8-K - ARCB - Equibles

June 30

UNITED **** STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 2, 2024 (August 2, 2024)

ARCBEST **** CORPORATION

(Exact name of registrant as specified in its charter)


Delaware	0-19969	71-0673405
(State or other jurisdiction of incorporation)	(Commission<br><br>File Number)	(IRS Employer<br><br>Identification No.)
8401 McClure Drive<br><br>Fort Smith , Arkansas<br><br>(Address of principal executive offices)		72916<br><br>(Zip Code)<br><br>

Registrant’s telephone number, including area code: (479) 785-6000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.

☐	Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock $0.01 Par Value	ARCB	Nasdaq

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company**☐**

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

ITEM 2.02 – RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On August 2, 2024, ArcBest^®^ (Nasdaq: ARCB) (the “Company”) issued a press release announcing its unaudited second quarter 2024 results. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference. Additional supplemental information and presentation slides to be used in connection with the scheduled conference call to discuss the second quarter results are furnished as Exhibit 99.2 and Exhibit 99.3 to this Current Report on Form 8-K and incorporated herein by reference.

The Company reports its financial results in accordance with generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP financial measures and ratios and other information utilized for internal analysis provide analysts, investors, and others the same information that we use internally for purposes of assessing the Company’s core operating performance and provide 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 ArcBest’s performance because it removes the impact of items from operating results that, in management’s opinion, do not reflect ArcBest’s core operating performance.

The press release in Exhibit 99.1, the supplemental information in Exhibit 99.2, and the presentation slides in Exhibit 99.3 include certain non-GAAP information. Certain information discussed in the scheduled conference call could also be considered non-GAAP measures. Reconciliations of the non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are included in Exhibit 99.1 herein, including reconciliations of GAAP earnings and earnings per share to non-GAAP financial measures, reconciliations of GAAP to non-GAAP effective tax rates, and calculations of adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). Reconciliations of non-GAAP measures included in the presentation slides to the most directly comparable GAAP financial measures are also included within Exhibit 99.3 herein.

Management believes EBITDA and Adjusted EBITDA to be relevant and useful information as EBITDA is a standard measure commonly reported and widely used by analysts, investors and others to measure financial performance and ability to service debt obligations. Additionally, Adjusted EBITDA is a primary component of the financial covenants contained in ArcBest’s credit agreement. Other companies may calculate EBITDA and Adjusted EBITDA differently; therefore, ArcBest’s calculation of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, ArcBest’s 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.

ITEM 9.01 – FINANCIAL STATEMENTS AND EXHIBITS

		<br><br>
Exhibit No.		<br><br>Description of Exhibit

99.1		Press release of ArcBest dated August 2, 2024
99.2		Supplemental information dated August 2, 2024
99.3		Earnings conference call presentation dated August 2, 2024
104		Cover Page Interactive Data File – The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


		ARCBEST CORPORATION

		(Registrant)

Date:	August 2, 2024	/s/ Michael R. Johns
		Michael R. Johns
		Chief Legal Officer<br><br>and Corporate Secretary

December 31

Exhibit 99.1


Investor Relations Contact: Amy Mendenhall	Media Contact: Autumnn Mahar
Title: Vice President – Treasury & Investor Relations<br><br>Phone: 479-785-6200	Title: Director External Communications and Public Relations
Email: invrel@arcb.com	Phone: 479-494-8221
	Email: amahar@arcb.com

ArcBest Announces Second Quarter 2024 Results

Strong gains in productivity and service metrics

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

FORT SMITH, Arkansas, August 2, 2024 — ArcBest^®^ (Nasdaq: ARCB), a leader in supply chain logistics, today reported second quarter 2024 revenue from continuing operations of $1.08 billion, compared to $1.10 billion in the second quarter of 2023. Second quarter 2024 operating income from continuing operations was $48.8 million, compared to $42.1 million in the prior year period, and net income from continuing operations was $46.9 million, or $1.96 per diluted share, compared to $39.6 million, or $1.60 per diluted share, in 2023.

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

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

Results of Operations Comparisons

Asset-Based

Second Quarter 2024 Versus Second Quarter 2023

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

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

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

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

Asset-Light

Second Quarter 2024 Versus Second Quarter 2023

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

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

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

Conference Call

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

About ArcBest

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

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

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

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

Financial Data and Operating Statistics

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

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF OPERATION****S


	Three Months Ended			Six Months Ended
	June 30			June 30
	2024	2023		2024		2023
	(Unaudited)
	( thousands, except share and per share data)
REVENUES		$	1,103,464	$	2,114,250	$	2,209,558

OPERATING EXPENSES			1,061,348	****	2,042,970		2,146,283

OPERATING INCOME			42,116	****	71,280		63,275

OTHER INCOME (COSTS)
Interest and dividend income			3,725	****	6,556		6,658
Interest and other related financing costs			(2,205)	****	(4,306)		(4,532)
Other, net			5,038	****	(28,980)		6,818
			6,558	****	(26,730)		8,944

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES			48,674	****	44,550		72,219

INCOME TAX PROVISION			9,074	****	538		13,772

NET INCOME FROM CONTINUING OPERATIONS			39,600		44,012		58,447

INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX^(1)^			843		600		53,279

NET INCOME		$	40,443	$	44,612	$	111,726

BASIC EARNINGS PER COMMON SHARE^(2)^
Continuing operations		$	1.65	$	1.87	$	2.42
Discontinued operations^(1)^			0.04		0.03		2.20
		$	1.68	$	1.89	$	4.62

DILUTED EARNINGS PER COMMON SHARE^(2)^
Continuing operations		$	1.60	$	1.83	$	2.35
Discontinued operations^(1)^			0.03		0.02		2.14
		$	1.64	$	1.86	$	4.49

AVERAGE COMMON SHARES OUTSTANDING
Basic			24,064,882	****	23,589,814		24,175,893
Diluted			24,672,948	****	24,025,499		24,864,691

All values are in US Dollars.

1)	Represents the discontinued operations of FleetNet America^®^ (“FleetNet”), which sold on February 28, 2023. The six months ended June 30, 2024 represents adjustments related to the prior year gain on sale of FleetNet. The six months ended June 30, 2023 includes the net gain on sale of FleetNet of $52.3 million after-tax, or $2.16 basic earnings per share and $2.10 diluted earnings per share.
2)	Earnings per common share is calculated in total and may not equal the sum of earnings per common share from continuing operations and discontinued operations due to rounding.
---	---

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

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.

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ARCBEST CORPORATION

CONSOLIDATED BALANCE SHEET****S


	June 30	December 31
	2024	2023
	(Unaudited)	Note
	( thousands, except share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	262,226
Short-term investments			67,842
Accounts receivable, less allowances (2024 - $8,788; 2023 - $10,346)			430,122
Other accounts receivable, less allowances (2024 - $654; 2023 - $731)			52,124
Prepaid expenses			37,034
Prepaid and refundable income taxes			24,319
Other			11,116
TOTAL CURRENT ASSETS			884,783

PROPERTY, PLANT AND EQUIPMENT
Land and structures			460,068
Revenue equipment			1,126,055
Service, office, and other equipment			319,466
Software			173,354
Leasehold improvements			24,429
			2,103,372
Less allowances for depreciation and amortization			1,188,548
PROPERTY, PLANT AND EQUIPMENT, NET			914,824

GOODWILL			304,753
INTANGIBLE ASSETS, NET			101,150
OPERATING RIGHT-OF-USE ASSETS			169,999
DEFERRED INCOME TAXES			8,140
OTHER LONG-TERM ASSETS			101,445
TOTAL ASSETS		$	2,485,094

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable		$	214,004
Income taxes payable			10,410
Accrued expenses			378,029
Current portion of long-term debt			66,948
Current portion of operating lease liabilities			32,172
TOTAL CURRENT LIABILITIES			701,563

LONG-TERM DEBT, less current portion			161,990
OPERATING LEASE LIABILITIES, less current portion			176,621
POSTRETIREMENT LIABILITIES, less current portion			13,319
CONTINGENT CONSIDERATION			92,900
OTHER LONG-TERM LIABILITIES			40,553
DEFERRED INCOME TAXES			55,785

STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value, authorized 70,000,000 shares;<br>issued 2024: 30,399,853 shares; 2023: 30,024,125 shares			300
Additional paid-in capital			340,961
Retained earnings			1,272,584
Treasury stock, at cost, 2024: 6,711,805 shares; 2023: 6,460,137 shares			(375,806)
Accumulated other comprehensive income			4,324
TOTAL STOCKHOLDERS’ EQUITY			1,242,363
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	2,485,094

All values are in US Dollars.

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 FLOW****S


	Six Months Ended
	June 30
	2024	2023
	(Unaudited)
	( thousands)
OPERATING ACTIVITIES
Net income		$	111,726
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			64,804
Amortization of intangibles			6,398
Share-based compensation expense			5,585
Provision for losses on accounts receivable			2,257
Change in deferred income taxes			(8,228)
Loss on sale of property and equipment			1,188
Pre-tax gain on sale of discontinued operations			(70,215)
Change in fair value of contingent consideration			5,040
Change in fair value of equity investment			(3,739)
Changes in operating assets and liabilities:
Receivables			83,542
Prepaid expenses			6,353
Other assets			759
Income taxes			(35,968)
Operating right-of-use assets and lease liabilities, net			3,059
Accounts payable, accrued expenses, and other liabilities			(68,804)
NET CASH PROVIDED BY OPERATING ACTIVITIES			103,757

INVESTING ACTIVITIES
Purchases of property, plant and equipment, net of financings			(83,171)
Proceeds from sale of property and equipment			2,853
Proceeds from sale of discontinued operations			100,949
Purchases of short-term investments			(46,858)
Proceeds from sale of short-term investments			63,693
Capitalization of internally developed software			(7,010)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES			30,456

FINANCING ACTIVITIES
Payments on long-term debt			(35,114)
Net change in book overdrafts			(13,171)
Deferred financing costs			57
Payment of common stock dividends			(5,809)
Purchases of treasury stock			(41,240)
Payments for tax withheld on share-based compensation			(10,022)
NET CASH USED IN FINANCING ACTIVITIES			(105,299)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			28,914
Cash and cash equivalents of continuing operations at beginning of period			158,264
Cash and cash equivalents of discontinued operations at beginning of period			108
CASH AND CASH EQUIVALENTS AT END OF PERIOD		$	187,286

NONCASH INVESTING ACTIVITIES
Equipment financed		$	3,478
Accruals for equipment received		$	10,106
Lease liabilities arising from obtaining right-of-use assets		$	43,366

All values are in US Dollars.

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

ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS


	Three Months Ended							Six Months Ended							****
	June 30							June 30							****
	2024			2023				2024				2023
	(Unaudited)														****
	( thousands, except percentages)														****
REVENUES FROM CONTINUING OPERATIONS
Asset-Based				$	722,015			$	1,384,192			$	1,419,832
Asset-Light					409,816			****	792,180				847,908
Other and eliminations					(28,367)			****	(62,122)				(58,182)
Total consolidated revenues from continuing operations				$	1,103,464			$	2,114,250			$	2,209,558

OPERATING EXPENSES FROM CONTINUING OPERATIONS
Asset-Based
Salaries, wages, and benefits		49.5	%	$	344,538	47.7	%	$	697,677	50.4	%	$	680,143	47.9	%
Fuel, supplies, and expenses		11.6			90,897	12.6		****	163,982	11.8			185,185	13.1
Operating taxes and licenses		1.9			14,094	2.0		****	27,086	2.0			28,073	2.0
Insurance		2.4			12,889	1.8		****	31,446	2.3			26,162	1.8
Communications and utilities		0.6			4,553	0.6		****	9,211	0.7			9,857	0.7
Depreciation and amortization		3.8			25,273	3.5		****	53,653	3.9			50,184	3.5
Rents and purchased transportation		9.9			101,922	14.1		****	135,986	9.8			192,666	13.6
Shared services		10.1			74,468	10.3		****	137,159	9.9			139,081	9.8
(Gain) loss on sale of property and equipment		—			416	0.1		****	58	—			365	—
Innovative technology costs^(1)^		—			8,343	1.1		****	—	—			14,411	1.0
Other		—			1,297	0.2		****	1,686	0.1			2,909	0.2
Total Asset-Based		89.8	%		678,690	94.0	%		1,257,944	90.9	%		1,329,036	93.6	%

Asset-Light
Purchased transportation		85.7	%	$	343,102	83.7	%	$	683,369	86.3	%	$	713,265	84.1	%
Salaries, wages, and benefits^(2)^		7.8			32,485	7.9		****	61,340	7.7			67,495	8.0
Supplies and expenses^(2)^		0.7			2,905	0.7		****	5,577	0.7			6,534	0.8
Depreciation and amortization^(3)^		1.3			5,085	1.2		****	10,117	1.3			10,153	1.2
Shared services^(2)^		4.4			16,500	4.1		****	33,571	4.2			33,014	3.9
Contingent consideration^(4)^		1.0			(10,000)	(2.4)		****	11,170	1.4			5,040	0.6
Other^(2)^		1.5			6,559	1.6		****	11,792	1.5			13,318	1.5
Total Asset-Light		102.4	%		396,636	96.8	%	****	816,936	103.1	%		848,819	100.1	%

Other and eliminations^(5)^					(13,978)			****	(31,910)				(31,572)
Total consolidated operating expenses from continuing operations		95.5	%	$	1,061,348	96.2	%	$	2,042,970	96.6	%	$	2,146,283	97.1	%

OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS
Asset-Based				$	43,325			$	126,248			$	90,796
Asset-Light					13,180				(24,756)				(911)
Other and eliminations^(5)^					(14,389)			****	(30,212)				(26,610)
Total consolidated operating income from continuing operations				$	42,116			$	71,280			$	63,275

All values are in US Dollars.

1)	Represents costs associated with the freight handling pilot test program at ABF Freight, for which the decision was made to pause the pilot during third quarter 2023.
2)	For the 2023 period, certain expenses have been reclassed to conform to the current year presentation, including amounts previously reported in “Shared services” that were reclassed to present “Salaries, wages, and benefits” expenses in a separate line item.
---	---
3)	Includes amortization of intangibles associated with acquired businesses.
---	---
4)	Represents the change in fair value of the contingent earnout consideration recorded for the MoLo acquisition. The liability for contingent consideration is remeasured at each quarterly reporting date, and any change in fair value as a result of the recurring assessments is recognized in operating income (loss). The contingent consideration for the MoLo acquisition will be paid based on achievement of certain targets of adjusted earnings before interest, taxes, depreciation, and amortization, as adjusted for certain items pursuant to the merger agreement, for years 2023 through 2025, including catch-up provisions.
---	---
5)	“Other and eliminations” includes corporate costs for certain unallocated shared service costs which are not attributable to any segment, additional investments to offer comprehensive transportation and logistics services across multiple operating segments, costs related to our customer pilot offering of Vaux, and other investments in ArcBest technology and innovations.
---	---

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

Non-GAAP Financial Measures

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


	Three Months Ended				Six Months Ended
	June 30				June 30
	2024	2023		****	2024		2023
ArcBest Corporation - Consolidated	(Unaudited)
	( thousands, except per share data)
Operating Income from Continuing Operations
Amounts on GAAP basis		$	42,116		$	71,280	$	63,275
Innovative technology costs, pre-tax^(1)^			14,821			18,009		27,299
Purchase accounting amortization, pre-tax^(2)^			3,192			6,384		6,384
Change in fair value of contingent consideration, pre-tax^(3)^			(10,000)			11,170		5,040
Non-GAAP amounts		$	50,129		$	106,843	$	101,998

Net Income from Continuing Operations
Amounts on GAAP basis		$	39,600		$	44,012	$	58,447
Innovative technology costs, after-tax (includes related financing costs)^(1)^			11,206			13,820		20,686
Purchase accounting amortization, after-tax^(2)^			2,398			4,801		4,796
Change in fair value of contingent consideration, after-tax^(3)^			(7,512)			8,401		3,787
Change in fair value of equity investment, after-tax^(4)^			(2,786)			21,603		(2,786)
Life insurance proceeds and changes in cash surrender value			(1,086)			(1,673)		(2,582)
Tax benefit from vested RSUs^(5)^			(3,864)			(11,264)		(4,915)
Non-GAAP amounts		$	37,956		$	79,700	$	77,433

Diluted Earnings Per Share from Continuing Operations
Amounts on GAAP basis		$	1.60		$	1.83	$	2.35
Innovative technology costs, after-tax (includes related financing costs)^(1)^			0.45			0.58		0.83
Purchase accounting amortization, after-tax^(2)^			0.10			0.20		0.19
Change in fair value of contingent consideration, after-tax^(3)^			(0.30)			0.35		0.15
Change in fair value of equity investment, after-tax^(4)^			(0.11)			0.90		(0.11)
Life insurance proceeds and changes in cash surrender value			(0.04)			(0.07)		(0.10)
Tax benefit from vested RSUs^(5)^			(0.16)			(0.47)		(0.20)
Non-GAAP amounts^(6)^		$	1.54		$	3.32	$	3.11

All values are in US Dollars.

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

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued


	Three Months Ended							Six Months Ended
	June 30							June 30
	2024			2023				2024				2023
Segment Operating Income (Loss) Reconciliations	(Unaudited)
	( thousands, except percentages)
Asset-Based Segment
Operating Income () and Operating Ratio(% of revenues)
Amounts on GAAP basis		89.8	%	$	43,325	94.0	%	$	126,248	90.9	%	$	90,796	93.6	%
Innovative technology costs, pre-tax(7)		—			8,343	(1.1)			—	—			14,411	(1.0)
Non-GAAP amounts(6)		89.8	%	$	51,668	92.8	%	$	126,248	90.9	%	$	105,207	92.6	%

Asset-Light Segment
Operating Income (Loss) () and Operating Ratio(% of revenues)
Amounts on GAAP basis		102.4	%	$	13,180	96.8	%	$	(24,756)	103.1	%	$	(911)	100.1	%
Purchase accounting amortization, pre-tax(2)		(0.8)			3,192	(0.8)			6,384	(0.8)			6,384	(0.8)
Change in fair value of contingent consideration, pre-tax(3)		(1.0)			(10,000)	2.4			11,170	(1.4)			5,040	(0.6)
Non-GAAP amounts(6)		100.6	%	$	6,372	98.4	%	$	(7,202)	100.9	%	$	10,513	98.8	%

Other and Eliminations
Operating Income (Loss) ()
Amounts on GAAP basis				$	(14,389)			$	(30,212)			$	(26,610)
Innovative technology costs, pre-tax(1)					6,478				18,009				12,888
Non-GAAP amounts(6)				$	(7,911)			$	(12,203)			$	(13,722)

All values are in US Dollars.

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

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued


Effective Tax Rate Reconciliation
ArcBest Corporation - Consolidated

(Unaudited)
($ thousands, except percentages)	Three Months Ended June 30, 2024
			Other		Income		Income
CONTINUING OPERATIONS	Operating		Income		Before Income		Tax		Net
	Income		(Costs)		Taxes		Provision		Income		Tax Rate^(8)^
Amounts on GAAP basis	$	48,845	$	382	$	49,227	$	2,303	$	46,924	4.7	%
Innovative technology costs^(1)^		8,311		172		8,483		2,103		6,380	24.8
Purchase accounting amortization^(2)^		3,192		—		3,192		792		2,400	24.8
Change in fair value of contingent consideration^(3)^		3,850		—		3,850		954		2,896	24.8
Life insurance proceeds and changes in cash surrender value		—		(440)		(440)		—		(440)	—
Tax benefit from vested RSUs^(5)^		—		—		—		10,777		(10,777)	—
Non-GAAP amounts	$	64,198	$	114	$	64,312	$	16,929	$	47,383	26.3	%


	Six Months Ended June 30, 2024
			Other		Income		Income
	Operating		Income		Before Income		Tax		Net
	Income		(Costs)		Taxes		Provision		Income		Tax Rate^(8)^
Amounts on GAAP basis	$	71,280	$	(26,730)	$	44,550	$	538	$	44,012	1.2	%
Innovative technology costs^(1)^		18,009		367		18,376		4,556		13,820	24.8
Purchase accounting amortization^(2)^		6,384		—		6,384		1,583		4,801	24.8
Change in fair value of contingent consideration^(3)^		11,170		—		11,170		2,769		8,401	24.8
Change in fair value of equity investment^(4)^		—		28,739		28,739		7,136		21,603	24.8
Life insurance proceeds and changes in cash surrender value		—		(1,673)		(1,673)		—		(1,673)	—
Tax benefit from vested RSUs^(5)^		—		—		—		11,264		(11,264)	—
Non-GAAP amounts	$	106,843	$	703	$	107,546	$	27,846	$	79,700	25.9	%


	Three Months Ended June 30, 2023
			Other		Income		Income
CONTINUING OPERATIONS	Operating		Income		Before Income		Tax		Net
	Income		(Costs)		Taxes		Provision		Income		Tax Rate^(8)^
Amounts on GAAP basis	$	42,116	$	6,558	$	48,674	$	9,074	$	39,600	18.6	%
Innovative technology costs^(1)^		14,821		241		15,062		3,856		11,206	25.6
Purchase accounting amortization^(2)^		3,192		—		3,192		794		2,398	24.9
Change in fair value of contingent consideration^(3)^		(10,000)		—		(10,000)		(2,488)		(7,512)	(24.9)
Change in fair value of equity investment^(4)^		—		(3,739)		(3,739)		(953)		(2,786)	(25.5)
Life insurance proceeds and changes in cash surrender value		—		(1,086)		(1,086)		—		(1,086)	—
Tax benefit from vested RSUs^(5)^		—		—		—		3,864		(3,864)	—
Non-GAAP amounts	$	50,129	$	1,974	$	52,103	$	14,147	$	37,956	27.2	%


	Six Months Ended June 30, 2023
			Other		Income		Income
	Operating		Income		Before Income		Tax		Net
	Income		(Costs)		Taxes		Provision		Income		Tax Rate^(8)^
Amounts on GAAP basis	$	63,275	$	8,944	$	72,219	$	13,772	$	58,447	19.1	%
Innovative technology costs^(1)^		27,299		500		27,799		7,113		20,686	25.6
Purchase accounting amortization^(2)^		6,384		—		6,384		1,588		4,796	24.9
Change in fair value of contingent consideration^(3)^		5,040		—		5,040		1,253		3,787	24.9
Change in fair value of equity investment^(4)^		—		(3,739)		(3,739)		(953)		(2,786)	(25.5)
Life insurance proceeds and changes in cash surrender value		—		(2,582)		(2,582)		—		(2,582)	—
Tax benefit from vested RSUs^(5)^		—		—		—		4,915		(4,915)	—
Non-GAAP amounts	$	101,998	$	3,123	$	105,121	$	27,688	$	77,433	26.3	%

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

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (Adjusted EBITDA)

Management uses Adjusted EBITDA as a key measure of performance and for business planning. The measure is particularly meaningful for analysis of operating performance because it excludes amortization of acquired intangibles and software of the Asset-Light segment and changes in the fair values of contingent consideration and our equity investment, which are significant expenses resulting from strategic decisions or other factors rather than core daily operations. Additionally, Adjusted EBITDA is a primary component of the financial covenants contained in our credit agreement. The calculation of Consolidated Adjusted EBITDA as presented below begins with net income from continuing operations, which is the most directly comparable GAAP measure. The calculation of Asset-Light Adjusted EBITDA as presented below begins with operating income (loss), as other income (costs), income taxes, and net income from continuing operations are reported at the consolidated level and not included in the operating segment financial information evaluated by management to make operating decisions.


	Three Months Ended					Six Months Ended
	June 30						June 30
	2024	****	2023		****	2024		****	2023		****
	(Unaudited)										****
	( thousands)
ArcBest Corporation - Consolidated Adjusted EBITDA from Continuing Operations
Net Income from Continuing Operations			$	39,600		$	44,012		$	58,447
Interest and other related financing costs				2,205			4,306			4,532
Income tax provision				9,074			538			13,772
Depreciation and amortization^(9)^				35,811		****	73,109			70,821
Amortization of share-based compensation				3,350		****	6,322			5,532
Change in fair value of contingent consideration^(3)^				(10,000)		****	11,170			5,040
Change in fair value of equity investment^(4)^				(3,739)			28,739			(3,739)
Consolidated Adjusted EBITDA from Continuing Operations			$	76,301		$	168,196		$	154,405

All values are in US Dollars.

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


	Three Months Ended			Six Months Ended
	June 30			June 30
	2024	2023		2024		2023
	(Unaudited)
	( thousands)
Asset-Light Adjusted EBITDA
Operating Income (Loss)		$	13,180	$	(24,756)	$	(911)
Depreciation and amortization^(9)^			5,085		10,117		10,153
Change in fair value of contingent consideration^(3)^			(10,000)		11,170		5,040
Asset-Light Adjusted EBITDA		$	8,265	$	(3,469)	$	14,282

All values are in US Dollars.

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

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued

Notes to Non-GAAP Financial Tables

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

1)	Represents costs related to our customer pilot offering of Vaux and initiatives to optimize our performance through technological innovation. The 2023 period also includes costs associated with the freight handling pilot test program at ABF Freight, for which the decision was made to pause the pilot during third quarter 2023.
2)	Represents the amortization of acquired intangible assets in the Asset-Light segment.
---	---
3)	Represents change in fair value of the contingent earnout consideration recorded for the MoLo acquisition, as previously described in the footnotes to the Financial Statement Operating Segment Data and Operating Ratios table.
---	---
4)	For the six months ended June 30, 2024, represents a noncash impairment charge to write off our equity investment in Phantom Auto, a provider of human-centered remote operation software, which ceased operations during first quarter 2024. For the three and six months ended June 30, 2023, represents the increase in fair value of our investment in Phantom Auto based on observable price changes during second quarter 2023.
---	---
5)	Represents recognition of the tax impact for the vesting of share-based compensation.
---	---
6)	Non-GAAP amounts are calculated in total and may not equal the sum of the GAAP amounts and the non-GAAP adjustments due to rounding.
---	---
7)	Represents costs associated with the freight handling pilot test program at ABF Freight, for which the decision was made to pause the pilot during third quarter 2023.
---	---
8)	Tax rate for total “Amounts on GAAP basis” represents the effective tax rate. The tax effects of non-GAAP adjustments are calculated based on the statutory rate applicable to each item based on tax jurisdiction unless the nature of the item requires the tax effect to be estimated by applying a specific tax treatment.
---	---
9)	Includes amortization of intangibles associated with acquired businesses.
---	---

ARCBEST CORPORATION

OPERATING STATISTICS


		Three Months Ended									Six Months Ended
		June 30									June 30
	****	2024		****	2023		****	% Change	****	****	2024		****	2023		****	% Change
		(Unaudited)
Asset-Based

Workdays	****		64.0			63.5						127.5			127.5

Billed Revenue^(1)^ / CWT		$	50.09		$	40.72		23.0%			$	49.34		$	41.33		19.4%

Billed Revenue^(1)^ / Shipment		$	562.17		$	545.35		3.1%			$	552.64		$	537.38		2.8%

Tonnage / Day		****	11,186			14,027		(20.3%)			****	11,062			13,586		(18.6%)

Shipments / Day		****	19,934			20,946		(4.8%)			****	19,751			20,901		(5.5%)

Shipments / DSY hour		****	0.448			0.417		7.4%			****	0.445			0.424		5.0%

Weight / Shipment		****	1,122			1,339		(16.2%)				1,120			1,300		(13.8%)

Average Length of Haul (Miles)		****	1,135			1,122		1.2%			****	1,123			1,109		1.3%

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


		Year Over Year % Change
		Three Months Ended		Six Months Ended
	****	June 30, 2024		June 30, 2024
		(Unaudited)
Asset-Light^(2)^

Revenue / Shipment			(14.9%)		(17.4%)

Shipments / Day			12.6%		13.1%

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

Exhibit 99.2 ArcBest^®^ is providing this exhibit as supplemental information to its scheduled conference call and the press release announcing the Company’s unaudited second quarter 2024 results filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K. Certain statements and information in this exhibit may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Refer to the “Forward-Looking Statements” disclosure at the end of this exhibit.

Non-GAAP Financial Measures

ArcBest reports its financial results in accordance with generally accepted accounting principles (“GAAP”); however, this exhibit includes certain non-GAAP information. Refer to the discussion of non-GAAP information included in Item 2.02 of the Current Report on Form 8-K to which this exhibit is included for further information, including reference to reconciliations of GAAP to non-GAAP financial measures provided by the Company.

Summary Operating and Financial Impacts

●	Statistics for July 2024 have not been finalized and are preliminary.
●	There are 21.5 workdays in July 2024, and there were 19.5 workdays in July 2023.
---	---
●	There will be 63.5 workdays in 3Q’24, and there were 62.5 workdays in 3Q’23.
---	---

Asset-Based Operating Segment

●	Average price increase on contract renewals and deferred pricing agreements negotiated during 2Q’24: +5.1%

Year-over-Year Business Trends


	****	April 2024		May 2024		June 2024		July 2024

Billed Revenue/Day^(1)^		-2.2	%	-2.0	%	-0.9	%	+1	%
Total Tons/Day		-21.5	%	-22.0	%	-16.9	%	-13	%
Total Shipments/Day		-6.6	%	-3.4	%	-4.5	%	+1	%
Total Billed Revenue/CWT		+24.6	%	+25.7	%	+19.2	%	+16	%
Total Billed Revenue/Shipment		+4.7	%	+1.5	%	+3.7	%	-1	%
Total Weight/Shipment		-16.0	%	-19.2	%	-13.0	%	-14	%

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

As we served our customers during the market disruption that began in July 2023 due to financial challenges at a major LTL competitor, we experienced an increase in our core business volumes. As these volumes grew, we strategically raised prices and reduced volumes in our transactional business. This shift, along with a softer market backdrop, led to year-over-year decreases in daily tonnage in the first half of 2024. However, these decreases were partially offset by higher billed revenue per hundredweight (cwt) due to improved pricing on fewer dynamic LTL-rated and truckload-rated shipments. Additionally, changes in mix positively impacted our results, with core, published LTL-rated tonnage representing a larger proportion of our Asset-Based business at higher pricing.

Pricing remains rational, and the strength of our core business allows us to optimize spot prices for transactional business. Based on preliminary results, total revenue per day and shipments per day both increased year-over-year in July 2024. We anticipate that daily tonnage levels for third quarter 2024 will be below the prior year, as some of the core business increase that began in July 2023 was project-related, and some of the increased business has shifted to other providers over the past year.

Effective July 1, 2024, the contractual wage rate under the 2023 ABF NMFA increased, and the health, welfare, and pension benefit contribution rate for most contractual employees increased on August 1, 2024. This resulted in a combined contractual wage and benefits rate increase of approximately 2.7%.

Historically, the average sequential change in the Asset-Based operating ratio from the second to the third quarter has ranged from flat to a 100-basis point improvement. With the current market backdrop and cost outlook for the third quarter, including the previously mentioned contractual wage and benefit increase, we expect the third quarter 2024 operating ratio to be consistent with the second quarter 2024.

Asset-Light Operating Segment

Year-over-Year Business Trends


	****	April 2024		May 2024		June 2024		July 2024

Revenue/Day (Year-over-Year)		-12.4	%	-4.7	%	+5.2	%	-10	%
Shipments/Day (Year-over-Year)		+8.5	%	+11.1	%	+18.3	%	+1	%
Revenue/Shipment (Year-over-Year)		-19.2	%	-14.2	%	-11.1	%	-10	%
Purchased Transportation Expense as a % of Revenue		84.8	%	85.9	%	86.4	%	87	%

In July 2024, revenue per day decreased year-over-year, primarily due to lower revenue per shipment. This was partially offset by an increase in shipment volumes.

Shipment volumes increased on a year-over-year basis in July, driven by growth in our Managed solution. However, this growth has recently moderated due to lower demand from existing customers, reflecting current macroeconomic conditions. Additionally, truckload volume has slowed as we strategically reduce less profitable freight.

The decrease in revenue per shipment is attributable to softer freight market conditions and growth in the segment's Managed business, which typically has smaller shipment sizes and lower revenue per shipment.

Purchased transportation expense as a percentage of revenue increased sequentially throughout the second quarter and into July, as carrier rates rose. These higher costs have reduced margins for our truckload brokerage contract business.

We continue to focus on improving productivity and reducing cost per shipment in our Asset-Light segment. However, operating profit will remain impacted in the near term by current truckload brokerage market conditions. For the third quarter of 2024, we expect operating loss levels, excluding any impacts from changes in the fair value of contingent consideration, to be consistent with the second quarter of 2024.

Additional Detailed Information

Consolidated Capital Expenditures 2024 Projected

●	Total Net Capital Expenditures, including financed equipment: $325 million to $375 million
●	Includes revenue equipment purchases (majority for Asset-Based) of $155 million
---	---
●	Includes real estate expenditures of $130 million
---	---
●	The remaining amount of capital expenditures includes items related to technology and miscellaneous dock equipment upgrades and enhancements.
---	---
●	Depreciation and amortization costs on property, plant and equipment: approximately $142 million
---	---
●	Intangible asset amortization, primarily reflecting purchase accounting amortization related to the MoLo acquisition: $13 million
---	---

Share Repurchase Program

●	Based on repurchases settled through Wednesday, July 31, 2024, $94.5 million remains available under the current repurchase authorization for future common stock purchases.

MoLo Contingent Earnout Consideration

●

As previously disclosed, contingent earnout 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. The liability for contingent earnout consideration is remeasured at fair value each quarter, and any change in fair value as a result of the recurring quarterly assessment is recognized in operating income. Factors impacting the fair value of the contingent earnout consideration include actual and forecasted operating results of MoLo, market volatility and discount rate considerations (including interest rates and other market factors). No consideration was paid for year 2023 because the earnout target was not achieved.

Tax Rate

●

ArcBest’s second quarter 2024 effective GAAP tax rate for continuing operations was 4.7%. The lower effective tax rate was primarily due to the tax benefit from the vesting of restricted stock units granted in 2020 and 2021. The “Effective Tax Rate Reconciliation” table of ArcBest’s second quarter 2024 earnings press release in Exhibit 99.1 shows the reconciliation of GAAP to non-GAAP effective tax rates. The effective non-GAAP tax rate for second quarter 2024 was 26.3%. Under the current tax laws, we expect our full year 2024 non-GAAP tax rate for continuing operations to be in a range of 26% to 27%. The effective tax rate may be impacted by discrete items that could occur throughout the year.

Asset-Based Annual Union Profit-Sharing Bonus

As provided in ABF Freight’s current Teamster labor contract, for the full years of 2024 through 2027, ABF Freight’s Teamster employees are eligible for an annual profit-sharing bonus, as shown in the following table. The operating ratio (“OR”) used to calculate the bonus amount is on a GAAP basis. The potential bonus would be based on full-year union employee earnings. While impacted by business and associated labor levels which are subject to change, the estimate of one percent of the annual earnings for the ABF Freight union employees who are eligible for this benefit approximates $6 million - $6.5 million of union bonus expense.

During years in which ArcBest’s internal forecasts indicate an expectation of paying the union bonus, we will accrue for this expense throughout the year, generally in proportion of the quarterly results as a percentage of the annual projection. As we do not provide public updates on our projected operating ratio or our expectations for paying the union bonus, any details of amounts accrued will not be provided. If financial models reflect an operating ratio that meets the payout thresholds shown below, ArcBest encourages analysts to include expenses for the union bonus in quarterly and annual earnings per share projections for the company.

ABF Freight Published Annual OR (GAAP basis)	Bonus Amount
91.1 to 93.0	1%
89.1 to 91.0	2%
87.1 to 89.0	3%
87.0 or below	4%

“Other and eliminations” within Operating Income on the Operating Segment Data and Operating Ratios statement

●	The “Other and eliminations” line includes expenses related to shared services to support all segments including sales, yield, customer service, marketing, capacity sourcing functions, human resources, financial services, information technology, legal and other company-wide services.
●	It also includes innovative technology costs related to our freight handling pilot program with third-party customers and human-centered remote and automated operations, which are typically disclosed as a non-GAAP reconciling item.
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●	Projected amounts for third quarter and full year 2024, and actual amounts for third quarter and full year 2023, are included below.
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	Three Months Ended				Year Ended
	September 30				December 31
	2024		2023		2024		2023
	(in millions)
Innovative technology costs, pre-tax (incl. financing costs)	$	8	$	7	$	30	$	31
Operating loss, excl. innovative technology costs, pre-tax	$	(7)	$	(4)	$	(25)	$	(23)

Other Income (Costs) on the Consolidated Statements of Operations

●	Other income and costs include separate lines for interest income and interest expense.
●	The “Other, net” line primarily includes changes in cash surrender value of life insurance, expenses associated with non-operating properties, and the first quarter 2024, $28.7 million, pre-tax, noncash impairment charge to write off our equity investment in Phantom Auto, a provider of human-centered remote operation software, which ceased operations.
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●	The changes in cash surrender value of life insurance and the equity investment impairment charge are typically disclosed as non-GAAP reconciling items.
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●	As such, the non-GAAP amounts for “Other, net” are expected to be minimal.
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●	Projected amounts for third quarter and full year 2024, and actual amounts for third quarter and full year 2023, are included below.
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	Three Months Ended						Year Ended					****
	September 30						December 31
	2024		****	2023		****	2024		****	2023
	(in millions)
Interest and dividend income	$	3		$	4		$	12		$	15
Interest and other related financing costs	$	(2)		$	(2)		$	(10)		$	(9)
Other, net, excluding non-GAAP reconciling items	$	(1)		$	—		$	(2)		$	—

Forward-Looking Statements

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: Certain statements and information in this exhibit 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”).

Exhibit 99.3

2Q’24<br>Earnings<br>Presentation
Forward Looking Statements<br>2<br>The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: Certain statements and information in this presentation may constitute “forward-looking<br>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<br>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,”<br>“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<br>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<br>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<br>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<br>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<br>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<br>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<br>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<br>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<br>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,<br>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<br>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<br>resulting in increased volatility in freight volumes; competitive initiatives and pricing pressures; increased prices for and decreased availability of equipment, including new revenue equipment,<br>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<br>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<br>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<br>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<br>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;<br>governmental regulations; environmental laws and regulations, including emissions-control regulations; default on covenants of financing arrangements and the availability and terms of future<br>financing arrangements; our ability to generate sufficient cash from operations to support significant ongoing capital expenditure requirements and other business initiatives; self-insurance claims,<br>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<br>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;<br>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<br>Corporation’s public filings with the Securities and Exchange Commission (“SEC”).<br>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<br>SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.<br>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.
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Three-Point Strategy Continues to Deliver<br>Shareholder Value & Drive Business Growth<br>3<br>1 2 3<br>ENHANCED<br>SHAREHOLDER<br>VALUE<br>Increase Efficiency<br>Leverage technology<br>Optimize ABF network<br>Drive scale and productivity to<br>improve Asset-Light operating<br>margin<br>Drive Innovation<br>Develop and implement<br>disruptive and game changing<br>innovations<br>Launch new revenue streams<br>Co-create and scale with<br>customers<br>Accelerate Growth<br>Secure new customers<br>Expand with existing customers<br>through market penetration<br>Retain existing customers
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80% of revenue from<br>customers with 10+<br>year relationship<br>QUARTER IN REVIEW<br>4<br>Double Digit<br>Growth in Managed<br>Transportation<br>+38%<br>Pipeline This Year<br>Customer Demand is<br>Strong and Growing<br>Significant<br>Efficiency<br>Improvements<br>Best On-Time<br>Performance in<br>Five Years<br>$1B<br>Revenue Generated<br>C U S T O M E R - L E D S T R A T E G Y :
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LEADERSHIP CHANGES<br>5<br>Seth Runser named ArcBest<br>President – to oversee day-to-day<br>operations across the integrated<br>solutions<br>Judy R. McReynolds remains<br>Chairman and CEO – focused on<br>advancing strategy<br>Matt Godfrey named ABF President –<br>advancing the transformation of ABF
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✓ Enables Growth<br>✓ Improves Service<br>✓ Increases Efficiency<br>STRATEGIC FACILITY AND NETWORK ENHANCEMENTS<br>6<br>Strategically adding capacity: ~800<br>door expansion since 2021, with 316<br>adds in 2024, and another 40 in 1Q25<br>+16%<br>Productivity Improvement<br>at New Locations<br>79<br>Added in 2Q24<br>NEW<br>DOORS<br>A New Service Center<br>in Lithia Springs, GA.<br>Adding<br>Capacity:<br>8,820 8,820<br>8,955<br>9,254 9,307 9,386<br>9,504 9,570<br>135<br>299<br>53<br>79<br>118<br>66<br>40<br> 8,500<br> 8,700<br> 8,900<br> 9,100<br> 9,300<br> 9,500<br> 9,700<br>2021 2022 2023 1Q24 2Q24 3Q24 4Q24 1Q25<br>8,820<br>8,955<br>9,254 9,307<br>9,386<br>9,504 9,570<br>Projected<br>9,610<br>Ongoing remodels &<br>renovations across other<br>existing facilities<br>Net New<br>Doors Since<br>2021<br>Existing<br>Doors<br>New<br>Doors<br>Legend:
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CONTINUALLY RAISING THE BAR ON EXCELLENCE<br>7<br>• Culture of continuous improvement<br>• 40-years of using the Quality Process<br>to drive efficiencies<br>• Do-It-Right-The-First-Time<br>• Problem Elimination Process<br>• Relaunched commitment in 2024<br>as we accelerate into 2nd century<br>• Increase in new employees through<br>pandemic<br>• Focused efforts on training and<br>compliance beginning in our<br>largest locations and expanding<br>through the network<br>Exceeded<br>2Q Goal 3.8x<br>Process and compliance<br>training exceeding<br>expectations on net<br>revenue impact<br>Process and<br>compliance training<br>complete at 5% of<br>locations with<br>additional locations<br>planned beyond 2025<br>2Q Projected<br>Net Savings<br>2Q Actual<br>Net Savings<br>Locations<br>Completed<br>2H24<br>thru 1H25<br>2H25<br>and Beyond<br>11<br>64<br>166
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TRANSFORMING OPERATIONS<br>THROUGH ABF OPTIMIZATION<br>8<br>~70 projects in<br>Optimization portfolio<br>• 30% Operationalized<br>• 30% In pilot to expand stages<br>City Route Optimization<br>Phase 1 is complete and<br>saving $13M+ annually<br>City Route Optimization<br>Phases 2 and 3 pilots<br>underway<br>• Daily demand forecasting<br>• Optimizing the pickup process<br>2021 2022 2023 2024<br>Idea Pilot Learn Refine Expand Operationalize<br>$50K<br>$13M+<br>Iterative approach for optimization efforts<br>City Route Optimization Phase 1 Savings<br>Per Year<br>Per Year
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Non-GAAP<br>Operating Income<br>(2)<br>Key<br>Metrics<br>Q2 2024(1)<br>9<br>$1.08B<br>ArcBest<br>Consolidated Revenue<br>$64.2M<br>Non-GAAP<br>Operating Income<br>(2)<br>$1.98/diluted share<br>Non-GAAP<br>Net Income(2)<br>+25%<br>ARCBEST<br>CONSOLIDATED<br>(From Continuing Operations)<br>1) All comparisons are on a year-over-year basis.<br>2) See non-GAAP reconciliation in the Additional Information<br>section of this presentation.<br>Asset-Based Asset-Light<br>-2% +28%<br>+21M -$9M
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Key<br>Metrics<br>Q2 2024(1)<br>10<br>ASSET-BASED<br>1) All comparisons are on a year-over-year basis.<br>2) See non-GAAP reconciliation in the Additional Information<br>section of this presentation.<br>$713M<br>Revenue<br>Average Increase on<br>Contract Renewals and<br>Deferred Pricing Agreements<br>Daily Total<br>Tonnage<br>-20%<br>Daily Total<br>Shipments<br>-5%<br>Total Billed<br>Rev/CWT<br>+23%<br>5.1%<br>$72.8M<br>Non-GAAP Operating Income<br>(2)<br>89.8%<br>Non-GAAP Operating Ratio<br>(2)<br>300 bps improvement<br>+41%<br>-2% per day<br>Daily Core<br>Tonnage<br>Daily Core<br>Shipments<br>+11% +14%<br>2<br>nd Best Operating<br>Income in 2Q History<br>Weight/<br>Shipment<br>-16%
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Effective<br>Initiative<br>Management<br>Overcomes<br>Headwinds<br>(Non-GAAP) (1)<br>Strategy in Action<br>11<br>(1) Operating Income adjusted for certain unusual items.<br>See Reconciliations of GAAP to non-GAAP Financial<br>Measures in the Additional Information section of this<br>presentation.<br>I M P R O V E D A S S E T- B A S E D O P E R AT I N G I N C O M E<br>2Q23<br>Operating Income<br>(Non-GAAP) (1)<br>2Q24<br>Lower Revenue<br>• - Transactional<br>• - Soft Economy<br>• + More Core<br>• + Higher Yield<br>2Q24<br>Higher Labor<br>Contract Costs<br>• Union Wages +13%<br>• Union Benefits +4%<br>2Q24<br>Cost Savings<br>• Cost Management<br>• Productivity<br>• Network Efficiency<br>• Profit Optimization<br>2Q24<br>Operating Income<br>(Non-GAAP)<br>(1)
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Improvement<br>in Asset-Based<br>Operating<br>Ratio(1)<br>(Non-GAAP)<br>Strategy in Action<br>12<br>(1) Operating Ratio adjusted for certain unusual items.<br>See Reconciliations of GAAP to non-GAAP Financial<br>Measures in the Additional Information section of this<br>presentation.<br>840 bps<br>IMPROVEMENT<br>Compared to 2016<br>97.9%<br>96.9%<br>93.3%<br>94.5% 94.2%<br>88.8%<br>86.4%<br>90.4%<br>89.5%<br>2016 2017 2018 2019 2020 2021 2022 2023 2Q'24 TTM<br>FREIGHT RECESSION COVID-19 IMPACTS FREIGHT RECESSION
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Key<br>Metrics<br>13<br>Daily Billed<br>Revenue<br>Total Billed<br>Rev/CWT<br>ASSET-BASED<br>Daily Total<br>Tonnage<br>Daily Total<br>Shipments<br>+16%<br>Total Billed<br>Rev/Shipment<br>Total<br>Weight/Shipment<br>+1% -1%<br>J U LY 2 0 2 4 P R E L I M I N A RY<br>1) All comparisons are on a year-over-year basis.<br>-13% +1% -14%<br>JULY 2024(1)
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Purchased Transportation<br>as % of Revenue<br>Key<br>Metrics<br>Q2 2024(1)<br>ASSET-LIGHT<br>Revenue/<br>Shipment<br>$396M<br>Revenue<br>-4% per day<br>($2.5M)<br>Non-GAAP Operating Loss<br>(2)<br>($0.6M)<br>Adjusted EBITDA(2)<br>1) All comparisons are on a year-over-year basis.<br>2) See non-GAAP reconciliation in the Additional Information<br>section of this presentation.<br>-139%<br>-107%<br>86%<br>14<br>+13%<br>Daily Total<br>Shipments<br>-15%
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Key<br>Metrics<br>July 2024(1)<br>15<br>ASSET-LIGHT<br>Revenue/Day<br>-10%<br>1) All comparisons are on a year-over-year basis.<br>Revenue/Shipment<br>Daily Total Shipments<br>-10% 87%<br>+1%<br>Purchased Transportation<br>as % of Revenue<br>J U LY 2 0 2 4 P R E L I M I N A RY
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ARCBEST’S CUSTOMER-LED STRATEGY YIELDS RESULTS<br>16<br>Profit Revenue<br>Single-Solution Accounts Cross-Sold Accounts<br>>3x<br>Revenue & Profit per account<br>is over 3X higher in cross-sold accounts<br>Revenue<br>& Profit<br>3x 3x<br>>70%<br>Over 70% of our<br>customers who use<br>asset-light services<br>also utilize our<br>asset-based services<br>Single-Solution Accounts Cross-Sold Accounts<br>5%<br>Higher Customer Retention<br>A customer-focused growth strategy enables faster<br>and more efficient growth<br>Asset-Light +<br>Asset-Based<br>Retention rates are 5<br>percentage points higher on<br>cross-sold accounts than on<br>single-solution accounts
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17<br>BALANCED INVESTMENT APPROACH<br>Strong business performance enables ArcBest to invest organically in the business and provide<br>returns to shareholders while maintaining a solid balance sheet and investment-grade credit metrics<br>Strategic Growth Investments<br>Share Repurchases & Dividends<br>M&A Strategies<br>• Investing in strategic initiatives and innovative<br>projects to enhance revenue growth, optimize costs<br>and drive long-term shareholder value<br>• Projected 2024 Net Capital Expenditures<br>of $325M - $375M as part of a strategic, multi-year<br>investment plan for equipment, real estate,<br>innovation and technology<br>• Increased share repurchase program authorization to $125<br>million in early 2024<br>• Currently paying a $0.12/share quarterly dividend<br>• Returned $37 million, year-to-date, to shareholders<br>• Complementary to our solutions offered<br>• Strong culture fit, experienced leadership team and a<br>pathway to solid returns<br>• Strategic technology and innovative partnerships<br>Solid Financial Position<br>• Net cash position of $57 million<br>• $500M in Available Liquidity
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EXCELLENCE IN ACTION<br>18<br>10x Winner<br>ATA Excellence<br>in Security<br>The Only
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19<br>Note: ArcBest Corporation reports its financial results in accordance with generally accepted accounting principles (“GAAP”). However,<br>management believes that certain non-GAAP performance measures utilized for internal analysis provides analysts, investors, and others the<br>same information that we use internally for purposes of assessing our core operating performance and provides meaningful comparisons<br>between current and prior period results, as well as important information regarding performance trends. Accordingly, using these measures<br>improves comparability in analyzing our performance because it removes the impact of items from operating results that, in management's<br>opinion, do not reflect our core operating performance. Non-GAAP financial measures should be viewed in addition to, and not as an alternative<br>for, our reported results. These financial measures should not be construed as better measurements than operating income, operating cash flow,<br>net income or earnings per share, as determined under GAAP.<br>Reconciliations of GAAP to<br>Non-GAAP Financial Measures<br>(Unaudited)<br>ADDITIONAL INFORMATION
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ARCBEST CORPORATION – CONSOLIDATED Three Months Ended<br>Millions ($000,000), except per share data 6/30/2024 6/30/2023<br>Operating Income from Continuing Operations<br>Amounts on a GAAP basis $ 48.8 $ 42.1<br>Innovative technology costs, pre-tax (1) 8.3 14.8<br>Purchase accounting amortization, pre-tax (2) 3.2 3.2<br>Change in fair value of contingent consideration, pre-tax (3) 3.9 (10.0)<br>Non-GAAP amounts $ 64.2 $ 50.1<br>Net Income from Continuing Operations<br>Amounts on a GAAP basis $ 46.9 $ 39.6<br>Innovative technology costs, after-tax (includes related financing costs) (1) 6.4 11.2<br>Purchase accounting amortization, after-tax (2) 2.4 2.4<br>Change in fair value of contingent consideration, after-tax (3) 2.9 (7.5)<br>Change in fair value of equity investment, after-tax (4)<br>- (2.8)<br>Life insurance proceeds and changes in cash surrender value (0.4) (1.1)<br>Tax benefit from vested RSUs (5) (10.8) (3.9)<br>Non-GAAP amounts (6) $ 47.4 $ 38.0<br>Diluted Earnings Per Share from Continuing Operations<br>Amounts on a GAAP basis $ 1.96 $ 1.60<br>Innovative technology costs, after-tax (includes related financing costs) (1) 0.27 0.45<br>Purchase accounting amortization, after-tax (2) 0.10 0.10<br>Change in fair value of contingent consideration, after-tax (3) 0.12 (0.30)<br>Change in fair value of equity investment, after-tax (4)<br>- (0.11)<br>Life insurance proceeds and changes in cash surrender value (0.02) (0.04)<br>Tax benefit from vested RSUs (5) (0.45) (0.16)<br>Non-GAAP amounts (6) $ 1.98 $ 1.54<br>Reconciliations of<br>GAAP to Non-GAAP<br>Financial Measures<br>(Unaudited)<br>20<br>1) Represents costs related to our customer pilot offering of Vaux and initiatives<br>to optimize our performance through technological innovation. The 2023<br>period also includes costs associated with the freight handling pilot test<br>program at ABF Freight, for which the decision was made to pause the pilot<br>during third quarter 2023.<br>2) Represents the amortization of acquired intangible assets in the Asset-Light<br>segment.<br>3) Represents change in fair value of the contingent earnout consideration<br>recorded for the MoLo acquisition.<br>4) Represents the increase in fair value of our investment in Phantom Auto,<br>which ceased operations during first quarter 2024, based on observable price<br>changes during second quarter 2023.<br>5) Represents recognition of the tax impact for the vesting of share-based<br>compensation.<br>6) Non-GAAP amounts are calculated in total and may not equal the sum of the<br>GAAP amounts and the non-GAAP adjustments due to rounding.
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Reconciliations of<br>GAAP to Non<br>-GAAP<br>Financial Measures<br>(Unaudited)<br>21<br>1) Adjusted EBITDA is a primary component of the financial covenants contained<br>in ArcBest Corporation’s Fourth Amended and Restated Credit Agreement.<br>Management believes Adjusted EBITDA to be relevant and useful information,<br>as EBITDA is a standard measure commonly reported and widely used by<br>analysts, investors, and others to measure financial performance and ability to<br>service debt obligations. Furthermore, management uses Adjusted EBITDA<br>as a key measure of performance and for business planning. However, these<br>non<br>-GAAP financial measures should not be construed as better<br>measurements than operating income (loss), net income, or earnings per<br>share, as determined under GAAP. Non<br>-GAAP financial measures should be<br>viewed in addition to, and not as an alternative for, our reported results. Other<br>companies may calculate EBITDA differently; therefore, our Adjusted EBITDA<br>may not be comparable to similarly titled measures of other companies.<br>2) Includes amortization of intangibles associated with acquired businesses.<br>3) Represents change in fair value of the contingent earnout consideration<br>recorded for the MoLo acquisition.<br>4) Represents noncash lease<br>-related impairment charges for a Vaux pilot facility,<br>a service center and office spaces that were made available for sublease.<br>5) Represents estimated settlement expenses related to the classification of<br>certain Asset<br>-Light employees under the Fair Labor Standards Act.<br>6) Represents a noncash impairment charge to write off our equity investment in<br>Phantom Auto, a provider of human<br>-centered remote operation software,<br>which ceased operations during first quarter 2024.<br>7) Adjusted EBITDA amounts are calculated in total and may not equal the sum<br>of the Net Income and the adjustments due to rounding.<br>Three Months Ended<br>ASSET<br>-LIGHT ADJUSTED EBITDA (1)<br>6/30/2024 6/30/2023<br>($ millions)<br>Operating Income (Loss) $ (9.5) $ 13.2<br>Depreciation and amortization (2) 5.0 5.1<br>Change in fair value of contingent consideration (3) 3.9 (10.0)<br>Adjusted EBITDA<br>$ (0.6)<br>$ 8.3<br>CONSOLIDATED ADJUSTED EBITDA (1) Twelve Months Ended<br>6/30/2024<br>($ millions)<br>Net Income from Continuing Operations<br>$ 127.7<br>Interest and other related financing costs 8.9<br>Income tax provision 31.5<br>Depreciation and amortization (2) 147.6<br>Amortization of share<br>-based compensation 12.2<br>Change in fair value of contingent consideration (3) (13.0)<br>Lease impairment charges (4) 30.2<br>Legal settlement (5) 9.5<br>Change in fair value of equity investment (6) 28.7<br>Consolidated Adjusted EBITDA (7)<br>$ 383.4
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Reconciliations of<br>GAAP to Non-GAAP<br>Financial Measures<br>(Unaudited)<br>22<br>1) Represents costs associated with the freight handling pilot test program at<br>ABF Freight, for which the decision was made to pause the pilot during third<br>quarter 2023.<br>2) Non-GAAP amounts are calculated in total and may not equal the sum of the<br>GAAP amounts and the non-GAAP adjustments due to rounding.<br>3) Represents the amortization of acquired intangible assets in the Asset-Light<br>segment.<br>4) Represents change in fair value of the contingent earnout consideration<br>recorded for the MoLo acquisition.<br>Three Months Ended<br>Millions ($000,000) 6/30/2024 6/30/2023<br>ASSET-BASED<br>Operating Income<br>Amounts on a GAAP basis $ 72.8 89.8% $ 43.3 94.0%<br>Innovative technology costs, pre-tax (1)<br>- - 8.3 (1.1)<br>Non-GAAP amounts (2) $ 72.8 89.8% $ 51.7 92.8%<br>ASSET-LIGHT<br>Operating Income (Loss)<br>Amounts on a GAAP basis $ (9.5) 102.4% $ 13.2 96.8%<br>Purchase accounting amortization, pre-tax (3) 3.2 (0.8) 3.2 (0.8)<br>Change in fair value of contingent consideration, pre-tax (4) 3.9 (1.0) (10.0) 2.4<br>Non-GAAP amounts (2) $ (2.5) 100.6% $ 6.4 98.4%
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