Arcbest Corporation · NASDAQ:ARCB
Arcbest — Q3 2021 Earnings Presentation
18 slides from Arcbest's earnings presentation, Nov 1, 2021
Slide 1: Earnings Presentation Q3 2021
EARNINGS PRESENTATION Q3 | 2021
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. Terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “foresee,” “int
Slide 3: ArcBest Announces Record Third Quarter 2021 Results
ARCBEST ANNOUNCES RECORD THIRD QUARTER 2021 RESULTS Successful growth strategy driving superior performance Advancing strategic vision to better serve customers and further enhance value for shareholders
Slide 4: Continuing to Execute Three-Point Strategy
CONTINUING TO EXECUTE THREE-POINT STRATEGY* 3 2 Optimize Cost Structure 1 More Balanced Advance adoption of Business Mix innovative technologies Expand Revenue Enhanced Opportunities Accelerate Asset-Light growth Shareholder Value Deepen customer Continue to grow relationships Asset-Based business S
Slide 5: Third Quarter 2021 Key Highlights
THIRD QUARTER 2021 KEY HIGHLIGHTS Highest quarterly consolidated revenue and operating income in 1 ArcBest history Double-digit YOY revenue growth in both the Asset-Based and 2 Asset-Light segments Successfully advancing our strategy of being an integrated 3 logistics company offering innovative sol
Slide 6: MoLo Acquisition Advances Strategy
MOLO ACQUISITION ADVANCES STRATEGY PRE-ACQUISITION POST-ACQUISITION BALANCED REVENUE MIX (1 ) Asset-Light Asset-Light 35% 44% $1.3B $1.9B 65% 56% $2.4B $2.4B Asset-Based Asset-Based COMBINED COMPANY ArcBest is a Top 15 U.S. truckload broker. ArcBest has access to 70,000 truckload carrier partners. A
Slide 7: ArcBest Balanced Capital Allocation
ARCBEST BALANCED CAPITAL ALLOCATION SOLID FINANCIAL POSITION (1) • Cash Balance: $133M ($111M Net Debt) • Debt Maintenance: 0.7X Debt to LTM EBITDAR(2) • Total liquidity: $373M RETURN OF CAPITAL TO SHAREHOLDERS BALANCED • Dividend of $0.32 per share (annual) CAPITAL • Share Repurchase Program STRATE
Slide 8: Key Financial Metrics 3Q'21 YOY
KEY FINANCIAL METRICS 3Q’21 YOY ArcBest Consolidated Revenue $1.0 billion 28% Non-GAAP Operating Income (1) $96.1 million 110% Non-GAAP Net Income (1) $2.59/diluted share 112% 1) See non-GAAP reconciliation in the Additional Information section of this presentation. 8
Slide 9: Asset-Based Key Metrics
ASSET-BASED KEY METRICS 3Q’21 YOY Revenue $681 million 21% Non-GAAP Operating Profit (1) $90.5 million 111% Non-GAAP Operating Ratio (1)(2) 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 Renewal
Slide 10: Asset-Based Key Metrics (October 2021 Preliminary)
ASSET-BASED KEY METRICS 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 10
Slide 11: Asset-Light Key Metrics
ASSET-LIGHT KEY METRICS (1) 3Q’21 YOY Revenue $371 million 39% Operating Profit $11.5 million 97% Adjusted EBITDA $14.2 million 64% (2) October 2021 Preliminary YOY (3) Daily Revenue 46% Daily Purchased Transportation Expense 45% 1) The ArcBest and FleetNet reportable segments, combined, rep
Slide 12: Environmental, Social and Corporate Governance (ESG)
ENVIRONMENTAL, 3Q’21 ▪ Released ArcBest’s 2020 ESG Report SOCIAL AND YTD’21 ▪ March 2021 – Awarded a Bronze medal for its 2021 sustainability rating CORPORATE by EcoVadis which put ArcBest in the top half of all companies and industries rated across the world GOVERNANCE (ESG) ▪ April 2021 – Recogniz
Slide 13: ArcBest's Customer-Led Strategy
ARCBEST’S CUSTOMER-LED STRATEGY 1 Revenue per account is over 5X higher on cross-sold accounts Cross-selling 2 Profit per account is over 4X higher on cross-sold accounts Benefits Retention rates are 9 percentage points higher on cross-sold 3 accounts Over 60% of our customers who use asset-light se
Slide 14: Q&A
ArcBest Q&A
Slide 15: Additional Information
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 for
Slide 16: Reconciliations of GAAP to Non-GAAP Financial Measures
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) Three Months Three Months Ended 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 amoun
Slide 17: Reconciliations of GAAP to Non-GAAP Financial Measures: Asset-Based Segment
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 co
Slide 18: Reconciliations of GAAP to Non-GAAP Financial Measures: Adjusted EBITDA
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) Three Months Ended (1) ASSET-LIGHT ADJUSTED EBITDA 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 TTM Ended (1) CONSOLIDATED