ArcBest(ARCB) - 2024 Q4 - Annual Report

Financial Performance - Revenues for 2024 were $4,179,019, a decrease of 5.6% from $4,427,443 in 2023[455] - Operating income increased to $244,434 in 2024, up 41.6% from $172,619 in 2023[455] - Net income from continuing operations was $173,361, representing a 22% increase compared to $142,164 in 2023[455] - Net income for 2024 was $173.961 million, a decrease of 10.9% from $195.433 million in 2023 and a significant drop from $298.209 million in 2022[460] - The company reported a total comprehensive income of $169,909 in 2024, down from $192,654 in 2023[457] - Total consolidated revenues decreased to $4.179 billion in 2024 from $4.427 billion in 2023, a decline of approximately 5.6%[622] - The Asset-Based segment generated revenues of $2.750 billion in 2024, down from $2.871 billion in 2023, a decrease of 4.2%[622] - The Asset-Light segment's revenues fell to $1.553 billion in 2024 from $1.681 billion in 2023, a decline of 7.6%[622] Assets and Liabilities - Total current assets decreased to $675,642 in 2024, down 23.6% from $884,783 in 2023[454] - Total assets decreased to $2,429,731 in 2024, down 2.2% from $2,485,094 in 2023[454] - Total stockholders' equity increased to $1,314,362 in 2024, up 5.8% from $1,242,363 in 2023[454] - Cash and cash equivalents decreased to $127,444 in 2024, down 51.4% from $262,226 in 2023[454] - Total accrued expenses increased to $394.9 million in 2024 from $378.0 million in 2023, driven by higher workers' compensation and casualty claims reserves[569] - Long-term debt as of December 31, 2024, totaled $189.1 million, an increase from $178.9 million in 2023, with a weighted-average interest rate of 4.6%[557] Cash Flow and Investments - The Company reported net cash provided by operating activities of $285.846 million in 2024, down from $322.167 million in 2023[460] - The Company purchased property, plant, and equipment totaling $223.103 million in 2024, compared to $219.021 million in 2023[460] - Cash and cash equivalents at the end of 2024 were $127.444 million, a decrease from $262.226 million at the end of 2023[460] - The fair value of the company's equity investment in Phantom Auto increased by $3.7 million in 2023[627] Market Risks - Future borrowings under the Credit Facility and A/R Securitization are at a SOFR based variable interest rate, exposing the company to interest rate risks[435] - The company is exposed to market risk from changes in interest rates, diesel fuel prices, and foreign currency exchange rates[433] - The company has not engaged in a program for fuel price hedging and had no fuel hedging agreements outstanding as of December 31, 2024[438] - The company has not entered into any foreign currency forward exchange contracts to hedge against adverse fluctuations in foreign currency exchange rates[440] Employee and Pension Obligations - The Company recognized discretionary contribution expenses of $11.5 million in 2024, compared to $13.1 million in 2023 and $19.1 million in 2022[580] - The Company reported a matching expense for nonunion 401(k) plans totaling $9.2 million in 2024, up from $7.1 million in 2023[580] - Approximately 4% of ABF Freight's multiemployer pension plan contributions in 2024 were made to plans in "critical and declining status" and 54% to plans in "critical status"[592] - The funded percentage of the Central States Pension Plan was reported at 98.5% as of January 1, 2023, despite being in critical status through 2051 due to SFA Program funding[599] Shareholder Returns - The Company declared dividends on common stock amounting to $11.295 million in 2024, slightly down from $11.542 million in 2023[460] - Dividends declared for 2024 were consistent at $0.12 per share across all four quarters, totaling approximately $11.3 million for the year[608] - In 2024, the company repurchased 654,707 shares for a total cost of $75.2 million, leaving $56.6 million remaining under the share repurchase program[611] Impairments and Write-offs - The company recorded a pre-tax, noncash impairment charge of $28.7 million for its equity investment in Phantom Auto in Q1 2024 due to the company's cessation of operations[530] - The accumulated impairment of goodwill remained at $20 million as of December 31, 2024, with no impairment identified during the annual evaluation[537] - The company recorded impairment charges for revenue equipment and software totaling $1.7 million in Q4 2024 as part of a strategic decision to adjust capacity[531] Revenue Recognition and Accounting Policies - The company recognizes revenue based on the expense incurred relative to each shipment's transit time, utilizing a bill-by-bill analysis for revenue recognition[501] - The company estimates variable consideration for discounts based on historical expectations, ensuring revenue recognition aligns with actual amounts earned[502] - The company has adopted an amendment to ASC Topic 280, enhancing disclosures of significant segment expenses, effective from the fourth quarter of 2024[515]