ArcBest to Acquire Logistics Provider MoLo Solutions

TL;DR

ArcBest buying MoLo Solutions to boost logistics game. Deal closes Q4.

AI Summary

ArcBest Corporation announced on September 3, 2024, that it has entered into a definitive agreement to acquire 100% of the issued and outstanding equity interests of MoLo Solutions, LLC. The acquisition is expected to close in the fourth quarter of 2024, subject to customary closing conditions. MoLo Solutions is a rapidly growing third-party logistics provider specializing in truckload freight.

Why It Matters

This acquisition by ArcBest is expected to significantly expand its logistics capabilities and market presence, potentially leading to increased revenue and market share in the transportation sector.

Risk Assessment

Risk Level: medium — Acquisitions carry inherent risks, including integration challenges, potential overpayment, and failure to achieve expected synergies.

Key Players & Entities

• ArcBest Corporation (company) — Acquiring company
• MoLo Solutions, LLC (company) — Acquired company
• September 3, 2024 (date) — Announcement date
• fourth quarter of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock $0.01 Par Value ARCB Nasdaq Indicate by
• $5 million — t-Light operating loss of approximately $5 million to $6 million for third quarter 2024, w
• $6 million — ing loss of approximately $5 million to $6 million for third quarter 2024, which excludes

Filing Documents

• arcb-20240903x8k.htm (8-K) — 110KB
• 0001558370-24-012559.txt ( ) — 232KB
• arcb-20240903.xsd (EX-101.SCH) — 3KB
• arcb-20240903_lab.xml (EX-101.LAB) — 15KB
• arcb-20240903_pre.xml (EX-101.PRE) — 10KB
• arcb-20240903x8k_htm.xml (XML) — 4KB

01 – REGULATION FD DISCLOSURE

ITEM 7.01 – REGULATION FD DISCLOSURE ArcBest (Nasdaq: ARCB) is providing an update on the most recent information related to its third quarter 2024 financial results and business trends. Summary Operating and Financial Impacts Statistics for August 2024 are preliminary and not yet finalized. There were 21.5 workdays in July 2024 and 19.5 workdays in July 2023. There were 22.0 workdays in August 2024 and 23.0 workdays in August 2023. Quarter to date 2024 compares July and August 2024 to July and August 2023. Asset-Based Operating Segment Year-over-Year Monthly Business Trends: July 2024 August 2024 QTD 2024 Billed Revenue/Day (1) +1.0 % -7 % -3 % Total Tons/Day -12.5 % -10 % -11 % Total Shipments/Day +1.4 % -1 % flat Total Billed Revenue/CWT +15.4 % +4 % +9 % Total Billed Revenue/Shipment -0.4 % -6 % -3 % Total Weight/Shipment -13.7 % -9 % -11 % 1) 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. As we served our customers during the market disruption that began in July 2023 due to financial challenges at a major LTL competitor, we experienced an increase in our core business volumes. As these volumes grew, we strategically raised prices and reduced volumes in our transactional business. This shift, coupled with a softer market backdrop, led to year-over-year decreases in daily tonnage in the first half of 2024. However, these decreases were partially offset by higher billed revenue per hundredweight (cwt) due to improved pricing on fewer dynamic LTL-rated and truckload-rated shipments. Additionally, changes in mix positively impacted our results, with core, published LTL-rated tonnage representing a larger proportion of our Asset-Based business at higher

SIGNATURES

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. Se ARCBEST CORPORATION (Registrant) Date: September 3, 2024 /s/ Michael R. Johns Michael R. Johns Chief Legal Officer and Corporate Secretary

View Full Filing

View this 8-K filing on SEC EDGAR