ArcBest Corp. Q3 2024: Operating Income Down, Stock Buybacks Continue

TL;DR

ArcBest's Q3 operating income is down, but they're still buying back stock.

AI Summary

ArcBest Corp. reported its Q3 2024 results, with operating income for the nine months ended September 30, 2024, showing a decrease compared to the prior year. The company also disclosed a stock repurchase program in effect during the third quarter and year-to-date periods, and a subsequent event related to this program occurring in October 2024.

Why It Matters

This filing provides insight into ArcBest's financial performance and capital allocation strategies, which can influence investor confidence and stock valuation.

Risk Assessment

Risk Level: medium — The filing indicates a decrease in operating income, suggesting potential challenges in the company's core business operations.

Key Numbers

• Q3 2024 — Reporting Period (The period covered by this 10-Q filing.)
• 2024-09-30 — End of Reporting Period (The specific date marking the end of the fiscal quarter reported.)
• 2024-10-01 to 2024-10-31 — Stock Repurchase Activity (Period during which a subsequent event related to stock repurchase program occurred.)
• 2024-07-01 to 2024-09-30 — Treasury Stock Activity (Period for treasury stock common transactions.)
• 2024-01-01 to 2024-09-30 — Year-to-Date Treasury Stock Activity (Period for year-to-date treasury stock common transactions.)

Key Players & Entities

• ArcBest Corp. (company) — Filer of the 10-Q report.
• 20240930 (date) — Conformed period of report for the 10-Q filing.
• 20241101 (date) — Filing date of the 10-Q.
• 4797856000 (dollar_amount) — Business phone number for ArcBest Corp.
• 710673405 (dollar_amount) — IRS number for ArcBest Corp.

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock $0.01 Par Value ARCB Nasdaq Indicate by

Filing Documents

• arcb-20240930x10q.htm (10-Q) — 3174KB
• arcb-20240930xex31d1.htm (EX-31.1) — 12KB
• arcb-20240930xex31d2.htm (EX-31.2) — 13KB
• arcb-20240930xex32.htm (EX-32) — 12KB
• 0001558370-24-014134.txt ( ) — 12955KB
• arcb-20240930.xsd (EX-101.SCH) — 62KB
• arcb-20240930_cal.xml (EX-101.CAL) — 113KB
• arcb-20240930_def.xml (EX-101.DEF) — 267KB
• arcb-20240930_lab.xml (EX-101.LAB) — 554KB
• arcb-20240930_pre.xml (EX-101.PRE) — 455KB
• arcb-20240930x10q_htm.xml (XML) — 2999KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets —September 30, 2024 and December 31, 2023 3 Consolidated Statements of Operations — For the Three and Nine Months ended September 30, 2024 and 2023 4 Consolidated Statements of Comprehensive Income — For the Three and Nine Months ended September 30, 2024 and 2023 5 Consolidated Statements of Stockholders' Equity — For the Three and Nine Months ended September 30, 2024 and 2023 6 Consolidated Statements of Cash Flows — For the Nine Months ended September 30, 2024 and 2023 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 49 Item 4.

Controls and Procedures

Controls and Procedures 49

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 50 Item 1A.

Risk Factors

Risk Factors 50 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 50 Item 3. Defaults Upon Senior Securities 50 Item 4. Mine Safety Disclosures 51 Item 5. Other Information 51 Item 6. Exhibits 52

SIGNATURES

SIGNATURES 53 Table of Contents PART I . FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS ARCBEST CORPORATION CONSOLIDATED BALANCE SHEET S September 30 December 31 2024 2023 (Unaudited) (in thousands, except share data) ASSETS CURRENT ASSETS Cash and cash equivalents $ 150,461 $ 262,226 Short-term investments 40,639 67,842 Accounts receivable, less allowances (2024 – $ 9,010 ; 2023 – $ 10,346 ) 422,861 430,122 Other accounts receivable, less allowances (2024 – $ 650 ; 2023 – $ 731 ) 13,247 52,124 Prepaid expenses 32,400 37,034 Prepaid and refundable income taxes 21,421 24,319 Other 10,880 11,116 TOTAL CURRENT ASSETS 691,909 884,783 PROPERTY, PLANT AND EQUIPMENT Land and structures 520,894 460,068 Revenue equipment 1,170,045 1,126,055 Service, office, and other equipment 353,880 319,466 Software 182,035 173,354 Leasehold improvements 29,648 24,429 2,256,502 2,103,372 Less allowances for depreciation and amortization 1,207,110 1,188,548 PROPERTY, PLANT AND EQUIPMENT, net 1,049,392 914,824 GOODWILL 304,753 304,753 INTANGIBLE ASSETS, net 91,627 101,150 OPERATING RIGHT-OF-USE ASSETS 193,467 169,999 DEFERRED INCOME TAXES 8,293 8,140 OTHER LONG-TERM ASSETS 74,739 101,445 TOTAL ASSETS $ 2,414,180 $ 2,485,094 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 204,696 $ 214,004 Income taxes payable 4,808 10,410 Accrued expenses 360,738 378,029 Current portion of long-term debt 62,199 66,948 Current portion of operating lease liabilities 33,127 32,172 TOTAL CURRENT LIABILITIES 665,568 701,563 LONG-TERM DEBT, less current portion 118,312 161,990 OPERATING LEASE LIABILITIES, less current portion 192,046 176,621 POSTRETIREMENT LIABILITIES, less current portion 13,269 13,319 CONTINGENT CONSIDERATION 12,160 92,900 DEFERRED INCOME TAXES 65,738 55,785 OTHER LONG-TERM LIABILITIES 39,991 40,553 STOCKHOLDE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE A – ORGANIZATIO N AND DESCRIPTION OF THE BUSINESS AND FINANCIAL STATEMENT PRESENTATION Organization and Description of Business ArcBest Corporation (the "Company") is a multibillion-dollar integrated logistics company that leverages technology and a full suite of shipping and logistics solutions to meet customers' supply chain needs. The Company, which started over a century ago as a local freight hauler, is now a logistics powerhouse with global reach. The Company's operations are conducted through its two reportable operating segments: Asset-Based, which consists of ABF Freight System, Inc. and certain other subsidiaries ("ABF Freight"), and Asset-Light, which includes MoLo Solutions, LLC ("MoLo"), Panther Premium Logistics ("Panther"), and certain other subsidiaries. References to the Company in this Quarterly Report on Form 10-Q are primarily to the Company and its subsidiaries on a consolidated basis. The Asset-Based segment represented approximately 64 % of the Company's total revenues before other revenues and intercompany eliminations for the nine months ended September 30, 2024. As of September 2024, approximately 81 % of the Asset-Based segment's employees were covered under a collective bargaining agreement, the ABF National Master Freight Agreement (the "2023 ABF NMFA"), with the International Brotherhood of Teamsters (the "IBT"), which will remain in effect through June 30, 2028. Financial Statement Presentation On February 28, 2023, the Company sold FleetNet America, Inc. ("FleetNet"), a wholly owned subsidiary and reportable operating segment of the Company, for an aggregate adjusted cash purchase price of $ 100.9 million, including post-closing adjustments. The sale of FleetNet was a strategic shift for the Company as it exited the fleet roadside assistance and maintenance management business; therefore, the sale was accounted for as discontinued operations. As such, historical re

View Full Filing

View this 10-Q filing on SEC EDGAR