ARCB
Investor Presentation
3Q'24
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 1995, including, among others, statements regarding (i) our expectations about our intrinsic value or our prospects for growth and value creation and (ii) our financial outlook, position, strategies, goals, and expectations. Terms such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "foresee," "intend," "may," "plan," "predict," "project," "scheduled," "should," "would," and similar expressions and the negatives of such terms are intended to identify forward-looking statements. These statements are based on management's beliefs, assumptions, and expectations based on currently available information, are not guarantees of future performance, and involve certain risks and uncertainties (some of which are beyond our control). Although we believe that the expectations reflected in these forward-looking statements are reasonable as and when made, we cannot provide assurance that our expectations will prove to be correct. Actual outcomes and results could materially differ from what is expressed, implied, or forecasted in these statements due to a number of factors, including, but not limited to: the effects of a widespread outbreak of an illness or disease or any other public health crisis, as well as regulatory measures implemented in response to such events; external events which may adversely affect us or the third parties who provide services for us, for which our business continuity plans may not adequately prepare us, including, but not limited to, acts of war or terrorism, or military conflicts; data privacy breaches, cybersecurity incidents, and/or failures of our information systems, including disruptions or failures of services essential to our operations or upon which our information technology platforms rely; interruption or failure of third-party software or information technology systems or licenses; untimely or ineffective development and implementation of, or failure to realize the potential benefits associated with, new or enhanced technology or processes, including our customer pilot offering of Vaux; the loss or reduction of business from large customers or an overall reduction in our customer base; the timing and performance of growth initiatives and the ability to manage our cost structure; the cost, integration, and performance of any recent or future acquisitions and the inability to realize the anticipated benefits of the acquisition within the expected time period or at all; unsolicited takeover proposals, proxy contests, and other proposals/actions by activist investors; maintaining our corporate reputation and intellectual property rights; nationwide or global disruption in the supply chain resulting in increased volatility in freight volumes; competitive initiatives and pricing pressures; increased prices for and decreased availability of equipment, including new revenue equipment, decreases in value of used revenue equipment, and higher costs of equipment-related operating expenses such as maintenance, fuel, and related taxes; availability of fuel, the effect of volatility in fuel prices and the associated changes in fuel surcharges on securing increases in base freight rates, and the inability to collect fuel surcharges; relationships with employees, including unions, and our ability to attract, retain, and upskill employees; unfavorable terms of, or the inability to reach agreement on, future collective bargaining agreements or a workforce stoppage by our employees covered under ABF Freight's collective bargaining agreement; union employee wages and benefits, including changes in required contributions to multiemployer plans; availability and cost of reliable third-party services; our ability to secure independent owner-operators and/or operational or regulatory issues related to our use of their services; litigation or claims asserted against us; governmental regulations; environmental laws and regulations, including emissions-control regulations; default on covenants of financing arrangements and the availability and terms of future financing arrangements; our ability to generate sufficient cash from operations to support significant ongoing capital expenditure requirements and other business initiatives; self-insurance claims, insurance premium costs, and loss of our ability to self-insure; potential impairment of long-lived assets and goodwill and intangible assets; general economic conditions and related shifts in market demand that impact the performance and needs of industries we serve and/or limit our customers' access to adequate financial resources; increasing costs due to inflation and higher interest rates; seasonal fluctuations, adverse weather conditions, natural disasters, and climate change; and other financial, operational, and legal risks and uncertainties detailed from time to time in ArcBest Corporation's public filings with the Securities and Exchange Commission ("SEC").
For additional information regarding known material factors that could cause our actual results to differ from those expressed in these forward-looking statements, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward- looking statements after the date they are made, whether as a result of new information, future events, or otherwise.
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P R O F I L E O F A N I N D U S T R Y L E A D E R
100+
#1
>99%
~240
~29K
TOP 15
105K+
Years of
Safety award
Coverage of
Asset-Based
Owned
U.S.
Approved
transportation
winner in the
United States
North American
revenue
Truckload
contract
and logistics
industry
service centers
equipment
Broker
carriers
experience
3
Broad
Suite of Logistics Solutions and Services
Truckload
Expedite &
Time Critical
Final
Mile
Premium
Less-than-
Logistics
Truckload
International
Supply Chain
Air & Ocean
Optimization
Retail
Trade Show
Logistics
Shipping
Managed
Transportation
Product
Launch
Warehousing
4
AN INTEGRATED LOGISTICS COMPANY
Ongoing investment
in technology and
of revenue from
equipment
37% logistics in 2023
Realignment
versus 7% in 2009
and enhanced
market
approach under
the ArcBest
Five key logistics
brand in 2017
acquisitions
5 since 2012
Opportunistic addition of transactional LTL-rated shipments and innovative asset-based space-based pricing
Creative problem solvers with
a strong focus on best-in-class
customer experience
5
Strategy in Action
Our strategy is delivering solid results
Revenues ($B)
(Unaudited)(1)
+47%
$5.0
$4.4 $4.3
Operating Income ($M)
(Non-GAAP, Unaudited)(1)(2)
+58%
$468
Earnings Per Share
(Non-GAAP, Unaudited)(1)(2)
+86%
$13.52
$3.8
$2.9 $2.8 $2.8
$314
$258 $243
$154
$112 $123
$8.40
$4.05
$2.96 $3.28
$7.88 $7.53
2018 2019 2020 2021 2022 2023 3Q'24
TTM
2018 2019 2020 2021 2022 2023 3Q'24
TTM
2018 2019 2020 2021 2022 2023 3Q'24
TTM
1)
On February 28, 2023, the Company sold FleetNet America, Inc. ("FleetNet"), a wholly owned subsidiary of the Company. Historical results of FleetNet have been excluded from results for all periods presented.
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2)
See Reconciliations of GAAP to non-GAAP Financial Measures in the Additional Information section of this presentation.
Strategy in Action
Improvement
in Asset-Based
Operating
Ratio(1)
(Non-GAAP)
97.9%
96.9%
93.3%
94.5%
94.2%
90.4%
90.1%
88.8%
86.4%
2016
2017
2018
2019
2020
2021
2022
2023
3Q'24 TTM
FREIGHT RECESSION
COVID-19 IMPACTS
FREIGHT RECESSION
780 bps
IMPROVEMENT
Compared to 2016
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At the Center of our Company:
A VALUES-DRIVEN CULTURE
Creativity
Integrity
Collaboration
We create
We do the
We work
solutions
right thing
together
Growth
Excellence
Wellness
We grow our
We exceed
We embrace
people and our
expectations
total health
business
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E X C E L L E N C E I N A C T I O N
The Only
10x Winner
ATA Excellence
in Security
9
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 :
Exceeded Industry
#1
Claims
#1
Website
Process
Ease of Use
Benchmark for 19 Years
Ranked #1 & #2 on 50% of all attributes
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Disclaimer
ArcBest Corporation published this content on November 05, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 06, 2024 at 00:08:19.768.