ARCB 8-K
Arcbest Corp /Tx/ (ARCB)
June 30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 29, 2025 (
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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.
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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 April 29, 2025, ArcBest® (Nasdaq: ARCB) (the “Company”) issued a press release announcing its unaudited first quarter 2025 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 first 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
Exhibit No. | Description of Exhibit | |
99.1 | ||
99.2 | ||
99.3 | ||
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: | April 29, 2025 | /s/ Michael R. Johns | |
Michael R. Johns | |||
Chief Legal Officer and Corporate Secretary | |||
Exhibit 99.1
Investor Relations Contact: Amy Mendenhall | Media Contact: Autumnn Mahar |
Phone: 479-785-6200 | Phone: 479-494-8221 |
Email: [email protected] | Email: [email protected] |
ArcBest Announces First Quarter 2025 Results
| ● | Continued productivity gains driven by technology, training, and network design |
| ● | Record Managed solution shipment levels despite challenging freight environment |
| ● | Over $24 million returned to shareholders through share repurchases and dividends |
FORT SMITH, Arkansas, April 29, 2025 — ArcBest® (Nasdaq: ARCB), a leader in supply chain logistics, today reported first quarter 2025 revenue of $967.1 million, compared to $1.0 billion in first quarter 2024. Net income from continuing operations was $3.1 million, or $0.13 per diluted share, compared to a net loss of $2.9 million, or $0.12 per diluted share in the prior year. On a non-GAAP basis, first quarter 2025 net income was $11.9 million, or $0.51 per diluted share, compared to $32.3 million, or $1.34 per diluted share in the prior year.
"I want to thank our employees for their commitment to excellence as they serve customers,” said Judy R. McReynolds, ArcBest Chairman and CEO. “Customers need trusted partners to help them navigate the ever-changing environment, and I’m proud of our employees for working hand-in-hand with customers to develop solutions, solve challenges and build trust.”
Results of Operations Comparisons
Asset-Based
First Quarter 2025 Versus First Quarter 2024
| ● | Revenue of $646.3 million compared to $671.5 million, a per-day decrease of 3.0 percent |
| ● | Total tonnage per day decrease of 4.3 percent |
| ● | Total shipments per day were flat |
| ● | Total billed revenue per hundredweight increase of 1.7 percent |
| ● | Operating income of $26.4 million and an operating ratio of 95.9 percent, compared to $53.5 million and an operating ratio of 92.0 percent |
Asset-Based first quarter tonnage declines were driven by a 3.9 percent decrease in weight per shipment and flat daily shipments. Prolonged manufacturing sector weakness continues to negatively impact weight per shipment metrics and profitability. Productivity improvements of 1.1 percent and other cost initiatives helped mitigate the impact of the soft market environment, higher insurance and healthcare costs, and annual labor cost increases associated with ABF’s union contract.
Customer contract renewals and deferred pricing agreements saw an average increase of 4.9 percent during the quarter. Price improvements were offset by declining fuel costs. Excluding fuel surcharges, revenue per hundredweight increased in the low- to mid-single digits, year-over-year. Overall, LTL industry pricing remains rational.
Compared sequentially to the fourth quarter of 2024, first quarter 2025 revenue per day decreased 3.9 percent. Weight per shipment declined 1.7 percent and shipments per day declined by 1.1 percent, resulting in a 2.7 percent decrease in tonnage per day. Billed revenue per hundredweight was flat. Lower tonnage, offset in part by cost savings, resulted in the operating ratio increase of 390 basis points sequentially, which was within the historical seasonality range of a 350 to 400 basis point increase.
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Asset-Light
First Quarter 2025 Versus First Quarter 2024
| ● | Revenue of $356.0 million compared to $396.4 million, a per-day decrease of 9.5 percent |
| ● | Operating loss of $4.4 million compared to operating loss of $15.3 million |
| ● | On a non-GAAP basis, operating loss of $1.2 million compared to operating loss of $4.7 million |
Compared to the first quarter of 2024, Asset-Light revenues were impacted by lower revenue per shipment associated with the soft rate environment and a higher mix of managed transportation business, which has smaller shipment sizes and lower revenue per shipment metrics. Shipments per day were lower by 3.7 percent, from a strategic reduction in less profitable truckload volumes, which offset the continued strength in shipment growth for our Managed solution. The segment benefitted from improved margins, lower operating costs and productivity improvements, as shipments per employee per day improved 23.6 percent, on a year-over-year basis. However, the soft freight environment and excess truckload capacity continued to impact results.
Compared sequentially to fourth quarter 2024, first quarter 2025 daily revenue was down 7.4 percent, as shipments per day decreased 1.4 percent, and revenue per shipment decreased 6.1 percent. Shipments per employee per day improved 5.0 percent, margins expanded, and operating costs were managed lower, resulting in a $4.7 million improvement in the non-GAAP operating loss.
Conference Call
ArcBest will host a conference call with company executives to discuss the quarterly results. The call will be today, Tuesday, April 29, 2025, 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 April 29, 2025, 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 May 13, 2025. To listen to the playback, dial (800) 770-2030. The conference call ID for the live conference call and the playback is 6423434. The conference call and playback can also be accessed through May 13, 2025, 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 14,000 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.
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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,” “designed,” “estimate,” “expect,” “forecast,” “foresee,” “intend,” “likely,” “may,” “plan,” “predict,” “project,” “scheduled,” “seek,” “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 and caution the reader not to place undue reliance on our forward-looking statements. 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: 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, including but not limited to licensed software; untimely or ineffective development and implementation of, or failure to realize the potential benefits associated with, new or enhanced technology or processes; 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 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 or actions by activist investors; maintaining our corporate reputation and intellectual property rights; establishing and maintaining adequate internal controls over financial reporting; 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, 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; the effects, costs and potential liabilities related to changes in and compliance with, or violation of, existing or future governmental laws and regulations, including, but not limited to, environmental laws and regulations, such as emissions-control regulations and fuel efficiency 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; 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, the occurrence of natural disasters, health epidemics, geopolitical conflicts, acts of war, cybersecurity incidents, or trade restrictions; 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, 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 8-K.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events, or otherwise.
Financial Data and Operating Statistics
The following tables show financial data and operating statistics on ArcBest® and its reportable segments.
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ARCBEST CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
| | Three Months Ended | | ||||
| | March 31 | | ||||
|
| 2025 |
| 2024 |
| ||
| | (Unaudited) | | ||||
| | ($ thousands, except share and per share data) | | ||||
REVENUES | | $ | 967,077 | | $ | 1,036,419 | |
| | | | | | | |
OPERATING EXPENSES | |
| 960,447 | | | 1,013,984 | |
| | | | | | | |
OPERATING INCOME | |
| 6,630 | |
| 22,435 | |
| | | | | | | |
OTHER INCOME (COSTS) | | | | | | | |
Interest and dividend income | |
| 1,150 | |
| 3,315 | |
Interest and other related financing costs | |
| (2,755) | |
| (2,228) | |
Other, net | |
| (851) | |
| (28,199) | |
| |
| (2,456) | |
| (27,112) | |
| | | | | | | |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | |
| 4,174 | |
| (4,677) | |
| | | | | | | |
INCOME TAX PROVISION (BENEFIT) | |
| 1,043 | |
| (1,765) | |
| | | | | | | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | | | 3,131 | | | (2,912) | |
| | | | | | | |
INCOME FROM DISCONTINUED OPERATIONS, net of tax(1) | | | — | | | 600 | |
| | | | | | | |
NET INCOME (LOSS) | | $ | 3,131 | | $ | (2,312) | |
| | | | | | | |
BASIC EARNINGS PER COMMON SHARE(2) | | | | | | | |
Continuing operations | | $ | 0.13 | | $ | (0.12) | |
Discontinued operations(1) | | | — | | | 0.03 | |
| | $ | 0.13 | | $ | (0.10) | |
| | | | | | | |
DILUTED EARNINGS PER COMMON SHARE(2) | | | | | | | |
Continuing operations | | $ | 0.13 | | $ | (0.12) | |
Discontinued operations(1) | | | — | | | 0.03 | |
| | $ | 0.13 | | $ | (0.10) | |
| | | | | | | |
AVERAGE COMMON SHARES OUTSTANDING | | | | | | | |
Basic | |
| 23,198,805 | |
| 23,561,309 | |
Diluted | |
| 23,272,766 | |
| 23,561,309 | |
| 1) | Represents adjustments related to the gain on sale of FleetNet America® (“FleetNet”), which sold on February 28, 2023. |
| 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. |
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ARCBEST CORPORATION
| | March 31 | | December 31 | | ||
|
| 2025 |
| 2024 |
| ||
| | (Unaudited) | | ||||
| | ($ thousands, except share data) | | ||||
ASSETS | | | | | | | |
CURRENT ASSETS | | | | | | | |
Cash and cash equivalents | | $ | 74,122 | | $ | 127,444 | |
Short-term investments | |
| 24,552 | |
| 29,759 | |
Accounts receivable, less allowances (2025 - $8,269; 2024 - $8,257) | |
| 414,133 | |
| 394,838 | |
Other accounts receivable, less allowances (2025 - $656; 2024 - $648) | |
| 25,027 | |
| 36,055 | |
Prepaid expenses | |
| 46,666 | |
| 47,860 | |
Prepaid and refundable income taxes | |
| 29,106 | |
| 28,641 | |
Other | |
| 11,557 | |
| 11,045 | |
TOTAL CURRENT ASSETS | |
| 625,163 | |
| 675,642 | |
| | | | | | | |
PROPERTY, PLANT AND EQUIPMENT | | | | | | | |
Land and structures | |
| 530,957 | |
| 520,119 | |
Revenue equipment | |
| 1,160,332 | |
| 1,166,161 | |
Service, office, and other equipment | |
| 352,383 | |
| 351,907 | |
Software | |
| 185,526 | |
| 182,396 | |
Leasehold improvements | |
| 33,368 | |
| 32,263 | |
| | | 2,262,566 | | | 2,252,846 | |
Less allowances for depreciation and amortization | |
| 1,199,180 | |
| 1,186,800 | |
PROPERTY, PLANT AND EQUIPMENT, net | |
| 1,063,386 | |
| 1,066,046 | |
| | | | | | | |
GOODWILL | |
| 304,753 | |
| 304,753 | |
INTANGIBLE ASSETS, net | |
| 85,449 | |
| 88,615 | |
OPERATING RIGHT-OF-USE ASSETS | | | 228,684 | | | 192,753 | |
DEFERRED INCOME TAXES | |
| 9,273 | |
| 9,536 | |
OTHER LONG-TERM ASSETS | | | 90,176 | | | 92,386 | |
TOTAL ASSETS | | $ | 2,406,884 | | $ | 2,429,731 | |
| | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | |
CURRENT LIABILITIES | | | | | | | |
Accounts payable | | $ | 166,869 | | $ | 168,943 | |
Accrued expenses | |
| 356,702 | |
| 398,700 | |
Current portion of long-term debt | |
| 66,692 | |
| 63,978 | |
Current portion of operating lease liabilities | | | 34,080 | | | 34,364 | |
TOTAL CURRENT LIABILITIES | |
| 624,343 | |
| 665,985 | |
| | | | | | | |
LONG-TERM DEBT, less current portion | |
| 147,528 | |
| 125,156 | |
OPERATING LEASE LIABILITIES, less current portion | | | 214,606 | | | 189,978 | |
POSTRETIREMENT LIABILITIES, less current portion | |
| 13,378 | |
| 13,361 | |
DEFERRED INCOME TAXES | |
| 79,315 | |
| 78,649 | |
OTHER LONG-TERM LIABILITIES | |
| 32,970 | |
| 42,240 | |
| | | | | | | |
STOCKHOLDERS’ EQUITY | | | | | | | |
Common stock, $0.01 par value, authorized 70,000,000 shares; | |
| 304 | |
| 304 | |
Additional paid-in capital | |
| 331,944 | |
| 329,575 | |
Retained earnings | |
| 1,435,596 | |
| 1,435,250 | |
Treasury stock, at cost, 2025: 7,373,609 shares; 2024: 7,114,844 shares | |
| (473,029) | |
| (451,039) | |
Accumulated other comprehensive income (loss) | |
| (71) | |
| 272 | |
TOTAL STOCKHOLDERS’ EQUITY | |
| 1,294,744 | |
| 1,314,362 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 2,406,884 | | $ | 2,429,731 | |
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ARCBEST CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
| | Three Months Ended | | ||||
| | March 31 | | ||||
|
| 2025 |
| 2024 |
| ||
| | (Unaudited) | | ||||
| | ($ thousands) | | ||||
OPERATING ACTIVITIES | | | | | | | |
Net income (loss) | | $ | 3,131 | | $ | (2,312) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | | | | | | | |
Depreciation and amortization | |
| 36,764 | |
| 33,616 | |
Amortization of intangibles | |
| 3,200 | |
| 3,217 | |
Share-based compensation expense | |
| 2,383 | |
| 2,889 | |
Provision for losses on accounts receivable | |
| 1,129 | |
| 1,055 | |
Change in deferred income taxes | |
| 764 | |
| (12,548) | |
(Gain) loss on sale of property and equipment | |
| (49) | |
| 217 | |
Pre-tax gain on sale of discontinued operations | | | — | | | (806) | |
Change in fair value of contingent consideration | | | — | | | 7,320 | |
Change in fair value of equity investment | | | — | | | 28,739 | |
Changes in operating assets and liabilities: | | | | | | | |
Receivables | |
| (9,615) | |
| 35,059 | |
Prepaid expenses | |
| 1,194 | |
| (2,198) | |
Other assets | |
| 156 | |
| (1,218) | |
Income taxes | |
| (248) | |
| (8,305) | |
Operating right-of-use assets and lease liabilities, net | |
| (11,587) | |
| (7,710) | |
Accounts payable, accrued expenses, and other liabilities | |
| (49,543) | |
| (70,548) | |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | |
| (22,321) | |
| 6,467 | |
| | | | | | | |
INVESTING ACTIVITIES | | | | | | | |
Purchases of property, plant and equipment, net of financings | |
| (14,523) | |
| (55,049) | |
Proceeds from sale of property and equipment | |
| 3,276 | |
| 1,292 | |
Purchases of short-term investments | |
| — | |
| (5,236) | |
Proceeds from sale of short-term investments | |
| 5,236 | |
| 5,635 | |
Capitalization of internally developed software | |
| (3,122) | |
| (3,635) | |
NET CASH USED IN INVESTING ACTIVITIES | |
| (9,133) | |
| (56,993) | |
| | | | | | | |
FINANCING ACTIVITIES | | | | | | | |
Borrowings under credit facilities | |
| 25,000 | |
| — | |
Payments on long-term debt | |
| (17,317) | |
| (16,767) | |
Net change in book overdrafts | |
| (4,762) | |
| (2,850) | |
Payment of common stock dividends | |
| (2,785) | |
| (2,828) | |
Purchases of treasury stock | | | (21,990) | | | (15,652) | |
Payments for tax withheld on share-based compensation | |
| (14) | |
| (748) | |
NET CASH USED IN FINANCING ACTIVITIES | |
| (21,868) | |
| (38,845) | |
| | | | | | | |
NET DECREASE IN CASH AND CASH EQUIVALENTS | |
| (53,322) | |
| (89,371) | |
Cash and cash equivalents at beginning of period | |
| 127,444 | |
| 262,226 | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | | $ | 74,122 | | $ | 172,855 | |
| | | | | | | |
NONCASH INVESTING ACTIVITIES | | | | | | | |
Equipment financed | | $ | 17,403 | | $ | — | |
Accruals for equipment received | | $ | 1,236 | | $ | 915 | |
Lease liabilities arising from obtaining right-of-use assets | | $ | 32,909 | | $ | 5,694 | |
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ARCBEST CORPORATION
FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS
| Three Months Ended | | |||||||||
| March 31 | | |||||||||
| 2025 |
| | 2024 |
| ||||||
| (Unaudited) | | |||||||||
| ($ thousands, except percentages) | | |||||||||
REVENUES FROM CONTINUING OPERATIONS | | | | | | | | | | | |
Asset-Based | $ | 646,294 |
| |
|
| $ | 671,467 |
| |
|
Asset-Light |
| 356,012 | | | | |
| 396,363 | | | |
Other and eliminations |
| (35,229) | | | | |
| (31,411) | | | |
Total consolidated revenues from continuing operations | $ | 967,077 |
| |
|
| $ | 1,036,419 | | |
|
| | | | | | | | | | | |
OPERATING EXPENSES FROM CONTINUING OPERATIONS | | | | ||||||||
Asset-Based | | | | | | | | | | | |
Salaries, wages, and benefits | $ | 344,141 | | 53.2 | % | | $ | 344,999 | | 51.4 | % |
Fuel, supplies, and expenses |
| 77,642 | | 12.0 | | |
| 81,044 | | 12.1 | |
Operating taxes and licenses |
| 13,112 | | 2.0 | | |
| 13,529 | | 2.0 | |
Insurance |
| 17,963 | | 2.8 | | |
| 14,482 | | 2.1 | |
Communications and utilities |
| 5,810 | | 0.9 | | |
| 4,799 | | 0.7 | |
Depreciation and amortization |
| 30,590 | | 4.7 | | |
| 27,007 | | 4.0 | |
Rents and purchased transportation |
| 67,161 | | 10.4 | | |
| 65,671 | | 9.8 | |
Shared services |
| 62,443 | | 9.7 | | |
| 64,914 | | 9.7 | |
Loss on sale of property and equipment |
| 23 | | — | | |
| 149 | | — | |
Other |
| 992 | | 0.2 | | |
| 1,417 | | 0.2 | |
Total Asset-Based | | 619,877 | | 95.9 | % | | | 618,011 | | 92.0 | % |
| | | | | | | | | | | |
Asset-Light | | | | | | | | | | | |
Purchased transportation | $ | 304,614 | | 85.6 | % | | $ | 344,122 | | 86.8 | % |
Salaries, wages, and benefits | | 25,549 | | 7.2 | | | | 30,304 | | 7.6 | |
Supplies and expenses | | 1,739 | | 0.5 | | |
| 2,809 | | 0.7 | |
Depreciation and amortization(1) |
| 4,618 | | 1.3 | | |
| 5,078 | | 1.3 | |
Shared services | | 17,981 | | 5.0 | | |
| 16,274 | | 4.1 | |
Contingent consideration(2) | | — | | — | | |
| 7,320 | | 1.8 | |
Other |
| 5,891 | | 1.6 | | |
| 5,714 | | 1.5 | |
Total Asset-Light |
| 360,392 | | 101.2 | % | |
| 411,621 | | 103.8 | % |
| | | | | | | | | | | |
Other and eliminations(3) |
| (19,822) | | | | |
| (15,648) | | | |
Total consolidated operating expenses from continuing operations | $ | 960,447 | | 99.3 | % | | $ | 1,013,984 | | 97.8 | % |
| | | | | | | | | | | |
OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS | | | | ||||||||
Asset-Based | $ | 26,417 | | | | | $ | 53,456 | | | |
Asset-Light |
| (4,380) | | | | |
| (15,258) | | | |
Other and eliminations(3) |
| (15,407) | | | | |
| (15,763) | | | |
Total consolidated operating income from continuing operations | $ | 6,630 | | | | | $ | 22,435 | | | |
| 1) | Includes amortization of intangibles associated with acquired businesses. |
| 2) | 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. |
| 3) | “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. |
7
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 (loss) or earnings per share, as determined under GAAP.
| | Three Months Ended | | ||||
| | March 31 | | ||||
|
| 2025 | | 2024 |
| ||
ArcBest Corporation - Consolidated | | (Unaudited) | | ||||
| | ($ thousands, except per share data) | | ||||
Operating Income from Continuing Operations | | | | | | | |
Amounts on GAAP basis | | $ | 6,630 | | $ | 22,435 | |
Innovative technology costs, pre-tax(1) | | | 7,513 | | | 9,698 | |
Purchase accounting amortization, pre-tax(2) | | | 3,192 | | | 3,192 | |
Change in fair value of contingent consideration, pre-tax(3) | | | — | | | 7,320 | |
Non-GAAP amounts | | $ | 17,335 | | $ | 42,645 | |
| | | | | | | |
Net Income (Loss) from Continuing Operations | | | | | | | |
Amounts on GAAP basis | | $ | 3,131 | | $ | (2,912) | |
Innovative technology costs, after-tax (includes related financing costs)(1) | | | 5,724 | | | 7,440 | |
Purchase accounting amortization, after-tax(2) | | | 2,398 | | | 2,401 | |
Change in fair value of contingent consideration, after-tax(3) | | | — | | | 5,505 | |
Change in fair value of equity investment, after-tax(4) | | | — | | | 21,603 | |
Life insurance proceeds and changes in cash surrender value | | | 687 | | | (1,233) | |
Tax benefit from vested RSUs(5) | | | (3) | | | (487) | |
Non-GAAP amounts | | $ | 11,937 | | $ | 32,317 | |
| | | | | | | |
Diluted Earnings Per Share from Continuing Operations(6) | | | | | | | |
Amounts on GAAP basis | | $ | 0.13 | | $ | (0.12) | |
Innovative technology costs, after-tax (includes related financing costs)(1) | | | 0.25 | | | 0.31 | |
Purchase accounting amortization, after-tax(2) | | | 0.10 | | | 0.10 | |
Change in fair value of contingent consideration, after-tax(3) | | | — | | | 0.23 | |
Change in fair value of equity investment, after-tax(4) | | | — | | | 0.90 | |
Life insurance proceeds and changes in cash surrender value | | | 0.03 | | | (0.05) | |
Tax benefit from vested RSUs(5) | | | — | | | (0.02) | |
Non-GAAP amounts(7) | | $ | 0.51 | | $ | 1.34 | |
See “Notes to Non-GAAP Financial Tables” for footnotes to this ArcBest Corporation – Consolidated non-GAAP table.
8
ARCBEST CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued
| | Three Months Ended | | ||||||||||
| | March 31 | | ||||||||||
|
| 2025 | | 2024 | | ||||||||
Segment Operating Income (Loss) Reconciliations | | (Unaudited) | | ||||||||||
| | ($ thousands, except percentages) | | ||||||||||
Asset-Based Segment | | | | ||||||||||
Operating Income ($) and Operating Ratio (% of revenues) | | | | ||||||||||
Amounts on GAAP basis | | $ | 26,417 | | 95.9 | % | | $ | 53,456 | | 92.0 | % | |
| | | | ||||||||||
Asset-Light Segment | | | | ||||||||||
Operating Loss ($) and Operating Ratio (% of revenues) | | | | ||||||||||
Amounts on GAAP basis | | $ | (4,380) | | 101.2 | % | | $ | (15,258) | | 103.8 | % | |
Purchase accounting amortization, pre-tax(2) | | | 3,192 | | (0.9) | | | | 3,192 | | (0.8) | | |
Change in fair value of contingent consideration, pre-tax(3) | | | — | | — | | | | 7,320 | | (1.8) | | |
Non-GAAP amounts(7) | | $ | (1,188) | | 100.3 | % | | $ | (4,746) | | 101.2 | % | |
| | | | ||||||||||
Other and Eliminations | | | | ||||||||||
Operating Loss ($) | | | | ||||||||||
Amounts on GAAP basis | | $ | (15,407) | | | | | $ | (15,763) | | | | |
Innovative technology costs, pre-tax(1) | | | 7,513 | | | | | | 9,698 | | | | |
Non-GAAP amounts | | $ | (7,894) | | | | | $ | (6,065) | | | | |
Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this Segment Operating Income (Loss) Reconciliations non-GAAP table.
9
ARCBEST CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued
Effective Tax Rate Reconciliation | | | | | | | | | | | | | | | ||||
ArcBest Corporation - Consolidated | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
(Unaudited) | | | | | | | | | | | | | | | | | | |
($ thousands, except percentages) | | Three Months Ended March 31, 2025 | ||||||||||||||||
| | | | | Other | | Income | | Income | | | | | | ||||
CONTINUING OPERATIONS | | Operating | | Income | | Before Income | | Tax | | Net | | | ||||||
| | Income | | (Costs) | | Taxes | | Provision | | Income | | Tax Rate(8) | ||||||
Amounts on GAAP basis | | $ | 6,630 | | $ | (2,456) | | $ | 4,174 | | $ | 1,043 | | $ | 3,131 | | 25.0 | % |
Innovative technology costs(1) | | | 7,513 | | | 98 | | | 7,611 | | | 1,887 | | | 5,724 | | 24.8 | |
Purchase accounting amortization(2) | | | 3,192 | | | — | | | 3,192 | | | 794 | | | 2,398 | | 24.9 | |
Life insurance proceeds and changes in cash surrender value | | | — | | | 687 | | | 687 | | | — | | | 687 | | — | |
Tax benefit from vested RSUs(5) | | | — | | | — | | | — | | | 3 | | | (3) | | — | |
Non-GAAP amounts | | $ | 17,335 | | $ | (1,671) | | $ | 15,664 | | $ | 3,727 | | $ | 11,937 | | 23.8 | % |
| | Three Months Ended March 31, 2024 | ||||||||||||||||
| | | | Other | | Income (Loss) | | Income Tax | | Net | | | | |||||
CONTINUING OPERATIONS | | Operating | | Income | | Before Income | | Provision | | Income | | | ||||||
| | Income | | (Costs) | | Taxes | | (Benefit) | | (Loss) | | Tax Rate(8) | ||||||
Amounts on GAAP basis | | $ | 22,435 | | $ | (27,112) | | $ | (4,677) | | $ | (1,765) | | $ | (2,912) | | (37.7) | % |
Innovative technology costs(1) | | | 9,698 | | | 195 | | | 9,893 | | | 2,453 | | | 7,440 | | 24.8 | |
Purchase accounting amortization(2) | | | 3,192 | | | — | | | 3,192 | | | 791 | | | 2,401 | | 24.8 | |
Change in fair value of contingent consideration(3) | | | 7,320 | | | — | | | 7,320 | | | 1,815 | | | 5,505 | | 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 | | | — | | | (1,233) | | | (1,233) | | | — | | | (1,233) | | — | |
Tax benefit from vested RSUs(5) | | | — | | | — | | | — | | | 487 | | | (487) | | — | |
Non-GAAP amounts | | $ | 42,645 | | $ | 589 | | $ | 43,234 | | $ | 10,917 | | $ | 32,317 | | 25.3 | % |
Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this Effective Tax Rate Reconciliation non-GAAP table.
10
ARCBEST CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (Adjusted EBITDA)
Management uses Adjusted EBITDA as a key measure of performance and for business planning. The measure is particularly meaningful for analysis of operating performance because it excludes amortization of acquired intangibles and software of the Asset-Light segment, changes in the fair values of contingent consideration and equity investment, which are significant expenses or gains resulting from strategic decisions or other factors rather than core daily operations. Additionally, Adjusted EBITDA is a primary component of the financial covenants contained in our credit agreement. The calculation of Consolidated Adjusted EBITDA as presented below begins with net income (loss) from continuing operations, which is the most directly comparable GAAP measure. The calculation of Asset-Light Adjusted EBITDA as presented below begins with operating loss, as other income (costs), income taxes, and net income (loss) 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 | | ||||
| | March 31 | | ||||
|
| 2025 |
| 2024 |
| ||
| | (Unaudited) | | ||||
| | ($ thousands) | | ||||
ArcBest Corporation - Consolidated Adjusted EBITDA from Continuing Operations | | | |||||
Net Income (Loss) from Continuing Operations | | $ | 3,131 | | $ | (2,912) | |
Interest and other related financing costs | |
| 2,755 | |
| 2,228 | |
Income tax provision (benefit) | |
| 1,043 | |
| (1,765) | |
Depreciation and amortization(9) | |
| 39,964 | |
| 36,833 | |
Amortization of share-based compensation | |
| 2,383 | |
| 2,889 | |
Change in fair value of contingent consideration(3) | |
| — | |
| 7,320 | |
Change in fair value of equity investment(4) | | | — | |
| 28,739 | |
Consolidated Adjusted EBITDA from Continuing Operations | | $ | 49,276 | | $ | 73,332 | |
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 | | ||||
| | March 31 | | ||||
|
| 2025 | | 2024 | | ||
| | (Unaudited) | | ||||
| | ($ thousands) | | ||||
Asset-Light Adjusted EBITDA | | | | | | | |
Operating Loss | | $ | (4,380) | | $ | (15,258) | |
Depreciation and amortization(9) | | | 4,618 | | | 5,078 | |
Change in fair value of contingent consideration(3) | | | — | | | 7,320 | |
Asset-Light Adjusted EBITDA | | $ | 238 | | $ | (2,860) | |
Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this Asset-Light Adjusted EBITDA non-GAAP table.
11
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. |
| 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) | Represents a noncash impairment charge to write off an equity investment in Phantom Auto, a provider of human-centered remote operation software, which ceased operations during first quarter 2024. |
| 5) | Represents recognition of the tax impact for the vesting of share-based compensation. |
| 6) | For first quarter 2024, ArcBest reported a net loss on a GAAP basis and reported net income on a non-GAAP basis. The average common shares outstanding used to calculate non-GAAP diluted earnings per share for first quarter 2024 were adjusted to include unvested restricted stock awards, which were excluded from the calculation of GAAP diluted earnings per share due to the net loss. |
|
| Three Months Ended | | |
| | March 31, 2024 | | |
Average Common Shares Outstanding | | | | |
Diluted shares on GAAP basis | | | 23,561,309 | |
Effect of unvested restricted stock awards | |
| 568,770 | |
Non-GAAP diluted shares | | | 24,130,079 | |
| 7) | Non-GAAP amounts are calculated in total and may not equal the sum of GAAP amounts and non-GAAP adjustments due to rounding. |
| 8) | 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. |
12
ARCBEST CORPORATION
OPERATING STATISTICS
| | Three Months Ended | | ||||||
| | March 31 | | ||||||
|
| 2025 |
| 2024 |
| % Change |
| ||
| | (Unaudited) | | ||||||
Asset-Based | | | | | | | | | |
| | | | | | | | | |
Workdays |
| | 63.0 |
| | 63.5 | | |
|
| | | | | | | | | |
Billed Revenue(1) / CWT | | $ | 49.40 | | $ | 48.56 |
| 1.7% | |
| | | | | | | | | |
Billed Revenue(1) / Shipment | | $ | 530.49 | | $ | 542.84 |
| (2.3%) | |
| | | | | | | | | |
Tonnage / Day | |
| 10,466 | |
| 10,937 |
| (4.3%) | |
| | | | | | | | | |
Shipments / Day | |
| 19,491 | |
| 19,566 |
| (0.4%) | |
| | | | | | | | | |
Shipments / DSY hour | |
| 0.447 | |
| 0.442 |
| 1.1% | |
| | | | | | | | | |
Weight / Shipment | |
| 1,074 | |
| 1,118 | | (3.9%) | |
| | | | | | | | | |
Average Length of Haul (Miles) | |
| 1,124 | |
| 1,110 |
| 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 | ||
|
| March 31, 2025 | ||
| | (Unaudited) | ||
Asset-Light | | | | |
| | | | |
Revenue / Shipment | | | (5.9%) | |
| | | | |
Shipments / Day | | | (3.7%) | |
| | | | |
Shipments / Employee / Day | | | 23.6% | |
###
13
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 first quarter 2025 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 April 2025 have not been finalized and are preliminary. |
| ● | There are 21.5 workdays in April 2025, and there were 22.0 workdays in April 2024. |
| ● | There will be 63.5 workdays in 2Q’25, and there were 64.0 workdays in 2Q’24. |
Asset-Based Operating Segment
| ● | Average price increase on contract renewals and deferred pricing agreements negotiated during 1Q’25: +4.9% |
Year-over-Year Business Trends
|
| | January 2025 | | February 2025 | | March 2025 | | April 2025 | ||||
| | | | | | | | | | | | | |
Billed Revenue/Day(1) | | | -2.9 | % | | -1.8 | % | | -3.4 | % | | -1 | % |
Total Tons/Day | |
| -9.2 | % |
| -2.0 | % |
| -1.6 | % |
| +1 | % |
Total Shipments/Day | |
| -1.7 | % |
| +0.3 | % |
| +0.2 | % |
| +4 | % |
Total Billed Revenue/CWT | | | +7.0 | % | | +0.2 | % | | -1.8 | % |
| -2 | % |
Total Billed Revenue/Shipment | | | -1.2 | % | | -2.1 | % | | -3.5 | % |
| -5 | % |
Total Weight/Shipment | | | -7.6 | % | | -2.3 | % | | -1.7 | % |
| -3 | % |
In April 2025, ArcBest’s Asset-Based segment experienced a 4% year-over-year increase in daily shipments, reflecting success in capturing new core business opportunities. Despite the market backdrop leading to a 3% decrease in weight per shipment, we achieved a 1% increase in daily tonnage levels compared to the same period last year.
April revenue per hundredweight is down 2% year-over-year. Excluding fuel surcharges, the metric is down less than one percent. This decrease was partly driven by an increase in shipments from core customers with easier-to-handle freight, which generally have a lower revenue per hundredweight profile but are operationally more efficient. Additionally, there was a decline in shipments within the manufacturing vertical, where we typically see a higher revenue per hundredweight profile. The ongoing trend of fewer household goods moves, influenced by current economic and interest rate conditions, also continued to impact our results in April. The pricing environment remains rational.
From March to April, tonnage per day increased 1%, shipments per day increased by 1%, and weight per shipment was flat. Revenue per hundredweight, both including and excluding fuel surcharges, decreased by 1%.
Historically, ABF's non-GAAP operating ratio has improved by 300 to 400 basis points from the first to the second quarter, and we expect our second quarter operating ratio improvement to remain within this range.
1
Asset-Light Operating Segment
Year-over-Year Business Trends
|
| | January 2025 | | February 2025 | | March 2025 | | April 2025 | ||||
| | | | | | | | | | | | | |
Revenue/Day (Year-over-Year) | | | -7.1 | % | | -7.2 | % | | -13.8 | % | | -10 | % |
Shipments/Day (Year-over-Year) | | | -3.7 | % | | -1.4 | % | | -6.0 | % | | -4 | % |
Revenue/Shipment (Year-over-Year) | | | -3.6 | % | | -5.9 | % | | -8.3 | % | | -6 | % |
Purchased Transportation Expense as a % of Revenue | |
| 87.2 | % |
| 85.3 | % |
| 84.1 | % |
| 84 | % |
In April 2025, Asset-Light year-over-year daily revenue was down 10% due to fewer shipments from a strategic reduction in less profitable truckload volumes, offsetting the continued strength in Managed. Lower revenue per shipment resulted from soft freight market conditions and a higher proportion of Managed business with smaller shipment sizes.
Sequentially, from March to April, daily revenue decreased by 5%, revenue per shipment was flat, and shipments per day decreased by 4%.
Given current market conditions, we anticipate a non-GAAP operating loss for the segment between $1 -$2 million for the second quarter of 2025. This estimate excludes impacts from changes in the fair value of contingent consideration and purchase accounting amortization. ArcBest does not provide forward-looking guidance for certain financial measures on a GAAP basis due to the unpredictability of certain items, including changes in the fair value of contingent consideration.
As part of the MoLo acquisition, additional cash consideration is contingent on achieving specific adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) targets for 2023, 2024, and 2025. The fair value of this contingent consideration is estimated using a Monte Carlo simulation, which factors in various revenue and EBITDA scenarios, volatility, and discount rates. Significant changes in these inputs could result in a higher or lower fair value at the next reporting date.
Additional Detailed Information
Consolidated Capital Expenditures 2025 Projected
| ● | Total Net Capital Expenditures, including financed equipment: $225 million to $275 million |
| o | Includes revenue equipment purchases (majority for Asset-Based) of $130 million to $140 million |
| o | Includes real estate expenditures of $60 million to $80 million |
| o | The remaining amount of capital expenditures includes items related to technology and miscellaneous dock equipment upgrades and enhancements. |
| o | We currently expect to be at the lower end of our capital range for the year. |
| ● | Depreciation and amortization costs on property, plant and equipment: approximately $164 million |
| ● | Intangible asset amortization, primarily reflecting purchase accounting amortization related to the MoLo acquisition: $13 million |
Share Repurchase Program
Based on repurchases settled through Monday, April 28, 2025, $27.9 million remains available under the current repurchase authorization for future common stock purchases.
Tax Rate
ArcBest’s first quarter 2025 effective GAAP tax rate for continuing operations was 25.0%. The “Effective Tax Rate Reconciliation” table of ArcBest’s first quarter 2025 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 first quarter 2025 was 23.8%. Under the current tax laws, we expect our full year 2025 non-GAAP tax rate for continuing operations to be in a range of 27% to 28%. The effective tax rate may be impacted by discrete items that could occur throughout the year.
2
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% |
3
“Other and eliminations” within Operating Income (Loss) on the Operating Segment Data and Operating Ratios statement
| ● | 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. |
| ● | It also includes expenses related to shared services including sales, yield, customer service, marketing, capacity sourcing functions, human resources, financial services, information technology, legal and other company-wide services. |
| ● | Projected amounts for second quarter and full year 2025 and actual amounts for second quarter and full year 2024 are included below. |
| | Three Months Ended | | Year Ended | | ||||||||
| | June 30 | | December 31 | | ||||||||
| | 2025 |
| 2024 |
| 2025 |
| 2024 | | ||||
| | (in millions) | | ||||||||||
Innovative technology costs, pre-tax (incl. financing costs) | | $ | 8 | | $ | 8 | | $ | 30 | | $ | 34 | |
Other costs, pre-tax | | $ | 6 | | $ | 6 | | $ | 28 | | $ | 23 | |
Total other and eliminations | | $ | 14 | | $ | 14 | | $ | 58 | | $ | 57 | |
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 in first quarter 2024, a $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. |
| o | The changes in cash surrender value of life insurance and the equity investment impairment charge are typically disclosed as non-GAAP reconciling items. |
| o | As such, the non-GAAP amounts for “Other, net” are expected to be minimal. |
| ● | Projected amounts for second quarter and full year 2025 and actual amounts for second quarter and full year 2024 are included below. |
| | Three Months Ended | | Year Ended |
| ||||||||
| | June 30 | | December 31 | | ||||||||
|
| 2025 |
| 2024 |
| 2025 |
| 2024 |
| ||||
|
| (in millions) | | ||||||||||
Interest and dividend income | | $ | 1 | | $ | 3 | | $ | 5 | | $ | 12 | |
Interest and other related financing costs | | $ | (3) | | $ | (2) | | $ | (12) | | $ | (9) | |
Other, net, excluding non-GAAP reconciling items | | $ | — | | $ | (1) | | $ | — | | $ | (3) | |
4
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,” “designed,” “estimate,” “expect,” “forecast,” “foresee,” “intend,” “likely,” “may,” “plan,” “predict,” “project,” “scheduled,” “seek,” “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 and caution the reader not to place undue reliance on our forward-looking statements. 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: 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, including but not limited to licensed software; untimely or ineffective development and implementation of, or failure to realize the potential benefits associated with, new or enhanced technology or processes; 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 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 or actions by activist investors; maintaining our corporate reputation and intellectual property rights; establishing and maintaining adequate internal controls over financial reporting; 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, 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; the effects, costs and potential liabilities related to changes in and compliance with, or violation of, existing or future governmental laws and regulations, including, but not limited to, environmental laws and regulations, such as emissions-control regulations and fuel efficiency 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; 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, the occurrence of natural disasters, health epidemics, geopolitical conflicts, acts of war, cybersecurity incidents, or trade restrictions; 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, 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 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.
5
| 1Q’25 Earnings Presentation |
| Forward Looking Statements 2 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 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,” “designed,” “estimate,” “expect,” “forecast,” “foresee,” “intend,” “likely,” “may,” “plan,” “predict,” “project,” “scheduled,” “seek,” “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 and caution the reader not to place undue reliance on our forward-looking statements. 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: 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, including but not limited to licensed software; untimely or ineffective development and implementation of, or failure to realize the potential benefits associated with, new or enhanced technology or processes; 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 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 or actions by activist investors; maintaining our corporate reputation and intellectual property rights; establishing and maintaining adequate internal controls over financial reporting; 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, 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; the effects, costs and potential liabilities related to changes in and compliance with, or violation of, existing or future governmental laws and regulations, including, but not limited to, environmental laws and regulations, such as emissions-control regulations and fuel efficiency 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; 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, the occurrence of natural disasters, health epidemics, geopolitical conflicts, acts of war, cybersecurity incidents, or trade restrictions; 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, 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 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. |
| 3 We are a leading integrated logistics company that leverages technology and our full suite of solutions to meet customers’ supply chain needs 1923 Founded $398B Addressable Market >98% Coverage of United States ~240 Asset-Based North American service centers ~40K Owned revenue equipment 100K+ Approved contract carriers TOP 15 U.S. Truckload Broker ArcBest 30K Customers 14K Employees |
| Disciplined Execution of Three-Point Strategy 4 1 2 3 ENHANCED SHAREHOLDER VALUE Increase Efficiency Leverage technology Optimize ABF network Drive scale and productivity to improve Asset-Light operating margin Drive Innovation Develop and implement disruptive and game changing innovations Launch new revenue streams Co-create and scale with customers Accelerate Growth Secure new customers to maximize profitability Expand with existing customers through market penetration Retain existing customers |
| Continued Productivity Gains QUARTER IN REVIEW – EXCELLENCE IN ACTION 5 Premium Service • Shipment Visibility • Flex Deliveries • Appointment Optimization Record Managed Solution Shipment Levels +8% Increase in Daily Digital Quoting >$24M Capital Returned to Shareholders Exceeded Industry Benchmark for 19 Years 19x Claims Process #1 Website Ease of Use #1 • Technology, training, and network design • Asset-Based Shipments/DSY Hour +1% • Asset-Light Shipments/Employee/Day +24% |
| International Shipping Full Truckload Warehousing & Distribution Less-than-Truckload Premium Logistics Expedite Shipping Final Mile $74B $124B $68B $55B $20B $5B $13B ARCBEST PROVIDES PREMIUM VALUE 6 Flexibility Efficiency Resiliency CUSTOMERS NEED & WANT ARCBEST’S INTEGRATED SOLUTIONS EXPAND MARKET OPPORTUNITY INTEGRATED APPROACH SEAMLESSLY CONNECTS MODES ArcBest Managed Transportation Solution Supply Chain Optimization • Managed Transportation • Product Launch ENABLES ARCBEST GROWTH 5x Larger Deals Improved Profitability Fastest Growing Solution Large Pipeline Opportunity Multi-Solution Deals |
| ARCBEST’S CUSTOMER-LED STRATEGY YIELDS RESULTS 7 Profit Revenue Single-Solution Accounts Cross-Sold Accounts >3x Revenue & Profit per account is over 3X higher in cross-sold accounts Revenue & Profit 3x 3x >70% Over 70% of our customers who use asset-light services also utilize our asset-based services Single-Solution Accounts Cross-Sold Accounts 5% Higher Customer Retention A customer-focused growth strategy enables faster and more efficient growth Asset-Light + Asset-Based Retention rates are 5 percentage points higher on cross-sold accounts than on single-solution accounts |
| PRICING INTELLIGENCE AND INNOVATION ENHANCE YIELD 8 $0 $25 $50 Revenue/CWT $0 $275 $550 Revenue/Shipment Industry-Leading Innovation Value-Enhancing Solutions Improved Pricing Intelligence Led the industry in launching Space-Based Pricing in 2017 Core LTL Digital Dynamic Capabilities + Customer Led Large dataset with deep understanding of our costs provides shipment level pricing intelligence Improved Margins Efficient Capacity Utilization Profitable Growth for ABF T H I S E N A B L E S : Resulting in Strongest Pricing Metrics Among Competitors Peers ABF Legend: ~1.7x ~1.5x |
| K 50K 100K 150K 200K 250K 300K 2020 2021 2022 2023 2024 1Q25 Daily Quotes Daily Dynamic Quotes Daily Quotes DYNAMIC PRICE IMPROVES AS QUOTES GROW 9 More quotes, more choices Drives additional incremental profit ~50% more revenue/shipment since 2020 |
| VAUX VISION 10 Certified Automatic Dimensioning Captures NTEP certified dimensions and associates them to the unit with automatic barcode reading Vaux Vision transforms forklifts into an intelligent mobile dimensioner Deep Shipment Attributes Captures arrival/departure photo, damage classification, non-stackable classification; Insight roadmap continues to grow Captures freight measurements and images on the go |
| Taking Action To Drive Profitable Growth 11 Organizational Updates for Increased Efficiency Investing for Growth Growing sales force Expanding presence within small and middle-market segments Investing for Service Expanding key account management teams Further developing customer retention and onboarding teams B U I L D I N G O N A S T R O N G F O U N D AT I O N 11 Enables faster decision making Fosters better collaboration Encourages focus on highest priorities 31% Improvement in speed of deal execution 80% of revenue from customers with a 10+ year relationship |
| TRANSFORMING OPERATIONS THROUGH TECHNOLOGY 12 ABF Optimization Portfolio • 75+ projects • 36% operationalized • 25% in pilot to expand stages City Route Optimization Phases 2 & 3 • Pilots underway • Daily demand predictions • Dynamic routing tool 2021 2022 2023 2024 Idea Pilot Learn Refine Expand Operationalize $50K $13M+ Iterative approach for optimization efforts City Route Optimization Phase 1 Savings Per Year Per Year |
| • Culture of continuous innovation • Deploying training teams • Expanding transfer capacity and performance management CONTINUED INVESTMENTS IN TRAINING 13 $6M Locations FROM 9 SITE VISITS IN 1Q25 IN SAVINGS All Locations Completed Locations 2025 Locations 2026 And Beyond Significant Runway in 2025 and Beyond |
| TRUCKLOAD DIGITAL ROADMAP 14 • Carrier Portal • Quote Email Augmentation • Appointment Scheduling • Inbound Call Automation • Pricing Enhancements • Capacity Sourcing Augmentation Blending human relationships and technology to support processes and improve productivity 22% Carrier Portal Adoption 45% Digitally Fulfilled Shipments |
| 8,820 8,820 8,955 9,254 9,497 135 299 243 132 8,500 8,700 8,900 9,100 9,300 9,500 9,700 2021 2022 2023 2024 2025 ✓ Enables Growth STRATEGIC INVESTMENTS IN TECHNOLOGY, FLEET AND FACILITIES 15 ~800 door expansion since 2021 8,820 8,955 9,254 9,497 Projected Net New 9,629 Doors Since 2021 Existing Doors New Doors Legend: Modern Fleet • Lowers Total Cost of Ownership • Supports Long-Term Sustainability Dock Management Software Labor Planning Tools Right People. Right Place. Right Time. • Employee Level Productivity • Consistent Processes & Service Strategically Adding Capacity ✓ Improves Service ✓ Increases Efficiency |
| Improvement in Asset-Based Operating Ratio(1) (Non-GAAP) Strategy in Action 16 (1) Operating Ratio adjusted for certain unusual items. See Reconciliations of GAAP to non-GAAP Financial Measures in the Additional Information section of this presentation. Union Pension Impact on OR 240 bps IMPROVEMENT Compared to 2019 94.5% 94.2% 88.8% 86.4% 90.4% 91.2% 92.1% 75% 80% 85% 90% 95% 2019 2020 2021 2022 2023 2024 1Q'25 TTM FREIGHT RECESSION PANDEMIC FREIGHT RECESSION |
| Strategy in Action 17 Our strategy is delivering solid results Operating Income ($M) (Non-GAAP, Unaudited)(1)(2) Revenues ($B) (Unaudited)(1) Earnings Per Share (Non-GAAP, Unaudited)(1)(2) $2.8 $2.8 $3.8 $5.0 $4.4 $4.2 $4.1 2019 2020 2021 2022 2023 2024 1Q'25 TTM $112 $123 $314 $468 $258 $203 $178 2019 2020 2021 2022 2023 2024 1Q'25 TTM $2.96 $3.28 $8.40 $13.52 $7.88 $6.28 $5.55 2019 2020 2021 2022 2023 2024 1Q'25 TTM +46% +59% +88% 1) On February 28, 2023, the Company sold FleetNet America, Inc. (“FleetNet”), a wholly owned subsidiary of the Company. Historical results of FleetNet have been excluded from results for all periods presented. 2) See Reconciliations of GAAP to non-GAAP Financial Measures in the Additional Information section of this presentation. |
| Non-GAAP Operating Income (2) Key Metrics Q1 2025(1) 18 $967M ArcBest Consolidated Revenue $17.3M Non-GAAP Operating Income (2) $0.51 Non-GAAP Earnings per Diluted Share(2) -62% ARCBEST CONSOLIDATED (From Continuing Operations) 1) All comparisons are on a year-over-year basis. 2) See non-GAAP reconciliation in the Additional Information section of this presentation. Asset-Based Asset-Light -7% -59% -$27M +$4M |
| Key Metrics Q1 2025(1) 19 ASSET-BASED 1) All comparisons are on a year-over-year basis. $646M Revenue Average Increase on Contract Renewals and Deferred Pricing Agreements Daily Total Tonnage -4% Daily Total Shipments Flat Total Billed Rev/CWT +2% 4.9% $26.4M Operating Income 95.9% Operating Ratio 390 bps deterioration -51% -3% per day Weight/ Shipment -4% |
| 20 1Q24 Operating Income 1Q25 Lower Revenue • Weight per Shipment 1Q25 Higher Labor Contract Costs • Wages +2.5% • Benefits +2.9% 1Q25 Insurance and Healthcare • BIPD Claims • Non-union Healthcare 1Q25 Cost Savings • Cost Management • Productivity • Network Efficiency • Profit Optimization 1Q25 Operating Income $53M ($25M) ($4M) ($6M) $8M $26M $M $10M $20M $30M $40M $50M $60M 1Q24 vs 1Q25 Operating Income Bridge ASSET-BASED Q1 2025 |
| Key Metrics 21 Daily Billed Revenue Total Billed Rev/CWT ASSET-BASED Daily Total Tonnage Daily Total Shipments +4% Total Billed Rev/Shipment Total Weight/Shipment -1% -5% A P R I L 2 0 2 5 P R E L I M I N A RY 1) All comparisons are on a year-over-year basis. +1% -2% -3% April 2025(1) |
| Purchased Transportation as % of Revenue Key Metrics ASSET-LIGHT Revenue/ Shipment $356M Revenue -9% per day ($1.2M) Non-GAAP Operating Loss (2) $0.2M Adjusted EBITDA(2) 1) All comparisons are on a year-over-year basis. 2) See non-GAAP reconciliation in the Additional Information section of this presentation. 86% 22 -4% Daily Total Shipments -6% Shipments/ Employee/Day +24% Q1 2025(1) |
| Key Metrics April 2025(1) 23 ASSET-LIGHT Revenue/Day -10% 1) All comparisons are on a year-over-year basis. Revenue/Shipment Daily Total Shipments -6% 84% -4% Purchased Transportation as % of Revenue A P R I L 2 0 2 5 P R E L I M I N A RY |
| 24 BALANCED INVESTMENT APPROACH Invest organically in the business and provide returns to shareholders while maintaining a solid balance sheet and investment-grade credit metrics Strategic Growth Investments Share Repurchases & Dividends M&A Strategy • Investing in real estate, equipment, and innovative projects to enhance revenue growth, optimize costs and drive long-term shareholder value • Projected 2025 Net Capital Expenditures of approximately $225M-$275M • Currently paying a $0.12/share quarterly dividend • Returned over $24 million to shareholders during 1Q’25 • Complementary to our solutions offered • Strong culture fit, experienced leadership team and a pathway to solid returns • Strategic technology and innovative partnerships Solid Financial Position • Approximately $350M in Available Liquidity |
| EXCELLENCE IN ACTION 25 The Only 11x Winner ATA Excellence in Security |
| 26 Note: ArcBest Corporation reports its financial results in accordance with generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP performance measures utilized for internal analysis provides analysts, investors, and others the same information that we use internally for purposes of assessing our core operating performance and provides meaningful comparisons between current and prior period results, as well as important information regarding performance trends. Accordingly, using these measures improves comparability in analyzing our performance because it removes the impact of items from operating results that, in management's opinion, do not reflect our core operating performance. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results. These financial measures should not be construed as better measurements than operating income (loss), operating cash flow, net income or earnings per share, as determined under GAAP. Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited) ADDITIONAL INFORMATION |
| Asset-Based 27 (Unaudited) RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES 2019 2020 2021 2022 2023 2024 1Q’25 TTM Asset-Based ($ millions, except percentages) Operating Income Amounts on a GAAP basis $ 102.1 95.2% $ 98.9 95.3% $ 260.7 89.9% $ 381.1 87.3% $ 253.2 91.2% $ 242.6 91.2% $ 215.6 92.1% Innovative technology costs, pre-tax (1) 13.7 (0.6) 22.5 (1.1) 27.6 (1.1) 27.2 (0.9) 21.7 (0.8) - - - - ELD conversion costs, pre-tax (2) 2.7 (0.1) - - - - - - - - - - - - Nonunion vacation policy enhancement, pre-tax (3) - - - - - - 1.2 - - - - - - - Nonunion pension termination costs, pre-tax (4) 0.3 - - - - - - - - - - - - - Asset impairment charges, pre-tax (5) - - - - - - - - 0.7 - - - - - Non-GAAP amounts (6) $ 118.8 94.5% $ 121.3 94.2% $ 288.3 88.8% $ 409.6 86.4% $ 275.5 90.4% $ 242.6 91.2% $ 215.6 92.1% 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) Impairment charges related to equipment replacement and other one-time costs incurred to comply with the electronic logging device (“ELD”) mandate which became effective in December 2019. 3) Represents a one-time, noncash charge for enhancements to our nonunion vacation policy which were effective third quarter 2022. 4) Consulting fee incurred in third quarter 2019 associated with the termination of the nonunion defined benefit pension plan. 5) Represents noncash lease-related impairment charges for an Asset-Based service center that was made available for sublease. 6) Non-GAAP amounts are calculated in total and may not equal the sum of the GAAP and the non-GAAP adjustments due to rounding. |
| 28 ArcBest Consolidated (continuing operations)(1) (Unaudited) RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES* 2019 2020 2021 2022 2023 2024 1Q’25 TTM ArcBest Corporation – Consolidated ($ millions) Operating Income Amounts on a GAAP basis $57.9 $ 93.7 $ 277.0 $ 394.5 $ 172.6 $ 244.4 $ 228.6 Transaction costs, pre-tax (2) - - 6.0 - - - - Gain on sale of subsidiaries, pre-tax (3) - - (6.9) (0.4) - - - Innovative technology costs, pre-tax (4) 20.7 25.6 32.8 40.8 52.4 34.1 31.9 ELD conversion costs, pre-tax (5) 2.7 - - - - - - Nonunion pension termination costs, pre-tax (6) 0.3 - - - - - - Purchase accounting amortization, pre-tax (7) 4.2 3.7 5.3 12.9 12.8 12.8 12.8 Change in fair value of contingent consideration, pre-tax (8) - - - 18.3 (19.1) (90.3) (97.6) Legal settlement, pre-tax (9) - - - - 9.5 0.3 0.3 Nonunion vacation policy enhancement, pre-tax (10) - - - 2.0 - - - Asset impairment charges, pre-tax (11) 26.5 - - - 30.2 1.7 1.7 Non-GAAP amounts (12) $ 112.3 $ 123.1 $ 314.1 $ 468.1 $ 258.3 $ 203.0 $ 177.7 *See “Notes to Non-GAAP Financial Tables” for footnotes to this ArcBest Corporation – Consolidated non-GAAP table |
| 29 ArcBest Consolidated (continuing operations)(1) (Unaudited) RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES* 2019 2020 2021 2022 2023 2024 1Q’25 TTM ArcBest Corporation – Consolidated Diluted Earnings Per Share Amounts on a GAAP basis $ 1.33 $ 2.55 $ 7.86 $ 11.56 $ 5.77 $ 7.28 $ 7.71 Transaction costs, after-tax (2) - - 0.16 - - - - Gain on sale of subsidiaries, after-tax (3) - - (0.20) (0.01) - - - Innovative technology costs, after-tax (includes related financing costs) (4) 0.59 0.74 0.93 1.21 1.61 1.10 1.05 ELD conversion costs, after-tax (5) 0.08 - - - - - - Nonunion pension termination costs, after-tax (6) 0.01 - - - - - - Purchase accounting amortization, after-tax (7) 0.12 0.11 0.15 0.38 0.39 0.40 0.41 Change in fair value of contingent consideration, after-tax (8) - - - 0.54 (0.58) (2.85) (3.15) Legal settlement, after-tax (9) - - - - 0.29 0.01 0.01 Nonunion vacation policy enhancement, after-tax (10) - - - 0.06 - - - Asset impairment charges, after-tax (11) 0.75 - - - 0.92 0.05 0.05 Change in fair value of equity investment, after-tax (13) - - - - (0.11) 0.91 - Nonunion pension expense, including settlement expense, after-tax (14) 0.30 - - - - - - Life insurance proceeds and changes in cash surrender value (0.14) (0.09) (0.15) 0.11 (0.19) (0.14) (0.06) Tax expense (benefit) from vested RSUs (15) 0.02 0.02 (0.29) (0.32) (0.21) (0.47) (0.47) Tax credits (16) (0.10) (0.05) (0.06) 0.01 - - - Non-GAAP amounts (12) $ 2.96 $ 3.28 $ 8.40 $ 13.52 $ 7.88 $ 6.28 $ 5.55 *See “Notes to Non-GAAP Financial Tables” for footnotes to this ArcBest Corporation – Consolidated non-GAAP table |
| 30 ArcBest Consolidated (continuing operations)(1) Notes to Non-GAAP Financial Tables The following footnotes apply to the non-GAAP financial tables on the previous two slides in this presentation. 1) Historical results of FleetNet have been excluded from results for all periods presented, and reclassifications have been made to the prior-period financial statements to conform to current-year presentation. 2) Represents costs associated with the November 1, 2021, acquisition of MoLo Solutions, LLC. 3) Gains associated with the April 2021 divestures of moving services subsidiaries for which the gains were recognized in second quarter 2021, respectively, when the contingent consideration was received on the transactions, as well as including the contingent amount recognized in second quarter 2022 when the funds were released to escrow. 4) Represents costs related to our customer pilot offering of Vaux and initiatives to optimize our performance through technological innovation. The 2019-2023 periods also include 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. Costs for 2019-2020 have been adjusted to conform to the current-year presentation. 5) Impairment charges related to equipment replacement and other one-time costs incurred to comply with the electronic logging device (“ELD”) mandate which became effective in December 2019. 6) Consulting fee incurred in third quarter 2019 associated with the termination of the nonunion defined benefit pension plan. 7) Represents the amortization of acquired intangible assets in the Asset-Light segment. 8) Represents change in fair value of the contingent earnout consideration recorded for the MoLo acquisition. 9) Represents settlement expenses related to the classification of certain Asset-Light employees under the Fair Labor Standards Act, which were paid during first quarter 2025. 10) Represents a one-time, noncash charge for enhancements to our nonunion vacation policy which were effective third quarter 2022. 11) The 2024 periods represent noncash asset impairment charges for certain revenue equipment and software recognized during fourth quarter 2024 as part of a strategic decision to adjust capacity within Asset-Light’s operations. The 2023 period represents noncash lease-related impairment charges for a freight handling pilot facility, an Asset-Based service center, and Asset-Light office spaces that were made available for sublease. The 2019 period represents a noncash impairment charge recognized in fourth quarter related to a portion of the goodwill, customer relationship intangible assets, and revenue equipment associated with the acquisition of truckload brokerage and truckload dedicated businesses within the Asset-Light segment. 12) Non-GAAP amounts are calculated in total and may not equal the sum of the GAAP and the non-GAAP adjustments due to rounding. 13) For the year ended December 31, 2024, represents a noncash impairment charge to write off an equity investment in Phantom Auto, a provider of human-centered remote operation software, which ceased operations during first quarter 2024. For the year ended December 31, 2023, represents the increase in fair value of an investment in Phantom Auto based on observable price changes during second quarter 2023. 14) Represents nonunion pension expense, including pension settlement and termination expense, related to the Company’s nonunion defined benefit pension plan for which plan termination was completed in 2019. Also includes pension settlement expense related to the Company’s supplemental benefit plan. 15) Represents recognition of the tax impact for the vesting of share-based compensation. 16) Represents tax credits recognized in the tax provision which relate to a prior tax year due to timing of recognition or retroactive reinstatement of the tax credits. Includes amounts related to alternative fuel tax credit in 2018, 2019 and 2022. Includes amounts related to research and development tax credit in 2019, 2020 and 2021. The 2022 period also includes amounts related to the alternative fuel tax credit for the year ended December 31, 2021 which were recorded in third quarter 2022. |
| ARCBEST CORPORATION - CONSOLIDATED Three Months Ended Millions ($000,000), except per share data 3/31/2025 3/31/2024 Operating Income from Continuing Operations Amounts on a GAAP basis $ 6.6 $ 22.4 Innovative technology costs, pre-tax (1) 7.5 9.7 Purchase accounting amortization, pre-tax (2) 3.2 3.2 Change in fair value of contingent consideration, pre-tax (3) - 7.3 Non-GAAP amounts (4) $ 17.3 $ 42.6 Net Income (Loss) from Continuing Operations Amounts on a GAAP basis $ 3.1 $ (2.9) Innovative technology costs, after-tax (includes related financing costs) (1) 5.7 7.4 Purchase accounting amortization, after-tax (2) 2.4 2.4 Change in fair value of contingent consideration, after-tax (3) - 5.5 Change in fair value of equity investment, after-tax(5) - 21.6 Life insurance proceeds and changes in cash surrender value 0.7 (1.2) Tax expense (benefit) from vested RSUs (6) - (0.5) Non-GAAP amounts (4) $ 11.9 $ 32.3 Diluted Earnings Per Share from Continuing Operations Amounts on a GAAP basis $ 0.13 $ (0.12) Innovative technology costs, after-tax (includes related financing costs) (1) 0.25 0.31 Purchase accounting amortization, after-tax (2) 0.10 0.10 Change in fair value of contingent consideration, after-tax (3) - 0.23 Change in fair value of equity investment, after-tax (5) - 0.90 Life insurance proceeds and changes in cash surrender value 0.03 (0.05) Tax expense (benefit) from vested RSUs (6) - (0.02) Non-GAAP amounts (4) $ 0.51 $ 1.34 Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited) 31 1) Represents costs related to our customer pilot offering of Vaux and initiatives to optimize our performance through technological innovation. 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. 4) Non-GAAP amounts are calculated in total and may not equal the sum of GAAP amounts and non-GAAP adjustments due to rounding. 5) Represents a noncash impairment charge to write off an equity investment in Phantom Auto, a provider of human-centered remote operation software, which ceased operations during first quarter 2024. 6) Represents recognition of the tax impact for the vesting of share-based compensation. |
| Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited) 32 1) Represents the amortization of acquired intangible assets in the Asset-Light segment. 2) Represents change in fair value of the contingent earnout consideration recorded for the MoLo acquisition. 3) 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. 4) Adjusted EBITDA is a primary component of the financial covenants contained in ArcBest Corporation’s Fourth Amended and Restated Credit Agreement. Management believes 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. Furthermore, management uses Adjusted EBITDA as a key measure of performance and for business planning. However, these non-GAAP financial measures should not be construed as better measurements than operating income (loss), operating cash flow, net income, or earnings per share, as determined under GAAP. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results. Other companies may calculate EBITDA differently; therefore, our Adjusted EBITDA may not be comparable to similarly titled measures of other companies. 5) Includes amortization of intangibles associated with acquired businesses. 6) Adjusted EBITDA amounts are calculated in total and may not equal the sum of Asset-Light Income (Loss) and the adjustments due to rounding. Three Months Ended ASSET-LIGHT ADJUSTED EBITDA (4) 3/31/2025 3/31/2024 ($ millions) Operating Income (Loss) $ (4.4) $ (15.3) Depreciation and amortization (5) 4.6 5.1 Change in fair value of contingent consideration (2) - 7.3 Adjusted EBITDA (6) $ 0.2 $ (2.9) Three Months Ended ASSET-LIGHT OPERATING INCOME (LOSS) 3/31/2025 3/31/2024 ($ millions) Amounts on a GAAP basis $ (4.4) 101.2% $ (15.3) 103.8% Purchase accounting amortization, pre-tax (1) 3.2 (0.9) 3.2 (0.8) Change in fair value of contingent consideration, pre-tax (2) - - 7.3 (1.8) Non-GAAP amounts (3) $ (1.2) 100.3% $ (4.7) 101.2% |
