Announcement

Collapse
No announcement yet.

ArcBest First Quarter 2022 Results

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • ArcBest First Quarter 2022 Results

    Solidifies Position as Leading Integrated Logistics Company and Delivers Record Profitability

    • First quarter 2022 revenue of $1.3 billion increased 61.0 percent over first quarter 2021.
    • Net income improved to $69.6 million, or $2.68 per diluted share. On a non-GAAP basis, first quarter 2022 net
    income was $79.8 million, or $3.08 per diluted share.
    • Continued significant investments in technology, customer solutions and people to drive revenue growth.

    FORT SMITH, Arkansas, April 29, 2022 — ArcBest® (Nasdaq: ARCB), a leader in supply chain logistics, today
    reported first quarter 2022 revenue of $1.3 billion, reflecting an increase of $505.9 million compared to first quarter
    2021. Each of ArcBest’s operating segments achieved double-digit percentage revenue growth over the prior year
    period. First quarter 2022 results include the impact of the acquisition of MoLo Solutions, LLC (“MoLo”), which was
    completed in November 2021.

    ArcBest’s first quarter 2022 operating income was $94.9 million and net income was $69.6 million, or $2.68 per
    diluted share, compared to operating income of $32.2 million and net income of $23.4 million, or $0.87 per diluted
    share, in the first quarter of 2021.

    Excluding certain items in both periods as identified in the attached reconciliation tables, first quarter non-GAAP
    operating income was $108.6 million, compared to $40.8 million in the prior-year period. On a non-GAAP basis, net
    income was $79.8 million, or $3.08 per diluted share, compared to $28.5 million, or $1.06 per diluted share, in the
    first quarter of 2021.

    “Our outstanding first quarter results, including record profitability, demonstrate our success in transforming ArcBest
    and positioning it as one of the country’s leading integrated logistics companies,” said Judy R. McReynolds, ArcBest
    chairman, president and CEO. “Our strategy is working, underscored by improved operating margins across the
    business, and we are aggressively investing in our vision to ensure we continue innovating, developing our talent,
    enhancing our ability to serve customers and driving incremental revenue growth. As announced yesterday, our
    strong cash flow allows us to return more capital to shareholders by increasing both our share repurchase program
    and our dividend. We are confident our talented team is poised to execute on our clearly defined strategy, which
    will accelerate our growth trajectory while positioning ArcBest to operate even more efficiently and consistently for
    years to come.”

    First Quarter Results of Operations Comparisons

    Asset-Based

    First Quarter 2022 Versus First Quarter 2021

    • Revenue of $705.3 million compared to $556.3 million, a per-day increase of 25.8 percent.
    • Total tonnage per day increase of 3.6 percent, including an increase of 0.9 percent in LTL-rated weight per
    shipment.
    • Total shipments per day increased 0.2 percent.
    • Total billed revenue per hundredweight increased 21.1 percent and was positively impacted by higher fuel
    surcharges. Revenue per hundredweight on LTL-rated business, excluding fuel surcharge, improved by a
    percentage in the double digits.
    • Operating income of $80.0 million compared to $30.1 million. On a non-GAAP basis, operating income of
    $87.0 million compared to $36.9 million.

    Strength in the pricing environment and an increase in ABF Freight’s average weight per shipment both contributed
    to strong first quarter revenue growth in ArcBest’s Asset-Based business versus the prior year period. Despite
    inflationary pressures, customer demand and market rates remained solid and ArcBest continued to deliver on the
    increasing supply chain needs of its customers through customized logistics solutions. Freight trends with ArcBest’s
    core LTL customers were also positive throughout the quarter while activities designed to optimize revenue, network
    balance, freight mix and shipments resulted in more efficient utilization of labor and network resources, and
    improved profitability. Asset-Based hiring initiatives were successful, contributing to ABF Freight adding over 600
    new employees across key locations during the quarter.

    Asset-Light‡

    First Quarter 2022 Versus First Quarter 2021 (including the results of MoLo)

    • Revenue of $673.7 million compared to $311.5 million, a per-day increase of 114.6 percent.
    • Operating income of $22.8 million compared to $9.3 million. On a non-GAAP basis, operating income of
    $26.9 million compared to $10.2 million.
    • Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) of
    $29.3 million compared to $12.1 million, as detailed in the attached non-GAAP reconciliation tables.

    Enhanced customer demand and higher market rates drove strong first quarter revenue growth and record
    profitability in the ArcBest Asset-Light segment. The integration of MoLo and related synergy realization remains
    on schedule and is progressing as expected, contributing to increases in truckload brokerage revenue and business
    levels over the same period last year. In addition, supply chain solutions offered through managed transportation,
    expedite and international services were meaningful contributors to the enhanced financial results of the Asset-Light
    business. The higher operating income reflects increased revenue and effective cost management, which also
    resulted in greater operating leverage.

    At FleetNet, increases in total events and revenue per event contributed to growth in total revenue and profitability
    compared to the prior year period.

    NOTE
    ‡ - The ArcBest and FleetNet reportable segments, combined, represent Asset-Light operations.



    https://arcb.com/sites/default/files/pressrelease/2022/1Q'22%20Earnings%20Release.pdf



Working...
X