ArcBest Reports Record Revenue for Q3
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ArcBest saw its highest quarterly revenue and operating income in its history during the third quarter, the company reported Nov 2.
The Fort Smith, Ark.-based supply chain logistics company posted net income of $63.7 million, or $2.38 a diluted share, for the three months ending Sept. 30. That compared with $29.4 million, $1.11, during the same time the previous year.
Total revenue increased by 27.9% to a record $1.02 billion from $795 million. Operating income increased 120.1% to $87.6 million from $39.8 million during the same time last year.
Press Release: ArcBest Announces Third Quarter 2021 Results: https://t.co/aSIZmmbpkY pic.twitter.com/b1p3CWWJZO — ArcBest (@ArcBestCorp) November 2, 2021
“This quarter, we achieved the highest quarterly revenue and operating income in ArcBest history, demonstrating the success of our growth strategy and cost management efforts and validating our strategic vision for the company,” ArcBest CEO Judy McReynolds said during a call with investors Nov. 2. “These results further strengthen our record-breaking 2021 performance and bolster our leading position as an integrated logistics powerhouse.”
McReynolds added profit margin improvements and financial performance consistency shows the growth strategy and cost management efforts are paying off. It represents a strategy she believes the company is positioned to continue advancing given financial performance in the legacy business and the recent acquisition of truckload freight brokerage company MoLo Solutions. McReynolds noted the acquisition is expected to build and amplify shipping and logistics services.
“This quarter, we are proud of the progress we made toward our goal of balancing our revenue mix,” McReynolds said. “Each step of the way, our willingness to listen and our agility allows us to better support customers who often need both asset-based and asset-light solutions.”
McReynolds
She added the asset-based business capabilities have been invaluable over the past few years as the carrier has worked to make the customer experience seamless across its integrated solutions.
“To advance the third tenet of this strategy, optimizing our cost structure, we are adopting innovative technologies that help us serve our customers in their preferred channels,” McReynolds said. “Our digital capabilities continue to provide us with a significant advantage in streamlining processes, reducing costs and augmenting human expertise. We stay close to our customers and carrier partners to provide them the services and connectivity they need.”
The results came close to meeting expectations of investment analysts on Wall Street, who had been looking for $2.47 per share and quarterly revenue of $1.01 billion, according to Zacks Consensus Estimate.
The asset-based segment reported that revenue for the quarter increased 21.2% to $681.2 million from $561.9 million during the same time last year. Operating income for the segment increased 128.4% to $83.6 million from $36.6 million last year.
The segment results were driven by strong shipper demand and a solid pricing environment. Total tonnage per day increased 2.4%, including an increase of 2.5% in LTL-rated weight per shipment. Total shipments per day increased 0.5% while the total billed revenue per hundredweight increased 17.1%. Tonnage and shipment growth year-over-year was the result of an emphasis on allocating network resources to serving core LTL customers.
The asset-light segment saw revenue increase 38.8% to a record $371.7 million from $267.8 million during the prior-year quarter. Operating income increased 98.2% to a new high of $11.5 million from $5.8 million.
The results were driven by positive momentum in the segment continuing in the third quarter. Increased demand for expedited and truckload logistics services resulted in higher shipment levels and higher average revenue per shipment. The increase in operating income reflects the benefits of higher revenue, partially offset by increased personnel costs in response to shipment growth and continued investments in technology.
FleetNet America also contributed to the overall growth with its revenue increasing 31.6% to $66.5 million from $50.5 million. ArcBest launched the fleet maintenance and repair solutions platform for commercial and private fleets. Its operating income increased 28.6% to $1.27 million from $987,000.
ArcBest ranks No. 15 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
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