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ArcBest® Announces First Quarter 2022 Results

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ArcBest (Nasdaq: ARCB) reported a record-breaking first quarter for 2022, with revenue soaring to $1.3 billion, up 61% year-over-year. Net income reached $69.6 million, or $2.68 per diluted share, marking significant growth from $23.4 million in Q1 2021. The company attributed this growth to strong performance across all segments and the successful integration of MoLo Solutions. With robust cash flow, ArcBest plans to increase shareholder returns through share repurchase and dividend boosts. Continued investment in technology and talent is expected to sustain future growth.

Positive
  • Q1 2022 revenue increased by 61% to $1.3 billion compared to Q1 2021.
  • Net income improved to $69.6 million, or $2.68 per diluted share, from $23.4 million or $0.87 per diluted share in Q1 2021.
  • Operating income for Q1 2022 was $94.9 million, a significant rise from $32.2 million in Q1 2021.
  • Successful integration of MoLo Solutions contributed to record profitability and revenue growth in the Asset-Light segment.
  • Strong cash flow allows for increased shareholder returns through enhanced dividends and share repurchase program.
Negative
  • None.

Solidifies Position as Leading Integrated Logistics Company and Delivers Record Profitability

  • First quarter 2022 revenue of $1.3 billion increased 61.0 percent over first quarter 2021.
  • Net income improved to $69.6 million, or $2.68 per diluted share. On a non-GAAP basis, first quarter 2022 net income was $79.8 million, or $3.08 per diluted share.
  • Continued significant investments in technology, customer solutions and people to drive revenue growth.

FORT SMITH, Ark., April 29, 2022 /PRNewswire/ -- ArcBest® (Nasdaq: ARCB), a leader in supply chain logistics, today reported first quarter 2022 revenue of $1.3 billion, reflecting an increase of $505.9 million compared to first quarter 2021. Each of ArcBest's operating segments achieved double-digit percentage revenue growth over the prior year period. First quarter 2022 results include the impact of the acquisition of MoLo Solutions, LLC ("MoLo"), which was completed in November 2021.

ArcBest's first quarter 2022 operating income was $94.9 million and net income was $69.6 million, or $2.68 per diluted share, compared to operating income of $32.2 million and net income of $23.4 million, or $0.87 per diluted share, in the first quarter of 2021. 

Excluding certain items in both periods as identified in the attached reconciliation tables, first quarter non-GAAP operating income was $108.6 million, compared to $40.8 million in the prior-year period. On a non-GAAP basis, net income was $79.8 million, or $3.08 per diluted share, compared to $28.5 million, or $1.06 per diluted share, in the first quarter of 2021.

"Our outstanding first quarter results, including record profitability, demonstrate our success in transforming ArcBest and positioning it as one of the country's leading integrated logistics companies," said Judy R. McReynolds, ArcBest chairman, president and CEO. "Our strategy is working, underscored by improved operating margins across the business, and we are aggressively investing in our vision to ensure we continue innovating, developing our talent, enhancing our ability to serve customers and driving incremental revenue growth. As announced yesterday, our strong cash flow allows us to return more capital to shareholders by increasing both our share repurchase program and our dividend. We are confident our talented team is poised to execute on our clearly defined strategy, which will accelerate our growth trajectory while positioning ArcBest to operate even more efficiently and consistently for years to come."

First Quarter Results of Operations Comparisons

Asset-Based

First Quarter 2022 Versus First Quarter 2021

  • Revenue of $705.3 million compared to $556.3 million, a per-day increase of 25.8 percent.
  • Total tonnage per day increase of 3.6 percent, including an increase of 0.9 percent in LTL-rated weight per shipment.
  • Total shipments per day increased 0.2 percent.
  • Total billed revenue per hundredweight increased 21.1 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 double digits.
  • Operating income of $80.0 million compared to $30.1 million. On a non-GAAP basis, operating income of $87.0 million compared to $36.9 million.

Strength in the pricing environment and an increase in ABF Freight's average weight per shipment both contributed to strong first quarter revenue growth in ArcBest's Asset-Based business versus the prior year period. Despite inflationary pressures, customer demand and market rates remained solid and ArcBest continued to deliver on the increasing  supply chain needs of its customers through customized logistics solutions. Freight trends with ArcBest's core LTL customers were also positive throughout the quarter while activities designed to optimize revenue, network balance, freight mix and shipments resulted in more efficient utilization of labor and network resources, and improved profitability. Asset-Based hiring initiatives were successful, contributing to ABF Freight adding over 600 new employees across key locations during the quarter.

Asset-Light

First Quarter 2022 Versus First Quarter 2021 (including the results of MoLo)

  • Revenue of $673.7 million compared to $311.5 million, a per-day increase of 114.6 percent.
  • Operating income of $22.8 million compared to $9.3 million. On a non-GAAP basis, operating income of $26.9 million compared to $10.2 million.
  • Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") of $29.3 million compared to $12.1 million, as detailed in the attached non-GAAP reconciliation tables.

Enhanced customer demand and higher market rates drove strong first quarter revenue growth and record profitability in the ArcBest Asset-Light segment. The integration of MoLo and related synergy realization remains on schedule and is progressing as expected, contributing to increases in truckload brokerage revenue and business levels over the same period last year. In addition, supply chain solutions offered through managed transportation, expedite and international services were meaningful contributors to the enhanced financial results of the Asset–Light business. The higher operating income reflects increased revenue and effective cost management, which also resulted in greater operating leverage.

At FleetNet, increases in total events and revenue per event contributed to growth in total revenue and profitability compared to 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 first quarter results. The call will be today, Friday, April 29, at 9:30 a.m. EDT (8:30 a.m. CDT). Interested parties are invited to listen by calling (800) 891-9945 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 April 29, 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 June 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 22017045. The conference call and playback can also be accessed, through June 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 nearly 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 March 31, 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.

Investor Relations Contact: David Humphrey

Media Contact: Autumnn Mahar

Title: Vice President – Investor Relations

Title: Senior Manager, PR and Social

Phone: 479-785-6200 

Phone: 479-494-8221

Email: dhumphrey@arcb.com 

Email: amahar@arcb.com

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 




March 31




2022


2021




(Unaudited)




($ thousands, except share and per share data)


REVENUES


$

1,335,074


$

829,213










OPERATING EXPENSES



1,240,146



797,022










OPERATING INCOME



94,928



32,191










OTHER INCOME (COSTS)








Interest and dividend income



106



392


Interest and other related financing costs



(1,939)



(2,428)


Other, net



(826)



1,192





(2,659)



(844)










INCOME BEFORE INCOME TAXES



92,269



31,347










INCOME TAX PROVISION



22,700



7,986










NET INCOME


$

69,569


$

23,361










EARNINGS PER COMMON SHARE








Basic


$

2.82


$

0.92


Diluted


$

2.68


$

0.87










AVERAGE COMMON SHARES OUTSTANDING








Basic



24,710,685



25,454,921


Diluted



25,911,200



26,930,402










CASH DIVIDENDS DECLARED PER COMMON SHARE


$

0.08


$

0.08


 

ARCBEST CORPORATION
CONSOLIDATED BALANCE SHEETS











March 31


December 31




2022


2021




(Unaudited)


Note




($ thousands, except share data)


ASSETS








CURRENT ASSETS








Cash and cash equivalents


$

64,108


$

76,620


Short-term investments



37,024



48,339


Accounts receivable, less allowances (2022 - $15,737; 2021 - $13,226)



676,200



582,344


Other accounts receivable, less allowances (2022 - $697; 2021 - $690)



22,109



13,094


Prepaid expenses



42,688



40,104


Prepaid and refundable income taxes



9,010



9,654


Other



9,440



5,898


TOTAL CURRENT ASSETS



860,579



776,053










PROPERTY, PLANT AND EQUIPMENT








Land and structures



352,420



350,694


Revenue equipment



981,317



980,283


Service, office, and other equipment



259,201



251,085


Software



180,641



175,989


Leasehold improvements



17,226



16,931





1,790,805



1,774,982


Less allowances for depreciation and amortization



1,098,431



1,079,061





692,374



695,921










GOODWILL



299,008



300,337


INTANGIBLE ASSETS, NET



123,363



126,580


OPERATING RIGHT-OF-USE ASSETS



125,988



106,686


DEFERRED INCOME TAXES



5,324



5,470


OTHER LONG-TERM ASSETS



103,063



101,629


TOTAL ASSETS


$

2,209,699


$

2,112,676










LIABILITIES AND STOCKHOLDERS' EQUITY
















CURRENT LIABILITIES








Accounts payable


$

340,966


$

311,401


Income taxes payable



8,364



12,087


Accrued expenses



276,888



305,851


Current portion of long-term debt



89,766



50,615


Current portion of operating lease liabilities



24,127



22,740


TOTAL CURRENT LIABILITIES



740,111



702,694










LONG-TERM DEBT, less current portion



168,912



174,917


OPERATING LEASE LIABILITIES, less current portion



106,463



88,835


POSTRETIREMENT LIABILITIES, less current portion



16,710



16,733


OTHER LONG-TERM LIABILITIES



130,471



135,537


DEFERRED INCOME TAXES



63,860



64,893










STOCKHOLDERS' EQUITY








Common stock, $0.01 par value, authorized 70,000,000 shares;

      issued 2022: 29,384,711 shares; 2021: 29,359,957 shares



294



294


Additional paid-in capital



344,429



318,033


Retained earnings



868,905



801,314


   Treasury stock, at cost, 2022: 4,900,512 shares; 2021: 4,492,514 shares



(235,779)



(194,273)


Accumulated other comprehensive income



5,323



3,699


TOTAL STOCKHOLDERS' EQUITY



983,172



929,067


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$

2,209,699


$

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











Three Months Ended 




March 31




2022


2021




Unaudited




($ thousands)


 OPERATING ACTIVITIES








Net income


$

69,569


$

23,361


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








Depreciation and amortization



31,591



29,387


Amortization of intangibles



3,232



967


Share-based compensation expense



2,763



2,354


Provision for losses on accounts receivable



1,628



(96)


Change in deferred income taxes



(1,417)



(4,998)


Gain on sale of property and equipment and lease termination



(3,002)



(8,635)


Changes in operating assets and liabilities:








Receivables



(103,677)



(22,568)


Prepaid expenses



(2,858)



(2,582)


Other assets



(2,781)



(164)


Income taxes



(3,017)



6,376


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



14



567


Accounts payable, accrued expenses, and other liabilities



(3,298)



(1,435)


NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES



(11,253)



22,534










 INVESTING ACTIVITIES








Purchases of property, plant and equipment, net of financings



(19,471)



(9,588)


Proceeds from sale of property and equipment



5,334



10,079


Purchases of short-term investments



(12,339)



(18,130)


Proceeds from sale of short-term investments



23,590



24,418


Capitalization of internally developed software



(4,510)



(5,705)


NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES



(7,396)



1,074










 FINANCING ACTIVITIES








Borrowings under credit facilities



58,000




Payments on long-term debt



(32,967)



(17,387)


Net change in book overdrafts



955



(5,434)


Payment of common stock dividends



(1,978)



(2,037)


Purchases of treasury stock



(16,506)



(1,001)


Payments for tax withheld on share-based compensation



(1,367)



(161)


NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES



6,137



(26,020)










NET DECREASE IN CASH AND CASH EQUIVALENTS



(12,512)



(2,412)


Cash and cash equivalents at beginning of period



76,620



303,954


CASH AND CASH EQUIVALENTS AT END OF PERIOD


$

64,108


$

301,542










 NONCASH INVESTING ACTIVITIES








Equipment financed


$

8,113


$


Accruals for equipment received


$

712


$

233


Lease liabilities arising from obtaining right-of-use assets


$

25,473


$

1,959


 

ARCBEST CORPORATION
FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS
















Three Months Ended 




March 31




2022



2021




Unaudited




($ thousands, except percentages)


REVENUES













Asset-Based


$

705,311





$

556,292

















ArcBest(1)



595,284






252,336




FleetNet



78,378






59,163




Total Asset-Light



673,662






311,499

















Other and eliminations



(43,899)






(38,578)




Total consolidated revenues


$

1,335,074





$

829,213

















OPERATING EXPENSES













Asset-Based













Salaries, wages, and benefits


$

313,497


44.5

%


$

285,694


51.4

%

Fuel, supplies, and expenses



84,831


12.0




60,841


10.9


Operating taxes and licenses



12,493


1.8




12,248


2.2


Insurance



10,431


1.5




8,939


1.6


Communications and utilities



4,687


0.7




4,970


0.9


Depreciation and amortization



24,305


3.4




23,484


4.2


Rents and purchased transportation



102,985


14.6




75,588


13.6


Shared services



67,150


9.5




55,866


10.1


Gain on sale of property and equipment(2)



(2,695)


(0.4)




(8,695)


(1.6)


Innovative technology costs(3)



6,960


1.0




6,868


1.2


Other



633


0.1




434


0.1


Total Asset-Based



625,277


88.7

%



526,237


94.6

%














ArcBest(1)













Purchased transportation


$

508,380


85.4

%


$

210,995


83.6

%

Supplies and expenses



3,266


0.6




2,568


1.0


Depreciation and amortization(4)



5,180


0.9




2,386


1.0


Shared services



50,197


8.4




26,072


10.3


Other



7,145


1.2




2,050


0.8





574,168


96.5

%



244,071


96.7

%

FleetNet



76,661


97.8

%



58,140


98.3

%

Total Asset-Light



650,829






302,211

















Other and eliminations(5)



(35,960)






(31,426)




Total consolidated operating expenses


$

1,240,146


92.9

%


$

797,022


96.1

%














OPERATING INCOME













Asset-Based


$

80,034





$

30,055

















ArcBest(1)



21,116






8,265




FleetNet



1,717






1,023




Total Asset-Light



22,833






9,288

















Other and eliminations(5)



(7,939)






(7,152)




Total consolidated operating income


$

94,928





$

32,191










1) 

The 2022 period includes the operations of MoLo, which was acquired on November 1, 2021.

2) 

The 2021 period includes 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) 

"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, including innovative technology costs.

 

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 




March 31




2022


2021


ArcBest Corporation - Consolidated


(Unaudited)




($ thousands, except per share data)


Operating Income








Amounts on GAAP basis


$

94,928


$

32,191


Innovative technology costs, pre-tax(1)



9,686



7,667


Purchase accounting amortization(2)



3,213



937


Change in fair value of contingent consideration(3)



810




Non-GAAP amounts


$

108,637


$

40,795










Net Income








Amounts on GAAP basis


$

69,569


$

23,361


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



7,289



5,824


Purchase accounting amortization(2)



2,396



702


Change in fair value of contingent consideration(3)



604




Life insurance proceeds and changes in cash surrender value



793



(1,266)


Tax benefit from vested RSUs(4)



(870)



(135)


Non-GAAP amounts


$

79,781


$

28,486










Diluted Earnings Per Share








Amounts on GAAP basis


$

2.68


$

0.87


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



0.28



0.22


Purchase accounting amortization(2)



0.09



0.03


Change in fair value of contingent consideration(3)



0.02




Life insurance proceeds and changes in cash surrender value



0.03



(0.05)


Tax benefit from vested RSUs(4)



(0.03)



(0.01)


Non-GAAP amounts(5)


$

3.08


$

1.06








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. As previously disclosed, 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) 

The Company recognizes the tax impact for the vesting of share-based compensation resulting in excess tax expense (benefit).

5) 

Non-GAAP EPS is calculated in total and may not foot due to rounding.

 

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued

















Three Months Ended 




March 31




2022


2021


Segment Operating Income Reconciliations


(Unaudited)




($ thousands, except percentages)


Asset-Based Segment




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




Amounts on GAAP basis


$

80,034


88.7

%


$

30,055


94.6

%


Innovative technology costs, pre-tax(1)



6,960


(1.0)




6,868


(1.2)



Non-GAAP amounts


$

86,994


87.7

%


$

36,923


93.4

%






Asset-Light




ArcBest Segment




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




Amounts on GAAP basis


$

21,116


96.5

%


$

8,265


96.7

%


Purchase accounting amortization(2)



3,213


(0.5)




937


(0.4)



Change in fair value of contingent consideration(3)



810


(0.1)







Non-GAAP amounts


$

25,139


95.9

%


$

9,202


96.3

%






FleetNet Segment




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




Amounts on GAAP basis


$

1,717


97.8

%


$

1,023


98.3

%






Total Asset-Light




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




Amounts on GAAP basis


$

22,833


96.6

%


$

9,288


97.0

%


Purchase accounting amortization(2)



3,213


(0.5)




937


(0.3)



Change in fair value of contingent consideration(3)



810


(0.1)







Non-GAAP amounts


$

26,856


96.0

%


$

10,225


96.7

%






Other and Eliminations




Operating Loss ($)




Amounts on GAAP basis


$

(7,939)





$

(7,152)





Innovative technology costs, pre-tax(4)



2,726






799





Non-GAAP amounts


$

(5,213)





$

(6,353)











1)  

Represents costs associated with the freight handling pilot test program at ABF Freight.

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, as previously described in the footnotes to the ArcBest Corporation – Consolidated non-GAAP table.

4)  

Represents costs associated with initiative to optimize our performance through technological innovation, including costs related to our investment in human-centered remote operation software, and costs related to the freight handling pilot test program at ABF Freight.

 

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 March 31, 2022






Other


Income


Income









Operating


Income


Before Income


Tax


Net





Income


(Costs)


Taxes


Provision


Income


Tax Rate(5)

Amounts on GAAP basis


$

94,928


$

(2,659)


$

92,269


$

22,700


$

69,569


24.6

%

Innovative technology costs(1)



9,686



129



9,815



2,526



7,289


25.7


Purchase accounting amortization(2)



3,213





3,213



817



2,396


25.4


Change in fair value of contingent consideration(3)



810





810



206



604


25.4


Life insurance proceeds and changes in cash surrender value





793



793





793



Tax benefit from vested RSUs(4)









870



(870)



Non-GAAP amounts


$

108,637


$

(1,737)


$

106,900


$

27,119


$

79,781


25.4

%






















Three Months Ended March 31, 2021





Other


Income


Income








Operating


Income


Before Income


Tax


Net





Income


(Costs)


Taxes


Provision


Income


Tax Rate(5)

Amounts on GAAP basis


$

32,191


$

(844)


$

31,347


$

7,986


$

23,361


25.5

%

Innovative technology costs(1)



7,667



174



7,841



2,017



5,824


25.7


Purchase accounting amortization(2)



937





937



235



702


25.1


Life insurance proceeds and changes in cash surrender value





(1,266)



(1,266)





(1,266)



Tax benefit from vested RSUs(4)









135



(135)



Non-GAAP amounts


$

40,795


$

(1,936)


$

38,859


$

10,373


$

28,486


26.7

%







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, as previously described in the footnotes to the ArcBest Corporation – Consolidated non-GAAP table.

4) 

The Company recognizes the tax impact for the vesting of share-based compensation resulting in excess tax expense (benefit).

5) 

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.

 

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 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 




March 31




2022


2021




(Unaudited)


ArcBest Corporation - Consolidated Adjusted EBITDA


($ thousands)





Net Income


$

69,569


$

23,361


Interest and other related financing costs



1,939



2,428


Income tax provision



22,700



7,986


Depreciation and amortization(1)



34,823



30,354


Amortization of share-based compensation



2,763



2,354


Change in fair value of contingent consideration(2)



810




Consolidated Adjusted EBITDA


$

132,604


$

66,483








1) 

Includes amortization of intangibles associated with acquired businesses.

2) 

Represents change in fair value of the contingent consideration recorded for the MoLo acquisition, as previously described in the footnotes to the ArcBest Corporation – Consolidated non-GAAP table.

 











Three Months Ended 




March 31




2022


2021


Asset-Light Adjusted EBITDA


(Unaudited)




($ thousands)






ArcBest








Operating Income


$

21,116


$

8,265


Depreciation and amortization(3)



5,180



2,386


Change in fair value of contingent consideration(4)



810




Adjusted EBITDA


$

27,106


$

10,651






FleetNet




Operating Income


$

1,717


$

1,023


Depreciation and amortization(3)



427



415


Adjusted EBITDA


$

2,144


$

1,438






Total Asset-Light








Operating Income


$

22,833


$

9,288


Depreciation and amortization(3)



5,607



2,801


Change in fair value of contingent consideration(4)



810




Adjusted EBITDA


$

29,250


$

12,089








3) 

Includes amortization of intangibles associated with acquired businesses.

4) 

Represents change in fair value of the contingent consideration recorded for the MoLo acquisition, as previously described in the footnotes to the ArcBest Corporation – Consolidated non-GAAP table.

 

ARCBEST CORPORATION
OPERATING STATISTICS














Three Months Ended 





March 31





2022


2021


% Change





(Unaudited)



Asset-Based






















Workdays



63.5



63.0
















Billed Revenue(1) / CWT


$

43.70


$

36.09


21.1%














Billed Revenue(1) / Shipment


$

578.80


$

462.22


25.2%














Shipments



1,227,224



1,215,416


1.0%














Shipments / Day



19,326



19,292


0.2%














Tonnage (Tons)



812,730



778,415


4.4%














Tons / Day



12,799



12,356


3.6%














Pounds / Shipment



1,325



1,281


3.4%














Average Length of Haul (Miles)



1,079



1,091


(1.1%)




















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 



March 31, 2022



(Unaudited)

ArcBest(2)










Revenue / Shipment



32.3%







Shipments / Day



83.8%







2) 

Statistical data for the three months ended March 31, 2022 include the operations of MoLo, which was acquired on November 1, 2021. Statistical data related to managed transportation solutions transactions are not included in the presentation of operating statistics for the ArcBest segment for the periods presented.

 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/arcbest-announces-first-quarter-2022-results-301535984.html

SOURCE ArcBest

FAQ

What were ArcBest's Q1 2022 revenue figures?

ArcBest reported Q1 2022 revenue of $1.3 billion, a 61% increase compared to Q1 2021.

How much did ArcBest earn in net income during Q1 2022?

ArcBest's net income for Q1 2022 was $69.6 million, or $2.68 per diluted share.

What impact did the acquisition of MoLo have on ArcBest's financials?

The acquisition of MoLo contributed to strong revenue growth and record profitability in the Asset-Light segment for Q1 2022.

What is ArcBest's plan for shareholder returns following the Q1 results?

ArcBest plans to increase shareholder returns by expanding its share repurchase program and raising its dividend.

What are the future growth plans announced by ArcBest?

ArcBest aims to continue investing in technology and talent to drive future revenue growth and efficiency.

ArcBest Corporation

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