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ABF | Q1 2021...Record quarterly revenue that increased 18% over last year.

Sumting Wong

Sumting Wong

TB Lurker
Credits
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  • First quarter 2021 revenue of $829.2 million, and net income of $23.4 million, or $0.87 per diluted share. On a non-GAAP1 basis, first quarter 2021 net income of $27.2 million, or $1.01 per diluted share.
  • Record quarterly revenue that increased 18% over last year.
  • First quarter operating income, which increased more than three times over first quarter 2020, was the best in ArcBest’s history.
 
“We’re pleased to report our best-ever operating income for the first quarter as well as increased revenue and profitability in what is historically the most challenging quarter of the year,” said Judy R. McReynolds, ArcBest chairman, president and CEO. “These strong results reflect our ability to create solutions to support our customers as they continue to face supply chain challenges associated with their rebound from the COVID-19 pandemic.”
 
Asset-Based


First Quarter 2021 Versus First Quarter 2020


  • Revenue of $556.3 million compared to $515.7 million, a per-day increase of 9.6 percent.
  • Total tonnage per day increase of 1.8 percent, with a mid-single-digit percentage increase in LTL-rated tonnage partially offset by a double-digit percentage decrease in TL-rated spot shipment tonnage moving in the Asset-Based network.
  • Total shipments per day increase of 2.6 percent including a 3.0 percent increase in LTL-rated shipments per day and an increase of 2.6 percent in LTL-rated weight per shipment which was positively impacted by first quarter freight mix changes.
  • Total billed revenue per hundredweight increased 8.8 percent and was negatively impacted by lower fuel surcharges. Revenue per hundredweight on LTL-rated business, excluding fuel surcharge, improved by a percentage in the mid‑single digits.
  • Operating income of $30.1 million and an operating ratio of 94.6 percent compared to the prior year quarter operating income of $13.2 million and an operating ratio of 97.4 percent. On a non-GAAP basis, operating income of $36.9 million and an operating ratio of 93.4 percent compared to the prior year quarter operating income of $17.8 million and an operating ratio of 96.5 percent.
As shippers are experiencing improving trends in their businesses, greater demand for ArcBest’s Asset-Based services resulted in increased first quarter revenue and higher profitability. Shipment and tonnage growth during the quarter was also positively impacted by unseasonal strength in the housing market associated with a shift in buyer demand due to the pandemic. In response to customer requirements, more local and linehaul purchased transportation was used to supplement the Asset-Based network, and thus these costs increased as a percent of total revenue. Despite challenges from adverse weather in February, overall freight handling productivity in the quarter improved compared to the prior year. Utilization of previously implemented network optimization technologies positively contributed to cost efficiencies and improved profits. ArcBest’s on-going yield management initiatives, combined with the continuing strong, rational marketplace pricing environment, were significant contributors to the improved operating income.
 
Steward of the Rock said:
Our best first quarter ever!!! If we finish out the year (2021) equaling our second, third, and fourth quarter of 2020, that would be a 94.625 OR. That would be a 2% bonus as opposed to the 1% bonus we received the last two years.
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That’s great news for you guys! Quite the contrast from just a few years ago when they’d call a morning meeting to tell us we ‘just missed’ getting the bonus by .00000000001%. And then promptly tell us to get back to work!
 
GO40 said:
Not that would buy transportation stock but I think OD is way over priced. With this driver shortage they may have to start paying overtime to retain & attract new drivers, & that operating ratio in the 70’s would be higher along with operating costs. Not saying it will happen but it can, just look at Pitt Ohio….
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I haven't heard many OD drivers complain about their job and at least in my area they are treated well and not many leave. If you look at their growth over the past few years and their operating ratio, I think that's why there stock is as high as it is. They must be doing something right!
 
Peddleguy said:
I haven't heard many OD drivers complain about their job and at least in my area they are treated well and not many leave. If you look at their growth over the past few years and their operating ratio, I think that's why there stock is as high as it is. They must be doing something right!
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That has absolutely nothing to do with the stock price, investors could give a $hit less how they are treated or the turnover ratio….
 
GO40 said:
That has absolutely nothing to do with the stock price, investors could give a $hit less how they are treated or the turnover ratio….
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But growth and OR does and how is that accomplished easier....happy employees
 
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