June 30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 2, 2022 (
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ITEM 7.01 – REGULATION FD DISCLOSURE
ArcBest® (Nasdaq: ARCB) is providing its regular monthly update on the most recent information related to its second quarter 2022 financial results and business trends.
ArcBest Consolidated
On a preliminary basis, May 2022 consolidated revenues grew approximately 38% on a per day basis compared to May 2021, reflecting business momentum resulting from continued customer demand for our logistics solutions and revenue growth in all three operating segments. The consolidated revenue growth in May 2022 benefited from the November 1, 2021 acquisition of MoLo Solutions, LLC (“MoLo”).
Asset-Based Operating Segment
For the months of April 2022 and May 2022 compared to the same prior year periods:
April 2022(1) |
| May 2022(2) |
| |||
Billed Revenue/Day(3) | +23.5 | % | +24 | % | ||
Total Tons/Day |
| +3.5 | % |
| +6 | % |
Total Shipments/Day |
| +1.5 | % |
| +4 | % |
Total Billed Revenue/CWT | +19.3 | % |
| +17 | % | |
Total Billed Revenue/Shipment | +21.6 | % |
| +20 | % | |
Total Weight/Shipment | +1.9 | % |
| +2 | % | |
| 1) | April 2022 metrics represent actual results. There were 20.5 workdays in April 2022 and 21.5 workdays in April 2021. |
| 2) | May 2022 metrics have not been finalized and are preliminary. There were 21 workdays in May 2022 and 20 workdays in May 2021. |
| 3) | Revenue for undelivered freight is deferred for financial statement purposes in accordance with the Asset-Based segment revenue recognition policy. Billed revenue per day has not been adjusted for the portion of revenue deferred for financial statement purposes. |
For reference, April 2021 total tonnage per day increased 28.9% versus April 2020 and May 2021 total tonnage per day increased 21.3% versus May 2020. April 2020 and May 2020 were impacted by the pandemic.
Asset-Light ArcBest Segment (not including FleetNet)
For the months of April 2022 and May 2022:
April 2022(1) |
| May 2022(2) |
| |||
Revenue/Day year-over-year change | +122.2 | % | +82 | % | ||
Purchased Transportation Expense as a % of Revenue |
| 81.3 | % |
| 82 | % |
| 1) | April 2022 metrics represent actual results. There were 20.5 workdays in April 2022 and 21.5 workdays in April 2021. |
| 2) | May 2022 metrics have not been finalized and are preliminary. There were 21 workdays in May 2022 and 20 workdays in May 2021. |
Customer demand drove year-over-year revenue growth in our Asset-Light service lines except for international. Year-over-year growth rates reflect some general softening in the spot market. Comparisons to prior year metrics continue to be affected by the November 1, 2021 acquisition of MoLo.
The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: Certain statements and information in this report may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding (i) our expectations about our intrinsic value or our prospects for growth and value creation and (ii) our financial outlook, position, strategies, goals, and expectations. Terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “foresee,” “intend,” “may,” “plan,” “predict,” “project,” “scheduled,” “should,” “would,” and similar expressions and the negatives of such terms are intended to identify forward-looking statements. These statements are based on management’s beliefs, assumptions, and expectations based on currently available information, are not guarantees of future performance, and involve certain risks and uncertainties (some of which are beyond our control). Although we believe that the expectations reflected in these forward-looking statements are reasonable as and when made, we cannot provide assurance that our expectations will prove to be correct. Actual outcomes and results could materially differ from what is expressed, implied, or forecasted in these statements due to a number of factors, including, but not limited to: the effects of widespread outbreak of an illness or disease, including the COVID-19 pandemic, or any other public health crisis, as well as regulatory measures implemented in response to such events; external events which may adversely affect us or the third parties who provide services for us, for which our business continuity plans may not adequately prepare us, including acts of war or terrorism or military conflicts; 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; interruption or failure of third-party software or information technology systems or licenses; untimely or ineffective development and implementation of, or failure to realize potential benefits associated with, new or enhanced technology or processes, including the pilot test program at ABF Freight; the loss or reduction of business from large customers; the ability to manage our cost structure, and the timing and performance of growth initiatives; the cost, integration, and performance of any recent or future acquisitions, including the acquisition of MoLo Solutions, LLC, and the inability to realize the anticipated benefits of the acquisition within the expected time period or at all; market fluctuations and interruptions affecting the price of our stock or the price or timing of our share repurchase programs; maintaining our corporate reputation and intellectual property rights; nationwide or global disruption in the supply chain increasing volatility in freight volumes; competitive initiatives and pricing pressures; 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, fuel, and related taxes; availability of fuel, the effect of volatility in fuel prices and the associated changes in fuel surcharges on securing increases in base freight rates, and the inability to collect fuel surcharges; relationships with employees, including unions, and our ability to attract, retain, and develop employees; unfavorable terms of, or the inability to reach agreement on, future collective bargaining agreements or a workforce stoppage by our employees covered under ABF Freight’s collective bargaining agreement; union employee wages and benefits, including changes in required contributions to multiemployer plans; availability and cost of reliable third-party services; our ability to secure independent owner operators and/or operational or regulatory issues related to our use of their services; litigation or claims asserted against us; governmental regulations; environmental laws and regulations, including emissions-control regulations; default on covenants of financing arrangements and the availability and terms of future financing arrangements; self-insurance claims and insurance premium costs; potential impairment of goodwill and intangible assets; general economic conditions and related shifts in market demand that impact the performance and needs of industries we serve and/or limit our customers’ access to adequate financial resources; increasing costs due to inflation; seasonal fluctuations and adverse weather conditions; and other financial, operational, and legal risks and uncertainties detailed from time to time in ArcBest Corporation’s public filings with the Securities and Exchange Commission (the “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 the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events, or otherwise.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ARCBEST CORPORATION | |||
(Registrant) | |||
Date: | June 2, 2022 | /s/ Michael R. Johns | |
Michael R. Johns | |||
Vice President – General Counsel | |||
and Corporate Secretary | |||