(8)
|
|
|
(0.07)
|
|
|
—
|
|
|
(0.05)
|
|
|
—
|
|
Non-GAAP
amounts(9)
|
|
$
|
3.80
|
|
$
|
2.65
|
|
$
|
11.19
|
|
$
|
5.73
|
|
__________________________
|
Note: See "Notes to
Non-GAAP Financial Tables" for the footnotes to this ArcBest
Corporation – Consolidated non-GAAP table.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30
|
|
September 30
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Segment Operating
Income Reconciliations
|
|
(Unaudited)
|
|
|
|
($ thousands,
except percentages)
|
|
Asset-Based
Segment
|
|
|
|
|
|
Operating Income ($)
and Operating Ratio (% of revenues)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
109,312
|
|
86.2
|
%
|
|
$
|
83,618
|
|
87.7
|
%
|
|
$
|
306,002
|
|
86.7
|
%
|
|
$
|
177,584
|
|
90.6
|
%
|
|
Innovative technology
costs, pre-tax(10)
|
|
|
6,068
|
|
(0.8)
|
|
|
|
6,903
|
|
(1.0)
|
|
|
|
20,982
|
|
(0.9)
|
|
|
|
21,303
|
|
(1.1)
|
|
|
Nonunion vacation
policy enhancement, pre-tax(5)
|
|
|
1,245
|
|
(0.2)
|
|
|
|
—
|
|
—
|
|
|
|
1,245
|
|
(0.1)
|
|
|
|
—
|
|
—
|
|
|
Non-GAAP
amounts(9)
|
|
$
|
116,625
|
|
85.3
|
%
|
|
$
|
90,521
|
|
86.7
|
%
|
|
$
|
328,229
|
|
85.7
|
%
|
|
$
|
198,887
|
|
89.5
|
%
|
|
|
|
|
|
|
|
Asset-Light
|
|
|
|
|
|
ArcBest
Segment
|
|
|
|
|
|
Operating Income
($) and Operating Ratio (% of revenues)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
15,384
|
|
97.0
|
%
|
|
$
|
10,182
|
|
96.7
|
%
|
|
$
|
63,979
|
|
96.1
|
%
|
|
$
|
33,574
|
|
95.9
|
%
|
|
Purchase accounting
amortization, pre-tax(2)
|
|
|
3,213
|
|
(0.6)
|
|
|
|
938
|
|
(0.3)
|
|
|
|
9,640
|
|
(0.6)
|
|
|
|
2,812
|
|
(0.3)
|
|
|
Change in fair value
of contingent consideration, pre-tax(3)
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
810
|
|
—
|
|
|
|
—
|
|
—
|
|
|
Gain on sale of
subsidiary, pre-tax(4)
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
(402)
|
|
—
|
|
|
|
(6,923)
|
|
0.8
|
|
|
Nonunion vacation
policy enhancement, pre-tax(5)
|
|
|
318
|
|
(0.1)
|
|
|
|
—
|
|
—
|
|
|
|
318
|
|
—
|
|
|
|
—
|
|
—
|
|
|
Non-GAAP
amounts(9)
|
|
$
|
18,915
|
|
96.3
|
%
|
|
$
|
11,120
|
|
96.4
|
%
|
|
$
|
74,345
|
|
95.5
|
%
|
|
$
|
29,463
|
|
96.4
|
%
|
|
|
|
|
|
|
|
FleetNet
Segment
|
|
|
|
|
|
Operating Income
($) and Operating Ratio (% of revenues)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
881
|
|
99.0
|
%
|
|
$
|
1,269
|
|
98.1
|
%
|
|
$
|
4,190
|
|
98.3
|
%
|
|
$
|
3,430
|
|
98.1
|
%
|
|
Nonunion vacation
policy enhancement, pre-tax(5)
|
|
|
90
|
|
(0.1)
|
|
|
|
—
|
|
—
|
|
|
|
90
|
|
—
|
|
|
|
—
|
|
—
|
|
|
Non-GAAP
amounts(9)
|
|
$
|
971
|
|
98.9
|
%
|
|
$
|
1,269
|
|
98.1
|
%
|
|
$
|
4,280
|
|
98.3
|
%
|
|
$
|
3,430
|
|
98.1
|
%
|
|
|
|
|
|
|
|
Total
Asset-Light
|
|
|
|
|
|
Operating Income ($)
and Operating Ratio (% of revenues)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
16,265
|
|
97.3
|
%
|
|
$
|
11,451
|
|
96.9
|
%
|
|
$
|
68,169
|
|
96.4
|
%
|
|
$
|
37,004
|
|
96.3
|
%
|
|
Purchase accounting
amortization, pre-tax(2)
|
|
|
3,213
|
|
(0.5)
|
|
|
|
938
|
|
(0.3)
|
|
|
|
9,640
|
|
(0.5)
|
|
|
|
2,812
|
|
(0.3)
|
|
|
Change in fair value of
contingent consideration, pre-tax(3)
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
810
|
|
—
|
|
|
|
—
|
|
—
|
|
|
Gain on sale of
subsidiary, pre-tax(4)
|
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
(402)
|
|
—
|
|
|
|
(6,923)
|
|
0.7
|
|
|
Nonunion vacation
policy enhancement, pre-tax(5)
|
|
|
408
|
|
(0.1)
|
|
|
|
—
|
|
—
|
|
|
|
408
|
|
—
|
|
|
|
—
|
|
—
|
|
|
Non-GAAP
amounts(9)
|
|
$
|
19,886
|
|
96.7
|
%
|
|
$
|
12,389
|
|
96.7
|
%
|
|
$
|
78,625
|
|
95.9
|
%
|
|
$
|
32,893
|
|
96.8
|
%
|
|
|
|
|
|
|
|
Other and
Eliminations
|
|
|
|
|
|
Operating Loss
($)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
(9,816)
|
|
|
|
|
$
|
(7,508)
|
|
|
|
|
$
|
(26,136)
|
|
|
|
|
$
|
(20,537)
|
|
|
|
|
Innovative technology
costs, pre-tax(1)
|
|
|
3,988
|
|
|
|
|
|
1,347
|
|
|
|
|
|
9,101
|
|
|
|
|
|
3,089
|
|
|
|
|
Nonunion vacation
policy enhancement, pre-tax(5)
|
|
|
427
|
|
|
|
|
|
—
|
|
|
|
|
|
427
|
|
|
|
|
|
—
|
|
|
|
|
Transaction costs,
pre-tax(6)
|
|
|
—
|
|
|
|
|
|
1,607
|
|
|
|
|
|
—
|
|
|
|
|
|
1,607
|
|
|
|
|
Non-GAAP
amounts(9)
|
|
$
|
(5,401)
|
|
|
|
|
$
|
(4,554)
|
|
|
|
|
$
|
(16,608)
|
|
|
|
|
$
|
(15,841)
|
|
|
|
|
__________________________
|
Note: See "Notes to
Non-GAAP Financial Tables" for the footnotes to this Segment
Operating Income Reconciliations non-GAAP table.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate
Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ArcBest Corporation
- Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ thousands,
except percentages)
|
|
Three
Months Ended September 30, 2022
|
|
|
|
|
|
Other
|
|
Income
|
|
Income
|
|
|
|
|
|
|
|
|
Operating
|
|
Income
|
|
Before
Income
|
|
Tax
|
|
Net
|
|
|
|
|
Income
|
|
(Costs)
|
|
Taxes
|
|
Provision
|
|
Income
|
|
Tax
Rate(11)
|
Amounts on GAAP
basis
|
|
$
|
115,761
|
|
$
|
(791)
|
|
$
|
114,970
|
|
$
|
26,128
|
|
$
|
88,842
|
|
22.7
|
%
|
Innovative technology
costs(1)
|
|
|
10,056
|
|
|
189
|
|
|
10,245
|
|
|
2,637
|
|
|
7,608
|
|
25.7
|
|
Purchase accounting
amortization(2)
|
|
|
3,213
|
|
|
—
|
|
|
3,213
|
|
|
817
|
|
|
2,396
|
|
25.4
|
|
Nonunion vacation
policy enhancement(5)
|
|
|
2,080
|
|
|
—
|
|
|
2,080
|
|
|
534
|
|
|
1,546
|
|
25.7
|
|
Life insurance proceeds
and changes in cash surrender value
|
|
|
—
|
|
|
176
|
|
|
176
|
|
|
—
|
|
|
176
|
|
—
|
|
Tax benefit from vested
RSUs(7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,381
|
|
|
(2,381)
|
|
—
|
|
Tax
credits(8)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,831
|
|
|
(1,831)
|
|
—
|
|
Non-GAAP
amounts
|
|
$
|
131,110
|
|
$
|
(426)
|
|
$
|
130,684
|
|
$
|
34,328
|
|
$
|
96,356
|
|
26.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
2022
|
|
|
|
|
Other
|
|
Income
|
|
Income
|
|
|
|
|
|
|
|
|
Operating
|
|
Income
|
|
Before
Income
|
|
Tax
|
|
Net
|
|
|
|
|
Income
|
|
(Costs)
|
|
Taxes
|
|
Provision
|
|
Income
|
|
Tax
Rate(11)
|
Amounts on GAAP
basis
|
|
$
|
348,035
|
|
$
|
(7,759)
|
|
$
|
340,276
|
|
$
|
79,404
|
|
$
|
260,872
|
|
23.3
|
%
|
Innovative technology
costs(1)
|
|
|
30,083
|
|
|
466
|
|
|
30,549
|
|
|
7,863
|
|
|
22,686
|
|
25.7
|
|
Purchase accounting
amortization(2)
|
|
|
9,640
|
|
|
—
|
|
|
9,640
|
|
|
2,451
|
|
|
7,189
|
|
25.4
|
|
Change in fair value of
contingent consideration(3)
|
|
|
810
|
|
|
—
|
|
|
810
|
|
|
206
|
|
|
604
|
|
25.4
|
|
Gain on sale of
subsidiary(4)
|
|
|
(402)
|
|
|
—
|
|
|
(402)
|
|
|
(85)
|
|
|
(317)
|
|
(21.1)
|
|
Nonunion vacation
policy enhancement(5)
|
|
|
2,080
|
|
|
—
|
|
|
2,080
|
|
|
534
|
|
|
1,546
|
|
25.7
|
|
Life insurance proceeds
and changes in cash surrender value
|
|
|
—
|
|
|
3,679
|
|
|
3,679
|
|
|
—
|
|
|
3,679
|
|
—
|
|
Tax benefit from vested
RSUs(7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,310
|
|
|
(8,310)
|
|
—
|
|
Tax
credits(8)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,190
|
|
|
(1,190)
|
|
—
|
|
Non-GAAP
amounts
|
|
$
|
390,246
|
|
$
|
(3,614)
|
|
$
|
386,632
|
|
$
|
99,873
|
|
$
|
286,759
|
|
25.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended September 30, 2021
|
|
|
|
|
Other
|
|
Income
|
|
Income
|
|
|
|
|
|
|
|
Operating
|
|
Income
|
|
Before
Income
|
|
Tax
|
|
Net
|
|
|
|
|
Income
|
|
(Costs)
|
|
Taxes
|
|
Provision
|
|
Income
|
|
Tax
Rate(11)
|
Amounts on GAAP
basis
|
|
$
|
87,561
|
|
$
|
(1,411)
|
|
$
|
86,150
|
|
$
|
22,459
|
|
$
|
63,691
|
|
26.1
|
%
|
Innovative technology
costs(1)
|
|
|
8,250
|
|
|
157
|
|
|
8,407
|
|
|
2,164
|
|
|
6,243
|
|
25.7
|
|
Purchase accounting
amortization(2)
|
|
|
938
|
|
|
—
|
|
|
938
|
|
|
236
|
|
|
702
|
|
25.2
|
|
Transaction
costs(6)
|
|
|
1,607
|
|
|
—
|
|
|
1,607
|
|
|
420
|
|
|
1,187
|
|
26.1
|
|
Life insurance proceeds
and changes in cash surrender value
|
|
|
—
|
|
|
(394)
|
|
|
(394)
|
|
|
—
|
|
|
(394)
|
|
—
|
|
Tax benefit from vested
RSUs(7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
480
|
|
|
(480)
|
|
—
|
|
Non-GAAP
amounts
|
|
$
|
98,356
|
|
$
|
(1,648)
|
|
$
|
96,708
|
|
$
|
25,759
|
|
$
|
70,949
|
|
26.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
2021
|
|
|
|
|
Other
|
|
Income
|
|
Income
|
|
|
|
|
|
|
|
|
Operating
|
|
Income
|
|
Before
Income
|
|
Tax
|
|
Net
|
|
|
|
|
Income
|
|
(Costs)
|
|
Taxes
|
|
Provision
|
|
Income
|
|
Tax
Rate(11)
|
Amounts on GAAP
basis
|
|
$
|
194,051
|
|
$
|
(3,096)
|
|
$
|
190,955
|
|
$
|
42,922
|
|
$
|
148,033
|
|
22.5
|
%
|
Innovative technology
costs(1)
|
|
|
24,392
|
|
|
498
|
|
|
24,890
|
|
|
6,406
|
|
|
18,484
|
|
25.7
|
|
Purchase accounting
amortization(2)
|
|
|
2,812
|
|
|
—
|
|
|
2,812
|
|
|
706
|
|
|
2,106
|
|
25.1
|
|
Gain on sale of
subsidiary(4)
|
|
|
(6,923)
|
|
|
—
|
|
|
(6,923)
|
|
|
(1,486)
|
|
|
(5,437)
|
|
(21.5)
|
|
Transaction
costs(6)
|
|
|
1,607
|
|
|
—
|
|
|
1,607
|
|
|
420
|
|
|
1,187
|
|
26.1
|
|
Life insurance proceeds
and changes in cash surrender value
|
|
|
—
|
|
|
(2,908)
|
|
|
(2,908)
|
|
|
—
|
|
|
(2,908)
|
|
—
|
|
Tax benefit from vested
RSUs(7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,411
|
|
|
(7,411)
|
|
—
|
|
Non-GAAP
amounts
|
|
$
|
215,939
|
|
$
|
(5,506)
|
|
$
|
210,433
|
|
$
|
56,379
|
|
$
|
154,054
|
|
26.8
|
%
|
__________________________
|
Note: See "Notes to
Non-GAAP Financial Tables" for the footnotes to this Effective Tax
Rate Reconciliation non-GAAP table.
|
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 businesses and changes
in the fair value of contingent consideration, which are
significant expenses resulting from strategic decisions rather than
core daily operations. Additionally, Adjusted EBITDA is a primary
component of the financial covenants contained in our credit
agreement. The calculation of Consolidated Adjusted EBITDA as
presented below begins with net income, 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 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
|
|
Nine Months Ended
|
|
|
September 30
|
|
|
September 30
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
(Unaudited)
|
|
ArcBest Corporation
- Consolidated Adjusted EBITDA
|
|
($ thousands)
|
|
|
|
|
Net
Income
|
|
$
|
88,842
|
|
$
|
63,691
|
|
$
|
260,872
|
|
$
|
148,033
|
|
Interest and other
related financing costs
|
|
|
1,749
|
|
|
2,072
|
|
|
5,551
|
|
|
6,774
|
|
Income tax
provision
|
|
|
26,128
|
|
|
22,459
|
|
|
79,404
|
|
|
42,922
|
|
Depreciation and
amortization(12)
|
|
|
34,707
|
|
|
30,359
|
|
|
104,860
|
|
|
90,995
|
|
Amortization of
share-based compensation
|
|
|
3,175
|
|
|
2,889
|
|
|
9,816
|
|
|
8,567
|
|
Change in fair value of
contingent consideration(3)
|
|
|
—
|
|
|
—
|
|
|
810
|
|
|
—
|
|
Gain on sale of
subsidiary(4)
|
|
|
—
|
|
|
—
|
|
|
(402)
|
|
|
(6,923)
|
|
Transaction
costs(6)
|
|
|
—
|
|
|
1,607
|
|
|
—
|
|
|
1,607
|
|
Consolidated Adjusted
EBITDA
|
|
$
|
154,601
|
|
$
|
123,077
|
|
$
|
460,911
|
|
$
|
291,975
|
|
__________________________
|
Note: See "Notes to
Non-GAAP Financial Tables" for the footnotes to this ArcBest
Corporation – Consolidated Adjusted EBITDA non-GAAP
table.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30
|
|
September 30
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Asset-Light Adjusted
EBITDA
|
|
(Unaudited)
|
|
|
|
($ thousands)
|
|
ArcBest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
$
|
15,384
|
|
$
|
10,182
|
|
$
|
63,979
|
|
$
|
33,574
|
|
Depreciation and
amortization(12)
|
|
|
5,072
|
|
|
2,352
|
|
|
15,720
|
|
|
7,104
|
|
Change in fair value
of contingent consideration(3)
|
|
|
—
|
|
|
—
|
|
|
810
|
|
|
—
|
|
Gain on sale of
subsidiary(4)
|
|
|
—
|
|
|
—
|
|
|
(402)
|
|
|
(6,923)
|
|
Adjusted
EBITDA
|
|
$
|
20,456
|
|
$
|
12,534
|
|
$
|
80,107
|
|
$
|
33,755
|
|
|
|
|
|
|
FleetNet
|
|
|
|
|
Operating
Income
|
|
$
|
881
|
|
$
|
1,269
|
|
$
|
4,190
|
|
$
|
3,430
|
|
Depreciation and
amortization(12)
|
|
|
477
|
|
|
413
|
|
|
1,350
|
|
|
1,241
|
|
Adjusted
EBITDA
|
|
$
|
1,358
|
|
$
|
1,682
|
|
$
|
5,540
|
|
$
|
4,671
|
|
|
|
|
|
|
Total
Asset-Light
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
$
|
16,265
|
|
$
|
11,451
|
|
$
|
68,169
|
|
$
|
37,004
|
|
Depreciation and
amortization(12)
|
|
|
5,549
|
|
|
2,765
|
|
|
17,070
|
|
|
8,345
|
|
Change in fair value
of contingent consideration(3)
|
|
|
—
|
|
|
—
|
|
|
810
|
|
|
—
|
|
Gain on sale of
subsidiary(4)
|
|
|
—
|
|
|
—
|
|
|
(402)
|
|
|
(6,923)
|
|
Adjusted
EBITDA
|
|
$
|
21,814
|
|
$
|
14,216
|
|
$
|
85,647
|
|
$
|
38,426
|
|
__________________________
|
Note: See "Notes to
Non-GAAP Financial Tables" for the footnotes to this Asset-Light
Adjusted EBITDA non-GAAP table.
|
Notes to Non-GAAP Financial Tables
The following footnotes apply to the non-GAAP financial tables
presented in this press release.
1)
|
Represents costs
associated with the freight handling pilot test program at ABF
Freight and initiatives to optimize our performance through
technological innovation, including costs related to our investment
in human-centered remote operation software.
|
2)
|
Represents the
amortization of acquired intangible assets related to the
November 1, 2021 acquisition of MoLo and previously
acquired businesses in the ArcBest segment.
|
3)
|
Represents change in
fair value of the contingent 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.
|
4)
|
Gain relates to the
sale of the labor services portion of the ArcBest segment's moving
business in May 2021, including the contingent amount recognized in
second quarter 2022 when the funds were released from
escrow.
|
5)
|
Represents a one-time,
noncash charge for enhancements to our nonunion vacation policy
which were effective third quarter 2022.
|
6)
|
Represents costs
associated with the acquisition of MoLo.
|
7)
|
Represents recognition
of the tax impact for the vesting of share-based
compensation.
|
8)
|
Represents the amounts
recorded in third quarter 2022 related to prior periods due to the
August 2022 retroactive reinstatement of the alternative fuel tax
credit. The amount for the nine months ended September 30,
2022 relates to the tax credit for the year ended December 31,
2021. The amount for the three months ended September 30, 2022
relates to the tax credit for 2021 and the six months ended June
30, 2022.
|
9)
|
Non-GAAP amounts are
calculated in total and may not foot due to rounding.
|
10)
|
Represents costs
associated with the freight handling pilot test program at ABF
Freight.
|
11)
|
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.
|
12)
|
Includes amortization
of intangibles associated with acquired businesses.
|
ARCBEST CORPORATION
|
OPERATING
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30
|
|
September 30
|
|
|
|
2022
|
|
2021
|
|
% Change
|
|
2022
|
|
2021
|
|
% Change
|
|
|
|
(Unaudited)
|
|
Asset-Based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Workdays
|
|
|
64.0
|
|
|
64.0
|
|
|
|
|
191.0
|
|
|
190.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Billed
Revenue(1) / CWT
|
|
$
|
46.42
|
|
$
|
41.79
|
|
11.1 %
|
|
$
|
45.32
|
|
$
|
38.95
|
|
16.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Billed
Revenue(1) / Shipment
|
|
$
|
611.70
|
|
$
|
542.38
|
|
12.8 %
|
|
$
|
608.03
|
|
$
|
511.43
|
|
18.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments
|
|
|
1,284,991
|
|
|
1,249,645
|
|
2.8 %
|
|
|
3,789,074
|
|
|
3,716,852
|
|
1.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments /
Day
|
|
|
20,078
|
|
|
19,526
|
|
2.8 %
|
|
|
19,838
|
|
|
19,511
|
|
1.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnage
(Tons)
|
|
|
846,613
|
|
|
810,982
|
|
4.4 %
|
|
|
2,541,710
|
|
|
2,440,214
|
|
4.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons / Day
|
|
|
13,228
|
|
|
12,672
|
|
4.4 %
|
|
|
13,307
|
|
|
12,810
|
|
3.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds /
Shipment
|
|
|
1,318
|
|
|
1,298
|
|
1.5 %
|
|
|
1,342
|
|
|
1,313
|
|
2.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Length of Haul
(Miles)
|
|
|
1,100
|
|
|
1,098
|
|
0.2 %
|
|
|
1,092
|
|
|
1,099
|
|
(0.6 %)
|
|
|
|
|
|
|
|
|
|
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__________________________
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1)
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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.
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Year Over Year %
Change
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Three
Months Ended
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Nine Months Ended
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September 30,
2022
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September 30,
2022
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(Unaudited)
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ArcBest(2)
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Revenue /
Shipment
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(2.0 %)
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14.3 %
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Shipments /
Day
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73.2 %
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77.1 %
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__________________________
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2)
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Statistical data for
the three and nine months ended September 30, 2022 includes the
operations of MoLo, which was acquired on
November 1, 2021. Statistical data related to managed
transportation solutions transactions is not included in the
presentation of operating statistics for the ArcBest segment for
the periods presented.
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Investor Relations
Contact: David Humphrey
|
Media
Contact: Autumnn Mahar
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Title: Vice President –
Investor Relations
|
Title: Senior Manager,
PR and Social
|
Phone:
479-785-6200
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Phone:
479-494-8221
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Email:
dhumphrey@arcb.com
|
Email:
amahar@arcb.com
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View original content to download
multimedia:https://www.prnewswire.com/news-releases/arcbest-announces-solid-third-quarter-2022-results-301663736.html
SOURCE ArcBest