Slide 1: Earnings Presentation 3Q'24
Earnings Presentation 3Q’24
Slide 2: Forward Looking Statements
Forward Looking Statements The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: Certain statements and information in this presentation may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of
Slide 3: Three-Point Strategy Continues to Deliver Shareholder Value & Drive Business Growth
Three-Point Strategy Continues to Deliver Shareholder Value & Drive Business Growth 1 2 3 Accelerate Growth Increase Efficiency Drive Innovation Secure new customers to Leverage technology Develop and implement maximize profitability disruptive and game changing ENHANCED Optimize ABF network innovat
Slide 4: Continually Raising the Bar on Excellence
C O N T I N U A L LY R A I S I N G T H E B A R O N E X C E L L E N C E • Culture of continuous improvement Process and compliance Surpassed annual goal >1.5x in 3Q • 40-years of using the Quality Process training exceeding YTD thru 3Q to drive efficiencies expectations on Actual Net Savings net reve
Slide 5: Leadership Changes
LEADERSHIP CHANGES Dennis Anderson named Chief Strategy and Innovation Officer 20+ year tenure with ArcBest Tech savvy and forward-thinking leader – with deep focus on customers and employees Change further aligns innovation agenda with strategic priorities 5
Slide 6: 19x Exceeded Industry Benchmark for 19 Years
2 0 2 4 M A S T I O R E S U LT S 19x M A S T I O AT T R I B U T E R A N K I N G S : Claims Website Exceeded Industry #1 #1 Process Ease of Use Benchmark for 19 Years Ranked #1 & #2 on 50% of all attributes 6
Slide 7: Quarter in Review
QUARTER IN REVIEW C U S T O M E R - L E D S T R AT E G Y: 80% of revenue from customers Double-Digit Growth with 10+ year relationship I N M A N A G E D T R A N S P O R T AT I O N Large Pipeline Best On-Time Performance in Opportunity 5x Larger Deals Five Years Improved Profitability Increasing Ship
Slide 8: Adding Capacity: Strategic Facility and Network Enhancements
S T R AT E G I C FA C I L I T Y A N D N E T W O R K E N H A N C E M E N T S Adding ✓ Enables Growth Capacity: ✓ Improves Service ✓ Increases Efficiency >50% 106 NEW DOORS Added in 3Q24 of Union Employees Work Strategically adding capacity: ~800 in a New or Remodeled New Service Center door expansion
Slide 9: Investments in Fleet & Technology
INVESTMENTS IN FLEET & TECHNOLOGY Dock Management Software Modern Fleet • Employee Level Productivity • Lowers Total Cost of Ownership • Consistent Processes & Service • Supports Long-Term Sustainability Labor Planning Tools Right People. Right Place. Right Time. Truckload Carrier Portal 13% Adoptio
Slide 10: Transforming Operations Through ABF Optimization
T R A N S F O R M I N G O P E R AT I O N S T H R O U G H A B F O P T I M I Z AT I O N ~70 Projects in City Route Optimization Phase 1 Savings Optimization Portfolio • 30% operationalized $13M+ • 30% in pilot to expand stages Per Year City Route Optimization Phase 1 is Complete and Saving $13M+ Annua
Slide 11: Key Metrics: ArcBest Consolidated
(1) Q3 2024 Key $1.06B $54.8M ArcBest Non-GAAP Metrics Consolidated Revenue Operating Income (2) ARCBEST -6% -27% C O N S O L I D AT E D (From Continuing Operations) 1) All comparisons are on a year-over-year basis. Non-GAAP Non-GAAP 2) See non-GAAP reconciliation in the Additional Information secti
Slide 12: Key Metrics: Asset-Based
(1) $64.0M Q3 2024 Non-GAAP Operating Income(2) $710M -23% Key Revenue 91.0% Metrics -6% per day Non-GAAP Operating Ratio(2) 220 bps deterioration A S S E T- B A S E D Daily Total Daily Total Total Billed Weight/ Tonnage Shipments Rev/CWT Shipment 1) All comparisons are on a year-over-year basis. 2)
Slide 13: 3Q23 vs 3Q24 Operating Income Bridge
Q3 2024 3Q23 vs 3Q24 Operating Income Bridge A S S E T- B A S E D (1) Operating Income adjusted for certain unusual items. See Reconciliations of GAAP to non-GAAP Financial Measures in the Additional Information section of this presentation. 3Q23 3Q24 3Q24 3Q24 3Q24 3Q24 Operating Lower Revenue High
Slide 14: 2Q24 vs 3Q24 Operating Income Bridge
Q3 2024 2Q24 vs 3Q24 Operating Income Bridge $72.8M A S S E T- B A S E D $64.0M (1) Operating Income adjusted for certain unusual items. See Reconciliations of GAAP to non-GAAP Financial Measures in the Additional Information section of this presentation. 2Q24 3Q24 3Q24 3Q24 3Q24 3Q24 Operating Lowe
Slide 15: Strategy in Action: 780 bps Operating Ratio Improvement
Strategy in Action Improvement 780 bps IMPROVEMENT in Asset-Based Compared to 2016 Operating 97.9% Ratio (1) 96.9% (Non-GAAP) 94.5% 94.2% 93.3% 90.4% 90.1% 88.8% (1) Operating Ratio adjusted for certain unusual items. See Reconciliations of GAAP to non-GAAP Financial Measures in the Additional Infor
Slide 16: October Preliminary Key Metrics: Asset-Based
OC TOB ER 2 0 2 4 PR ELIMIN A RY (1) October 2024 Daily Billed Daily Total Total Billed Revenue Shipments Rev/Shipment Key -12% -3% -9% Metrics Daily Total Tonnage Total Billed Rev/CWT Total Weight/Shipment A S S E T- B A S E D -9% -3% -6% 1) All comparisons are on a year-over-year basis. 16
Slide 17: Key Metrics: Asset-Light
Q3 2024 (1) ($3.9M) Non-GAAP Operating Loss (2) Key $385M Flat Revenue Metrics ($2.1M) -10% per day A S S E T- L I G H T Adjusted EBITDA(2) -3% 1) All comparisons are on a year-over-year basis. 2) See non-GAAP reconciliation in the Additional Information section of this presentation. Revenue/ Daily
Slide 18: October Preliminary Key Metrics: Asset-Light
OC TOB ER 2 0 2 4 PR ELIMIN A RY (1) October 2024 Revenue/Day Daily Total Shipments Key -13% -3% Metrics Revenue/Shipment Purchased Transportation as % of Revenue A S S E T- L I G H T -10% 86% 1) All comparisons are on a year-over-year basis. 18
Slide 19: 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 >3x >70% 5% Revenue & Profit Revenue & Profit per account Asset-Light + Higher Customer Retention is over 3X higher in cross-sold accounts Asset-Based Over 70% of our Retention rates are 5 3x 3x customers who use perce
Slide 20: Balanced Investment Approach
BALANCED INVESTMENT APPROACH Strong business performance enables ArcBest to invest organically in the business and provide returns to shareholders while maintaining a solid balance sheet and investment-grade credit metrics Solid Financial Position Share Repurchases & Dividends • Net cash position •
Slide 21: The Only 10x Winner
EXCELLENCE IN ACTION The Only 10x Winner ATA Excellence in Security 21
Slide 22: 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 23: Reconciliations of GAAP to Non-GAAP Financial Measures
ARCBEST CORPORATION – CONSOLIDATED Three Months Ended Reconciliations of Millions ($000,000), except per share data 9/30/2024 9/30/2023 GAAP to Non-GAAP Operating Income from Continuing Operations Amounts on a GAAP basis $ 135.0 $ 45.1 Financial Measures Innovative technology costs, pre-tax (1) 8.5
Slide 24: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of CONSOLIDATED ADJUSTED EBITDA (1) Twelve Months Ended 9/30/2024 GAAP to Non-GAAP ($ millions) Financial Measures Net Income from Continuing Operations $ 193.1 (Unaudited) Interest and other related financing costs 8.9 Income tax provision 55.9 Depreciation and amortization (2) 147.
Slide 25: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of GAAP to Non-GAAP Three Months Ended Millions ($000,000) 9/30/2024 9/30/2023 Financial Measures ASSET-BASED (Unaudited) Operating Income 1) Represents costs associated with the freight handling pilot test program at ABF Freight, for which the decision was made to pause the pilot du