Slide 1: Earnings Presentation 3Q'22
Earnings Presentation 3Q’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: Solid Third Quarter 2022 Results – Proven Three-Point Strategy
ArcBest Announces Solid Third 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 Opportu
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 32% of our accounts were >60% of our asset- Flexible customers are cross-sold (TTM thru August) light customers with integrated
Slide 5: Strong Performance Enables Investment for Growth
STRONG PERFORMANCE ENABLES INVESTMENT FOR GROWTH Double-Digit Facility Revenue Growth Upgrades & INVESTMENT IN: YOY daily revenue growth in Expansions Asset-Based 16% and Asset-Light 63% segments Investments to enable growth and improve People employee experience Solutions Truckload Technology Solut
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 our business to Mix Over Time challenges... better align with 18% 45% Revenue CAGR (2012-2021) our customer needs 8
Slide 7: Key Metrics: ArcBest Consolidated
Q3 2022 Key $1.4B $131.1M Revenue Non-GAAP Metrics Operating Income (2) ARCBEST 33% per 33% YOY (1) C O N S O L I D AT E D day YOY (1) 1) Third quarter 2022 comparisons are to third quarter 2021. 2) See non-GAAP reconciliation in the Additional Information section of this presentation. 3) Trailing t
Slide 8: Key Metrics: Asset-Based
$116.6M Q3 2022 Non-GAAP Operating Income(1) Key $791.5M 29% YOY(1) Revenue Metrics 16% per day 85.3% Non-GAAP Operating Ratio(2) A S S E T- B A S E D YOY(1) 140 bps YOY improvement (1) 1) Third quarter 2022 comparisons are to third quarter 2021. 2) See non-GAAP reconciliation in the Additional Info
Slide 9: Key Metrics: Asset-Based October 2022 Preliminary
OCTOBER 2022 Total Billed OCTOBER 2022 P R E L I M I N ARY Rev/CWT 10% YOY(1) Daily Billed Key Revenue Metrics Total Billed 6% YOY(1) Rev/Shipment A S S E T- B A S E D 4% YOY(1) 1) October 2022 comparisons are to October 2021. Daily Daily Total Tonnage Shipments Weight/Shipment 4% YOY(1) 1% YOY(1) 5
Slide 10: Key Metrics: Asset-Light
$19.9M Q3 2022 Non-GAAP Operating Income(3) Key $604.5M 61% YOY (2) Revenue Metrics $21.8M A S S E T- L I G H T (1) 63% per day Adjusted EBITDA(3) YOY (2) 53% YOY (2) 1) The ArcBest and FleetNet reportable segments, combined, represent Asset-Light operations. 2) Third quarter 2022 comparisons are to
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 • Share Repurchas
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 higher on Over 75% of revenue came cross-sold accounts >75% >4x from digitally connected customers Profit per
Slide 13: Three-Point Strategy Continues to Deliver Shareholder Value & Drive Business Growth
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: 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: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited) Three Months Ended ARCBEST CORPORATION - CONSOLIDATED September 30 Millions ($000,000), except per share data 2022 2021 Operating Income Amounts on GAAP basis $ 115.8 $ 87.6 Innovative technology costs, pre-tax (1) 10.1 8.3 Purchase
Slide 16: 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 September 30 2022 2021 Total Asset-Light ($ millions) Operating Income $ 16.3 $ 11.5 Depreciation and amortization (2) 5.5 2.8 Adjusted EBITDA (3) $ 21.8 $ 14.2 Twelve Months Ended (
Slide 17: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited) Three Months Ended September 30 Millions ($000,000) 2022 2021 ASSET-BASED SEGMENT Operating Income Amounts on GAAP basis $ 109.3 86.2% $ 83.6 87.7% Innovative technology costs, pre-tax (1) 6.1 (0.8) 6.9 (1.0) Nonunion vacation policy