Slide 1: Earnings Presentation 2Q'22
Earnings Presentation 2Q’22
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, including, among others, statements regarding (i) our expectations about our intrinsic value or o
Slide 3: Record Second Quarter 2022 Results – Proven Three-Point Strategy
ArcBest Announces Record Second Quarter 2022 Results – Accelerating Supporting Proven Three-Point Strategy growth through a 3 customer focus 2 and investment Optimize Cost 1 Structure in people, More Balanced Business Mix Advance adoption of solutions and Expand Revenue innovative technologies Oppor
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 60% of our asset- Broad suite of logistics solutions >90% of our Top 50 32% of our accounts were Flexible light customers also with integrated and seamless customers are cross-sold
Slide 5: Strong Performance Enables Investment for Growth
STRONG PERFORMANCE ENABLES INVESTMENT FOR GROWTH Double-Digit Facility Revenue Growth Upgrades & INVESTMENT IN: Expansions YOY daily revenue growth in Asset-Based (23%) and Asset-Light (91%) segments Investments to enable growth and improve People employee experience Solutions Truckload Technology S
Slide 6: ...and positioning us for the future
STRONG PERFORMANCE ENABLES INVESTMENT FOR GROWTH Customers continue to choose ArcBest as their ...Transforming Asset-Based/Asset-Light preferred partner for solving complex logistics Mix Over Time our business to challenges... better align with 18% our customer 46% Revenue CAGR (2012-2021) needs 82%
Slide 7: Key Metrics: ArcBest Consolidated
Q2 2022 Key $1.4B $150.5M Revenue Non-GAAP Metrics Operating Income (2) ARCBEST 47% per day 96% YOY (1) C O N S O L I D AT E D YOY (1) 1) Second quarter 2022 comparisons are to second quarter 2021. 2) See non-GAAP reconciliation in the Additional Information section of this presentation. $4.30/dilut
Slide 8: Key Metrics: Asset-Based
$124.6M Q2 2022 Non-GAAP Operating Income(2) Key $802.6M 74% YOY(1) Revenue Metrics 23% per day 84.5% Non-GAAP Operating Ratio(2) A S S E T- B A S E D YOY(1) 450 bps YOY improvement (1) 1) Second quarter 2022 comparisons are to second quarter 2021. 2) See non-GAAP reconciliation in the Additional In
Slide 9: Key Metrics: Asset-Based July 2022 Preliminary
J U LY 2 0 2 2 Total Billed JULY 2022 P R E L I M I N ARY (1) Rev/CWT 11% YOY Daily Billed Key Revenue Metrics Total Billed 18% YOY Rev/Shipment A S S E T- B A S E D 18% YOY 1) July 2022 comparisons are to July 2021. Daily Daily Total Tonnage Shipments Weight/Shipment 6% YOY Flat 6% YOY 9
Slide 10: Key Metrics: Asset-Light
$31.9M Q2 2022 Non-GAAP Operating Income(3) Key $631.8M 210% YOY (2) Revenue Metrics $34.6M (1) 91% per day Adjusted EBITDA(3) A S S E T- L I G H T YOY (2) 185% YOY (2) 1) The ArcBest and FleetNet reportable segments, combined, represent Asset-Light operations. 2) Second quarter 2022 comparisons are
Slide 11: Balanced Capital Allocation
B A L A N C E D C A P I TA L A L L O C AT I O N INVESTMENTS IN GROWTH AND RETURN OF CAPITAL OPERATING INITIATIVES TO SHAREHOLDERS • Capital investments consistent with organic • Share Repurchase Program: growth strategy o Repurchased an additional $15M during 2nd Quarter 2022 o Increased repurchase
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% >5x Retention rates are 9 percentage points higher on cross-sold accounts Revenue per account is over 5X higher on >75% cross-sold accounts Over 75% of revenue came from digitally connected customers >4x Profit per
Slide 13: Three-Point Strategy Continues to Deliver Shareholder Value
Three-Point Strategy Continues to Deliver Shareholder Value & Drive Business Growth 3 2 Optimize Cost 1 More Balanced Structure Business Mix Advance adoption of Expand Revenue innovative technologies ENHANCED Accelerate SHAREHOLDER Opportunities Asset-Light growth VALUE Deepen customer relationships
Slide 14: Q&A
Q&A 14
Slide 15: 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 16: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited) ARCBEST CORPORATION - CONSOLIDATED Three Months Ended June 30 Millions ($000,000), except per share data 2022 2021 Operating Income Amounts on a GAAP basis $ 137.3 $ 74.3 Innovative technology costs, pre-tax (1) 10.3 8.5 Purchase acc
Slide 17: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited) Three Months Ended (1) ASSET-LIGHT ADJUSTED EBITDA June 30 2022 2021 Total Asset-Light ($ millions) Operating Income $ 29.1 $ 16.3 Depreciation and amortization (2) 5.9 2.8 Gain on sale of subsidiary (3) (0.4) (6.9) Adjusted EBITDA (
Slide 18: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited) Three Months Ended June 30 Millions ($000,000) 2022 2021 ASSET-BASED SEGMENT Operating Income Amounts on a GAAP basis $ 116.7 85.5% $ 63.9 90.2% Innovative technology costs, pre-tax (1) 8.0 (1.0) 7.5 (1.2) Non-GAAP amounts (2) $ 124.