ArcBest(US:ARCB)2023-02-23 16:00Financial Performance - Total revenues for 2022 reached $5,324,052 thousand, a 33.6% increase from $3,980,067 thousand in 2021[457]. - Operating income for 2022 was $399,269 thousand, up 42.2% from $280,986 thousand in 2021[457]. - Net income for 2022 was $298,209 thousand, representing a 39.5% increase compared to $213,521 thousand in 2021[460]. - Basic earnings per share for 2022 were $12.13, a 44.5% increase from $8.38 in 2021[457]. - Operating expenses for 2022 were $4,924,783 thousand, an increase of 33.2% from $3,699,081 thousand in 2021[457]. Assets and Liabilities - Total current assets increased to $989,783 thousand in 2022, up 27.5% from $776,053 thousand in 2021[456]. - Total assets grew to $2,494,286 thousand in 2022, a 17.9% increase from $2,112,676 thousand in 2021[456]. - Total stockholders' equity rose to $1,151,401 thousand in 2022, up 24% from $929,067 thousand in 2021[456]. - The company’s total liabilities related to the postretirement health benefit plan are measured based on various assumptions, including discount rates and expected retirement age[503]. - Long-term debt, less current portion, was $198.371 million as of December 31, 2022, up from $174.917 million in 2021, reflecting a 13.4% increase[569]. Cash Flow - The company reported net cash provided by operating activities of $470,819 thousand in 2022, up from $323,515 thousand in 2021, indicating a 45.5% increase[466]. - Cash and cash equivalents at the end of 2022 were $158,372 thousand, compared to $76,620 thousand at the end of 2021, marking a 106.5% increase[466]. - The company reported a net cash used in financing activities of $127,984 thousand in 2022, a decrease from $247,645 thousand in 2021[466]. Market Risks - The company is exposed to market risks from changes in interest rates, diesel fuel prices, and foreign currency exchange rates[431]. - The company anticipates challenges from inflation and rising interest rates affecting operational costs[431]. - The interest rate swap agreement converts $50.0 million of borrowings under the Credit Facility from variable-rate to fixed-rate interest at 1.55%[433]. Insurance and Reserves - The company's aggregate insurance reserves accrual was $122.8 million, related to workers' compensation and third-party casualty claims[449]. - The allowance for credit losses on trade accounts receivable was $9.4 million as of December 31, 2022, an increase of $6.9 million from the previous year[477]. - The Company is self-insured for certain claims up to specified limits, with liabilities based on case reserves and independent actuarial analysis[492]. Acquisitions and Goodwill - The total purchase consideration for the MoLo acquisition was $330.8 million, which includes $237.1 million in net cash consideration and $93.7 million in contingent consideration[538]. - The goodwill recorded from the MoLo acquisition amounted to $219.0 million, reflecting the excess purchase price over the fair value of net assets acquired[540]. - As of December 31, 2022, total goodwill increased to $305,382 thousand from $300,337 thousand in 2021, reflecting an acquisition of MoLo[545]. Taxation - The total provision for income taxes in 2022 was $94,946 thousand, an increase from $63,633 thousand in 2021[552]. - The effective tax rate for 2022 was 24.1%, compared to 23.0% in 2021[555]. - Income taxes paid in 2022 totaled $148.7 million, significantly higher than $77.5 million in 2021[555]. Pension and Employee Benefits - ABF Freight contributed approximately $154.6 million to multiemployer pension plans in 2022, an increase from $146.9 million in 2021, reflecting a year-over-year growth of about 5.4%[622]. - The company's pension and postretirement liabilities, less current portion, were $338 million in 2022 compared to $381 million in 2021, indicating a decrease of 11.3%[593]. - The company's matching expense for nonunion 401(k) plans increased to $9.4 million in 2022 from $7.7 million in 2021, a rise of 22.1%[608].