Arcbest Corporation · NASDAQ:ARCB
Arcbest — Q4 2022 Earnings Presentation
17 slides from Arcbest's earnings presentation, Feb 3, 2023
Slide 1: Earnings Presentation 4Q'22
Earnings Presentation 4Q’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: ArcBest Announces Solid Fourth Quarter 2022 Results – Supporting Proven Three-Point Strategy
ArcBest Announces Solid Fourth 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 Opport
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: Strong Performance Enables Investment for Growth
STRONG PERFORMANCE ENABLES INVESTMENT FOR GROWTH Double-Digit Facility Revenue Growth Upgrades & INVESTMENT IN: 2022 YOY daily revenue growth Expansions in Asset-Based (17%) and Asset-Light (60%) segments Investments to enable growth and improve People employee experience Solutions Truckload Technol
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 (2012-2022) our customer needs 8
Slide 7: Key Metrics: ArcBest Consolidated
Q4 2022 (1) FULL YEAR 2022 (1) Q4 & FY 2022 $1.2B ArcBest Consolidated Revenue $5.3B ArcBest Consolidated Revenue Key 5% 34% Metrics ARCBEST $82.7M Non-GAAP Operating Income(2) $472.9M Non-GAAP Operating Income(2) C O N S O L I D AT E D -19% 49% 1) Fourth quarter 2022 comparisons are to fourth quart
Slide 8: Key Metrics: Asset-Based
Q4 2022 (1) FULL YEAR 2022 (1) Q4 & FY 2022 $711M Revenue $3.0BRevenue Key 5% per day 17% per day Metrics $81.4M 88.6% $409.6M 86.4% Non-GAAP Non-GAAP Non-GAAP Non-GAAP A S S E T- B A S E D Operating Income(2) Operating Ratio(2) Operating Income(2) Operating Ratio(2) -9% 170 bps 42% 240 bps deterior
Slide 9: Key Metrics: Asset-Based January 2023 Preliminary
JANU ARY 2023 Total Billed JANUARY 2023 P R E L I M I N ARY Y O Y (1) Rev/CWT Flat Daily Billed Key Revenue Metrics Total Billed 1% Rev/Shipment A S S E T- B A S E D -5% 1) January 2023 comparisons are to January 2022. Daily Daily Total Tonnage Shipments Weight/Shipment 1% 7% -5% 9
Slide 10: Key Metrics: Asset-Light
Q4 2022 (2) FULL YEAR 2022 (2) Q4 2022 $572M Asset-Light Revenue $2.5B Asset-Light Revenue Key 7% per day 60% per day Metrics $11.1M -32% $89.7M 82% (1) Non-GAAP Non-GAAP A S S E T- L I G H T Operating Income (3) Operating Income (3) 1) The ArcBest and FleetNet reportable segments, combined, represe
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 • Increased share
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 Over 75% of >75% higher on cross- revenue came from >4x digitally connected sold accounts 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
ARCBEST CORPORATION - CONSOLIDATED Three Months Ended Twelve Months Ended Reconciliations of Millions ($000,000), except per share data 12/31/2022 12/31/2021 12/31/2022 12/31/2021 GAAP to Non-GAAP Operating Income Amounts on a GAAP basis $ 51.2 $ 86.9 $ 399.3 $ 281.0 Financial Measures Innovative te
Slide 16: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of ASSET-LIGHT ADJUSTED EBITDA (1) Three Months Ended Twelve Months Ended December 31 December 31 GAAP to Non-GAAP 2022 2021 2022 2021 Financial Measures Total Asset-Light ($ millions) ($ millions) (Unaudited) 1) Adjusted EBITDA is a primary component of the financial covenants conta
Slide 17: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of Three Months Ended Twelve Months Ended GAAP to Non-GAAP Millions ($000,000) 12/31/2022 12/31/2021 12/31/2022 12/31/2021 ASSET-BASED SEGMENT Financial Measures (Unaudited) Operating Income Amounts on a GAAP basis $ 75.1 89.4% $ 83.1 87.8% $ 381.1 87.3% $ 260.7 89.9% 1) Represents c