STOCK TITAN

ArcBest Announces Third Quarter 2024 Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

ArcBest reported Q3 2024 revenue of $1.06 billion, down from $1.13 billion in Q3 2023. Net income was $100.3 million ($4.23 per diluted share), including a $69.1 million after-tax benefit from contingent consideration reduction. Asset-Based segment revenue decreased 5.8% to $709.7 million, with an operating ratio of 91.0%. Asset-Light segment revenue declined 9.6% to $385.3 million. The company highlighted cost control initiatives, productivity improvements of 5.7%, and service quality recognition from Mastio. Pricing remained rational with a 5.9% general rate increase and 4.6% contract renewal increases.

ArcBest ha riportato un fatturato per il terzo trimestre del 2024 di 1,06 miliardi di dollari, in diminuzione rispetto a 1,13 miliardi di dollari nel terzo trimestre del 2023. L'utile netto è stato di 100,3 milioni di dollari (4,23 dollari per azione diluita), includendo un beneficio dopo le tasse di 69,1 milioni di dollari derivante dalla riduzione della considerazione contingente. Il fatturato del segmento basato su asset è diminuito del 5,8% a 709,7 milioni di dollari, con un rapporto operativo del 91,0%. Il fatturato del segmento leggero è sceso del 9,6% a 385,3 milioni di dollari. La società ha evidenziato iniziative per il controllo dei costi, miglioramenti della produttività del 5,7% e riconoscimenti per la qualità del servizio da Mastio. I prezzi sono rimasti stabili con un aumento generale del tasso del 5,9% e aumenti delle rinnovazioni contrattuali del 4,6%.

ArcBest reportó ingresos de $1.06 mil millones en el tercer trimestre de 2024, una disminución respecto a $1.13 mil millones en el tercer trimestre de 2023. La ganancia neta fue de $100.3 millones (4.23 dólares por acción diluida), incluyendo un beneficio fiscal de $69.1 millones por la reducción de la consideración contingente. Los ingresos del segmento basado en activos disminuyeron un 5.8% a $709.7 millones, con una relación operativa del 91.0%. Los ingresos del segmento ligero cayeron un 9.6% a $385.3 millones. La empresa destacó iniciativas de control de costos, mejoras en la productividad del 5.7% y reconocimiento de calidad de servicio de Mastio. Los precios se mantuvieron estables con un aumento general del 5.9% y aumentos en la renovación de contratos del 4.6%.

ArcBest는 2024년 3분기 수익이 10억 6천만 달러에 달했으며, 이는 2023년 3분기의 11억 3천만 달러에서 하락한 수치입니다. 순이익은 1억 3백만 달러 (희석 주당 4.23달러)였으며, 여기에는 절차적 고려 감소로 인한 세후 6천 9백만 달러의 이익이 포함되어 있습니다. 자산 기반 부문 수익은 5.8% 감소하여 7억 9천 7백만 달러에 이르렀으며, 운영 비율은 91.0%입니다. 자산 경량 부문 수익은 9.6% 감소하여 3억 8천 5백 3십만 달러로 줄었습니다. 회사는 비용 절감 이니셔티브, 5.7%의 생산성 향상, 그리고 Mastio로부터의 서비스 품질 인정을 강조했습니다. 요금은 5.9%의 일반 요금 인상과 4.6%의 계약 갱신 인상으로 합리적인 수준을 유지했습니다.

ArcBest a annoncé un chiffre d'affaires de 1,06 milliard de dollars pour le troisième trimestre 2024, en baisse par rapport à 1,13 milliard de dollars au troisième trimestre 2023. Le bénéfice net s'élevait à 100,3 millions de dollars (4,23 dollars par action diluée), incluant un avantage après impôt de 69,1 millions de dollars en raison de la réduction de la considération conditionnelle. Le chiffre d'affaires du segment basé sur les actifs a diminué de 5,8% pour atteindre 709,7 millions de dollars, avec un ratio opérationnel de 91,0%. Le chiffre d'affaires du segment léger a chuté de 9,6% à 385,3 millions de dollars. L'entreprise a souligné ses initiatives de contrôle des coûts, les améliorations de productivité de 5,7% et la reconnaissance de la qualité du service par Mastio. Les tarifs sont restés raisonnables avec une augmentation générale des prix de 5,9% et des augmentations de renouvellement de contrat de 4,6%.

ArcBest berichtete für das 3. Quartal 2024 von Einnahmen in Höhe von 1,06 Milliarden Dollar, was einem Rückgang von 1,13 Milliarden Dollar im 3. Quartal 2023 entspricht. Der Nettoertrag betrug 100,3 Millionen Dollar (4,23 Dollar pro verwässertem Anteil), einschließlich eines Nachsteuervorteils von 69,1 Millionen Dollar aus der Reduzierung der bedingten Gegenleistung. Die Einnahmen im asset-basierten Segment sanken um 5,8% auf 709,7 Millionen Dollar, mit einem Betriebsverhältnis von 91,0%. Die Einnahmen im asset-light Segment fielen um 9,6% auf 385,3 Millionen Dollar. Das Unternehmen hob Kostenkontrollinitiativen, Produktivitätssteigerungen von 5,7% und eine Anerkennung der Servicequalität durch Mastio hervor. Die Preisgestaltung blieb rational bei einer allgemeinen Preiserhöhung von 5,9% und Vertragsverlängerungen mit einem Anstieg von 4,6%.

Positive
  • Net income increased to $100.3 million from $34.9 million YoY
  • Productivity improvements of 5.7%
  • 5.9% general rate increase implemented
  • 4.6% contract renewal increases achieved
  • 19.5% improvement in Asset-Light shipments per employee per day
Negative
  • Revenue declined 6.2% YoY to $1.06 billion
  • Asset-Based tonnage per day decreased 11.3%
  • Operating ratio deteriorated to 91.0% from 89.9%
  • Asset-Light revenue decreased 9.6%
  • Weight per shipment declined 10.7%

Insights

ArcBest's Q3 2024 results reveal mixed performance amid challenging market conditions. $1.06 billion revenue represents a 6.2% YoY decline, while GAAP net income of $100.3 million includes a significant $69.1 million one-time benefit from contingent consideration adjustment. The core Asset-Based segment saw an operating ratio deterioration to 91.0%, with tonnage declining 11.3%.

Key positives include rational LTL pricing with 4.6% contract renewal increases and productivity gains of 5.7%. However, the Asset-Light segment continues to struggle with negative Adjusted EBITDA of $2.1 million. The removal of earnout expectations signals continued weakness in the truckload market through 2024, though management anticipates recovery by late 2025.

The freight market dynamics reflected in ArcBest's results indicate broader industry challenges. The 10.7% decrease in weight per shipment, coupled with manufacturing sector weakness, suggests persistent macroeconomic headwinds. However, the company's ability to maintain shipment levels while implementing price increases demonstrates market discipline and strong competitive positioning.

The sequential operating ratio deterioration of 120 basis points, below historical averages, warrants attention. The combination of cost control initiatives and network optimization provides some buffer against market pressures, but the outlook remains cautious until clear signs of market recovery emerge.

  • Continued focus on cost control initiatives to mitigate headwinds from challenging freight environment
  • Productivity gains from technology, training, and network design
  • Service improvements, including Mastio recognizing ABF for exceeding the industry benchmark on service

FORT SMITH, Ark.--(BUSINESS WIRE)-- ArcBest® (Nasdaq: ARCB), a leader in supply chain logistics, today reported third quarter 2024 revenue of $1.06 billion, compared to $1.13 billion in third quarter 2023. Net income was $100.3 million, or $4.23 per diluted share, including a $69.1 million after-tax benefit from the reduction in the fair value of contingent consideration related to a 2021 acquisition, compared to $34.9 million, or $1.42 per diluted share in the prior year. On a non-GAAP basis, third quarter 2024 net income was $38.8 million, or $1.64 per diluted share, compared to $56.7 million, or $2.31 per diluted share in the prior year.

“Over the past year, we have made substantial strides in controlling costs, improving productivity, and enhancing our service quality. These efforts contributed to ABF once again being recognized by Mastio for exceeding the industry benchmark for service,” said Judy R. McReynolds, ArcBest Chairman and CEO. “This achievement is a testament to our unwavering commitment to excellence and our strategic investments in technology, training, and network design. Thank you to our customers for this recognition and to our team for their hard work and dedication.”

A 2021 truckload brokerage acquisition included a potential additional payout based on an earnout provision contingent on meeting specific targets through 2025. Due to the prolonged soft truckload market, no payments were made in 2023, and none are expected in 2024. With industry forecasts now suggesting a market recovery later in 2025, the likelihood of an earnout payment has been reduced. Consequently, in the third quarter, the estimated contingent consideration liability was reduced by $91.9 million pre-tax, or $69.1 million after-tax. This benefit is recorded as a reduction to expense in the Company’s GAAP results but has been excluded from non-GAAP results to better represent normal operations.

Results of Operations Comparisons

Asset-Based

Third Quarter 2024 Versus Third Quarter 2023

  • Revenue of $709.7 million compared to $741.2 million, a per-day decrease of 5.8 percent
  • Total tonnage per day decrease of 11.3 percent
  • Total shipments per day decrease of 0.7 percent
  • Total billed revenue per hundredweight increase of 7.4 percent
  • Operating income of $64.0 million and an operating ratio of 91.0 percent, compared to $74.8 million and an operating ratio of 89.9 percent
  • On a non-GAAP basis, operating income of $64.0 million and an operating ratio of 91.0 percent, compared to $82.8 million and an operating ratio of 88.8 percent

On a non-GAAP basis, the Asset-Based segment generated $18.8 million less operating income than third quarter 2023. Third quarter tonnage declines were driven by a 10.7 percent decrease in weight per shipment, while daily shipments were down only slightly. Prolonged manufacturing sector weakness continues to negatively impact weight per shipment metrics. Productivity improvements of 5.7 percent and other cost initiatives helped mitigate the impact of the softer market environment, higher insurance costs, and higher labor cost increases related to an annual union contract rate increase, which went into effect during the third quarter of 2024.

Pricing momentum continued in the quarter, driven by a 5.9 percent general rate increase put in place on September 9, 2024, and contract renewal increases of 4.6 percent. Overall, LTL industry pricing remains rational.

Compared sequentially to the second quarter of 2024, third quarter 2024 revenue per day was flat, shipments per day improved by 1.4 percent, and billed revenue per hundredweight was 1.3 percent higher. However, weight per shipment deteriorated 3.2 percent and tonnage per day decreased 1.8 percent. Lower tonnage combined with higher labor and insurance costs resulted in the operating ratio deterioration of 120 basis points sequentially, which was below the average sequential quarterly changes achieved in recent years.

Asset-Light

Third Quarter 2024 Versus Third Quarter 2023

  • Revenue of $385.3 million compared to $419.3 million, a per-day decrease of 9.6 percent
  • Operating income of $84.8 million, including the $91.9 million pre-tax reduction in the fair value of contingent consideration related to an earnout, compared to operating loss of $3.7 million
  • On a non‑GAAP basis, operating loss of $3.9 million in both periods
  • Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), as defined in the attached non-GAAP reconciliation tables, of negative $2.1 million compared to negative $2.0 million

Compared to the third quarter of 2023, Asset-Light revenues were impacted by lower revenue per shipment associated with the soft rate environment and a higher mix of managed transportation business, which has smaller shipment sizes and lower revenue per shipment metrics. Shipments per day were slightly lower by 0.7 percent. Non-GAAP operating results were comparable to the third quarter prior year. The segment continues to benefit from productivity initiatives, as shipments per employee per day improved 19.5 percent, on a year-over-year basis, but the soft freight environment and excess truckload capacity continues to impact results.

Compared sequentially to second quarter 2024, third quarter 2024 shipments per day were flat, yet daily revenue was down by 1.9 percent as revenue per shipment decreased 2.3 percent. Shipments per employee per day, improved by 3.3 percent, and total operating costs were managed lower. The $1.5 million sequential increase in non-GAAP operating loss was due primarily to the current truckload brokerage pricing environment.

Conference Call

ArcBest will host a conference call with company executives to discuss the quarterly results. The call will be today, Friday, November 1, 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 November 1, 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 November 15, 2024. To listen to the playback, dial (800) 770-2030. The conference call ID for the live conference call and the playback is 2815802. The conference call and playback can also be accessed through November 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

 

Nine Months Ended

 

 

 

September 30

 

September 30

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

(Unaudited)

 

 

 

($ thousands, except share and per share data)

 

REVENUES

 

$

1,063,124

 

 

$

1,128,350

 

 

$

3,177,374

 

 

$

3,337,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

928,131

 

 

 

1,083,259

 

 

 

2,971,101

 

 

 

3,229,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

134,993

 

 

 

45,091

 

 

 

206,273

 

 

 

108,366

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (COSTS)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

 

3,130

 

 

 

3,946

 

 

 

9,686

 

 

 

10,604

 

 

Interest and other related financing costs

 

 

(2,281

)

 

 

(2,236

)

 

 

(6,587

)

 

 

(6,768

)

 

Other, net

 

 

862

 

 

 

89

 

 

 

(28,118

)

 

 

6,907

 

 

 

 

 

1,711

 

 

 

1,799

 

 

 

(25,019

)

 

 

10,743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

 

136,704

 

 

 

46,890

 

 

 

181,254

 

 

 

119,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX PROVISION

 

 

36,390

 

 

 

11,963

 

 

 

36,928

 

 

 

25,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME FROM CONTINUING OPERATIONS

 

 

100,314

 

 

 

34,927

 

 

 

144,326

 

 

 

93,374

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax(1)

 

 

 

 

 

(10

)

 

 

600

 

 

 

53,269

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

100,314

 

 

$

34,917

 

 

$

144,926

 

 

$

146,643

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC EARNINGS PER COMMON SHARE(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

4.25

 

 

$

1.46

 

 

$

6.12

 

 

$

3.87

 

 

Discontinued operations(1)

 

 

 

 

 

 

 

 

0.03

 

 

 

2.21

 

 

 

 

$

4.25

 

 

$

1.45

 

 

$

6.14

 

 

$

6.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DILUTED EARNINGS PER COMMON SHARE(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

4.23

 

 

$

1.42

 

 

$

6.03

 

 

$

3.77

 

 

Discontinued operations(1)

 

 

 

 

 

 

 

 

0.03

 

 

 

2.15

 

 

 

 

$

4.23

 

 

$

1.42

 

 

$

6.06

 

 

$

5.92

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

23,624,761

 

 

 

24,004,255

 

 

 

23,601,548

 

 

 

24,119,449

 

 

Diluted

 

 

23,690,120

 

 

 

24,525,258

 

 

 

23,923,047

 

 

 

24,756,993

 

 

_________________________
1)  

Represents the discontinued operations of FleetNet America® (“FleetNet”), which sold on February 28, 2023. The nine months ended September 30, 2024 represents adjustments related to the prior year gain on sale of FleetNet. The nine months ended September 30, 2023 includes the net gain on sale of FleetNet of $52.3 million after-tax, or $2.17 basic earnings per share and $2.11 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

 

 

 

 

 

 

 

 

 

 

September 30

 

December 31

 

 

 

2024

 

2023

 

 

 

(Unaudited)

 

Note

 

 

 

($ thousands, except share data)

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

150,461

 

 

$

262,226

 

 

Short-term investments

 

 

40,639

 

 

 

67,842

 

 

Accounts receivable, less allowances (2024 - $9,010; 2023 - $10,346)

 

 

422,861

 

 

 

430,122

 

 

Other accounts receivable, less allowances (2024 - $650; 2023 - $731)

 

 

13,247

 

 

 

52,124

 

 

Prepaid expenses

 

 

32,400

 

 

 

37,034

 

 

Prepaid and refundable income taxes

 

 

21,421

 

 

 

24,319

 

 

Other

 

 

10,880

 

 

 

11,116

 

 

TOTAL CURRENT ASSETS

 

 

691,909

 

 

 

884,783

 

 

 

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT

 

 

 

 

 

 

 

Land and structures

 

 

520,894

 

 

 

460,068

 

 

Revenue equipment

 

 

1,170,045

 

 

 

1,126,055

 

 

Service, office, and other equipment

 

 

353,880

 

 

 

319,466

 

 

Software

 

 

182,035

 

 

 

173,354

 

 

Leasehold improvements

 

 

29,648

 

 

 

24,429

 

 

 

 

 

2,256,502

 

 

 

2,103,372

 

 

Less allowances for depreciation and amortization

 

 

1,207,110

 

 

 

1,188,548

 

 

PROPERTY, PLANT AND EQUIPMENT, net

 

 

1,049,392

 

 

 

914,824

 

 

 

 

 

 

 

 

 

 

GOODWILL

 

 

304,753

 

 

 

304,753

 

 

INTANGIBLE ASSETS, net

 

 

91,627

 

 

 

101,150

 

 

OPERATING RIGHT-OF-USE ASSETS

 

 

193,467

 

 

 

169,999

 

 

DEFERRED INCOME TAXES

 

 

8,293

 

 

 

8,140

 

 

OTHER LONG-TERM ASSETS

 

 

74,739

 

 

 

101,445

 

 

TOTAL ASSETS

 

$

2,414,180

 

 

$

2,485,094

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Accounts payable

 

$

204,696

 

 

$

214,004

 

 

Income taxes payable

 

 

4,808

 

 

 

10,410

 

 

Accrued expenses

 

 

360,738

 

 

 

378,029

 

 

Current portion of long-term debt

 

 

62,199

 

 

 

66,948

 

 

Current portion of operating lease liabilities

 

 

33,127

 

 

 

32,172

 

 

TOTAL CURRENT LIABILITIES

 

 

665,568

 

 

 

701,563

 

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT, less current portion

 

 

118,312

 

 

 

161,990

 

 

OPERATING LEASE LIABILITIES, less current portion

 

 

192,046

 

 

 

176,621

 

 

POSTRETIREMENT LIABILITIES, less current portion

 

 

13,269

 

 

 

13,319

 

 

CONTINGENT CONSIDERATION

 

 

12,160

 

 

 

92,900

 

 

DEFERRED INCOME TAXES

 

 

65,738

 

 

 

55,785

 

 

OTHER LONG-TERM LIABILITIES

 

 

39,991

 

 

 

40,553

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Common stock, $0.01 par value, authorized 70,000,000 shares;
issued 2024: 30,400,558 shares; 2023: 30,024,125 shares

 

 

304

 

 

 

300

 

 

Additional paid-in capital

 

 

327,335

 

 

 

340,961

 

 

Retained earnings

 

 

1,409,025

 

 

 

1,272,584

 

 

Treasury stock, at cost, 2024: 6,938,452 shares; 2023: 6,460,137 shares

 

 

(431,914

)

 

 

(375,806

)

 

Accumulated other comprehensive income

 

 

2,346

 

 

 

4,324

 

 

TOTAL STOCKHOLDERS’ EQUITY

 

 

1,307,096

 

 

 

1,242,363

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

2,414,180

 

 

$

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

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

September 30

 

 

 

2024

 

2023

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income

 

$

144,926

 

 

$

146,643

 

 

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

 

 

 

 

 

 

 

Depreciation and amortization

 

 

100,104

 

 

 

98,711

 

 

Amortization of intangibles

 

 

9,616

 

 

 

9,631

 

 

Share-based compensation expense

 

 

9,040

 

 

 

8,590

 

 

Provision for losses on accounts receivable

 

 

2,038

 

 

 

2,621

 

 

Change in deferred income taxes

 

 

10,547

 

 

 

(10,880

)

 

(Gain) loss on sale of property and equipment

 

 

(1,063

)

 

 

1,134

 

 

Pre-tax gain on sale of discontinued operations

 

 

(806

)

 

 

(70,201

)

 

Lease impairment charges

 

 

 

 

 

30,162

 

 

Change in fair value of contingent consideration

 

 

(80,740

)

 

 

(12,800

)

 

Change in fair value of equity investment

 

 

28,739

 

 

 

(3,739

)

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Receivables

 

 

44,344

 

 

 

43,478

 

 

Prepaid expenses

 

 

4,634

 

 

 

8,640

 

 

Other assets

 

 

(3,364

)

 

 

2,393

 

 

Income taxes

 

 

(2,870

)

 

 

(22,051

)

 

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

 

 

(7,088

)

 

 

3,286

 

 

Accounts payable, accrued expenses, and other liabilities

 

 

(29,009

)

 

 

(40,863

)

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

 

229,048

 

 

 

194,755

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

Purchases of property, plant and equipment, net of financings

 

 

(169,839

)

 

 

(129,779

)

 

Proceeds from sale of property and equipment

 

 

6,187

 

 

 

5,972

 

 

Proceeds from sale of discontinued operations

 

 

 

 

 

100,949

 

 

Purchases of short-term investments

 

 

(29,236

)

 

 

(80,353

)

 

Proceeds from sale of short-term investments

 

 

55,874

 

 

 

160,570

 

 

Capitalization of internally developed software

 

 

(12,437

)

 

 

(9,424

)

 

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

 

 

(149,451

)

 

 

47,935

 

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

Payments on long-term debt

 

 

(102,366

)

 

 

(52,489

)

 

Net change in book overdrafts

 

 

(1,676

)

 

 

(12,489

)

 

Deferred financing costs

 

 

(65

)

 

 

57

 

 

Payment of common stock dividends

 

 

(8,485

)

 

 

(8,696

)

 

Purchases of treasury stock

 

 

(56,108

)

 

 

(65,886

)

 

Payments for tax withheld on share-based compensation

 

 

(22,662

)

 

 

(10,056

)

 

NET CASH USED IN FINANCING ACTIVITIES

 

 

(191,362

)

 

 

(149,559

)

 

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

(111,765

)

 

 

93,131

 

 

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

 

$

150,461

 

 

$

251,503

 

 

 

 

 

 

 

 

 

 

NONCASH INVESTING ACTIVITIES

 

 

 

 

 

 

 

Equipment financed

 

$

53,939

 

 

$

31,024

 

 

Accruals for equipment received

 

$

5,114

 

 

$

5,743

 

 

Lease liabilities arising from obtaining right-of-use assets

 

$

40,872

 

 

$

49,033

 

 

_________________________

Note: The statements of cash flows for the nine months ended September 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

 

 

Nine Months Ended

 

 

September 30

 

 

September 30

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

(Unaudited)

 

 

($ thousands, except percentages)

 

REVENUES FROM CONTINUING OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

$

709,722

 

 

 

 

 

$

741,186

 

 

 

 

 

$

2,093,914

 

 

 

 

 

$

2,161,018

 

 

 

 

Asset-Light

 

385,324

 

 

 

 

 

 

419,312

 

 

 

 

 

 

1,177,504

 

 

 

 

 

 

1,267,220

 

 

 

 

Other and eliminations

 

(31,922

)

 

 

 

 

 

(32,148

)

 

 

 

 

 

(94,044

)

 

 

 

 

 

(90,330

)

 

 

 

Total consolidated revenues from continuing operations

$

1,063,124

 

 

 

 

 

$

1,128,350

 

 

 

 

 

$

3,177,374

 

 

 

 

 

$

3,337,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES FROM CONTINUING OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages, and benefits

$

358,469

 

 

50.5

 

%

 

$

357,582

 

 

48.2

 

%

 

$

1,056,146

 

 

50.4

 

%

 

$

1,037,725

 

 

48.0

 

%

Fuel, supplies, and expenses

 

79,170

 

 

11.2

 

 

 

 

91,493

 

 

12.4

 

 

 

 

243,152

 

 

11.6

 

 

 

 

276,678

 

 

12.8

 

 

Operating taxes and licenses

 

13,538

 

 

1.9

 

 

 

 

13,865

 

 

1.9

 

 

 

 

40,624

 

 

1.9

 

 

 

 

41,938

 

 

1.9

 

 

Insurance

 

19,819

 

 

2.8

 

 

 

 

13,654

 

 

1.8

 

 

 

 

51,265

 

 

2.4

 

 

 

 

39,816

 

 

1.8

 

 

Communications and utilities

 

4,793

 

 

0.6

 

 

 

 

4,729

 

 

0.6

 

 

 

 

14,004

 

 

0.7

 

 

 

 

14,586

 

 

0.7

 

 

Depreciation and amortization

 

26,967

 

 

3.8

 

 

 

 

26,537

 

 

3.6

 

 

 

 

80,620

 

 

3.9

 

 

 

 

76,721

 

 

3.6

 

 

Rents and purchased transportation

 

73,600

 

 

10.4

 

 

 

 

79,233

 

 

10.7

 

 

 

 

209,586

 

 

10.0

 

 

 

 

271,899

 

 

12.6

 

 

Shared services

 

69,463

 

 

9.8

 

 

 

 

70,699

 

 

9.5

 

 

 

 

206,622

 

 

9.9

 

 

 

 

209,780

 

 

9.7

 

 

(Gain) loss on sale of property and equipment and lease impairment charges(1)

 

(1,688

)

 

(0.2

)

 

 

 

540

 

 

0.1

 

 

 

 

(1,630

)

 

(0.1

)

 

 

 

905

 

 

 

 

Innovative technology costs(2)

 

 

 

 

 

 

 

7,300

 

 

1.0

 

 

 

 

 

 

 

 

 

 

21,711

 

 

1.0

 

 

Other

 

1,571

 

 

0.2

 

 

 

 

731

 

 

0.1

 

 

 

 

3,257

 

 

0.2

 

 

 

 

3,640

 

 

0.2

 

 

Total Asset-Based

 

645,702

 

 

91.0

 

%

 

 

666,363

 

 

89.9

 

%

 

 

1,903,646

 

 

90.9

 

%

 

 

1,995,399

 

 

92.3

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Light

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

$

331,107

 

 

85.9

 

%

 

$

365,217

 

 

87.1

 

%

 

$

1,014,476

 

 

86.2

 

%

 

$

1,078,482

 

 

85.1

 

%

Salaries, wages, and benefits(3)

 

30,150

 

 

7.8

 

 

 

 

31,193

 

 

7.4

 

 

 

 

91,490

 

 

7.8

 

 

 

 

98,688

 

 

7.8

 

 

Supplies and expenses(3)

 

2,702

 

 

0.7

 

 

 

 

2,625

 

 

0.6

 

 

 

 

8,279

 

 

0.7

 

 

 

 

9,159

 

 

0.7

 

 

Depreciation and amortization(4)

 

5,037

 

 

1.3

 

 

 

 

5,097

 

 

1.2

 

 

 

 

15,154

 

 

1.3

 

 

 

 

15,250

 

 

1.2

 

 

Shared services(3)

 

17,547

 

 

4.6

 

 

 

 

16,218

 

 

4.0

 

 

 

 

51,118

 

 

4.3

 

 

 

 

49,232

 

 

3.9

 

 

Contingent consideration(5)

 

(91,910

)

 

(23.9

)

 

 

 

(17,840

)

 

(4.3

)

 

 

 

(80,740

)

 

(6.9

)

 

 

 

(12,800

)

 

(1.0

)

 

Lease impairment charges(6)

 

 

 

 

 

 

 

14,407

 

 

3.4

 

 

 

 

 

 

 

 

 

 

14,407

 

 

1.1

 

 

Other(3)

 

5,912

 

 

1.6

 

 

 

 

6,099

 

 

1.5

 

 

 

 

17,704

 

 

1.5

 

 

 

 

19,417

 

 

1.6

 

 

Total Asset-Light

 

300,545

 

 

78.0

 

%

 

 

423,016

 

 

100.9

 

%

 

 

1,117,481

 

 

94.9

 

%

 

 

1,271,835

 

 

100.4

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations(7)

 

(18,116

)

 

 

 

 

 

(6,120

)

 

 

 

 

 

(50,026

)

 

 

 

 

 

(37,692

)

 

 

 

Total consolidated operating expenses from continuing operations

$

928,131

 

 

87.3

 

%

 

$

1,083,259

 

 

96.0

 

%

 

$

2,971,101

 

 

93.5

 

%

 

$

3,229,542

 

 

96.8

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Based

$

64,020

 

 

 

 

 

$

74,823

 

 

 

 

 

$

190,268

 

 

 

 

 

$

165,619

 

 

 

 

Asset-Light

 

84,779

 

 

 

 

 

 

(3,704

)

 

 

 

 

 

60,023

 

 

 

 

 

 

(4,615

)

 

 

 

Other and eliminations(7)

 

(13,806

)

 

 

 

 

 

(26,028

)

 

 

 

 

 

(44,018

)

 

 

 

 

 

(52,638

)

 

 

 

Total consolidated operating income from continuing operations

$

134,993

 

 

 

 

 

$

45,091

 

 

 

 

 

$

206,273

 

 

 

 

 

$

108,366

 

 

 

 

   

_________________________

1)  

The three and nine months ended September 30, 2023 include $0.7 million of noncash lease-related impairment charges for a service center.

2)  

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.

3)  

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.

4)  

Includes amortization of intangibles associated with acquired businesses.

5)  

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.

6)  

The 2023 period represents noncash lease-related impairment charges for certain office spaces that were made available for sublease.

7)  

“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. The 2023 period also includes $15.1 million of noncash lease-related impairment charges for a freight handling pilot facility.

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

 

Nine Months Ended

 

 

September 30

 

September 30

 

 

 

2024

 

2023

 

2024

 

2023

 

ArcBest Corporation - Consolidated

 

(Unaudited)

 

 

 

($ thousands, except per share data)

 

Operating Income from Continuing Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

134,993

 

 

$

45,091

 

 

$

206,273

 

 

$

108,366

 

 

Innovative technology costs, pre-tax(1)

 

 

8,512

 

 

 

14,059

 

 

 

26,521

 

 

 

41,358

 

 

Purchase accounting amortization, pre-tax(2)

 

 

3,192

 

 

 

3,192

 

 

 

9,576

 

 

 

9,576

 

 

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

 

 

(91,910

)

 

 

(17,840

)

 

 

(80,740

)

 

 

(12,800

)

 

Lease impairment charges, pre-tax(4)

 

 

 

 

 

30,162

 

 

 

 

 

 

30,162

 

 

Non-GAAP amounts

 

$

54,787

 

 

$

74,664

 

 

$

161,630

 

 

$

176,662

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income from Continuing Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

100,314

 

 

$

34,927

 

 

$

144,326

 

 

$

93,374

 

 

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

 

 

6,511

 

 

 

10,630

 

 

 

20,331

 

 

 

31,316

 

 

Purchase accounting amortization, after-tax(2)

 

 

2,401

 

 

 

2,398

 

 

 

7,202

 

 

 

7,194

 

 

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

 

 

(69,124

)

 

 

(13,404

)

 

 

(60,723

)

 

 

(9,617

)

 

Lease impairment charges, after-tax(4)

 

 

 

 

 

22,571

 

 

 

 

 

 

22,571

 

 

Change in fair value of equity investment, after-tax(5)

 

 

 

 

 

 

 

 

21,603

 

 

 

(2,786

)

 

Life insurance proceeds and changes in cash surrender value

 

 

(1,333

)

 

 

(212

)

 

 

(3,006

)

 

 

(2,794

)

 

Tax benefit from vested RSUs(6)

 

 

(9

)

 

 

(188

)

 

 

(11,273

)

 

 

(5,103

)

 

Non-GAAP amounts

 

$

38,760

 

 

$

56,722

 

 

$

118,460

 

 

$

134,155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share from Continuing Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

4.23

 

 

$

1.42

 

 

$

6.03

 

 

$

3.77

 

 

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

 

 

0.27

 

 

 

0.43

 

 

 

0.85

 

 

 

1.26

 

 

Purchase accounting amortization, after-tax(2)

 

 

0.10

 

 

 

0.10

 

 

 

0.30

 

 

 

0.29

 

 

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

 

 

(2.92

)

 

 

(0.55

)

 

 

(2.54

)

 

 

(0.39

)

 

Lease impairment charges, after-tax(4)

 

 

 

 

 

0.92

 

 

 

 

 

 

0.91

 

 

Change in fair value of equity investment, after-tax(5)

 

 

 

 

 

 

 

 

0.90

 

 

 

(0.11

)

 

Life insurance proceeds and changes in cash surrender value

 

 

(0.06

)

 

 

(0.01

)

 

 

(0.13

)

 

 

(0.11

)

 

Tax benefit from vested RSUs(6)

 

 

 

 

 

(0.01

)

 

 

(0.47

)

 

 

(0.21

)

 

Non-GAAP amounts(7)

 

$

1.64

 

 

$

2.31

 

 

$

4.95

 

 

$

5.42

 

 

_________________________

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

 

Nine Months Ended

 

 

 

September 30

 

September 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

 

$

64,020

 

 

91.0

 

%

 

$

74,823

 

 

89.9

 

%

 

$

190,268

 

 

90.9

 

%

 

$

165,619

 

 

92.3

 

%

 

Innovative technology costs, pre-tax(8)

 

 

 

 

 

 

 

 

7,300

 

 

(1.0

)

 

 

 

 

 

 

 

 

 

21,711

 

 

(1.0

)

 

 

Lease impairment charges, pre-tax(4)

 

 

 

 

 

 

 

 

684

 

 

(0.1

)

 

 

 

 

 

 

 

 

 

684

 

 

 

 

 

Non-GAAP amounts(7)

 

$

64,020

 

 

91.0

 

%

 

$

82,807

 

 

88.8

 

%

 

$

190,268

 

 

90.9

 

%

 

$

188,014

 

 

91.3

 

%

 

 

 

 

 

 

 

Asset-Light Segment

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

84,779

 

 

78.0

 

%

 

$

(3,704

)

 

100.9

 

%

 

$

60,023

 

 

94.9

 

%

 

$

(4,615

)

 

100.4

 

%

 

Purchase accounting amortization, pre-tax(2)

 

 

3,192

 

 

(0.8

)

 

 

 

3,192

 

 

(0.8

)

 

 

 

9,576

 

 

(0.8

)

 

 

 

9,576

 

 

(0.8

)

 

 

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

 

 

(91,910

)

 

23.9

 

 

 

 

(17,840

)

 

4.3

 

 

 

 

(80,740

)

 

6.9

 

 

 

 

(12,800

)

 

1.0

 

 

 

Lease impairment charges, pre-tax(4)

 

 

 

 

 

 

 

 

14,407

 

 

(3.4

)

 

 

 

 

 

 

 

 

 

14,407

 

 

(1.1

)

 

 

Non-GAAP amounts(7)

 

$

(3,939

)

 

101.0

 

%

 

$

(3,945

)

 

100.9

 

%

 

$

(11,141

)

 

100.9

 

%

 

$

6,568

 

 

99.5

 

%

 

 

 

 

 

 

 

Other and Eliminations

 

 

 

 

 

Operating Income (Loss) ($)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts on GAAP basis

 

$

(13,806

)

 

 

 

 

$

(26,028

)

 

 

 

 

$

(44,018

)

 

 

 

 

$

(52,638

)

 

 

 

 

Innovative technology costs, pre-tax(1)

 

 

8,512

 

 

 

 

 

 

6,759

 

 

 

 

 

 

26,521

 

 

 

 

 

 

19,647

 

 

 

 

 

Lease impairment charges, pre-tax(4)

 

 

 

 

 

 

 

 

15,071

 

 

 

 

 

 

 

 

 

 

 

 

15,071

 

 

 

 

 

Non-GAAP amounts(7)

 

$

(5,294

)

 

 

 

 

$

(4,198

)

 

 

 

 

$

(17,497

)

 

 

 

 

$

(17,920

)

 

 

 

 

_________________________

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 September 30, 2024

 

 

 

 

 

Other

 

Income

 

Income

 

 

 

 

 

CONTINUING OPERATIONS

 

Operating

 

Income

 

Before Income

 

Tax

 

Net

 

 

 

 

Income

 

(Costs)

 

Taxes

 

Provision

 

Income

 

Tax Rate(9)

Amounts on GAAP basis

 

$

134,993

 

 

$

1,711

 

 

$

136,704

 

 

$

36,390

 

 

$

100,314

 

 

26.6

 

%

Innovative technology costs(1)

 

 

8,512

 

 

 

145

 

 

 

8,657

 

 

 

2,146

 

 

 

6,511

 

 

24.8

 

 

Purchase accounting amortization(2)

 

 

3,192

 

 

 

 

 

 

3,192

 

 

 

791

 

 

 

2,401

 

 

24.8

 

 

Change in fair value of contingent consideration(3)

 

 

(91,910

)

 

 

 

 

 

(91,910

)

 

 

(22,786

)

 

 

(69,124

)

 

(24.8

)

 

Life insurance proceeds and changes in cash surrender value

 

 

 

 

 

(1,333

)

 

 

(1,333

)

 

 

 

 

 

(1,333

)

 

 

 

Tax benefit from vested RSUs(6)

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

(9

)

 

 

 

Non-GAAP amounts

 

$

54,787

 

 

$

523

 

 

$

55,310

 

 

$

16,550

 

 

$

38,760

 

 

29.9

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2024

 

 

 

 

Other

 

Income

 

Income

 

 

 

 

 

 

 

 

Operating

 

Income

 

Before Income

 

Tax

 

Net

 

 

 

 

Income

 

(Costs)

 

Taxes

 

Provision

 

Income

 

Tax Rate(9)

Amounts on GAAP basis

 

$

206,273

 

 

$

(25,019

)

 

$

181,254

 

 

$

36,928

 

 

$

144,326

 

 

20.4

 

%

Innovative technology costs(1)

 

 

26,521

 

 

 

512

 

 

 

27,033

 

 

 

6,702

 

 

 

20,331

 

 

24.8

 

 

Purchase accounting amortization(2)

 

 

9,576

 

 

 

 

 

 

9,576

 

 

 

2,374

 

 

 

7,202

 

 

24.8

 

 

Change in fair value of contingent consideration(3)

 

 

(80,740

)

 

 

 

 

 

(80,740

)

 

 

(20,017

)

 

 

(60,723

)

 

(24.8

)

 

Change in fair value of equity investment(5)

 

 

 

 

 

28,739

 

 

 

28,739

 

 

 

7,136

 

 

 

21,603

 

 

24.8

 

 

Life insurance proceeds and changes in cash surrender value

 

 

 

 

 

(3,006

)

 

 

(3,006

)

 

 

 

 

 

(3,006

)

 

 

 

Tax benefit from vested RSUs(6)

 

 

 

 

 

 

 

 

 

 

 

11,273

 

 

 

(11,273

)

 

 

 

Non-GAAP amounts

 

$

161,630

 

 

$

1,226

 

 

$

162,856

 

 

$

44,396

 

 

$

118,460

 

 

27.3

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2023

 

 

 

 

Other

 

Income

 

Income

 

 

 

 

 

CONTINUING OPERATIONS

 

Operating

 

Income

 

Before Income

 

Tax

 

Net

 

 

 

 

Income

 

(Costs)

 

Taxes

 

Provision

 

Income

 

Tax Rate(9)

Amounts on GAAP basis

 

$

45,091

 

 

$

1,799

 

 

$

46,890

 

 

$

11,963

 

 

$

34,927

 

 

25.5

 

%

Innovative technology costs(1)

 

 

14,059

 

 

 

226

 

 

 

14,285

 

 

 

3,655

 

 

 

10,630

 

 

25.6

 

 

Purchase accounting amortization(2)

 

 

3,192

 

 

 

 

 

 

3,192

 

 

 

794

 

 

 

2,398

 

 

24.9

 

 

Change in fair value of contingent consideration(3)

 

 

(17,840

)

 

 

 

 

 

(17,840

)

 

 

(4,436

)

 

 

(13,404

)

 

(24.9

)

 

Lease impairment charges(4)

 

 

30,162

 

 

 

 

 

 

30,162

 

 

 

7,591

 

 

 

22,571

 

 

25.2

 

 

Life insurance proceeds and changes in cash surrender value

 

 

 

 

 

(212

)

 

 

(212

)

 

 

 

 

 

(212

)

 

 

 

Tax benefit from vested RSUs(6)

 

 

 

 

 

 

 

 

 

 

 

188

 

 

 

(188

)

 

 

 

Non-GAAP amounts

 

$

74,664

 

 

$

1,813

 

 

$

76,477

 

 

$

19,755

 

 

$

56,722

 

 

25.8

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2023

 

 

 

 

Other

 

Income

 

Income

 

 

 

 

 

 

 

 

Operating

 

Income

 

Before Income

 

Tax

 

Net

 

 

 

 

Income

 

(Costs)

 

Taxes

 

Provision

 

Income

 

Tax Rate(9)

Amounts on GAAP basis

 

$

108,366

 

 

$

10,743

 

 

$

119,109

 

 

$

25,735

 

 

$

93,374

 

 

21.6

 

%

Innovative technology costs(1)

 

 

41,358

 

 

 

726

 

 

 

42,084

 

 

 

10,768

 

 

 

31,316

 

 

25.6

 

 

Purchase accounting amortization(2)

 

 

9,576

 

 

 

 

 

 

9,576

 

 

 

2,382

 

 

 

7,194

 

 

24.9

 

 

Change in fair value of contingent consideration(3)

 

 

(12,800

)

 

 

 

 

 

(12,800

)

 

 

(3,183

)

 

 

(9,617

)

 

(24.9

)

 

Lease impairment charges(4)

 

 

30,162

 

 

 

 

 

 

30,162

 

 

 

7,591

 

 

 

22,571

 

 

25.2

 

 

Change in fair value of equity investment(5)

 

 

 

 

 

(3,739

)

 

 

(3,739

)

 

 

(953

)

 

 

(2,786

)

 

(25.5

)

 

Life insurance proceeds and changes in cash surrender value

 

 

 

 

 

(2,794

)

 

 

(2,794

)

 

 

 

 

 

(2,794

)

 

 

 

Tax benefit from vested RSUs(6)

 

 

 

 

 

 

 

 

 

 

 

5,103

 

 

 

(5,103

)

 

 

 

Non-GAAP amounts

 

$

176,662

 

 

$

4,936

 

 

$

181,598

 

 

$

47,443

 

 

$

134,155

 

 

26.1

 

%

_________________________

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, changes in the fair values of contingent consideration and equity investment, and lease impairment charges, which are significant expenses or gains 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

 

Nine Months Ended

 

 

September 30

 

 

September 30

 

 

 

2024

 

2023

 

2024

 

2023

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

ArcBest Corporation - Consolidated Adjusted EBITDA from Continuing Operations

 

 

Net Income from Continuing Operations

 

$

100,314

 

 

$

34,927

 

 

$

144,326

 

 

$

93,374

 

 

Interest and other related financing costs

 

 

2,281

 

 

 

2,236

 

 

 

6,587

 

 

 

6,768

 

 

Income tax provision

 

 

36,390

 

 

 

11,963

 

 

 

36,928

 

 

 

25,735

 

 

Depreciation and amortization(10)

 

 

36,611

 

 

 

37,141

 

 

 

109,720

 

 

 

107,962

 

 

Amortization of share-based compensation

 

 

2,718

 

 

 

3,005

 

 

 

9,040

 

 

 

8,537

 

 

Change in fair value of contingent consideration(3)

 

 

(91,910

)

 

 

(17,840

)

 

 

(80,740

)

 

 

(12,800

)

 

Lease impairment charges(4)

 

 

 

 

 

30,162

 

 

 

 

 

 

30,162

 

 

Change in fair value of equity investment(5)

 

 

 

 

 

 

 

 

28,739

 

 

 

(3,739

)

 

Consolidated Adjusted EBITDA from Continuing Operations

 

$

86,404

 

 

$

101,594

 

 

$

254,600

 

 

$

255,999

 

 

_________________________

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

 

Nine Months Ended

 

 

 

September 30

 

September 30

 

 

 

2024

 

2023

 

2024

 

2023

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

Asset-Light Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

$

84,779

 

 

$

(3,704

)

 

$

60,023

 

 

$

(4,615

)

 

Depreciation and amortization(10)

 

 

5,037

 

 

 

5,097

 

 

 

15,154

 

 

 

15,250

 

 

Change in fair value of contingent consideration(3)

 

 

(91,910

)

 

 

(17,840

)

 

 

(80,740

)

 

 

(12,800

)

 

Lease impairment charges(4)

 

 

 

 

 

14,407

 

 

 

 

 

 

14,407

 

 

Asset-Light Adjusted EBITDA

 

$

(2,094

)

 

$

(2,040

)

 

$

(5,563

)

 

$

12,242

 

 

_________________________

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. As of September 30, 2024, the decrease in fair value reflects the reduction in payout assumptions projected for the earnout in 2025, due to the continued soft truckload environment and the latest industry expectations for a truckload market recovery being pushed further into 2025 than previously estimated.

4)  

Represents noncash lease-related impairment charges for a freight handling pilot facility reported in “Other”, an Asset‑Based service center, and Asset-Light office spaces that were made available for sublease.

5)  

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

6)  

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

7)  

Non-GAAP amounts are calculated in total and may not equal the sum of GAAP amounts and non-GAAP adjustments due to rounding.

8)  

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.

9)  

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.

10)  

Includes amortization of intangibles associated with acquired businesses.

ARCBEST CORPORATION

OPERATING STATISTICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30

 

 

September 30

 

 

 

2024

 

2023

 

% Change

 

 

2024

 

2023

 

% Change

 

 

 

(Unaudited)

 

Asset-Based

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Workdays

 

 

63.5

 

 

62.5

 

 

 

 

 

191.0

 

 

190.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Billed Revenue(1) / CWT

 

$

50.76

 

$

47.28

 

7.4

%

 

 

$

49.81

 

$

43.17

 

15.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Billed Revenue(1) / Shipment

 

$

551.34

 

$

574.95

 

(4.1

%)

 

 

$

552.20

 

$

549.53

 

0.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage / Day

 

 

10,983

 

 

12,389

 

(11.3

%)

 

 

 

11,035

 

 

13,192

 

(16.4

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments / Day

 

 

20,221

 

 

20,373

 

(0.7

%)

 

 

 

19,907

 

 

20,727

 

(4.0

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments / DSY hour

 

 

0.445

 

 

0.421

 

5.7

%

 

 

 

0.445

 

 

0.423

 

5.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weight / Shipment

 

 

1,086

 

 

1,216

 

(10.7

%)

 

 

 

1,109

 

 

1,273

 

(12.9

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Length of Haul (Miles)

 

 

1,143

 

 

1,065

 

7.3

%

 

 

 

1,130

 

 

1,096

 

3.1

%

 

_________________________
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

Nine Months Ended

 

 

September 30, 2024

September 30, 2024

 

 

(Unaudited)

Asset-Light(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue / Shipment

 

 

(8.9%)

 

 

(14.5%)

 

 

 

 

 

 

 

Shipments / Day

 

 

(0.7%)

 

 

8.2%

_________________________
2)  

Statistical data for the periods presented includes 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 nine months ended September 30, 2023.

 

Investor Relations Contact: Amy Mendenhall

Phone: 479-785-6200

Email: invrel@arcb.com

Media Contact: Autumnn Mahar

Phone: 479-494-8221

Email: amahar@arcb.com

Source: ArcBest

FAQ

What was ArcBest's (ARCB) revenue in Q3 2024?

ArcBest reported revenue of $1.06 billion in Q3 2024, compared to $1.13 billion in Q3 2023.

What was ArcBest's (ARCB) earnings per share in Q3 2024?

ArcBest reported earnings of $4.23 per diluted share, or $1.64 per diluted share on a non-GAAP basis.

What was ArcBest's (ARCB) Asset-Based segment operating ratio in Q3 2024?

The Asset-Based segment operating ratio was 91.0% in Q3 2024, compared to 89.9% in Q3 2023.

What pricing increases did ArcBest (ARCB) implement in Q3 2024?

ArcBest implemented a 5.9% general rate increase on September 9, 2024, and achieved contract renewal increases of 4.6%.

ArcBest Corporation

NASDAQ:ARCB

ARCB Rankings

ARCB Latest News

ARCB Stock Data

2.58B
22.99M
0.97%
102.42%
6.91%
Trucking
Trucking (no Local)
Link
United States of America
FORT SMITH