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): June 7, 2024 (
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Emerging growth company
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ITEM 7.01 – REGULATION FD DISCLOSURE
ArcBest® (Nasdaq: ARCB) is providing an update on the most recent information related to its second quarter 2024 financial results and business trends.
Summary Operating and Financial Impacts
| ● | Statistics for May 2024 have not been finalized and are preliminary. |
| ● | There were 22.0 workdays in April 2024 and 19.5 workdays in April 2023. |
| ● | There were 22.0 workdays in May 2024 and May 2023. |
| ● | Quarter to date 2024 compares April and May 2024 to April and May 2023. |
Asset-Based Operating Segment
Year-over-Year Monthly Business Trends:
| April 2024 | May 2024 | QTD 2024 | |||||||
Billed Revenue/Day(1) | -2.2 | % | -2 | % | -2 | % | ||||
Total Tons/Day |
| -21.5 | % |
| -22 | % |
| -22 | % | |
Total Shipments/Day |
| -6.6 | % |
| -3 | % |
| -5 | % | |
Total Billed Revenue/CWT | +24.6 | % | +26 | % | +25 | % | ||||
Total Billed Revenue/Shipment | +4.7 | % | +2 | % | +3 | % | ||||
Total Weight/Shipment | -16.0 | % | -19 | % | -18 | % | ||||
| 1) | 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. |
In May 2024, Asset-Based total shipments and tonnage declined, primarily due to strategic price adjustments implemented on LTL transactional business. These adjustments led to a reduction in heavier, transactional shipments, as core shipments increased.
Daily core shipments and tonnage for May 2024 saw a year-over-year increase of approximately 14% and 11%, respectively. This compares to the year-over-year increases of 13% and 9%, respectively, for April 2024.
The rise in revenue per hundredweight in May 2024 can be attributed to higher prices on transactional business and an increased proportion of core business, which typically has a higher revenue per hundredweight.
There was a year-over-year decrease in weight per shipment in May 2024, primarily due to a reduction in transactional shipments, which are generally heavier. The weight per shipment for core business has also been lower than previous year levels, reflecting the current softer freight environment.
When comparing the months of April and May 2024 to the first full quarter of 2024, the segment saw a low-single-digit percentage increase in revenue per day, tons per day, shipments per day, revenue per hundredweight, and revenue per shipment while weight per shipment saw a marginal decrease.
Over the past four years, the average sequential change in the Asset-Based operating ratio from the first quarter to the second quarter has been an improvement of approximately 200-300 basis points.
Asset-Light Operating Segment
| April 2024 | May 2024 | QTD 2024 | ||||||||
Revenue/Day (Year-over-Year) | -12.4 | % | -5 | % | -8 | % | |||||
Shipments/Day (Year-over-Year) | +8.5 | % | +11 | % | +10 | % | |||||
Revenue/Shipment (Year-over-Year) | -19.2 | % | -14 | % | -17 | % | |||||
Purchased Transportation Expense as a % of Revenue |
| 84.8 | % |
| 86 | % |
| 85 | % | ||
In May 2024, ArcBest's Asset-Light business saw an increase in shipments per day offset by a decrease in revenue per shipment. The decrease in revenue per shipment is attributable to softer freight market conditions and shipment growth in the segment's Managed business, which has smaller shipment sizes and lower revenue-per-shipment levels.
Purchased transportation expenses as a percentage of revenue increased in May 2024, a result of tighter capacity associated with the Department of Transportation’s inspection week.
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 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 7, 2024 | /s/ Michael R. Johns | |
Michael R. Johns | |||
Chief Legal Officer | |||
and Corporate Secretary | |||
Document and Entity Information |
Jun. 07, 2024 |
|---|---|
| Cover [Abstract] | |
| Document Type | 8-K |
| Document Period End Date | Jun. 07, 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 |