Arcbest Corporation · NASDAQ:ARCB
Arcbest — Q3 2023 Earnings Presentation
16 slides from Arcbest's earnings presentation, Oct 27, 2023
Slide 1: Earnings Presentation 3Q'23
Earnings Presentation 3Q’23
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: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS Non-GAAP (1) Total Revenues Operating Income • Weak demand persists overall from continuing operations from continuing operations • LTL market positively impacted by Yellow’s bankruptcy and rapid reduction in LTL capacity $1.1B $74.7M • ArcBest positively impacted by this di
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 33% of our accounts were >60% of our asset- Flexible customers are cross-sold (FY 2022) compared light customers with integrate
Slide 5: Solid Performance Enables Investment for Growth
SOLID PERFORMANCE ENABLES INVESTMENT FOR GROWTH AI Fuels Technology Efficiency & Innovation INVESTMENT IN: City Route Optimization is Launched innovative delivering significant operating Vaux Freight Movement income benefits and improving System to customers People sustainability Solutions Truckload
Slide 6: Key Metrics: ArcBest Consolidated
(1) Q3 2023 Key $1.1B $74.7M Revenue From Non-GAAP Metrics Continuing Operations Operating Income From Continuing Operations (2) ARCBEST -9% -43% C O N S O L I D AT E D per day 1) Third quarter 2023 comparisons are to third quarter 2022. 2) See non-GAAP reconciliation in the Additional Information s
Slide 7: Key Metrics: Asset-Based
(1) $82.8M Q3 2023 Non-GAAP Operating Income(2) Key $741M -29% Revenue Metrics 88.8% -4% Non-GAAP Operating Ratio(2) A S S E T- B A S E D per day 350 bps deterioration 400 bps improvement from 2Q’23 1) Third quarter 2023 comparisons are to third quarter 2022. 2) See non-GAAP reconciliation in the Ad
Slide 8: Key Metrics: Asset-Based October 2023 Preliminary
OCTOBER 2023 Total Billed OCTOBER 2023 P R E L I M I N ARY Y O Y (1) Rev/CWT + 9% Daily Billed Key Revenue Metrics Total Billed + 5% A S S E T- B A S E D Rev/Shipment + 1% 1) October 2023 comparisons are to October 2022. Daily Daily Total Tonnage Shipments Weight/Shipment - 4% + 4% - 8% 8
Slide 9: Key Metrics: Asset-Light
Q3 2023 (1) $3.9M Non-GAAP Operating Loss(3) Key $419M Revenue Metrics A S S E T- L I G H T (2) -17% -$2.0M per day Adjusted EBITDA(3) 1) Third quarter 2023 comparisons are to third quarter 2022. 2) Asset-Light represents the reportable segment previously named ArcBest. Asset-Light financial results
Slide 10: 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 • Increased share
Slide 11: 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 Over 75% of >75% higher on cross- revenue came from >4x digitally connected sold accounts customers Profit per
Slide 12: Three-Point Strategy Continues to Deliver Shareholder Value
Three-Point Strategy Continues to Deliver Shareholder Value & Drive Business Growth 1 2 3 Accelerate Growth Increase Efficiency Drive Innovation Optimize ABF network Develop and implement Secure new customers disruptive and game changing ENHANCED Drive scale and productivity to innovations Expand wi
Slide 13: 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 14: Reconciliations of GAAP to Non-GAAP Financial Measures
ARCBEST CORPORATION – CONSOLIDATED Three Months Ended Reconciliations of Millions ($000,000), except per share data 9/30/2023 9/30/2022 GAAP to Non-GAAP Operating Income from Continuing Operations Amounts on a GAAP basis $ 45.1 $ 115.3 Financial Measures Innovative technology costs, pre-tax (1) 14.1
Slide 15: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of CONSOLIDATED ADJUSTED EBITDA (1) Twelve Months Ended September 30, 2023 GAAP to Non-GAAP ($ millions) Financial Measures Net Income from Continuing Operations $ 129.9 (Unaudited) Interest and other related financing costs 8.9 Income tax provision 41.0 1) Adjusted EBITDA is a prima
Slide 16: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of GAAP to Non-GAAP Three Months Ended September 30 Three Months Ended June 30 Financial Measures Millions ($000,000) 2023 2022 2023 (Unaudited) ASSET-BASED 1) Represents costs associated with the Vaux freight handling pilot test program at ABF Freight. The decision was made to pause