FORT SMITH, Ark., Aug. 2, 2021 /PRNewswire/
-- ArcBest® (Nasdaq: ARCB), a leader in supply
chain logistics, today reported second quarter 2021 revenue of
$949.0 million compared to second
quarter 2020 revenue of $627.4
million. ArcBest's second quarter 2021 operating
income was $74.3 million and net
income was $61.0 million, or
$2.27 per diluted share compared to
second quarter 2020 operating income of $20.4 million and net income of $15.9 million, or $0.61 per diluted share.
Excluding certain items in both periods as identified in the
attached reconciliation tables, non-GAAP operating income was
$74.8 million in second quarter 2021
compared to second quarter 2020 operating income of $25.1 million. On a non-GAAP basis, net
income was $53.1 million, or
$1.97 per diluted share in
second quarter 2021 compared to second quarter 2020 net income of
$17.6 million, or $0.67 per diluted share.
"We're very pleased to report record results for the second
consecutive quarter," said Judy R.
McReynolds, ArcBest chairman, president and CEO. "Our
strong results for the first half of 2021 reflect our tireless
execution in a period of extremely tight capacity and high demand.
We put the customer at the center of everything we do, and we're
seeing our approach pay off as we work alongside shippers and
capacity providers to solve their complex challenges."
1.
|
U.S. Generally
Accepted Accounting Principles
|
Second Quarter Results of Operations Comparisons
Asset-Based
Second Quarter 2021 Versus Second Quarter 2020
- Revenue of $652.8 million
compared to $460.1 million, a per-day
increase of 41.9 percent.
- Total tonnage per day increase of 22.7 percent, with
double-digit percentage increases in both LTL-rated tonnage and
TL-rated spot shipment tonnage moving in the Asset-Based
network.
- Total shipments per day increase of 13.5 percent including a
13.7 percent increase in LTL-rated shipments per day and an
increase of 10.8 percent in LTL-rated weight per shipment.
- Total billed revenue per hundredweight increased 15.4 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 mid-single digits.
- Operating income of $63.9 million
and an operating ratio of 90.2 percent compared to the prior year
quarter operating income of $21.0
million and an operating ratio of 95.4 percent. On a
non-GAAP basis, operating income of $71.4
million and an operating ratio of 89.0 percent compared to
the prior year quarter operating income of $25.8 million and an operating ratio of 94.4
percent.
ArcBest's Asset-Based business continued to benefit from
increasing customer demand and a solid pricing
environment that contributed to record-setting revenue and
profits. This quarter's results compared favorably to the
second quarter of 2020 which was significantly impacted by the
COVID-19 pandemic. Considering the strength of business from
core customers, along with unseasonable demand for household goods
moving services which was earlier in the year than normal,
Asset-Based shipment mix was managed for customer service levels,
while optimizing revenue. In response to the need for
increased use of local and linehaul purchased transportation to
supplement the Asset-Based network and meet customers' needs,
second quarter hiring initiatives were successful and should
produce future benefits.
Asset-Light‡
Second Quarter 2021 Versus Second Quarter 2020
- Revenue of $330.3 million
compared to $197.9 million, a per-day
increase of 66.9 percent.
- Operating income of $16.3 million
compared to the prior year quarter operating income of $2.1 million. Operating income includes a
$6.9 million gain on the sale of the
labor services portion of the Asset-Light moving business. Non-GAAP
operating income, as detailed in the attached reconciliation
tables, excludes the gain on the sale of the moving services
subsidiary and totaled $9.3 million
in second quarter 2021.
- Adjusted earnings before interest, taxes, depreciation and
amortization ("Adjusted EBITDA") of $19.0
million compared to the prior year quarter Adjusted EBITDA
of $4.9 million, as detailed in the
attached reconciliation tables.
Solid customer demand and higher market rates resulting from
continued tightness in available truckload capacity translated into
strong second quarter revenue growth in the ArcBest segment. The
increased need for expedite service and managed logistics
solutions, along with new account growth, contributed to higher
shipment levels and profitability. The operating income
improvement reflects higher revenue, partially offset by
investments in technology and personnel associated with shipment
growth. ArcBest continued to benefit from strong relationships with
carrier partners to meet customers' needs in a tight
market.
An increase in revenue per event combined with an increase in
total events contributed to total revenue and profitability growth
for FleetNet.
Closing Comments
"We are experiencing a strong start to 2021 and I'm proud of the
work our leaders and employees are doing on behalf of our customers
as their businesses normalize," McReynolds said. "Providing
assured capacity is a shared mindset of employees across our
organization."
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 2021 second quarter results. The call will be
today, Monday, August 2, at
9:30 a.m. EDT (8:30 a.m. CDT). Interested parties are invited to
listen by calling (800) 926-9871. Following the call, a
recorded playback will be available through the end of the day on
September 15, 2021. To listen to the
playback, dial (800) 633–8284 or (402) 977–9140 (for
international callers). The conference call ID for the playback is
21995988. The conference call and playback can also be accessed,
through September 15, 2021, on
ArcBest's website at arcb.com.
About ArcBest
ArcBest® (Nasdaq: ARCB) is a leading logistics
company with creative problem solvers who deliver innovative
solutions for our customers' supply chain needs. We'll find a
way to deliver knowledge, expertise and a can-do attitude with
every shipment and supply chain solution, household move or vehicle
repair. At ArcBest, we're More Than Logistics®.
For more information, visit arcb.com.
The following is a "safe harbor" statement under the Private
Securities Litigation Reform Act of 1995: Certain
statements and information in this press release concerning results
for the three months ended June 30,
2021 may constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
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: widespread outbreak of an illness or
disease, including the COVID-19 pandemic and its effects, 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; 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; maintaining our corporate
reputation and intellectual property rights; 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; 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
Title: Vice President – Investor Relations
Phone: 479-785-6200
Email: dhumphrey@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
|
|
Six Months Ended
|
|
|
|
June 30
|
|
June 30
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
(Unaudited)
|
|
|
|
($ thousands, except share and
per share data)
|
|
REVENUES
|
|
$
|
948,973
|
|
$
|
627,370
|
|
$
|
1,778,186
|
|
$
|
1,328,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
874,674
|
|
|
606,945
|
|
|
1,671,696
|
|
|
1,300,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
74,299
|
|
|
20,425
|
|
|
106,490
|
|
|
28,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(COSTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income
|
|
|
322
|
|
|
991
|
|
|
714
|
|
|
2,366
|
|
Interest and other
related financing costs
|
|
|
(2,274)
|
|
|
(3,378)
|
|
|
(4,702)
|
|
|
(6,325)
|
|
Other, net
|
|
|
1,111
|
|
|
2,696
|
|
|
2,303
|
|
|
(1,166)
|
|
|
|
|
(841)
|
|
|
309
|
|
|
(1,685)
|
|
|
(5,125)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
|
|
73,458
|
|
|
20,734
|
|
|
104,805
|
|
|
23,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
PROVISION
|
|
|
12,477
|
|
|
4,854
|
|
|
20,463
|
|
|
5,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$
|
60,981
|
|
$
|
15,880
|
|
$
|
84,342
|
|
$
|
17,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.38
|
|
$
|
0.62
|
|
$
|
3.30
|
|
$
|
0.70
|
|
Diluted
|
|
$
|
2.27
|
|
$
|
0.61
|
|
$
|
3.13
|
|
$
|
0.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE COMMON
SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
25,586,353
|
|
|
25,463,559
|
|
|
25,522,453
|
|
|
25,468,624
|
|
Diluted
|
|
|
26,910,796
|
|
|
26,217,957
|
|
|
26,926,133
|
|
|
26,252,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH DIVIDENDS
DECLARED PER COMMON SHARE
|
|
$
|
0.08
|
|
$
|
0.08
|
|
$
|
0.16
|
|
$
|
0.16
|
|
ARCBEST
CORPORATION
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
June 30
|
|
December 31
|
|
|
|
2021
|
|
2020
|
|
|
|
(Unaudited)
|
|
Note
|
|
|
|
($ thousands, except share data)
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
362,619
|
|
$
|
303,954
|
|
Short-term
investments
|
|
|
59,967
|
|
|
65,408
|
|
Accounts receivable,
less allowances (2021 - $7,396; 2020 - $7,851)
|
|
|
360,498
|
|
|
320,870
|
|
Other accounts
receivable, less allowances (2021 - $667; 2020 - $660)
|
|
|
13,284
|
|
|
14,343
|
|
Prepaid
expenses
|
|
|
36,355
|
|
|
37,774
|
|
Prepaid and refundable
income taxes
|
|
|
5,871
|
|
|
11,397
|
|
Other
|
|
|
4,937
|
|
|
4,422
|
|
TOTAL CURRENT
ASSETS
|
|
|
843,531
|
|
|
758,168
|
|
|
|
|
|
|
|
|
|
PROPERTY, PLANT
AND EQUIPMENT
|
|
|
|
|
|
|
|
Land and
structures
|
|
|
345,829
|
|
|
342,178
|
|
Revenue
equipment
|
|
|
933,264
|
|
|
916,760
|
|
Service, office, and
other equipment
|
|
|
239,462
|
|
|
233,810
|
|
Software
|
|
|
170,528
|
|
|
163,193
|
|
Leasehold
improvements
|
|
|
15,835
|
|
|
15,156
|
|
|
|
|
1,704,918
|
|
|
1,671,097
|
|
Less allowances for
depreciation and amortization
|
|
|
1,038,974
|
|
|
992,407
|
|
|
|
|
665,944
|
|
|
678,690
|
|
|
|
|
|
|
|
|
|
GOODWILL
|
|
|
86,368
|
|
|
88,320
|
|
INTANGIBLE ASSETS,
NET
|
|
|
53,084
|
|
|
54,981
|
|
OPERATING
RIGHT-OF-USE ASSETS
|
|
|
109,860
|
|
|
115,195
|
|
DEFERRED INCOME
TAXES
|
|
|
6,419
|
|
|
6,158
|
|
OTHER LONG-TERM
ASSETS
|
|
|
76,267
|
|
|
77,496
|
|
|
|
$
|
1,841,473
|
|
$
|
1,779,008
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
204,124
|
|
$
|
170,898
|
|
Income taxes
payable
|
|
|
7,357
|
|
|
316
|
|
Accrued
expenses
|
|
|
260,185
|
|
|
246,746
|
|
Current portion of
long-term debt
|
|
|
66,644
|
|
|
67,105
|
|
Current portion of
operating lease liabilities
|
|
|
21,950
|
|
|
21,482
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
560,260
|
|
|
506,547
|
|
|
|
|
|
|
|
|
|
LONG-TERM DEBT,
less current portion
|
|
|
171,075
|
|
|
217,119
|
|
OPERATING LEASE
LIABILITIES, less current portion
|
|
|
92,811
|
|
|
97,839
|
|
POSTRETIREMENT
LIABILITIES, less current portion
|
|
|
18,514
|
|
|
18,555
|
|
OTHER LONG-TERM
LIABILITIES
|
|
|
35,722
|
|
|
37,948
|
|
DEFERRED INCOME
TAXES
|
|
|
64,957
|
|
|
72,407
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
Common stock, $0.01 par
value, authorized 70,000,000 shares;
issued 2021: 29,317,699 shares;
2020: 29,045,309 shares
|
|
|
293
|
|
|
290
|
|
Additional paid-in
capital
|
|
|
338,263
|
|
|
342,354
|
|
Retained
earnings
|
|
|
676,179
|
|
|
595,932
|
|
Treasury
stock, at cost, 2021: 3,783,227 shares; 2020: 3,656,938
shares
|
|
|
(119,273)
|
|
|
(111,173)
|
|
Accumulated other
comprehensive income
|
|
|
2,672
|
|
|
1,190
|
|
TOTAL STOCKHOLDERS'
EQUITY
|
|
|
898,134
|
|
|
828,593
|
|
|
|
$
|
1,841,473
|
|
$
|
1,779,008
|
|
|
Note: The
balance sheet at December 31, 2020 has been derived from the
audited financial statements at that date but does not include all
of the information and footnotes required by generally accepted
accounting principles for complete financial statements.
|
ARCBEST
CORPORATION
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
June 30
|
|
|
|
2021
|
|
2020
|
|
|
|
Unaudited
|
|
|
|
($ thousands)
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
Net income
|
|
$
|
84,342
|
|
$
|
17,782
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
58,709
|
|
|
56,140
|
|
Amortization of
intangibles
|
|
|
1,927
|
|
|
1,959
|
|
Pension settlement
expense
|
|
|
—
|
|
|
89
|
|
Share-based
compensation expense
|
|
|
5,678
|
|
|
5,071
|
|
Provision for losses
on accounts receivable
|
|
|
(334)
|
|
|
999
|
|
Change in deferred
income taxes
|
|
|
(7,612)
|
|
|
(5,170)
|
|
Gain on sale of
property and equipment and lease termination
|
|
|
(8,408)
|
|
|
(3,581)
|
|
Gain on sale of
subsidiaries
|
|
|
(6,923)
|
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Receivables
|
|
|
(37,745)
|
|
|
9,626
|
|
Prepaid
expenses
|
|
|
1,419
|
|
|
1,444
|
|
Other
assets
|
|
|
25
|
|
|
4,358
|
|
Income
taxes
|
|
|
12,275
|
|
|
8,413
|
|
Operating right-of-use
assets and lease liabilities, net
|
|
|
761
|
|
|
(230)
|
|
Accounts payable,
accrued expenses, and other liabilities
|
|
|
41,786
|
|
|
(14,833)
|
|
NET CASH PROVIDED
BY OPERATING ACTIVITIES
|
|
|
145,900
|
|
|
82,067
|
|
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment, net of financings
|
|
|
(25,395)
|
|
|
(16,209)
|
|
Proceeds from sale of
property and equipment
|
|
|
10,864
|
|
|
7,670
|
|
Proceeds from sale of
subsidiaries
|
|
|
9,013
|
|
|
—
|
|
Purchases of short-term
investments
|
|
|
(43,690)
|
|
|
(97,493)
|
|
Proceeds from sale of
short-term investments
|
|
|
49,165
|
|
|
46,725
|
|
Capitalization of
internally developed software
|
|
|
(9,477)
|
|
|
(6,495)
|
|
NET CASH USED IN
INVESTING ACTIVITIES
|
|
|
(9,520)
|
|
|
(65,802)
|
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
Borrowings under credit
facilities
|
|
|
—
|
|
|
180,000
|
|
Borrowings under
accounts receivable securitization program
|
|
|
—
|
|
|
45,000
|
|
Payments on long-term
debt
|
|
|
(54,643)
|
|
|
(29,185)
|
|
Net change in book
overdrafts
|
|
|
(922)
|
|
|
615
|
|
Deferred financing
costs
|
|
|
(189)
|
|
|
—
|
|
Payment of common stock
dividends
|
|
|
(4,095)
|
|
|
(4,082)
|
|
Purchases of treasury
stock
|
|
|
(8,100)
|
|
|
(3,162)
|
|
Payments for tax
withheld on share-based compensation
|
|
|
(9,766)
|
|
|
(1,070)
|
|
NET CASH PROVIDED
BY (USED IN) FINANCING ACTIVITIES
|
|
|
(77,715)
|
|
|
188,116
|
|
|
|
|
|
|
|
|
|
NET INCREASE IN
CASH AND CASH EQUIVALENTS
|
|
|
58,665
|
|
|
204,381
|
|
Cash and cash
equivalents at beginning of period
|
|
|
303,954
|
|
|
201,909
|
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
|
$
|
362,619
|
|
$
|
406,290
|
|
|
|
|
|
|
|
|
|
NONCASH
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Equipment
financed
|
|
$
|
8,138
|
|
$
|
13,566
|
|
Accruals for equipment
received
|
|
$
|
5,984
|
|
$
|
857
|
|
Lease liabilities
arising from obtaining right-of-use assets
|
|
$
|
6,051
|
|
$
|
23,727
|
|
ARCBEST
CORPORATION
|
FINANCIAL
STATEMENT OPERATING SEGMENT DATA AND OPERATING
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30
|
|
|
June 30
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
|
Unaudited
|
|
|
|
($ thousands,
except percentages)
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-Based
|
|
$
|
652,832
|
|
|
|
|
$
|
460,070
|
|
|
|
|
$
|
1,209,124
|
|
|
|
|
$
|
975,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ArcBest
|
|
|
270,748
|
|
|
|
|
|
151,467
|
|
|
|
|
|
523,084
|
|
|
|
|
|
316,242
|
|
|
|
FleetNet
|
|
|
59,547
|
|
|
|
|
|
46,440
|
|
|
|
|
|
118,710
|
|
|
|
|
|
98,879
|
|
|
|
Total
Asset-Light
|
|
|
330,295
|
|
|
|
|
|
197,907
|
|
|
|
|
|
641,794
|
|
|
|
|
|
415,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other and
eliminations
|
|
|
(34,154)
|
|
|
|
|
|
(30,607)
|
|
|
|
|
|
(72,732)
|
|
|
|
|
|
(62,135)
|
|
|
|
Total consolidated
revenues
|
|
$
|
948,973
|
|
|
|
|
$
|
627,370
|
|
|
|
|
$
|
1,778,186
|
|
|
|
|
$
|
1,328,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-Based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages, and
benefits
|
|
$
|
302,370
|
|
46.3
|
%
|
|
$
|
248,995
|
|
54.1
|
%
|
|
$
|
588,064
|
|
48.6
|
%
|
|
$
|
532,833
|
|
54.6
|
%
|
Fuel, supplies, and
expenses
|
|
|
64,689
|
|
9.9
|
|
|
|
45,675
|
|
9.9
|
|
|
|
125,530
|
|
10.4
|
|
|
|
106,900
|
|
11.0
|
|
Operating taxes and
licenses
|
|
|
12,303
|
|
1.9
|
|
|
|
11,629
|
|
2.5
|
|
|
|
24,551
|
|
2.0
|
|
|
|
24,423
|
|
2.5
|
|
Insurance
|
|
|
9,454
|
|
1.4
|
|
|
|
8,247
|
|
1.8
|
|
|
|
18,393
|
|
1.5
|
|
|
|
16,071
|
|
1.6
|
|
Communications and
utilities
|
|
|
4,663
|
|
0.7
|
|
|
|
4,342
|
|
1.0
|
|
|
|
9,633
|
|
0.8
|
|
|
|
9,053
|
|
0.9
|
|
Depreciation and
amortization
|
|
|
23,308
|
|
3.6
|
|
|
|
23,327
|
|
5.1
|
|
|
|
46,792
|
|
3.9
|
|
|
|
46,597
|
|
4.8
|
|
Rents and purchased
transportation
|
|
|
95,082
|
|
14.6
|
|
|
|
46,152
|
|
10.0
|
|
|
|
170,670
|
|
14.1
|
|
|
|
101,922
|
|
10.4
|
|
Shared
services
|
|
|
69,372
|
|
10.6
|
|
|
|
45,605
|
|
9.9
|
|
|
|
125,238
|
|
10.4
|
|
|
|
94,490
|
|
9.7
|
|
Gain on sale of
property and equipment(1)
|
|
|
71
|
|
—
|
|
|
|
(1,175)
|
|
(0.2)
|
|
|
|
(8,624)
|
|
(0.7)
|
|
|
|
(3,339)
|
|
(0.3)
|
|
Innovative technology
costs(2)
|
|
|
7,532
|
|
1.2
|
|
|
|
4,789
|
|
1.0
|
|
|
|
14,400
|
|
1.2
|
|
|
|
9,322
|
|
1.0
|
|
Other
|
|
|
77
|
|
—
|
|
|
|
1,448
|
|
0.3
|
|
|
|
511
|
|
—
|
|
|
|
3,235
|
|
0.3
|
|
Total
Asset-Based
|
|
|
588,921
|
|
90.2
|
%
|
|
|
439,034
|
|
95.4
|
%
|
|
|
1,115,158
|
|
92.2
|
%
|
|
|
941,507
|
|
96.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ArcBest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
transportation
|
|
|
226,603
|
|
83.7
|
%
|
|
|
125,090
|
|
82.6
|
%
|
|
|
437,598
|
|
83.6
|
%
|
|
|
262,272
|
|
82.9
|
%
|
Supplies and
expenses
|
|
|
2,476
|
|
0.9
|
|
|
|
1,989
|
|
1.3
|
|
|
|
5,044
|
|
1.0
|
|
|
|
4,269
|
|
1.3
|
|
Depreciation and
amortization(3)
|
|
|
2,366
|
|
0.9
|
|
|
|
2,449
|
|
1.6
|
|
|
|
4,752
|
|
0.9
|
|
|
|
4,919
|
|
1.6
|
|
Shared
services
|
|
|
29,078
|
|
10.7
|
|
|
|
18,840
|
|
12.4
|
|
|
|
55,150
|
|
10.5
|
|
|
|
40,567
|
|
12.8
|
|
Gain on sale of
subsidiaries(4)
|
|
|
(6,923)
|
|
(2.6)
|
|
|
|
—
|
|
—
|
|
|
|
(6,923)
|
|
(1.3)
|
|
|
|
—
|
|
—
|
|
Other
|
|
|
2,021
|
|
0.8
|
|
|
|
1,796
|
|
1.2
|
|
|
|
4,071
|
|
0.8
|
|
|
|
4,321
|
|
1.4
|
|
|
|
|
255,621
|
|
94.4
|
%
|
|
|
150,164
|
|
99.1
|
%
|
|
|
499,692
|
|
95.5
|
%
|
|
|
316,348
|
|
100.0
|
%
|
FleetNet
|
|
|
58,409
|
|
98.1
|
%
|
|
|
45,658
|
|
98.3
|
%
|
|
|
116,549
|
|
98.2
|
%
|
|
|
97,057
|
|
98.2
|
%
|
Total
Asset-Light
|
|
|
314,030
|
|
|
|
|
|
195,822
|
|
|
|
|
|
616,241
|
|
|
|
|
|
413,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other and
eliminations(5)
|
|
|
(28,277)
|
|
|
|
|
|
(27,911)
|
|
|
|
|
|
(59,703)
|
|
|
|
|
|
(54,387)
|
|
|
|
Total consolidated
operating expenses
|
|
$
|
874,674
|
|
92.2
|
%
|
|
$
|
606,945
|
|
96.7
|
%
|
|
$
|
1,671,696
|
|
94.0
|
%
|
|
$
|
1,300,525
|
|
97.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
(LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-Based
|
|
$
|
63,911
|
|
|
|
|
$
|
21,036
|
|
|
|
|
$
|
93,966
|
|
|
|
|
$
|
34,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ArcBest
|
|
|
15,127
|
|
|
|
|
|
1,303
|
|
|
|
|
|
23,392
|
|
|
|
|
|
(106)
|
|
|
|
FleetNet
|
|
|
1,138
|
|
|
|
|
|
782
|
|
|
|
|
|
2,161
|
|
|
|
|
|
1,822
|
|
|
|
Total
Asset-Light
|
|
|
16,265
|
|
|
|
|
|
2,085
|
|
|
|
|
|
25,553
|
|
|
|
|
|
1,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other and
eliminations(5)
|
|
|
(5,877)
|
|
|
|
|
|
(2,696)
|
|
|
|
|
|
(13,029)
|
|
|
|
|
|
(7,748)
|
|
|
|
Total consolidated
operating income
|
|
$
|
74,299
|
|
|
|
|
$
|
20,425
|
|
|
|
|
$
|
106,490
|
|
|
|
|
$
|
28,244
|
|
|
|
|
|
|
|
1)
|
The six months ended
June 30, 2021 includes an $8.6 million gain on the sale of an
unutilized service center property.
|
2)
|
Represents costs
associated with the freight handling pilot test program at ABF
Freight.
|
3)
|
Depreciation and
amortization consists primarily of amortization of intangibles,
including customer relationships, and software associated with
acquired businesses.
|
4)
|
Gain recognized for
the three and six months ended June 30, 2021 relates to the sale of
the labor services portion of the ArcBest segment's moving business
in May 2021.
|
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 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
|
|
Six Months Ended
|
|
|
June 30
|
|
|
June 30
|
|
|
|
2021
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
ArcBest
Corporation - Consolidated
|
|
(Unaudited)
|
|
|
|
($ thousands,
except per share data)
|
|
Operating
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
74,299
|
|
$
|
20,425
|
|
$
|
106,490
|
|
$
|
28,244
|
|
Innovative technology
costs, pre-tax(1)
|
|
|
7,432
|
|
|
4,699
|
|
|
14,342
|
|
|
9,299
|
|
Gain on sale of
subsidiaries, pre-tax(2)
|
|
|
(6,923)
|
|
|
—
|
|
|
(6,923)
|
|
|
—
|
|
Non-GAAP
amounts
|
|
$
|
74,808
|
|
$
|
25,124
|
|
$
|
113,909
|
|
$
|
37,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
60,981
|
|
$
|
15,880
|
|
$
|
84,342
|
|
$
|
17,782
|
|
Innovative technology
costs, after-tax (includes related financing
costs)(1)
|
|
|
5,642
|
|
|
3,637
|
|
|
10,903
|
|
|
7,207
|
|
Gain on sale of
subsidiaries, after-tax(2)
|
|
|
(5,437)
|
|
|
—
|
|
|
(5,437)
|
|
|
—
|
|
Nonunion pension
expense, including settlement expense,
after-tax(3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66
|
|
Life insurance proceeds
and changes in cash surrender value
|
|
|
(1,248)
|
|
|
(2,560)
|
|
|
(2,514)
|
|
|
1,245
|
|
Tax expense (benefit)
from vested RSUs(4)
|
|
|
(6,796)
|
|
|
659
|
|
|
(6,931)
|
|
|
679
|
|
Non-GAAP
amounts
|
|
$
|
53,142
|
|
$
|
17,616
|
|
$
|
80,363
|
|
$
|
26,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
2.27
|
|
$
|
0.61
|
|
$
|
3.13
|
|
$
|
0.68
|
|
Innovative technology
costs, after-tax (includes related financing
costs)(1)
|
|
|
0.21
|
|
|
0.14
|
|
|
0.40
|
|
|
0.27
|
|
Gain on sale of
subsidiaries, after-tax(2)
|
|
|
(0.20)
|
|
|
—
|
|
|
(0.20)
|
|
|
—
|
|
Nonunion pension
expense, including settlement expense,
after-tax(3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Life insurance proceeds
and changes in cash surrender value
|
|
|
(0.05)
|
|
|
(0.10)
|
|
|
(0.09)
|
|
|
0.05
|
|
Tax expense (benefit)
from vested RSUs(4)
|
|
|
(0.25)
|
|
|
0.03
|
|
|
(0.26)
|
|
|
0.03
|
|
Non-GAAP
amounts(5)
|
|
$
|
1.97
|
|
$
|
0.67
|
|
$
|
2.98
|
|
$
|
1.03
|
|
|
|
|
|
1)
|
Represents costs
associated with the freight handling pilot test program at ABF
Freight.
|
2)
|
Gain recognized for
the three and six months ended June 30, 2021 relates to the sale of
the labor services portion of ArcBest segment's moving business in
May 2021.
|
3)
|
For the six months
ended June 30, 2020, represents pension settlement expense related
to the Company's supplemental benefit plan.
|
4)
|
The Company
recognized the tax impact for the vesting of share-based
compensation resulting in excess tax expense (benefit) during the
three and six months ended June 30, 2021 and 2020.
|
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
|
|
Six Months Ended
|
|
|
|
June 30
|
|
June 30
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Segment Operating
Income Reconciliations
|
|
(Unaudited)
|
|
|
|
($ thousands,
except percentages)
|
|
Asset-Based
Segment
|
|
|
|
|
|
Operating Income
($) and Operating Ratio (% of revenues)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
63,911
|
|
90.2
|
%
|
|
$
|
21,036
|
|
95.4
|
%
|
|
$
|
93,966
|
|
92.2
|
%
|
|
$
|
34,276
|
|
96.5
|
%
|
|
Innovative technology
costs, pre-tax(1)
|
|
|
7,532
|
|
(1.2)
|
|
|
|
4,789
|
|
(1.0)
|
|
|
|
14,400
|
|
(1.2)
|
|
|
|
9,322
|
|
(1.0)
|
|
|
Non-GAAP
amounts
|
|
$
|
71,443
|
|
89.0
|
%
|
|
$
|
25,825
|
|
94.4
|
%
|
|
$
|
108,366
|
|
91.0
|
%
|
|
$
|
43,598
|
|
95.5
|
%
|
|
|
|
|
|
|
|
Asset-Light
|
|
|
|
|
|
|
|
|
|
|
|
ArcBest
Segment
|
|
|
|
|
|
Operating Income
(Loss) ($) and Operating Ratio (% of revenues)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
15,127
|
|
94.4
|
%
|
|
$
|
1,303
|
|
99.1
|
%
|
|
$
|
23,392
|
|
95.5
|
%
|
|
$
|
(106)
|
|
100.0
|
%
|
|
Gain on sale of
subsidiaries, pre-tax(2)
|
|
|
(6,923)
|
|
2.6
|
|
|
|
—
|
|
—
|
|
|
|
(6,923)
|
|
1.3
|
|
|
|
—
|
|
—
|
|
|
Non-GAAP
amounts
|
|
$
|
8,204
|
|
97.0
|
%
|
|
$
|
1,303
|
|
99.1
|
%
|
|
$
|
16,469
|
|
96.8
|
%
|
|
$
|
(106)
|
|
100.0
|
%
|
|
|
|
|
|
|
|
FleetNet
Segment
|
|
|
|
|
|
Operating Income
($) and Operating Ratio (% of revenues)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
1,138
|
|
98.1
|
%
|
|
$
|
782
|
|
98.3
|
%
|
|
$
|
2,161
|
|
98.2
|
%
|
|
$
|
1,822
|
|
98.2
|
%
|
|
|
|
|
|
|
|
Total
Asset-Light
|
|
|
|
|
|
Operating Income
(Loss) ($) and Operating Ratio (% of revenues)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
16,265
|
|
95.1
|
%
|
|
$
|
2,085
|
|
98.9
|
%
|
|
$
|
25,553
|
|
96.0
|
%
|
|
$
|
1,716
|
|
99.6
|
%
|
|
Gain on sale of
subsidiaries, pre-tax(2)
|
|
|
(6,923)
|
|
2.1
|
|
|
|
—
|
|
—
|
|
|
|
(6,923)
|
|
1.1
|
|
|
|
—
|
|
—
|
|
|
Non-GAAP
amounts
|
|
$
|
9,342
|
|
97.2
|
%
|
|
$
|
2,085
|
|
98.9
|
%
|
|
$
|
18,630
|
|
97.1
|
%
|
|
$
|
1,716
|
|
99.6
|
%
|
|
|
|
|
|
|
|
Other and
Eliminations
|
|
|
|
|
|
Operating Loss
($)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts on GAAP
basis
|
|
$
|
(5,877)
|
|
|
|
|
$
|
(2,696)
|
|
|
|
|
$
|
(13,029)
|
|
|
|
|
$
|
(7,748)
|
|
|
|
|
Innovative technology
costs, pre-tax(1)
|
|
|
(100)
|
|
|
|
|
|
(90)
|
|
|
|
|
|
(58)
|
|
|
|
|
|
(23)
|
|
|
|
|
Non-GAAP
amounts
|
|
$
|
(5,977)
|
|
|
|
|
$
|
(2,786)
|
|
|
|
|
$
|
(13,087)
|
|
|
|
|
$
|
(7,771)
|
|
|
|
|
|
|
|
|
1)
|
Represents costs
associated with the freight handling pilot test program at ABF
Freight.
|
2)
|
Gain recognized for
the three and six months ended June 30, 2021 relates to the sale of
the labor services portion of the ArcBest segment's moving business
in May 2021.
|
ARCBEST
CORPORATION
|
RECONCILIATIONS OF
GAAP TO NON-GAAP FINANCIAL MEASURES – Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate
Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ArcBest
Corporation - Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ thousands,
except percentages)
|
|
Three
Months Ended June 30, 2021
|
|
|
|
|
|
Other
|
|
Income
|
|
Income
|
|
|
|
|
|
|
|
|
Operating
|
|
Income
|
|
Before
Income
|
|
Tax
|
|
Net
|
|
|
|
|
Income
|
|
(Costs)
|
|
Taxes
|
|
Provision
|
|
Income
|
|
Tax
Rate(4)
|
Amounts on GAAP
basis
|
|
$
|
74,299
|
|
$
|
(841)
|
|
$
|
73,458
|
|
$
|
12,477
|
|
$
|
60,981
|
|
17.0
|
%
|
Innovative technology
costs(1)
|
|
|
7,432
|
|
|
166
|
|
|
7,598
|
|
|
1,956
|
|
|
5,642
|
|
25.7
|
|
Gain on sale of
subsidiaries(2)
|
|
|
(6,923)
|
|
|
—
|
|
|
(6,923)
|
|
|
(1,486)
|
|
|
(5,437)
|
|
(21.5)
|
|
Life insurance proceeds
and changes in cash surrender
value
|
|
|
—
|
|
|
(1,248)
|
|
|
(1,248)
|
|
|
—
|
|
|
(1,248)
|
|
—
|
|
Tax benefit from vested
RSUs(3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,796
|
|
|
(6,796)
|
|
—
|
|
Non-GAAP
amounts
|
|
$
|
74,808
|
|
$
|
(1,923)
|
|
$
|
72,885
|
|
$
|
19,743
|
|
$
|
53,142
|
|
27.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
2021
|
|
|
|
|
Other
|
|
Income
Before
|
|
Income
|
|
|
|
|
|
|
|
|
Operating
|
|
Income
|
|
Income
|
|
Tax
|
|
Net
|
|
|
|
|
Income
|
|
(Costs)
|
|
Taxes
|
|
Provision
|
|
Income
|
|
Tax
Rate(4)
|
Amounts on GAAP
basis
|
|
$
|
106,490
|
|
$
|
(1,685)
|
|
$
|
104,805
|
|
$
|
20,463
|
|
$
|
84,342
|
|
19.5
|
%
|
Innovative technology
costs(1)
|
|
|
14,342
|
|
|
340
|
|
|
14,682
|
|
|
3,779
|
|
|
10,903
|
|
25.7
|
|
Gain on sale of
subsidiaries(2)
|
|
|
(6,923)
|
|
|
—
|
|
|
(6,923)
|
|
|
(1,486)
|
|
|
(5,437)
|
|
(21.5)
|
|
Life insurance proceeds
and changes in cash surrender
value
|
|
|
—
|
|
|
(2,514)
|
|
|
(2,514)
|
|
|
—
|
|
|
(2,514)
|
|
—
|
|
Tax expense from vested
RSUs(3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,931
|
|
|
(6,931)
|
|
—
|
|
Non-GAAP
amounts
|
|
$
|
113,909
|
|
$
|
(3,859)
|
|
$
|
110,050
|
|
$
|
29,687
|
|
$
|
80,363
|
|
27.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended June 30, 2020
|
|
|
|
|
Other
|
|
Income
|
|
|
|
|
|
|
|
|
|
Operating
|
|
Income
|
|
Before
Income
|
|
Income
|
|
Net
|
|
|
|
|
Income
|
|
(Costs)
|
|
Taxes
|
|
Tax
Provision
|
|
Income
|
|
Tax
Rate(4)
|
Amounts on GAAP
basis
|
|
$
|
20,425
|
|
$
|
309
|
|
$
|
20,734
|
|
$
|
4,854
|
|
$
|
15,880
|
|
23.4
|
%
|
Innovative technology
costs(1)
|
|
|
4,699
|
|
|
199
|
|
|
4,898
|
|
|
1,261
|
|
|
3,637
|
|
25.7
|
|
Life insurance proceeds
and changes in cash surrender
value
|
|
|
—
|
|
|
(2,560)
|
|
|
(2,560)
|
|
|
—
|
|
|
(2,560)
|
|
—
|
|
Tax expense from vested
RSUs(3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(659)
|
|
|
659
|
|
—
|
|
Non-GAAP
amounts
|
|
$
|
25,124
|
|
$
|
(2,052)
|
|
$
|
23,072
|
|
$
|
5,456
|
|
$
|
17,616
|
|
23.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
2020
|
|
|
|
|
Other
|
|
Income
Before
|
|
Income
|
|
|
|
|
|
|
|
|
Operating
|
|
Income
|
|
Income
|
|
Tax
|
|
Net
|
|
|
|
|
Income
|
|
(Costs)
|
|
Taxes
|
|
Provision
|
|
Income
|
|
Tax
Rate(4)
|
Amounts on GAAP
basis
|
|
$
|
28,244
|
|
$
|
(5,125)
|
|
$
|
23,119
|
|
$
|
5,337
|
|
$
|
17,782
|
|
23.1
|
%
|
Innovative technology
costs(1)
|
|
|
9,299
|
|
|
406
|
|
|
9,705
|
|
|
2,498
|
|
|
7,207
|
|
25.7
|
|
Nonunion pension
expense, including settlement (4)
|
|
|
—
|
|
|
89
|
|
|
89
|
|
|
23
|
|
|
66
|
|
25.8
|
|
Life insurance proceeds
and changes in cash surrender
value
|
|
|
—
|
|
|
1,245
|
|
|
1,245
|
|
|
—
|
|
|
1,245
|
|
—
|
|
Tax expense from vested
RSUs(3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(679)
|
|
|
679
|
|
—
|
|
Non-GAAP
amounts
|
|
$
|
37,543
|
|
$
|
(3,385)
|
|
$
|
34,158
|
|
$
|
7,179
|
|
$
|
26,979
|
|
21.0
|
%
|
|
|
|
|
1)
|
Represents costs
associated with the freight handling pilot test program at ABF
Freight.
|
2)
|
Gain recognized for
the three and six months ended June 30, 2021 relates to the sale of
the labor services portion of the ArcBest segment's moving business
in May 2021.
|
3)
|
The Company
recognized the tax impact for the vesting of share-based
compensation resulting in excess tax expense (benefit) during the
three and six months ended June 30, 2021 and
2020.
|
4)
|
For the six months
ended June 30, 2020, represents pension settlement
expense related to the Company's supplemental benefit
plan.
|
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, 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 Asset-Light Adjusted EBITDA as
presented below begins with operating income (loss), 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
|
|
Six Months Ended
|
|
|
June 30
|
|
|
June 30
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
(Unaudited)
|
|
ArcBest
Corporation - Consolidated Adjusted EBITDA
|
|
($ thousands)
|
|
|
|
|
Net
Income
|
|
$
|
60,981
|
|
$
|
15,880
|
|
$
|
84,342
|
|
$
|
17,782
|
|
Interest and other
related financing costs
|
|
|
2,274
|
|
|
3,378
|
|
|
4,702
|
|
|
6,325
|
|
Income tax
provision
|
|
|
12,477
|
|
|
4,854
|
|
|
20,463
|
|
|
5,337
|
|
Depreciation and
amortization
|
|
|
30,282
|
|
|
29,086
|
|
|
60,636
|
|
|
58,099
|
|
Amortization of
share-based compensation
|
|
|
3,324
|
|
|
2,890
|
|
|
5,678
|
|
|
5,071
|
|
Amortization of net
actuarial gains of benefit plans and pension
settlement expense(1)
|
|
|
(134)
|
|
|
(148)
|
|
|
(269)
|
|
|
(204)
|
|
Consolidated Adjusted
EBITDA
|
|
$
|
109,204
|
|
$
|
55,940
|
|
$
|
175,552
|
|
$
|
92,410
|
|
|
|
|
|
1)
|
The six months ended
June 30, 2020 includes pre-tax pension settlement expense of
$0.1 million related to the Company's supplemental benefit
plan.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six Months Ended
|
|
|
|
June 30
|
|
June 30
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Asset-Light
Adjusted EBITDA
|
|
(Unaudited)
|
|
|
|
($ thousands)
|
|
|
|
|
|
|
ArcBest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
$
|
15,127
|
|
$
|
1,303
|
|
$
|
23,392
|
|
$
|
(106)
|
|
Depreciation and
amortization(2)
|
|
|
2,366
|
|
|
2,449
|
|
|
4,752
|
|
|
4,919
|
|
Adjusted
EBITDA
|
|
$
|
17,493
|
|
$
|
3,752
|
|
$
|
28,144
|
|
$
|
4,813
|
|
|
|
|
|
|
FleetNet
|
|
|
|
|
Operating
Income
|
|
$
|
1,138
|
|
$
|
782
|
|
$
|
2,161
|
|
$
|
1,822
|
|
Depreciation and
amortization(2)
|
|
|
413
|
|
|
402
|
|
|
828
|
|
|
793
|
|
Adjusted
EBITDA
|
|
$
|
1,551
|
|
$
|
1,184
|
|
$
|
2,989
|
|
$
|
2,615
|
|
|
|
|
|
|
Total
Asset-Light
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
$
|
16,265
|
|
$
|
2,085
|
|
$
|
25,553
|
|
$
|
1,716
|
|
Depreciation and
amortization(2)
|
|
|
2,779
|
|
|
2,851
|
|
|
5,580
|
|
|
5,712
|
|
Adjusted
EBITDA
|
|
$
|
19,044
|
|
$
|
4,936
|
|
$
|
31,133
|
|
$
|
7,428
|
|
|
|
|
|
2)
|
Depreciation and
amortization includes amortization of intangibles associated with
acquired businesses.
|
ARCBEST
CORPORATION OPERATING STATISTICS
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six Months Ended
|
|
|
|
June 30
|
|
June 30
|
|
|
|
2021
|
|
2020
|
|
% Change
|
|
2021
|
|
2020
|
|
% Change
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Asset-Based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Workdays
|
|
|
63.5
|
|
|
63.5
|
|
|
|
|
126.5
|
|
|
127.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Billed
Revenue(1) / CWT
|
|
$
|
38.87
|
|
$
|
33.69
|
|
15.4%
|
|
$
|
37.54
|
|
$
|
33.41
|
|
12.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Billed
Revenue(1) / Shipment
|
|
$
|
528.33
|
|
$
|
423.39
|
|
24.8%
|
|
$
|
495.76
|
|
$
|
425.73
|
|
16.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments
|
|
|
1,251,791
|
|
|
1,103,106
|
|
13.5%
|
|
|
2,467,207
|
|
|
2,306,522
|
|
7.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments /
Day
|
|
|
19,713
|
|
|
17,372
|
|
13.5%
|
|
|
19,504
|
|
|
18,090
|
|
7.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnage
(Tons)
|
|
|
850,817
|
|
|
693,192
|
|
22.7%
|
|
|
1,629,232
|
|
|
1,469,660
|
|
10.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons / Day
|
|
|
13,399
|
|
|
10,916
|
|
22.7%
|
|
|
12,879
|
|
|
11,527
|
|
11.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds /
Shipment
|
|
|
1,359
|
|
|
1,257
|
|
8.1%
|
|
|
1,321
|
|
|
1,274
|
|
3.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Length of Haul
(Miles)
|
|
|
1,107
|
|
|
1,084
|
|
2.1%
|
|
|
1,099
|
|
|
1,062
|
|
3.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
Revenue for
undelivered freight is deferred for financial statement purposes in
accordance with the Asset-Based segment revenue recognition policy.
Billed revenue used for calculating revenue per hundredweight
measurements has not been adjusted for the portion of revenue
deferred for financial statement purposes.
|
|
|
|
|
|
|
|
|
|
Year Over Year %
Change
|
|
|
Three
Months Ended
|
Six Months Ended
|
|
|
June 30,
2021
|
June 30,
2021
|
|
|
(Unaudited)
|
ArcBest(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue /
Shipment
|
|
|
32.9%
|
|
|
29.5%
|
|
|
|
|
|
|
|
Shipments /
Day
|
|
|
39.0%
|
|
|
30.4%
|
|
|
|
|
2)
|
Statistical data
related to managed transportation solutions transactions are not
included in the presentation of operating statistics for the
ArcBest segment.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/arcbest-announces-second-quarter-2021-results-301345733.html
SOURCE ArcBest