NASDAQ$ARCB

ArcBest Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

ArcBest's financial performance for Q1 2020 was announced, revealing mixed results across its segments.

ArcBest reported a decrease in revenue to $701.4 million from $711.8 million in Q1 2019. Net income decreased to $1.9 million, or $0.07 per diluted share, compared to $4.9 million, or $0.18 per diluted share in the same period last year. However, on a non-GAAP basis, net income was $9.4 million, or $0.36 per diluted share, compared to $6.7 million, or $0.25 per diluted share in Q1 2019.

  • ArcBest reported Q1 2020 revenue of $701.4 million and net income of $1.9 million, or $0.07 per diluted share.
  • On a non-GAAP basis, Q1 2020 net income was $9.4 million, or $0.36 per diluted share.
  • Asset-Based tonnage growth and cost management resulted in solid profitability.
  • Asset-Light business was impacted by lower demand and reduced revenue per shipment.

Headline financials

Total Revenue

$701M

Previous: $712M-1.5%
EPS (adj)

$0.36

Previous: $0.17+111.8%
Billed Revenue / CWT

$33.16

Previous: $34.66-4.3%
Shipments / Day

18.8K

Previous: 19.2K-2.2%
Tonnage / Day

12.1K

Previous: 11.6K+4.6%
Average Length of Haul (Miles)

1.0K

Previous: 1.0K+1.9%
Capital Expenditures

-$6.74M

Previous: -$15.5M+56.6%
Free Cash Flow

-$4.84M

Previous: -$10.7M+54.6%
Net Income

$1.9M

Previous: $4.89M-61.1%
Operating Income

$7.82M

Previous: $8.59M-9.0%
Gross Profit

$92K

Previous: $67K+37.3%
Cash & Equivalents

$352M

Previous: $138M+154.5%
Total Assets

$1.83B

Previous: $1.56B+17.6%
Stock-Based Comp

$2.18M

Previous: $2.06M+6.0%

Revenue & EPS history

ArcBest · Revenue · Quarterly

$701M

Q1 2020-1.5%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

ArcBest · $733M total across 2 segments · Q1 2020

  • Asset-Based
    $516M+1.9%
  • Asset-Light
    $217M-4.1%

Forward guidance

ArcBest anticipates that the second quarter 2020 expense reductions associated with compensation and other cost reductions implemented in response to the pandemic will be in a range of $15 million to $20 million, provided the measures are maintained throughout second quarter 2020.

Tailwinds

  • The broad array of logistics services that ArcBest offers are critical to our nation’s recovery.
  • The knowledge and experience that our employees provide in crafting adaptive supply chain solutions will be an important resource for our customers as the nation begins to return to a level of normalcy.
  • We entered this challenging period in a position of financial strength
  • The steps we have taken to further enhance our liquidity and reduce our costs will help us navigate through the coming days.
  • Our industry is vital in playing a key role to ensure essential goods such as medical supplies and food are available when and where they are needed.

Headwinds

  • Significant April 2020 business decline due to COVID-19 resulted in a year-over-year and a sequential consolidated revenue reduction of approximately 20 percent during the month.
  • The duration and magnitude of COVID-19’s total impact are not fully understood.
  • Operational changes in the ABF Freight network designed to reduce costs have been made including workforce reductions to better align resources with business levels.
  • Cost reductions may not directly correspond during dramatic changes in business levels.
  • Effects of the coronavirus pandemic began impacting our customers’ businesses in late March

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.6%

Avg return

Earnings day

+4.5%

Avg return

5 days after

+6.0%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+29.4%

Q1 2018

Best reaction

-30.3%

Q1 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%-0.7%+5.4%
Q4 2025+5.9%+28.4%+20.3%
Q3 2025-1.1%-7.1%-0.3%
Q1 2025-4.0%+4.9%+9.2%
Q4 2024+1.2%+1.2%-16.7%
Q3 2024-3.5%+16.0%+10.7%
Q2 2024-13.8%-15.0%-12.6%
Q1 2024-16.3%-11.3%-20.4%
Q4 2023+9.6%+12.3%+14.2%
Q3 2023+26.0%+30.0%+38.3%
Q2 2023-2.1%-2.6%-12.6%
Q1 2023+1.9%+0.1%-3.2%
Q4 2022-4.2%+14.1%+15.3%
Q3 2022-8.0%-7.3%+1.8%
Q2 2022+0.2%-2.3%-0.4%
Q1 2022-1.1%+6.4%-0.9%
Q4 2021+5.7%+1.3%+6.9%
Q3 2021+14.1%+13.6%+7.2%
Q2 2021+9.0%+14.5%+16.6%
Q1 2021+13.5%+20.7%+2.5%
Q4 2020-0.4%+4.6%+35.2%
Q3 2020+8.9%+5.9%+38.6%
Q2 2020-3.8%-2.5%+7.4%
Q1 2020+7.2%+11.7%+28.2%
Q4 2019-11.4%-10.1%-21.3%
Q3 2019+0.0%+7.0%-2.5%
Q2 2019+7.1%+2.7%+5.4%
Q1 2019-0.5%-3.7%-17.4%
Q4 2018-5.7%-5.2%-11.5%
Q3 2018+12.0%+10.8%+8.5%
Q2 2018+2.1%+3.6%+7.7%
Q1 2018+29.4%+28.5%+33.8%
Q4 2017+4.9%-3.8%-7.4%
Q3 2017+5.9%-0.6%+14.2%
Q2 2017+29.3%+18.4%+20.7%
Q1 2017-30.3%-30.7%-25.7%
Q4 2016+0.6%+0.5%-12.2%
Q3 2016+10.9%+19.8%+52.7%
Q2 2016+0.4%-0.3%-0.4%
Q1 2016-14.4%
Q4 2015-12.1%
Q3 2015+2.4%
Q2 2015+2.2%
Q1 2015-4.4%
Q4 2014-4.4%
Q3 2014+8.5%
Q2 2014-20.1%
Q1 2014-0.4%
Q4 2013-2.6%
Q3 2013+2.9%
Q2 2013+19.4%
Q1 2013-3.6%
Q4 2012-1.2%
Q3 2012-15.0%
Q2 2012+1.2%
Q1 2012+1.0%
Q4 2011+1.7%
Q3 2011-1.7%
Q2 2009-1.7%
Q2 2011-2.4%
Q1 2010+7.8%
Q1 2011+1.5%
Q4 2008-4.1%
Q4 2010-4.1%
Q3 2010-1.8%
Q3 2009-1.8%
Q2 2010-6.3%
Q4 2009-6.3%

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