ArcBest Second Quarter 2021 Results

[Docker]

- Second quarter 2021 revenue of $949.0 million, and net income of $61.0 million, or $2.27 per diluted share. On a non-GAAP1 basis, second quarter 2021 net income of $53.1 million, or $1.97 per diluted share.

- Highest quarterly revenue and operating income in ArcBest's history.

FORT SMITH, Ark., Aug. 2, 2021 /PRNewswire/ -- ArcBest® (Nasdaq: ARCB), a leader in supply chain logistics, today reported second quarter 2021 revenue of $949.0 million compared to second quarter 2020 revenue of $627.4 million. ArcBest's second quarter 2021 operating income was $74.3 million and net income was $61.0 million, or $2.27 per diluted share compared to second quarter 2020 operating income of $20.4 million and net income of $15.9 million, or $0.61 per diluted share.

Excluding certain items in both periods as identified in the attached reconciliation tables, non-GAAP operating income was $74.8 million in second quarter 2021 compared to second quarter 2020 operating income of $25.1 million. On a non-GAAP basis, net income was $53.1 million, or $1.97 per diluted share in second quarter 2021 compared to second quarter 2020 net income of $17.6 million, or $0.67 per diluted share.

‘We're very pleased to report record results for the second consecutive quarter, „said Judy R. McReynolds, ArcBest chairman, president and CEO. ‘Our strong results for the first half of 2021 reflect our tireless execution in a period of extremely tight capacity and high demand. We put the customer at the center of everything we do, and we're seeing our approach pay off as we work alongside shippers and capacity providers to solve their complex challenges.”

Second Quarter Results of Operations Comparisons

Asset-Based

Second Quarter 2021 Versus Second Quarter 2020

• Revenue of $652.8 million compared to $460.1 million, a per-day increase of 41.9 percent.
• Total tonnage per day increase of 22.7 percent, with double-digit percentage increases in both LTL-rated tonnage and TL-rated spot shipment tonnage moving in the Asset-Based network.
• Total shipments per day increase of 13.5 percent including a 13.7 percent increase in LTL-rated shipments per day and an increase of 10.8 percent in LTL-rated weight per shipment.
• Total billed revenue per hundredweight increased 15.4 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 mid-single digits.
• Operating income of $63.9 million and an operating ratio of 90.2 percent compared to the prior year quarter operating income of $21.0 million and an operating ratio of 95.4 percent. On a non-GAAP basis, operating income of $71.4 million and an operating ratio of 89.0 percent compared to the prior year quarter operating income of $25.8 million and an operating ratio of 94.4 percent.

ArcBest's Asset-Based business continued to benefit from increasing customer demand and a solid pricing environment that contributed to record-setting revenue and profits. This quarter's results compared favorably to the second quarter of 2020 which was significantly impacted by the COVID-19 pandemic. Considering the strength of business from core customers, along with unseasonable demand for household goods moving services which was earlier in the year than normal, Asset-Based shipment mix was managed for customer service levels, while optimizing revenue. In response to the need for increased use of local and linehaul purchased transportation to supplement the Asset-Based network and meet customers' needs, second quarter hiring initiatives were successful and should produce future benefits.

Closing Comments

‘We are experiencing a strong start to 2021 and I'm proud of the work our leaders and employees are doing on behalf of our customers as their businesses normalize, „McReynolds said. ‘Providing assured capacity is a shared mindset of employees across our organization.”

https://www.prnewswire.com/news-rele...301345733.html

You guys are on pace to get that 3% bonus...





The question is... will Judy find a way to screw you guys out of it? After all... she's the one who believes that an uneducated truck driver shouldn't be making $100,000 a year and that would really stick in her craw to hand you over another 3%. She may be a creative wizard when it comes to manipulating the books so that actually might be a challenge to keep you from getting at least 2%... unless something drastically happens during the remainder of the year seeing that ArcBest had two record breaking quarters in a row.

[Docker]

Re: ArcBest Second Quarter 2021 Results

Judy McReynolds

Thank you, David, and good morning, everyone.

As you saw in our release, our second quarter revenue increased 51% over second quarter of 2020, when we were impacted by the economic factors of the COVID-19 pandemic. I am very pleased to report that we achieved the highest quarterly operating income in ArcBest’s history and record quarterly revenue, and we've had our best first half ever in terms of consolidated revenue and operating income. These records reflect our success with customers as a leading logistics company with assured capacity options. So far this year, we are experiencing strong customer demand, resulting in shipment and tonnage growth and a very positive industry pricing environment.

On a non-GAAP basis, our second quarter Asset-Based operating ratio was in the 80s for the first time in many years, and our Asset-Light profits grew substantially. As we enter the third quarter, customers continue to experience high levels of supply chain disruption, and we are effectively adapting our approaches to their needs. 2021 has been the year for customer conversations regarding the best holistic solution for their supply chain, and our strategic positioning over the last decade enables us to grow with them as their businesses recover. We have a data-driven approach, and the visibility we have ensures proper alignment of ArcBest’s resources with customer requirements. We are focused on listening to our customers, which helps us be more agile and responsive and to know when it's necessary to pivot to new solutions.

As I mentioned, we anticipate growth in our business. Our opportunity pipeline has grown significantly year-over-year through the first half of 2021 and accelerated sequentially in the second quarter compared to the first. Customer win rates are reaching all-time highs. In order to address this growth and serve our customers, we are increasing hiring and recruiting efforts, optimizing the ABF network, including linehaul, dock and city operations, taking delivery of new ABF equipment and placing 2022 orders early, expanding ABF facilities through investments and upgrades, increasing recruiting resources and equipment for our expedite and truckload fleets and investing in various technologies, including those to make it easier to match shipments with available capacity.

Speaking of technology, we continuously invest in technology and innovation to improve operations and further enable a best-in-class customer experience.

Innovation is more than a mindset for us. It's simply part of everything we do.

And now, I'll turn it over to David Cobb for his comments.

https://seekingalpha.com/article/444...all-transcript

[Jimmy]

Re: ArcBest Second Quarter 2021 Results

wow 90.2 OR

[Docker]

Re: ArcBest Second Quarter 2021 Results

wow 90.2 OR

And that's with overtime galore paid out nationwide the whole quarter... overtime on six and seven punches... as much as people were willing to work. They used to run around that in the eightys and early ninetys but not very much since if my memory serves me right.

[Docker]

Re: ArcBest Second Quarter 2021 Results

Judy McReynolds

Thank you, David, and good morning, everyone.

As you saw in our release, our second quarter revenue increased 51% over second quarter of 2020, when we were impacted by the economic factors of the COVID-19 pandemic. I am very pleased to report that we achieved the highest quarterly operating income in ArcBest’s history and record quarterly revenue, and we've had our best first half ever in terms of consolidated revenue and operating income. These records reflect our success with customers as a leading logistics company with assured capacity options. So far this year, we are experiencing strong customer demand, resulting in shipment and tonnage growth and a very positive industry pricing environment.

On a non-GAAP basis, our second quarter Asset-Based operating ratio was in the 80s for the first time in many years, and our Asset-Light profits grew substantially. As we enter the third quarter, customers continue to experience high levels of supply chain disruption, and we are effectively adapting our approaches to their needs. 2021 has been the year for customer conversations regarding the best holistic solution for their supply chain, and our strategic positioning over the last decade enables us to grow with them as their businesses recover. We have a data-driven approach, and the visibility we have ensures proper alignment of ArcBest’s resources with customer requirements. We are focused on listening to our customers, which helps us be more agile and responsive and to know when it's necessary to pivot to new solutions.

As I mentioned, we anticipate growth in our business. Our opportunity pipeline has grown significantly year-over-year through the first half of 2021 and accelerated sequentially in the second quarter compared to the first. Customer win rates are reaching all-time highs. In order to address this growth and serve our customers, we are increasing hiring and recruiting efforts, optimizing the ABF network, including linehaul, dock and city operations, taking delivery of new ABF equipment and placing 2022 orders early, expanding ABF facilities through investments and upgrades, increasing recruiting resources and equipment for our expedite and truckload fleets and investing in various technologies, including those to make it easier to match shipments with available capacity.

Speaking of technology, we continuously invest in technology and innovation to improve operations and further enable a best-in-class customer experience.

Innovation is more than a mindset for us. It's simply part of everything we do.

And now, I'll turn it over to David Cobb for his comments.

https://seekingalpha.com/article/444...all-transcript

ArcBest Corp. (NASDAQ:ARCB), which operates a large asset-based LTL subsidiary, ABF Freight, has boosted 2021 capex by around $10 million to support facility upgrade projects by the end of the year, company executives said on their conference call earlier this week. Included in the plan is an expansion of ABF’s San Bernardino, California, facility to increase capacity by 30% and add 40 doors. The unit plans to build a facility in Fort Wayne, Indiana, where it will relocate its operations. It also plans to move into an expanded distribution center in Salt Lake City, ArcBest executives said.

https://www.freightwaves.com/news/ol...-margins-spike

Looks like there will be a COO on the horizon...

[unionman]

Re: ArcBest Second Quarter 2021 Results

You guys are on pace to get that 3% bonus...





The question is... will Judy find a way to screw you guys out of it? After all... she's the one who believes that an uneducated truck driver shouldn't be making $100,000 a year and that would really stick in her craw to hand you over another 3%. She may be a creative wizard when it comes to manipulating the books so that actually might be a challenge to keep you from getting at least 2%... unless something drastically happens during the remainder of the year seeing that ArcBest had two record breaking quarters in a row.

That's pretty awesome numbers after everything is said and done and paying the execs bonuses by the hard work of the rank and file. Hope they keep it up.