Financial Data and Key Metrics Changes - In Q3 2021, ArcBest achieved record quarterly revenue exceeding $1 billion, reflecting a 28% increase year-over-year [18] - Non-GAAP operating income more than doubled to $96 million, with adjusted earnings per diluted share growing 112% to $2.59 [18] - Adjusted EBITDA for the trailing 12 months ended September 30, 2021, was $389 million, indicating strong cash flow generation [15] Business Line Data and Key Metrics Changes - Asset-Based revenue was $691 million, a 21% increase year-over-year, with an operating ratio improvement of 570 basis points [19] - Asset-Light businesses saw a 39% revenue increase compared to the prior year quarter, with operating income rising to $11.5 million [21] - The acquisition of MoLo Solutions is expected to enhance the revenue mix and scale of truckload brokerage services [11][12] Market Data and Key Metrics Changes - The domestic transportation management market is valued at $91 billion and is expected to grow, providing significant opportunities for ArcBest [11] - Strong customer demand in the core LTL business was noted, with double-digit increases in tonnage and shipments [20] Company Strategy and Development Direction - ArcBest is focused on a three-point strategy to drive revenue growth and improve profitability, emphasizing agility and customer-centric solutions [7][8] - The company plans to increase capital returns to shareholders through a $100 million accelerated share repurchase program [10] - Continued investment in technology and innovation is aimed at optimizing cost structures and enhancing service delivery [8][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong pricing environment and customer retention, indicating potential for continued growth [28][29] - The company is committed to expanding its asset-based capacity despite supply chain challenges, with a long-term capital expenditure plan of $225 million to $250 million for 2022 [17][48] - Management highlighted the importance of the MoLo acquisition in accelerating growth and enhancing service offerings [12][26] Other Important Information - ArcBest's ESG report was released, showcasing progress in sustainability and corporate governance initiatives [22] - The company is committed to diversity, equity, and inclusion efforts, as well as community involvement [22] Q&A Session Summary Question: Sequential outlook between Q3 and Q4 - Management noted historical trends of a 200 basis point increase in operating ratio from Q3 to Q4 but expressed optimism about customer retention and pricing environment [27][28] Question: Share repurchase timing - The existing $42 million share repurchase program will resume after the completion of the accelerated share repurchase [30][31] Question: Progress on innovative technology - Management discussed ongoing pilot programs for new mobile platform technology and its expected benefits for operational efficiency [32][34] Question: Operating margin potential - Management indicated that a mid-80s operating ratio is achievable, supported by strong customer demand and effective yield management [44][45] Question: Capacity expansion outlook - Management confirmed plans for capacity expansion, with some delays due to supply chain issues but targeting mid-single-digit percentage growth by the end of 2022 [47][48] Question: Expedited business performance - Management highlighted strong demand in the expedited business, noting it as a solution for significant supply chain challenges [50][51] Question: Future outlook for ArcBest - Management emphasized the growth potential in the $330 billion market and the importance of the MoLo acquisition in capturing more truckload business [53][54]

Summary of ArcBest Corporation's Acquisition of MoLo Solutions Conference Call Company and Industry - **Company**: ArcBest Corporation (NASDAQ:ARCB) - **Acquisition Target**: MoLo Solutions, a rapidly growing truckload brokerage based in Chicago - **Industry**: Transportation and Logistics Core Points and Arguments 1. **Acquisition Announcement**: ArcBest announced a definitive agreement to acquire MoLo Solutions, which is expected to significantly enhance growth and value creation for ArcBest by expanding its truckload brokerage services [7][16][27] 2. **Financial Performance**: ArcBest reported a preliminary expected consolidated revenue growth of 32% through Q3 2021, with asset-based revenue growth of 24% and 55% growth in the asset-light segment [8][9] 3. **Strong Financial Position**: As of mid-2021, ArcBest had a cash balance of nearly $425 million and total liquidity exceeding $660 million, positioning the company well for the acquisition [9][10] 4. **Employee Growth**: ArcBest added over 1,000 new employees in 2021, contributing to growth in its asset-light business [10] 5. **Strategic Rationale**: The acquisition is expected to nearly double ArcBest's capacity and enhance its ability to serve larger customers, thereby improving revenue growth in the truckload brokerage segment [11][12][13] 6. **Market Opportunity**: ArcBest operates in a market with $330 billion of available spend, with identified opportunities exceeding $3 billion among current customers [13][14] 7. **Digital Capabilities**: The combination of ArcBest and MoLo is expected to enhance digital business capabilities, providing better access to customer shipments and improving operational efficiencies [14][30][31] 8. **Earnings Accretion**: MoLo is expected to generate earnings accretion by Q4 2022, with a target of $25 million in annual adjusted EBITDA by 2023 [16][22] 9. **Integration Plans**: The integration of MoLo into ArcBest's operations will focus on creating a seamless solution for customers and carriers, leveraging MoLo's existing technology platform [41][44] 10. **Revenue Mix Improvement**: The acquisition is projected to increase ArcBest's asset-light revenue mix by 10 percentage points to 44% [25] Additional Important Content 1. **MoLo's Background**: Founded in 2017, MoLo has rapidly grown to become one of the fastest-growing truckload brokerages, recognized for its customer service and operational excellence [17][18] 2. **Leadership Retention**: MoLo's CEO and President will remain with ArcBest, ensuring continuity in leadership and operational strategy [18] 3. **Synergy Potential**: The acquisition is expected to create significant synergies in carrier procurement and cross-selling opportunities, enhancing overall service offerings [22][52] 4. **Contract vs. Spot Business**: MoLo's business is primarily contract-based (50-60%), compared to ArcBest's lower contract percentage (10-20%), which is expected to improve overall margins [70][71] 5. **Long-term Strategy**: The acquisition aligns with ArcBest's long-term strategy to balance asset-light and asset-based revenue, enhancing overall profitability and shareholder value [27][33] This summary encapsulates the key points discussed during the conference call regarding ArcBest's acquisition of MoLo Solutions, highlighting the strategic importance, financial implications, and operational synergies expected from the transaction.

Financial Data and Key Metrics Changes - The second quarter 2021 consolidated revenues grew 51.3% to $949 million compared to $627 million in the same period last year [10] - Net income for Q2 2021 was $2.27 per diluted share, up from $0.61 per share in Q2 2020 [10] - Adjusted earnings per diluted share increased 194% to $1.97 compared to $0.67 in the same period last year [10] - The company ended Q2 2021 with unrestricted cash and short-term investments of $423 million and total debt of $238 million, resulting in a cash net of debt of $185 million, an increase of $100 million since the beginning of the year [11][12] Business Line Data and Key Metrics Changes - Asset-Based revenue was $653 million, with an average daily increase of 42% compared to last year [17] - The Asset-Based operating ratio improved 440 basis points sequentially versus Q1 2021, with a 600 basis-point improvement when adjusting for a large property sale gain [17] - Asset-Light businesses saw a revenue increase of 67% versus last year's second quarter, with operating income rising to $16.3 million from $2.1 million last year [21] Market Data and Key Metrics Changes - The company experienced strong customer demand, resulting in shipment and tonnage growth, with daily total tonnage per day increasing 22.7% versus last year's second quarter [17] - Total billed revenue per hundredweight on Asset-Based shipments increased 15.4%, influenced by higher fuel surcharges [18] - Preliminary business trends for July indicated daily average tonnage and shipments were above the prior year month by percentages in the mid-single digits [18] Company Strategy and Development Direction - The company is focused on increasing hiring and recruiting efforts, optimizing the ABF network, and investing in technology to enhance customer experience [7][8] - Investments in facility upgrades and expansions are prioritized, with an expected capital expenditure range of $160 million to $170 million for the year [13][14] - The company aims to leverage its integrated logistics solutions to strengthen customer relationships and improve retention [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities due to strong customer demand and a positive pricing environment [5][6] - The company is adapting to supply chain disruptions and is focused on providing holistic solutions to customers [6][23] - Management highlighted the importance of agility and responsiveness to evolving customer needs as a key to long-term success [23][24] Other Important Information - The company is committed to enhancing its environmental, social, and governance (ESG) initiatives, including developing a diversity, equity, and inclusion strategy [24][25] - The company has a strong focus on employee well-being and community involvement, recognizing the importance of its workforce in driving success [25] Q&A Session Summary Question: Insights on the U-Pack business profitability compared to traditional core network business - Management noted that U-Pack has historically been a spot-quoted business and emphasized the strength in core LTL business, which is experiencing good demand [27][29] Question: Future capital expenditures and facility upgrades - Management indicated that the $50 million to $75 million in additional capital expenditures would primarily focus on the Asset-Based network for upgrades and expansions [32][34] Question: Sustainability of operating ratio levels - Management expressed confidence in maintaining strong operating ratios due to strategic direction and customer demand [36][38] Question: Capacity additions and long-term demand outlook - Management acknowledged potential secular changes in LTL demand and emphasized the importance of reliability in service [43][44] Question: Capital allocation strategy and share buyback flexibility - Management outlined a balanced approach to capital allocation, focusing on capital expenditures, dividends, and potential acquisitions [45][47] Question: Update on technology and efficiency initiatives - Management is optimistic about pilot projects in Kansas City and Indianapolis, with plans for broader rollout pending successful testing [48][49] Question: Customer demand and inventory management - Management highlighted strong customer conversations and the need for holistic logistics solutions amid supply chain disruptions [52][54] Question: Labor availability and hiring challenges - Management reported progress in hiring, with a focus on recruiting military veterans and addressing elevated levels of purchased transportation [56][58] Question: Tonnage trends and core LTL business performance - Management noted that while tonnage per shipment is trending down due to larger shipments, core LTL business is seeing strength in revenue and customer retention [60][64]

ArcBest Corporation (NASDAQ:ARCB) Q1 2021 Earnings Conference Call May 4, 2021 9:30 AM ET Company Participants David Humphrey – Vice President of Investor Relations Judy McReynolds – Chairman, President and Chief Executive Officer David Cobb – Chief Financial Officer Conference Call Participants Chris Wetherbee – Citi Jack Atkins – Stephens Jason Seidl – Cowen Ken Hoexter – Bank of America Scott Group – Wolfe Research Todd Fowler – KeyBanc Capital Markets Jordan Alliger – Goldman Sachs Stephanie Benjamin – ...

ArcBest Corporation (NASDAQ:ARCB) Q4 2020 Results Earnings Conference Call February 2, 2021 9:30 AM ET Company Participants David Humphrey - Vice President, Investor Relations Judy McReynolds - Chairman, President and CEO David Cobb - Chief Financial Officer Conference Call Participants Jason Seidl - Cowen Chris Wetherbee - Citi David Ross - Stifel Todd Fowler - KeyBanc Capital Markets Jack Atkins - Stephens Scott Group - Wolfe Research Ken Hoexter - Bank of America Stephanie Benjamin - Truist Jordan Allige ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited consolidated balance sheets, statements of operations, cash flows, and stockholders' equity Consolidated Balance Sheet Highlights (Unaudited) | Account | Sep 30, 2020 ($ thousands) | Dec 31, 2019 ($ thousands) | | :--- | :--- | :--- | | **Total Current Assets** | 730,240 | 664,402 | | **Total Assets** | 1,746,231 | 1,651,207 | | **Total Current Liabilities** | 497,516 | 444,277 | | **Total Liabilities** | 943,592 | 888,164 | | **Total Stockholders' Equity** | 802,639 | 763,043 | Consolidated Statement of Operations Highlights (Unaudited) | Metric | Three Months Ended Sep 30, 2020 ($ thousands) | Three Months Ended Sep 30, 2019 ($ thousands) | Nine Months Ended Sep 30, 2020 ($ thousands) | Nine Months Ended Sep 30, 2019 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | 794,980 | 787,563 | 2,123,749 | 2,270,892 | | **Operating Income** | 39,782 | 31,208 | 68,026 | 74,999 | | **Net Income** | 29,404 | 16,270 | 47,186 | 45,534 | | **Diluted EPS** | $1.11 | $0.62 | $1.79 | $1.72 | Consolidated Statement of Cash Flows Highlights (Unaudited, Nine Months Ended) | Cash Flow Activity | Sep 30, 2020 ($ thousands) | Sep 30, 2019 ($ thousands) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | 151,266 | 138,013 | | **Net Cash from Investing Activities** | 12,539 | (90,542) | | **Net Cash from Financing Activities** | (98,069) | (53,819) | | **Net Increase (Decrease) in Cash** | 65,736 | (6,348) | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides details on business segments, accounting policies, debt, and the impact of the COVID-19 pandemic - The company operates through three reportable segments, with the **Asset-Based segment accounting for approximately 69% of total revenues** for the nine months ended September 30, 2020[15](index=15&type=chunk)[16](index=16&type=chunk) - Effective January 1, 2020, the company adopted ASC Topic 326, resulting in a **$0.2 million decrease to retained earnings** due to a change in credit loss methodology[20](index=20&type=chunk)[23](index=23&type=chunk) Long-Term Debt Composition ($ thousands) | Debt Instrument | Sep 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Credit Facility | 70,000 | 70,000 | | Accounts receivable securitization | — | 40,000 | | Notes payable | 221,914 | 213,504 | | **Total Long-Term Debt** | **291,924** | **323,519** | Segment Revenues (Nine Months Ended Sep 30, $ thousands) | Segment | 2020 | 2019 | | :--- | :--- | :--- | | Asset-Based | 1,537,639 | 1,631,348 | | ArcBest | 533,536 | 554,135 | | FleetNet | 149,424 | 158,957 | | **Total Consolidated Revenues** | **2,123,749** | **2,270,892** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=42&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses financial performance, the significant impact of the COVID-19 pandemic, and segment results [COVID-19 Impact and Business Response](index=42&type=section&id=COVID-19%20Impact%20and%20Business%20Response) Details the pandemic's negative Q2 2020 impact, a strong Q3 recovery, and the company's cost-saving responses - Consolidated revenues **declined 6.5%** for the nine months ended Sep 30, 2020, but **increased 0.9% YoY in Q3 2020**, indicating a significant business recovery[107](index=107&type=chunk)[109](index=109&type=chunk) - To preserve financial flexibility, the company borrowed **$180.0 million** from its credit facility and **$45.0 million** from its securitization program, which were fully repaid in Q3 2020[114](index=114&type=chunk) - Cost reduction actions in April 2020, including a **15% salary reduction** and suspension of the 401(k) match, were reversed in Q3 2020 due to positive business trends[117](index=117&type=chunk) [Results of Operations](index=49&type=section&id=Results%20of%20Operations) Details segment and consolidated operating income, highlighting Q3 2020 improvements driven by cost management Segment Operating Income ($ thousands) | Segment | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | **Asset-Based** | 36,646 | 31,722 | 70,922 | 81,515 | | **Asset-Light (Total)** | 5,818 | 3,623 | 7,534 | 9,989 | | **Consolidated** | **39,782** | **31,208** | **68,026** | **74,999** | - Asset-Based segment's Q3 2020 operating ratio **improved to 93.5%** from 94.4% in Q3 2019, reflecting better cost management[148](index=148&type=chunk)[149](index=149&type=chunk)[156](index=156&type=chunk) - ArcBest (Asset-Light) segment revenue **increased 8.8% in Q3 2020 YoY**, driven by a 5.7% increase in revenue per shipment due to tighter truckload capacity[178](index=178&type=chunk)[180](index=180&type=chunk) [Liquidity and Capital Resources](index=75&type=section&id=Liquidity%20and%20Capital%20Resources) Outlines the company's strong liquidity position, robust operating cash flow, and reduced capital expenditure plan Cash and Short-Term Investments ($ thousands) | Date | Amount | | :--- | :--- | | Sep 30, 2020 | 351,056 | | Dec 31, 2019 | 318,488 | - Net cash provided by operating activities **increased to $151.3 million** for the nine months ended Sep 30, 2020, compared to $138.0 million for the same period in 2019[201](index=201&type=chunk) - The 2020 capital expenditure plan was revised down by **approximately 30%** to an estimated range of $90 million to $95 million, net of asset sales[210](index=210&type=chunk) - As of September 30, 2020, the company had available borrowing capacity of **$180.0 million** under its Credit Facility and **$113.3 million** under its accounts receivable securitization program[212](index=212&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=86&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Addresses market risk from variable interest rates and mitigation efforts via an interest rate swap agreement - The company is exposed to interest rate risk from variable-rate borrowings under its Credit Facility and accounts receivable securitization program[236](index=236&type=chunk) - On May 4, 2020, the company extended the term of its **$50.0 million** notional interest rate swap agreement to October 1, 2024, converting a portion of its variable-rate debt to a fixed rate[236](index=236&type=chunk) [Item 4. Controls and Procedures](index=87&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls and procedures with no material changes to internal controls - Management concluded that the company's disclosure controls and procedures were **effective** as of September 30, 2020[239](index=239&type=chunk) - **No material changes** were made to the company's internal controls over financial reporting during the third quarter of 2020[240](index=240&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=89&type=section&id=Item%201.%20Legal%20Proceedings) States that routine legal matters are not expected to have a material adverse effect on the company's financials - Information regarding legal proceedings indicates that routine matters are **not expected to have a material adverse effect**[99](index=99&type=chunk)[241](index=241&type=chunk) [Item 1A. Risk Factors](index=89&type=section&id=Item%201A.%20Risk%20Factors) Supplements existing risk factors with new risks related to the COVID-19 pandemic and other external events - A new risk factor was added concerning the adverse effects of pandemics or other public health crises, like **COVID-19**, on business operations, financial condition, and cash flows[243](index=243&type=chunk)[244](index=244&type=chunk) - Another supplemental risk factor addresses the potential for external events to adversely affect the company or its third-party providers[245](index=245&type=chunk)[246](index=246&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=90&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports the repurchase of 77,460 shares for $2.5 million in Q3 2020, with $7.5 million remaining in the program Issuer Purchases of Equity Securities (Q3 2020) | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | | Jul 2020 | — | $— | $10,034,000 | | Aug 2020 | 27,604 | $31.81 | $9,156,000 | | Sep 2020 | 49,856 | $32.62 | $7,530,000 | | **Total Q3** | **77,460** | **$32.33** | **$7,530,000** | [Item 5. Other Information](index=90&type=section&id=Item%205.%20Other%20Information) Reports no other information for this item - The company reported **no information** for this item[249](index=249&type=chunk) [Item 6. Exhibits](index=91&type=section&id=Item%206.%20Exhibits) Lists filed exhibits, including Sarbanes-Oxley Act certifications and XBRL data files - Exhibits filed include **CEO and CFO certifications** under Sections 302 and 906 of the Sarbanes-Oxley Act[252](index=252&type=chunk)