ArcBest® Announces First Quarter 2019 Results

Loading...
Loading...

FORT SMITH, Ark., May 2, 2019 /PRNewswire/ -- ArcBest® ARCB, a leading logistics company with creative problem solvers who deliver integrated solutions, today reported first quarter 2019 revenue of $711.8 million compared to first quarter 2018 revenue of $700.0 million.  First quarter 2019 operating income was $8.6 million compared to operating income of $12.7 million last year.  Net income was $4.9 million, or $0.18 per diluted share compared to first quarter 2018 net income of $10.0 million, or $0.37 per diluted share.

ArcBest Logo (PRNewsFoto/ArcBest Corporation) (PRNewsfoto/ArcBest Corporation)

Excluding certain items in both periods, as identified in the attached reconciliation tables, non-GAAP net income was $4.6 million, or $0.17 per diluted share, in first quarter 2019 compared to first quarter 2018 net income of $7.8 million, or $0.29 per diluted share. 

"Business conditions, while still relatively strong, moderated in the first quarter from the levels seen last year particularly with regard to capacity and weather," said Chairman, President and CEO Judy R. McReynolds. "We were pleased to see positive results in a historically slow quarter, as our yield management initiatives on the asset-based side remained productive and net revenue margins in our ArcBest Asset-Light business improved, offset by reduced demand for expedited services resulting from a more balanced truckload capacity environment."

Asset-Based

Results of Operations

First Quarter 2019 Versus First Quarter 2018

  • Revenue of $506.1 million compared to $482.1 million, a per-day increase of 5.8 percent.
  • Tonnage per day decrease of 3.1 percent, with a low-single digit percentage increase in LTL-rated freight.
  • Shipments per day increase of 3.1 percent. Total weight per shipment decreased 6.0 percent and the decrease in the average LTL-rated shipment was approximately 2 percent.
  • Total billed revenue per hundredweight increased 8.0 percent and was positively impacted by Asset-Based pricing initiatives and lower average weight per shipment. Excluding fuel surcharge, the percentage increase on ArcBest's Asset-Based LTL freight was in the high-single digits.
  • Operating income of $13.6 million and an operating ratio of 97.3 percent compared to operating income of $13.4 million and an operating ratio of 97.2 percent.

1.     U.S. Generally Accepted Accounting Principles

During the first quarter, ArcBest's Asset-Based operating income benefited from continued pricing initiatives.  First quarter total tonnage per day declined as an increase in LTL-rated freight tonnage was more than offset by decreases in truckload-rated spot shipments moving in the asset-based network.  Versus the prior year's first quarter, revenue and costs were impacted by weather events that reduced business levels and unfavorably impacted freight handling and delivery productivity, as well as the efficiency of the over-the-road transportation operation.  The negative impact of severe weather on Asset-Based first quarter operating income was approximately $2 million higher than in the prior year first quarter.

Throughout the quarter, emphasis on maintaining customer service, including adding headcount in a tight labor market in preparation for the expected seasonal increase in customer shipping levels contributed to higher first quarter costs in ArcBest's asset-based network.  In the upcoming months, these investments in labor and operational resources will be evaluated relative to on-going business levels in consideration of maintaining the service levels offered to ArcBest customers.  In line with our previously disclosed expectations, the Asset-Based business incurred approximately $1.7 million of first quarter costs related to increased investment in testing and development of technology initiatives.

Asset-Light2

Results of Operations

First Quarter 2019 Versus First Quarter 2018

  • Revenue of $226.5 million compared to $229.7 million.
  • Operating income of $3.2 million compared to operating income of $4.7 million.
  • Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") of $6.7 million compared to Adjusted EBITDA of $8.4 million.

Reduced revenue in the Asset-Light ArcBest segment, compared to last year's record first quarter, was the result of fewer shipments and a lower average revenue per shipment.  This year's more balanced truckload environment relative to last year's tighter market impacted account pricing and resulted in lower total net revenue in the ArcBest segment.  In particular, the effects of weaker demand and lower pricing for expedite services offset solid net revenue gains associated with truckload brokerage yield improvement and demand for our managed transportation solutions. Elevated costs in the Asset-Light ArcBest segment, that were the result of long-term strategic spending needed to build ArcBest's owner-operator and contract carrier capacity, resulted in a reduction in first quarter operating income of approximately $1 million versus last year.  At FleetNet, an increase in total events contributed to revenue growth while operating income was comparable with the prior year due to lower net revenue per event.

New FASB Lease Accounting Standard (ASC 842)
ArcBest adopted the new ASC 842 lease accounting standard in the first quarter of 2019, which resulted in the recognition of "Operating right-of-use assets" of $69 million and "Operating lease liabilities" of $72 million, a portion of which is in current liabilities, as of March 31, 2019. There was no impact on ArcBest's consolidated statements of operations or cash flows.

Closing Comments

"We are encouraged that customers recognize the value of the services we provide and streamlined access to help them solve their complex logistics challenges," McReynolds said. "Our managed transportation solutions in particular are being well-received as customers increasingly recognize our unique ability to analyze their supply chain needs and provide them with meaningful insights and optimal transportation choices."

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

Conference Call

ArcBest will host a conference call with company executives to discuss the 2019 first quarter results. The call will be on Friday, May 3rd at 9:30 a.m. EDT (8:30 a.m. CDT). Interested parties are invited to listen by calling (800) 926‑7431. Following the call, a recorded playback will be available through the end of the day on June 15, 2019. To listen to the playback, dial (800) 633-8284 or (402) 977-9140 (for international callers). The conference call ID for the playback is 21920420. The conference call and playback can also be accessed, through June 15, 2019, on ArcBest's website at arcb.com.

Call participants can submit questions this afternoon prior to the conference call by emailing them to ir@arcb.com.  On the call, responses will be provided to as many questions as possible in the time available.

About ArcBest

ArcBest® ARCB is a leading logistics company with creative problem solvers who deliver integrated solutions.  We'll find a way to deliver knowledge, expertise and a can-do attitude with every shipment and supply chain solution, household move or vehicle repair.  At ArcBest, we're More Than LogisticsSM.  For more information, visit arcb.com.

Forward-Looking Statements

Certain statements and information in this press release concerning results for the three months ended March 31, 2019 may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  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: a failure of our information systems, including disruptions or failures of services essential to our operations or upon which our information technology platforms rely, data breach, and/or cybersecurity incidents; untimely or ineffective development and implementation of new or enhanced technology; the loss or reduction of business from large customers; competitive initiatives and pricing pressures; relationships with employees, including unions, and our ability to attract and retain 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; the cost, timing, and performance of growth initiatives; 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; availability and cost of reliable third-party services; governmental regulations; environmental laws and regulations, including emissions-control regulations; union and nonunion employee wages and benefits, including changes in required contributions to multiemployer plans; 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; maintaining our intellectual property rights, brand, and corporate reputation; the loss of key employees or the inability to execute succession planning strategies; default on covenants of financing arrangements and the availability and terms of future financing arrangements; timing and amount of capital expenditures; self-insurance claims and insurance premium costs; the cost, integration, and performance of any recent or future acquisitions; 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; increased prices for and decreased availability of new revenue equipment, decreases in value of used revenue equipment, and higher costs of equipment-related operating expenses such as maintenance and fuel and related taxes; potential impairment of goodwill and intangible assets; greater than anticipated funding requirements for our nonunion defined benefit pension plan; seasonal fluctuations and adverse weather conditions; regulatory, economic, and other risks arising from our international business; antiterrorism and safety measures; and other financial, operational, and legal risks and uncertainties detailed from time to time in ArcBest'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 our projected results, please see our filings with 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.

Financial Data and Operating Statistics

The following tables show financial data and operating statistics on ArcBest® and its reportable segments.

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS











Three Months Ended 




March 31




2019


2018




(Unaudited)




($ thousands, except share and per share data)


REVENUES


$

711,839


$

700,001










OPERATING EXPENSES



703,248



687,276










OPERATING INCOME



8,591



12,725










OTHER INCOME (COSTS)








Interest and dividend income



1,478



526


Interest and other related financing costs



(2,882)



(2,059)


Other, net(1)



(591)



(2,201)





(1,995)



(3,734)










INCOME BEFORE INCOME TAXES



6,596



8,991










INCOME TAX PROVISION (BENEFIT)



1,708



(963)










NET INCOME


$

4,888


$

9,954










EARNINGS PER COMMON SHARE(2)








Basic


$

0.19


$

0.39


Diluted


$

0.18


$

0.37










AVERAGE COMMON SHARES OUTSTANDING








Basic



25,570,415



25,642,871


Diluted



26,512,349



26,596,376










CASH DIVIDENDS DECLARED PER COMMON SHARE


$

0.08


$

0.08


_____________________________

1)

Includes nonunion pension expense, including settlement, of $1.7 million and $2.0 million for the three months ended March 31, 2019 and 2018, respectively. Pension settlements related to termination of the nonunion defined benefit pension plan began in fourth quarter 2018 and are expected to be complete in second quarter 2019.

2) 

ArcBest uses the two-class method for calculating earnings per share. This method requires an allocation of dividends paid and a portion of undistributed net income (but not losses) to unvested restricted stock for calculating per share amounts.

 

Loading...
Loading...

ARCBEST CORPORATION

CONSOLIDATED BALANCE SHEETS











March 31


December 31




2019


2018




(Unaudited)


Note




($ thousands, except share data)


ASSETS








CURRENT ASSETS








Cash and cash equivalents


$

138,399


$

190,186


Short-term investments



116,225



106,806


Accounts receivable, less allowances (2019 - $6,655; 2018 - $7,380)



294,853



297,051


Other accounts receivable, less allowances (2019 - $456; 2018 - $806)



16,925



19,146


Prepaid expenses



31,064



25,304


Prepaid and refundable income taxes



4,610



1,726


Other



4,466



9,007


   TOTAL CURRENT ASSETS



606,542



649,226










PROPERTY, PLANT AND EQUIPMENT








Land and structures



340,764



339,640


Revenue equipment



856,370



858,251


Service, office, and other equipment



206,959



199,230


Software



142,062



138,517


Leasehold improvements



9,766



9,365





1,555,921



1,545,003


Less allowances for depreciation and amortization



932,945



913,815





622,976



631,188










GOODWILL



108,320



108,320


INTANGIBLE ASSETS, NET



67,820



68,949


OPERATING RIGHT-OF-USE ASSETS



68,737




DEFERRED INCOME TAXES



6,905



7,468


OTHER LONG-TERM ASSETS



78,357



74,080




$

1,559,657


$

1,539,231










LIABILITIES AND STOCKHOLDERS' EQUITY
















CURRENT LIABILITIES








Accounts payable


$

145,590


$

143,785


Income taxes payable



241



1,688


Accrued expenses



211,533



243,111


Current portion of long-term debt



48,809



54,075


Current portion of operating lease liabilities



17,678




Current portion of pension and postretirement liabilities



7,984



8,659


   TOTAL CURRENT LIABILITIES



431,835



451,318










LONG-TERM DEBT, less current portion



227,649



237,600


OPERATING LEASE LIABILITIES, less current portion



54,444




PENSION AND POSTRETIREMENT LIABILITIES, less current portion



31,695



31,504


OTHER LONG-TERM LIABILITIES



36,406



44,686


DEFERRED INCOME TAXES



55,873



56,441










STOCKHOLDERS' EQUITY








Common stock, $0.01 par value, authorized 70,000,000 shares; issued 2019: 28,685,313 shares; 2018: 28,684,779 shares



287



287


Additional paid-in capital



327,762



325,712


Retained earnings



504,225



501,389


   Treasury stock, at cost, 2019: 3,172,019 shares; 2018: 3,097,634 shares



(98,131)



(95,468)


Accumulated other comprehensive loss



(12,388)



(14,238)


   TOTAL STOCKHOLDERS' EQUITY



721,755



717,682




$

1,559,657


$

1,539,231



Note:  The balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

 

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS











Three Months Ended 




March 31




2019


2018




Unaudited




($ thousands)


 OPERATING ACTIVITIES








Net income


$

4,888


$

9,954


Adjustments to reconcile net income








to net cash provided by (used in) operating activities:








Depreciation and amortization



25,409



25,352


Amortization of intangibles



1,128



1,134


Pension settlement expense



1,356



654


Share-based compensation expense



2,058



1,870


Provision for losses on accounts receivable



112



445


Deferred income tax benefit



(584)



(2,749)


Gain on sale of property and equipment



(43)



(221)


Changes in operating assets and liabilities:








Receivables



3,931



(10,260)


Prepaid expenses



(5,760)



(2,587)


Other assets



4,589



2,732


Income taxes



(4,313)



1,938


Multiemployer pension fund withdrawal liability



(143)




Accounts payable, accrued expenses, and other liabilities



(35,999)



3,513


NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES



(3,371)



31,775










 INVESTING ACTIVITIES








Purchases of property, plant and equipment, net of financings



(15,543)



(7,177)


Proceeds from sale of property and equipment



1,039



1,050


Purchases of short-term investments



(13,790)



(4,410)


Proceeds from sale of short-term investments



4,998



6,245


Capitalization of internally developed software



(2,656)



(2,164)


NET CASH USED IN INVESTING ACTIVITIES



(25,952)



(6,456)










 FINANCING ACTIVITIES








Payments on long-term debt



(15,217)



(16,558)


Net change in book overdrafts



(2,524)



(2,572)


Payment of common stock dividends



(2,052)



(2,058)


Purchases of treasury stock



(2,663)



(201)


Payments for tax withheld on share-based compensation



(8)



(50)


NET CASH USED IN FINANCING ACTIVITIES



(22,464)



(21,439)










NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS



(51,787)



3,880


Cash and cash equivalents at beginning of period



190,186



120,772


CASH AND CASH EQUIVALENTS AT END OF PERIOD


$

138,399


$

124,652










 NONCASH INVESTING ACTIVITIES








Equipment financed


$


$

121


Accruals for equipment received


$

2,878


$

883


Lease liabilities arising from obtaining right-of-use assets


$

18,144


$










 

ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS




Three Months Ended 




March 31




2019



2018




Unaudited




($ thousands, except percentages)


REVENUES













Asset-Based


$

506,079





$

482,115

















ArcBest



173,204






181,933




FleetNet



53,259






47,759




Total Asset-Light



226,463






229,692

















Other and eliminations



(20,703)






(11,806)




Total consolidated revenues


$

711,839





$

700,001

















OPERATING EXPENSES













Asset-Based













Salaries, wages, and benefits


$

280,276


55.4

%


$

269,779


56.0

%

Fuel, supplies, and expenses



64,727


12.8




62,193


12.9


Operating taxes and licenses



12,398


2.4




11,756


2.4


Insurance



7,991


1.6




6,628


1.4


Communications and utilities



4,620


0.9




4,521


0.9


Depreciation and amortization



20,980


4.1




20,930


4.3


Rents and purchased transportation



49,912


9.9




46,133


9.6


Shared services(1)



50,712


10.0




45,607


9.4


Gain on sale of property and equipment



(34)





(133)



Other



882


0.2




1,299


0.3


Total Asset-Based



492,464


97.3

%



468,713


97.2

%














ArcBest













Purchased transportation



140,105


80.9

%



148,372


81.6

%

Supplies and expenses



2,774


1.6




3,230


1.8


Depreciation and amortization(2)



3,151


1.8




3,408


1.9


Shared services(1)



23,031


13.3




21,868


12.0


Other



2,413


1.4




1,881


1.0


Restructuring costs(3)







9






171,474


99.0

%



178,768


98.3

%

FleetNet



51,771


97.2

%



46,238


96.8

%

Total Asset-Light



223,245






225,006

















Other and eliminations(4)



(12,461)






(6,443)




Total consolidated operating expenses


$

703,248


98.8

%


$

687,276


98.2

%














OPERATING INCOME













Asset-Based


$

13,615





$

13,402

















ArcBest



1,730






3,165




FleetNet



1,488






1,521




Total Asset-Light



3,218






4,686

















Other and eliminations(4)



(8,242)






(5,363)




Total consolidated operating income


$

8,591





$

12,725




_____________________________

1) 

Shared services represent costs incurred to support all segments, including sales, pricing, customer service, marketing, capacity sourcing functions, human resources, financial services, information technology, legal, and other company-wide services.

2) 

Depreciation and amortization consists primarily of amortization of intangibles, including customer relationships, and software associated with acquired businesses.

3) 

Restructuring charges relate to the realignment of the Company's organizational structure as announced on November 3, 2016.

4)

"Other and eliminations" includes corporate costs for certain unallocated shared service costs which are not attributable to any segment, additional investments to offer comprehensive transportation and logistics services across multiple operating segments, and other investments in ArcBest technology and innovations.

ARCBEST CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

Non-GAAP Financial Measures

We report our financial results in accordance with generally accepted accounting principles ("GAAP"). However, management believes that certain non-GAAP performance measures and ratios utilized for internal analysis provide analysts, investors, and others the same information that we use internally for purposes of assessing our core operating performance and provides meaningful comparisons between current and prior period results, as well as important information regarding performance trends. The use of certain non-GAAP measures improves comparability in analyzing our performance because it removes the impact of items from operating results that, in management's opinion, do not reflect our core operating performance. Other companies may calculate non-GAAP measures differently; therefore, our calculation may not be comparable to similarly titled measures of other companies. Certain information discussed in the scheduled conference call could be considered non-GAAP measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results. These financial measures should not be construed as better measurements than operating income, operating cash flow, net income or earnings per share, as determined under GAAP.











Three Months Ended 




March 31




2019


2018




(Unaudited)




($ thousands, except per share data)


ArcBest Corporation - Consolidated
















Operating Income








Amounts on GAAP basis


$

8,591


$

12,725


Restructuring charges, pre-tax(1)





376


Non-GAAP amounts


$

8,591


$

13,101










Net Income








Amounts on GAAP basis


$

4,888


$

9,954


Restructuring charges, after-tax(1)





277


Nonunion pension expense, including settlement, after-tax(2)



1,287



1,520


Life insurance proceeds and changes in cash surrender value



(1,614)



(114)


Tax benefit from vested RSUs



(2)



(20)


Deferred tax adjustment for 2017 Tax Reform Act(3)





(2,591)


Impact of 2017 Tax Reform Act on current tax expense(3)





(59)


Alternative fuel tax credit(4)





(1,203)


Non-GAAP amounts


$

4,559


$

7,764










Diluted Earnings Per Share








Amounts on GAAP basis


$

0.18


$

0.37


Restructuring charges, after-tax(1)





0.01


Nonunion pension expense, including settlement, after-tax(2)



0.05



0.06


Life insurance proceeds and changes in cash surrender value



(0.06)




Tax benefit from vested RSUs






Deferred tax adjustment for 2017 Tax Reform Act(3)





(0.10)


Impact of 2017 Tax Reform Act on current tax expense(3)






Alternative fuel tax credit(4)





(0.05)


Non-GAAP amounts


$

0.17


$

0.29


_____________________________

1)

Restructuring charges for the three months ended March 31, 2018, which relate to the realignment of the Company's organizational structure as announced on November 3, 2016, were primarily recognized within "Other and eliminations."

2) 

Nonunion pension expense is presented as a non-GAAP adjustment with pension settlement expense, because expenses related to the plan have been excluded from the financial information management uses to make operating decisions, as the nonunion defined benefit pension plan was amended to terminate the plan with a termination date of December 31, 2017. Pension settlements related to the plan termination began in fourth quarter 2018 and are expected to be complete in second quarter 2019.

3) 

Impact on current or deferred income tax expense as a result of recognizing the tax effects of the Tax Cuts and Jobs Act ("2017 Tax Reform Act") that was signed into law on December 22, 2017.

4) 

Represents the amount of the alternative fuel tax credit related to the year ended December 31, 2017 which was recorded in first quarter 2018 due to the February 2018 retroactive reinstatement.


 

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued


Effective Tax Rate Reconciliation















ArcBest Corporation - Consolidated






































(Unaudited)



















($ thousands, except percentages)


Three Months Ended March 31, 2019



Operating

Income


Other

Income

(Costs)


Income Before

Income

Taxes


Income

Tax

Provision


Net

Income


Effective

Tax Rate















Amounts on GAAP basis


$

8,591


$

(1,995)


$

6,596


$

1,708


$

4,888


25.9

%

Nonunion pension expense, including settlement(1)





1,733



1,733



446



1,287


25.7


Life insurance proceeds and changes in cash surrender value





(1,614)



(1,614)





(1,614)



Tax benefit from vested RSUs









2



(2)



Non-GAAP amounts


$

8,591


$

(1,876)


$

6,715


$

2,156


$

4,559


32.1

%






















Three Months Ended March 31, 2018



Operating

Income


Other

Income

(Costs)


Income Before

Income

Taxes


Income Tax

Provision

(Benefit)


Net

Income


Effective Tax

(Benefit) Rate















Amounts on GAAP basis


$

12,725


$

(3,734)


$

8,991


$

(963)


$

9,954


(10.7)

%

Nonunion pension expense, including settlement(1)





2,046



2,046



526



1,520


25.7


Life insurance proceeds and changes in cash surrender value





(114)



(114)





(114)



Tax benefit from vested RSUs









20



(20)



Deferred tax adjustment for 2017 Tax Reform Act(2)









2,591



(2,591)



Impact of 2017 Tax Reform Act on current tax expense(2)









59



(59)



Restructuring charges(3)



376





376



99



277


26.3


Alternative fuel tax credit(4)









1,203



(1,203)



Non-GAAP amounts


$

13,101


$

(1,802)


$

11,299


$

3,535


$

7,764


31.3

%

_____________________________

1)

Nonunion pension expense is presented as a non-GAAP adjustment with pension settlement expense, because expenses related to the plan have been excluded from the financial information management uses to make operating decisions, as the nonunion defined benefit pension plan was amended to terminate the plan with a termination date of December 31, 2017. Pension settlements related to the plan termination began in fourth quarter 2018 and are expected to be complete in second quarter 2019.

2)

Impact on current or deferred income tax expense as a result of recognizing the tax effects of the Tax Cuts and Jobs Act ("2017 Tax Reform Act") that was signed into law on December 22, 2017.

3)

Restructuring charges relate to the realignment of the Company's organizational structure as announced on November 3, 2016.

4)

Represents the amount of the alternative fuel tax credit related to the year ended December 31, 2017 which was recorded in first quarter 2018 due to the February 2018 retroactive reinstatement.

ARCBEST CORPORATION
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 businesses, which are significant expenses resulting from strategic decisions rather than core daily operations. Additionally, Adjusted EBITDA is a primary component of the financial covenants contained in our credit agreement.



Three Months Ended 




March 31




2019


2018




(Unaudited)


ArcBest Corporation - Consolidated Adjusted EBITDA


($ thousands)





Net Income


$

4,888


$

9,954


Interest and other related financing costs



2,882



2,059


Income tax provision (benefit)



1,708



(963)


Depreciation and amortization



26,537



26,486


Amortization of share-based compensation



2,058



1,870


Amortization of net actuarial losses of benefit plans and pension settlement expense(1)



1,754



1,528


Restructuring charges(2)





376


Consolidated Adjusted EBITDA


$

39,827


$

41,310


_____________________________

1)

Includes pre-tax settlement expense related to the nonunion pension plan of $1.4 million and $0.7 million for the three months ended March 31, 2019 and 2018, respectively. Pension settlements related to the plan termination began in fourth quarter 2018 and are expected to be complete in second quarter 2019.

2)

Restructuring charges relate to the realignment of the Company's organizational structure as announced on November 3, 2016.

 











Three Months Ended 




March 31




2019


2018


Asset-Light Adjusted EBITDA


(Unaudited)




($ thousands, except percentages)






ArcBest








Operating Income


$

1,730


$

3,165


Depreciation and amortization(3)



3,151



3,408


Restructuring charges(4)





9


Adjusted EBITDA


$

4,881


$

6,582






FleetNet




Operating Income


$

1,488


$

1,521


Depreciation and amortization



317



279


Adjusted EBITDA


$

1,805


$

1,800






Total Asset-Light








Operating Income


$

3,218


$

4,686


Depreciation and amortization(3)



3,468



3,687


Restructuring charges(4)





9


Adjusted EBITDA


$

6,686


$

8,382


_____________________________

3)

Depreciation and amortization consists primarily of amortization of intangibles and software associated with acquired businesses.

4)

Restructuring charges relate to the realignment of the Company's organizational structure as announced on November 3, 2016.

ARCBEST CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued

Non-GAAP Net Revenue
Management uses net revenue, defined as revenues less purchased transportation costs, as a key performance measure of our ArcBest segment which primarily sources transportation services from third-party providers. Non-GAAP net revenue margin for the ArcBest segment is calculated as net revenue divided by revenues.













Three Months Ended 




March 31




2019


2018


% Change




(Unaudited)


ArcBest Segment


($ thousands)





Revenues


$

173,204


$

181,933


(4.8%)


Less purchased transportation



140,105



148,372


(5.6%)


Non-GAAP net revenue


$

33,099


$

33,561


(1.4%)












Non-GAAP net revenue margin



19.1%



18.4%




 

ARCBEST CORPORATION

OPERATING STATISTICS




Three Months Ended 




March 31




2019


2018


% Change




(Unaudited)


Asset-Based




















Workdays



63.0



63.5














Billed Revenue(1) / CWT


$

34.66


$

32.10


8.0%












Billed Revenue(1) / Shipment


$

418.23


$

412.14


1.5%












Shipments



1,210,787



1,183,256


2.3%












Shipments / Day



19,219



18,634


3.1%












Tonnage (Tons)



730,409



759,556


(3.8%)












Tons / Day



11,594



11,962


(3.1%)












Average Length of Haul (Miles)



1,023



1,035


(1.2%)












_____________________________

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 




March 31, 2019




(Unaudited)


ArcBest(2)










Revenue / Shipment



(6.6%)







Shipments / Day



(1.0%)


_____________________________

2)

Statistical data related to managed transportation services transactions are not included in the presentation of operating statistics for the ArcBest segment.

 



Investor Relations Contact: David Humphrey

Media Contact: Kathy Fieweger

Title: Vice President – Investor Relations

Phone: 479-719-4358

Phone: 479-785-6200 

Email: kfieweger@arcb.com

Email: dhumphrey@arcb.com 


 

SOURCE ArcBest

Loading...
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsPress ReleasesConference Call AnnouncementsTransportation/Trucking/Railroad
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...