Slide 1: Earnings Presentation 2Q'23
Earnings Presentation 2Q’23
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements and information in this presentation concerning results for the three months ended June 30, 2023, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements
Slide 3: Q2 2023 Summary
Q 2 2 0 2 3 S U M M A RY • Freight demand continued to be soft – impacted Non-GAAP (1) by customers managing inventory and economic Total Revenues Operating Income growth slowing from continuing operations from continuing operations • Ratified new five-year contract with International Brotherhood of
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 190% $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: Investment Is Required for Growth
INVESTMENT IS REQUIRED FOR GROWTH Pricing Technology Intelligence Tools & Innovation INVESTMENT IN: Daily visibility to industry data and Completed phase one intelligence across our digital rollout of City Route platforms informs yield strategy and Optimization – People enables proprietary pricing t
Slide 7: Key Metrics: ArcBest Consolidated
(1) Q2 2023 Key $1.1B $50.1M Revenue From Non-GAAP Metrics Continuing Operations Operating Income From Continuing Operations (2) ARCBEST 17% 66% C O N S O L I D AT E D per day 1) Second quarter 2023 comparisons are to second quarter 2022. 2) See non-GAAP reconciliation in the Additional SOLID FINANC
Slide 8: Key Metrics: Asset-Based
(1) $51.7M Q2 2023 Non-GAAP Operating Income(2) Key $722M 59% Revenue Metrics 92.8% 10% Non-GAAP Operating Ratio(2) A S S E T- B A S E D per day 830 bps deterioration 1) Second quarter 2023 comparisons are to second quarter 2022. 2) See non-GAAP reconciliation in the Additional Information section o
Slide 9: Key Metrics: Asset-Based July 2023 Preliminary
J U LY 2 0 2 3 Total Billed JULY 2023 P R E L I M I N ARY Y O Y (1) Rev/CWT 7% Daily Billed Key Revenue Metrics Total Billed 12% Rev/Shipment A S S E T- B A S E D 13% 1) July 2023 comparisons are to July 2022. Daily Daily Total Tonnage Shipments Weight/Shipment 5% 1% 6% 9
Slide 10: Key Metrics: Asset-Light
(1) $6.4M Q2 2023 Non-GAAP Operating Income(3) Key $410M 79% Revenue Metrics $8.3M (2) 25% Adjusted EBITDA(3) A S S E T- L I G H T per day 75% 1) Second quarter 2023 comparisons are to second quarter 2022. 2) Asset-Light represents the reportable segment previously named ArcBest. Asset-Light financi
Slide 11: 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
Slide 12: 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 13: Three-Point Strategy Continues to Deliver Shareholder Value
Three-Point Strategy Continues to Deliver Shareholder Value & Drive Business Growth 1 2 3 Accelerate Growth Increase Efficiency Drive Innovation Optimize ABF network Develop and implement Secure new customers disruptive and game changing ENHANCED Drive scale and productivity to innovations Expand wi
Slide 14: 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 15: ArcBest Consolidated
ArcBest Consolidated (including discontinued operations) $ millions 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 Operating Income Amounts on a GAAP basis (1) $ (147.9) $ (46
Slide 16: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of ARCBEST CORPORATION - CONSOLIDATED Three Months Ended GAAP to Non-GAAP Millions ($000,000), except per share data 6/30/2023 6/30/2022 Financial Measures Operating Income from Continuing Operations Amounts on a GAAP basis $ 42.1 $ 136.0 (Unaudited) Innovative technology costs, pre-
Slide 17: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of CONSOLIDATED ADJUSTED EBITDA (1) Twelve Months Ended June 30, 2023 GAAP to Non-GAAP ($ millions) Financial Measures Net Income from Continuing Operations $ 183.5 (Unaudited) Interest and other related financing costs 8.5 Income tax provision 55.0 1) Adjusted EBITDA is a primary co
Slide 18: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of GAAP to Non-GAAP Three Months Ended Financial Measures Millions ($000,000) 6/30/2023 6/30/2022 (Unaudited) ASSET-BASED 1) Represents costs associated with the Vaux freight handling pilot test program Operating Income at ABF Freight. Amounts on a GAAP basis $ 43.3 94.0% $ 116.7 85.