Slide 1: Earnings Presentation 2Q'24
Earnings Presentation 2Q’24
Slide 2: Forward Looking Statements
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 presentation may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of
Slide 3: 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 Leverage technology Develop and implement Secure new customers disruptive and game changing ENHANCED Optimize ABF network innovations Expand with existing
Slide 4: Quarter in Review: 80% of revenue from customers with 10+ year relationship
QUARTER IN REVIEW CUSTOMER-LED STRATEGY: 80% of revenue from customers with 10+ year relationship +38% Pipeline This Year Best On-Time Performance in Customer Demand is Five Years Strong and Growing Double Digit Growth in Managed Transportation $1B Revenue Generated Significant Efficiency Improvemen
Slide 5: Leadership Changes
LEADERSHIP CHANGES Seth Runser named ArcBest President – to oversee day-to-day operations across the integrated solutions Judy R. McReynolds remains Chairman and CEO – focused on advancing strategy Matt Godfrey named ABF President – advancing the transformation of ABF 5
Slide 6: New Doors: Strategic Facility and Network Enhancements
S T R AT E G I C FA C I L I T Y A N D N E T W O R K E N H A N C E M E N T S Adding ✓ Enables Growth Capacity: ✓ Improves Service ✓ Increases Efficiency +16% 79 NEW DOORS Added in 2Q24 Productivity Improvement Strategically adding capacity: ~800 at New Locations A New Service Center door expansion si
Slide 7: Continually Raising the Bar on Excellence
C O N T I N U A L LY R A I S I N G T H E B A R O N E X C E L L E N C E • Culture of continuous improvement Process and compliance Exceeded training exceeding 2Q Goal 3.8x • 40-years of using the Quality Process 2Q Actual expectations on net Net Savings to drive efficiencies revenue impact • Do-It-Ri
Slide 8: Transforming Operations Through ABF Optimization
T R A N S F O R M I N G O P E R AT I O N S T H R O U G H A B F O P T I M I Z AT I O N ~70 projects in City Route Optimization Phase 1 Savings Optimization portfolio • 30% Operationalized $13M+ • 30% In pilot to expand stages Per Year City Route Optimization Phase 1 is complete and saving $13M+ annua
Slide 9: Key Metrics: ArcBest Consolidated Q2 2024
(1) Q2 2024 Key $1.08B $64.2M ArcBest Non-GAAP Metrics Consolidated Revenue Operating Income (2) ARCBEST -2% +28% C O N S O L I D AT E D (From Continuing Operations) 1) All comparisons are on a year-over-year basis. Non-GAAP Non-GAAP 2) See non-GAAP reconciliation in the Additional Information secti
Slide 10: Key Metrics: Asset-Based Q2 2024
(1) $72.8M Q2 2024 Non-GAAP Operating Income(2) $713M +41% 2nd Best Operating Income in 2Q History Key Revenue 89.8% Metrics -2% per day Non-GAAP Operating Ratio(2) 300 bps improvement A S S E T- B A S E D Daily Total Daily Total Total Billed Weight/ Tonnage Shipments Rev/CWT Shipment 1) All compari
Slide 11: Effective Initiative Management Overcomes Headwinds
Strategy in Action I M P R O V E D A S S E T - B A S E D O P E R AT I N G I N C O M E Effective Initiative Management Overcomes Headwinds (Non-GAAP) (1) (1) Operating Income adjusted for certain unusual items. See Reconciliations of GAAP to non-GAAP Financial Measures in the Additional Information s
Slide 12: 840 bps Improvement in Asset-Based Operating Ratio
Strategy in Action Improvement 840 bps IMPROVEMENT in Asset-Based Compared to 2016 Operating 97.9% Ratio (1) 96.9% (Non-GAAP) 94.5% 94.2% 93.3% 90.4% 89.5% 88.8% (1) Operating Ratio adjusted for certain unusual items. See Reconciliations of GAAP to non-GAAP Financial Measures in the Additional Infor
Slide 13: Key Metrics: July 2024 Preliminary, Asset-Based
J U LY 2 0 2 4 P R E L I M I N A R Y (1) JULY 2024 Daily Billed Total Billed Total Billed Revenue Rev/CWT Rev/Shipment Key +1% +16% -1% Metrics Daily Total Tonnage Daily Total Shipments Total Weight/Shipment A S S E T- B A S E D -13% +1% -14% 1) All comparisons are on a year-over-year basis. 13
Slide 14: Key Metrics: Asset-Light Q2 2024
Q2 2024 (1) ($2.5M) Non-GAAP Operating Loss (2) -139% Key $396M Revenue Metrics ($0.6M) -4% per day A S S E T- L I G H T Adjusted EBITDA (2) -107% 1) All comparisons are on a year-over-year basis. 2) See non-GAAP reconciliation in the Additional Information section of this presentation. Revenue/ Dai
Slide 15: Key Metrics: July 2024 Preliminary, Asset-Light
J U LY 2 0 2 4 P R E L I M I N A R Y (1) July 2024 Revenue/Day Daily Total Shipments Key -10% +1% Metrics Revenue/Shipment Purchased Transportation as % of Revenue A S S E T- L I G H T -10% 87% 1) All comparisons are on a year-over-year basis. 15
Slide 16: 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 >3x >70% 5% Revenue & Profit Revenue & Profit per account Asset-Light + Higher Customer Retention is over 3X higher in cross-sold accounts Asset-Based Over 70% of our Retention rates are 5 3x 3x customers who use perce
Slide 17: Balanced Investment Approach
BALANCED INVESTMENT APPROACH Strong business performance enables ArcBest to invest organically in the business and provide returns to shareholders while maintaining a solid balance sheet and investment-grade credit metrics Solid Financial Position Share Repurchases & Dividends • Net cash position of
Slide 18: Excellence in Action: The Only 10x Winner
EXCELLENCE IN ACTION The Only 10x Winner ATA Excellence in Security 18
Slide 19: 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 20: Reconciliations of GAAP to Non-GAAP Financial Measures
ARCBEST CORPORATION – CONSOLIDATED Three Months Ended Reconciliations of Millions ($000,000), except per share data 6/30/2024 6/30/2023 GAAP to Non-GAAP Operating Income from Continuing Operations Amounts on a GAAP basis $ 48.8 $ 42.1 Financial Measures Innovative technology costs, pre-tax (1) 8.3 1
Slide 21: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of CONSOLIDATED ADJUSTED EBITDA (1) Twelve Months Ended 6/30/2024 GAAP to Non-GAAP ($ millions) Financial Measures Net Income from Continuing Operations $ 127.7 (Unaudited) Interest and other related financing costs 8.9 Income tax provision 31.5 Depreciation and amortization (2) 147.
Slide 22: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of GAAP to Non-GAAP Three Months Ended Millions ($000,000) 6/30/2024 6/30/2023 Financial Measures ASSET-BASED (Unaudited) Operating Income 1) Represents costs associated with the freight handling pilot test program at ABF Freight, for which the decision was made to pause the pilot du