ARCBEST CORP /DE/ [ARCB] Filings

10-Q 1 arcb-20220930x10q.htm 10-Q

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2022

☐

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission file number 000-19969

ARCBEST CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of
incorporation or organization)

71-0673405

(I.R.S. Employer Identification No.)

8401 McClure Drive

Fort Smith, Arkansas 72916

(479) 785-6000

(Address, including zip code, and telephone number, including

area code, of the registrant’s principal executive offices)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report.)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock $0.01 Par Value	ARCB	Nasdaq

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


	Large accelerated filer ☒		Accelerated filer ☐
	Non-accelerated filer ☐		Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Class		Outstanding at October 28, 2022
Common Stock, $0.01 par value		24,417,880 shares

Table of Contents

ARCBEST CORPORATION

INDEX


		Page

PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated Balance Sheets — September 30, 2022 and December 31, 2021	3

	Consolidated Statements of Operations — For the Three and Nine Months ended September 30, 2022 and 2021	4

	Consolidated Statements of Comprehensive Income — For the Three and Nine Months ended September 30, 2022 and 2021	5

	Consolidated Statement of Stockholders’ Equity — For the Three and Nine Months ended September 30, 2022 and 2021	6

	Consolidated Statement of Cash Flows — For the Nine Months ended September 30, 2022 and 2021	8

	Notes to Consolidated Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	52

Item 4.	Controls and Procedures	52

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	53

Item 1A.	Risk Factors	53

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	53

Item 3.	Defaults Upon Senior Securities	53

Item 4.	Mine Safety Disclosures	54

Item 5.	Other Information	54

Item 6.	Exhibits	55

SIGNATURES		57

Table of Contents

PART I.

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ARCBEST CORPORATION

CONSOLIDATED BALANCE SHEETS


	September 30		December 31
	2022		2021
	(Unaudited)
	(in thousands, except share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	155,531	$	76,620
Short-term investments		145,758		48,339
Accounts receivable, less allowances (2022 – $15,441; 2021 – $13,226)		627,092		582,344
Other accounts receivable, less allowances (2022 – $709; 2021 – $690)		11,472		13,094
Prepaid expenses		32,280		40,104
Prepaid and refundable income taxes		16,010		9,654
Other		9,885		5,898
TOTAL CURRENT ASSETS		998,028		776,053
PROPERTY, PLANT AND EQUIPMENT
Land and structures		361,705		350,694
Revenue equipment		1,014,369		980,283
Service, office, and other equipment		291,595		251,085
Software		178,145		175,989
Leasehold improvements		20,865		16,931
		1,866,679		1,774,982
Less allowances for depreciation and amortization		1,120,962		1,079,061
PROPERTY, PLANT AND EQUIPMENT, net		745,717		695,921
GOODWILL		307,252		300,337
INTANGIBLE ASSETS, net		116,922		126,580
OPERATING RIGHT-OF-USE ASSETS		164,654		106,686
DEFERRED INCOME TAXES		5,563		5,470
OTHER LONG-TERM ASSETS		101,978		101,629
TOTAL ASSETS	$	2,440,114	$	2,112,676

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	329,887	$	311,401
Income taxes payable		7,668		12,087
Accrued expenses		331,610		305,851
Current portion of long-term debt		63,521		50,615
Current portion of operating lease liabilities		24,686		22,740
TOTAL CURRENT LIABILITIES		757,372		702,694
LONG-TERM DEBT, less current portion		189,798		174,917
OPERATING LEASE LIABILITIES, less current portion		146,134		88,835
POSTRETIREMENT LIABILITIES, less current portion		16,681		16,733
OTHER LONG-TERM LIABILITIES		134,701		135,537
DEFERRED INCOME TAXES		69,136		64,893
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value, authorized 70,000,000 shares; issued 2022: 29,747,867 shares, 2021: 29,359,597 shares		297		294
Additional paid-in capital		337,113		318,033
Retained earnings		1,054,294		801,314
Treasury stock, at cost, 2022: 5,340,836 shares; 2021: 4,492,514 shares		(269,390)		(194,273)
Accumulated other comprehensive income		3,978		3,699
TOTAL STOCKHOLDERS’ EQUITY		1,126,292		929,067
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,440,114	$	2,112,676

See notes to consolidated financial statements.

Table of Contents

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS


	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021

	(Unaudited)
	(in thousands, except share and per share data)
REVENUES	$	1,351,831	$	1,016,657	$	4,079,834	$	2,794,843

OPERATING EXPENSES		1,236,070		929,096		3,731,799		2,600,792

OPERATING INCOME		115,761		87,561		348,035		194,051

OTHER INCOME (COSTS)
Interest and dividend income		1,147		323		1,614		1,037
Interest and other related financing costs		(1,749)		(2,072)		(5,551)		(6,774)
Other, net		(189)		338		(3,822)		2,641
		(791)		(1,411)		(7,759)		(3,096)

INCOME BEFORE INCOME TAXES		114,970		86,150		340,276		190,955

INCOME TAX PROVISION		26,128		22,459		79,404		42,922

NET INCOME	$	88,842	$	63,691	$	260,872	$	148,033

EARNINGS PER COMMON SHARE
Basic	$	3.61	$	2.48	$	10.59	$	5.79
Diluted	$	3.50	$	2.38	$	10.18	$	5.51

AVERAGE COMMON SHARES OUTSTANDING
Basic		24,605,228		25,632,805		24,640,706		25,559,642
Diluted		25,372,755		26,770,146		25,626,225		26,872,381

See notes to consolidated financial statements.

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ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended

Nine Months Ended

September 30

2022

2021

2022

2021

(Unaudited)

(in thousands)

NET INCOME

88,842

63,691

260,872

148,033

OTHER COMPREHENSIVE INCOME (LOSS), net of tax

Postretirement benefit plans:

Amortization of unrecognized net periodic benefit costs, net of tax of: (2022 – Three-month period $49, Nine-month period $146; 2021 – Three-month period $35, Nine-month period $104)

Net actuarial gain

(141)

(100)

(422)

(300)

Interest rate swap and foreign currency translation:

Change in unrealized income on interest rate swap, net of tax of: (2022 – Three-month period $206, Nine-month period $844; 2021 – Three-month period $46, Nine-month period $309)

581

128

2,383

869

Change in foreign currency translation, net of tax of: (2022 – Three-month period $509, Nine-month period $595; 2021 – Three-month period $288, Nine-month period $45)

(1,436)

(813)

(1,682)

128

OTHER COMPREHENSIVE INCOME (LOSS), net of tax

(996)

(785)

279

697

TOTAL COMPREHENSIVE INCOME

87,846

62,906

261,151

148,730

See notes to consolidated financial statements.

Table of Contents

ARCBEST CORPORATION

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY


	Three and Nine Months Ended September 30, 2022
											Accumulated
				Additional							Other
	Common Stock			Paid-In		Retained		Treasury Stock			Comprehensive		Total
	Shares	Amount		Capital		Earnings		Shares	Amount		Income		Equity

	(Unaudited)
	(in thousands)
Balance at December 31, 2021	29,360	$	294	$	318,033	$	801,314	4,493	$	(194,273)	$	3,699	$	929,067
Net income							69,569							69,569
Other comprehensive income, net of tax												1,624		1,624
Issuance of common stock under share-based compensation plans	25		—		—									—
Shares withheld for employee tax remittance on share-based compensation					(1,367)									(1,367)
Share-based compensation expense					2,763									2,763
Purchase of treasury stock								194		(16,506)				(16,506)
Forward contract for accelerated share repurchases					25,000			214		(25,000)				—
Dividends declared on common stock							(1,978)							(1,978)
Balance at March 31, 2022	29,385	$	294	$	344,429	$	868,905	4,901	$	(235,779)	$	5,323	$	983,172
Net income							102,461							102,461
Other comprehensive loss, net of tax												(349)		(349)
Issuance of common stock under share-based compensation plans	230		2		(2)									—
Shares withheld for employee tax remittance on share-based compensation					(8,270)									(8,270)
Share-based compensation expense					3,878									3,878
Purchase of treasury stock								208		(14,731)				(14,731)
Dividends declared on common stock							(2,949)							(2,949)
Balance at June 30, 2022	29,615	$	296	$	340,035	$	968,417	5,109	$	(250,510)	$	4,974	$	1,063,212
Net income							88,842							88,842
Other comprehensive loss, net of tax												(996)		(996)
Issuance of common stock under share-based compensation plans	133		1		(1)									—
Shares withheld for employee tax remittance on share-based compensation					(6,096)									(6,096)
Share-based compensation expense					3,175									3,175
Purchase of treasury stock								232		(18,880)				(18,880)
Dividends declared on common stock							(2,965)							(2,965)
Balance at September 30, 2022	29,748	$	297	$	337,113	$	1,054,294	5,341	$	(269,390)	$	3,978	$	1,126,292

Table of Contents

ARCBEST CORPORATION

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (CONTINUED)


	Three and Nine Months Ended September 30, 2021
											Accumulated
				Additional							Other
	Common Stock			Paid-In		Retained		Treasury Stock			Comprehensive		Total
	Shares	Amount		Capital		Earnings		Shares	Amount		Income		Equity

	(Unaudited)
	(in thousands)
Balance at December 31, 2020	29,045	$	290	$	342,354	$	595,932	3,657	$	(111,173)	$	1,190	$	828,593
Net income							23,361							23,361
Other comprehensive income, net of tax												804		804
Issuance of common stock under share-based compensation plans	12		1		(1)									—
Shares withheld for employee tax remittance on share-based compensation					(165)									(165)
Share-based compensation expense					2,354									2,354
Purchase of treasury stock								15		(1,001)				(1,001)
Dividends declared on common stock							(2,037)							(2,037)
Balance at March 31, 2021	29,057	$	291	$	344,542	$	617,256	3,672	$	(112,174)	$	1,994	$	851,909
Net income							60,981							60,981
Other comprehensive income, net of tax												678		678
Issuance of common stock under share-based compensation plans	261		2		(2)									—
Shares withheld for employee tax remittance on share-based compensation					(9,601)									(9,601)
Share-based compensation expense					3,324									3,324
Purchase of treasury stock								111		(7,099)				(7,099)
Dividends declared on common stock							(2,058)							(2,058)
Balance at June 30, 2021	29,318	$	293	$	338,263	$	676,179	3,783	$	(119,273)	$	2,672	$	898,134
Net income							63,691							63,691
Other comprehensive loss, net of tax												(785)		(785)
Issuance of common stock under share-based compensation plans	34		1		(1)									—
Shares withheld for employee tax remittance on share-based compensation					(836)									(836)
Share-based compensation expense					2,889									2,889
Dividends declared on common stock							(2,050)							(2,050)
Balance at September 30, 2021	29,352

ARCBEST CORP /DE/ [ARCB] Filings
10-Q	[2022-11-04]
10-Q	[2022-08-05]
10-Q	[2022-05-06]
10-K	[2022-02-25]
10-Q	[2021-11-05]
10-Q	[2021-08-06]
10-Q	[2021-05-07]
10-K	[2021-02-26]
10-Q	[2020-11-06]
10-Q	[2020-08-06]
10-Q	[2020-05-11]
10-K	[2020-02-28]
10-Q	[2019-11-08]
10-Q	[2019-08-08]
10-Q	[2019-05-09]
10-K	[2019-02-28]
10-Q	[2018-11-08]
10-Q	[2018-08-08]
10-Q	[2018-05-10]
10-K	[2018-02-28]
10-Q	[2017-11-08]
10-Q	[2017-08-08]
10-Q	[2017-05-09]
10-K	[2017-02-28]
10-Q	[2016-11-08]
10-Q	[2016-08-05]
10-Q	[2016-05-09]
10-K	[2016-02-26]
10-Q	[2015-11-06]
10-Q	[2015-08-07]
10-Q	[2015-05-08]
10-K	[2015-03-02]
10-Q	[2014-11-07]
10-Q	[2014-08-08]
10-Q	[2014-05-09]
10-K	[2014-02-28]
10-Q	[2013-11-12]
10-Q	[2013-08-09]
10-Q	[2013-05-08]
10-K	[2013-02-28]
10-Q	[2012-11-07]
10-Q	[2012-08-08]
10-Q	[2012-05-09]
10-K	[2012-02-29]