Arcbest Corporation · NASDAQ:ARCB
Arcbest — Q4 2021 Earnings Presentation
19 slides from Arcbest's earnings presentation, Feb 1, 2022
Slide 1: Q4 2021 Earnings Presentation
Q4 2021 Earnings Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements 2 Certain statements and information in this presentation may constitute “forward - looking statements” within the meaning of the Pr ivate Securities Litigation Reform Act of 1995, including, among others, statements regarding ( i ) our expectations about our intrinsic val
Slide 3: Accelerating growth by focusing on customers, empowering employees, and expanding capacity options
Accelerating growth by focusing on customers, empowering employees, and expanding capacity options – generating enhanced shareholder value ArcBest Announces Record Fourth Quarter and Full Year 2021 Results 3
Slide 4: Key Highlights
KEY HIGHLIGHTS 4 $4B Achieved record $4B in annual revenue Highest quarterly and annual consolidated revenue and net income in ArcBest history RECORD PERFORMANCE 55% New hires are diverse $318M non - GAAP* annual operating income +149% *See non - GAAP reconciliation in the Additional Information sec
Slide 5: Three-Point Strategy Continues to Deliver Shareholder Value & Drive Business Growth
Three - Point Strategy Continues to Deliver Shareholder Value & Drive Business Growth 5 1 2 3 More Balanced Business Mix Accelerate Asset - Light growth Continue to grow Asset - Based business Optimize Cost Structure Advance adoption of innovative technologies Expand Revenue Opportunities Deepen cus
Slide 6: ArcBest's Customer-Led Approach
ARCBEST’S CUSTOMER - LED APPROACH 6 5x Revenue per account is over 5X higher on cross - sold accounts 4x Profit per account is over 4X higher on cross - sold accounts 9% Retention rates are 9 percentage points higher on cross - sold accounts >60% Over 60% of our customers who use asset - light servi
Slide 7: ArcBest Balanced Capital Allocation
ArcBest Balanced Capital Allocation 7 1) See the calculation of Consolidated Adjusted EBITDAR within the non - GAAP reconciliations in the Additional Information section o f this presentation. BALANCED CAPITAL STRATEGY SOLID FINANCIAL POSITION As of 12/31/21 RETURN OF CAPITAL TO SHAREHOLDERS GROWTH
Slide 8: Key Metrics Q4 & Full Year 2021
Key Metrics Q4 & FULL YEAR 2021 8 $1.2B ArcBest Consolidated Revenue 45% $102.2M Non - GAAP Operating Income (2) $2.79/diluted share Non - GAAP Net Income (2) 171% COMPANY FINANCIALS 1) Fourth quarter 2021 comparisons are to fourth quarter 2020, and full year 2021 comparisons are to full year 2020.
Slide 9: Key Metrics Q4 & Full Year 2021 Asset-Based
Key Metrics Q4 & FULL YEAR 2021 9 ASSET - BASED 1) Fourth quarter 2021 comparisons are to fourth quarter 2020, and full year 2021 comparisons are to full year 2020. 2) See non - GAAP reconciliation in the Additional Information section of this presentation. Q4 2021 (1) FULL YEAR 2021 (1) $684M Reven
Slide 10: Key Metrics Jan 2022 Asset-Based
Key Metrics JAN 2022 10 Daily Billed Revenue Total Billed Rev/CWT ASSET - BASED Daily Tonnage Daily Shipments 22% 2% 1% 20% Total Billed Rev/Shipment 23% Total Weight/Shipment 3% JANUARY 2022 (1) PRELIMINARY 1) January 2022 comparisons are to January 2021.
Slide 11: Key Metrics Q4 2021 Asset-Light
Key Metrics Q4 2021 11 ASSET - LIGHT (1) JANUARY 2022 PRELIMINARY YOY (4) Daily Revenue 1) The ArcBest and FleetNet reportable segments, combined, represent Asset - Light operations. 2) Fourth quarter 2021 comparisons are to fourth quarter 2020, and full year 2021 comparisons are to full year 2020.
Slide 12: Environmental, Social And Corporate Governance
Environmental, Social And Corporate Governance ESG 12 • March 2021 – Awarded a Bronze medal for our 2021 sustainability rating by EcoVadis which put ArcBest in the top half of all companies and industries rated across the world • April 2021 – Recognized as one of America’s Best Employers for Diversi
Slide 13: Three-Point Strategy Continues to Deliver Shareholder Value & Drive Business Growth
Three - Point Strategy Continues to Deliver Shareholder Value & Drive Business Growth 13 1 2 3 More Balanced Business Mix Accelerate Asset - Light growth Continue to grow Asset - Based business Optimize Cost Structure Advance adoption of innovative technologies Expand Revenue Opportunities Deepen cu
Slide 14: Updated Long-Term Financial Targets
UPDATED LONG - TERM FINANCIAL TARGETS 14 Driving Growth, Enhancing Efficiency, and Delivering Superior Returns for the Benefit of ArcBest Shareholders 2025 REVENUE OPERATING MARGIN ROCE (1) $7B - $8B 10% - 15% Asset - Based 4% - 6% Asset - Light (excluding FleetNet ) Exceed Long - Term Average of S&
Slide 15: Q & A
Q & A 15
Slide 16: Note on non-GAAP financial measures
16 Note: ArcBest Corporation reports its financial results in accordance with generally accepted accounting principles (“GAAP”) .. H owever, management believes that certain non - GAAP performance measures utilized for internal analysis provides analysts, investors, and others the same information t
Slide 17: Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited)
Reconciliations of GAAP to Non - GAAP Financial Measures (Unaudited) Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended Millions ($000,000), except per share data 12/31/2021 12/31/2020 12/31/2021 12/31/2020 Operating Income Amounts on a GAAP basis $ 86.9 $ 30.3 $ 281.0 $ 9
Slide 18: Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited)
Reconciliations of GAAP to Non - GAAP Financial Measures (Unaudited) 18 1) Adjusted EBITDA and EBITDAR are primary components of the financial covenants contained in ArcBest Corporation's Amended and Res tated Credit Agreement. Management believes Adjusted EBITDA and EBITDAR to be relevant and usefu
Slide 19: Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited)
Reconciliations of GAAP to Non - GAAP Financial Measures (Unaudited) 19 Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended Millions ($000,000) 12/31/2021 12/31/2020 12/31/2021 12/31/2020 ASSET - BASED SEGMENT Operating Income Amounts on a GAAP basis $ 83.1 87.8% $ 27.9 95.