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): February 3, 2023 (February 3, 2023)

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)

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 February 3, 2023, ArcBest^®^ (Nasdaq: ARCB) (the “Company”) issued a press release announcing its unaudited fourth quarter 2022 and full year 2022 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 fourth 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 February 3, 2023
99.2		Supplemental information dated February 3, 2023
99.3		Earnings conference call presentation dated February 3, 2023
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:	February 3, 2023	/s/ Michael R. Johns
		Michael R. Johns
		Chief Legal Officer
		and Corporate Secretary

December 31

Exhibit 99.1


Investor Relations Contact: David Humphrey	Media Contact: Autumnn Mahar
Title: Vice President – Investor Relations	Title: Senior Manager, PR and Social
Phone: 479-785-6200	Phone: 479-494-8221
Email: dhumphrey@arcb.com	Email: amahar@arcb.com

ArcBest Announces Fourth Quarter 202 2 and Record-Setting Full Year 2022 Results

Advancing Strategic Initiatives to Better Serve Customers,

Drive Efficiencies and Enhance Value

Celebrates 100 Years of Delivering Cutting-Edge Supply Chain

and Logistics Solutions to Customers Worldwide

●	Delivered fourth quarter 2022 net income of $37.3 million, or $1.48 per diluted share, with non-GAAP fourth quarter 2022 net income of $61.6 million, or $2.45 per diluted share.
●	Generated full year 2022 net income of $298.2 million, or $11.69 per diluted share. On a non-GAAP basis, full year 2022 net income was $348.4 million, or $13.66 per diluted share.
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●	Achieved a second consecutive year of record-setting annual revenue and net income.
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●	Returned $76 million to shareholders through stock repurchase program and dividends paid.
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●	Continued strong results will enable ABF Freight to pay a profit-sharing bonus to qualifying union-represented employees for the fourth year in a row.
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FORT SMITH, Arkansas, February 3, 2023 — ArcBest^®^ (Nasdaq: ARCB), a leader in supply chain logistics, today reported fourth quarter 2022 revenue of $1.2 billion, reflecting an increase of $59.0 million compared to fourth quarter 2021. Fourth quarter 2022 results include the impact of a full quarter of the operations of MoLo Solutions, LLC (“MoLo”), for which the acquisition closed on November 1, 2021.

ArcBest’s fourth quarter 2022 operating income was $51.2 million and net income was $37.3 million, or $1.48 per diluted share, compared to fourth quarter 2021 operating income of $86.9 million and net income of $65.5 million, or $2.47 per diluted share.

Excluding certain items in both periods as identified in the attached reconciliation tables, fourth quarter 2022 non-GAAP operating income was $82.7 million, compared to $102.2 million in the prior-year period. On a non-GAAP basis, net income was $61.6 million, or $2.45 per diluted share, in fourth quarter 2022 compared to $73.9 million, or $2.79 per diluted share, in fourth quarter 2021.

ArcBest’s full year 2022 revenue totaled a record $5.3 billion compared to $4.0 billion in 2021. Net income was $298.2 million, or $11.69 per diluted share, compared to net income of $213.5 million, or $7.98 per diluted share in 2021. On a non-GAAP basis, ArcBest’s 2022 net income was $348.4 million, or $13.66 per diluted share, compared to net income of $228.0 million, or $8.52 per diluted share, in 2021.

“I am pleased to report that ArcBest exceeded $5 billion in annual revenue for the first time and delivered the highest annual earnings per share in company history,” said Judy R. McReynolds, ArcBest chairman, president and CEO. “Our fourth quarter and record-breaking full-year 2022 results are directly related to our relentless pursuit of excellence. Despite the challenges in 2022 as a result of ongoing macro trends, the ArcBest team remained focused on serving our customers and advancing our strategic initiatives. We see tremendous opportunity ahead as we celebrate our 100th anniversary in 2023 – an impressive milestone that would not be possible without our dedicated

people, who are at the heart of our success. Looking forward, we are confident that our continued investments in ArcBest’s people, our unrivaled network of integrated logistics solutions and innovative mindset will drive continued growth, greater efficiency and value creation for generations to come.”

Fourth Quarter Results of Operations Comparisons

Asset-Based

Fourth Quarter 2022 Versus Fourth Quarter 2021

●	Revenue of $711.4 million compared to $683.5 million, a per-day increase of 4.9 percent.
●	Total tonnage per day decrease of 5.5 percent, including a decrease of 1.6 percent in LTL-rated weight per shipment.
---	---
●	Total shipments per day increase of 0.8 percent.
---	---
●	Total billed revenue per hundredweight increased 9.3 percent and was positively impacted by higher fuel surcharges. Revenue per hundredweight on LTL-rated business, excluding fuel surcharge, improved by a percentage in the low single digits.
---	---
●	Operating income of $75.1 million compared to $83.1 million. On a non-GAAP basis, operating income of $81.4 million compared to $89.5 million.
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Monthly business levels in ArcBest’s Asset-Based business slowed throughout the fourth quarter, resulting in moderate year-over-year revenue growth associated with flat, total daily shipments combined with a decrease in total freight tonnage and an increase in price. Market conditions and diminished customer demand contributed to a decrease in the size of shipments moving through the Asset-Based network. Total Asset-Based freight trends were weaker in the quarter. However, year-over-year revenue and operating statistics on LTL-rated shipments were better than those of Truckload-rated spot shipments, including household goods U-Pack moves, whose demand was impacted by current market conditions and revenue optimization actions.

Fourth quarter pricing levels were solid and followed historic LTL price increases in previous quarters. ArcBest’s focus on maximizing yield management opportunities continues. During the current period of reduced business levels, ArcBest is focused on effectively managing personnel, equipment and other network resources to provide superior customer service, while controlling costs and working to improve profit margins. Optimization initiatives in the Asset-Based network are positively contributing to efficiency improvements and reduced costs.

As a result of the operating ratio achieved in 2022, ABF Freight will pay a 3% profit-sharing bonus to qualifying union-represented employees – the maximum amount provided in its collective bargaining agreement.

“Our integrated solutions are a differentiator for us and the team at ABF Freight is a key part of that. It’s because of their efforts that we’re able to pay a profit-sharing bonus for the fourth year in a row, and at the highest level,” added McReynolds.

Asset-Light^‡^

Fourth Quarter 2022 Versus Fourth Quarter 2021 (including the results of MoLo beginning November 1, 2021)

●	Revenue of $572.4 million compared to $541.2 million, a per-day increase of 6.6 percent.
●	Operating loss of $9.6 million, including a charge of $17.5 million associated with the increase in fair value of the contingent earnout consideration recorded for the November 1, 2021 MoLo acquisition, compared to operating income of $13.9 million. On a non-GAAP basis, operating income of $11.1 million compared to $16.4 million.
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●	Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) of $13.4 million compared to $18.6 million, as detailed in the attached non-GAAP reconciliation tables.
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In the ArcBest Asset-Light segment, following growth earlier in the year, total revenue levels during the recent quarter were comparable to the previous year period. Fourth quarter 2022 benefited from a full quarter of operations of MoLo; however, revenue levels versus the prior year quarter were impacted by a slowdown in customer shipping

volumes, softness in market rates and changes in business mix, including fewer expedite and international shipments. Daily fourth quarter Asset-Light truckload shipments, compared to the recent third quarter, increased by a percentage in the high-single digits. Enhanced truckload capabilities as a result of the MoLo acquisition are an essential part of the creative logistics solutions ArcBest is delivering to customers during a more challenging economic environment. In addition, year-over-year growth in managed transportation services was a positive contributor to quarterly revenue totals. Fourth quarter operating margins were pressured as sequential revenue levels decreased as a result of weakening market conditions and three fewer workdays versus third quarter 2022, while operating expenses, excluding purchased transportation and the increase in fair value of contingent earnout consideration related to the MoLo acquisition, were at similar levels to those in the recent third quarter. Moving forward, ArcBest Asset-Light operating costs will be monitored and managed in response to customer demand and on-going market conditions.

Increased event volume combined with improved revenue per event contributed to higher quarterly revenue for the FleetNet segment and an increase in operating income over the prior year’s fourth quarter.

Full Year Results of Operations Comparisons

Asset-Based

Full Year 2022 Versus Full Year 2021

●	Revenue of $3.0 billion, compared to $2.6 billion, a per-day increase of 17.0 percent.
●	Tonnage per day increase of 1.6 percent.
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●	Shipments per day increase of 1.5 percent.
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●	Total billed revenue per hundredweight increase of 14.5 percent, positively impacted by higher fuel surcharges.
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●	Operating income of $381.1 million compared to $260.7 million. On a non-GAAP basis, operating income of $409.6 million compared to $288.3 million.
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●	Profit-sharing bonus to qualifying union-represented ABF Freight employees of approximately $16.2 million, an increase of approximately $1 million over the amount paid for 2021.
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Asset-Light^‡^

Full Year 2022 Versus Full Year 2021 (including the results of MoLo beginning November 1, 2021)

●	Revenue of $2.5 billion compared to $1.6 billion, a per-day increase of 59.7 percent.
●	Operating income of $58.6 million, including a charge of $18.3 million associated with the increase in fair value of the contingent earnout consideration recorded for the November 1, 2021 MoLo acquisition, compared to operating income of $50.9 million. On a non-GAAP basis, operating income of $89.7 million compared to $49.3 million.
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●	Adjusted EBITDA of $99.1 million compared to $57.1 million.
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Capital Expenditures

In 2022, total net capital expenditures, including equipment financed, equaled $211 million. Net capital expenditures in 2022 included $93 million of revenue equipment, the majority of which was for ArcBest’s Asset-Based operation. Revenue equipment purchases in 2022 were lower than the original estimate because of supply chain-related manufacturing delays and cancellations, primarily on new road tractors and trailers. Depreciation and amortization costs on property, plant and equipment were $127 million in 2022.

Share Repurchase and Quarterly Dividend Programs

ArcBest generated solid cash from operations in 2022 and continued to return capital to shareholders through its share repurchase and dividend programs. In 2022, 822,106 ArcBest shares were purchased for $65 million.

Currently, $26.5 million remains available under the authorized program for future common stock purchases. In April 2022, the ArcBest Board of Directors authorized a fifty percent increase in ArcBest’s quarterly cash dividend to twelve cents per share from the previous eight cents per share.

NOTE

^^‡ - The ArcBest and FleetNet reportable segments, combined, represent Asset-Light operations.

Conference Call

ArcBest will host a conference call with company executives to discuss the 2022 fourth quarter and full year 2022 results. The call will be today, Friday, February 3, at 9:30 a.m. EST (8:30 a.m. CST). Interested parties are invited to listen by calling (877) 231-8701 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 February 3, 2023, 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 March 15, 2023. To listen to the playback, dial (800) 633-8284 or (402) 977-9140 (for international callers). The conference call ID for the playback is 22025410. The conference call and playback can also be accessed, through March 15, 2023, 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 over 15,000 employees across more than 250 campuses and service centers, the company is a logistics powerhouse, fueled by the simple notion of finding a way to get the job done. Through innovative thinking, agility and trust, ArcBest leverages its full suite of shipping and logistics solutions to meet customers’ critical needs, each and every day. For more information, visit arcb.com.

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: Certain statements and information in this press release concerning results for the three and twelve months ended December 31, 2022 may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding (i) our expectations about our intrinsic value or our prospects for growth and value creation and (ii) our financial outlook, position, strategies, goals, and expectations. Terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “foresee,” “intend,” “may,” “plan,” “predict,” “project,” “scheduled,” “should,” “would,” and similar expressions and the negatives of such terms are intended to identify forward-looking statements. These statements are based on management’s beliefs, assumptions, and expectations based on currently available information, are not guarantees of future performance, and involve certain risks and uncertainties (some of which are beyond our control). Although we believe that the expectations reflected in these forward-looking statements are reasonable as and when made, we cannot provide assurance that our expectations will prove to be correct. Actual outcomes and results could materially differ from what is expressed, implied, or forecasted in these statements due to a number of factors, including, but not limited to: the effects of widespread outbreak of an illness or disease, including the COVID-19 pandemic, or any other public health crisis, as well as regulatory measures implemented in response to such events; external events which may adversely affect us or the third parties who provide services for us, for which our business continuity plans may not adequately prepare us, including acts of war or terrorism or military conflicts; data breach, cybersecurity incidents, and/or failure 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 potential benefits associated with, new or enhanced technology or processes, including the pilot test program at ABF Freight and our investments in human-centered remote operation software; the loss or reduction of business from large customers; the ability to manage our cost structure, and the timing and performance of growth initiatives; the cost, integration, and performance of any recent or future acquisitions, including the acquisition of MoLo Solutions, LLC, and the inability to realize the anticipated benefits of the acquisition within the expected time period or at all; market fluctuations and interruptions affecting the price of our stock; 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 new revenue equipment, decreases in value of used revenue equipment, and higher costs of equipment-related operating expenses such as maintenance, fuel, and related taxes; availability of fuel, the effect of volatility in fuel prices and the associated changes in fuel surcharges on securing increases in base freight rates, and the inability to collect fuel surcharges; relationships with employees, including unions, and our ability to attract, retain, and develop employees; unfavorable terms of, or the inability to reach agreement on, future collective bargaining agreements or a workforce stoppage by our employees covered under ABF Freight’s collective bargaining agreement; union employee wages and benefits, including changes in required contributions to multiemployer plans; availability and cost of reliable third-party services; our ability to secure independent owner operators and/or operational or regulatory issues related to our use of their services; litigation or claims asserted against us; governmental regulations; environmental laws and regulations, including emissions-control regulations; default on covenants of financing arrangements and the availability and terms of future financing arrangements; self-insurance claims and insurance premium costs; potential impairment of goodwill and intangible assets; general economic conditions and related shifts in market demand that impact the performance and needs of industries we serve and/or limit our customers’ access

to adequate financial resources; increasing costs due to inflation and rising interest rates; seasonal fluctuations and adverse weather conditions; and other financial, operational, and legal risks and uncertainties detailed from time to time in ArcBest Corporation’s public filings with the Securities and Exchange Commission (the “SEC”).

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

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

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			Year Ended
	December 31			December 31
	2022	2021		2022		2021
	(Unaudited)
	( thousands, except share and per share data)
REVENUES		$	1,185,224	$	5,324,052	$	3,980,067

OPERATING EXPENSES			1,098,289	****	4,924,783		3,699,081

OPERATING INCOME			86,935	****	399,269		280,986

OTHER INCOME (COSTS)
Interest and dividend income			238	****	3,957		1,275
Interest and other related financing costs			(2,130)	****	(7,701)		(8,904)
Other, net			1,156	****	(2,370)		3,797
			(736)	****	(6,114)		(3,832)

INCOME BEFORE INCOME TAXES			86,199	****	393,155		277,154

INCOME TAX PROVISION			20,711	****	94,946		63,633

NET INCOME		$	65,488	$	298,209	$	213,521

EARNINGS PER COMMON SHARE
Basic		$	2.60	$	12.13	$	8.38
Diluted		$	2.47	$	11.69	$	7.98

AVERAGE COMMON SHARES OUTSTANDING
Basic			25,211,666	****	24,585,205		25,471,939
Diluted			26,467,420	****	25,504,508		26,772,126

All values are in US Dollars.

ARCBEST CORPORATION

CONSOLIDATED BALANCE SHEET****S


	December 31	December 31
	2022	2021
	(Unaudited)	Note
	( thousands, except share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	76,620
Short-term investments			48,339
Accounts receivable, less allowances (2022 - $14,172; 2021 - $13,226)			582,344
Other accounts receivable, less allowances (2022 - $713; 2021 - $690)			13,094
Prepaid expenses			40,104
Prepaid and refundable income taxes			9,654
Other			5,898
TOTAL CURRENT ASSETS			776,053

PROPERTY, PLANT AND EQUIPMENT
Land and structures			350,694
Revenue equipment			980,283
Service, office, and other equipment			251,085
Software			175,989
Leasehold improvements			16,931
			1,774,982
Less allowances for depreciation and amortization			1,079,061
			695,921

GOODWILL			300,337
INTANGIBLE ASSETS, NET			126,580
OPERATING RIGHT-OF-USE ASSETS			106,686
DEFERRED INCOME TAXES			5,470
OTHER LONG-TERM ASSETS			101,629
TOTAL ASSETS		$	2,112,676

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Accounts payable		$	311,401
Income taxes payable			12,087
Accrued expenses			305,851
Current portion of long-term debt			50,615
Current portion of operating lease liabilities			22,740
TOTAL CURRENT LIABILITIES			702,694

LONG-TERM DEBT, less current portion			174,917
OPERATING LEASE LIABILITIES, less current portion			88,835
POSTRETIREMENT LIABILITIES, less current portion			16,733
OTHER LONG-TERM LIABILITIES			135,537
DEFERRED INCOME TAXES			64,893

STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value, authorized 70,000,000 shares;<br> issued 2022: 29,758,716 shares; 2021: 29,359,597 shares			294
Additional paid-in capital			318,033
Retained earnings			801,314
Treasury stock, at cost, 2022: 5,529,383 shares; 2021: 4,492,514 shares			(194,273)
Accumulated other comprehensive income			3,699
TOTAL STOCKHOLDERS’ EQUITY			929,067
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	2,112,676

All values are in US Dollars.

Note: The balance sheet at December 31, 2021 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOW****S


	Year Ended
	December 31
	2022	2021
	Unaudited
	( thousands)
OPERATING ACTIVITIES
Net income		$	213,521
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			118,864
Amortization of intangibles			5,357
Share-based compensation expense			11,426
Provision for losses on accounts receivable			1,466
Change in deferred income taxes			(7,589)
Gain on sale of property and equipment			(8,520)
Gain on sale of subsidiary			(6,923)
Changes in operating assets and liabilities:
Receivables			(122,782)
Prepaid expenses			(1,482)
Other assets			354
Income taxes			13,136
Operating right-of-use assets and lease liabilities, net			623
Accounts payable, accrued expenses, and other liabilities			106,064
NET CASH PROVIDED BY OPERATING ACTIVITIES			323,515

INVESTING ACTIVITIES
Purchases of property, plant and equipment, net of financings			(58,412)
Proceeds from sale of property and equipment			13,815
Business acquisition, net of cash acquired^(1)^			(239,380)
Proceeds from sale of subsidiary			9,013
Purchases of short-term investments			(56,011)
Proceeds from sale of short-term investments			73,182
Purchase of long-term investments			(25,350)
Capitalization of internally developed software			(20,061)
NET CASH USED IN INVESTING ACTIVITIES			(303,204)

FINANCING ACTIVITIES
Borrowings under credit facilities			50,000
Proceeds from notes payable			3,523
Payments on long-term debt			(171,915)
Net change in book overdrafts			(1,957)
Deferred financing costs			(314)
Payment of common stock dividends			(8,139)
Purchases of treasury stock			(83,100)
Forward contract for accelerated share repurchase			(25,000)
Payments for tax withheld on share-based compensation			(10,743)
NET CASH USED IN FINANCING ACTIVITIES			(247,645)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(227,334)
Cash and cash equivalents at beginning of period			303,954
CASH AND CASH EQUIVALENTS AT END OF PERIOD		$	76,620

NONCASH INVESTING ACTIVITIES
Equipment financed		$	59,700
Accruals for equipment received		$	1,704
Lease liabilities arising from obtaining right-of-use assets		$	14,671

All values are in US Dollars.

1)	For the year ended December 31, 2022, represents cash received from escrow for post-closing adjustments related to the acquisition of MoLo. For the year ended December 31, 2021, represents the acquisition of MoLo on November 1, 2021.

ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS


	Three Months Ended							Year Ended							****
	December 31							December 31							****
	2022			2021				2022				2021
	Unaudited														****
	( thousands, except percentages)														****
REVENUES
Asset-Based				$	683,485			$	3,010,900			$	2,573,773

ArcBest^(1)^					472,335			****	2,139,272				1,300,626
FleetNet					68,863			****	343,056				254,087
Total Asset-Light					541,198				2,482,328				1,554,713

Other and eliminations					(39,459)			****	(169,176)				(148,419)
Total consolidated revenues				$	1,185,224			$	5,324,052			$	3,980,067

OPERATING EXPENSES
Asset-Based
Salaries, wages, and benefits		44.9	%	$	304,350	44.5	%	$	1,293,487	43.0	%	$	1,198,253	46.6	%
Fuel, supplies, and expenses		13.7			73,662	10.8		****	378,558	12.6			266,139	10.3
Operating taxes and licenses		1.9			12,484	1.8		****	52,290	1.7			49,461	1.9
Insurance		1.6			9,232	1.4		****	47,382	1.6			37,800	1.5
Communications and utilities		0.7			4,581	0.7		****	18,949	0.6			18,773	0.7
Depreciation and amortization		3.4			23,774	3.5		****	97,322	3.2			93,799	3.6
Rents and purchased transportation		13.1			97,820	14.3		****	441,167	14.6			364,345	14.2
Shared services		9.4			67,277	9.8			281,698	9.4			263,532	10.2
Gain on sale of property and equipment^(2)^		(0.4)			(52)	—		****	(12,468)	(0.4)			(8,676)	(0.3)
Innovative technology costs^(3)^		0.9			6,328	0.9		****	27,207	0.9			27,631	1.1
Other		0.2			906	0.1		****	4,175	0.1			2,009	0.1
Total Asset-Based		89.4	%		600,362	87.8	%	****	2,629,767	87.3	%		2,313,066	89.9	%

ArcBest^(1)^
Purchased transportation		84.0	%	$	402,834	85.3	%	$	1,784,668	83.4	%	$	1,097,332	84.4	%
Supplies and expenses		0.8			2,746	0.6		****	15,815	0.7			10,531	0.8
Depreciation and amortization^(4)^		1.0			4,283	0.9		****	20,730	1.0			11,387	0.9
Shared services		11.2			45,939	9.7			218,133	10.2			132,137	10.1
Gain on sale of subsidiary^(5)^		—			—	—		****	(402)	—			(6,923)	(0.5)
Other^(6)^		5.3			3,710	0.8		****	47,603	2.2			9,765	0.7
		102.3	%		459,512	97.3	%	****	2,086,547	97.5	%		1,254,229	96.4	%
FleetNet		98.2	%		67,749	98.4	%	****	337,231	98.3	%		249,543	98.2	%
Total Asset-Light					527,261				2,423,778				1,503,772

Other and eliminations					(29,334)			****	(128,762)				(117,757)
Total consolidated operating expenses		95.9	%	$	1,098,289	92.7	%	$	4,924,783	92.5	%	$	3,699,081	92.9	%

OPERATING INCOME
Asset-Based				$	83,123			$	381,133			$	260,707

ArcBest^(1)^					12,823				52,725				46,397
FleetNet					1,114				5,825				4,544
Total Asset-Light					13,937				58,550				50,941

Other and eliminations^(7)^					(10,125)			****	(40,414)				(30,662)
Total consolidated operating income				$	86,935			$	399,269			$	280,986

All values are in US Dollars.

1)	The 2021 and 2022 periods include the operations of MoLo since the November 1, 2021 acquisition date.
2)	The year ended December 31, 2022 includes a $4.3 million noncash gain on a like-kind property exchange of a service center. The year ended December 31, 2021 includes an $8.6 million gain on the sale of an unutilized service center property.
---	---
3)	Represents costs associated with the freight handling pilot test program at ABF Freight.
---	---
4)	Depreciation and amortization includes amortization of intangibles associated with acquired businesses.
---	---
5)	Gain relates to the sale of the labor services portion of the ArcBest segment’s moving business in second quarter 2021, including the contingent amount recognized in second quarter 2022 when the funds were released from escrow.
---	---
6)	The three months and year ended December 31, 2022 include the increase in fair value of the contingent earnout consideration of $17.5 million and $18.3 million, respectively, recorded for the MoLo acquisition (See Note 3 of the Notes to Non-GAAP Financial Tables).
---	---
7)	“Other and eliminations” includes corporate costs for certain unallocated shared service costs which are not attributable to any segment, additional investments to offer comprehensive transportation and logistics services across multiple operating segments, 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. The use of certain non-GAAP measures improves comparability in analyzing our performance because it removes the impact of items from operating results that, in management's opinion, do not reflect our core operating performance. Other companies may calculate non-GAAP measures differently; therefore, our calculation may not be comparable to similarly titled measures of other companies. Certain information discussed in the scheduled conference call could be considered non-GAAP measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results. These financial measures should not be construed as better measurements than operating income, operating cash flow, net income or earnings per share, as determined under GAAP.


	Three Months Ended				Year Ended
	December 31					December 31
	2022	2021		****		2022		2021
ArcBest Corporation - Consolidated	(Unaudited)
	( thousands, except per share data)
Operating Income
Amounts on GAAP basis		$	86,935		$	399,269	$	280,986
Innovative technology costs, pre-tax^(1)^			8,454			40,796		32,845
Purchase accounting amortization, pre-tax^(2)^			2,455			12,853		5,266
Change in fair value of contingent consideration, pre-tax^(3)^			—			18,300		—
Gain on sale of subsidiary, pre-tax^(4)^			—			(402)		(6,923)
Nonunion vacation policy enhancement, pre-tax^(5)^			—			2,080		—
Transaction costs, pre-tax^(6)^			4,362			—		5,969
Non-GAAP amounts		$	102,206		$	472,896	$	318,143

Net Income
Amounts on GAAP basis		$	65,488		$	298,209	$	213,521
Innovative technology costs, after-tax (includes related financing costs)^(1)^			6,388			30,822		24,871
Purchase accounting amortization, after-tax^(2)^			1,837			9,585		3,940
Change in fair value of contingent consideration, after-tax^(3)^			—			13,647		—
Gain on sale of subsidiary, after-tax^(4)^			—			(317)		(5,437)
Nonunion vacation policy enhancement, after-tax^(5)^			—			1,546		—
Transaction costs, after-tax^(6)^			3,222			—		4,409
Life insurance proceeds and changes in cash surrender value			(1,215)			2,737		(4,123)
Tax expense (benefit) from vested RSUs^(7)^			(236)			(8,087)		(7,647)
Tax credits^(8)^			(1,540)			234		(1,540)
Non-GAAP amounts		$	73,944		$	348,376	$	227,994

Diluted Earnings Per Share
Amounts on GAAP basis		$	2.47		$	11.69	$	7.98
Innovative technology costs, after-tax (includes related financing costs)^(1)^			0.24			1.21		0.93
Purchase accounting amortization, after-tax^(2)^			0.07			0.38		0.15
Change in fair value of contingent consideration, after-tax^(3)^			—			0.54		—
Gain on sale of subsidiary, after-tax^(4)^			—			(0.01)		(0.20)
Nonunion vacation policy enhancement, after-tax^(5)^			—			0.06		—
Transaction costs, after-tax^(6)^			0.12			—		0.16
Life insurance proceeds and changes in cash surrender value			(0.05)			0.11		(0.15)
Tax expense (benefit) from vested RSUs^(7)^			(0.01)			(0.32)		(0.29)
Tax credits^(8)^			(0.06)			0.01		(0.06)
Non-GAAP amounts^(9)^		$	2.79		$	13.66	$	8.52

All values are in US Dollars.

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

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued


	Three Months Ended							Year Ended
	December 31							December 31
	2022			2021				2022				2021
Segment Operating Income Reconciliations	(Unaudited)
	( thousands, except percentages)
Asset-Based Segment
Operating Income () and Operating Ratio (% of revenues)
Amounts on GAAP basis		89.4	%	$	83,123	87.8	%	$	381,133	87.3	%	$	260,707	89.9	%
Innovative technology costs, pre-tax(10)		(0.9)			6,328	(0.9)			27,207	(0.9)			27,631	(1.1)
Nonunion vacation policy enhancement, pre-tax(5)		—			—	—			1,245	—			—	—
Non-GAAP amounts(9)		88.6	%	$	89,451	86.9	%	$	409,585	86.4	%	$	288,338	88.8	%

Asset-Light
ArcBest Segment
Operating Income () and Operating Ratio (% of revenues)
Amounts on GAAP basis		102.3	%	$	12,823	97.3	%	$	52,725	97.5	%	$	46,397	96.4	%
Purchase accounting amortization, pre-tax(2)		(0.7)			2,455	(0.5)			12,853	(0.6)			5,266	(0.4)
Change in fair value of contingent consideration, pre-tax(3)		(3.7)			—	—			18,300	(0.9)			—	—
Gain on sale of subsidiary, pre-tax(4)		—			—	—			(402)	—			(6,923)	0.5
Nonunion vacation policy enhancement, pre-tax(5)		—			—	—			318	—			—	—
Non-GAAP amounts(9)		98.0	%	$	15,278	96.8	%	$	83,794	96.1	%	$	44,740	96.6	%

FleetNet Segment
Operating Income () and Operating Ratio (% of revenues)
Amounts on GAAP basis		98.2	%	$	1,114	98.4	%	$	5,825	98.3	%	$	4,544	98.2	%
Nonunion vacation policy enhancement, pre-tax(5)		—			—	—			90	—			—	—
Non-GAAP amounts(9)		98.2	%	$	1,114	98.4	%	$	5,915	98.3	%	$	4,544	98.2	%

Total Asset-Light
Operating Income () and Operating Ratio (% of revenues)
Amounts on GAAP basis		101.7	%	$	13,937	97.4	%	$	58,550	97.6	%	$	50,941	96.7	%
Purchase accounting amortization, pre-tax(2)		(0.6)			2,455	(0.5)			12,853	(0.5)			5,266	(0.3)
Change in fair value of contingent consideration, pre-tax(3)		(3.1)			—	—			18,300	(0.7)			—	—
Gain on sale of subsidiary, pre-tax(4)		—			—	—			(402)	—			(6,923)	0.4
Nonunion vacation policy enhancement, pre-tax(5)		—			—	—			408	—			—	—
Non-GAAP amounts(9)		98.1	%	$	16,392	97.0	%	$	89,709	96.4	%	$	49,284	96.8	%

Other and Eliminations
Operating Loss ()
Amounts on GAAP basis				$	(10,125)			$	(40,414)			$	(30,662)
Innovative technology costs, pre-tax(1)					2,126				13,589				5,214
Nonunion vacation policy enhancement, pre-tax(5)					—				427				—
Transaction costs, pre-tax(6)					4,362				—				5,969
Non-GAAP amounts(9)				$	(3,637)			$	(26,398)			$	(19,479)

All values are in US Dollars.

Note: See “Notes to Non-GAAP Financial Tables” for the footnotes to this Segment Operating Income 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 December 31, 2022
			Other		Income		Income
	Operating		Income		Before Income		Tax		Net
	Income		(Costs)		Taxes		Provision		Income		Tax Rate^(11)^
Amounts on GAAP basis	$	51,234	$	1,645	$	52,879	$	15,542	$	37,337	29.4	%
Innovative technology costs^(1)^		10,713		244		10,957		2,821		8,136	25.7
Purchase accounting amortization^(2)^		3,213		—		3,213		817		2,396	25.4
Change in fair value of contingent consideration^(3)^		17,490		—		17,490		4,447		13,043	25.4
Nonunion vacation policy enhancement^(5)^		—		—		—		—		—	—
Life insurance proceeds and changes in cash surrender value		—		(942)		(942)		—		(942)	—
Tax expense from vested RSUs^(7)^		—		—		—		(223)		223	—
Tax credits^(8)^		—		—		—		(1,424)		1,424	—
Non-GAAP amounts	$	82,650	$	947	$	83,597	$	21,980	$	61,617	26.3	%


	Year Ended December 31, 2022
			Other		Income		Income
	Operating		Income		Before Income		Tax		Net
	Income		(Costs)		Taxes		Provision		Income		Tax Rate^(11)^
Amounts on GAAP basis	$	399,269	$	(6,114)	$	393,155	$	94,946	$	298,209	24.1	%
Innovative technology costs^(1)^		40,796		710		41,506		10,684		30,822	25.7
Purchase accounting amortization^(2)^		12,853		—		12,853		3,268		9,585	25.4
Change in fair value of contingent consideration^(3)^		18,300		—		18,300		4,653		13,647	25.4
Gain on sale of subsidiary^(4)^		(402)		—		(402)		(85)		(317)	(21.1)
Nonunion vacation policy enhancement^(5)^		2,080		—		2,080		534		1,546	25.7
Life insurance proceeds and changes in cash surrender value		—		2,737		2,737		—		2,737	—
Tax benefit from vested RSUs^(7)^		—		—		—		8,087		(8,087)	—
Tax credits^(8)^		—		—		—		(234)		234	—
Non-GAAP amounts	$	472,896	$	(2,667)	$	470,229	$	121,853	$	348,376	25.9	%


	Three Months Ended December 31, 2021
			Other		Income		Income
	Operating		Income		Before Income		Tax		Net
	Income		(Costs)		Taxes		Provision		Income		Tax Rate^(11)^
Amounts on GAAP basis	$	86,935	$	(736)	$	86,199	$	20,711	$	65,488	24.0	%
Innovative technology costs^(1)^		8,454		149		8,603		2,215		6,388	25.7
Purchase accounting amortization^(2)^		2,455		—		2,455		618		1,837	25.2
Transaction costs^(6)^		4,362		—		4,362		1,140		3,222	26.1
Life insurance proceeds and changes in cash surrender value		—		(1,215)		(1,215)		—		(1,215)	—
Tax benefit from vested RSUs^(7)^		—		—		—		236		(236)	—
Tax credits^(8)^		—		—		—		1,540		(1,540)	—
Non-GAAP amounts	$	102,206	$	(1,802)	$	100,404	$	26,460	$	73,944	26.4	%


	Year Ended December 31, 2021
			Other		Income		Income
	Operating		Income		Before Income		Tax		Net
	Income		(Costs)		Taxes		Provision		Income		Tax Rate^(11)^
Amounts on GAAP basis	$	280,986	$	(3,832)	$	277,154	$	63,633	$	213,521	23.0	%
Innovative technology costs^(1)^		32,845		646		33,491		8,620		24,871	25.7
Purchase accounting amortization^(2)^		5,266		—		5,266		1,326		3,940	25.2
Gain on sale of subsidiary^(4)^		(6,923)		—		(6,923)		(1,486)		(5,437)	(21.5)
Transaction costs^(6)^		5,969		—		5,969		1,560		4,409	26.1
Life insurance proceeds and changes in cash surrender value		—		(4,123)		(4,123)		—		(4,123)	—
Tax benefit from vested RSUs^(7)^		—		—		—		7,647		(7,647)	—
Tax credits^(8)^		—		—		—		1,540		(1,540)	—
Non-GAAP amounts	$	318,143	$	(7,309)	$	310,834	$	82,840	$	227,994	26.7	%

Note: See “Notes to Non-GAAP Financial Tables” for the 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 businesses and changes in the fair value of contingent consideration, gain on sale of subsidiary and transaction costs, which are significant expenses or gains resulting from strategic decisions rather than core daily operations. Additionally, Adjusted EBITDA is a primary component of the financial covenants contained in our credit agreement. The calculation of Consolidated Adjusted EBITDA as presented below begins with net income, which is the most directly comparable GAAP measure. The calculation of Asset-Light Adjusted EBITDA as presented below begins with operating income, as other income (costs), income taxes, and net income are reported at the consolidated level and not included in the operating segment financial information evaluated by management to make operating decisions.


	Three Months Ended					Year Ended
	December 31						December 31
	2022	****	2021		****	2022		****	2021		****
	(Unaudited)										****
ArcBest Corporation - Consolidated Adjusted EBITDA	( thousands)

Net Income			$	65,488		$	298,209		$	213,521
Interest and other related financing costs				2,130			7,701			8,904
Income tax provision				20,711			94,946			63,633
Depreciation and amortization^(12)^				33,226		****	140,039			124,221
Amortization of share-based compensation				2,859		****	12,775			11,426
Change in fair value of contingent consideration^(3)^				—		****	18,300			—
Gain on sale of subsidiary^(4)^				—			(402)			(6,923)
Transaction costs^(6)^				4,362			—			5,969
Consolidated Adjusted EBITDA			$	128,776		$	571,568		$	420,751

All values are in US Dollars.

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


	Three Months Ended			Year Ended
	December 31			December 31
	2022	2021		2022		2021
Asset-Light Adjusted EBITDA	(Unaudited)
	( thousands)
ArcBest
Operating Income		$	12,823	$	52,725	$	46,397
Depreciation and amortization^(12)^			4,283		20,730		11,387
Change in fair value of contingent consideration^(3)^			—		18,300		—
Gain on sale of subsidiary^(4)^			—		(402)		(6,923)
Adjusted EBITDA		$	17,106	$	91,353	$	50,861

FleetNet
Operating Income		$	1,114	$	5,825	$	4,544
Depreciation and amortization^(12)^			420		1,880		1,661
Adjusted EBITDA		$	1,534	$	7,705	$	6,205

Total Asset-Light
Operating Income		$	13,937	$	58,550	$	50,941
Depreciation and amortization^(12)^			4,703		22,610		13,048
Change in fair value of contingent consideration^(3)^			—		18,300		—
Gain on sale of subsidiary^(4)^			—		(402)		(6,923)
Adjusted EBITDA		$	18,640	$	99,058	$	57,066

All values are in US Dollars.

Note: See “Notes to Non-GAAP Financial Tables” for the 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 associated with the freight handling pilot test program at ABF Freight and initiatives to optimize our performance through technological innovation, including costs related to our investment in human-centered remote operation software.
2)	Represents the amortization of acquired intangible assets related to the November 1, 2021 acquisition of MoLo and previously acquired businesses in the ArcBest segment.
---	---
3)	Represents increase 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. 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.
---	---
4)	Gain relates to the sale of the labor services portion of the ArcBest segment’s moving business in second quarter 2021, including the contingent amount recognized in second quarter 2022 when the funds were released from escrow.
---	---
5)	Represents a one-time, noncash charge for enhancements to our nonunion vacation policy which were effective third quarter 2022.
---	---
6)	Represents costs associated with the acquisition of MoLo.
---	---
7)	Represents recognition of the tax impact for the vesting of share-based compensation.
---	---
8)	The 2022 periods include the amount recognized in the tax provision during fourth quarter 2022 to adjust estimated amounts recognized during 2022 for the research and development tax credit related to the tax year ended February 28, 2022. The year ended December 31, 2022 also includes amounts related to the alternative fuel tax credit for the year ended December 31, 2021 which were recorded in third quarter 2022. The 2021 amounts represent a research and development tax credit recognized in the tax provision during fourth quarter 2021 which relates to the tax year ended February 28, 2021.
---	---
9)	Non-GAAP amounts are calculated in total and may not foot due to rounding.
---	---
10)	Represents costs associated with the freight handling pilot test program at ABF Freight.
---	---
11)	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.
---	---
12)	Includes amortization of intangibles associated with acquired businesses.
---	---

ARCBEST CORPORATION

OPERATING STATISTICS


		Three Months Ended								Year Ended
		December 31								December 31
	****	2022		****	2021		****	% Change	****	2022		****	2021		****	% Change
		(Unaudited)
Asset-Based

Workdays	****		61.0			61.5					252.0			252.0

Billed Revenue^(1)^ / CWT		$	45.86		$	41.96		9.3%		$	45.45		$	39.70		14.5%

Billed Revenue^(1)^ / Shipment		$	571.21		$	557.49		2.5%		$	599.04		$	522.85		14.6%

Shipments		****	1,224,541			1,224,928		—%		****	5,013,615			4,941,780		1.5%

Shipments / Day		****	20,074			19,918		0.8%		****	19,895			19,610		1.5%

Tonnage (Tons)		****	762,642			813,639		(6.3%)		****	3,304,352			3,253,853		1.6%

Tons / Day		****	12,502			13,230		(5.5%)		****	13,113			12,912		1.6%

Pounds / Shipment		****	1,246			1,328		(6.2%)			1,318			1,317		0.1%

Average Length of Haul (Miles)		****	1,082			1,091		(0.8%)		****	1,090			1,097		(0.6%)

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		Year Ended
	****	December 31, 2022		December 31, 2022
		(Unaudited)
ArcBest^(2)^

Revenue / Shipment			(17.2%)		3.8%

Shipments / Day			20.5%		58.3%

2)	Statistical data related to the operations of MoLo since the November 1, 2021 acquisition date are included in the presentation of operating statistics for the ArcBest segment. Statistical data related to managed transportation solutions transactions is not included in the presentation of operating statistics for the ArcBest segment for the periods presented.

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 fourth quarter 2022 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

Asset-Based Segment

4Q’22 Year-over-Year Yield Metrics

●	Billed Rev/Cwt on LTL-rated freight, excluding fuel surcharges, increased by a percentage in the low single digits. Billed Rev/Cwt on core LTL-rated business, excluding fuel surcharges, increased by a percentage in the double digits
●	Average price increase on contract renewals and deferred pricing agreements negotiated during 4Q’22: +5.4%
---	---

Year-over-Year Monthly Total Daily Business Trends


	****	October 2022		****	November 2022		****	December 2022		****	January 2023^(1)(2)^		****

Billed Revenue/Day^(3)^			+7.0	%		+4.4	%		-1.7	%		+1	%
Total Tons/Day		****	-3.9	%		-3.3	%	****	-9.4	%		+1	%
Total Shipments/Day		****	+1.7	%		+3.7	%	****	-3.2	%		+7	%

1)	Statistics for the full month of January 2023 have not been finalized and are preliminary.
2)	There will be 21.0 workdays in January 2023 and there were 20.5 workdays in January 2022, and 64 workdays in 1Q’23 and 63.5 workdays in 1Q’22.
---	---
3)	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.
---	---

Asset-Based Segment

January 2023 Business Update

See tables above for January 2023 revenue, tonnage and shipment metric comparisons. Statistics for January 2023 have not been finalized. Preliminary Asset-Based financial metrics and business trends for January 2023, compared to the same period last year, are as follows:

●	Total Billed Revenue/CWT flat including higher fuel surcharge
●	Total Billed Revenue/Shipment decreased approximately 5%
---	---
●	Total Weight/Shipment decreased approximately 5%
---	---

The January 2023 Asset-Based tonnage and shipment trends, including the year-over-year decrease in weight per shipment, have been impacted by changes in freight profile and business mix. The slowdown in the general economy has impacted customer order quantities and resulting shipment sizes compared to January 2022. Our tech-enabled dynamic LTL-rated, market-based pricing program has been effective in optimizing revenue and managing to more consistent business levels by filling available capacity in our network during this weaker economic environment. As a result, LTL-rated business drove the revenue, shipment and tonnage growth, which was offset by fewer heavier-weighted TL-rated shipments including a reduction in U-Pack household goods loads associated with changes in the housing market.

The pricing environment continues to be rational as the revenue per hundredweight increase in January 2023 followed a 20% increase in January 2022 versus January 2021. Pricing on core LTL-rated business, excluding fuel surcharges, increased by a percentage in the double digits in January 2023.

Excluding periods impacted by the pandemic, the average sequential change in ArcBest’s Asset-Based operating ratio from the fourth quarter to the first quarter during the prior ten years has been an increase of approximately 400 basis points, with higher-than-average changes experienced during declining economic environments.

1Q’23 Other Items

●	Projected Innovative Technology Costs in our Asset-Based business associated with the freight handling pilot test program at ABF Freight (non-GAAP reconciling item): $7 million vs. $7 million in 1Q’22

Asset-Light ArcBest Operating Segment [Excluding FleetNet]

4Q’22 and January 2023 Monthly Total Daily Business Trends


	****	October 2022^(1)^		****	November 2022		****	December 2022		****	January 2023^(2)(3)^		****

Revenue/Day (Year-over-Year)			+48.1	%		-10.9	%		-15.5	%		-23	%
Shipments/Day (Year-over-Year)			+70.9	%		+6.4	%		+0.7	%		+3	%
Revenue/Shipment (Year-over-Year)			-11.7	%		-19.0	%		-19.5	%		-26	%
Purchased Transportation Expense as a % of Revenue		****	82.6	%		84.0	%	****	85.7	%		86	%

1)	Increase is impacted by comparison to the prior-year period, which preceded the acquisition of MoLo on November 1, 2021.
2)	Statistics for the full month of January 2023 have not been finalized and are preliminary.
---	---
3)	There will be 21.0 workdays in January 2023 and there were 20.5 workdays in January 2022, and 64.0 workdays in 1Q’23 and 63.5 workdays in 1Q’22.
---	---
4)	Changes in Shipments/Day and Revenue/Shipment do not include managed transportation solutions transactions for the ArcBest segment for the periods presented.
---	---

First quarter 2022 purchased transportation expense as a percentage of revenue was 85.4%. Year-over-year changes in revenue per shipment and purchased transportation expense as a percentage of revenue reflect continued market softness combined with business mix changes. First quarter 2023 operating expenses, excluding purchased transportation and purchase accounting amortization related to the MoLo acquisition, are currently projected to be comparable to fourth quarter 2022 which would be lower on a per day basis.

ArcBest Consolidated

On a preliminary basis, January 2023 consolidated revenues decreased approximately 8% on a per day basis compared to January 2022.

1Q’23 – Projected Other Items

●	Projected Innovative Technology Costs in “Other and eliminations” related to our freight handling pilot program and human-centered remote and automated operations, as previously announced in connection with our investment in Phantom Auto (non-GAAP reconciling item): $7 million vs. $3 million in 1Q’22
●	Loss in “Other and eliminations” (non-GAAP basis which excludes Projected Innovative Technology Costs): $6 million vs. $5 million in 1Q’22
---	---
●	Interest Expense, net of Interest Income: $1 million vs. $2 million in 1Q’22
---	---

FY’23 – Projected Other Items

●	Projected Innovative Technology Costs in “Other and eliminations” related to our freight handling pilot program and human-centered remote and automated operations, as previously announced in connection with our investment in Phantom Auto (non-GAAP reconciling item): $20 million vs. $14 million in 2022
●	Loss in “Other and eliminations” (non-GAAP basis which excludes Projected Innovative Technology Costs and other items): $24 million vs. $27 million in 2022. The lower loss in 2023 is the result of certain costs in 2022 that are not expected to recur in 2023.
---	---
●	Interest Expense, net of Interest Income: $4 million vs. $4 million in 2022
---	---

ArcBest Consolidated

“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 for the delivery of comprehensive transportation and logistics services to ArcBest’s customers, as well as investments in ArcBest technology and innovation. Shared services represent costs incurred 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. Shared services are primarily allocated to the reporting segments based upon resource utilization-related metrics, such as shipment levels, and therefore fluctuate with business levels. As a result, the loss in “Other and eliminations” tends to be higher in periods when business levels are lower and, consequently, allocations to operating segments are lower.

MoLo Contingent Earnout Consideration

●

Projected expenses related to fair value adjustments for contingent earnout consideration related to the MoLo acquisition in “Other Expense” in the Asset-Light ArcBest operating segment (non-GAAP reconciling item): $6 million to $7 million in 1Q’23 and $25 million to $30 million in FY’23. These estimates are subject to change and are based on a number of assumptions as described in the following paragraph.

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).

ArcBest Consolidated

ArcBest Consolidated Capital Expenditures

FY’22 – Actual

●	Total Net Capital Expenditures, including financed equipment: $211 million
●	Includes revenue equipment purchases (majority for Asset-Based) of $93 million
---	---
●	Revenue equipment purchases in 2022 were lower than the original estimate because of supply chain-related manufacturing delays and cancellations, primarily on new road tractors and trailers. As a result, approximately $60 million of planned 2022 net capital expenditures are included in the 2023 net capital expenditures total.
---	---
●	Depreciation and amortization costs on property, plant and equipment: $127 million
---	---
●	Intangible asset amortization: $13 million
---	---

ArcBest Consolidated Capital Expenditures

FY’23 – Projected

●	Total Net Capital Expenditures, including financed equipment: $300 million to $325 million
●	As noted above, approximately $60 million of previously planned 2022 net capital expenditures, associated with supply chain-related manufacturing delays and cancellations, are included in the 2023 net capital expenditures total.
---	---
●	Includes revenue equipment purchases (majority for Asset-Based) of $175 million
---	---
●	Includes real estate expenditures (majority for Asset-Based) of $55 million to $65 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 $130 million

●	Intangible asset amortization, primarily reflecting purchase accounting amortization related to the MoLo acquisition: $13 million

Share Repurchase Program

●	ArcBest has a share repurchase program with a total of $26.5 million available for purchases of the company’s common stock.

ArcBest Consolidated

Tax Rate

ArcBest’s fourth quarter 2022 effective GAAP tax rate was 29.4%. The “Effective Tax Rate Reconciliation” table of ArcBest’s fourth quarter 2022 earnings press release in Exhibit 99.1 shows the reconciliation of GAAP to non-GAAP effective tax rates. The effective tax rate used to calculate the fourth quarter 2022 non-GAAP EPS was 26.3%. Under the current tax laws, we expect our full year 2023 non-GAAP tax rate 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.

“Other, net” line within Other Income (Costs) on the Consolidated Statements of Operations

The “Other, net” line of ArcBest’s income statement primarily includes the costs associated with postretirement plans and changes in cash surrender value of life insurance. After excluding non-GAAP reconciling items detailed in the table below, ArcBest expects the 2023 non-GAAP “Other, net” expense to approximate the 2022 expense.

Changes in cash surrender value of life insurance included an increase of $0.9 million in fourth quarter 2022 compared to an increase of $1.2 million in fourth quarter 2021, reflecting lower market gains experienced in fourth quarter 2022 on these assets that are invested much like pension plan assets. ArcBest excludes changes in cash surrender value when presenting non-GAAP net income and EPS.


	****	Three Months Ended				Nine Months Ended				****
		December 31				December 31
		2022		2021		2022		2021
		(in millions)
Other, net
Amounts on GAAP basis - income (costs)		$	1.5	$	1.2	$	(2.4)	$	3.8
Non-GAAP Adjustments:
Life insurance proceeds and gains in cash surrender value^(1)^		****	(0.9)		(1.2)	****	2.7		(4.1)
Non-GAAP amounts - income (costs)		$	0.6	$	—	$	0.3	$	(0.3)

1)	Amounts in parentheses indicate gains.

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 widespread outbreak of an illness or disease, including the COVID-19 pandemic, or any other public health crisis, as well as regulatory measures implemented in response to such events; external events which may adversely affect us or the third parties who provide services for us, for which our business continuity plans may not adequately prepare us, including acts of war or terrorism or military conflicts; data breach, cybersecurity incidents, and/or failure 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 potential benefits associated with, new or enhanced technology or processes, including the pilot test program at ABF Freight and our investments in human-centered remote operation software; the loss or reduction of business from large customers; the ability to manage our cost structure, and the timing and performance of growth initiatives; the cost, integration, and performance of any recent or future acquisitions, including the acquisition of MoLo Solutions, LLC, and the inability to realize the anticipated benefits of the acquisition within the expected time period or at all; market fluctuations and interruptions affecting the price of our stock; 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 new revenue equipment, decreases in value of used revenue equipment, and higher costs of equipment-related operating expenses such as maintenance, fuel, and related taxes; availability of fuel, the effect of volatility in fuel prices and the associated changes in fuel surcharges on securing increases in base freight rates, and the inability to collect fuel surcharges; relationships with employees, including unions, and our ability to attract, retain, and develop employees; unfavorable terms of, or the inability to reach agreement on, future collective bargaining agreements or a workforce stoppage by our employees covered under ABF Freight’s collective bargaining agreement; union employee wages and benefits, including changes in required contributions to multiemployer plans; availability and cost of reliable third-party services; our ability to secure independent owner operators and/or operational or regulatory issues related to our use of their services; litigation or claims asserted against us; governmental regulations; environmental laws and regulations, including emissions-control regulations; default on covenants of financing arrangements and the availability and terms of future financing arrangements; self-insurance claims and insurance premium costs; potential impairment of goodwill and intangible assets; general economic conditions and related shifts in market demand that impact the performance and needs of industries we serve and/or limit our customers’ access to adequate financial resources; increasing costs due to inflation and rising interest rates; seasonal fluctuations and adverse weather conditions; and other financial, operational, and legal risks and uncertainties detailed from time to time in ArcBest Corporation’s public filings with the Securities and Exchange Commission (the “SEC”).

Exhibit 99.3

4Q’22<br>Earnings<br>Presentation
Forward Looking Statements<br>2<br>Certain statements and information in this presentation may constitute “forward<br>-<br>looking statements” within the meaning of the Pr<br>ivate Securities Litigation Reform Act of 1995, including, among others, statements<br>regarding (<br>i<br>) our expectations about our intrinsic value or our prospects for growth and value creation and (ii) our financial outlook, p<br>osi<br>tion, strategies, goals, and expectations. Terms such as “anticipate,” “believe,”<br>“could,” “estimate,” “expect,” “forecast,” “foresee,” “intend,” “may,” “plan,” “predict,” “project,” “scheduled,” “should,” “<br>wou<br>ld,” and similar expressions and the negatives of such terms are intended to identify forward<br>-<br>looking statements. These statements are based on management’s beliefs, assumptions, and expectations based on currently avai<br>lab<br>le information, are not guarantees of future performance, and involve certain<br>risks and uncertainties (some of which are beyond our control). Although we believe that the expectations reflected in these<br>for<br>ward<br>-<br>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 ex<br>pre<br>ssed, implied, or forecasted in these statements due to a number of factors, including,<br>but not limited to: the effects of widespread outbreak of an illness or disease, including the COVID<br>-<br>19 pandemic, or any other p<br>ublic 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 busines<br>s c<br>ontinuity plans may not adequately prepare us, including acts of war or terrorism or<br>military conflicts; data breach, cybersecurity incidents, and/or failure of our information systems, including disruptions or<br>fa<br>ilures of services essential to our operations or upon which our information technology<br>platforms rely; interruption or failure of third<br>-<br>party software or information technology systems or licenses; untimely or ineff<br>ective development and implementation of, or failure to realize potential benefits associated<br>with, new or enhanced technology or processes, including the pilot test program at ABF Freight and our investments in human<br>-<br>cent<br>ered remote operation software; the loss or reduction of business from large<br>customers; the ability to manage our cost structure, and the timing and performance of growth initiatives; the cost, integrat<br>ion<br>, and performance of any recent or future acquisitions, including the acquisition of<br>MoLo<br>Solutions, LLC, and the inability to realize the anticipated benefits of the acquisition within the expected time period or a<br>t a<br>ll; market fluctuations and interruptions affecting the price of our stock; maintaining our<br>corporate reputation and intellectual property rights; nationwide or global disruption in the supply chain resulting in incre<br>ase<br>d volatility in freight volumes; competitive initiatives and pricing pressures; increased prices<br>for and decreased availability of new revenue equipment, decreases in value of used revenue equipment, and higher costs of eq<br>uip<br>ment<br>-<br>related operating expenses such as maintenance, fuel, and related taxes;<br>availability of fuel, the effect of volatility in fuel prices and the associated changes in fuel surcharges on securing incre<br>ase<br>s in base freight rates, and the inability to collect fuel surcharges; relationships with<br>employees, including unions, and our ability to attract, retain, and develop employees; unfavorable terms of, or the inabilit<br>y t<br>o reach agreement on, future collective bargaining agreements or a workforce stoppage by<br>our employees covered under ABF Freight’s collective bargaining agreement; union employee wages and benefits, including chang<br>es<br>in required contributions to multiemployer plans; availability and cost of reliable<br>third<br>-<br>party services; our ability to secure independent owner operators and/or operational or regulatory issues related to our u<br>se of their services; litigation or claims asserted against us; governmental regulations;<br>environmental laws and regulations, including emissions<br>-<br>control regulations; default on covenants of financing arrangements and<br>the availability and terms of future financing arrangements; self<br>-<br>insurance claims and<br>insurance premium costs; potential impairment of goodwill and intangible assets; general economic conditions and related shif<br>ts<br>in market demand that impact the performance and needs of industries we serve<br>and/or limit our customers’ access to adequate financial resources; increasing costs due to inflation and rising interest rat<br>es;<br>seasonal fluctuations and adverse weather conditions; and other financial, operational,<br>and legal risks and uncertainties detailed from time to time in ArcBest Corporation’s public filings with the Securities and<br>Exc<br>hange Commission (the “SEC”).<br>For additional information regarding known material factors that could cause our actual results to differ from our projected<br>res<br>ults, please see our filings with the SEC, including our Annual Report on Form 10<br>-<br>K,<br>Quarterly Reports on Form 10<br>-<br>Q, and Current Reports on Form 8<br>-<br>K.<br>Readers are cautioned not to place undue reliance on forward<br>-<br>looking statements, which speak only as of the date hereof. We unde<br>rtake no obligation to publicly update or revise any forward<br>-<br>looking statements after<br>the date they are made, whether as a result of new information, future events, or otherwise.
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3<br>Accelerating<br>growth through a<br>customer focus<br>and investment<br>in people,<br>solutions and<br>technology<br>–<br>generating<br>enhanced<br>shareholder<br>value<br>1<br>2<br>3<br>More Balanced<br>Business Mix<br>Accelerate<br>Asset<br>-<br>Light growth<br>Continue to grow<br>Asset<br>-<br>Based business<br>Optimize Cost<br>Structure<br>Advance adoption of<br>innovative technologies<br>Expand Revenue<br>Opportunities<br>Deepen customer relationships<br>Secure new customers<br>ArcBest Announces Solid<br>Fourth Quarter 2022 Results<br>–<br>Supporting Proven Three<br>-<br>Point Strategy
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STRENGTH OF OUR CUSTOMER<br>-<br>FOCUSED STRATEGY<br>4<br>Customer Need<br>Our Strength<br>Flexible<br>supply chain solutions<br>Broad suite of logistics solutions<br>with integrated and seamless<br>access to services<br>Strength in Action<br>Someone who<br>knows them and<br>their business<br>Dedicated experts to tackle<br>tough<br>challenges<br>Visibility into their<br>supply chain<br>Proactive<br>communications<br>>75% of revenue comes from customers who are<br>engaged digitally<br>Commitment<br>to<br>sustainability and<br>advancing DE&I<br>Long history of good corporate<br>citizenship and industry<br>-<br>leading<br>ESG<br>•<br>AA MSCI Rating<br>•<br>Bronze<br>EcoVadis<br>Rating<br>•<br>Low<br>-<br>Risk<br>Sustainalytics<br>Rating<br>•<br>Piloting electric trucks<br>and use of solar panels<br>>90% of our Top 50<br>customers are<br>cross<br>-<br>sold<br>33% of our accounts were<br>cross<br>-<br>sold (FY 2022) compared<br>to 17% in 2012<br>>60% of our asset<br>-<br>light customers<br>also use ABF<br>Among best in industry for<br>knowledgeable and helpful<br>sales representatives<br>according to<br>Mastio<br>#14 for Employee Training and Development<br>in Training Magazine’s APEX award<br>–<br>13th<br>consecutive year to be recognized<br>•<br>Forbes Best Employer for Diversity<br>•<br>Comparably Best Large Companies for Women<br>•<br>Recruiting neurodiverse talent through<br>partnership with Integrate<br>•<br>Launched new Employee Resource Groups
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STRONG PERFORMANCE ENABLES INVESTMENT FOR GROWTH<br>5<br>INVESTMENT IN:<br>People<br>Solutions<br>Technology<br>Future Growth<br>Double<br>-<br>Digit<br>Revenue Growth<br>2022 YOY daily revenue growth<br>in Asset<br>-<br>Based (17%) and<br>Asset<br>-<br>Light (60%) segments<br>Facility<br>Upgrades &<br>Expansions<br>Investments to enable<br>growth and improve<br>employee experience<br>One<br>-<br>year anniversary<br>of<br>MoLo<br>acquisition<br>–<br>on track for previously<br>shared financial goals<br>Truckload<br>Solutions<br>Technology<br>&<br>Innovation<br>Partnership with<br>Phantom Auto progressing<br>well with customer pilots<br>scheduled in 1Q’23
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STRONG PERFORMANCE ENABLES INVESTMENT FOR GROWTH<br>6<br>Customers continue to choose ArcBest as their<br>preferred partner for solving complex logistics<br>challenges...<br>....and positioning us for the future<br>....Transforming<br>our business to<br>better align with<br>our customer<br>needs<br>82%<br>55%<br>18%<br>45%<br>2012<br>2022<br>Asset-Based<br>Asset-Light<br>Asset<br>-<br>Based / Asset<br>-<br>Light<br>Mix Over Time<br>0%<br>5%<br>10%<br>15%<br>20%<br>25%<br>Revenue CAGR (2012<br>-<br>2022)<br>ArcBest Asset Light<br>Market<br>+21.0%<br>+9.2%<br>><br>$5B<br>Asset Light spend among our loyal,<br>non<br>-<br>price sensitive customers<br>•<br>Serve large markets with nearly $500B opportunity<br>•<br>Continue going deeper with customers<br>–<br>cross<br>-<br>sold<br>customers<br>up 20% YoY<br>•<br>Continued focus on reaching $7B<br>-<br>$8B in revenue by 2025<br>Market stats derived from Armstrong & Associates, US Department of Commerce and ArcBest management estimates
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SOLID<br>FINANCIAL POSITION<br>EBITDA<br>(2)<br>$<br>572<br>M<br>Key<br>Metrics<br>Q4 & FY 2022<br>7<br>$1.2B<br>ArcBest Consolidated Revenue<br>5%<br>$82.7M<br>Non<br>-<br>GAAP Operating Income<br>(2)<br>$2.45/diluted share<br>Non<br>-<br>GAAP Net Income<br>(2)<br>-<br>12%<br>ARCBEST<br>CONSOLIDATED<br>1)<br>Fourth quarter 2022 comparisons are to fourth quarter<br>2021, and full year 2022 comparisons are to full year 2021.<br>2)<br>See non<br>-<br>GAAP reconciliation in the Additional Information<br>section of this presentation.<br>Q4 2022<br>(1)<br>-<br>19%<br>$13.66/diluted share<br>Non<br>-<br>GAAP Net Income<br>(2)<br>$5.3B<br>ArcBest Consolidated Revenue<br>34%<br>$472.9M<br>Non<br>-<br>GAAP Operating Income<br>(2)<br>FULL YEAR 2022<br>(1)<br>49%<br>60%<br>Liquidity<br>$<br>566<br>M<br>Net Cash<br>$<br>61<br>M
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Key<br>Metrics<br>Q4 & FY 2022<br>8<br>ASSET<br>-<br>BASED<br>1)<br>Fourth quarter 2022 comparisons are to fourth quarter<br>2021, and full year 2022 comparisons are to full year 2021.<br>2)<br>See non<br>-<br>GAAP reconciliation in the Additional Information<br>section of this presentation.<br>Q4 2022<br>(1)<br>FULL YEAR 2022<br>(1)<br>$711M<br>Revenue<br>5%<br>per day<br>$3.0B<br>Revenue<br>17%<br>per day<br>Average Increase on<br>Contract Renewals and<br>Deferred Pricing Agreements<br>-<br>480 bps<br>Daily<br>Tonnage<br>-<br>5.5%<br>Daily<br>Shipments<br>0.8%<br>Total Billed<br>Revenue/CWT<br>9.3%<br>5<br>..<br>4<br>%<br>$81.4M<br>Non<br>-<br>GAAP<br>Operating Income<br>(2)<br>88.6%<br>Non<br>-<br>GAAP<br>Operating Ratio<br>(2)<br>170 bps<br>deterioration<br>Average Increase on<br>Contract Renewals and<br>Deferred Pricing Agreements<br>-<br>50 bps<br>Daily<br>Tonnage<br>1.6%<br>Daily<br>Shipments<br>1.5%<br>Total Billed<br>Revenue/CWT<br>14.5%<br>7<br>..<br>3<br>%<br>$409.6M<br>Non<br>-<br>GAAP<br>Operating Income<br>(2)<br>86.4%<br>Non<br>-<br>GAAP<br>Operating Ratio<br>(2)<br>42%<br>-<br>9%<br>240 bps<br>improvement
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Key<br>Metrics<br>JANUARY 2023<br>9<br>Daily Billed<br>Revenue<br>Total Billed<br>Rev/CWT<br>ASSET<br>-<br>BASED<br>Daily<br>Tonnage<br>Daily<br>Shipments<br>Flat<br>Total Billed<br>Rev/Shipment<br>Total<br>Weight/Shipment<br>1%<br>-<br>5%<br>JANUARY 2023<br>PRELIMINARY YOY<br>(1)<br>1)<br>January 2023 comparisons are to January 2022.<br>-<br>5%<br>1%<br>7%
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Key<br>Metrics<br>Q4 2022<br>10<br>ASSET<br>-<br>LIGHT<br>(1)<br>JANUARY 2023 PRELIMINARY YOY<br>(4)<br>Daily Revenue<br>1)<br>The ArcBest and FleetNet reportable segments, combined,<br>represent Asset<br>-<br>Light operations.<br>2)<br>Fourth quarter 2022 comparisons are to fourth quarter<br>2021, and full year 2022 comparisons are to full year 2021.<br>3)<br>See non<br>-<br>GAAP reconciliation in the Additional Information<br>section of this presentation.<br>4)<br>Asset<br>-<br>Light ArcBest Operating Segment, excluding<br>FleetNet.<br>January 2023 comparisons are to January 2022.<br>-<br>23%<br>Q4 2022<br>(2)<br>FULL YEAR 2022<br>(2)<br>$572M<br>Asset<br>-<br>Light Revenue<br>7%<br>per day<br>$2.5B<br>Asset<br>-<br>Light Revenue<br>Non<br>-<br>GAAP<br>Operating Income<br>(3)<br>-<br>32%<br>Adjusted EBITDA<br>(3)<br>$13.4M<br>$11.1M<br>-<br>28%<br>82%<br>Adjusted EBITDA<br>(3)<br>$99.1M<br>$89.7M<br>74%<br>Non<br>-<br>GAAP<br>Operating Income<br>(3)<br>60%<br>per day
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11<br>BALANCED APPROACH TO CAPITAL ALLOCATION<br>Strong business performance enables ArcBest to reinvest in the business and provide returns to<br>shareholders while maintaining a solid balance sheet and investment<br>-<br>grade credit metrics.<br>Reinvesting in the Business<br>Dividends & Share Repurchases<br>M&A Strategies<br>•<br>Expect 2023 Net Capital<br>Expenditures<br>of<br>$300M<br>-<br>$325M<br>•<br>Part of a multi<br>-<br>year investment plan for<br>equipment, real estate, innovation and<br>technology<br>—<br>structured for cost<br>optimization, revenue growth and<br>enhanced work environment<br>•<br>Increased share<br>r<br>epurchases:<br>•<br>Repurchased ~822K shares for $65M in 2022<br>•<br>Completed $100M Accelerated Share Repurchase<br>program (~924K shares in 4Q’21/1Q’22)<br>•<br>Increased dividend by 50% in 2022<br>•<br>Accelerate progress toward strategic goals by adding<br>capabilities and scale to more effectively serve our<br>customers<br>•<br>Look for strong culture fit, experienced leadership<br>team and a pathway to return
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ARCBEST’S CUSTOMER<br>-<br>LED STRATEGY YIELDS RESULTS<br>12<br>><br>5x<br>Revenue per<br>account is over 5X<br>higher on cross<br>-<br>sold accounts<br>><br>4x<br>Profit per account<br>is over 4X higher<br>on cross<br>-<br>sold<br>accounts<br>9%<br>Retention rates are 9 percentage points<br>higher on cross<br>-<br>sold accounts<br>><br>60%<br>Over 60% of our customers who use<br>asset<br>-<br>light services also utilize our<br>asset<br>-<br>based services<br>><br>75%<br>Over 75% of<br>revenue came from<br>digitally connected<br>customers
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Three<br>-<br>Point Strategy Continues to Deliver<br>Shareholder Value & Drive Business Growth<br>13<br>1<br>2<br>3<br>More Balanced<br>Business Mix<br>Accelerate<br>Asset<br>-<br>Light growth<br>Continue to grow<br>Asset<br>-<br>Based business<br>Optimize Cost<br>Structure<br>Advance adoption of<br>innovative technologies<br>Expand Revenue<br>Opportunities<br>Deepen customer relationships<br>Secure new customers<br>ENHANCED<br>SHAREHOLDER<br>VALUE
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14<br>Note: ArcBest Corporation reports its financial results in accordance with generally accepted accounting principles (“GAAP”)<br>.. H<br>owever,<br>management believes that certain non<br>-<br>GAAP performance measures utilized for internal analysis provides analysts, investors, and<br>others the<br>same information that we use internally for purposes of assessing our core operating performance and provides meaningful comp<br>ari<br>sons<br>between current and prior period results, as well as important information regarding performance trends. Accordingly, using t<br>hes<br>e measures<br>improves comparability in analyzing our performance because it removes the impact of items from operating results that, in ma<br>nag<br>ement's<br>opinion, do not reflect our core operating performance. Non<br>-<br>GAAP financial measures should be viewed in addition to, and not as<br>an alternative<br>for, our reported results. These financial measures should not be construed as better measurements than operating income, ope<br>rat<br>ing cash flow,<br>net income or earnings per share, as determined under GAAP.<br>Reconciliations of GAAP to<br>Non<br>-<br>GAAP Financial Measures<br>(Unaudited)<br>ADDITIONAL INFORMATION
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ARCBEST CORPORATION<br>-<br>CONSOLIDATED<br>Three Months Ended<br>Twelve Months Ended<br>Millions ($000,000), except per share data<br>12/31/2022<br>12/31/2021<br>12/31/2022<br>12/31/2021<br>Operating Income<br>Amounts on a GAAP basis<br>$<br>51.2<br>$<br>86.9<br>$<br>399.3<br>$<br>281.0<br>Innovative technology costs, pre<br>-<br>tax<br>(1)<br>10.7<br>8.5<br>40.8<br>32.8<br>Purchase accounting amortization, pre<br>-<br>tax<br>(2)<br>3.2<br>2.5<br>12.9<br>5.3<br>Change in fair value of contingent consideration, pre<br>-<br>tax<br>(3)<br>17.5<br>-<br>18.3<br>-<br>Gain on sale of subsidiary, pre<br>-<br>tax<br>(4)<br>-<br>-<br>(0.4)<br>(6.9)<br>Nonunion vacation policy enhancement, pre<br>-<br>tax<br>(5)<br>-<br>-<br>2.1<br>-<br>Transaction costs, pre<br>-<br>tax<br>(6)<br>-<br>4.4<br>-<br>6.0<br>Non<br>-<br>GAAP amounts<br>(7)<br>$<br>82.7<br>$<br>102.2<br>$<br>472.9<br>$<br>318.1<br>Net Income<br>Amounts on a GAAP basis<br>$<br>37.3<br>$<br>65.5<br>$<br>298.2<br>$<br>213.5<br>Innovative technology costs, after<br>-<br>tax (includes related financing costs)<br>(1)<br>8.1<br>6.4<br>30.8<br>24.9<br>Purchase accounting amortization, after<br>-<br>tax<br>(2)<br>2.4<br>1.8<br>9.6<br>3.9<br>Change in fair value of contingent consideration, after<br>-<br>tax<br>(3)<br>13.0<br>-<br>13.6<br>-<br>Gain on sale of subsidiary, after<br>-<br>tax<br>(4)<br>-<br>-<br>(0.3)<br>(5.4)<br>Nonunion vacation policy enhancement, after<br>-<br>tax<br>(5)<br>-<br>-<br>1.5<br>-<br>Transaction costs, after<br>-<br>tax<br>(6)<br>-<br>3.2<br>-<br>4.4<br>Life insurance proceeds and changes in cash surrender value<br>(0.9)<br>(1.2)<br>2.7<br>(4.1)<br>Tax expense (benefit) from vested RSUs<br>(8)<br>0.2<br>(0.2)<br>(8.1)<br>(7.6)<br>Tax credits<br>(9)<br>1.4<br>(1.5)<br>0.2<br>(1.5)<br>Non<br>-<br>GAAP amounts<br>(7)<br>$<br>61.6<br>$<br>73.9<br>$<br>348.4<br>$<br>228.0<br>Diluted Earnings Per Share<br>Amounts on a GAAP basis<br>$<br>1.48<br>$<br>2.47<br>$<br>11.69<br>$<br>7.98<br>Innovative technology costs, after<br>-<br>tax (includes related financing costs)<br>(1)<br>0.32<br>0.24<br>1.21<br>0.93<br>Purchase accounting amortization, after<br>-<br>tax<br>(2)<br>0.10<br>0.07<br>0.38<br>0.15<br>Change in fair value of contingent consideration, after<br>-<br>tax<br>(3)<br>0.52<br>-<br>0.54<br>-<br>Gain on sale of subsidiary, after<br>-<br>tax<br>(4)<br>-<br>-<br>(0.01)<br>(0.20)<br>Nonunion vacation policy enhancement, after<br>-<br>tax<br>(5)<br>-<br>-<br>0.06<br>-<br>Transaction costs, after<br>-<br>tax<br>(6)<br>-<br>0.12<br>-<br>0.16<br>Life insurance proceeds and changes in cash surrender value<br>(0.04)<br>(0.05)<br>0.11<br>(0.15)<br>Tax expense (benefit) from vested RSUs<br>(8)<br>0.01<br>(0.01)<br>(0.32)<br>(0.29)<br>Tax credits<br>(9)<br>0.06<br>(0.06)<br>0.01<br>(0.06)<br>Non<br>-<br>GAAP amounts<br>(7)<br>$<br>2.45<br>$<br>2.79<br>$<br>13.66<br>$<br>8.52<br>Reconciliations of<br>GAAP to Non<br>-<br>GAAP<br>Financial Measures<br>(Unaudited)<br>15<br>1)<br>Represents costs associated with the freight handling pilot test program at<br>ABF Freight and initiatives to optimize our performance through technological<br>innovation, including costs related to our investment in human<br>-<br>centered<br>remote operation software.<br>2)<br>Represents the amortization of acquired intangible assets related to the<br>November 1, 2021 acquisition of MoLo and previously acquired businesses in<br>the ArcBest segment.<br>3)<br>Represents<br>increase<br>in fair value of the contingent earnout consideration<br>recorded for the MoLo acquisition. The liability for contingent consideration is<br>remeasured at each quarterly reporting date, and any change in fair value as<br>a result of the recurring assessments is recognized in operating income. The<br>contingent consideration for the MoLo acquisition will be paid based on<br>achievement of certain targets of adjusted earnings before interest, taxes,<br>depreciation, and amortization, as adjusted for certain items pursuant to the<br>merger agreement, for years 2023 through 2025.<br>4)<br>Gain relates to the sale of the labor services portion of the ArcBest segment’s<br>moving business in second quarter 2021, including the contingent amount<br>recognized in second quarter 2022 when the funds were released from<br>escrow.<br>5)<br>Represents a one<br>-<br>time, noncash charge for enhancements to our nonunion<br>vacation policy which were effective third quarter 2022.<br>6)<br>Represents<br>costs associated with the acquisition of MoLo.<br>7)<br>Non<br>-<br>GAAP amounts are calculated in total and may not foot due to rounding.<br>8)<br>Represents recognition of the tax impact for the vesting of share<br>-<br>based<br>compensation.<br>9)<br>The 2022 periods include the amount recognized in the tax provision during<br>fourth quarter 2022 to adjust estimated amounts recognized during 2022 for<br>the research and development tax credit related to the tax year ended<br>February 28, 2022. The year ended December 31, 2022 also includes<br>amounts related to the alternative fuel tax credit for the year ended December<br>31, 2021 which were recorded in third quarter 2022. The 2021 amounts<br>represent a research and development tax credit recognized in the tax<br>provision during fourth quarter 2021 which relates to the tax year ended<br>February 28, 2021.
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Reconciliations of<br>GAAP to Non<br>-<br>GAAP<br>Financial Measures<br>(Unaudited)<br>16<br>1)<br>Adjusted EBITDA<br>is a<br>primary component of the financial covenants contained<br>in ArcBest Corporation’s<br>Fourth<br>Amended and Restated Credit Agreement.<br>Management believes Adjusted EBITDA to be relevant and useful information,<br>as EBITDA<br>is a<br>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>-<br>GAAP financial measures should not be construed as better<br>measurements than operating income, operating cash flow, net income, or<br>earnings per share, as determined under GAAP. Non<br>-<br>GAAP financial<br>measures should be viewed in addition to, and not as an alternative for, our<br>reported results. Other companies may calculate EBITDA differently;<br>therefore, our Adjusted EBITDA may not be comparable to similarly titled<br>measures of other companies.<br>2)<br>Includes amortization of intangibles associated with acquired businesses.<br>3)<br>Represents<br>increase<br>in fair value of the contingent earnout consideration<br>recorded for the<br>MoLo<br>acquisition. The liability for contingent consideration is<br>remeasured at each quarterly reporting date, and any change in fair value as<br>a result of the recurring assessments is recognized in operating income. The<br>contingent consideration for the<br>MoLo<br>acquisition will be paid based on<br>achievement of certain targets of adjusted earnings before interest, taxes,<br>depreciation, and amortization, as adjusted for certain items pursuant to the<br>merger agreement, for years 2023 through 2025.<br>4)<br>Gain relates to the sale of the labor services portion of the ArcBest segment’s<br>moving business in second quarter 2021, including the contingent amount<br>recognized in second quarter 2022 when the funds were released from<br>escrow.<br>5)<br>Adjusted EBITDA is calculated in total and may not foot due to rounding.<br>ASSET<br>-<br>LIGHT ADJUSTED EBITDA<br>(1)<br>Three Months Ended<br>December 31<br>Twelve Months Ended<br>December 31<br>2022<br>2021<br>2022<br>2021<br>Total Asset<br>-<br>Light<br>($ millions)<br>($ millions)<br>Operating Income<br>$<br>(9.6)<br>$<br>13.9<br>$<br>58.6<br>$<br>50.9<br>Depreciation and amortization<br>(2)<br>5.5<br>4.7<br>22.6<br>13.0<br>Change in fair value of contingent consideration<br>(3)<br>17.5<br>-<br>18.3<br>-<br>Gain on sale of subsidiary<br>(4)<br>-<br>-<br>(0.4)<br>(6.9)<br>Adjusted EBITDA<br>(5)<br>$<br>13.4<br>$<br>18.6<br>$<br>99.1<br>$<br>57.1<br>CONSOLIDATED ADJUSTED EBITDA<br>(1)<br>Twelve Months Ended<br>December 31, 2022<br>($ millions)<br>Net Income<br>$<br>298.2<br>Interest and other related financing costs<br>7.7<br>Income tax provision<br>94.9<br>Depreciation and amortization<br>(2)<br>140.0<br>Amortization of share<br>-<br>based compensation<br>12.8<br>Change in fair value of contingent consideration<br>(3)<br>18.3<br>Gain on sale of subsidiary<br>(4)<br>(0.4)<br>Consolidated Adjusted EBITDA<br>(5)<br>$<br>571.6
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Reconciliations of<br>GAAP to Non<br>-<br>GAAP<br>Financial Measures<br>(Unaudited)<br>17<br>1)<br>Represents costs associated with the freight handling pilot test program at<br>ABF Freight.<br>2)<br>Represents a one<br>-<br>time, noncash charge for enhancements to our nonunion<br>vacation policy which were effective third quarter 2022.<br>3)<br>Non<br>-<br>GAAP amounts are calculated in total and may not foot due to rounding.<br>4)<br>Represents the amortization of acquired intangible assets related to the<br>November 1, 2021 acquisition of MoLo and previously acquired businesses in<br>the ArcBest segment.<br>5)<br>Represents<br>increase<br>in fair value of the contingent earnout consideration<br>recorded for the MoLo acquisition. The liability for contingent consideration is<br>remeasured at each quarterly reporting date, and any change in fair value as<br>a result of the recurring assessments is recognized in operating income. The<br>contingent consideration for the MoLo acquisition will be paid based on<br>achievement of certain targets of adjusted earnings before interest, taxes,<br>depreciation, and amortization, as adjusted for certain items pursuant to the<br>merger agreement, for years 2023 through 2025.<br>6)<br>Gain relates to the sale of the labor services portion of the ArcBest segment’s<br>moving business in second quarter 2021, including the contingent amount<br>recognized in second quarter 2022 when the funds were released from<br>escrow.<br>Three Months Ended<br>Twelve Months Ended<br>Millions ($000,000)<br>12/31/2022<br>12/31/2021<br>12/31/2022<br>12/31/2021<br>ASSET<br>-<br>BASED SEGMENT<br>Operating Income<br>Amounts on a GAAP basis<br>$<br>75.1<br>89.4%<br>$<br>83.1<br>87.8%<br>$<br>381.1<br>87.3%<br>$<br>260.7<br>89.9%<br>Innovative technology costs, pre<br>-<br>tax<br>(1)<br>6.2<br>(0.9)<br>6.3<br>(0.9)<br>27.2<br>(0.9)<br>27.6<br>(1.1)<br>Nonunion vacation policy enhancement, pre<br>-<br>tax<br>(2)<br>-<br>-<br>-<br>-<br>1.2<br>-<br>-<br>-<br>Non<br>-<br>GAAP amounts<br>(3)<br>$<br>81.4<br>88.6%<br>$<br>89.5<br>86.9%<br>$<br>409.6<br>86.4%<br>$<br>288.3<br>88.8%<br>TOTAL ASSET<br>-<br>LIGHT<br>Operating Income<br>Amounts on a GAAP basis<br>$<br>(9.6)<br>101.7%<br>$<br>13.9<br>97.4%<br>$<br>58.6<br>97.6%<br>$<br>50.9<br>96.7%<br>Purchase accounting amortization, pre<br>-<br>tax<br>(4)<br>3.2<br>(0.6)<br>2.5<br>(0.5)<br>12.9<br>(0.5)<br>5.3<br>(0.3)<br>Change in fair value of contingent consideration,<br>pre<br>-<br>tax<br>(5)<br>17.5<br>(3.1)<br>-<br>-<br>18.3<br>(0.7)<br>-<br>-<br>Gain on sale of subsidiary, pre<br>-<br>tax<br>(6)<br>-<br>-<br>-<br>-<br>(0.4)<br>-<br>(6.9)<br>0.4<br>Nonunion vacation policy enhancement, pre<br>-<br>tax<br>(2)<br>-<br>-<br>-<br>-<br>0.4<br>-<br>-<br>-<br>Non<br>-<br>GAAP amounts<br>(3)<br>$<br>11.1<br>98.1%<br>$<br>16.4<br>97.0%<br>$<br>89.7<br>96.4%<br>$<br>49.3<br>96.8%
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