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ABF | Arcbest® Announces First Quarter 2019 Results

Freightmaster1

Freightmaster1

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https://seekingalpha.com/pr/17498066-arcbest-announces-first-quarter-2019-results

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:19:
 
ArcBest Corporation (ARCB) CEO Judy McReynolds on Q1 2019 Results - Earnings Call Transcript
https://seekingalpha.com/article/42...olds-q1-2019-results-earnings-call-transcript

David Humphrey

Okay, we had a question about the impact of the closure of New England Motor Freight on our business.

David Cobb

As a result of the closure of the New England Motor Freight, we had some new business opportunities with new customers and new freight in our Eastern operating regions. We were able to add some new accounts and new business at acceptable prices. However, the additional business embed associated new revenue was not significant, did not have a meaningful impact on our revenue. Not many cases we found that the price was too low prospective customers not willing to pay the rates that really we needed for the account to have acceptable profitability. In some other cases, we initially maybe got the business at the price, but because they later moved to another carrier, typically at a price lower than what ABF was charging. But we continue to pursue opportunities with customers who formally shipped with New England. Another key benefit, I think, was the opportunity to hire some employees and we received over 200 applications and have hired at least 40 employees out of that operation.

David Humphrey

Our next question was about the size of the last mile business relative to big and bulky residential shipments. Excluding our U-Pack moving business?

David Humphrey

Oh man, I'll just comment, our non U-Pack residential business has been running approximately 10% of our total Asset-Based shipments over the last couple of years.

David Humphrey

Moving on now Brad Delco had a few questions for us. First he asked can you provide any update on the status of any relief for the underfunded multi-employer pension funds.

Judy McReynolds

Well, Brad, this is an issue that we monitor the development as always, but just want to remind everyone that under our current five year labor contract, our contribution rates are frozen to the multi-employer pension funds. Unfortunately we had not seen really any movement in the legislative process or by Treasury or other government bodies to address these troubled plans. But as I mentioned, we're going to continue to monitor these developments and we are always a part of those conversations.

images

:bananapartyhat:
 
First quarter 2019 revenue of $711.8 million, and net income of $4.9 million, or $0.18 per diluted share. On a non-GAAP(1) basis, first quarter 2019 net income was $4.6 million, or $0.17 per diluted share.

- Solid pricing contributed to growth in Asset-Based revenue and improved operating income." data-reactid="12">- Solid pricing contributed to growth in Asset-Based revenue and improved operating income.

- Lower Asset-Light revenue and operating income related to reduced demand amid changing market conditions and investments in the business." data-reactid="13">- Lower Asset-Light revenue and operating income related to reduced demand amid changing market conditions and investments in the business.

FORT SMITH, Ark., May 2, 2019 /PRNewswire/ -- ArcBest® (ARCB), a leading logistics company with creative problem solvers who deliver integrated solutions, today reported first quarter 2019 revenue of $711.8 million compared to first quarter 2018 revenue of $700.0 million.  First quarter 2019 operating income was $8.6 million compared to operating income of $12.7 million last year.  Net income was $4.9 million, or $0.18 per diluted share compared to first quarter 2018 net income of $10.0 million, or $0.37 per diluted share.' data-reactid="14">FORT SMITH, Ark., May 2, 2019 /PRNewswire/ -- ArcBest® (ARCB), a leading logistics company with creative problem solvers who deliver integrated solutions, today reported first quarter 2019 revenue of $711.8 million compared to first quarter 2018 revenue of $700.0 million. First quarter 2019 operating income was $8.6 million compared to operating income of $12.7 million last year. Net income was $4.9 million, or $0.18 per diluted share compared to first quarter 2018 net income of $10.0 million, or $0.37 per diluted share.

https://finance.yahoo.com/news/arcbest-announces-first-quarter-2019-200500608.html
 
Freightmaster1 said:
ArcBest Corporation (ARCB) CEO Judy McReynolds on Q1 2019 Results - Earnings Call Transcript
https://seekingalpha.com/article/42...olds-q1-2019-results-earnings-call-transcript

David Humphrey

Okay, we had a question about the impact of the closure of New England Motor Freight on our business.

David Cobb

As a result of the closure of the New England Motor Freight, we had some new business opportunities with new customers and new freight in our Eastern operating regions. We were able to add some new accounts and new business at acceptable prices. However, the additional business embed associated new revenue was not significant, did not have a meaningful impact on our revenue. Not many cases we found that the price was too low prospective customers not willing to pay the rates that really we needed for the account to have acceptable profitability. In some other cases, we initially maybe got the business at the price, but because they later moved to another carrier, typically at a price lower than what ABF was charging. But we continue to pursue opportunities with customers who formally shipped with New England. Another key benefit, I think, was the opportunity to hire some employees and we received over 200 applications and have hired at least 40 employees out of that operation.

David Humphrey

Our next question was about the size of the last mile business relative to big and bulky residential shipments. Excluding our U-Pack moving business?

David Humphrey

Oh man, I'll just comment, our non U-Pack residential business has been running approximately 10% of our total Asset-Based shipments over the last couple of years.

David Humphrey

Moving on now Brad Delco had a few questions for us. First he asked can you provide any update on the status of any relief for the underfunded multi-employer pension funds.

Judy McReynolds

Well, Brad, this is an issue that we monitor the development as always, but just want to remind everyone that under our current five year labor contract, our contribution rates are frozen to the multi-employer pension funds. Unfortunately we had not seen really any movement in the legislative process or by Treasury or other government bodies to address these troubled plans. But as I mentioned, we're going to continue to monitor these developments and we are always a part of those conversations.

images

:bananapartyhat:
Click to expand...


Lotta words to say: "Go Pound Salt, Former Employees......."
 
Jaloc said:
Old Dominion $133 Million profit first quarter how can you compete against that?
Click to expand...

That would be up to the OD drivers and dock workers,....whose health care is nowhere near the Union companies,....and who PAY their employer for the "privilege" of maintaining their health care plan,,......and whose hourly workers don't get overtime after 8 or 40,.......and although their wages are close to Teamster level..(...minus what they pay for healthcare and their 401(k) contribution....OD's only "pension" plan...).......they have no voice at work.(employment-at-will).....and have to accept any condition( Cameras?) that the company decides to impose.

OD will continue to make that profit off the backs of their employees,........right up to the time they subcontract all their road operation, city operations,...and the technology for driverless road trucks becomes feasible.....
And then the owners of OD will ....roll in cash....

Apples to oranges in comparison.......As long as employees are willing to accept ....less.(..in a supposedly dire employment climate..)...then the owners and investors in those companies will make a huge profit.....Not the employees....

What's more important,.......Business?...or People? I can answer that in one word.....my former Boss couldn't...
 
canaryinthemine said:
That would be up to the OD drivers and dock workers,....whose health care is nowhere near the Union companies,....and who PAY their employer for the "privilege" of maintaining their health care plan,,......and whose hourly workers don't get overtime after 8 or 40,.......and although their wages are close to Teamster level..(...minus what they pay for healthcare and their 401(k) contribution....OD's only "pension" plan...).......they have no voice at work.(employment-at-will).....and have to accept any condition( Cameras?) that the company decides to impose.

OD will continue to make that profit off the backs of their employees,........right up to the time they subcontract all their road operation, city operations,...and the technology for driverless road trucks becomes feasible.....
And then the owners of OD will ....roll in cash....

Apples to oranges in comparison.......As long as employees are willing to accept ....less.(..in a supposedly dire employment climate..)...then the owners and investors in those companies will make a huge profit.....Not the employees....

What's more important,.......Business?...or People? I can answer that in one word.....my former Boss couldn't...
Click to expand...
Do you know how much rail and subcontracting ABF uses? I am sure the answer is everything the contract allows. Do you know that OD uses virtually NO substitute transportation? Has not used any for years. They move all their freight with their own trucks and drivers. Maybe OD cares more about their people than you know.
 
truck101 said:
Do you know how much rail and subcontracting ABF uses? I am sure the answer is everything the contract allows. Do you know that OD uses virtually NO substitute transportation? Has not used any for years. They move all their freight with their own trucks and drivers. Maybe OD cares more about their people than you know.
Click to expand...
Do you know how much more OD’s labor costs would be if they paid overtime a pension and contributed 100% for employee healthcare....
 
canaryinthemine said:
That would be up to the OD drivers and dock workers,....whose health care is nowhere near the Union companies,....and who PAY their employer for the "privilege" of maintaining their health care plan,,......and whose hourly workers don't get overtime after 8 or 40,.......and although their wages are close to Teamster level..(...minus what they pay for healthcare and their 401(k) contribution....OD's only "pension" plan...).......they have no voice at work.(employment-at-will).....and have to accept any condition( Cameras?) that the company decides to impose.

OD will continue to make that profit off the backs of their employees,........right up to the time they subcontract all their road operation, city operations,...and the technology for driverless road trucks becomes feasible.....
And then the owners of OD will ....roll in cash....

Apples to oranges in comparison.......As long as employees are willing to accept ....less.(..in a supposedly dire employment climate..)...then the owners and investors in those companies will make a huge profit.....Not the employees....

What's more important,.......Business?...or People? I can answer that in one word.....my former Boss couldn't...
Click to expand...
But they get free hot dogs on holidays.
 
canaryinthemine said:
That would be up to the OD drivers and dock workers,....whose health care is nowhere near the Union companies,....and who PAY their employer for the "privilege" of maintaining their health care plan,,......and whose hourly workers don't get overtime after 8 or 40,.......and although their wages are close to Teamster level..(...minus what they pay for healthcare and their 401(k) contribution....OD's only "pension" plan...).......they have no voice at work.(employment-at-will).....and have to accept any condition( Cameras?) that the company decides to impose.

OD will continue to make that profit off the backs of their employees,........right up to the time they subcontract all their road operation, city operations,...and the technology for driverless road trucks becomes feasible.....
And then the owners of OD will ....roll in cash....

Apples to oranges in comparison.......As long as employees are willing to accept ....less.(..in a supposedly dire employment climate..)...then the owners and investors in those companies will make a huge profit.....Not the employees....

What's more important,.......Business?...or People? I can answer that in one word.....my former Boss couldn't...
Click to expand...

Good points, OD seems to be much worse of an employer than YRC. Perhaps $5 per how less to save $50.00 per week on healthcare.
The teamsters always boasted about job security, how is that working out at YRC now days???
I wish those YRC workers well but they'd be better off without the union..... Most YRC union members under the age of 50 will NEVER see the pension they are being promised and paying for...
But you go on thinking it better.....
 
Puff Driver said:
Good points, OD seems to be much worse of an employer than YRC. Perhaps $5 per how less to save $50.00 per week on healthcare.
The teamsters always boasted about job security, how is that working out at YRC now days???
I wish those YRC workers well but they'd be better off without the union..... Most YRC union members under the age of 50 will NEVER see the pension they are being promised and paying for...
But you go on thinking it better.....
Click to expand...
We are at ABF not YRC.
 
Puff Driver said:
Good points, OD seems to be much worse of an employer than YRC. Perhaps $5 per how less to save $50.00 per week on healthcare.
The teamsters always boasted about job security, how is that working out at YRC now days???
I wish those YRC workers well but they'd be better off without the union..... Most YRC union members under the age of 50 will NEVER see the pension they are being promised and paying for...
But you go on thinking it better.....
Click to expand...
YRC is a company financially crippled by the decisions of Bill Zollars over a decade ago. Their current state has NOTHING to do with the hard-working Teamsters they employ.
 
Puff Driver said:
Good points, OD seems to be much worse of an employer than YRC. Perhaps $5 per how less to save $50.00 per week on healthcare.
The teamsters always boasted about job security, how is that working out at YRC now days???
I wish those YRC workers well but they'd be better off without the union..... Most YRC union members under the age of 50 will NEVER see the pension they are being promised and paying for...
But you go on thinking it better.....
Click to expand...
Urine idiot
 
canaryinthemine said:
That would be up to the OD drivers and dock workers,....whose health care is nowhere near the Union companies,....and who PAY their employer for the "privilege" of maintaining their health care plan,,......and whose hourly workers don't get overtime after 8 or 40,.......and although their wages are close to Teamster level..(...minus what they pay for healthcare and their 401(k) contribution....OD's only "pension" plan...).......they have no voice at work.(employment-at-will).....and have to accept any condition( Cameras?) that the company decides to impose.

OD will continue to make that profit off the backs of their employees,........right up to the time they subcontract all their road operation, city operations,...and the technology for driverless road trucks becomes feasible.....
And then the owners of OD will ....roll in cash....

Apples to oranges in comparison.......As long as employees are willing to accept ....less.(..in a supposedly dire employment climate..)...then the owners and investors in those companies will make a huge profit.....Not the employees....

What's more important,.......Business?...or People? I can answer that in one word.....my former Boss couldn't...
Click to expand...
Quick question: would you explain the difference in OD health insurance plan and ABF health insurance plan? Things like coverage (what is and is not covered), what is the difference in plan deductibles? In network and out of network coverage (compare and contrast OD with ABF) major medical procedures and minor medical procedures? Drug costs for employees at OD versus drug cost at ABF? How about brand name prescription drugs versus generic drugs?
 
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