June 30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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): March 8, 2024 (
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.
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Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐
ITEM 7.01 – REGULATION FD DISCLOSURE
ArcBest® (Nasdaq: ARCB) is providing an update on the most recent information related to its first quarter 2024 financial results and business trends.
Asset-Based Operating Segment
Year-over-Year Monthly Business Trends:
| January 2024(1) |
| February 2024(2) |
| |||
Billed Revenue/Day(3) | -7.3 | % | -3 | % | |||
Total Tons/Day |
| -18.0 | % |
| -14 | % | |
Total Shipments/Day |
| -9.4 | % |
| -4 | % | |
Total Billed Revenue/CWT | +12.9 | % |
| +13 | % | ||
Total Billed Revenue/Shipment | +2.3 | % |
| +2 | % | ||
Total Weight/Shipment | -9.5 | % |
| -10 | % | ||
| 1) | January 2024 metrics represent actual results. There were 22.0 workdays in January 2024 and 21.0 workdays in January 2023. |
| 2) | February 2024 metrics have not been finalized and are preliminary. There were 21.0 workdays in February 2024 and 20.0 workdays in February 2023. |
| 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. |
Despite the softer freight environment, core shipments and tonnage for February 2024 increased on a year-over-year basis by approximately 13% and 8%, respectively, an improvement compared to January 2024’s year-over-year results. Total shipments and tonnage declined, primarily due to strategic price adjustments on transactional LTL business, which reduced shipments but improved service and operating results. In addition, smaller customer orders and changes in freight profile and business mix compared to last year have resulted in a lower average weight per shipment.
Excluding periods affected by the pandemic, the average sequential change in the segment’s operating ratio from the fourth quarter to the first quarter over the past ten years has been an increase of approximately 400 basis points, with larger increases occurring during declining economic environments. Pricing discipline remains strong, and we continue to benefit from our cost reduction efforts and productivity improvements. While most of our February metrics have shown improvement on a year-over-year basis when compared to January, the freight environment remains soft. We are well-positioned to capitalize on opportunities as the freight market improves and demand increases.
Asset-Light Operating Segment
| January 2024(1) |
| February 2024(2) |
| |||
Revenue/Day (Year-over-Year) | -15.0 | % | -10 | % | |||
Purchased Transportation Expense as a % of Revenue |
| 88.9 | % |
| 86 | % | |
Shipments/Day (Year-over-Year) | +11.0 | % | +13 | % | |||
Revenue/Shipment (Year-over-Year) | -23.5 | % | -20 | % | |||
| 1) | January 2024 metrics represent actual results. There were 22.0 workdays in January 2024 and 21.0 workdays in January 2023. |
| 2) | February 2024 metrics have not been finalized and are preliminary. There were 21.0 workdays in February 2024 and 20.0 workdays in February 2023. |
While shipments have increased, year-over-year revenue levels are lower, primarily due to a decrease in average revenue per shipment as a result of softer market conditions. In January, purchased transportation expense represented a higher percentage of revenue than usual because of more limited carrier capacity following the holiday season combined with the impact of winter storms.
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 a widespread outbreak of an illness or disease 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, but not limited to, acts of war or terrorism, or military conflicts; data privacy breaches, cybersecurity incidents, and/or failures of our information systems, including disruptions or failures of services essential to our operations or upon which our information technology platforms rely; interruption or failure of third-party software or information technology systems or licenses; untimely or ineffective development and implementation of, or failure to realize the potential benefits associated with, new or enhanced technology or processes, including our customer pilot offering of Vaux; the loss or reduction of business from large customers or an overall reduction in our customer base; the timing and performance of growth initiatives and the ability to manage our cost structure; the cost, integration, and performance of any recent or future acquisitions and the inability to realize the anticipated benefits of the acquisition within the expected time period or at all; unsolicited takeover proposals, proxy contests, and other proposals/actions by activist investors; maintaining our corporate reputation and intellectual property rights; nationwide or global disruption in the supply chain resulting in increased volatility in freight volumes; competitive initiatives and pricing pressures; increased prices for and decreased availability of equipment, including 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 upskill 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; our ability to generate sufficient cash from operations to support significant ongoing capital expenditure requirements and other business initiatives; self-insurance claims, insurance premium costs, and loss of our ability to self-insure; potential impairment of long-lived assets and 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 and higher interest rates; seasonal fluctuations, adverse weather conditions, natural disasters, and climate change; 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 (“SEC”).
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 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: | March 8, 2024 | /s/ J. Matthew Beasley | |
J. Matthew Beasley | |||
Chief Financial Officer | |||
Document and Entity Information |
Mar. 08, 2024 |
|---|---|
| Cover [Abstract] | |
| Document Type | 8-K |
| Document Period End Date | Mar. 08, 2024 |
| Entity Registrant Name | ARCBEST CORPORATION |
| Entity Incorporation, State or Country Code | DE |
| Entity File Number | 0-19969 |
| Entity Tax Identification Number | 71-0673405 |
| Entity Address, Address Line One | 8401 McClure Drive |
| Entity Address, City or Town | Fort Smith |
| Entity Address, State or Province | AR |
| Entity Address, Postal Zip Code | 72916 |
| City Area Code | 479 |
| Local Phone Number | 785-6000 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Title of 12(b) Security | Common Stock $0.01 Par Value |
| Trading Symbol | ARCB |
| Security Exchange Name | NASDAQ |
| Entity Emerging Growth Company | false |
| Entity Central Index Key | 0000894405 |
| Amendment Flag | false |