Core Insights - ArcBest reported revenue of $1 billion for the quarter ended December 2024, reflecting an 8.1% decrease year-over-year, with EPS at $1.33 compared to $2.47 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $997.94 million by 0.37%, while the EPS surpassed the consensus estimate of $1.05 by 26.67% [1] Financial Performance Metrics - Asset-Based billed revenue per CWT was $49.27, slightly above the average estimate of $48.86 [4] - Asset-Light operating ratio was reported at 100.4%, better than the average estimate of 102.1% [4] - Asset-Based shipments per day were 19,698 tons, compared to the estimated 19,865.21 tons [4] - Asset-Based operating ratio (Non-GAAP) was 92%, compared to the average estimate of 93% [4] - Asset-Based workdays were consistent at 62, matching the average estimate [4] - Asset-Based pounds per shipment were 1,092 lbs, slightly below the average estimate of 1,098.08 lbs [4] - Asset-Based tons per day were reported at 10,758 tons, lower than the average estimate of 10,906.58 tons [4] - Asset-Light operating ratio (Non-GAAP) was 101.6%, close to the average estimate of 101.7% [4] - Revenues from Asset-Based operations were $656.22 million, slightly above the estimate of $653.87 million, but down 7.6% year-over-year [4] - Revenues from Asset-Light operations were $375.43 million, below the average estimate of $376.19 million, representing a 9.2% decline year-over-year [4] - Revenues from other and eliminations were -$30.01 million, better than the estimate of -$31.83 million, with an 11.4% decrease compared to the previous year [4] Stock Performance - ArcBest shares returned +2.8% over the past month, slightly underperforming the Zacks S&P 500 composite's +2.9% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]

Earnings Presentation Three-Point Strategy Continues to Deliver Shareholder Value & Drive Business Growth 1 2 3 Increase Efficiency Leverage technology Optimize ABF network Drive scale and productivity to improve Asset-Light operating margin Drive Innovation Develop and implement disruptive and game changing innovations Launch new revenue streams Co-create and scale with customers Accelerate Growth Secure new customers to maximize profitability Expand with existing customers through market penetration Retai ...

Financial Performance - Fourth quarter 2024 revenue was $1.0 billion, a decrease of 9.1% from $1.1 billion in the same quarter of 2023[2] - Net income for the fourth quarter 2024 was $29.0 million, or $1.24 per diluted share, down from $48.8 million, or $2.01 per diluted share in the prior year[2] - Full year 2024 revenue totaled $4.2 billion, a decline of 4.5% compared to $4.4 billion in 2023[3] - Full year net income from continuing operations was $173.4 million, or $7.28 per diluted share, compared to $142.2 million, or $5.77 per diluted share in 2023[3] - Revenues for Q4 2024 were $1,001,645, a decrease of 8.1% from $1,089,535 in Q4 2023[22] - Operating income for Q4 2024 was $38,161, down 40.7% from $64,253 in Q4 2023[22] - The year ended December 31, 2024, saw total consolidated revenues of $4,179,019, a decrease of 5.6% from $4,427,443 in 2023[26] - The consolidated Adjusted EBITDA from continuing operations for the year ended December 31, 2024, was $328,599 thousand, down from $369,566 thousand in 2023[38] Asset Performance - The Asset-Based segment experienced a 6.3% decrease in weight per shipment and a 1.1% decrease in daily shipments in Q4 2024[5] - Asset-Light revenues decreased due to lower revenue per shipment and a 2.1% decline in shipments per day compared to Q4 2023[9] - Asset-Based revenues decreased to $656,220 in Q4 2024 from $709,986 in Q4 2023, while Asset-Light revenues fell to $375,432 from $413,425 in the same period[26] - Operating income from continuing operations for Q4 2024 was $38,161, down 40.7% from $64,253 in Q4 2023[33] - The operating income for the Asset-Based Segment on a GAAP basis was $52,335 thousand with an operating ratio of 92.0% for the three months ended December 31, 2024[34] - The Asset-Light Segment reported an operating loss of $1,579 thousand with an operating ratio of 100.4% for the same period[34] Capital Expenditures and Investments - Total net capital expenditures in 2024 were $288 million, including $160 million for revenue equipment[13] - The company incurred $223,103 in capital expenditures for property, plant, and equipment in 2024, compared to $219,021 in 2023[25] - The company plans to continue opportunistic share repurchases while prioritizing organic capital investments[14] Shareholder Returns - ArcBest returned over $85 million to shareholders in 2024 through share repurchases and dividends[14] Assets and Liabilities - Total current assets decreased to $675,642 in 2024 from $884,783 in 2023, a decline of 23.6%[24] - Total liabilities decreased to $1,115,369 in 2024 from $1,174,000 in 2023, a reduction of 5%[24] - Cash and cash equivalents at the end of 2024 were $127,444, down 51.4% from $262,226 at the end of 2023[25] - Net cash provided by operating activities for 2024 was $285,846, a decrease of 11.2% from $322,167 in 2023[25] - The company reported a net increase in cash and cash equivalents of $(134,782) for 2024, contrasting with an increase of $103,854 in 2023[25] Operating Expenses - Operating expenses from continuing operations totaled $963,484 in Q4 2024, a decrease of 6.0% compared to $1,025,282 in Q4 2023[26] - Total operating expenses for the year ended December 31, 2024, were $3,934,585, a decrease of 7.5% from $4,254,824 in 2023[26] Tax and Legal Matters - The effective tax rate for continuing operations was 22.5% for the three months ended December 31, 2024, compared to 28.0% in the same period of 2023[36] - Legal settlements recorded for the three months ended December 31, 2024, were $274 thousand, down from $9,500 thousand in the same period of 2023[36] Other Financial Metrics - The change in fair value of contingent consideration for the MoLo acquisition was a loss of $9,510 in Q4 2024, compared to a loss of $6,300 in Q4 2023[33] - The change in fair value of contingent consideration for the year ended December 31, 2024, was $(90,250) thousand, significantly impacting the overall income[36] - The total depreciation and amortization for the year ended December 31, 2024, was $149,087 thousand, slightly increasing from $145,349 thousand in 2023[38] - The Asset impairment charges for the year ended December 31, 2024, were $1,700 thousand, a significant decrease from $30,162 thousand in 2023[38] Operational Efficiency - Billed revenue per hundredweight (CWT) increased by 0.6% to $49.27 in Q4 2024, while for the year it rose by 11.7% to $49.68[42] - Tonnage per day decreased by 7.3% to 10,758 in Q4 2024, and for the year it fell by 14.3% to 10,968[42] - Revenue per shipment in the Asset-Light segment decreased by 7.2% in Q4 2024 and by 12.8% for the year[43] - Shipments per employee per day increased by 20.8% in Q4 2024 and by 24.2% for the year in the Asset-Light segment[43] - The average length of haul increased by 3.5% to 1,116 miles in Q4 2024, and by 3.1% for the year to 1,126 miles[42]

Company Overview - ArcBest (ARCB) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended December 2024, with earnings expected to be $1.05 per share, reflecting a decrease of 57.5% compared to the previous year [1][3] - Revenues are projected to be $997.94 million, down 8.4% from the same quarter last year [3] Earnings Estimates and Revisions - The consensus EPS estimate for ArcBest has been revised down by 20.72% over the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for ArcBest is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.91% [10][11] Earnings Surprise Prediction - A positive Earnings ESP reading suggests a potential earnings beat, particularly when combined with a strong Zacks Rank; however, ArcBest currently holds a Zacks Rank of 5, making it challenging to predict an earnings beat [8][11] - Historically, ArcBest has only beaten consensus EPS estimates once in the last four quarters, with a recent surprise of -10.87% in the last reported quarter [12][13] Industry Context - In the Zacks Transportation - Truck industry, Heartland Express (HTLD) is expected to report a loss of $0.04 per share for the same quarter, indicating a year-over-year change of -166.7% [17] - Heartland Express has an Earnings ESP of 25.00% and a Zacks Rank of 3, suggesting a higher likelihood of beating the consensus EPS estimate [18]

Revenue Performance - Consolidated revenues decreased by 5.8% and 4.8% for the three and nine months ended September 30, 2024, compared to the same prior-year periods, primarily due to lower market rates and decreased tonnage levels [109]. - Asset-Based revenues declined by 4.2% and 3.1% for the three and nine months ended September 30, 2024, while Asset-Light revenues decreased by 8.1% and 7.1% for the same periods [109]. - The Asset-Light segment generated approximately 35% and 36% of total revenues for the three and nine months ended September 30, 2024, respectively [111]. - The Asset-Based segment revenues for the three months ended September 30, 2024, totaled $709.7 million, a decrease of 4.2% compared to $741.2 million for the same period in 2023 [134]. - Total shipments decreased by 0.7% for the three months ended September 30, 2024, compared to the same period in 2023, reflecting a softer freight environment [136]. - Tonnage per day decreased by 11.3% for the three months ended September 30, 2024, compared to the same period in 2023, contributing to the revenue decline [134]. Income and Operating Results - Total consolidated operating income increased to $134.993 million for the three months ended September 30, 2024, compared to $45.091 million for the same period in 2023 [108]. - Net income from continuing operations was $100.314 million for the three months ended September 30, 2024, up from $34.927 million in the prior year [108]. - Consolidated net income for the three months ended September 30, 2024, was $100.3 million, compared to $34.9 million for the same period in 2023, representing a significant increase [122]. - Adjusted EBITDA from continuing operations for the three months ended September 30, 2024, was $86.4 million, down from $101.6 million in the prior year, indicating a decrease of approximately 14.9% [122]. - The Asset-Based segment generated operating income of $64.0 million and $190.3 million for the three and nine months ended September 30, 2024, respectively, compared to $74.8 million and $165.6 million for the same periods of 2023 [139]. - The Asset-Light segment operating income totaled $84.8 million and $60.0 million for the three and nine months ended September 30, 2024, compared to an operating loss of $3.7 million and $4.6 million for the same periods of 2023 [157]. Expenses and Impairments - Innovative technology costs decreased consolidated operating results by $8.5 million (pre-tax) for the third quarter of 2024, compared to $14.1 million (pre-tax) for the same period in 2023 [113]. - A one-time, noncash impairment charge of $21.6 million (after-tax) was recognized for the nine months ended September 30, 2024, related to the equity investment in Phantom Auto [115]. - Lease impairment charges reduced operating results by $30.2 million (pre-tax) for the three months ended September 30, 2023 [118]. - Changes in the fair value of contingent earnout consideration reduced expenses by $91.9 million and $80.7 million for the three and nine months ended September 30, 2024, compared to $17.8 million and $12.8 million for the same periods of 2023 [157]. - Labor costs represented 50.5% and 50.4% of Asset-Based segment revenues for the three and nine months ended September 30, 2024, compared to 48.2% and 48.0% for the same periods of 2023 [140]. Cash Flow and Capital Expenditures - Cash provided by operating activities for the nine months ended September 30, 2024, was $229.0 million, an increase of 18.0% compared to $194.0 million in the same prior-year period [183]. - Capital expenditures for the nine months ended September 30, 2024, totaled $163.7 million, with an estimated total for 2024 projected at approximately $300.0 million [184][195]. - Cash, cash equivalents, and short-term investments decreased by $139.0 million from December 31, 2023, to September 30, 2024 [181]. - As of September 30, 2024, cash and cash equivalents decreased to $150.5 million from $262.2 million as of December 31, 2023 [186]. - The company repurchased 478,315 shares of common stock for an aggregate cost of $56.1 million during the nine months ended September 30, 2024 [185][201]. Taxation - The effective tax rate for continuing operations was 26.6% for the three months ended September 30, 2024, compared to 25.5% for the same period in 2023 [211]. - The total provision for income taxes for the nine months ended September 30, 2024, was $36,390 thousand, compared to $25,735 thousand for the same period in 2023 [217]. - The company made federal, state, and foreign tax payments totaling $29.2 million during the nine months ended September 30, 2024 [216]. - The effective tax rate for the nine months ended September 30, 2023, was 23.1%, indicating a decrease in the effective tax rate year-over-year [217]. - The company’s tax benefit from vested RSUs increased significantly due to vesting of RSUs granted in prior years [213]. Market Conditions and Economic Factors - Economic conditions are impacted by higher interest rates, supply chain volatility, and a slowing labor market, with potential disruptions from geopolitical conflicts [166]. - The consumer price index (CPI) increased by 2.4% year-over-year in September 2024, indicating ongoing inflationary pressures [170]. - The soft freight environment resulted in a year-over-year decline in market pricing for many Asset-Light services compared to the first nine months of 2023 [169]. - The estimated settlement expense related to the classification of certain Asset-Light employees under the Fair Labor Standards Act is $9.5 million, with preliminary court approval expected by year-end [179].

Financial Data and Key Metrics Changes - Consolidated revenue decreased by 6% year-over-year to $1.1 billion in Q3 2024 [26] - Non-GAAP operating income from continuing operations was $55 million, down from $75 million in the prior year [26] - Adjusted earnings per share were $1.64, down from $2.31 in Q3 2023 [26] Business Line Data and Key Metrics Changes - Asset-Based segment revenue was $710 million, a daily decrease of 6% [27] - Asset-Light segment revenue was $385 million, a daily decrease of 10% year-over-year [36] - Asset-Based non-GAAP operating ratio increased by 220 basis points year-over-year to 91% [27] Market Data and Key Metrics Changes - Daily shipments in the Asset-Based segment saw a slight decline of less than 1% year-over-year, with weight per shipment decreasing by 11% [28] - Revenue per hundredweight increased by 7% in Q3 2024, with a 5.9% general rate increase implemented on September 9 [30] Company Strategy and Development Direction - The company remains committed to growth, efficiency, and innovation, investing in people, solutions, and technologies [7] - Focus on improving service levels and operational efficiency to enhance margins and customer satisfaction [17][19] - Long-term facility roadmap includes opening remodeled facilities and expanding capacity [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth despite a challenging macro environment, citing strong customer relationships and ongoing service improvements [13] - The company anticipates a moderation in year-over-year revenue decreases, expecting mid-single-digit declines for the quarter [35] - Management highlighted the importance of maintaining pricing discipline and operational efficiency to counteract rising costs [31] Other Important Information - The company returned $65 million to shareholders through share buybacks and dividends year-to-date [41] - Capital expenditure estimates for the year have been revised downward to approximately $300 million [41] Q&A Session Summary Question: Trends in pricing environment and customer retention - Management noted that pricing trends remained consistent throughout the quarter, with good retention rates among customers [45][47] Question: Service improvements and cost implications - Management emphasized that service improvements have been achieved without significantly increasing costs, focusing on efficiency and productivity [49][50] Question: Revenue per day expectations - Management indicated that revenue per day is expected to improve as the quarter progresses, driven by easier year-over-year comparisons [54] Question: Weight per shipment dynamics - Management explained that lower weight per shipment is influenced by a shift of higher weight LTL shipments to the truckload market and lower household goods moves due to economic conditions [61][62] Question: Asset-Light segment profitability - Management discussed strategies to improve profitability in the Asset-Light segment, including focusing on account-level profitability and cost control measures [92][96]

ArcBest and and the state of the state of the state of the states of | --- | --- | |----------|-------| | | | | Earnings | | | --- ...

For the quarter ended September 2024, ArcBest (ARCB) reported revenue of $1.06 billion, down 5.8% over the same period last year. EPS came in at $1.64, compared to $2.31 in the year-ago quarter.The reported revenue represents a surprise of -0.37% over the Zacks Consensus Estimate of $1.07 billion. With the consensus EPS estimate being $1.84, the EPS surprise was -10.87%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine thei ...

ArcBest (ARCB) came out with quarterly earnings of $1.64 per share, missing the Zacks Consensus Estimate of $1.84 per share. This compares to earnings of $2.31 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -10.87%. A quarter ago, it was expected that this freight transportation and logistics company would post earnings of $2.03 per share when it actually produced earnings of $1.98, delivering a surprise of -2.46%.Over the la ...

Exhibit 99.1 Investor Relations Contact: Amy Mendenhall Media Contact: Autumnn Mahar Phone: 479-785-6200 Phone: 479-494-8221 Email: invrel@arcb.com Email: amahar@arcb.com ArcBest Announces Third Quarter 2024 Results ● Continued focus on cost control initiatives to mitigate headwinds from challenging freight environment ● Productivity gains from technology, training, and network design ● Service improvements, including Mastio recognizing ABF for exceeding the industry benchmark on service FORT SMITH, Arkansa ...