ArcBest logs quarter loss of $2.3M
ArcBest on Tuesday reported a first-quarter loss of $2.31 million, or 10 cents per share, compared with a profit of $71.28 million, or $2.84 per share, a year ago.
Revenue for the quarter dropped 6.30% from the same quarter a year ago, to $1.04 billion.
The Fort-Smith based transportation and logistics company announced its first quarter earnings before a conference call with investors on Tuesday.
Judy R. McReynolds, ArcBest chairman, president and chief executive officer, said she is proud of the company’s employees commitment to excellence resulting in operational efficiency gains.
“This commitment was also evident in our performance in this softer freight environment and the receipt of numerous customer and industry recognitions, including ABF’s recent receipt of the prestigious ATA Excellence in Security Award,” she said.
Included in the company’s net loss is a $21.6 million after-tax, non cash impairment charge associated with the company’s investment in Phantom Auto, which ceased operations during the first quarter of 2024.
On a non-GAAP basis, net income was $32.3 million, or $1.34 per diluted share, compared to $39.5 million, or $1.58 million per diluted share, in 2023. Financial estimates prior to the report estimated ArcBest would post non-GAAP earnings of $1.57 per share. GAAP stands for generally accepted accounting principles.
ArcBest’s fourth quarter operating income from continuing operations was $42.6 million, compared to $51.9 million in the first quarter of 2022.
The company’s asset-based segment, ABF Freight, saw a revenue of $671.5 million compared to $697.8 million in the first quarter of 2023, a per day decrease of 3%.
The tonnage and shipments per day decreased in the first quarter, with tonnage per day decreasing by 16.8% including a decrease of 6.2% in total shipments per day. The company saw an increase in its total billed revenue per hundredweight by 15.6%.
Its core daily shipments saw an increase of 12% in the quarter, with a tonnage increase of 9%.
The company’s asset-light segment saw a revenue of $396.4 million in the first quarter, compared to $438.1 million
in the first quarter of 2023, a per day decrease of 8.8%.
The segment reported an operating loss of $15.3 million, which was an increase of the reported operating loss of $14.1 million in 2023.
According to the company the segment was affected by lower revenue per shipment and reduced margins associated with the changes in business mix and the soft rate environment.
Shipments per day for the segment grew by 13.6%, as the managed transportation solution successfully partnered with more customers to optimize their logistics spend.
Compared to 2023, revenue for the segment was down per day of 7.1%, with weather events in January resulting in significantly higher purchased transportation costs as a percentage of revenue.
Total shipments per day for the segment were flat when compared to the same quarter in 2023, and operating expenses were slightly lower as employee productivity and cost per shipment metrics improved.
ArcBest shares fell $18.54, or 14%, to close Tuesday at $10.91. The shares have traded between $153.60 and $82.18 in the past 52 weeks.