Slide 1: Earnings Presentation 1Q'24
Earnings Presentation 1Q’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: 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 Revenue & Profit Revenue & Profit per account >70% 5% is over 3X higher in cross-sold accounts Asset-Light + Higher Customer Retention Asset-Based 3x 3x Over 70% of our Retention rates are 5 customers who use perce
Slide 5: Quarter in Review
QUARTER IN REVIEW Highest On-Time 3-Year High Performance & Network Efficiency Since 2021 +35% Pipeline Since January 5 TH Sustainability Customer Demand is Strong and Growing Report Issued 53 NEW DOORS New Service Center Launched Vaux Smart Autonomy $1B Olathe, KS. Revenue Generated 5
Slide 6: Excellence in Action
EXCELLENCE IN ACTION 10x Winner ATA Excellence in Security 10x Winner ATA Cargo Claims and Loss Prevention National Carrier of the Year 6
Slide 7: Key Metrics: ArcBest Consolidated
(1) Q1 2024 Key $1B $42.6M Metrics ArcBest Consolidated Revenue Non-GAAP Operating Income(2) ARCBEST C O N S O L I D AT E D -6% -18% (From Continuing Operations) 1) All comparisons are on a year-over-year basis. 2) See non-GAAP reconciliation in the Additional Information section of this presentatio
Slide 8: Key Metrics: Asset-Light
Q1 2024 (1) ($4.7M) Non-GAAP Operating Loss(2) Key $396M -215% Revenue Metrics ($2.9M) A S S E T- L I G H T Adjusted EBITDA(2) -9% per day -148% 1) All comparisons are on a year-over-year basis. 2) See non-GAAP reconciliation in the Additional Information section of this presentation. AP R I L 2 0 2
Slide 9: Key Metrics: Asset-Based
Q1 2024 (1) $53.5M Non-GAAP Operating Income(2) Key $671M = Flat Revenue Metrics 92.0% A S S E T- B A S E D -3% per day Non-GAAP Operating Ratio(2) 30 bps improvement 1) 2) All comparisons are on a year-over-year basis. See non-GAAP reconciliation in the Additional Information Daily Total Daily Tota
Slide 10: Key Metrics: Asset-Based April 2024 Preliminary
APRIL 2024 Total Billed APRIL 2024 (1) P R E L I M I N ARY Rev/CWT 24% Daily Billed Key Revenue Metrics Total Billed -4% Rev/Shipment A S S E T- B A S E D 4% 1) All comparisons are on a year-over-year basis. Daily Total Daily Total Tonnage Shipments Total Weight/Shipment -22% -7% -16% Daily Core Dai
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 invest organically in the business and provide returns to shareholders while maintaining a solid balance sheet and investment-grade credit metrics Share Repurchases & Dividends Organic
Slide 12: City Route Optimization Continues to Provide Meaningful Cost Savings
1.5% 17% City Route Increase in street productivity Reduction in local cartage utilization Optimization Continues to Provide Meaningful Cost Savings $12.3 Million In Cost Savings to date 12
Slide 13: Service Improvements
S E RV I C E I M P R O V E M E N T S We listened to Developed Solutions Resulting in improved Customers to meet their needs service & efficiency Recently Ongoing Upcoming Focus Area Completed Initiatives Projects 95% Single-Invoice Bills Customer Service 3 4 2 63K Claims Prevention 3 1 5 3-Year 3-ye
Slide 14: Facility Plan Enables Growth
FA C I L I T Y P L A N E N A B L E S G R O W T H Net New Doors Since 2021 ArcBest continues to invest 9,700 9,620 organically to grow capacity 9,575 45 9,500 9,432 143 Long-term facility plan designed 9,337 95 9,284 to enable growth 9,300 53 299 9,100 Planning nearly 800 door 8,985 9,575 expansion s
Slide 15: Strategy in Action: Asset-Based Operating Ratio Improvement
Strategy in Action Improvement 760 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% 90.3% 88.8% (1) Operating Ratio adjusted for certain unusual items. See Reconciliations of GAAP to non-GAAP Financial Measures in the Additional Infor
Slide 16: 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 17: Reconciliations of GAAP to Non-GAAP Financial Measures
ARCBEST CORPORATION – CONSOLIDATED Three Months Ended Reconciliations of Millions ($000,000), except per share data 3/31/2024 3/31/2023 GAAP to Non-GAAP Operating Income from Continuing Operations Amounts on a GAAP basis $ 22.4 $ 21.2 Financial Measures Innovative technology costs, pre-tax (1) 9.7 1
Slide 18: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of CONSOLIDATED ADJUSTED EBITDA (1) Twelve Months Ended March 31, 2024 GAAP to Non-GAAP ($ millions) Financial Measures Net Income from Continuing Operations $ 120.4 (Unaudited) Interest and other related financing costs 9.0 Income tax provision 38.3 Depreciation and amortization (2)
Slide 19: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of GAAP to Non-GAAP Three Months Ended Millions ($000,000) 3/31/2024 3/31/2023 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