ARCBEST CORPORATION ITEM 7.01 - REGULATION FD DISCLOSURE
There were 21 working days in
Asset-Based Operating Segment
For the month of
? Daily Billed Revenue was flat.
Total Tonnage/Day increased approximately 3.5% with a high single-digit
? percentage increases in LTL-rated tonnage and double-digit percentage decreases
in truckload-rated spot shipment tonnage moving in the Asset-Based network.
? Total Shipments/Day decreased approximately 1.5%.
? Total Weight/Shipment increased approximately 5%.
? Total Billed Revenue/CWT decreased approximately 3.5%, impacted by lower fuel
surcharges and freight mix changes, including the effect of heavier shipments.
? Pricing on traditional published LTL-rated business, excluding fuel surcharge,
increased by a percentage in the mid-single digits compared to
? Total Billed Revenue/Shipment increased approximately 1.5%.
In recent years, the historical average sequential change in
Asset-Based operating ratio in the third quarter, versus the second quarter,
has been approximately flat. Sequential revenue trends through August have
? exceeded historical sequential revenue changes, because of the significant
impact of the pandemic on second quarter business levels. Though some
compensation-related cost reductions that were implemented in second quarter
2020 were restored at the beginning of third quarter, operating costs continue
to be managed relative to the improving business and revenue levels.
For the month of
? Daily Billed Revenue increased approximately 2%.
? Total Tonnage/Day increased approximately 2%.
? Total Shipments/Day increased approximately 3.5%.
Asset-Light ArcBest Segment (not including FleetNet)
For the month of
? Total revenue per day increased approximately 15%.
? Purchased transportation expense per day increased approximately 16%.
? Purchased transportation expense represented approximately 83.0% of revenues in
? Purchased transportation rates have increased due to tightness in capacity
markets, resulting in margin compression between the two periods.
For the month of
ArcBest Consolidated
For the third quarter of 2020 through the end of August, preliminary financial metrics are as follows:
investments, net of debt, increased to approximately
? position compared to the
primarily reflecting improved EBITDA, partially offset by working capital
changes and capital expenditures during the two-month period of July and August
2020. ITEM 8.01 - OTHER EVENTS
In
In
The following is a "safe harbor" statement under the Private Securities
Litigation Reform Act of 1995: Certain statements and information in this
report may constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Terms such as "anticipate,"
"believe," "could," "estimate," "expect," "forecast," "foresee," "intend,"
"may," "plan," "predict," "project," "scheduled," "should," "would," and similar
expressions and the negatives of such terms are intended to identify
forward-looking statements. These statements are based on management's beliefs,
assumptions, and expectations based on currently available information, are not
guarantees of future performance, and involve certain risks and uncertainties
(some of which are beyond our control). Although we believe that the
expectations reflected in these forward-looking statements are reasonable as and
when made, we cannot provide assurance that our expectations will prove to be
correct. Actual outcomes and results could materially differ from what is
expressed, implied, or forecasted in these statements due to a number of
factors, including, but not limited to: a failure of our information systems,
including disruptions or failures of services essential to our operations or
upon which our information technology platforms rely, data breach, and/or
cybersecurity incidents; the ability to maintain third-party information
technology systems or licenses; widespread outbreak of an illness or any other
communicable disease and the effects of pandemics, including the COVID-19
pandemic, or any other public health crisis; regulatory measures that may be
implemented in response to widespread illness, including the COVID-19 pandemic;
ineffectiveness of our business continuity plans to meet our operational needs
in the event of adverse external events or conditions; untimely or ineffective
development and implementation of, or failure to realize potential benefits
associated with, new or enhanced technology or processes, including the pilot
test program at ABF Freight, and any write-offs associated therewith; the loss
or reduction of business from large customers; competitive initiatives and
pricing pressures; general economic conditions and related shifts in market
demand, including the impact of and uncertainties related to the COVID-19
pandemic, that impact the performance and needs of industries we serve and/or
limit our customers' access to adequate financial resources; the ability to
manage our cost structure, and the timing and performance of growth initiatives;
relationships with employees, including unions, and our ability to attract,
retain, and develop employees; unfavorable terms of, or the inability to reach
agreement on, future collective bargaining agreements or a workforce stoppage by
our employees covered under ABF Freight's collective bargaining agreement; our
ability to secure independent owner operators and/or operational or regulatory
issues related to our use of their services; availability and cost of reliable
third-party services; availability of fuel, the effect of volatility in fuel
prices and the associated changes in fuel surcharges on securing increases in
base freight rates, and the inability to collect fuel surcharges; governmental
regulations; environmental laws and regulations, including emissions-control
regulations; union employee wages and benefits, including changes in required
contributions to multiemployer plans; litigation or claims asserted against us;
the loss of key employees or the inability to execute succession planning
strategies; maintaining our intellectual property rights, brand, and corporate
reputation; default on covenants of financing arrangements and the availability
and terms of future financing arrangements; timing and amount of capital
expenditures; self-insurance claims and insurance premium costs; increased
prices for and decreased availability of new revenue equipment, decreases in
value of used revenue equipment, and higher costs of equipment-related operating
expenses such as maintenance, fuel, and related taxes; potential impairment of
goodwill and intangible assets; the cost, integration, and performance of any
recent or future acquisitions; seasonal fluctuations and adverse weather
conditions; regulatory, economic, and other risks arising from our international
business; acts of terrorism or war, or the impact of antiterrorism and safety
measures; and other financial, operational, and legal risks and uncertainties
detailed from time to time in
For additional information regarding known material factors that could cause our
actual results to differ from our projected results, please see our filings with
the
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events, or otherwise.
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