Strong execution helping customers navigate market disruption combined with continued cost discipline

Strategic capital allocation with returns to shareholders and investments in growth

• Delivered fourth quarter 2023 net income of $48.8 million, or $2.01 per diluted share, with non-GAAP fourth quarter 2023 net income of $60.0 million, or $2.47 per diluted share.
• Achieved full year 2023 net income from continuing operations of $142.2 million, or $5.77 per diluted share. On a non-GAAP basis, full year 2023 net income was $194.1 million, or $7.88 per diluted share.
• Returned $103 million to shareholders in 2023 through share repurchases and quarterly cash dividends.
• ArcBest’s board has increased the company’s share repurchase program authorization to $125 million.

ArcBest^® (Nasdaq: ARCB), a leader in supply chain logistics, today reported fourth quarter 2023 revenue from continuing operations of $1.1 billion, compared to $1.2 billion in the fourth quarter of 2022. ArcBest’s fourth quarter 2023 operating income from continuing operations was $64.3 million, compared to $50.2 million in the fourth quarter of 2022, and net income from continuing operations was $48.8 million, or $2.01 per diluted share, compared to $36.5 million, or $1.45 per diluted share, in the prior-year period.

Excluding certain items in both periods as identified in the attached reconciliation tables, fourth quarter 2023 non‑GAAP operating income from continuing operations was $81.7 million, compared to $81.6 million in the prior‑year period. On a non-GAAP basis, net income from continuing operations was $60.0 million, or $2.47 per diluted share, compared to $60.8 million, or $2.42 per diluted share, in fourth quarter 2022.

ArcBest’s full year 2023 revenue from continuing operations totaled $4.4 billion compared to $5.0 billion in 2022. Net income from continuing operations was $142.2 million, or $5.77 per diluted share, compared to net income of $294.6 million, or $11.55 per diluted share in 2022. On a non-GAAP basis, ArcBest’s 2023 net income from continuing operations was $194.1 million, or $7.88 per diluted share, compared to net income of $344.7 million, or $13.52 per diluted share, in 2022.

“2023 was a milestone year for ArcBest as we celebrated our 100-year anniversary and again delivered solid financial results,” said Judy R. McReynolds, ArcBest chairman, president and CEO. “In a year marked by market disruptions and increased supply chain complexity, our people remained a critical driver of our success, helping us achieve the second best revenue performance in ArcBest’s history. In addition to significant operational and efficiency improvements in 2023, we are proud to have renewed our five-year labor agreement and received recognition for our innovation efforts and commitment to service excellence. These achievements are supported by our customer-led growth strategy and focus on shareholder value. We look forward to accelerating growth, increasing efficiency and fostering innovation as we look ahead to even greater success in our next hundred years.”

Fourth Quarter Results of Operations Comparisons

Asset-Based

Fourth Quarter 2023 Versus Fourth Quarter 2022

• Revenue of $710.0 million compared to $711.4 million, a per-day decrease of 1.0 percent.
• Total tonnage per day decrease of 7.2 percent, including a decrease of 6.5 percent in LTL-rated weight per shipment.
• Total shipments per day decrease of 0.8 percent.
• Total billed revenue per hundredweight increased 6.8 percent. Revenue per hundredweight on LTL-rated business, excluding fuel surcharge, increased by a percentage in the double digits.
• Operating income of $87.5 million and an operating ratio of 87.7 percent. This compares to prior-period operating income of $75.1 million and an operating ratio of 89.4 percent, and to prior-period non-GAAP operating income of $81.4 million and a non-GAAP operating ratio of 88.6 percent.

Despite a softer freight environment leading to reduced customer demand, fourth quarter Asset-Based daily revenue was only slightly below the prior-year period. This resilience is largely attributable to ArcBest’s effective strategies in helping customers navigate market disruptions, coupled with a disciplined pricing approach. Total fourth quarter daily shipment and tonnage levels were below the prior-year period. A shift in freight mix toward core, LTL-rated shipments positively impacted Asset-Based freight-handling metrics and operating results. Cost control actions, initiated in the third quarter of 2023 also positively contributed to the fourth quarter Asset-Based operating ratio. On a non-GAAP basis, Asset-Based operating income was the second best for a fourth quarter in ArcBest’s history.

Fourth quarter Asset-Based billed revenue per hundredweight increased approximately seven percent over the prior year driven by growth in core, LTL-rated shipments and the resulting improvement in freight mix. On a sequential basis compared to the third quarter, total billed revenue per hundredweight increased by nearly four percent. Overall, LTL industry pricing remains rational, and the improving trends associated with recent market changes have continued.

Asset-Light^‡

Fourth Quarter 2023 Versus Fourth Quarter 2022

• Revenue of $413.4 million compared to $479.1 million, a per-day decrease of 14.4 percent.
• Operating loss of $7.7 million compared to operating loss of $11.3 million. On a non‑GAAP basis, operating loss of $1.3 million compared to operating income of $9.4 million.
• Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) of $0.7 million compared to $11.2 million, as detailed in the attached non-GAAP reconciliation tables.

Compared to the fourth quarter of 2022, Asset-Light results were impacted by lower revenue per shipment and reduced margins associated with changes in business mix and the soft rate environment. Total shipments grew by 12.4% per day, as the managed transportation solution helped customers navigate recent LTL market disruption. However, lower rates and margins for the truckload solution were the biggest drivers of reduced profitability. ArcBest continued its efforts to effectively match costs with business levels, which reduced fourth quarter Asset-Light operating expenses.

Full Year Results of Operations Comparisons

Asset-Based

Full Year 2023 Versus Full Year 2022

• Revenue of $2.9 billion, compared to $3.0 billion, a per-day decrease of 4.5 percent.
• Tonnage per day decrease of 2.4 percent.
• Shipments per day increase of 3.2 percent.
• Total billed revenue per hundredweight decrease of 2.2 percent, negatively impacted by lower fuel surcharges and freight mix changes throughout the year.
• Operating income of $253.2 million compared to $381.1 million. On a non-GAAP basis, operating income of $275.5 million compared to $409.6 million.

Asset-Light^‡

Full Year 2023 Versus Full Year 2022

• Revenue of $1.7 billion compared to $2.1 billion, a per-day decrease of 21.3 percent.
• Operating loss of $12.3 million, compared to operating income of $52.7 million. On a non-GAAP basis, operating income of $5.3 million compared to $83.8 million.
• Adjusted EBITDA of $12.9 million compared to $91.4 million.

Capital Expenditures

In 2023, total net capital expenditures, including equipment financed, were $245 million. Net capital expenditures in 2023 included $144 million of revenue equipment, the majority of which was for ArcBest’s Asset-Based operation. Capital expenditures in 2023 were lower than expected because of delays in some real estate facility projects and supply chain-related manufacturing delays and cancellations, primarily on new city tractors and trailers. These delayed expenditures are expected to occur in 2024. Depreciation and amortization costs on property, plant and equipment were $133 million in 2023.

Share Repurchase and Quarterly Dividend Programs

ArcBest generated solid cash from operations in 2023 and returned $103 million to shareholders through its share repurchase and dividend programs. During 2023, ArcBest settled repurchases of 930,754 shares of common stock for an aggregate cost of $91.5 million and paid dividends to shareholders totaling $11.5 million.

In addition, on February 5, 2024, ArcBest’s board of directors increased the total amount available under the company’s common stock repurchase program to $125 million.

NOTE ‡ - Asset-Light represents the reportable segment previously named ArcBest. Asset-Light financial results previously included the ArcBest segment and FleetNet, which was sold on February 28, 2023.

Conference Call

ArcBest will host a conference call with company executives to discuss the fourth quarter and full year 2023 results. The call will be today, Tuesday, February 6 at 9:30 a.m. EST (8:30 a.m. CST). Interested parties are invited to listen by calling (800) 599-2055 or by joining the webcast which can be found on ArcBest’s website at arcb.com. Slides to accompany this call are included in Exhibit 99.3 of the Form 8-K filed on February 6, 2024, will be posted and available to download on the company’s website prior to the scheduled conference time, and will be included in the webcast. Following the call, a recorded playback will be available through the end of the day on March 15, 2024. To listen to the playback, dial (800) 770-2030. The conference call ID for the live conference call and the playback is 6835093. The conference call and playback can also be accessed through March 15, 2024 on ArcBest’s website at arcb.com.

About ArcBest

ArcBest^® (Nasdaq: ARCB) is a multibillion-dollar integrated logistics company that helps keep the global supply chain moving. Founded in 1923 and now with 15,000 employees across 250 campuses and service centers, the company is a logistics powerhouse, using its technology, expertise and scale to connect shippers with the solutions they need — from ground, air and ocean transportation to fully managed supply chains. ArcBest has a long history of innovation that is enriched by deep customer relationships. With a commitment to helping customers navigate supply chain challenges now and in the future, the company is developing ground-breaking technology like Vaux™, one of TIME’s Best Inventions of 2023. For more information, visit arcb.com.

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: Certain statements and information in this press release concerning results for the three and twelve months ended December 31, 2023, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding (i) our expectations about our intrinsic value or our prospects for growth and value creation and (ii) our financial outlook, position, strategies, goals, and expectations. Terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “foresee,” “intend,” “may,” “plan,” “predict,” “project,” “scheduled,” “should,” “would,” and similar expressions and the negatives of such terms are intended to identify forward-looking statements. These statements are based on management’s beliefs, assumptions, and expectations based on currently available information, are not guarantees of future performance, and involve certain risks and uncertainties (some of which are beyond our control). Although we believe that the expectations reflected in these forward-looking statements are reasonable as and when made, we cannot provide assurance that our expectations will prove to be correct. Actual outcomes and results could materially differ from what is expressed, implied, or forecasted in these statements due to a number of factors, including, but not limited to: the effects of a widespread outbreak of an illness or disease or any other public health crisis, as well as regulatory measures implemented in response to such events; external events which may adversely affect us or the third parties who provide services for us, for which our business continuity plans may not adequately prepare us, including, but not limited to, acts of war or terrorism, or military conflicts; data privacy breaches, cybersecurity incidents, and/or failures of our information systems, including disruptions or failures of services essential to our operations or upon which our information technology platforms rely; interruption or failure of third-party software or information technology systems or licenses; untimely or ineffective development and implementation of, or failure to realize the potential benefits associated with, new or enhanced technology or processes, including our customer pilot offering of Vaux; the loss or reduction of business from large customers or an overall reduction in our customer base; the timing and performance of growth initiatives and the ability to manage our cost structure; the cost, integration, and performance of any recent or future acquisitions and the inability to realize the anticipated benefits of the acquisition within the expected time period or at all; unsolicited takeover proposals, proxy contests, and other proposals/actions by activist investors; maintaining our corporate reputation and intellectual property rights; nationwide or global disruption in the supply chain resulting in increased volatility in freight volumes; competitive initiatives and pricing pressures; increased prices for and decreased availability of equipment, including new revenue equipment, decreases in value of used revenue equipment, and higher costs of equipment-related operating expenses such as maintenance, fuel, and related taxes; availability of fuel, the effect of volatility in fuel prices and the associated changes in fuel surcharges on securing increases in base freight rates, and the inability to collect fuel surcharges; relationships with employees, including unions, and our ability to attract, retain, and upskill employees; unfavorable terms of, or the inability to reach agreement on, future collective bargaining agreements or a workforce stoppage by our employees covered under ABF Freight’s collective bargaining agreement; union employee wages and benefits, including changes in required contributions to multiemployer plans; availability and cost of reliable third-party services; our ability to secure independent owner-operators and/or operational or regulatory issues related to our use of their services; litigation or claims asserted against us; governmental regulations; environmental laws and regulations, including emissions-control regulations; default on covenants of financing arrangements and the availability and terms of future financing arrangements; our ability to generate sufficient cash from operations to support significant ongoing capital expenditure requirements and other business initiatives; self-insurance claims, insurance premium costs, and loss of our ability to self-insure; potential impairment of long-lived assets and goodwill and intangible assets; general economic conditions and related shifts in market demand that impact the performance and needs of industries we serve and/or limit our customers’ access to adequate financial resources; increasing costs due to inflation and higher interest rates; seasonal fluctuations, adverse weather conditions, natural disasters, and climate change; and other financial, operational, and legal risks and uncertainties detailed from time to time in ArcBest Corporation’s public filings with the Securities and Exchange Commission (“SEC”).

For additional information regarding known material factors that could cause our actual results to differ from those expressed in these forward-looking statements, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events, or otherwise.

Financial Data and Operating Statistics

The following tables show financial data and operating statistics on ArcBest^® and its reportable segments.