ArcBest Announces Fourth Quarter and Full Year 2023 Results
Strong execution helping customers navigate market disruption combined with continued cost discipline
Strategic capital allocation with returns to shareholders and investments in growth
-
Delivered fourth quarter 2023 net income of
$48.8 million , or$2.01 per diluted share, with non-GAAP fourth quarter 2023 net income of$60.0 million , or$2.47 per diluted share. -
Achieved full year 2023 net income from continuing operations of
$142.2 million , or$5.77 per diluted share. On a non-GAAP basis, full year 2023 net income was$194.1 million , or$7.88 per diluted share. -
Returned
$103 million to shareholders in 2023 through share repurchases and quarterly cash dividends. -
ArcBest ’s board has increased the company’s share repurchase program authorization to$125 million .
Excluding certain items in both periods as identified in the attached reconciliation tables, fourth quarter 2023 non‑GAAP operating income from continuing operations was
ArcBest’s full year 2023 revenue from continuing operations totaled
“2023 was a milestone year for
Fourth Quarter Results of Operations Comparisons
Asset-Based
Fourth Quarter 20 23 Versus Fourth Quarter 20 22
-
Revenue of
$710.0 million compared to$711.4 million , a per-day decrease of 1.0 percent. - Total tonnage per day decrease of 7.2 percent, including a decrease of 6.5 percent in LTL-rated weight per shipment.
- Total shipments per day decrease of 0.8 percent.
- Total billed revenue per hundredweight increased 6.8 percent. Revenue per hundredweight on LTL-rated business, excluding fuel surcharge, increased by a percentage in the double digits.
-
Operating income of
$87.5 million and an operating ratio of 87.7 percent. This compares to prior-period operating income of$75.1 million and an operating ratio of 89.4 percent, and to prior-period non-GAAP operating income of$81.4 million and a non-GAAP operating ratio of 88.6 percent.
Despite a softer freight environment leading to reduced customer demand, fourth quarter Asset-Based daily revenue was only slightly below the prior-year period. This resilience is largely attributable to ArcBest’s effective strategies in helping customers navigate market disruptions, coupled with a disciplined pricing approach. Total fourth quarter daily shipment and tonnage levels were below the prior-year period. A shift in freight mix toward core, LTL-rated shipments positively impacted Asset-Based freight-handling metrics and operating results. Cost control actions, initiated in the third quarter of 2023 also positively contributed to the fourth quarter Asset-Based operating ratio. On a non-GAAP basis, Asset-Based operating income was the second best for a fourth quarter in ArcBest’s history.
Fourth quarter Asset-Based billed revenue per hundredweight increased approximately seven percent over the prior year driven by growth in core, LTL-rated shipments and the resulting improvement in freight mix. On a sequential basis compared to the third quarter, total billed revenue per hundredweight increased by nearly four percent. Overall, LTL industry pricing remains rational, and the improving trends associated with recent market changes have continued.
Asset-Light ‡
Fourth Quarter 2023 Versus Fourth Quarter 2022
-
Revenue of
$413.4 million compared to$479.1 million , a per-day decrease of 14.4 percent. -
Operating loss of
$7.7 million compared to operating loss of$11.3 million . On a non‑GAAP basis, operating loss of$1.3 million compared to operating income of$9.4 million . -
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) of
$0.7 million compared to$11.2 million , as detailed in the attached non-GAAP reconciliation tables.
Compared to the fourth quarter of 2022, Asset-Light results were impacted by lower revenue per shipment and reduced margins associated with changes in business mix and the soft rate environment. Total shipments grew by 12.4% per day, as the managed transportation solution helped customers navigate recent LTL market disruption. However, lower rates and margins for the truckload solution were the biggest drivers of reduced profitability.
Full Year Results of Operations Comparisons
Asset-Based
Full Year 20 23 Versus Full Year 20 22
-
Revenue of
$2.9 billion , compared to$3.0 billion , a per-day decrease of 4.5 percent. - Tonnage per day decrease of 2.4 percent.
- Shipments per day increase of 3.2 percent.
- Total billed revenue per hundredweight decrease of 2.2 percent, negatively impacted by lower fuel surcharges and freight mix changes throughout the year.
-
Operating income of
$253.2 million compared to$381.1 million . On a non-GAAP basis, operating income of$275.5 million compared to$409.6 million .
Asset-Light ‡
Full Year 20 23 Versus Full Year 20 22
-
Revenue of
$1.7 billion compared to$2.1 billion , a per-day decrease of 21.3 percent. -
Operating loss of
$12.3 million , compared to operating income of$52.7 million . On a non-GAAP basis, operating income of$5.3 million compared to$83.8 million . -
Adjusted EBITDA of
$12.9 million compared to$91.4 million .
Capital Expenditures
In 2023, total net capital expenditures, including equipment financed, were
Share Repurchase and Quarterly Dividend Programs
In addition, on
NOTE
‡ - Asset-Light represents the reportable segment previously named
Conference Call
About
The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995:
Certain statements and information in this press release concerning results for the three and twelve months ended
For additional information regarding known material factors that could cause our actual results to differ from those expressed in these forward-looking statements, please see our filings with the
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events, or otherwise.
Financial Data and Operating Statistics
The following tables show financial data and operating statistics on
|
|||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Year Ended |
|
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
||||||||
|
|
(Unaudited) |
|
||||||||||||||
|
|
($ thousands, except share and per share data) |
|
||||||||||||||
REVENUES |
|
$ |
1,089,535 |
|
|
$ |
1,163,495 |
|
|
$ |
4,427,443 |
|
|
$ |
5,029,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
OPERATING EXPENSES |
|
|
1,025,282 |
|
|
|
1,113,286 |
|
|
|
4,254,824 |
|
|
|
4,634,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
OPERATING INCOME |
|
|
64,253 |
|
|
|
50,209 |
|
|
|
172,619 |
|
|
|
394,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
OTHER INCOME (COSTS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and dividend income |
|
|
4,124 |
|
|
|
2,294 |
|
|
|
14,728 |
|
|
|
3,873 |
|
|
Interest and other related financing costs |
|
|
(2,326 |
) |
|
|
(2,168 |
) |
|
|
(9,094 |
) |
|
|
(7,726 |
) |
|
Other, net |
|
|
1,755 |
|
|
|
1,452 |
|
|
|
8,662 |
|
|
|
(2,370 |
) |
|
|
|
|
3,553 |
|
|
|
1,578 |
|
|
|
14,296 |
|
|
|
(6,223 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
67,806 |
|
|
|
51,787 |
|
|
|
186,915 |
|
|
|
388,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
INCOME TAX PROVISION |
|
|
19,016 |
|
|
|
15,302 |
|
|
|
44,751 |
|
|
|
93,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME FROM CONTINUING OPERATIONS |
|
|
48,790 |
|
|
|
36,485 |
|
|
|
142,164 |
|
|
|
294,648 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX(1) |
|
|
— |
|
|
|
852 |
|
|
|
53,269 |
|
|
|
3,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME |
|
$ |
48,790 |
|
|
$ |
37,337 |
|
|
$ |
195,433 |
|
|
$ |
298,209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
BASIC EARNINGS PER COMMON SHARE(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Continuing operations |
|
$ |
2.06 |
|
|
$ |
1.49 |
|
|
$ |
5.92 |
|
|
$ |
11.98 |
|
|
Discontinued operations(1) |
|
|
— |
|
|
|
0.03 |
|
|
|
2.22 |
|
|
|
0.14 |
|
|
|
|
$ |
2.06 |
|
|
$ |
1.53 |
|
|
$ |
8.14 |
|
|
$ |
12.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
DILUTED EARNINGS PER COMMON SHARE(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Continuing operations |
|
$ |
2.01 |
|
|
$ |
1.45 |
|
|
$ |
5.77 |
|
|
$ |
11.55 |
|
|
Discontinued operations(1) |
|
|
— |
|
|
|
0.03 |
|
|
|
2.16 |
|
|
|
0.14 |
|
|
|
|
$ |
2.01 |
|
|
$ |
1.48 |
|
|
$ |
7.93 |
|
|
$ |
11.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
AVERAGE COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
23,713,434 |
|
|
|
24,420,325 |
|
|
|
24,018,801 |
|
|
|
24,585,205 |
|
|
Diluted |
|
|
24,248,584 |
|
|
|
25,146,664 |
|
|
|
24,634,617 |
|
|
|
25,504,508 |
|
|
____________________ | ||
1) |
Represents the discontinued operations of FleetNet America® (“FleetNet”), which sold on |
|
2) |
Earnings per common share is calculated in total and may not equal the sum of earnings per common share from continuing operations and discontinued operations due to rounding. |
|
|||||||||
CONSOLIDATED BALANCE SHEETS |
|||||||||
|
|
|
|
|
|
||||
|
|
2023 |
|
2022 |
|
||||
|
|
(Unaudited) |
|
||||||
|
|
($ thousands, except share data) |
|
||||||
ASSETS |
|
|
|
|
|
|
|
||
CURRENT ASSETS |
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
262,226 |
|
|
$ |
158,264 |
|
|
Short-term investments |
|
|
67,842 |
|
|
|
167,662 |
|
|
Accounts receivable, less allowances (2023 - |
|
|
430,122 |
|
|
|
517,494 |
|
|
Other accounts receivable, less allowances (2023 - |
|
|
52,124 |
|
|
|
11,016 |
|
|
Prepaid expenses |
|
|
37,034 |
|
|
|
39,484 |
|
|
Prepaid and refundable income taxes |
|
|
24,319 |
|
|
|
19,239 |
|
|
Current assets of discontinued operations |
|
|
— |
|
|
|
64,736 |
|
|
Other |
|
|
11,116 |
|
|
|
11,888 |
|
|
TOTAL CURRENT ASSETS |
|
|
884,783 |
|
|
|
989,783 |
|
|
|
|
|
|
|
|
|
|
||
PROPERTY, PLANT AND EQUIPMENT |
|
|
|
|
|
|
|
||
Land and structures |
|
|
460,068 |
|
|
|
401,840 |
|
|
Revenue equipment |
|
|
1,126,055 |
|
|
|
1,038,832 |
|
|
Service, office, and other equipment |
|
|
319,466 |
|
|
|
298,234 |
|
|
Software |
|
|
173,354 |
|
|
|
167,164 |
|
|
Leasehold improvements |
|
|
24,429 |
|
|
|
23,466 |
|
|
|
|
|
2,103,372 |
|
|
|
1,929,536 |
|
|
Less allowances for depreciation and amortization |
|
|
1,188,548 |
|
|
|
1,129,366 |
|
|
PROPERTY, PLANT AND EQUIPMENT, NET |
|
|
914,824 |
|
|
|
800,170 |
|
|
|
|
|
|
|
|
|
|
||
|
|
|
304,753 |
|
|
|
304,753 |
|
|
INTANGIBLE ASSETS, NET |
|
|
101,150 |
|
|
|
113,733 |
|
|
OPERATING RIGHT-OF-USE ASSETS |
|
|
169,999 |
|
|
|
166,515 |
|
|
DEFERRED INCOME TAXES |
|
|
8,140 |
|
|
|
6,342 |
|
|
LONG-TERM ASSETS OF DISCONTINUED OPERATIONS |
|
|
— |
|
|
|
11,097 |
|
|
OTHER LONG-TERM ASSETS |
|
|
101,445 |
|
|
|
101,893 |
|
|
TOTAL ASSETS |
|
$ |
2,485,094 |
|
|
$ |
2,494,286 |
|
|
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
||
CURRENT LIABILITIES |
|
|
|
|
|
|
|
||
Accounts payable |
|
$ |
214,004 |
|
|
$ |
269,854 |
|
|
Income taxes payable |
|
|
10,410 |
|
|
|
16,017 |
|
|
Accrued expenses |
|
|
378,029 |
|
|
|
338,457 |
|
|
Current portion of long-term debt |
|
|
66,948 |
|
|
|
66,252 |
|
|
Current portion of operating lease liabilities |
|
|
32,172 |
|
|
|
26,225 |
|
|
Current liabilities of discontinued operations |
|
|
— |
|
|
|
51,665 |
|
|
TOTAL CURRENT LIABILITIES |
|
|
701,563 |
|
|
|
768,470 |
|
|
|
|
|
|
|
|
|
|
||
LONG-TERM DEBT, less current portion |
|
|
161,990 |
|
|
|
198,371 |
|
|
OPERATING LEASE LIABILITIES, less current portion |
|
|
176,621 |
|
|
|
147,828 |
|
|
POSTRETIREMENT LIABILITIES, less current portion |
|
|
13,319 |
|
|
|
12,196 |
|
|
LONG-TERM LIABILITIES OF DISCONTINUED OPERATIONS |
|
|
— |
|
|
|
781 |
|
|
CONTINGENT CONSIDERATION |
|
|
92,900 |
|
|
|
112,000 |
|
|
OTHER LONG-TERM LIABILITIES |
|
|
40,553 |
|
|
|
42,745 |
|
|
DEFERRED INCOME TAXES |
|
|
55,785 |
|
|
|
60,494 |
|
|
|
|
|
|
|
|
|
|
||
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
||
Common stock, |
|
|
300 |
|
|
|
298 |
|
|
Additional paid-in capital |
|
|
340,961 |
|
|
|
339,582 |
|
|
Retained earnings |
|
|
1,272,584 |
|
|
|
1,088,693 |
|
|
|
|
|
(375,806 |
) |
|
|
(284,275 |
) |
|
Accumulated other comprehensive income |
|
|
4,324 |
|
|
|
7,103 |
|
|
TOTAL STOCKHOLDERS’ EQUITY |
|
|
1,242,363 |
|
|
|
1,151,401 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
2,485,094 |
|
|
$ |
2,494,286 |
|
|
|
|||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||
|
|
|
|
|
|
|
|
||
|
|
Year Ended |
|
||||||
|
|
|
|
||||||
|
|
2023 |
|
2022 |
|
||||
|
|
(Unaudited) |
|
||||||
|
|
($ thousands) |
|
||||||
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
||
Net income |
|
$ |
195,433 |
|
|
$ |
298,209 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
132,900 |
|
|
|
127,119 |
|
|
Amortization of intangibles |
|
|
12,829 |
|
|
|
12,920 |
|
|
Share-based compensation expense |
|
|
11,438 |
|
|
|
12,775 |
|
|
Provision for losses on accounts receivable |
|
|
3,630 |
|
|
|
6,955 |
|
|
Change in deferred income taxes |
|
|
(5,566 |
) |
|
|
(6,250 |
) |
|
(Gain) loss on sale of property and equipment |
|
|
4,797 |
|
|
|
(11,650 |
) |
|
Gain on sale of subsidiary |
|
|
— |
|
|
|
(402 |
) |
|
Pre-tax gain on sale of discontinued operations |
|
|
(70,201 |
) |
|
|
— |
|
|
Lease impairment charges |
|
|
30,162 |
|
|
|
— |
|
|
Change in fair value of contingent consideration |
|
|
(19,100 |
) |
|
|
18,300 |
|
|
Change in fair value of equity investment |
|
|
(3,739 |
) |
|
|
— |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||
Receivables |
|
|
41,189 |
|
|
|
(10,349 |
) |
|
Prepaid expenses |
|
|
2,563 |
|
|
|
(410 |
) |
|
Other assets |
|
|
3,830 |
|
|
|
(2,941 |
) |
|
Income taxes |
|
|
(10,657 |
) |
|
|
(5,041 |
) |
|
Operating right-of-use assets and lease liabilities, net |
|
|
2,920 |
|
|
|
2,952 |
|
|
Accounts payable, accrued expenses, and other liabilities |
|
|
(10,261 |
) |
|
|
28,632 |
|
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
|
322,167 |
|
|
|
470,819 |
|
|
|
|
|
|
|
|
|
|
||
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
||
Purchases of property, plant and equipment, net of financings |
|
|
(219,021 |
) |
|
|
(148,223 |
) |
|
Proceeds from sale of property and equipment |
|
|
7,763 |
|
|
|
19,691 |
|
|
Proceeds from sale of discontinued operations |
|
|
100,949 |
|
|
|
— |
|
|
Business acquisition, net of cash acquired(1) |
|
|
— |
|
|
|
2,279 |
|
|
Proceeds from sale of subsidiary |
|
|
— |
|
|
|
475 |
|
|
Purchases of short-term investments |
|
|
(96,537 |
) |
|
|
(182,352 |
) |
|
Proceeds from sale of short-term investments |
|
|
198,120 |
|
|
|
64,329 |
|
|
Capitalization of internally developed software |
|
|
(12,977 |
) |
|
|
(17,282 |
) |
|
|
|
|
(21,703 |
) |
|
|
(261,083 |
) |
|
|
|
|
|
|
|
|
|
||
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
||
Borrowings under credit facilities |
|
|
— |
|
|
|
58,000 |
|
|
Proceeds from notes payable |
|
|
— |
|
|
|
14,206 |
|
|
Payments on long-term debt |
|
|
(69,180 |
) |
|
|
(115,540 |
) |
|
Net change in book overdrafts |
|
|
(14,101 |
) |
|
|
8,356 |
|
|
Deferred financing costs |
|
|
55 |
|
|
|
(952 |
) |
|
Payment of common stock dividends |
|
|
(11,542 |
) |
|
|
(10,830 |
) |
|
Purchases of treasury stock |
|
|
(91,531 |
) |
|
|
(65,002 |
) |
|
Payments for tax withheld on share-based compensation |
|
|
(10,311 |
) |
|
|
(16,222 |
) |
|
|
|
|
(196,610 |
) |
|
|
(127,984 |
) |
|
|
|
|
|
|
|
|
|
||
NET INCREASE IN CASH AND CASH EQUIVALENTS |
|
|
103,854 |
|
|
|
81,752 |
|
|
Cash and cash equivalents of continuing operations at beginning of period |
|
|
158,264 |
|
|
|
76,568 |
|
|
Cash and cash equivalents of discontinued operations at beginning of period |
|
|
108 |
|
|
|
52 |
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
$ |
262,226 |
|
|
$ |
158,372 |
|
|
|
|
|
|
|
|
|
|
||
NONCASH INVESTING ACTIVITIES |
|
|
|
|
|
|
|
||
Equipment financed |
|
$ |
33,495 |
|
|
$ |
82,425 |
|
|
Accruals for equipment received |
|
$ |
1,727 |
|
|
$ |
4,337 |
|
|
Lease liabilities arising from obtaining right-of-use assets |
|
$ |
62,425 |
|
|
$ |
87,294 |
|
|
____________________ | ||
1) |
Represents cash received from escrow for post-closing adjustments related to the acquisition of MoLo. |
|
|
||
Note: The statements of cash flows for the year ended |
|
|||||||||||||||||||||||||||
FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||||||
|
($ thousands, except percentages) |
||||||||||||||||||||||||||
REVENUES FROM CONTINUING OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Asset-Based |
$ |
709,986 |
|
|
|
|
$ |
711,436 |
|
|
|
|
$ |
2,871,004 |
|
|
|
|
$ |
3,010,900 |
|
|
|
||||
Asset-Light(1) |
|
413,425 |
|
|
|
|
|
479,098 |
|
|
|
|
|
1,680,645 |
|
|
|
|
|
2,139,272 |
|
|
|
||||
Other and eliminations |
|
(33,876 |
) |
|
|
|
|
(27,039 |
) |
|
|
|
|
(124,206 |
) |
|
|
|
|
(121,164 |
) |
|
|
||||
Total consolidated revenues from continuing operations |
$ |
1,089,535 |
|
|
|
|
$ |
1,163,495 |
|
|
|
|
$ |
4,427,443 |
|
|
|
|
$ |
5,029,008 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
OPERATING EXPENSES FROM CONTINUING OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Asset-Based |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Salaries, wages, and benefits |
$ |
342,031 |
|
|
48.2 |
% |
|
$ |
319,563 |
|
|
44.9 |
% |
|
$ |
1,379,756 |
|
|
48.1 |
% |
|
$ |
1,293,487 |
|
|
43.0 |
% |
Fuel, supplies, and expenses |
|
84,677 |
|
|
11.9 |
|
|
|
97,152 |
|
|
13.7 |
|
|
|
361,355 |
|
|
12.6 |
|
|
|
378,558 |
|
|
12.6 |
|
Operating taxes and licenses |
|
13,980 |
|
|
2.0 |
|
|
|
13,885 |
|
|
1.9 |
|
|
|
55,918 |
|
|
1.9 |
|
|
|
52,290 |
|
|
1.7 |
|
Insurance |
|
12,209 |
|
|
1.7 |
|
|
|
11,574 |
|
|
1.6 |
|
|
|
52,025 |
|
|
1.8 |
|
|
|
47,382 |
|
|
1.6 |
|
Communications and utilities |
|
4,702 |
|
|
0.6 |
|
|
|
4,820 |
|
|
0.7 |
|
|
|
19,288 |
|
|
0.7 |
|
|
|
18,949 |
|
|
0.6 |
|
Depreciation and amortization |
|
27,444 |
|
|
3.9 |
|
|
|
24,437 |
|
|
3.4 |
|
|
|
104,165 |
|
|
3.6 |
|
|
|
97,322 |
|
|
3.2 |
|
Rents and purchased transportation |
|
66,676 |
|
|
9.4 |
|
|
|
92,918 |
|
|
13.1 |
|
|
|
338,575 |
|
|
11.8 |
|
|
|
441,167 |
|
|
14.6 |
|
Shared services |
|
69,468 |
|
|
9.8 |
|
|
|
66,678 |
|
|
9.4 |
|
|
|
279,248 |
|
|
9.7 |
|
|
|
281,698 |
|
|
9.4 |
|
(Gain) loss on sale of property and equipment and lease impairment charges(2) |
|
77 |
|
|
— |
|
|
|
(2,493 |
) |
|
(0.4 |
) |
|
|
982 |
|
|
— |
|
|
|
(12,468 |
) |
|
(0.4 |
) |
Innovative technology costs(3) |
|
— |
|
|
— |
|
|
|
6,225 |
|
|
0.9 |
|
|
|
21,711 |
|
|
0.8 |
|
|
|
27,207 |
|
|
0.9 |
|
Other |
|
1,189 |
|
|
0.2 |
|
|
|
1,546 |
|
|
0.2 |
|
|
|
4,829 |
|
|
0.2 |
|
|
|
4,175 |
|
|
0.1 |
|
Total Asset-Based |
|
622,453 |
|
|
87.7 |
% |
|
|
636,305 |
|
|
89.4 |
% |
|
|
2,617,852 |
|
|
91.2 |
% |
|
|
2,629,767 |
|
|
87.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Asset-Light(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Purchased transportation |
$ |
357,122 |
|
|
86.4 |
% |
|
$ |
402,561 |
|
|
84.0 |
% |
|
$ |
1,435,604 |
|
|
85.4 |
% |
|
$ |
1,784,668 |
|
|
83.4 |
% |
Supplies and expenses |
|
2,934 |
|
|
0.7 |
|
|
|
3,451 |
|
|
0.7 |
|
|
|
12,094 |
|
|
0.7 |
|
|
|
13,955 |
|
|
0.6 |
|
Depreciation and amortization(4) |
|
5,120 |
|
|
1.2 |
|
|
|
5,010 |
|
|
1.0 |
|
|
|
20,370 |
|
|
1.2 |
|
|
|
20,730 |
|
|
1.0 |
|
Shared services |
|
46,471 |
|
|
11.3 |
|
|
|
53,579 |
|
|
11.2 |
|
|
|
194,296 |
|
|
11.6 |
|
|
|
218,133 |
|
|
10.2 |
|
Contingent consideration(5) |
|
(6,300 |
) |
|
(1.5 |
) |
|
|
17,490 |
|
|
3.7 |
|
|
|
(19,100 |
) |
|
(1.1 |
) |
|
|
18,300 |
|
|
0.9 |
|
Lease impairment charges(6) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
14,407 |
|
|
0.9 |
|
|
|
— |
|
|
— |
|
Legal settlement(7) |
|
9,500 |
|
|
2.3 |
|
|
|
— |
|
|
— |
|
|
|
9,500 |
|
|
0.6 |
|
|
|
— |
|
|
— |
|
Gain on sale of subsidiary(8) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(402 |
) |
|
— |
|
Other |
|
6,234 |
|
|
1.5 |
|
|
|
8,261 |
|
|
1.7 |
|
|
|
25,745 |
|
|
1.4 |
|
|
|
31,163 |
|
|
1.4 |
|
Total Asset-Light |
|
421,081 |
|
|
101.9 |
% |
|
|
490,352 |
|
|
102.3 |
% |
|
|
1,692,916 |
|
|
100.7 |
% |
|
|
2,086,547 |
|
|
97.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other and eliminations(9) |
|
(18,252 |
) |
|
|
|
|
(13,371 |
) |
|
|
|
|
(55,944 |
) |
|
|
|
|
(81,832 |
) |
|
|
||||
Total consolidated operating expenses from continuing operations |
$ |
1,025,282 |
|
|
94.1 |
% |
|
$ |
1,113,286 |
|
|
95.7 |
% |
|
$ |
4,254,824 |
|
|
96.1 |
% |
|
$ |
4,634,482 |
|
|
92.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Asset-Based |
$ |
87,533 |
|
|
|
|
$ |
75,131 |
|
|
|
|
$ |
253,152 |
|
|
|
|
$ |
381,133 |
|
|
|
||||
Asset-Light(1) |
|
(7,656 |
) |
|
|
|
|
(11,254 |
) |
|
|
|
|
(12,271 |
) |
|
|
|
|
52,725 |
|
|
|
||||
Other and eliminations(9) |
|
(15,624 |
) |
|
|
|
|
(13,668 |
) |
|
|
|
|
(68,262 |
) |
|
|
|
|
(39,332 |
) |
|
|
||||
Total consolidated operating income from continuing operations |
$ |
64,253 |
|
|
|
|
$ |
50,209 |
|
|
|
|
$ |
172,619 |
|
|
|
|
$ |
394,526 |
|
|
|
____________________ | ||
1) |
Asset-Light represents the reportable segment previously named |
|
2) |
The year ended |
|
3) |
Represents costs associated with the freight handling pilot test program at ABF Freight, for which the decision was made to pause the pilot during third quarter 2023. |
|
4) |
Depreciation and amortization includes amortization of intangibles associated with acquired businesses. |
|
5) |
Represents the change in fair value of the contingent earnout consideration recorded for the MoLo acquisition. The liability for contingent consideration is remeasured at each quarterly reporting date, and any change in fair value as a result of the recurring assessments is recognized in operating income (loss). The contingent consideration for the MoLo acquisition will be paid based on achievement of certain targets of adjusted earnings before interest, taxes, depreciation, and amortization, as adjusted for certain items pursuant to the merger agreement, for years 2023 through 2025. |
|
6) |
Represents noncash lease-related impairment charges for certain office spaces that were made available for sublease. |
|
7) |
Represents estimated settlement expenses related to the classification of certain Asset-Light employees under the Fair Labor Standards Act. |
|
8) |
Gain relates to the contingent amount recognized in second quarter 2022 when funds from the |
|
9) |
“Other and eliminations” includes |
|
|||||||||||||||||
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES |
|||||||||||||||||
|
|||||||||||||||||
Non-GAAP Financial Measures | |||||||||||||||||
We report our financial results in accordance with |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Three Months Ended |
Year Ended |
||||||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
||||||||
|
|
(Unaudited) |
|
||||||||||||||
|
|
($ thousands, except per share data) |
|
||||||||||||||
Operating Income from Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amounts on GAAP basis |
|
$ |
64,253 |
|
|
$ |
50,209 |
|
|
$ |
172,619 |
|
|
$ |
394,526 |
|
|
Innovative technology costs, pre-tax(1) |
|
|
11,005 |
|
|
|
10,713 |
|
|
|
52,363 |
|
|
|
40,796 |
|
|
Purchase accounting amortization, pre-tax(2) |
|
|
3,192 |
|
|
|
3,213 |
|
|
|
12,768 |
|
|
|
12,853 |
|
|
Change in fair value of contingent consideration, pre-tax(3) |
|
|
(6,300 |
) |
|
|
17,490 |
|
|
|
(19,100 |
) |
|
|
18,300 |
|
|
Lease impairment charges, pre-tax(4) |
|
|
— |
|
|
|
— |
|
|
|
30,162 |
|
|
|
— |
|
|
Legal settlement, pre-tax(5) |
|
|
9,500 |
|
|
|
— |
|
|
|
9,500 |
|
|
|
— |
|
|
Gain on sale of subsidiary, pre-tax(6) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(402 |
) |
|
Nonunion vacation policy enhancement, pre-tax(7) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,990 |
|
|
Non-GAAP amounts |
|
$ |
81,650 |
|
|
$ |
81,625 |
|
|
$ |
258,312 |
|
|
$ |
468,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net Income from Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amounts on GAAP basis |
|
$ |
48,790 |
|
|
$ |
36,485 |
|
|
$ |
142,164 |
|
|
$ |
294,648 |
|
|
Innovative technology costs, after-tax (includes related financing costs)(1) |
|
|
8,364 |
|
|
|
8,136 |
|
|
|
39,680 |
|
|
|
30,822 |
|
|
Purchase accounting amortization, after-tax(2) |
|
|
2,399 |
|
|
|
2,396 |
|
|
|
9,593 |
|
|
|
9,585 |
|
|
Change in fair value of contingent consideration, after-tax(3) |
|
|
(4,733 |
) |
|
|
13,043 |
|
|
|
(14,350 |
) |
|
|
13,647 |
|
|
Lease impairment charges, after-tax(4) |
|
|
— |
|
|
|
— |
|
|
|
22,571 |
|
|
|
— |
|
|
Legal settlement, after-tax(5) |
|
|
7,137 |
|
|
|
— |
|
|
|
7,137 |
|
|
|
— |
|
|
Gain on sale of subsidiary, after-tax(6) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(317 |
) |
|
Nonunion vacation policy enhancement, after-tax(7) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,479 |
|
|
Change in fair value of equity investment, after-tax(8) |
|
|
— |
|
|
|
— |
|
|
|
(2,786 |
) |
|
|
— |
|
|
Life insurance proceeds and changes in cash surrender value |
|
|
(1,787 |
) |
|
|
(942 |
) |
|
|
(4,581 |
) |
|
|
2,737 |
|
|
Tax expense (benefit) from vested RSUs(9) |
|
|
(187 |
) |
|
|
223 |
|
|
|
(5,290 |
) |
|
|
(8,087 |
) |
|
Tax credits(10) |
|
|
— |
|
|
|
1,424 |
|
|
|
— |
|
|
|
234 |
|
|
Non-GAAP amounts |
|
$ |
59,983 |
|
|
$ |
60,765 |
|
|
$ |
194,138 |
|
|
$ |
344,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted Earnings Per Share from Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amounts on GAAP basis |
|
$ |
2.01 |
|
|
$ |
1.45 |
|
|
$ |
5.77 |
|
|
$ |
11.55 |
|
|
Innovative technology costs, after-tax (includes related financing costs)(1) |
|
|
0.34 |
|
|
|
0.32 |
|
|
|
1.61 |
|
|
|
1.21 |
|
|
Purchase accounting amortization, after-tax(2) |
|
|
0.10 |
|
|
|
0.10 |
|
|
|
0.39 |
|
|
|
0.38 |
|
|
Change in fair value of contingent consideration, after-tax(3) |
|
|
(0.20 |
) |
|
|
0.52 |
|
|
|
(0.58 |
) |
|
|
0.54 |
|
|
Lease impairment charges, after-tax(4) |
|
|
— |
|
|
|
— |
|
|
|
0.92 |
|
|
|
— |
|
|
Legal settlement, after-tax(5) |
|
|
0.29 |
|
|
|
— |
|
|
|
0.29 |
|
|
|
— |
|
|
Gain on sale of subsidiary, after-tax(6) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
Nonunion vacation policy enhancement, after-tax(7) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.06 |
|
|
Change in fair value of equity investment, after-tax(8) |
|
|
— |
|
|
|
— |
|
|
|
(0.11 |
) |
|
|
— |
|
|
Life insurance proceeds and changes in cash surrender value |
|
|
(0.07 |
) |
|
|
(0.04 |
) |
|
|
(0.19 |
) |
|
|
0.11 |
|
|
Tax expense (benefit) from vested RSUs(9) |
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
(0.21 |
) |
|
|
(0.32 |
) |
|
Tax credits(10) |
|
|
— |
|
|
|
0.06 |
|
|
|
— |
|
|
|
0.01 |
|
|
Non-GAAP amounts(11) |
|
$ |
2.47 |
|
|
$ |
2.42 |
|
|
$ |
7.88 |
|
|
$ |
13.52 |
|
|
____________________ | |||||||||||||||||
See “Notes to Non-GAAP Financial Tables” for footnotes to this |
|
|||||||||||||||||||||||||||||
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued |
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Year Ended |
|
||||||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
||||||||||||||||||||
Segment Operating Income (Loss) Reconciliations |
|
(Unaudited) |
|
||||||||||||||||||||||||||
|
|
($ thousands, except percentages) |
|
||||||||||||||||||||||||||
Asset-Based Segment |
|
|
|
|
|||||||||||||||||||||||||
Operating Income ($) and Operating Ratio (% of revenues) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Amounts on GAAP basis |
|
$ |
87,533 |
|
|
87.7 |
% |
|
$ |
75,131 |
|
|
89.4 |
% |
|
$ |
253,152 |
|
|
91.2 |
% |
|
$ |
381,133 |
|
|
87.3 |
% |
|
Innovative technology costs, pre-tax(12) |
|
|
— |
|
|
— |
|
|
|
6,225 |
|
|
(0.9 |
) |
|
|
21,711 |
|
|
(0.8 |
) |
|
|
27,207 |
|
|
(0.9 |
) |
|
Lease impairment charges, pre-tax(4) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
684 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
Nonunion vacation policy enhancement, pre-tax(7) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
1,245 |
|
|
— |
|
|
Non-GAAP amounts(11) |
|
$ |
87,533 |
|
|
87.7 |
% |
|
$ |
81,356 |
|
|
88.6 |
% |
|
$ |
275,547 |
|
|
90.4 |
% |
|
$ |
409,585 |
|
|
86.4 |
% |
|
|
|
|
|
|
|||||||||||||||||||||||||
Asset-Light Segment(13) |
|
|
|
|
|||||||||||||||||||||||||
Operating Income (Loss) ($) and Operating Ratio (% of revenues) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Amounts on GAAP basis |
|
$ |
(7,656 |
) |
|
101.9 |
% |
|
$ |
(11,254 |
) |
|
102.3 |
% |
|
$ |
(12,271 |
) |
|
100.7 |
% |
|
$ |
52,725 |
|
|
97.5 |
% |
|
Purchase accounting amortization, pre-tax(2) |
|
|
3,192 |
|
|
(0.8 |
) |
|
|
3,213 |
|
|
(0.7 |
) |
|
|
12,768 |
|
|
(0.8 |
) |
|
|
12,853 |
|
|
(0.6 |
) |
|
Change in fair value of contingent consideration, pre-tax(3) |
|
|
(6,300 |
) |
|
1.5 |
|
|
|
17,490 |
|
|
(3.7 |
) |
|
|
(19,100 |
) |
|
1.1 |
|
|
|
18,300 |
|
|
(0.9 |
) |
|
Lease impairment charges, pre-tax(4) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
14,407 |
|
|
(0.9 |
) |
|
|
— |
|
|
— |
|
|
Legal settlement, pre-tax(5) |
|
|
9,500 |
|
|
(2.3 |
) |
|
|
— |
|
|
— |
|
|
|
9,500 |
|
|
(0.6 |
) |
|
|
— |
|
|
— |
|
|
Gain on sale of subsidiary, pre-tax(6) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(402 |
) |
|
— |
|
|
Nonunion vacation policy enhancement, pre-tax(7) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
318 |
|
|
— |
|
|
Non-GAAP amounts(11) |
|
$ |
(1,264 |
) |
|
100.3 |
% |
|
$ |
9,449 |
|
|
98.0 |
% |
|
$ |
5,304 |
|
|
99.7 |
% |
|
$ |
83,794 |
|
|
96.1 |
% |
|
|
|
|
|
|
|||||||||||||||||||||||||
Other and Eliminations |
|
|
|
|
|||||||||||||||||||||||||
Operating Income (Loss) ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Amounts on GAAP basis |
|
$ |
(15,624 |
) |
|
|
|
$ |
(13,668 |
) |
|
|
|
$ |
(68,262 |
) |
|
|
|
$ |
(39,332 |
) |
|
|
|
||||
Innovative technology costs, pre-tax(1) |
|
|
11,005 |
|
|
|
|
|
4,488 |
|
|
|
|
|
30,652 |
|
|
|
|
|
13,589 |
|
|
|
|
||||
Lease impairment charges, pre-tax(4) |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
15,071 |
|
|
|
|
|
— |
|
|
|
|
||||
Nonunion vacation policy enhancement, pre-tax(7) |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
427 |
|
|
|
|
||||
Non-GAAP amounts(11) |
|
$ |
(4,619 |
) |
|
|
|
$ |
(9,180 |
) |
|
|
|
$ |
(22,539 |
) |
|
|
|
$ |
(25,316 |
) |
|
|
|
||||
____________________ | |||||||||||||||||||||||||||||
Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this Segment Operating Income (Loss) Reconciliations non-GAAP table. |
|
|||||||||||||||||||||||
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Effective Tax Rate Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
($ thousands, except percentages) |
|
Three Months Ended |
|||||||||||||||||||||
|
|
|
|
|
Other |
|
Income |
|
Income |
|
|
|
|
|
|||||||||
CONTINUING OPERATIONS |
|
Operating |
|
Income |
|
Before Income |
|
Tax |
|
Net |
|
|
|||||||||||
|
|
Income |
|
(Costs) |
|
Taxes |
|
Provision |
|
Income |
|
Tax Rate(14) |
|||||||||||
Amounts on GAAP basis |
|
$ |
64,253 |
|
|
$ |
3,553 |
|
|
$ |
67,806 |
|
|
$ |
19,016 |
|
|
$ |
48,790 |
|
|
28.0 |
% |
Innovative technology costs(1) |
|
|
11,005 |
|
|
|
211 |
|
|
|
11,216 |
|
|
|
2,852 |
|
|
|
8,364 |
|
|
25.4 |
|
Purchase accounting amortization(2) |
|
|
3,192 |
|
|
|
— |
|
|
|
3,192 |
|
|
|
793 |
|
|
|
2,399 |
|
|
24.8 |
|
Change in fair value of contingent consideration(3) |
|
|
(6,300 |
) |
|
|
— |
|
|
|
(6,300 |
) |
|
|
(1,567 |
) |
|
|
(4,733 |
) |
|
(24.9 |
) |
Legal settlement(5) |
|
|
9,500 |
|
|
|
— |
|
|
|
9,500 |
|
|
|
2,363 |
|
|
|
7,137 |
|
|
24.9 |
|
Life insurance proceeds and changes in cash surrender value |
|
|
— |
|
|
|
(1,787 |
) |
|
|
(1,787 |
) |
|
|
— |
|
|
|
(1,787 |
) |
|
— |
|
Tax benefit from vested RSUs(9) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
187 |
|
|
|
(187 |
) |
|
— |
|
Non-GAAP amounts |
|
$ |
81,650 |
|
|
$ |
1,977 |
|
|
$ |
83,627 |
|
|
$ |
23,644 |
|
|
$ |
59,983 |
|
|
28.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Year Ended |
|||||||||||||||||||||
|
|
|
|
Other |
|
Income |
|
Income |
|
|
|
|
|
||||||||||
|
|
Operating |
|
Income |
|
Before Income |
|
Tax |
|
Net |
|
|
|||||||||||
|
|
Income |
|
(Costs) |
|
Taxes |
|
Provision |
|
Income |
|
Tax Rate(14) |
|||||||||||
Amounts on GAAP basis |
|
$ |
172,619 |
|
|
$ |
14,296 |
|
|
$ |
186,915 |
|
|
$ |
44,751 |
|
|
$ |
142,164 |
|
|
23.9 |
% |
Innovative technology costs(1) |
|
|
52,363 |
|
|
|
937 |
|
|
|
53,300 |
|
|
|
13,620 |
|
|
|
39,680 |
|
|
25.6 |
|
Purchase accounting amortization(2) |
|
|
12,768 |
|
|
|
— |
|
|
|
12,768 |
|
|
|
3,175 |
|
|
|
9,593 |
|
|
24.9 |
|
Change in fair value of contingent consideration(3) |
|
|
(19,100 |
) |
|
|
— |
|
|
|
(19,100 |
) |
|
|
(4,750 |
) |
|
|
(14,350 |
) |
|
(24.9 |
) |
Lease impairment charges(4) |
|
|
30,162 |
|
|
|
— |
|
|
30,162 |
|
|
|
7,591 |
|
|
|
22,571 |
|
|
25.2 |
|
|
Legal settlement(5) |
|
|
9,500 |
|
|
|
— |
|
|
|
9,500 |
|
|
|
2,363 |
|
|
|
7,137 |
|
|
24.9 |
|
Change in fair value of equity investment(8) |
|
|
— |
|
|
|
(3,739 |
) |
|
|
(3,739 |
) |
|
|
(953 |
) |
|
|
(2,786 |
) |
|
(25.5 |
) |
Life insurance proceeds and changes in cash surrender value |
|
|
— |
|
|
|
(4,581 |
) |
|
|
(4,581 |
) |
|
|
— |
|
|
|
(4,581 |
) |
|
— |
|
Tax benefit from vested RSUs(9) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,290 |
|
|
|
(5,290 |
) |
|
— |
|
Non-GAAP amounts |
|
$ |
258,312 |
|
|
$ |
6,913 |
|
|
$ |
265,225 |
|
|
$ |
71,087 |
|
|
$ |
194,138 |
|
|
26.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
||||||||||||||||||||
|
|
|
|
Other |
|
Income |
|
Income |
|
|
|
|
|
|||||||||
CONTINUING OPERATIONS |
|
Operating |
|
Income |
|
Before Income |
|
Tax |
|
Net |
|
|
||||||||||
|
|
Income |
|
(Costs) |
|
Taxes |
|
Provision |
|
Income |
|
Tax Rate(14) |
||||||||||
Amounts on GAAP basis |
|
$ |
50,209 |
|
$ |
1,578 |
|
|
$ |
51,787 |
|
|
$ |
15,302 |
|
|
$ |
36,485 |
|
|
29.5 |
% |
Innovative technology costs(1) |
|
|
10,713 |
|
|
244 |
|
|
|
10,957 |
|
|
|
2,821 |
|
|
|
8,136 |
|
|
25.7 |
|
Purchase accounting amortization(2) |
|
|
3,213 |
|
|
— |
|
|
|
3,213 |
|
|
|
817 |
|
|
|
2,396 |
|
|
25.4 |
|
Change in fair value of contingent consideration(3) |
|
|
17,490 |
|
|
— |
|
|
|
17,490 |
|
|
|
4,447 |
|
|
|
13,043 |
|
|
25.4 |
|
Life insurance proceeds and changes in cash surrender value |
|
|
— |
|
|
(942 |
) |
|
|
(942 |
) |
|
|
— |
|
|
|
(942 |
) |
|
— |
|
Tax expense from vested RSUs(9) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(223 |
) |
|
|
223 |
|
|
— |
|
Tax credits(10) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(1,424 |
) |
|
|
1,424 |
|
|
— |
|
Non-GAAP amounts |
|
$ |
81,625 |
|
$ |
880 |
|
|
$ |
82,505 |
|
|
$ |
21,740 |
|
|
$ |
60,765 |
|
|
26.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Year Ended |
|||||||||||||||||||||
|
|
|
|
Other |
|
Income |
|
Income |
|
|
|
|
|
||||||||||
|
|
Operating |
|
Income |
|
Before Income |
|
Tax |
|
Net |
|
|
|||||||||||
|
|
Income |
|
(Costs) |
|
Taxes |
|
Provision |
|
Income |
|
Tax Rate(14) |
|||||||||||
Amounts on GAAP basis |
|
$ |
394,526 |
|
|
$ |
(6,223 |
) |
|
$ |
388,303 |
|
|
$ |
93,655 |
|
|
$ |
294,648 |
|
|
24.1 |
% |
Innovative technology costs(1) |
|
|
40,796 |
|
|
|
710 |
|
|
|
41,506 |
|
|
|
10,684 |
|
|
|
30,822 |
|
|
25.7 |
|
Purchase accounting amortization(2) |
|
|
12,853 |
|
|
|
— |
|
|
|
12,853 |
|
|
|
3,268 |
|
|
|
9,585 |
|
|
25.4 |
|
Change in fair value of contingent consideration(3) |
|
|
18,300 |
|
|
|
— |
|
|
|
18,300 |
|
|
|
4,653 |
|
|
|
13,647 |
|
|
25.4 |
|
Gain on sale of subsidiary(6) |
|
|
(402 |
) |
|
|
— |
|
|
|
(402 |
) |
|
|
(85 |
) |
|
|
(317 |
) |
|
(21.1 |
) |
Nonunion vacation policy enhancement(7) |
|
|
1,990 |
|
|
|
— |
|
|
|
1,990 |
|
|
|
511 |
|
|
|
1,479 |
|
|
25.7 |
|
Life insurance proceeds and changes in cash surrender value |
|
|
— |
|
|
|
2,737 |
|
|
|
2,737 |
|
|
|
— |
|
|
|
2,737 |
|
|
— |
|
Tax benefit from vested RSUs(9) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,087 |
|
|
|
(8,087 |
) |
|
— |
|
Tax credits(10) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(234 |
) |
|
|
234 |
|
|
— |
|
Non-GAAP amounts |
|
$ |
468,063 |
|
|
$ |
(2,776 |
) |
|
$ |
465,287 |
|
|
$ |
120,539 |
|
|
$ |
344,748 |
|
|
25.9 |
% |
____________________ | |||||||||||||||||||||||
Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this Effective Tax Rate Reconciliation non-GAAP table. |
|
||||||||||||||||
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued |
||||||||||||||||
|
||||||||||||||||
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (Adjusted EBITDA) |
||||||||||||||||
Management uses Adjusted EBITDA as a key measure of performance and for business planning. The measure is particularly meaningful for analysis of operating performance because it excludes amortization of acquired intangibles and software of the Asset-Light segment, changes in the fair value of contingent consideration and equity investment, lease impairment charges, and estimated legal settlement expenses of the Asset-Light segment, which are significant expenses or gains resulting from strategic decisions or other factors rather than core daily operations. Additionally, Adjusted EBITDA is a primary component of the financial covenants contained in our credit agreement. The calculation of Consolidated Adjusted EBITDA as presented below begins with net income from continuing operations, which is the most directly comparable GAAP measure. The calculation of Asset-Light Adjusted EBITDA as presented below begins with operating income (loss), as other income (costs), income taxes, and net income from continuing operations are reported at the consolidated level and not included in the operating segment financial information evaluated by management to make operating decisions. |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Three Months Ended |
Year Ended |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|||||||
|
|
(Unaudited) |
|
|||||||||||||
|
|
($ thousands) |
|
|||||||||||||
|
|
|
||||||||||||||
Net Income from Continuing Operations |
|
$ |
48,790 |
|
|
$ |
36,485 |
|
$ |
142,164 |
|
|
$ |
294,648 |
|
|
Interest and other related financing costs |
|
|
2,326 |
|
|
|
2,168 |
|
|
9,094 |
|
|
|
7,726 |
|
|
Income tax provision |
|
|
19,016 |
|
|
|
15,302 |
|
|
44,751 |
|
|
|
93,655 |
|
|
Depreciation and amortization(15) |
|
|
37,387 |
|
|
|
34,650 |
|
|
145,349 |
|
|
|
138,159 |
|
|
Amortization of share-based compensation |
|
|
2,848 |
|
|
|
2,879 |
|
|
11,385 |
|
|
|
12,470 |
|
|
Change in fair value of contingent consideration(3) |
|
|
(6,300 |
) |
|
|
17,490 |
|
|
(19,100 |
) |
|
|
18,300 |
|
|
Lease impairment charges(4) |
|
|
— |
|
|
|
— |
|
|
30,162 |
|
|
|
— |
|
|
Legal settlement(5) |
|
|
9,500 |
|
|
|
— |
|
|
9,500 |
|
|
|
— |
|
|
Change in fair value of equity investment(8) |
|
|
— |
|
|
|
— |
|
|
(3,739 |
) |
|
|
— |
|
|
Gain on sale of subsidiary(6) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(402 |
) |
|
Consolidated Adjusted EBITDA from Continuing Operations |
|
$ |
113,567 |
|
|
$ |
108,974 |
|
$ |
369,566 |
|
|
$ |
564,556 |
|
|
____________________ | ||||||||||||||||
Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Year Ended |
|
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
||||||||
|
|
(Unaudited) |
|
||||||||||||||
|
|
($ thousands) |
|
||||||||||||||
Asset-Light Adjusted EBITDA(13) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Income (Loss) |
|
$ |
(7,656 |
) |
|
$ |
(11,254 |
) |
|
$ |
(12,271 |
) |
|
$ |
52,725 |
|
|
Depreciation and amortization(15) |
|
|
5,120 |
|
|
|
5,010 |
|
|
|
20,370 |
|
|
|
20,730 |
|
|
Change in fair value of contingent consideration(3) |
|
|
(6,300 |
) |
|
|
17,490 |
|
|
|
(19,100 |
) |
|
|
18,300 |
|
|
Lease impairment charges(4) |
|
|
— |
|
|
|
— |
|
|
|
14,407 |
|
|
|
— |
|
|
Legal settlement(5) |
|
|
9,500 |
|
|
|
— |
|
|
|
9,500 |
|
|
|
— |
|
|
Gain on sale of subsidiary(6) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(402 |
) |
|
Asset-Light Adjusted EBITDA |
|
$ |
664 |
|
|
$ |
11,246 |
|
|
$ |
12,906 |
|
|
$ |
91,353 |
|
|
____________________ | |||||||||||||||||
Note: See “Notes to Non-GAAP Financial Tables” for footnotes to this Asset-Light Adjusted EBITDA non-GAAP table. |
|
||
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued |
||
|
||
Notes to Non-GAAP Financial Tables |
||
|
||
The following footnotes apply to the non-GAAP financial tables presented in this press release. | ||
1) |
Represents costs associated with the freight handling pilot test program at ABF Freight, costs related to our customer pilot offering of Vaux, and initiatives to optimize our performance through technological innovation. |
|
2) |
Represents the amortization of acquired intangible assets in the Asset-Light segment. |
|
3) |
Represents change in fair value of the contingent earnout consideration recorded for the MoLo acquisition, as previously described in the footnotes to the Financial Statement Operating Segment Data and Operating Ratios table. |
|
4) |
Represents noncash lease-related impairment charges for a freight handling pilot facility reported in “Other,” an Asset-Based service center, and Asset-Light office spaces that were made available for sublease. |
|
5) |
Represents estimated settlement expenses related to the classification of certain Asset-Light employees under the Fair Labor Standards Act. |
|
6) |
Gain relates to the contingent amount recognized in second quarter 2022 when funds from the |
|
7) |
Represents a one-time, noncash charge for enhancements to our nonunion vacation policy which were effective third quarter 2022. |
|
8) |
Represents increase in fair value of our investment in Phantom Auto, a provider of human-centered remote operation software, based on an observable price change during second quarter 2023. |
|
9) |
Represents recognition of the tax impact for the vesting of share-based compensation. |
|
10) |
Represents the amount recognized in the tax provision during fourth quarter 2022 to adjust estimated amounts recognized during 2022 for the research and development tax credit related to the tax year ended |
|
11) |
Non-GAAP amounts are calculated in total and may not equal the sum of the GAAP amounts and the non-GAAP adjustments due to rounding. |
|
12) |
Represents costs associated with the freight handling pilot test program at ABF Freight, for which the decision was made to pause the pilot during third quarter 2023. |
|
13) |
Asset-Light represents the reportable segment previously named |
|
14) |
Tax rate for total “Amounts on GAAP basis” represents the effective tax rate. The tax effects of non-GAAP adjustments are calculated based on the statutory rate applicable to each item based on tax jurisdiction unless the nature of the item requires the tax effect to be estimated by applying a specific tax treatment. |
|
15) |
Includes amortization of intangibles associated with acquired businesses. |
|
||||||||||||||||||||
OPERATING STATISTICS |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
2023 |
|
2022 |
|
% Change |
|
|
2023 |
|
2022 |
|
% Change |
|
||||||
|
|
(Unaudited) |
|
|||||||||||||||||
Asset-Based |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Workdays |
|
|
61.5 |
|
|
61.0 |
|
|
|
|
|
251.5 |
|
|
252.0 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Billed Revenue(1) / CWT |
|
$ |
48.98 |
|
$ |
45.86 |
|
6.8 |
% |
|
|
$ |
44.46 |
|
$ |
45.45 |
|
(2.2 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Billed Revenue(1) / Shipment |
|
$ |
570.64 |
|
$ |
571.21 |
|
(0.1 |
%) |
|
|
$ |
554.53 |
|
$ |
599.04 |
|
(7.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Shipments |
|
|
1,224,772 |
|
|
1,224,541 |
|
0.0 |
% |
|
|
|
5,162,929 |
|
|
5,013,615 |
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Shipments / Day |
|
|
19,915 |
|
|
20,074 |
|
(0.8 |
%) |
|
|
|
20,529 |
|
|
19,895 |
|
3.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Tonnage (Tons) |
|
|
713,518 |
|
|
762,642 |
|
(6.4 |
%) |
|
|
|
3,220,013 |
|
|
3,304,352 |
|
(2.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Tons / Day |
|
|
11,602 |
|
|
12,502 |
|
(7.2 |
%) |
|
|
|
12,803 |
|
|
13,113 |
|
(2.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Pounds / Shipment |
|
|
1,165 |
|
|
1,246 |
|
(6.5 |
%) |
|
|
|
1,247 |
|
|
1,318 |
|
(5.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Average Length of Haul (Miles) |
|
|
1,078 |
|
|
1,082 |
|
(0.4 |
%) |
|
|
|
1,092 |
|
|
1,090 |
|
0.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________ | ||
1) |
Revenue for undelivered freight is deferred for financial statement purposes in accordance with the Asset-Based segment revenue recognition policy. Billed revenue used for calculating revenue per hundredweight measurements has not been adjusted for the portion of revenue deferred for financial statement purposes. |
|
|
|
|
|
|
Year Over Year % Change |
|
|
|
Three Months Ended |
Year Ended |
|
|
|
|
|
|
(Unaudited) |
|
Asset-Light(2)(3) |
|
|
|
|
|
|
|
Revenue / Shipment |
|
(23.9%) |
(25.3%) |
|
|
|
|
Shipments / Day |
|
12.4% |
5.3% |
____________________ | ||
2) |
Asset-Light represents the reportable segment previously named |
|
3) |
Statistical data for the periods presented include transactions related to managed transportation solutions which were previously excluded from the presentation of operating statistics for the Asset-Light segment. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240206968120/en/
Investor Relations Contact:
Title: Vice President – Investor Relations
Phone: 479-785-6200
Email:dhumphrey@arcb.com
Media Contact:
Title:
Phone: 479-494-8221
Email: amahar@arcb.com
Source: