Slide 1: Earnings Presentation Q3 2021
EARNINGS PRESENTATION Q3 | 2021
Slide 2: Forward-looking statements
Certain statements and information in this presentation may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “foresee,” “intend,” “may,” “plan,” “predi
Slide 3: ArcBest Announces Record Third Quarter 2021 Results
Successful growth strategy driving superior performance ARCBEST ANNOUNCES RECORD THIRD QUARTER 2021 RESULTS Advancing strategic vision to better serve customers and further enhance value for shareholders
Slide 4: Continuing to Execute Three-Point Strategy
4 CONTINUING TO EXECUTE THREE-POINT STRATEGY* 1 2 3 More Balanced Business Mix Accelerate Asset-Light growth Continue to grow Asset-Based business Optimize Cost Structure Advance adoption of innovative technologies Expand Revenue Opportunities Deepen customer relationships Secure new customers ✓ ✓ ✓
Slide 5: Third Quarter 2021 Key Highlights
1 Highest quarterly consolidated revenue and operating income in ArcBest history 2 Double-digit YOY revenue growth in both the Asset-Based and Asset-Light segments 3 Successfully advancing our strategy of being an integrated logistics company offering innovative solutions to our customers’ supply ch
Slide 6: MoLo Acquisition Advances Strategy
ArcBest is a Top 15 U.S. truckload broker. ArcBest has access to 70,000 truckload carrier partners. ArcBest has a leading customer delivery platform in the growing domestic transportation management marketplace [$91 Billion(2)]. 6 MOLO ACQUISITION ADVANCES STRATEGY 56% 44% 65% 35% $2.4B $1.9B Asset-
Slide 7: ArcBest Balanced Capital Allocation
ARCBEST BALANCED CAPITAL ALLOCATION 1) Proforma financial position at 9/30/21 including payments for the MoLo acquisition and the $100 million accelerated share repurchase (ASR). 2) See non-GAAP reconciliation in the Additional Information section of this presentation. GROWTH AND OPERATING INITIATIV
Slide 8: Key Financial Metrics
3Q’21 YOY ArcBest Consolidated Revenue $1.0 billion 28% Non-GAAP Operating Income $96.1 million 110% Non-GAAP Net Income $2.59/diluted share 112% 8 8 KEY FINANCIAL METRICS (1) 1) See non-GAAP reconciliation in the Additional Information section of this presentation. (1)
Slide 9: Asset-Based Key Metrics
9 3Q’21 YOY Revenue $681 million 21% Non-GAAP Operating Profit $90.5 million 111% Non-GAAP Operating Ratio 86.7% 570 bps improvement Daily Tonnage 12,672 2.4% Daily Shipments 19,526 0.5% Total Billed Rev/CWT $41.79 17.1% Average Increase on Contract Renewals and Deferred Pricing Agreements
Slide 10: Asset-Based Key Metrics: October 2021 Preliminary
10 10 October 2021 Preliminary YOY Daily Billed Revenue 20% Daily Tonnage 1% Daily Shipments 1% Total Billed Rev/CWT 18% Total Billed Rev/Shipment 18% Total Weight/Shipment Flat ASSET-BASED KEY METRICS
Slide 11: Asset-Light Key Metrics
11 11 3Q’21 YOY Revenue $371 million 39% Operating Profit $11.5 million 97% Adjusted EBITDA $14.2 million 64% ASSET-LIGHT KEY METRICS 1) The ArcBest and FleetNet reportable segments, combined, represent Asset-Light operations. 2) See non-GAAP reconciliation in the Additional Information sectio
Slide 12: Environmental, Social and Corporate Governance (ESG)
ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE (ESG) 3Q’21 ▪ Released ArcBest’s 2020 ESG Report YTD’21 ▪ March 2021 – Awarded a Bronze medal for its 2021 sustainability rating by EcoVadis which put ArcBest in the top half of all companies and industries rated across the world ▪ April 2021 – Recogniz
Slide 13: ArcBest's Customer-Led Strategy: Cross-selling Benefits
1 Revenue per account is over 5X higher on cross-sold accounts 2 Profit per account is over 4X higher on cross-sold accounts 3 Retention rates are 9 percentage points higher on cross-sold accounts 4 Over 60% of our customers who use asset-light services also utilize our asset-based services ARCBEST’
Slide 14: ArcBest
ArcBest
Slide 15: Additional Information: Reconciliations of GAAP to Non-GAAP Financial Measures
15 ADDITIONAL INFORMATION RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) Note: ArcBest Corporation reports its financial results in accordance with generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP performance measures utilized
Slide 16: Reconciliations of GAAP to Non-GAAP Financial Measures
16 RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) Three Months Ended Three Months Ended Millions ($000,000) 9/30/2021 9/30/2020 Operating Income Amounts on a GAAP basis $ 87.6 $ 39.8 Innovative technology costs, pre-tax (1) 6.9 6.0 Transaction costs, pre-tax (2) 1.6 - Non-GAAP am
Slide 17: Reconciliations of GAAP to Non-GAAP: Asset-Based Segment
17 RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) ASSET-BASED SEGMENT Operating Income 2016 3Q’21 TTM 3Q’20 3Q’21 ($ millions) Amounts on a GAAP basis (1) $ 37.4 98.0% $ 205.5 91.6% $ 36.6 93.5% $ 83.6 87.7% Restructuring charges, pre-tax (2) 1.2 (0.1) --- Innovative technology c
Slide 18: Reconciliations of GAAP to Non-GAAP: Asset-Light Adjusted EBITDA
18 RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) ASSET-LIGHT ADJUSTED EBITDA (1) Three Months Ended September 30 2021 2020 Total Asset-Light ($ millions) Operating Income $ 11.5 $ 5.8 Depreciation and amortization 2.8 2.8 Adjusted EBITDA (2) $ 14.2 $ 8.6 CONSOLIDATED ADJUSTED EB