Trucking company ArcBest (ARCB 8.45%) managed to navigate past speedbumps, including demand questions and market disruptions, and still deliver earnings that were above expectations. Investors were excited, sending shares of ArcBest up as much as 12.4% for the day and up 8.5% as of 12:30 Eastern Tuesday.A focus on costs drives an earnings beatArcBest earned $2.47 per share in its fourth quarter on revenue of $1.1 billion, surpassing Wall Street expectations for $2.21 per share in earnings on sales of $1.09 ...

Financial Data and Key Metrics Changes - In Q4 2023, the company generated $1.1 billion in revenue, down 6% year-over-year, primarily due to lower revenue in the Asset Light segment [12] - Full year 2023 revenue was $4.4 billion, down from record levels in 2022, with non-GAAP operating income at $258 million and adjusted earnings per share at $7.88, both down from the prior year [12][18] - Non-GAAP operating income for Q4 was $81.7 million, comparable to the same period last year, with adjusted earnings per share slightly increasing to $2.47 from $2.42 [12][18] Business Line Data and Key Metrics Changes - Asset-Based revenue in Q4 was $710 million, consistent with the same quarter last year, with an improved non-GAAP operating ratio of 87.7%, a 90 basis point improvement year-over-year [13][14] - In the Asset Light segment, Q4 revenue was $413 million, down 14% year-over-year, while shipments per day increased by 12% [17] - For the full year 2023, Asset Light revenue was $1.7 billion, down 21% from 2022, with a non-GAAP operating income of $5 million [17] Market Data and Key Metrics Changes - Preliminary January 2024 results indicated a decline in total shipments and tonnage from 2023 levels due to lower transactional shipments [15][18] - The company experienced about 130 service center closures in January due to extreme winter weather, significantly higher than the 10-year average of 57 closures [27] Company Strategy and Development Direction - The company is focused on investing in technology and operational excellence while navigating a slower freight market [7][24] - A five-year labor agreement was finalized, and the company is expanding its asset-based capacity through service center facility plans [8][9] - The company aims to enhance its integrated logistics solutions and is evaluating additional real estate investment opportunities [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market challenges and emphasized a focus on long-term growth and profitability [23][24] - The company is optimistic about its core business growth and has implemented cost controls to manage expenses effectively [32][33] - Management highlighted the importance of customer feedback and the launch of new digital tools to improve service visibility [25][71] Other Important Information - The company returned over $100 million to shareholders through dividends and share repurchases in 2023 [9][22] - The company plans to increase net capital expenditures in 2024 to between $325 million and $375 million, including investments in revenue equipment and real estate [20] Q&A Session Summary Question: Impact of January trends and weather - Management noted that January's weather was more extreme than usual, with 130 service center closures compared to a 10-year average of 57 [27] Question: Seasonal trends and operating ratio - Management discussed the typical seasonal increase in operating ratio from Q4 to Q1 and highlighted the impact of market disruptions and cost controls [30][32] Question: Capital expenditures and competitive risks - Management emphasized a purposeful capital expenditure plan and the strategic acquisition of facilities to enhance efficiency and growth opportunities [38][39] Question: Core vs. transactional business mix - Management indicated a focus on optimizing the mix between core and transactional business, with a preference for core business growth [64][69] Question: Service levels and customer perception - Management acknowledged the need for improvement in service perception and highlighted ongoing efforts to enhance communication and service quality [70][71]

For the quarter ended December 2023, ArcBest (ARCB) reported revenue of $1.09 billion, down 12.4% over the same period last year. EPS came in at $2.47, compared to $2.45 in the year-ago quarter.The reported revenue represents a surprise of +0.80% over the Zacks Consensus Estimate of $1.08 billion. With the consensus EPS estimate being $2.19, the EPS surprise was +12.79%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street exp ...

ArcBest (ARCB) came out with quarterly earnings of $2.47 per share, beating the Zacks Consensus Estimate of $2.19 per share. This compares to earnings of $2.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12.79%. A quarter ago, it was expected that this freight transportation and logistics company would post earnings of $1.55 per share when it actually produced earnings of $2.31, delivering a surprise of 49.03%.Over the las ...

FORT SMITH, Ark.--(BUSINESS WIRE)--The Board of Directors of ArcBest® (Nasdaq: ARCB) has declared a quarterly cash dividend of twelve cents ($0.12) per share to holders of record of its Common Stock, $0.01 par value, on February 16, 2024, payable on March 1, 2024. ABOUT ARCBEST ArcBest® (Nasdaq: ARCB) is a multibillion-dollar integrated logistics company that helps keep the global supply chain moving. Founded in 1923 and now with 15,000 employees across 250 campuses and service centers, the company is a l ...

Wall Street expects a year-over-year decline in earnings on lower revenues when ArcBest (ARCB) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 6, 2024, might help the stock move higher if these key numbers are better than expect ...

FORT SMITH, Ark.--(BUSINESS WIRE)--ArcBest® (Nasdaq: ARCB) will announce its fourth quarter 2023 financial results before the market opens on Tuesday, February 6, 2024. A conference call with company executives will be held that day at 9:30 a.m. EST (8:30 a.m. CST) to discuss these results. Interested parties are invited to listen by calling (800) 599-2055. The conference ID for the call is 6835093. Following the call, a recorded playback will be available through the end of the day on March 15, 2024. To l ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 000-19969 ARCBEST CORPORATION (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction o ...

ArcBest Corporation (NASDAQ:ARCB) Q3 2023 Results Conference Call October 27, 2023 9:00 AM ET Company Participants David Humphrey - VP, IR Judy McReynolds - Chairman, President & CEO Matt Beasley - CFO and Treasurer Seth Runser - President of ABF Freight Steven Leonard - Chief Commercial Officer & President of Asset-Light Logistics Dennis Anderson - Chief Strategy Officer Christopher Adkins - VP, Yield Strategy and Management Conference Call Participants Ravi Shankar - Morgan Stanley Jason Seidl - TD Ken Ho ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited consolidated financial statements and management's financial analysis [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including balance sheets, income statements, and cash flows, reflecting the reclassification of FleetNet as a discontinued operation [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased slightly to **$2.41 billion** at June 30, 2023, while total stockholders' equity increased to **$1.21 billion** Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $865,190 | $989,783 | | **Total Assets** | **$2,414,102** | **$2,494,286** | | **Total Current Liabilities** | $641,266 | $768,470 | | **Total Liabilities** | $1,202,741 | $1,342,885 | | **Total Stockholders' Equity** | **$1,211,361** | **$1,151,401** | - Assets and liabilities of discontinued operations (FleetNet) were **$75.8 million** and **$52.4 million** respectively at Dec 31, 2022, and are zero as of June 30, 2023, following the sale[7](index=7&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2023 revenues decreased to **$1.10 billion**, leading to a significant drop in operating income to **$42.1 million** Consolidated Operations Highlights (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | 6 Months 2023 | 6 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $1,103,464 | $1,321,692 | $2,209,558 | $2,589,783 | | **Operating Income** | $42,116 | $136,038 | $63,275 | $228,981 | | **Net Income from Continuing Operations** | $39,600 | $101,542 | $58,447 | $169,550 | | **Diluted EPS from Continuing Operations** | $1.60 | $3.97 | $2.35 | $6.58 | - The company recognized significant income from discontinued operations of **$53.3 million** for the first six months of 2023, primarily due to the gain on the sale of FleetNet[9](index=9&type=chunk) [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q2 2023 was **$40.6 million**, a decrease from **$102.1 million** in Q2 2022 Comprehensive Income (in thousands) | Metric | Q2 2023 | Q2 2022 | 6 Months 2023 | 6 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $40,443 | $102,461 | $111,726 | $172,030 | | **Other Comprehensive Income (Loss)** | $183 | $(349) | $(534) | $1,275 | | **Total Comprehensive Income** | **$40,626** | **$102,112** | **$111,192** | **$173,305** | [Consolidated Statement of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statement%20of%20Stockholders%27%20Equity) Stockholders' equity increased to **$1.21 billion** driven by net income, partially offset by treasury stock purchases and dividends Changes in Stockholders' Equity (6 Months Ended June 30, 2023, in thousands) | Description | Amount | | :--- | :--- | | **Balance at Dec 31, 2022** | **$1,151,401** | | Net Income | $111,726 | | Other Comprehensive Loss | $(534) | | Purchase of Treasury Stock | $(41,240) | | Dividends Declared | $(5,809) | | Share-based Compensation & Other | $(4,183) | | **Balance at June 30, 2023** | **$1,211,361** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to **$103.8 million** for the first six months of 2023, while investing activities provided **$30.5 million** Cash Flow Summary (6 Months Ended June 30, in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $103,757 | $184,623 | | **Net Cash from (used in) Investing Activities** | $30,456 | $(74,844) | | **Net Cash used in Financing Activities** | $(105,299) | $(59,341) | | **Net Increase in Cash** | $28,914 | $50,438 | | **Cash at End of Period** | $187,286 | $127,058 | - The sale of discontinued operations (FleetNet) provided **$100.9 million** in cash proceeds during the first six months of 2023[18](index=18&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosure on accounting policies and financial statement components, including segment performance and the FleetNet sale [NOTE A – ORGANIZATION AND DESCRIPTION OF THE BUSINESS AND FINANCIAL STATEMENT PRESENTATION](index=10&type=section&id=NOTE%20A%20%E2%80%93%20ORGANIZATION%20AND%20DESCRIPTION%20OF%20THE%20BUSINESS%20AND%20FINANCIAL%20STATEMENT%20PRESENTATION) ArcBest operates through Asset-Based and Asset-Light segments, with FleetNet reclassified as discontinued operations after its sale - The company operates through two main segments: Asset-Based, which contributed **~63%** of total revenues in the first six months of 2023, and Asset-Light[20](index=20&type=chunk)[21](index=21&type=chunk) - A new 5-year collective bargaining agreement (2023 ABF NMFA) was ratified, effective July 1, 2023. It includes annual wage increases, profit-sharing bonuses, and increased benefit contributions, with an estimated **4.2%** compounded annual increase in top hourly wage and benefit rates[21](index=21&type=chunk)[22](index=22&type=chunk) - The company sold its FleetNet subsidiary for **$100.9 million** on Feb 28, 2023. FleetNet's results are now reported as discontinued operations, and prior periods have been reclassified[23](index=23&type=chunk) [NOTE B – FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS](index=12&type=section&id=NOTE%20B%20%E2%80%93%20FINANCIAL%20INSTRUMENTS%20AND%20FAIR%20VALUE%20MEASUREMENTS) The contingent consideration liability for MoLo increased to **$117.0 million** due to revised growth assumptions, impacting fair value measurements Cash and Short-Term Investments (in thousands) | Category | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $187,286 | $158,264 | | Short-term investments | $153,116 | $167,662 | - The fair value of the contingent consideration liability for the MoLo acquisition increased by **$5.0 million** to **$117.0 million** during the first six months of 2023. This was due to revised assumptions for business growth in 2024 and 2025, partially offset by softer 2023 market conditions[38](index=38&type=chunk)[41](index=41&type=chunk) - The fair value of the company's equity investment in Phantom Auto increased by **$3.7 million** based on an observable price change from a new funding round[43](index=43&type=chunk) [NOTE C – DISCONTINUED OPERATIONS](index=16&type=section&id=NOTE%20C%20%E2%80%93%20DISCONTINUED%20OPERATIONS) ArcBest sold FleetNet for **$100.9 million**, resulting in a pre-tax gain of **$70.2 million**, with its results now reported as discontinued operations - The company sold FleetNet for **$100.9 million**, recording a pre-tax gain of **$70.2 million** (**$52.3 million** after tax)[44](index=44&type=chunk) Financial Results from Discontinued Operations (in thousands) | Metric | 6 Months 2023 | 6 Months 2022 | | :--- | :--- | :--- | | Revenues | $55,929 | $138,220 | | Gain on sale of business | $(70,215) | — | | Income from discontinued operations, net of tax | $53,279 | $2,480 | [NOTE D – GOODWILL AND INTANGIBLE ASSETS](index=18&type=section&id=NOTE%20D%20%E2%80%93%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) Goodwill remained at **$304.8 million**, primarily from Asset-Light acquisitions, while net intangible assets decreased due to amortization - The goodwill balance of **$304.8 million** at June 30, 2023, primarily relates to the Asset-Light segment acquisitions of MoLo and Panther[49](index=49&type=chunk) Future Amortization of Intangible Assets (in thousands) | Period | Amount | | :--- | :--- | | Remainder of 2023 | $6,394 | | 2024 | $12,778 | | 2025 | $12,778 | | 2026 | $8,671 | | 2027 | $7,247 | | Thereafter | $27,299 | | **Total** | **$75,167** | [NOTE E – INCOME TAXES](index=20&type=section&id=NOTE%20E%20%E2%80%93%20INCOME%20TAXES) The effective tax rate from continuing operations was **19.1%** for the first half of 2023, influenced by state taxes and tax credits Effective Tax Rate from Continuing Operations | Period | 2023 | 2022 | | :--- | :--- | :--- | | **Three Months Ended June 30** | 18.6% | 22.9% | | **Six Months Ended June 30** | 19.1% | 23.6% | - The 2023 effective tax rate was impacted by the reinstatement of the federal alternative fuel tax credit[53](index=53&type=chunk) - The company paid **$77.8 million** in federal, state, and foreign income taxes during the first six months of 2023, compared to **$56.4 million** in the same period of 2022[55](index=55&type=chunk) [NOTE F – LEASES](index=20&type=section&id=NOTE%20F%20%E2%80%93%20LEASES) Operating lease expense increased to **$22.4 million** for the first six months of 2023, with future payments totaling **$241.0 million** Total Operating Lease Expense (in thousands) | Period | 2023 | 2022 | | :--- | :--- | :--- | | **Three Months Ended June 30** | $11,805 | $8,338 | | **Six Months Ended June 30** | $22,397 | $16,236 | - As of June 30, 2023, total future lease payments under operating leases were **$241.0 million**, with a present value (lease liability) of **$205.2 million**[59](index=59&type=chunk) [NOTE G – LONG-TERM DEBT AND FINANCING ARRANGEMENTS](index=22&type=section&id=NOTE%20G%20%E2%80%93%20LONG-TERM%20DEBT%20AND%20FINANCING%20ARRANGEMENTS) Total long-term debt decreased to **$233.0 million**, including **$50.0 million** on the revolving credit facility and **$183.0 million** in notes payable Long-Term Debt (in thousands) | Category | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Credit Facility | $50,000 | $50,000 | | Notes payable | $182,987 | $214,623 | | **Total Debt** | **$232,987** | **$264,623** | - The company has a **$250.0 million** revolving credit facility maturing in October 2027, with **$200.0 million** available borrowing capacity as of June 30, 2023[65](index=65&type=chunk) - An accounts receivable securitization program provides **$50.0 million** in available proceeds, of which **$40.0 million** was available as of June 30, 2023, after issuing **$10.0 million** in standby letters of credit[70](index=70&type=chunk)[72](index=72&type=chunk) [NOTE H – STOCKHOLDERS' EQUITY](index=26&type=section&id=NOTE%20H%20%E2%80%93%20STOCKHOLDERS%27%20EQUITY) Stockholders' equity increased, driven by net income and partially offset by **$41.2 million** in treasury stock repurchases under a reauthorized program - The company declared dividends of **$0.12 per share** in Q1 and Q2 2023, totaling **$5.8 million** for the six-month period[83](index=83&type=chunk) - In February 2023, the Board reauthorized the share repurchase program and increased the total amount available to **$125.0 million**[84](index=84&type=chunk) - During the first six months of 2023, the company repurchased **453,296 shares** for **$41.2 million**, leaving **$83.8 million** available under the program as of June 30, 2023[85](index=85&type=chunk) [NOTE I – EARNINGS PER SHARE](index=28&type=section&id=NOTE%20I%20%E2%80%93%20EARNINGS%20PER%20SHARE) Diluted EPS from continuing operations was **$2.35** for the first six months of 2023, with total diluted EPS at **$4.49** Diluted Earnings Per Share | Category | Q2 2023 | Q2 2022 | 6 Months 2023 | 6 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | **Continuing operations** | $1.60 | $3.97 | $2.35 | $6.58 | | **Discontinued operations** | $0.03 | $0.04 | $2.14 | $0.10 | | **Total diluted EPS** | **$1.64** | **$4.00** | **$4.49** | **$6.68** | [NOTE J – OPERATING SEGMENT DATA](index=28&type=section&id=NOTE%20J%20%E2%80%93%20OPERATING%20SEGMENT%20DATA) Asset-Based revenues were **$1.42 billion** with **$90.8 million** operating income, while Asset-Light revenues were **$847.9 million** with an operating loss Segment Revenues (6 Months Ended June 30, in thousands) | Segment | 2023 | 2022 | | :--- | :--- | :--- | | Asset-Based | $1,419,832 | $1,507,933 | | Asset-Light | $847,908 | $1,144,939 | | Other and eliminations | $(58,182) | $(63,089) | | **Total Consolidated** | **$2,209,558** | **$2,589,783** | Segment Operating Income (Loss) (6 Months Ended June 30, in thousands) | Segment | 2023 | 2022 | | :--- | :--- | :--- | | Asset-Based | $90,796 | $196,690 | | Asset-Light | $(911) | $48,595 | | Other and eliminations | $(26,610) | $(16,304) | | **Total Consolidated** | **$63,275** | **$228,981** | [NOTE K – LEGAL PROCEEDINGS, ENVIRONMENTAL MATTERS, AND OTHER EVENTS](index=33&type=section&id=NOTE%20K%20%E2%80%93%20LEGAL%20PROCEEDINGS%2C%20ENVIRONMENTAL%20MATTERS%2C%20AND%20OTHER%20EVENTS) The company faces lawsuits related to a pre-acquisition auto accident and agreed to pay a **$0.5 million** civil penalty for Clean Water Act issues - The company and its subsidiary MoLo are defendants in lawsuits related to a pre-acquisition auto accident. A loss is deemed reasonably possible and could be material, but an amount cannot be estimated[103](index=103&type=chunk) - In March 2023, ABF Freight entered a consent decree with the EPA and will pay a **$0.5 million** civil penalty to resolve alleged Clean Water Act compliance issues[108](index=108&type=chunk) - The company is appealing a Notice of Assessment from a state regarding an ongoing sales and use tax audit but does not believe the resolution will have a material adverse effect[109](index=109&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **14.7%** consolidated revenue decrease for H1 2023 due to market softness, impacting both segments and liquidity [Consolidated Results](index=37&type=section&id=Consolidated%20Results) Consolidated revenues for H1 2023 decreased **14.7%** to **$2.21 billion**, with operating income dropping to **$63.3 million** due to market softness Consolidated Revenue and Operating Income (6 Months Ended June 30, in millions) | Metric | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $2,209.6 | $2,589.8 | (14.7%) | | **Operating Income** | $63.3 | $229.0 | (72.4%) | - Innovative technology costs, including the Vaux freight handling program, impacted consolidated results by **$27.3 million** (pre-tax) in the first half of 2023, up from **$20.0 million** in the prior year period[125](index=125&type=chunk) - The remeasurement of the MoLo contingent earnout consideration reduced consolidated results by a **$5.0 million** (pre-tax) expense in the first half of 2023[126](index=126&type=chunk) [Consolidated Adjusted EBITDA](index=41&type=section&id=Consolidated%20Adjusted%20EBITDA) Consolidated Adjusted EBITDA from continuing operations decreased significantly to **$154.4 million** for H1 2023, reflecting lower operating performance Consolidated Adjusted EBITDA from Continuing Operations (in thousands) | Period | 2023 | 2022 | | :--- | :--- | :--- | | **Three Months Ended June 30** | $76,301 | $171,865 | | **Six Months Ended June 30** | $154,405 | $301,988 | [Asset-Based Operations](index=43&type=section&id=Asset-Based%20Operations) Asset-Based segment revenues decreased **5.8%** to **$1.42 billion**, with operating income falling to **$90.8 million** due to lower rates and mix shift Asset-Based Segment Results (6 Months Ended June 30) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Revenues** | $1,419.8M | $1,507.9M | | **Operating Income** | $90.8M | $196.7M | | **Operating Ratio** | 93.6% | 87.0% | - A new 5-year collective bargaining agreement (2023 ABF NMFA) was implemented retroactive to July 1, 2023, and is expected to increase the combined wage and benefits top hourly rate by approximately **4.2%** on a compounded annual basis[148](index=148&type=chunk) - The company noted that a large LTL competitor ceased operations on July 30, 2023, which is expected to cause short-term market disruption and a possible increase in shipment levels[149](index=149&type=chunk) [Asset-Light Operations](index=53&type=section&id=Asset-Light%20Operations) Asset-Light segment revenues decreased **25.9%** to **$847.9 million**, resulting in an operating loss of **$0.9 million** due to market softness Asset-Light Segment Results (6 Months Ended June 30) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Revenues** | $847.9M | $1,144.9M | | **Operating Income (Loss)** | $(0.9)M | $48.6M | | **Operating Ratio** | 100.1% | 95.8% | Asset-Light Key Operating Statistics (% Change YoY, 6 Months Ended June 30, 2023) | Metric | % Change | | :--- | :--- | | Revenue per shipment | (30.3%) | | Shipments per day | 2.3% | - Operating results for the first half of 2023 were reduced by a **$5.0 million** expense from the change in fair value of the MoLo contingent earnout consideration[185](index=185&type=chunk) [Current Economic Conditions, Inflation, and Other Factors](index=59&type=section&id=Current%20Economic%20Conditions%2C%20Inflation%2C%20and%20Other%20Factors) Challenging economic conditions, including inflation and slowing manufacturing, have softened demand and impacted pricing and costs - The Manufacturing PMI, a key industry indicator, was **46.4%** for July 2023, marking the **nine consecutive months** of economic contraction in the manufacturing sector[196](index=196&type=chunk) - The company is piloting electric forklifts, yard tractors, and straight trucks and is implementing City Route Optimization (CRO) technology to reduce emissions and improve efficiency[205](index=205&type=chunk) - Cybersecurity is a key focus, with investments in safeguards, backup systems, and a disaster recovery plan to mitigate risks from potential attacks, especially with hybrid and remote work arrangements[210](index=210&type=chunk)[211](index=211&type=chunk) [Liquidity and Capital Resources](index=67&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity remains strong with **$340.4 million** in cash and investments, with estimated 2023 capital expenditures of **$270-$295 million** - Total cash, cash equivalents, and short-term investments stood at **$340.4 million** as of June 30, 2023[218](index=218&type=chunk) - The 2023 capital expenditure plan is estimated to be between **$270.0 million** and **$295.0 million**, net of asset sales, including approximately **$165.0 million** for revenue equipment[233](index=233&type=chunk) - The company has **$200.0 million** available under its revolving credit facility and **$40.0 million** under its accounts receivable securitization program as of June 30, 2023[234](index=234&type=chunk) [Balance Sheet Changes and Income Taxes](index=73&type=section&id=Balance%20Sheet%20Changes%20and%20Income%20Taxes) Significant balance sheet changes include decreased accounts receivable and accrued expenses, with an effective tax rate of **19.1%** for H1 2023 - Accounts receivable decreased by **$87.9 million** due to lower revenue levels and improved collections[240](index=240&type=chunk) - Accrued expenses decreased by **$39.1 million**, primarily due to payments for performance-based incentive plans accrued at year-end 2022[244](index=244&type=chunk) Reconciliation of Effective Tax Rate (Continuing Operations, 6 Months Ended June 30, 2023) | Description | Rate | | :--- | :--- | | Statutory federal rate | 21.0% | | State income tax provision | 4.6% | | Tax benefit from vested RSUs | (6.8%) | | Other items, net | 0.3% | | **Total Provision for Income Taxes** | **19.1%** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=80&type=section&id=Item%203.Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is from interest rate fluctuations on variable-rate debt, partially mitigated by an interest rate swap - The primary market risk is from interest rate fluctuations on variable-rate debt under the revolving credit facility and AR securitization program[260](index=260&type=chunk) - The company uses an interest rate swap agreement to mitigate a portion of the interest rate risk associated with its **$50.0 million** in borrowings under the revolving credit facility[61](index=61&type=chunk)[260](index=260&type=chunk) [Item 4. Controls and Procedures](index=80&type=section&id=Item%204.Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal controls over financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2023[262](index=262&type=chunk) - No changes occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls over financial reporting[263](index=263&type=chunk) [PART II. OTHER INFORMATION](index=81&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=81&type=section&id=Item%201.Legal%20Proceedings) Detailed information regarding the company's legal proceedings is provided in Note K to the Consolidated Financial Statements - Information regarding legal proceedings is detailed in Note K to the Consolidated Financial Statements[265](index=265&type=chunk) [Item 1A. Risk Factors](index=81&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the filing of the 2022 Annual Report on Form 10-K - No material changes to the company's risk factors have occurred since the filing of the 2022 Annual Report on Form 10-K[266](index=266&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=81&type=section&id=Item%202.Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **299,207 shares** for **$27.2 million** in Q2 2023 under its reauthorized share repurchase program Issuer Purchases of Equity Securities (Q2 2023) | Period | Total Shares Purchased | Average Price Paid | Approx. Value Remaining in Program | | :--- | :--- | :--- | :--- | | Apr 2023 | 171,967 | $92.28 | $95,038,000 | | May 2023 | 127,240 | $88.64 | $83,760,000 | | Jun 2023 | 0 | N/A | $83,760,000 | | **Total** | **299,207** | | **$83,760,000** | - In February 2023, the Board increased the total amount available for share repurchases to **$125.0 million**[268](index=268&type=chunk) [Item 5. Other Information](index=83&type=section&id=Item%205.Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2023 - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2023[270](index=270&type=chunk) [Item 6. Exhibits](index=84&type=section&id=Item%206.Exhibits) This section lists the exhibits filed with the report, including CEO and CFO certifications and XBRL data files - Exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906, and Inline XBRL documents[273](index=273&type=chunk)