Slide 1: Earnings Presentation 1Q'23
Earnings Presentation 1Q’23
Slide 2: Forward Looking Statements
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, including, among others, statements regarding (i) our expectations about our intrinsic value or o
Slide 3: ArcBest Announces Solid First Quarter 2023 Results
ArcBest Announces Solid First Quarter 2023 Results – Accelerating Supporting Proven Three-Point Strategy growth through a 1 2 3 customer focus and investment Accelerate Growth Increase Efficiency Drive Innovation in people, Secure new customers Expand with existing Optimize ABF network Develop and i
Slide 4: Strength of Our Customer-Focused Strategy
S T R E N G T H O F O U R C U S T O M E R - F O C U S E D S T R AT E G Y Customer Need Our Strength Strength in Action Broad suite of logistics solutions >90% of our Top 50 33% of our accounts were >60% of our asset- Flexible customers are cross-sold (FY 2022) compared light customers with integrate
Slide 5: Accelerating Performance Over Sustained Period
A C C E L E R AT I N G P E R F O R M A N C E O V E R S U S TA I N E D P E R I O D 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 $5.3B Revenue $4.0B up 261% $2.3B $2.6B $2.7B $2.7B $2.8B $3.1B $3.0B $2.9B $1.9B $2.1B $1.5B $1.7B $473M Operating $318M Income $159M $118M $128M (
Slide 6: A Transformed Company
A T R A N S F O R M E D C O M PA N Y 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ONGOING INVESTMENT IN TECHNOLOGY AND EQUIPMENT Total 543% Increase in revenue from logistics services since 2009 (7% in 2009 vs 45% in 2022) Revenue: $5.3B Realignment and enhanced market 45% a
Slide 7: Solid Performance Enables Investment for Growth
SOLID PERFORMANCE ENABLES INVESTMENT FOR GROWTH Pricing Technology Intelligence Tools & Innovation INVESTMENT IN: Dynamic pricing solution provides Launched innovative flexible lever to profitably fill Vaux Freight Movement asset-based network capacity System – March 2023 People Solutions Truckload
Slide 8: Key Metrics: ArcBest Consolidated
(1) Q1 2023 Key $1.1B $51.9M Revenue From Non-GAAP Metrics Continuing Operations Operating Income From Continuing Operations (2) ARCBEST -13% -51% C O N S O L I D AT E D per day 1) First quarter 2023 comparisons are to first quarter 2022. 2) See non-GAAP reconciliation in the Additional Information
Slide 9: Key Metrics: Asset-Based
(1) $53.5M Q1 2023 Non-GAAP Operating Income(2) Key $698M -38% Revenue Metrics 92.3% -2% Non-GAAP Operating Ratio(2) A S S E T- B A S E D per day 460 bps deterioration 1) First quarter 2023 comparisons are to first quarter 2022. 2) See non-GAAP reconciliation in the Additional Information section of
Slide 10: Key Metrics: Asset-Based April 2023 Preliminary
APRIL 2023 Total Billed APRIL 2023 P R E L I M I N ARY Y O Y (1) Rev/CWT - 10% Daily Billed Key Revenue Metrics Total Billed - 11% Rev/Shipment A S S E T- B A S E D - 14% 1) April 2023 comparisons are to April 2022. Daily Daily Total Tonnage Shipments Weight/Shipment Flat 4% - 4% 10
Slide 11: Key Metrics: Asset-Light
(1) $4.1M -84% Q1 2023 Non-GAAP Operating Income(3) Key $438M Revenue $6.0M -78% Adjusted EBITDA(3) Metrics -27% (2) A S S E T- L I G H T per day Daily 1.0% Shipments (4) 1) First quarter 2023 comparisons are to first quarter 2022. 2) Asset-Light represents the reportable segment previously named Ar
Slide 12: Balanced Approach to Capital Allocation
B A L A N C E D A P P R O A C H T O C A P I TA L A L L O C AT I O N Strong business performance enables ArcBest to reinvest in the business and provide returns to shareholders while maintaining a solid balance sheet and investment-grade credit metrics. Dividends & Share Repurchases Increased share r
Slide 13: ArcBest's Customer-Led Strategy Yields Results
A R C B E S T ’ S C U S T O M E R - L E D S T R AT E G Y Y I E L D S R E S U LT S 9% Retention rates are 9 percentage points >5x higher on cross-sold accounts Revenue per account is over 5X Over 75% of >75% higher on cross- revenue came from >4x digitally connected sold accounts customers Profit per
Slide 14: Three-Point Strategy Continues to Deliver Shareholder Value & Drive Business Growth
Three-Point Strategy Continues to Deliver Shareholder Value & Drive Business Growth 1 2 3 Accelerate Growth Increase Efficiency Drive Innovation Secure new customers Optimize ABF network Develop and implement disruptive and game-changing Expand with existing Drive scale and productivity innovations
Slide 15: Reconciliations of GAAP to Non-GAAP Financial Measures
A D D I T I O N A L I N F O R M AT I O N Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited) Note: ArcBest Corporation reports its financial results in accordance with generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP performance mea
Slide 16: ArcBest Consolidated (including discontinued operations)
ArcBest Consolidated (including discontinued operations) RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ArcBest Corporation – Consolidated ($ millions) Operating Income Amounts on a GAAP basis (1) $ (147.9) $ (
Slide 17: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of GAAP to Non-GAAP ARCBEST CORPORATION - CONSOLIDATED Millions ($000,000), except per share data Three Months Ended 3/31/2023 3/31/2022 Financial Measures (Unaudited) Operating Income from Continuing Operations Amounts on a GAAP basis $ 21.2 $ 92.9 Innovative technology costs, pre-t
Slide 18: Consolidated Adjusted EBITDA Reconciliation
Reconciliations of CONSOLIDATED ADJUSTED EBITDA (1) Twelve Months Ended March 31, 2023 GAAP to Non-GAAP (continuing operations) ($ millions) Financial Measures Net Income $ 245.5 (Unaudited) Interest and other related financing costs (8.1) Income tax provision 76.1 1) Adjusted EBITDA is a primary co
Slide 19: Asset-Based Segment Reconciliation
Reconciliations of GAAP to Non-GAAP Three Months Ended Financial Measures Millions ($000,000) 3/31/2023 3/31/2022 (Unaudited) ASSET-BASED SEGMENT 1) Represents costs associated with the freight handling pilot test program at Operating Income ABF Freight. Amounts on a GAAP basis $ 47.5 93.2% $ 80.0 8