Financial Data and Key Metrics Changes - ArcBest reported second quarter revenue of $1.1 billion, a slight 2% decrease compared to the previous year. However, non-GAAP operating income from continuing operations rose by 28% to $64 million [18] - Adjusted earnings per share increased to $1.98, up from $1.54 in the second quarter of 2023 [18] - The Asset-Based business saw a $21 million increase in non-GAAP operating income compared to the same period last year, despite lower revenue [18] Business Line Data and Key Metrics Changes - The Asset-Based segment's second quarter revenue was $713 million, a per day decrease of 2%. The non-GAAP operating ratio improved by 300 basis points to 89.8% compared to the second quarter of last year [19] - Tonnage per day decreased by 20%, while daily shipments were 5% below prior year levels. However, core LTL shipments grew by 14% year-over-year [20] - The Asset-Light segment reported second quarter revenue of $396 million, a daily decrease of approximately 4% year-over-year, with shipments per day increasing by 13% [25] Market Data and Key Metrics Changes - The sales pipeline increased by nearly 40% since January, indicating growing demand for services [8] - Despite a softer market environment, the company maintained solid customer retention, with over 80% of revenues coming from long-term customers [8] - The company anticipates that daily tonnage levels for the third quarter of 2024 will be below the prior year due to shifts in core business and competition [23] Company Strategy and Development Direction - ArcBest's strategy focuses on growth, efficiency, and innovation, with significant investments in technology and operational improvements [7][12] - The company is enhancing its service capabilities through facility expansions and technology projects, such as AI-driven route optimization [15] - The management emphasizes the importance of maintaining a strong customer value proposition and adapting to market conditions [12][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current economic challenges, citing a strong sales pipeline and improved operational metrics [37] - The company is well-positioned to succeed in any environment, with a focus on cost efficiencies for customers [37] - Management noted that while the economy is soft, they are optimistic about future growth opportunities as they continue to enhance service levels and operational efficiency [80] Other Important Information - ArcBest returned $37 million to shareholders through share buybacks and dividends in the first half of 2024, maintaining a strong financial position with a $57 million net cash position [28] - The company has been recognized for its sustainability efforts and workplace culture, receiving accolades from various organizations [29] Q&A Session Summary Question: What is the outlook for tonnage in Q3 excluding project business? - Management acknowledged that the tonnage decline is partly due to project business but also attributed it to customers shifting to lower-cost providers [32] Question: How is the company positioned regarding potential recession impacts? - Management indicated that they are well-positioned to navigate economic challenges, with a strong sales pipeline and focus on cost efficiencies [37] Question: What are the pricing trends and expectations for the back half of the year? - Management confirmed disciplined pricing strategies, achieving a 5.1% increase in customer contract renewals, and expects continued pricing improvements [42][43] Question: How does the company view the overall freight market and competition? - Management noted that while competition has increased, they believe their service improvements and strategic investments will help maintain their market position [52][56] Question: What is the current mix of spot versus contract business in the Asset-Light segment? - The current mix is approximately 60% contract versus 40% spot in the truckload business, with ongoing improvements in productivity [64]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's H1 2024 financial statements show decreased assets and equity, mixed revenue, improved operating income, and increased cash flow from operations [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets decreased slightly to **$2.41 billion**, with liabilities and stockholders' equity also seeing minor reductions Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2024 (Unaudited) | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $767,213 | $884,783 | | **Total Assets** | $2,408,529 | $2,485,094 | | **Total Current Liabilities** | $645,850 | $701,563 | | **Total Liabilities** | $1,177,011 | $1,242,731 | | **Total Stockholders' Equity** | $1,231,538 | $1,242,363 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2024 revenues slightly decreased, but operating and net income from continuing operations increased, while H1 2024 saw a larger revenue decline and reduced net income Q2 Financial Performance (in thousands, except per share data) | Metric | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $1,077,831 | $1,103,464 | -2.3% | | Operating Income | $48,845 | $42,116 | +16.0% | | Net Income (Continuing Ops) | $46,924 | $39,600 | +18.5% | | Diluted EPS (Continuing Ops) | $1.96 | $1.60 | +22.5% | Six-Month Financial Performance (in thousands, except per share data) | Metric | H1 2024 | H1 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $2,114,250 | $2,209,558 | -4.3% | | Operating Income | $71,280 | $63,275 | +12.6% | | Net Income (Continuing Ops) | $44,012 | $58,447 | -24.7% | | Diluted EPS (Continuing Ops) | $1.83 | $2.35 | -22.1% | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to **$140.2 million** in H1 2024, while investing activities shifted to a net use, and financing activities remained a net use Six-Month Cash Flow Summary (in thousands) | Cash Flow Activity | H1 2024 | H1 2023 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $140,202 | $103,757 | | **Net Cash from Investing Activities** | $(87,079) | $30,456 | | **Net Cash from Financing Activities** | $(99,759) | $(105,299) | | **Net (Decrease) Increase in Cash** | $(46,636) | $28,914 | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail business segments, accounting policies, the **FleetNet** sale, a **$28.7 million** Phantom Auto impairment, a **1.2%** effective tax rate, and ongoing legal matters - The company operates through two reportable segments: Asset-Based (ABF Freight), which accounted for **~64% of revenues** in H1 2024, and Asset-Light (MoLo, Panther)[22](index=22&type=chunk)[23](index=23&type=chunk) - The sale of FleetNet America, Inc. on February 28, 2023, for **$100.9 million** is accounted for as discontinued operations, with its historical results excluded from continuing operations[24](index=24&type=chunk)[45](index=45&type=chunk) - In Q1 2024, the company recorded a pre-tax, noncash impairment charge of **$28.7 million** to write off its equity investment in Phantom Auto, which ceased operations[43](index=43&type=chunk) - The effective tax rate from continuing operations for the six months ended June 30, 2024, was **1.2%**, significantly lower than **19.1%** in the prior year, primarily due to tax benefits from the vesting of restricted stock units (RSUs)[51](index=51&type=chunk) - The company is a defendant in a lawsuit related to an auto accident involving a MoLo contract carrier that occurred prior to the acquisition. While the company was released, MoLo remains a defendant, and a loss is considered reasonably possible[107](index=107&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses H1 2024's **4.3%** revenue decline, improved consolidated operating income, segment-specific performance, and future capital expenditure and share repurchase plans [Results of Operations](index=37&type=section&id=Results%20of%20Operations) H1 2024 consolidated revenues decreased **4.3%**, with Asset-Based operating income improving due to strategic shifts, while Asset-Light incurred a significant operating loss Segment Revenue Performance - H1 2024 vs H1 2023 (in thousands) | Segment | H1 2024 | H1 2023 | % Change | | :--- | :--- | :--- | :--- | | Asset-Based | $1,384,192 | $1,419,832 | -2.5% | | Asset-Light | $792,180 | $847,908 | -6.6% | | **Total Consolidated** | **$2,114,250** | **$2,209,558** | **-4.3%** | Segment Operating Income (Loss) - H1 2024 vs H1 2023 (in thousands) | Segment | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Asset-Based | $126,248 | $90,796 | +$35,452 | | Asset-Light | $(24,756) | $(911) | -$23,845 | | **Total Consolidated** | **$71,280** | **$63,275** | **+$7,005** | - Asset-Based tonnage per day decreased **18.6%** in H1 2024, but this was offset by a **19.4%** increase in billed revenue per hundredweight, driven by a strategic focus on higher-priced core LTL business[125](index=125&type=chunk)[156](index=156&type=chunk)[158](index=158&type=chunk) - Asset-Light shipments per day increased **13.1%** in H1 2024, but revenue per shipment fell **17.4%** due to soft market conditions and changes in business mix[128](index=128&type=chunk)[179](index=179&type=chunk) - The remeasurement of contingent earnout consideration for the MoLo acquisition decreased consolidated operating results by **$11.2 million** in H1 2024, compared to a **$5.0 million** decrease in H1 2023[131](index=131&type=chunk) [Liquidity and Capital Resources](index=65&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$260.5 million** in cash, projects **$325-$375 million** in 2024 capital expenditures, and continues its share repurchase program - Total cash, cash equivalents, and short-term investments stood at **$260.5 million** as of June 30, 2024, down from **$330.1 million** at year-end 2023[215](index=215&type=chunk)[217](index=217&type=chunk) - Estimated net capital expenditures for 2024 are projected to be between **$325.0 million** and **$375.0 million**, including **$155.0 million** for revenue equipment and **$130.0 million** for real estate and facility upgrades[225](index=225&type=chunk)[228](index=228&type=chunk) - In H1 2024, the company repurchased **251,668 shares** for **$31.6 million**. As of June 30, 2024, **$99.4 million** remained available under the share repurchase program[220](index=220&type=chunk)[232](index=232&type=chunk) - The fair value of the contingent earnout consideration for the MoLo acquisition is estimated at **$104.1 million** as of June 30, 2024[230](index=230&type=chunk) [Current Economic Conditions](index=57&type=section&id=Current%20Economic%20Conditions) The company operates in a challenging economic environment with a contracting manufacturing sector, soft freight market, and potential for Asset-Light segment goodwill impairment - The manufacturing sector, measured by the PMI, has been in contraction for **19 of the last 20 months**, contributing to declining freight volumes[188](index=188&type=chunk) - The soft freight environment has resulted in a year-over-year decline in market pricing for many Asset-Light services[191](index=191&type=chunk) - Management warns that significant declines in business levels could result in a noncash write-off of a significant portion of the goodwill and intangible assets of the Asset-Light segment[191](index=191&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=78&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on variable-rate debt, partially mitigated by an interest rate swap agreement, with no significant changes since year-end 2023 - The company's main market risk is from interest rate fluctuations on its variable-rate debt, including its revolving credit facility and accounts receivable securitization program[260](index=260&type=chunk) - An interest rate swap agreement is in place to mitigate a portion of the interest rate risk on the revolving credit facility[260](index=260&type=chunk) [Item 4. Controls and Procedures](index=78&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal controls over financial reporting during Q2 2024 - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2024[262](index=262&type=chunk) - No material changes to internal controls over financial reporting occurred during the most recent fiscal quarter[263](index=263&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=79&type=section&id=Item%201.%20Legal%20Proceedings) Details on the company's legal proceedings, including a MoLo subsidiary lawsuit and a Fair Labor Standards Act settlement, are provided in Note K - Details on legal proceedings are cross-referenced to Note K in Part I, Item 1 of the report[265](index=265&type=chunk) [Item 1A. Risk Factors](index=79&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the filing of its 2023 Annual Report on Form 10-K - No material changes to the company's risk factors have occurred since the 2023 Annual Report on Form 10-K was filed[266](index=266&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=79&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **130,987 shares** for **$16.0 million** in Q2 2024, with **$99.4 million** remaining under the authorized repurchase program Issuer Purchases of Equity Securities (Q2 2024) | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | | April 2024 | 36,547 | $142.16 | $110,152,000 | | May 2024 | 94,440 | $114.14 | $99,372,000 | | June 2024 | 0 | N/A | $99,372,000 | | **Total Q2** | **130,987** | **$121.96** | **$99,372,000** | - In February 2024, the Board reauthorized the share repurchase program and increased the total amount available to **$125.0 million**[267](index=267&type=chunk)

ArcBest (ARCB) reported $1.08 billion in revenue for the quarter ended June 2024, representing a year-over-year decline of 2.3%. EPS of $1.98 for the same period compares to $1.54 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.05 billion, representing a surprise of +2.60%. The company delivered an EPS surprise of -2.46%, with the consensus EPS estimate being $2.03.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expe ...

ArcBest (ARCB) came out with quarterly earnings of $1.98 per share, missing the Zacks Consensus Estimate of $2.03 per share. This compares to earnings of $1.54 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.46%. A quarter ago, it was expected that this freight transportation and logistics company would post earnings of $1.54 per share when it actually produced earnings of $1.34, delivering a surprise of -12.99%.Over the la ...

Exhibit 99.1 Investor Relations Contact: Amy Mendenhall Media Contact: Autumnn Mahar Title: Vice President – Treasury & Investor Relations Phone: 479-785-6200 Title: Director External Communications and Public Relations Email: invrel@arcb.com Phone: 479-494-8221 Email: amahar@arcb.com ArcBest Announces Second Quarter 2024 Results Strong gains in productivity and service metrics ● Delivered second quarter 2024 net income of $46.9 million, or $1.96 per diluted share, and nonGAAP net income of $47.4 million, o ...

The market expects ArcBest (ARCB) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Aug ...

LOS ANGELES, June 13, 2024 (GLOBE NEWSWIRE) -- SupplyTech Breakthrough, a leading independent market intelligence organization that evaluates and recognizes standout technology companies, products and services in the supply chain technology and logistics industry around the globe, today announced that ArcBest® (Nasdaq: ARCB), a leader in supply chain logistics, has received “Robotics Innovation of the Year” in the annual SupplyTech Breakthrough Awards program. ArcBest’s Vaux is material handling technology ...

Core Insights - ArcBest has been awarded "Robotics Innovation of the Year" by SupplyTech Breakthrough for its Vaux technology, which enhances supply chain logistics through advanced automation solutions [1][5]. Company Overview - ArcBest is a multibillion-dollar integrated logistics company founded in 1923, employing 15,000 people across 250 campuses and service centers, focusing on connecting shippers with various transportation solutions [7]. - The company has a history of innovation and is committed to developing technologies that address current and future supply chain challenges [7][8]. Technology Details - Vaux technology includes the Vaux Freight Movement System™ and Vaux Smart Autonomy™, which utilize autonomous mobile robots (AMRs) to improve material handling efficiency in warehouses and distribution centers [2][3]. - The Vaux Freight Movement System allows for the unloading of an entire trailer in under five minutes, significantly enhancing operational efficiency [2]. - Vaux Smart Autonomy prioritizes safety with built-in protocols and obstacle detection, reducing the risk of accidents and injuries associated with traditional material handling [3][4]. Market Impact - The Vaux system enables data-driven decision-making by syncing with warehouse management systems, providing insights into performance metrics and optimizing workflows [4]. - The technology is designed to adapt to various facility conditions and processes, allowing businesses to implement automation without significant structural changes, thus making it a cost-effective solution [6]. Industry Recognition - The SupplyTech Breakthrough Awards program evaluates top technology companies and products in the supply chain and logistics industry, with this year's program receiving thousands of nominations from over 15 countries [5][9].

Core Viewpoint - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies based on recent earnings estimate revisions [1] Company Summaries - **ArcBest (ARCB)**: This company provides freight transportation services and solutions. The Zacks Consensus Estimate for its current year earnings has been revised downward by 16.2% over the last 60 days [1] - **Atlantic Union Bankshares (AUB)**: This company offers banking services to consumers and businesses. The Zacks Consensus Estimate for its current year earnings has been revised downward by almost 9% over the last 60 days [1] - **B&G Foods (BGS)**: This company manufactures, sells, and distributes high-quality, shelf-stable, frozen food and household products across the United States, Canada, and Puerto Rico. The Zacks Consensus Estimate for its current year earnings has been revised downward by 6% over the last 60 days [1]

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:ARMOUR Residential REIT, Inc. (ARR) invests in residential mortgage-backed securities. The Zacks Consensus Estimate for its current year earnings has been revised 18.6% downward over the last 60 days.ArcBest Corporation (ARCB) is a freight transportation and integrated logistics services company. The Zacks Consensus Estimate for its current year earnings has been revised 16.2% downward over the last 60 days.B&G Foods, Inc. (BGS) is a ...