UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended
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
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of | (I.R.S. Employer Identification No.) |
(
(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 |
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. ☒
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). ☒
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.
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).
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 November 2, 2023 |
Common Stock, $0.01 par value |
ARCBEST CORPORATION
INDEX
PART I.
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ARCBEST CORPORATION
CONSOLIDATED BALANCE SHEETS
September 30 | December 31 | ||||||
| 2023 |
| 2022 |
| |||
(Unaudited) | |||||||
(in thousands, except share data) | |||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | | $ | | |||
Short-term investments |
| |
| | |||
Accounts receivable, less allowances (2023 – $ |
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Other accounts receivable, less allowances (2023 – $ |
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Prepaid expenses |
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Prepaid and refundable income taxes |
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Current assets of discontinued operations | — | | |||||
Other |
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TOTAL CURRENT ASSETS |
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PROPERTY, PLANT AND EQUIPMENT | |||||||
Land and structures |
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Revenue equipment |
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Service, office, and other equipment |
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Software |
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Leasehold improvements |
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Less allowances for depreciation and amortization |
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PROPERTY, PLANT AND EQUIPMENT, net |
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GOODWILL |
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INTANGIBLE ASSETS, net |
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OPERATING RIGHT-OF-USE ASSETS | | | |||||
DEFERRED INCOME TAXES |
| |
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LONG-TERM ASSETS OF DISCONTINUED OPERATIONS | — | | |||||
OTHER LONG-TERM ASSETS |
| |
| | |||
TOTAL ASSETS | $ | | $ | | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable | $ | | $ | | |||
Income taxes payable |
| |
| | |||
Accrued expenses |
| |
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Current portion of long-term debt |
| |
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Current portion of operating lease liabilities | | | |||||
Current liabilities of discontinued operations | — | | |||||
TOTAL CURRENT LIABILITIES |
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| | |||
LONG-TERM DEBT, less current portion |
| |
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OPERATING LEASE LIABILITIES, less current portion | | | |||||
POSTRETIREMENT LIABILITIES, less current portion |
| |
| | |||
LONG-TERM LIABILITIES OF DISCONTINUED OPERATIONS | — | | |||||
CONTINGENT CONSIDERATION | | | |||||
OTHER LONG-TERM LIABILITIES |
| |
| | |||
DEFERRED INCOME TAXES |
| |
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STOCKHOLDERS’ EQUITY | |||||||
Common stock, $ |
| |
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Additional paid-in capital |
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Retained earnings |
| |
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Treasury stock, at cost, 2023: |
| ( |
| ( | |||
Accumulated other comprehensive income |
| |
| | |||
TOTAL STOCKHOLDERS’ EQUITY |
| |
| | |||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | | $ | |
See notes to consolidated financial statements.
3
ARCBEST CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended | Nine Months Ended | ||||||||||||
September 30 | September 30 | ||||||||||||
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| |||||
(Unaudited) | |||||||||||||
(in thousands, except share and per share data) | |||||||||||||
REVENUES | $ | | $ | | $ | | $ | | |||||
OPERATING EXPENSES |
| | |
| | | |||||||
OPERATING INCOME |
| |
| |
| |
| | |||||
OTHER INCOME (COSTS) | |||||||||||||
Interest and dividend income |
| |
| |
| |
| | |||||
Interest and other related financing costs |
| ( |
| ( |
| ( |
| ( | |||||
Other, net |
| |
| ( |
| |
| ( | |||||
| |
| ( |
| |
| ( | ||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
| |
| |
| |
| | |||||
INCOME TAX PROVISION |
| |
| |
| |
| | |||||
NET INCOME FROM CONTINUING OPERATIONS | | | | | |||||||||
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | ( | | | | |||||||||
NET INCOME | $ | | $ | | $ | | $ | | |||||
BASIC EARNINGS PER COMMON SHARE | |||||||||||||
Continuing operations | $ | | $ | | $ | | $ | | |||||
Discontinued operations | — | | | | |||||||||
$ | | $ | | $ | | $ | | ||||||
DILUTED EARNINGS PER COMMON SHARE | |||||||||||||
Continuing operations | $ | | $ | | $ | | $ | | |||||
Discontinued operations | — | | | | |||||||||
$ | | $ | | $ | | $ | | ||||||
AVERAGE COMMON SHARES OUTSTANDING | |||||||||||||
Basic |
| |
| |
| |
| | |||||
Diluted |
| |
| |
| |
| |
See notes to consolidated financial statements.
4
ARCBEST CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three Months Ended | Nine Months Ended | ||||||||||||
September 30 | September 30 | ||||||||||||
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| |||||
(Unaudited) | |||||||||||||
(in thousands) | |||||||||||||
NET INCOME | $ | | $ | | $ | | $ | | |||||
OTHER COMPREHENSIVE INCOME (LOSS), net of tax | |||||||||||||
Postretirement benefit plans: | |||||||||||||
Amortization of unrecognized net periodic benefit credit, net of tax of: | |||||||||||||
Net actuarial gain |
| ( |
| ( |
| ( |
| ( | |||||
Interest rate swap and foreign currency translation: | |||||||||||||
Change in unrealized income (loss) on interest rate swap, net of tax of: | ( | | ( | | |||||||||
Change in foreign currency translation, net of tax of: |
| ( |
| ( |
| |
| ( | |||||
| |||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS), net of tax |
| ( |
| ( |
| ( |
| | |||||
TOTAL COMPREHENSIVE INCOME | $ | | $ | | $ | | $ | |
See notes to consolidated financial statements.
5
ARCBEST CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Three Months Ended September 30, 2023 and 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 June 30, 2023 |
| | $ | | $ | | $ | |
| | $ | ( | $ | | $ | | ||||||
Net income |
| |
| | ||||||||||||||||||
Other comprehensive loss, net of tax |
| ( |
| ( | ||||||||||||||||||
Issuance of common stock under share-based compensation plans |
| |
| — |
| — |
| — | ||||||||||||||
Shares withheld for employee tax remittance on share-based compensation |
| ( |
| ( | ||||||||||||||||||
Share-based compensation expense |
| |
| | ||||||||||||||||||
Purchase of treasury stock | | ( | ( | |||||||||||||||||||
Dividends declared on common stock |
| ( |
| ( | ||||||||||||||||||
Balance at September 30, 2023 |
| | $ | | $ | | $ | |
| | $ | ( | $ | | $ | | ||||||
Balance at June 30, 2022 |
| | $ | | $ | | $ | |
| | $ | ( | $ | | $ | | ||||||
Net income |
| |
| | ||||||||||||||||||
Other comprehensive loss, net of tax |
| ( |
| ( | ||||||||||||||||||
Issuance of common stock under share-based compensation plans |
| |
| |
| ( |
| — | ||||||||||||||
Shares withheld for employee tax remittance on share-based compensation |
| ( |
| ( | ||||||||||||||||||
Share-based compensation expense |
| |
| | ||||||||||||||||||
Purchase of treasury stock | | ( | ( | |||||||||||||||||||
Dividends declared on common stock |
| ( |
| ( | ||||||||||||||||||
Balance at September 30, 2022 |
| | $ | | $ | | $ | |
| | $ | ( | $ | | $ | |
Nine Months Ended September 30, 2023 and 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, 2022 |
| | $ | | $ | | $ | |
| | $ | ( | $ | | $ | | ||||||
Net income |
| |
| | ||||||||||||||||||
Other comprehensive loss, net of tax | ( | ( | ||||||||||||||||||||
Issuance of common stock under share-based compensation plans | |
| | ( | — | |||||||||||||||||
Shares withheld for employee tax remittance on share-based compensation | ( | ( | ||||||||||||||||||||
Share-based compensation expense | | | ||||||||||||||||||||
Purchase of treasury stock | | ( | ( | |||||||||||||||||||
Dividends declared on common stock |
| ( | ( | |||||||||||||||||||
Balance at September 30, 2023 |
| | $ | | $ | | $ | |
| | $ | ( | $ | | $ | | ||||||
Balance at December 31, 2021 |
| | $ | | $ | | $ | |
| | $ | ( | $ | | $ | | ||||||
Net income |
| |
| | ||||||||||||||||||
Other comprehensive income, net of tax | | | ||||||||||||||||||||
Issuance of common stock under share-based compensation plans | |
| | ( | — | |||||||||||||||||
Shares withheld for employee tax remittance on share-based compensation | ( | ( | ||||||||||||||||||||
Share-based compensation expense | | | ||||||||||||||||||||
Purchase of treasury stock | | ( | ( | |||||||||||||||||||
Forward contract for accelerated share repurchases | | | ( | — | ||||||||||||||||||
Dividends declared on common stock |
| ( | ( | |||||||||||||||||||
Balance at September 30, 2022 |
| | $ | | $ | | $ | |
| | $ | ( | $ | | $ | |
See notes to consolidated financial statements.
6
ARCBEST CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended | |||||||
September 30 | |||||||
| 2023 |
| 2022 |
| |||
(Unaudited) | |||||||
(in thousands) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | | $ | | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization |
| |
| | |||
Amortization of intangibles |
| |
| | |||
Share-based compensation expense |
| |
| | |||
Provision for losses on accounts receivable |
| |
| | |||
Change in deferred income taxes |
| ( |
| | |||
(Gain) loss on sale of property and equipment |
| |
| ( | |||
Gain on sale of subsidiary | — | ( | |||||
Pre-tax gain on sale of discontinued operations | ( | — | |||||
Lease impairment charges | | — | |||||
Change in fair value of contingent consideration | ( | | |||||
Change in fair value of equity investment | ( | — | |||||
Changes in operating assets and liabilities: | |||||||
Receivables |
| |
| ( |