June 30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 5, 2023 (
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Emerging growth company
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ITEM 7.01 – REGULATION FD DISCLOSURE
ArcBest® (Nasdaq: ARCB) is providing its regular monthly update on the most recent information related to its fourth quarter 2023 financial results and business trends.
Asset-Based Operating Segment
Year-over-Year Monthly Business Trends:
| September 2023(1) |
| October 2023(1) |
| November 2023(2) |
| ||||
Billed Revenue/Day(3) | -0.4 | % | +3.9 | % | -4 | % | ||||
Total Tons/Day |
| -6.6 | % |
| -4.0 | % |
| -10 | % | |
Total Shipments/Day |
| +0.9 | % |
| +3.7 | % |
| -5 | % | |
Total Billed Revenue/CWT | +6.6 | % | +8.1 | % | +6 | % | ||||
Total Billed Revenue/Shipment | -1.4 | % | +0.1 | % | Flat | |||||
Total Weight/Shipment | -7.5 | % | -7.4 | % | -5 | % | ||||
| 1) | September and October 2023 metrics represent actual results. There were 20 workdays in September 2023 and 21 workdays in September 2022. There were 22 workdays in October 2023 and 21 workdays in October 2022. |
| 2) | November 2023 metrics have not been finalized and are preliminary. There were 20 workdays in November 2023 and November 2022. |
| 3) | Revenue for undelivered freight is deferred for financial statement purposes in accordance with the Asset-Based segment revenue recognition policy. Billed revenue per day has not been adjusted for the portion of revenue deferred for financial statement purposes. |
The company has reduced shipments sourced from the Asset-Based tech-enabled dynamic LTL-rated, market-based pricing program in November 2023 compared to the prior year to optimize operating income and service. Pricing discipline in the industry remains strong, and the company continues to see results from its cost reduction efforts while preserving the ability to serve customers as macro conditions improve.
Excluding periods affected by the pandemic, the average sequential change in ArcBest’s Asset-Based operating ratio from the third quarter to the fourth quarter during the prior ten years has been an increase of 100 to 300 basis points, with the higher end of the range experienced during declining economic environments. The Asset-Based segment’s fourth quarter 2023 results have benefited from helping customers navigate recent market disruptions, other commercial successes, cost reduction efforts and a general rate increase (GRI) implemented early in the quarter. The Asset-Based operating ratio is expected to be flat to slightly lower for fourth quarter 2023 compared to third quarter 2023.
Asset-Light Operating Segment
| October 2023(1) |
| November 2023(2) |
| ||||
Revenue/Day (Year-over-Year) | -15.4 | % | -15 | % | ||||
Purchased Transportation Expense as a % of Revenue |
| 86.2 | % |
| 86 | % | ||
Shipments/Day (Year-over-Year)(3) | -5.1 | % | -6 | % | ||||
Revenue/Shipment (Year-over-Year)(3) | -16.8 | % | -17 | % | ||||
| 1) | October 2023 metrics represent actual results. There were 22 workdays in October 2023 and 21 workdays in October 2022. |
| 2) | November 2023 metrics have not been finalized and are preliminary. There were 20 workdays in November 2023 and November 2022. |
| 3) | Changes in Shipments/Day and Revenue/Shipment do not include managed transportation solutions transactions for the Asset-Light segment for the periods presented. |
The year-over-year changes in Asset-Light revenue per day results primarily reflect continued softness in the truckload brokerage market offset by continued growth in the company’s managed transportation solutions business. Comparing third quarter 2023 to fourth quarter 2023, revenue is expected to remain relatively flat while purchased transportation expense as a percentage of revenue is expected to improve slightly. Fourth quarter 2023 non-GAAP operating expenses are expected to be comparable to third quarter 2023 levels. Overall, non-GAAP operating results for the Asset-Light segment are expected to improve from third quarter 2023 to fourth quarter 2023.
The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: Certain statements and information in this exhibit may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding (i) our expectations about our intrinsic value or our prospects for growth and value creation and (ii) our financial outlook, position, strategies, goals, and expectations. Terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “foresee,” “intend,” “may,” “plan,” “predict,” “project,” “scheduled,” “should,” “would,” and similar expressions and the negatives of such terms are intended to identify forward-looking statements. These statements are based on management’s beliefs, assumptions, and expectations based on currently available information, are not guarantees of future performance, and involve certain risks and uncertainties (some of which are beyond our control). Although we believe that the expectations reflected in these forward-looking statements are reasonable as and when made, we cannot provide assurance that our expectations will prove to be correct. Actual outcomes and results could materially differ from what is expressed, implied, or forecasted in these statements due to a number of factors, including, but not limited to: the effects of a widespread outbreak of an illness or disease, including the COVID-19 pandemic, or any other public health crisis, as well as regulatory measures implemented in response to such events; external events which may adversely affect us or the third parties who provide services for us, for which our business continuity plans may not adequately prepare us, including, but not limited to, acts of war or terrorism, or military conflicts; data privacy breaches, cybersecurity incidents, and/or failures of our information systems, including disruptions or failures of services essential to our operations or upon which our information technology platforms rely; interruption or failure of third-party software or information technology systems or licenses; untimely or ineffective development and implementation of, or failure to realize the potential benefits associated with, new or enhanced technology or processes, including the freight handling pilot test program at ABF Freight and our customer pilot offering of Vaux, including human-centered remote operation software; the loss or reduction of business from large customers; the timing and performance of growth initiatives and the ability to manage our cost structure; the cost, integration, and performance of any recent or future acquisitions, including the acquisition of MoLo Solutions, LLC, and the inability to realize the anticipated benefits of the acquisition within the expected time period or at all; maintaining our corporate reputation and intellectual property rights; nationwide or global disruption in the supply chain resulting in increased volatility in freight volumes; competitive initiatives and pricing pressures; increased prices for and decreased availability of new revenue equipment, decreases in value of used revenue equipment, and higher costs of equipment-related operating expenses such as maintenance, fuel, and related taxes; availability of fuel, the effect of volatility in fuel prices and the associated changes in fuel surcharges on securing increases in base freight rates, and the inability to collect fuel surcharges; relationships with employees, including unions, and our ability to attract, retain, and upskill employees; unfavorable terms of, or the inability to reach agreement on, future collective bargaining agreements or a workforce stoppage by our employees covered under ABF Freight’s collective bargaining agreement; union employee wages and benefits, including changes in required contributions to multiemployer plans; availability and cost of reliable third-party services; our ability to secure independent owner operators and/or operational or regulatory issues related to our use of their services; litigation or claims asserted against us; governmental regulations; environmental laws and regulations, including emissions-control regulations; default on covenants of financing arrangements and the availability and terms of future financing arrangements; our ability to generate sufficient cash from operations to support significant ongoing capital expenditure requirements and other business initiatives; self-insurance claims and insurance premium costs; potential impairment of goodwill and intangible assets; general economic conditions and related shifts in market demand that impact the performance and needs of industries we serve and/or limit our customers’ access to adequate financial resources; increasing costs due to inflation and rising interest rates; seasonal fluctuations, adverse weather conditions, natural disasters, and climate change; and other financial, operational, and legal risks and uncertainties detailed from time to time in ArcBest Corporation’s public filings with the Securities and Exchange Commission (“SEC”).
For additional information regarding known material factors that could cause our actual results to differ from those expressed in these forward-looking statements, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10 Q, and Current Reports on Form 8 K.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events, or otherwise.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ARCBEST CORPORATION | |||
(Registrant) | |||
Date: | December 5, 2023 | /s/ Michael R. Johns | |
Michael R. Johns | |||
Chief Legal Officer | |||
and Corporate Secretary | |||
Document and Entity Information |
Dec. 05, 2023 |
|---|---|
| Cover [Abstract] | |
| Document Type | 8-K |
| Document Period End Date | Dec. 05, 2023 |
| Entity Registrant Name | ARCBEST CORPORATION |
| Entity Incorporation, State or Country Code | DE |
| Entity File Number | 0-19969 |
| Entity Tax Identification Number | 71-0673405 |
| Entity Address, Address Line One | 8401 McClure Drive |
| Entity Address, City or Town | Fort Smith |
| Entity Address, State or Province | AR |
| Entity Address, Postal Zip Code | 72916 |
| City Area Code | 479 |
| Local Phone Number | 785-6000 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Title of 12(b) Security | Common Stock $0.01 Par Value |
| Trading Symbol | ARCB |
| Security Exchange Name | NASDAQ |
| Entity Emerging Growth Company | false |
| Entity Central Index Key | 0000894405 |
| Amendment Flag | false |