ArcBest(ARCB) - 2024 Q4 - Annual Results

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]