ArcBest’s Second Quarter Strong Highlights Yield Initiative Success

Transportation and Logistics Provider ArcBest Reported Record Results The second quarter on Friday before the market opened. The company’s asset-based segment, which includes less volume than trucks, posted an adjusted occupancy rate of 84.5%, using a better cargo mix and higher yields.

arc vest (NASDAQ: ARCB) reported second-quarter adjusted earnings per share of $4.30, 35 cents higher than consensus estimates and $2.27 higher than the year-ago quarter. The results excluded several items, including costs related to cargo handling pilots and acquisition-related costs.

Consolidated sales were $1.39 billion, an increase of 47% year-over-year. In each business unit, revenue at least he increased by double-digit percentages. For big jumps on the top line, Acquisition of MoLo Securitiesclosed in November.

Preliminary results for July show ArcBest’s consolidated revenues up 36% year-over-year, with growth across all divisions.

Table: ArcBest Key Performance Indicators

Asset-based revenues were $803 million in the quarter, up 23% year-over-year. Tonnage increased by 3.7% and revenue per 100 weights, or yield, increased by 17.7%. Yield metrics benefited from higher fuel surcharges. Excluding fuel, LTL yields rose by a “double-digit percentage,” another report showed. The division’s contract renewals increased 8% year-over-year in the quarter, compared to 9% year-over-year growth in Q1 2022.

Improved earnings metrics improved OR by 450 basis points (84.5% adjusted OR). Salaries, wages and benefits lines as a percentage of revenue in asset-based segments were the biggest movers, down 540 bps year-over-year.

So far, July’s daily asset-based earnings are up 18% year-over-year. Tonnage is up 6% on his and yield including fuel surcharges is up 11%.

Asset-light revenues, including brokerage fees, were $632 million, up 91% year-over-year. The sector saw a margin improvement of 220 bps year-on-year and posted an OR of 94.5%. His daily earnings in July were up 76% year over year.

ArcBest has exhausted its 2022 capex budget. The company currently plans to make net capex between $240 million and He $250 million, with He $35 million less at the midpoint of the range. Expenditures included $115 million in equipment purchases and $45-50 million in real estate spending.

ArcBest will hold a conference call with analysts at 9:30 am on Friday to discuss the results.

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The FREIGHTWAVES TOP 500 Our list of rental carriers includes Schneider (No.7), ArcBest (No.26) and forward air (No. 37).

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