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ABF | ArcBest Q3 results

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LTLAnonymous

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ArcBest® Announces Third Quarter 2017 Results
  • Third quarter 2017 revenue of $744.3 million, and net income of $14.8 million, or $0.56 per diluted share. On a non-GAAP basis, third quarter 2017 net income of $15.5 million, or $0.59 per diluted share.
  • Increased revenue and profit in Asset-Based services positively impacted by improved pricing
  • Third quarter Asset-Light revenue increase and operating income improvementimpacted by positive Expedite trends
FORT SMITH, Arkansas, November 3, 2017 — ArcBest® (Nasdaq: ARCB) today reported thirdquarter 2017 revenue of $744.3 millioncompared to third quarter 2016 revenue of $713.9 million. Third quarter 2017 operating income was $24.3 million compared to operating income of $20.4 million last year. Net income of $14.8 million, or $0.56 per diluted share, compared to third quarter 2016 net income of$12.9 million, or $0.49 per diluted share.

Excluding certain items in both periods as identified in the attached reconciliation tables, non-GAAP net income was $15.5 million, or $0.59 per diluted share, in third quarter 2017compared to third quarter 2016 net income of$12.6 million, or $0.48 per diluted share. On a non-GAAP basis, operating income was $27.0million in third quarter 2017 compared to third quarter 2016 operating income of $21.7 million. Cost controls resulting from the enhanced market approach implemented at the beginning of the year continue to be in-line with expectations.

“Our enhanced market approach, tighter capacity and a generally favorable pricing environment all contributed to improved third quarter results,” said ArcBest Chairman, President and CEO Judy R. McReynolds. “Our expedited business was particularly strong, and on the asset-based side, we continue to make progress on the implementation of our space-based pricing initiative, which took effect August 1. While we experienced some negative effects in our asset-based business from hurricanes in the southern U.S. and Puerto Rico, customers seeking total logistics solutions and guaranteed capacity are increasingly looking to ArcBest to fulfill their supply chain needs.”

Asset-Based

Results of Operations

Third Quarter 2017 Versus Third Quarter 2016

  • Revenue of $517.4 million compared to $509.0 million, a per-day increase of 4.1 percent.
  • Tonnage per day decrease of 3.0 percent.
  • Shipments per day decrease 1.4 percent.
  • Total billed revenue per hundredweight increased 6.6 percent that was positively impacted by changes in shipment profile and higher fuel surcharges. Excluding fuel surcharge, the percentage increase onArcBest’s Asset-Based LTL freight was in the mid-single digits.
  • Operating income of $21.8 million and an operating ratio of 95.8 percent compared to operating income of $18.1 million and an operating ratio of 96.5 percent. On a non-GAAP basis, operating income of $23.5million and an operating ratio of 95.5percent compared to operating income of $18.6 million and an operating ratio of 96.4percent.
In the midst of a solid LTL pricing environment, yield management actions implemented throughout 2017, including this quarter’s space-based pricing initiative, resulted in higher revenue per hundredweight and improved revenue per shipment. Though freight tonnage was lower, primarily due to purposeful reductions in asset-based truckload-rated shipments, monthly total weight per shipment trends improved throughout the quarter and LTL weight per shipment increased slightly. In addition, one and a half fewer working days in the quarter impacted operating results and comparisons to previous periods. On the expense side, costs were reduced in a number of areas through cost management efforts including lower linehaul costs influenced by our optimization technologies and reductions in purchased transportation. However, these cost reductions were offset by reduced pickup and delivery productivity, higher rental costs and increased health, welfare and pension expenses for union employees.

Asset-Light‡

Results of Operations

Third Quarter 2017 Versus Third Quarter 2016

  • Revenue of $235.3 million compared to $210.1 million.
  • Operating income of $8.5 million compared to operating income of $6.4 million. On a non-GAAP basis, operating income of $8.7million compared to $6.4 million.
  • Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) of $11.8 million compared to Adjusted EBITDA of $10.3 million.
The increase in ArcBest’s Asset-Light revenue and operating income was driven by solid growth in expedite services and year-over-year business increases associated with the early September 2016 acquisition of a dedicated truckload company. Combined with a slight increase in average daily expedite shipments, the increase in expedite revenue was the result of significant growth in average shipment revenue associated with positive changes in equipment mix and longer average length of haul. Truckload revenue improved slightly as a result of increased revenue per shipment despite lower shipment counts. Truckload net revenue margins were below the same period last year due to the challenges of implementing customer rate increases in line with rising purchased transportation costs associated with tighter capacity in the truckload marketplace. Despite a reduction in total events associated with changes in customer mix, FleetNet’s third quarter revenue and operating income improved as a result of focused cost controls and labor reductions.

https://arcb.com/about/news-events/press-releases/arcbest-announces-third-quarter-2017-results
 
well, well, well...earnings report came out today with the "carefully manufactured numbers"...you will notice that the tonnage decreased 3.07% and the shipment count decreased 1.4 %. These "carefully manufactured numbers" are obviously ABF Freight System numbers...the revenue is hidden in the ArcBest totals...nice to know that with the decrease in concessions/wage cuts, the corporation is building up nicely to do away with the Teamsters portion of ArcBest...better wake up, people! That includes everyone except the high level Executives....Teamsters, superviors, management are all in the same boat...we'd probably do the corporation a favor by striking...then they could farm out all of the business....wonder what they would do with the ReLo cubes?? Even with this, wow....look at OD trading for 3.5-4% higher than good ole ArcBest...and Saia of all folks. almost double...what is going on???? "Pay the rate or lock the gate"...good drivers can find a job anywhere...
Click to expand...

Sounds about right.
 
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