ArcBest® Announces Second Quarter 2021 Results

  • Oops!
    Something went wrong.
    Please try again later.
·14 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

- Second quarter 2021 revenue of $949.0 million, and net income of $61.0 million, or $2.27 per diluted share. On a non-GAAP1 basis, second quarter 2021 net income of $53.1 million, or $1.97 per diluted share.

- Highest quarterly revenue and operating income in ArcBest's history.

FORT SMITH, Ark., Aug. 2, 2021 /PRNewswire/ -- ArcBest® (Nasdaq: ARCB), a leader in supply chain logistics, today reported second quarter 2021 revenue of $949.0 million compared to second quarter 2020 revenue of $627.4 million. ArcBest's second quarter 2021 operating income was $74.3 million and net income was $61.0 million, or $2.27 per diluted share compared to second quarter 2020 operating income of $20.4 million and net income of $15.9 million, or $0.61 per diluted share.

ArcBest Logo (PRNewsFoto/ArcBest Corporation) (PRNewsfoto/ArcBest)
ArcBest Logo (PRNewsFoto/ArcBest Corporation) (PRNewsfoto/ArcBest)

Excluding certain items in both periods as identified in the attached reconciliation tables, non-GAAP operating income was $74.8 million in second quarter 2021 compared to second quarter 2020 operating income of $25.1 million. On a non-GAAP basis, net income was $53.1 million, or $1.97 per diluted share in second quarter 2021 compared to second quarter 2020 net income of $17.6 million, or $0.67 per diluted share.

"We're very pleased to report record results for the second consecutive quarter," said Judy R. McReynolds, ArcBest chairman, president and CEO. "Our strong results for the first half of 2021 reflect our tireless execution in a period of extremely tight capacity and high demand. We put the customer at the center of everything we do, and we're seeing our approach pay off as we work alongside shippers and capacity providers to solve their complex challenges."

1.

U.S. Generally Accepted Accounting Principles

Second Quarter Results of Operations Comparisons

Asset-Based

Second Quarter 2021 Versus Second Quarter 2020

  • Revenue of $652.8 million compared to $460.1 million, a per-day increase of 41.9 percent.

  • Total tonnage per day increase of 22.7 percent, with double-digit percentage increases in both LTL-rated tonnage and TL-rated spot shipment tonnage moving in the Asset-Based network.

  • Total shipments per day increase of 13.5 percent including a 13.7 percent increase in LTL-rated shipments per day and an increase of 10.8 percent in LTL-rated weight per shipment.

  • Total billed revenue per hundredweight increased 15.4 percent and was positively impacted by higher fuel surcharges. Revenue per hundredweight on LTL-rated business, excluding fuel surcharge, improved by a percentage in the mid-single digits.

  • Operating income of $63.9 million and an operating ratio of 90.2 percent compared to the prior year quarter operating income of $21.0 million and an operating ratio of 95.4 percent. On a non-GAAP basis, operating income of $71.4 million and an operating ratio of 89.0 percent compared to the prior year quarter operating income of $25.8 million and an operating ratio of 94.4 percent.

ArcBest's Asset-Based business continued to benefit from increasing customer demand and a solid pricing environment that contributed to record-setting revenue and profits. This quarter's results compared favorably to the second quarter of 2020 which was significantly impacted by the COVID-19 pandemic. Considering the strength of business from core customers, along with unseasonable demand for household goods moving services which was earlier in the year than normal, Asset-Based shipment mix was managed for customer service levels, while optimizing revenue. In response to the need for increased use of local and linehaul purchased transportation to supplement the Asset-Based network and meet customers' needs, second quarter hiring initiatives were successful and should produce future benefits.

Asset-Light

Second Quarter 2021 Versus Second Quarter 2020

  • Revenue of $330.3 million compared to $197.9 million, a per-day increase of 66.9 percent.

  • Operating income of $16.3 million compared to the prior year quarter operating income of $2.1 million. Operating income includes a $6.9 million gain on the sale of the labor services portion of the Asset-Light moving business. Non-GAAP operating income, as detailed in the attached reconciliation tables, excludes the gain on the sale of the moving services subsidiary and totaled $9.3 million in second quarter 2021.

  • Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") of $19.0 million compared to the prior year quarter Adjusted EBITDA of $4.9 million, as detailed in the attached reconciliation tables.

Solid customer demand and higher market rates resulting from continued tightness in available truckload capacity translated into strong second quarter revenue growth in the ArcBest segment. The increased need for expedite service and managed logistics solutions, along with new account growth, contributed to higher shipment levels and profitability. The operating income improvement reflects higher revenue, partially offset by investments in technology and personnel associated with shipment growth. ArcBest continued to benefit from strong relationships with carrier partners to meet customers' needs in a tight market.

An increase in revenue per event combined with an increase in total events contributed to total revenue and profitability growth for FleetNet.

Closing Comments

"We are experiencing a strong start to 2021 and I'm proud of the work our leaders and employees are doing on behalf of our customers as their businesses normalize," McReynolds said. "Providing assured capacity is a shared mindset of employees across our organization."

NOTE

‡ - The ArcBest and FleetNet reportable segments, combined, represent Asset-Light operations.

Conference Call

ArcBest will host a conference call with company executives to discuss the 2021 second quarter results. The call will be today, Monday, August 2, at 9:30 a.m. EDT (8:30 a.m. CDT). Interested parties are invited to listen by calling (800) 926-9871. Following the call, a recorded playback will be available through the end of the day on September 15, 2021. To listen to the playback, dial (800) 633–8284 or (402) 977–9140 (for international callers). The conference call ID for the playback is 21995988. The conference call and playback can also be accessed, through September 15, 2021, on ArcBest's website at arcb.com.

About ArcBest

ArcBest® (Nasdaq: ARCB) is a leading logistics company with creative problem solvers who deliver innovative solutions for our customers' supply chain needs. We'll find a way to deliver knowledge, expertise and a can-do attitude with every shipment and supply chain solution, household move or vehicle repair. At ArcBest, we're More Than Logistics®. For more information, visit arcb.com.

The following is a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995: Certain statements and information in this press release concerning results for the three months ended June 30, 2021 may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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: widespread outbreak of an illness or disease, including the COVID-19 pandemic and its effects, 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; a failure of our information systems, including disruptions or failures of services essential to our operations or upon which our information technology platforms rely, data breach, and/or cybersecurity incidents; interruption or failure of third-party software or information technology systems or licenses; untimely or ineffective development and implementation of, or failure to realize potential benefits associated with, new or enhanced technology or processes, including the pilot test program at ABF Freight; the loss or reduction of business from large customers; the ability to manage our cost structure, and the timing and performance of growth initiatives; maintaining our corporate reputation and intellectual property rights; 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 develop 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; 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; seasonal fluctuations and adverse weather conditions; 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 (the "SEC").

For additional information regarding known material factors that could cause our actual results to differ from our projected results, 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.

Investor Relations Contact: David Humphrey
Title: Vice President – Investor Relations
Phone: 479-785-6200
Email: dhumphrey@arcb.com

Financial Data and Operating Statistics

The following tables show financial data and operating statistics on ArcBest® and its reportable segments.

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

















Three Months Ended


Six Months Ended




June 30


June 30




2021


2020


2021


2020




(Unaudited)




($ thousands, except share and per share data)


REVENUES


$

948,973


$

627,370


$

1,778,186


$

1,328,769
















OPERATING EXPENSES



874,674



606,945



1,671,696



1,300,525
















OPERATING INCOME



74,299



20,425



106,490



28,244
















OTHER INCOME (COSTS)














Interest and dividend income



322



991



714



2,366


Interest and other related financing costs



(2,274)



(3,378)



(4,702)



(6,325)


Other, net



1,111



2,696



2,303



(1,166)





(841)



309



(1,685)



(5,125)
















INCOME BEFORE INCOME TAXES



73,458



20,734



104,805



23,119
















INCOME TAX PROVISION



12,477



4,854



20,463



5,337
















NET INCOME


$

60,981


$

15,880


$

84,342


$

17,782
















EARNINGS PER COMMON SHARE














Basic


$

2.38


$

0.62


$

3.30


$

0.70


Diluted


$

2.27


$

0.61


$

3.13


$

0.68
















AVERAGE COMMON SHARES OUTSTANDING














Basic



25,586,353



25,463,559



25,522,453



25,468,624


Diluted



26,910,796



26,217,957



26,926,133



26,252,486
















CASH DIVIDENDS DECLARED PER COMMON SHARE


$

0.08


$

0.08


$

0.16


$

0.16


ARCBEST CORPORATION

CONSOLIDATED BALANCE SHEETS











June 30


December 31




2021


2020




(Unaudited)


Note




($ thousands, except share data)


ASSETS








CURRENT ASSETS








Cash and cash equivalents


$

362,619


$

303,954


Short-term investments



59,967



65,408


Accounts receivable, less allowances (2021 - $7,396; 2020 - $7,851)



360,498



320,870


Other accounts receivable, less allowances (2021 - $667; 2020 - $660)



13,284



14,343


Prepaid expenses



36,355



37,774


Prepaid and refundable income taxes



5,871



11,397


Other



4,937



4,422


TOTAL CURRENT ASSETS



843,531



758,168










PROPERTY, PLANT AND EQUIPMENT








Land and structures



345,829



342,178


Revenue equipment



933,264



916,760


Service, office, and other equipment



239,462



233,810


Software



170,528



163,193


Leasehold improvements



15,835



15,156





1,704,918



1,671,097


Less allowances for depreciation and amortization



1,038,974



992,407





665,944



678,690










GOODWILL



86,368



88,320


INTANGIBLE ASSETS, NET



53,084



54,981


OPERATING RIGHT-OF-USE ASSETS



109,860



115,195


DEFERRED INCOME TAXES



6,419



6,158


OTHER LONG-TERM ASSETS



76,267



77,496




$

1,841,473


$

1,779,008










LIABILITIES AND STOCKHOLDERS' EQUITY
















CURRENT LIABILITIES








Accounts payable


$

204,124


$

170,898


Income taxes payable



7,357



316


Accrued expenses



260,185



246,746


Current portion of long-term debt



66,644



67,105


Current portion of operating lease liabilities



21,950



21,482


TOTAL CURRENT LIABILITIES



560,260



506,547










LONG-TERM DEBT, less current portion



171,075



217,119


OPERATING LEASE LIABILITIES, less current portion



92,811



97,839


POSTRETIREMENT LIABILITIES, less current portion



18,514



18,555


OTHER LONG-TERM LIABILITIES



35,722



37,948


DEFERRED INCOME TAXES



64,957



72,407










STOCKHOLDERS' EQUITY








Common stock, $0.01 par value, authorized 70,000,000 shares;
issued 2021: 29,317,699 shares; 2020: 29,045,309 shares



293



290


Additional paid-in capital



338,263



342,354


Retained earnings



676,179



595,932


Treasury stock, at cost, 2021: 3,783,227 shares; 2020: 3,656,938 shares



(119,273)



(111,173)


Accumulated other comprehensive income



2,672



1,190


TOTAL STOCKHOLDERS' EQUITY



898,134



828,593




$

1,841,473


$

1,779,008



Note: The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.


ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS











Six Months Ended




June 30




2021


2020




Unaudited




($ thousands)


OPERATING ACTIVITIES








Net income


$

84,342


$

17,782


Adjustments to reconcile net income to net cash provided by operating activities:








Depreciation and amortization



58,709



56,140


Amortization of intangibles



1,927



1,959


Pension settlement expense





89


Share-based compensation expense



5,678



5,071


Provision for losses on accounts receivable



(334)



999


Change in deferred income taxes



(7,612)



(5,170)


Gain on sale of property and equipment and lease termination



(8,408)



(3,581)


Gain on sale of subsidiaries



(6,923)




Changes in operating assets and liabilities:








Receivables



(37,745)



9,626


Prepaid expenses



1,419



1,444


Other assets



25



4,358


Income taxes



12,275



8,413


Operating right-of-use assets and lease liabilities, net



761



(230)


Accounts payable, accrued expenses, and other liabilities



41,786



(14,833)


NET CASH PROVIDED BY OPERATING ACTIVITIES



145,900



82,067










INVESTING ACTIVITIES








Purchases of property, plant and equipment, net of financings



(25,395)



(16,209)


Proceeds from sale of property and equipment



10,864



7,670


Proceeds from sale of subsidiaries



9,013




Purchases of short-term investments



(43,690)



(97,493)


Proceeds from sale of short-term investments



49,165



46,725


Capitalization of internally developed software



(9,477)



(6,495)


NET CASH USED IN INVESTING ACTIVITIES



(9,520)



(65,802)










FINANCING ACTIVITIES








Borrowings under credit facilities





180,000


Borrowings under accounts receivable securitization program





45,000


Payments on long-term debt



(54,643)



(29,185)


Net change in book overdrafts



(922)



615


Deferred financing costs



(189)




Payment of common stock dividends



(4,095)



(4,082)


Purchases of treasury stock



(8,100)



(3,162)


Payments for tax withheld on share-based compensation



(9,766)



(1,070)


NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES



(77,715)



188,116










NET INCREASE IN CASH AND CASH EQUIVALENTS



58,665



204,381


Cash and cash equivalents at beginning of period



303,954



201,909


CASH AND CA...


$

362,619


$

406,290










NONCASH INVESTING ACTIVITIES








Equipment financed


$

8,138


$

13,566


Accruals for equipment received


$

5,984


$

857


Lease liabilities arising from obtaining right-of-use assets

...

$

6,051


$

23,727


ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS




























Three Months Ended



Six Months Ended




June 30



June 30




2021



2020



2021



2020




Unaudited




($ thousands, except percentages)


REVENUES

























Asset-Based


$

652,832





$

460,070





$

1,209,124





$

975,783





























ArcBest



270,748






151,467






523,084






316,242




FleetNet



59,547






46,440






118,710






98,879




Total Asset-Light



330,295






197,907






641,794






415,121





























Other and eliminations



(34,154)






(30,607)






(72,732)






(62,135)




Total consolidated revenues


$

948,973





$

627,370





$

1,778,186





$

1,328,769





























OPERATING EXPENSES

























Asset-Based

























Salaries, wages, and benefits


$

302,370


46.3

%


$

248,995


54.1

%


$

588,064


48.6

%


$

532,833


54.6

%

Fuel, supplies, and expenses



64,689


9.9




45,675


9.9




125,530


10.4




106,900


11.0


Operating taxes and licenses



12,303


1.9




11,629


2.5




24,551


2.0




24,423


2.5


Insurance



9,454


1.4




8,247


1.8




18,393


1.5




16,071


1.6


Communications and utilities



4,663


0.7




4,342


1.0




9,633


0.8




9,053


0.9


Depreciation and amortization



23,308


3.6




23,327


5.1




46,792


3.9




46,597


4.8


Rents and purchased transportation



95,082


14.6




46,152


10.0




170,670


14.1




101,922


10.4


Shared services



69,372


10.6




45,605


9.9




125,238


10.4




94,490


9.7


Gain on sale of property and equipment(1)



71





(1,175)


(0.2)




(8,624)


(0.7)




(3,339)


(0.3)


Innovative technology costs(2)



7,532


1.2




4,789


1.0




14,400


1.2




9,322


1.0


Other



77





1,448


0.3




511





3,235


0.3


Total Asset-Based



588,921


90.2

%



439,034


95.4

%



1,115,158


92.2

%



941,507


96.5

%


























ArcBest

























Purchased transportation



226,603


83.7

%



125,090


82.6

%



437,598


83.6

%



262,272


82.9

%

Supplies and expenses



2,476


0.9




1,989


1.3




5,044


1.0




4,269


1.3


Depreciation and amortization(3)



2,366


0.9




2,449


1.6




4,752


0.9




4,919


1.6


Shared services



29,078


10.7




18,840


12.4




55,150


10.5




40,567


12.8


Gain on sale of subsidiaries(4)



(6,923)


(2.6)








(6,923)


(1.3)






Other



2,021


0.8




1,796


1.2




4,071


0.8




4,321


1.4





255,621


94.4

%



150,164


99.1

%



499,692


95.5

%



316,348


100.0

%

FleetNet



58,409


98.1

%



45,658


98.3

%



116,549


98.2

%



97,057


98.2

%

Total Asset-Light



314,030






195,822






616,241






413,405





























Other and eliminations(5)



(28,277)






(27,911)






(59,703)






(54,387)




Total consolidated operating expenses


$

874,674


92.2

%


$

606,945


96.7

%


$

1,671,696


94.0

%


$

1,300,525


97.9

%


























OPERATING INCOME (LOSS)

























Asset-Based


$

63,911





$

21,036





$

93,966





$

34,276





























ArcBest



15,127






1,303






23,392






(106)




FleetNet



1,138






782






2,161






1,822




Total Asset-Light



16,265






2,085






25,553






1,716





























Other and eliminations(5)



(5,877)






(2,696)






(13,029)






(7,748)




Total consolidated operating income


$

74,299





$

20,425





$

106,490





$

28,244








1)

The six months ended June 30, 2021 includes an $8.6 million gain on the sale of an unutilized service center property.

2)

Represents costs associated with the freight handling pilot test program at ABF Freight.

3)

Depreciation and amortization consists primarily of amortization of intangibles, including customer relationships, and software associated with acquired businesses.

4)

Gain recognized for the three and six months ended June 30, 2021 relates to the sale of the labor services portion of the ArcBest segment's moving business in May 2021.

5)

"Other and eliminations" includes corporate costs for certain unallocated shared service costs which are not attributable to any segment, additional investments to offer comprehensive transportation and logistics services across multiple operating segments, and other investments in ArcBest technology and innovations, including innovative technology costs.


ARCBEST CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

Non-GAAP Financial Measures
We report our financial results in accordance with generally accepted accounting principles ("GAAP"). However, management believes that certain non-GAAP performance measures and ratios utilized for internal analysis provide analysts, investors, and others the same information that we use internally for purposes of assessing our core operating performance and provides meaningful comparisons between current and prior period results, as well as important information regarding performance trends. The use of certain non-GAAP measures improves comparability in analyzing our performance because it removes the impact of items from operating results that, in management's opinion, do not reflect our core operating performance. Other companies may calculate non-GAAP measures differently; therefore, our calculation may not be comparable to similarly titled measures of other companies. Certain information discussed in the scheduled conference call could be considered non-GAAP measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results. These financial measures should not be construed as better measurements than operating income, operating cash flow, net income or earnings per share, as determined under GAAP.

















Three Months Ended


Six Months Ended



June 30



June 30




2021


2020



2021



2020


ArcBest Corporation - Consolidated


(Unaudited)




($ thousands, except per share data)


Operating Income














Amounts on GAAP basis


$

74,299


$

20,425


$

106,490


$

28,244


Innovative technology costs, pre-tax(1)



7,432



4,699



14,342



9,299


Gain on sale of subsidiaries, pre-tax(2)



(6,923)





(6,923)




Non-GAAP amounts


$

74,808


$

25,124


$

113,909


$

37,543
















Net Income














Amounts on GAAP basis


$

60,981


$

15,880


$

84,342


$

17,782


Innovative technology costs, after-tax (includes related financing
costs)(1)



5,642



3,637



10,903



7,207


Gain on sale of subsidiaries, after-tax(2)



(5,437)





(5,437)




Nonunion pension expense, including settlement expense, after-tax(3)









66


Life insurance proceeds and changes in cash surrender value



(1,248)



(2,560)



(2,514)



1,245


Tax expense (benefit) from vested RSUs(4)



(6,796)



659



(6,931)



679


Non-GAAP amounts


$

53,142


$

17,616


$

80,363


$

26,979
















Diluted Earnings Per Share














Amounts on GAAP basis


$

2.27


$

0.61


$

3.13


$

0.68


Innovative technology costs, after-tax (includes related financing costs)(1)



0.21



0.14



0.40



0.27


Gain on sale of subsidiaries, after-tax(2)



(0.20)





(0.20)




Nonunion pension expense, including settlement expense, after-tax(3)










Life insurance proceeds and changes in cash surrender value



(0.05)



(0.10)



(0.09)



0.05


Tax expense (benefit) from vested RSUs(4)



(0.25)



0.03



(0.26)



0.03


Non-GAAP amounts(5)


$

1.97


$

0.67


$

2.98


$

1.03






1)

Represents costs associated with the freight handling pilot test program at ABF Freight.

2)

Gain recognized for the three and six months ended June 30, 2021 relates to the sale of the labor services portion of ArcBest segment's moving business in May 2021.

3)

For the six months ended June 30, 2020, represents pension settlement expense related to the Company's supplemental benefit plan.

4)

The Company recognized the tax impact for the vesting of share-based compensation resulting in excess tax expense (benefit) during the three and six months ended June 30, 2021 and 2020.

5)

Non-GAAP EPS is calculated in total and may not foot due to rounding.

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued





























Three Months Ended


Six Months Ended




June 30


June 30




2021


2020


2021


2020


Segment Operating Income Reconciliations


(Unaudited)




($ thousands, except percentages)


Asset-Based Segment






Operating Income ($) and Operating Ratio (% of revenues)
















Amounts on GAAP basis


$

63,911


90.2

%


$

21,036


95.4

%


$

93,966


92.2

%


$

34,276


96.5

%


Innovative technology costs, pre-tax(1)



7,532


(1.2)




4,789


(1.0)




14,400


(1.2)




9,322


(1.0)



Non-GAAP amounts


$

71,443


89.0

%


$

25,825


94.4

%


$

108,366


91.0

%


$

43,598


95.5

%








Asset-Light












ArcBest Segment






Operating Income (Loss) ($) and Operating Ratio (% of revenues)
















Amounts on GAAP basis


$

15,127


94.4

%


$

1,303


99.1

%


$

23,392


95.5

%


$

(106)


100.0

%


Gain on sale of subsidiaries, pre-tax(2)



(6,923)


2.6








(6,923)


1.3







Non-GAAP amounts


$

8,204


97.0

%


$

1,303


99.1

%


$

16,469


96.8

%


$

(106)


100.0

%








FleetNet Segment






Operating Income ($) and Operating Ratio (% of revenues)
















Amounts on GAAP basis


$

1,138


98.1

%


$

782


98.3

%


$

2,161


98.2

%


$

1,822


98.2

%








Total Asset-Light






Operating Income (Loss) ($) and Operating Ratio (% of revenues)
















Amounts on GAAP basis


$

16,265


95.1

%


$

2,085


98.9

%


$

25,553


96.0

%


$

1,716


99.6

%


Gain on sale of subsidiaries, pre-tax(2)



(6,923)


2.1








(6,923)


1.1







Non-GAAP amounts


$

9,342


97.2

%


$

2,085


98.9

%


$

18,630


97.1

%


$

1,716


99.6

%








Other and Eliminations






Operating Loss ($)
















Amounts on GAAP basis


$

(5,877)





$

(2,696)





$

(13,029)





$

(7,748)





Innovative technology costs, pre-tax(1)



(100)






(90)






(58)






(23)





Non-GAAP amounts


$

(5,977)





$

(2,786)





$

(13,087)





$

(7,771)









1)

Represents costs associated with the freight handling pilot test program at ABF Freight.

2)

Gain recognized for the three and six months ended June 30, 2021 relates to the sale of the labor services portion of the ArcBest segment's moving business in May 2021.


ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued




















Effective Tax Rate Reconciliation















ArcBest Corporation - Consolidated






































(Unaudited)



















($ thousands, except percentages)


Three Months Ended June 30, 2021






Other


Income


Income









Operating


Income


Before Income


Tax


Net





Income


(Costs)


Taxes


Provision


Income


Tax Rate(4)

Amounts on GAAP basis


$

74,299


$

(841)


$

73,458


$

12,477


$

60,981


17.0

%

Innovative technology costs(1)



7,432



166



7,598



1,956



5,642


25.7


Gain on sale of subsidiaries(2)



(6,923)





(6,923)



(1,486)



(5,437)


(21.5)


Life insurance proceeds and changes in cash surrender
value





(1,248)



(1,248)





(1,248)



Tax benefit from vested RSUs(3)









6,796



(6,796)



Non-GAAP amounts


$

74,808


$

(1,923)


$

72,885


$

19,743


$

53,142


27.1

%






















Six Months Ended June 30, 2021





Other


Income Before


Income









Operating


Income


Income


Tax


Net





Income


(Costs)


Taxes


Provision


Income


Tax Rate(4)

Amounts on GAAP basis


$

106,490


$

(1,685)


$

104,805


$

20,463


$

84,342


19.5

%

Innovative technology costs(1)



14,342



340



14,682



3,779



10,903


25.7


Gain on sale of subsidiaries(2)



(6,923)





(6,923)



(1,486)



(5,437)


(21.5)


Life insurance proceeds and changes in cash surrender
value





(2,514)



(2,514)





(2,514)



Tax expense from vested RSUs(3)









6,931



(6,931)



Non-GAAP amounts


$

113,909


$

(3,859)


$

110,050


$

29,687


$

80,363