ArcBest (ARCB) 30 Apr 242024 Q1 Earnings call transcript

Company Profile

Participants

David Humphrey	executive
Judy McReynolds	executive
Matt Beasley	executive
Seth Runser	executive
Ravi Shanker	analyst
Christopher Adkins	executive
Jason Seidl	analyst
Jordan Alliger	analyst
Ken Hoexter	analyst
Daniel Imbro	analyst
Steven Leonard	executive
Brian Ossenbeck	analyst
Benjamin Mohr Mok	analyst
Thomas Wadewitz	analyst
Stephanie Benjamin Moore	analyst
Dennis Anderson	executive
Jeffrey Kauffman	analyst
Andrew Baxter Cox	analyst

Call transcript

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Operator

Good morning. My name is Dennis, and I will be your conference operator today. At this time, I would like to welcome everyone to the ArcBest First Quarter 2024 Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to Mr. of President Vice Humphrey, Investor Relations. David ahead. go Please

David Humphrey

results provide Thank our on the of quarter we'll some walk you joining us. details XXXX first recent for an our then business, through answer questions. update you Today, and walk -- through

for our are Judy the Freight. President CEO of President McReynolds, Officer; Financial remarks Beasley, Matt ABF ArcBest; Chief prepared and me Chairman, and Joining of Seth Runser

and Christopher President Chief In Vice of ArcBest Lot you forward-looking addition, Commercial be during some Steven and Anderson, and Leonard, better statements results, Logistics; to questions. made Strategy Strategy Yield this Officer Officer; available help Atkins, Chief President, Dennis understand are To call. our could Asset management in answer help

uncertainties and risks. Forward-looking their statements, by to very subject nature, are

of public could results, that meaningful more To For earnings affect forward-looking section discussion SEC a refer non-GAAP measures additional in release. presentation GAAP provided call the our comparisons, also please information the includes in release in of of Reconciliations complete section recent non-GAAP of filings. financial earnings future press financial most statements this the tables are and slides. as the our the discussed in call to discussed press related in measures this provide measures certain our ArcBest's and the information factors to described outlined

X-K XX.X the that found on be of can the was reminder, a deck this arcb.com conference is there and website, slide As filed morning. exhibit call a ArcBest earlier that

at of I to you the I all over want end know call that August. ArcBest be from turn will let to I Judy, retiring Before the

$XXX in success It's been a I have company my the part being could of million story have best quarter my company last look its privilege college right second watching century to XXXX, earnings a and career. LTL will that, I prosper to it of more the conference and of it now this an speaking multibillion-dollar to of proud one company. family. into the I'm grandfather integrated Judy. growing forward I X, spending a part to honor I in for logistics as career here the turn continues second entire ArcBest was of with It's the forward be to will decision do. from looking time business. made. been I out So been wonderful over came for But With of as a it cheering to call --

Judy McReynolds

gratitude enormous everyone. to morning, felt contributions Good for David expressing heart like to his I'd ArcBest. my to begin by

friend, the for closely continued working as asset-light closely has retirement, she a adds working seamless with his with year, believe David Vice ensure Treasurer of of we our Relations. as As am David. transition operations. Relations nearly Despite welcome million He of core Controller of he successI leading mendenhall role revenue XX ArcBest served that, and this Investor for recently the assumed he been the colleague quarter events. $X outstanding results, and with for We prepares responsibilities. President, and my to to until Amy occasion Investor Earlier rose has Throughout market and ArcBest she success has we weather these income. quarter solid people in our of and dedication been to excited leadership instrumental years and had as the have been spent Investor time as an new CEO Head with XX years team. nearly of our and our people, and navigated including a been billion tenure challenges, $XX first we delivered softness non-GAAP this operating in generating Amy before as our Amy even to well-deserved Relations which privilege I've celebrate remarkable us, his XX is

efficiently Our costs. managing a our focus delivering remains service running our value that on effectively and high-quality business, customers

for first some a our solid logistics costs. of XX% are X-point high-quality strategy our on continued customers remains has Demand solve helping value a service as our year effectively start services our efficiency that pipeline show strong continues the that of adviser our delivering to key the accelerating and innovation, focus to the customers, quarter act and that since highlights managing them while with challenges. driving by from grown all as trusted Here best their a growth, increasing

trends tonnage, We increasing with core asset-based daily shipments our over both in positive year. business have and last seen

creating is commitment much in hands-on This efficiencies on they approach that we excellence. enhance supply Our asset-light network and on-time the increasing strategies severe helping in shipment A in flexibility to a their operational value performance told logistics costs. focus our reducing volume chains. customers Despite has XXXX, our a with transportation weather to to achieved laser testament recently how since our highest and large their growth our long-time and managed to double-digit solutions. network, us testament customer January, the efficiency significantly grown optimize conditions

increase We growth to operational make and investments continue strategic efficiency. accelerate to

This area March, center. facilities. which supply smart anticipate will opening when includes the Lithia new our Springs to to productivity efficiencies our FOX city leverage solution from open to Georgia in chain Kansas next their from to Atlanta across our in across Suite gains and empowers operations committed the And Atlanta significant Olathe, distribution forklifts For unlock a the enable facility similar upcoming step we a and in city we to relocate that of which reach City announced productivity June, autonomy, facility teleoperations, instance, leading us Box increase center, set relocate the In operations needed. us with innovation. customers transformational the facilities. distribution trucks in Kansas, to remain automation allowed area We

I'd equity in related Before charge Auto, best in income. reduction address to our like million in I net pass a Matt, Fantom noncash which the the to to call investment impairment resulted $XX

the interest, a we've around underway remote-operated for XXXX, the of of a developed Auto a we forklifts announced launch committed instead investing of by $XX We own Phantom and ArcBest Auto encouraged transformative Smart detail. solutions teleoperations, to innovations our million part creative results have the Fantom of chain with transformative our staying legacy in centered solve take March January solution are and currently to real we in customer use locations. in required pilots key initiatives. that, over Matt Box more and in And leading-edge Autonomy through context, our Box to Since with strategic pilots to customers previously used. help initiative These investment proud significant it just autonomous ArcBest challenges. I'll you any customer of leveraging turn For of technology supply involved solutions and progress remain in our for our customers. seen are solution, one is example as developing in

Matt Beasley

for to Thank I'm delivered performance you, Judy, and that solid market the morning, financial pleased report quarter good ArcBest backdrop, everyone. XXXX. first Despite

overview Let with our me start results. consolidated an of

down the During billion first quarter, we last X% $X versus revenue, generated in year.

consolidated quarter to X% income impacts per operating operations last the our $XX of the day asset-light decrease first truckload driven Despite was share costs non-GAAP and labor non-GAAP non-GAAP quarter in The from related the a year. a income decrease level $X.XX to we compared operating Adjusted $XX continuing saw of million weather million from from in Our XXXX. in income per revenue contract, first by asset-based a a primarily was our of additional same market. operating as new business, earnings business decrease year. $X last January's achieved was in softer million $X.XX,

Starting with more about detail. talk in X the segments the let's Now, segment. Asset-Light

First quarter decrease was of daily revenue million, X% $XXX year-over-year. a approximately

XX%, revenue of and has $X.X operating increased due to which transportation largely shipment. weather was million shipment growth our costs. shipments softer the per The day January, a due XX% for managed the loss While purchase increased in to per per decreased which revenue in business, non-GAAP lower quarter market

saw we However, February loss on I'm pleased a profit a a with basis. small quarter, and in with throughout March the the in slight non-GAAP improvements

employee our have basis. expenses on improved on year-over-year operating over a We XX% focus productivity maintained and reducing

higher morning, per compared XX%, April XX% is day filed per the Looking by at for last year. revenue this while April preliminary results and X-K per X% shipment down is were are of that shipments day trending to in revenue down

than improvements improvement purchase operating for and costs, are I'm in the With transportation of which margins eventual numbers April lower recovery in overall operating the well March, brokerage our truckload positioned and we costs the While encouraged results. by helps are the somewhat productivity, market.

Moving on business. asset-based to our

XX million, points was above basis we was The First ratio the of the seen with sequential quarter $XXX XX.X%, XXX year X%. environments. XXXX. The of first have operating points performance fourth of freight and non-GAAP was a generally in the quarter last per line quarter improvement of performance an softer in revenue basis versus past day decrease segment's

costs, and costs and maintain our into quarter higher fourth strong freight more optimize quarter. we a demand mix, to our the benefit for lower productivity, quarter from move contributed sharing and manage discipline, union muted we all our As results first which with profit improve pricing

day First for quarter broadly below tonnage primarily levels the daily were shipments tonnage year to lower and and transactional XX% volumes by due prior decreased X% levels, more per lower industry.

LTL improved tonnage shipments core to and our better to financial and However, productivity results. continued contributing grow,

hundred points. to in lower The change last leading continued core first our in has a more increased as core mix of first second business in higher business sequential XX% was to transactional business towards basis transactional our profit quarter, over driven over per better in at the revenue rate growing levels an prices of and billed continue by XXX shift deferred shipment year-over-year higher and contract manage X.X% hundredweight. average outcome. improvement Our prices been and which Preliminary less productivity quarter and we discipline. pricing higher average to and asset-based from for ratio shipments, increase XXX show per a demonstrated of the revenue pricing the years during April with We mix to quarter customer an approximately a quarter agreements secured year-over-year operating tonnage the on the asset-based X the our results renewals our

of are solid We proud and position. first our financial quarter our performance

and pursue As continues Judy how to tradition innovation now continue advance customers efficiency delivering of its excellence. service to and proud shareholders. to our ABF while value Seth our will superior we said, discuss growth, to

Seth Runser

Matt. Thanks,

Our within that to our operational contribute focus people, capacity. remains on the control factors our productivity and excellence,

ourselves with on our Let's We culture. people. our pride strong start

We been they navigated process among we them problem to Over proud in fully and This that understand identify have marks commitment and empowers service. and list training of quality recognized year Awards development. Training Magazine's process, employee to X-step and a the resolve repeatedly employees to productivity successfully our elimination employees. freight problems, invest This and and our frontline to our Apex on our various adaptability continues trained for in excellence employees, anniversary determination, our at XXth thrive our perform strategy. our are our spirit to the best, ensuring their environments well of have we're years, empowers the enhancing

operations at led These teams We double-digit our results. and dedicated working to year. locations have with team experts efforts refine processes a and these to to operational operating throughout productivity of more gains to have closely initiative frontline locations key in this locations, improving key plan extend expanding capacity We the execution. improve

Our yielding investments fueling is in and tangible benefits. technology productivity

We make tools visibility real-time, developing our data-driven decisions. and to network enhance teams that are frontline empower

deployed. are $X recently month. to optimization, save a we've Here around to machine million few us learning and leverages efficiencies tools which drive AI examples the continues of each City

of We next phases locations. are project currently this piloting multiple at X the

the applications visibility dock and planning been for installed on in predict needs Our locations. continue and visibility centers additional in-house hiring into based network, expect locations being come. software enhanced Early and promising. that These delivering management to rolled them We developed enhances software new tools freight where demand. has we tools from years These distribution to our have our for dock are across forecasted out benefits the labor are resource activity. results new

the have Regarding doors, add we customer the Since to in XXX identify added end road including and to operate process we where demand. and doors mature plan roughly year, need facilities. our a network nationwide increase and of capacity place of yellow facility we XXX to the rest X our robust network this meet map, around to we've a XXXX,

Our strategies our capacity. tools and amplifying technology network are design

distribution March, our in additional said, nearby opened future in the we facility This already improvement support center. Judy productivity led to growth. Kansas, will a As Olathe, which new capacity double-digit has in at

our operating to road. customers lowered positioned on is conditions with the continue which has market capacity the repairs in respond This our newest and of us We fleet, one reduced and to as the improve. expenses invest expect reliable

award American would Prestigious and will and honored robust short We were recent the of closing, last sincere team do. like term people in delivering aimed of Judy for week. pipeline Award have all to LTL road long on for customer several now to on map, the the the in recognitions some projects Carrier optimization turn Group in you a Year and for We A to value companies like growth, congratulate both positioning some Express. In at our our I Coyote, back term. to us Security you TQL, external ATA's including all also Excellence from receive thank remarks. I closing it our

Judy McReynolds

At ArcBest, chain moving. Seth. help the we you, keep global supply Thank

Our commitment people, it that is our our is and to investing commitment technology solutions and in our growth. fuels this our unwavering,

our the on appreciate challenges. bring customers complex rewarding them It's from so their most we table, I to the experience of and helping customers we've challenges solve. them feedback depth knowledge Our helped hear when the navigate

areas. external when highlights receive to performance key in recognition, especially We are it honored

pleased as a for of ArcBest companies concludes XXXX. prepared taking That Thank path ArcBest most David long America's was and of our it to responsible turn recognized be to over and to good and by history growth. now intelligent Humphrey. one risks Newsweek you. our on has Statista I'll So in stewardship I remarks,

David Humphrey

for we're ready questions. Okay. some Denis, I think

Operator

[Operator Instructions].

from is the Shanker Ravi Stanley. with Morgan question first of Your line

Ravi Shanker

without be David, than its same but the better for second you. century won't the be our it over first, years. will Thank all best help you the

David Humphrey

Thank you.

Ravi Shanker

versus think perspective, dropping a do how we guys do modeling cycle maybe absolutely, through And at leverage pricing level, an operating the a between the volumes, how to maybe price especially think bottom of high up and of Judy, here? line? balance enter as you kind about you

Judy McReynolds

Head let Christopher He's our I'll strategy. question. Yes. Yield that of answer

Christopher Adkins

Sure.

So and we're the top produce we to is results. way want that -- that and want really between in to act we make We line compensated really, need price balancing this financial a Obviously, volume. sure We good want be both. growth, right growth.

that's something informs pricing personally have that's own we we've to to That's sure pricing maintain time. a and the business that profitably at for at proprietary robust is make on we in model. a that that we level to system level for something that So activity-based something invested us, customer for heavily shipment make individual that us. operating now sure our And and the rely decades costing an many over just we

we that, be So need that model business, we at costing that reviewing for increases we're would us making that for of we're need business, in to is make and terms that leverage just prospective sure that business on, the to business new to existing that expenses to we're securing sustainable that for to bring sure the going operate that the grow. levels able

So both, need for you to we we said, need right results a bounce pricing act but the get and really, like it's growth. of that growth

Ravi Shanker

in come will from volumes margins back, those you transitions stop cycle, down previous you as higher have see cycles? But incremental than

Matt Beasley

on side, on focused talking mean, efficiency of been we businesses, that's a and Seth about, that I lot the productivity side. of increase to the about. on Christopher serve being to the market you're as I majority of the these to growth a would asset able the lot talking is say I the the bottom. And initiatives that Yes. say, a I I mean, ABF certainly, both that of and mean lot Ravi, profitably dropped created has we've all turns, remain revenue that but got light going across see operating would we believe vast the leverage. same

Operator

with is TD Your Cowen. of the next question Jason from line Seidl

Jason Seidl

I the definitely doing you, retirement, of of us truck feel just to guess Thank almost might finally. going well-earned it's X operator. think been you, me. you're decades but same this get helping the without some you David Geez, not to It's and

David Humphrey

either, they one won't Jason. give Yes, me

Jason Seidl

They grandkids. to And us that if sort help side on them. of tonnage Well, come would the you to that out side, And here lap better behind want might would would we things the few when A seasonality? going that like? that X compare what tonnage on disposals? remind freight what's transactional back how you us we on understand the look on, Could got numbers.

Christopher Adkins

Yes. Sure.

Christopher. it's Jason, So

year. So the saw you of to a as last second significant really, change relates half the that pretty tons it

changes to see you're I in first these more going you're So seeing quarter. think the dramatic that

think into changes see results as more we in and of terms see quarter, you're and to in think consistent then trends from I the a quarter you'll This shipment persist. those get quarter, third going there tonnage second I moving basis. forward And

Jason Seidl

how then it And would to out seasonality? that if back you right compare now

Christopher Adkins

Comparing for the first quarter?

Jason Seidl

Yes.

Christopher Adkins

similar think to business. seasonality our core first I So first operated fourth is from to quarter from

Operator

the from Alliger Jordan question line Our of with Goldman next is Sachs.

Jordan Alliger

long David, And your go congrats upcoming back on pretty We a retirement. way.

there. you're it's getting great So great,

David Humphrey

[Indiscernible].

Jordan Alliger

maybe a weight even expect of know I economy a also is then a that's transactional about start at. my business overall? historically, So the we for per indicative we on transactional of can a thinking a question what shipment little in per metric to shipment. I normalize look the a get versus this If LTL half, And start to been to to core more is more maybe keeled back sense follow-up look way key guess bit is and versus bit mean, to little a perhaps weight there take proportion how well doing? core your I is

Matt Beasley

Jordan. Thanks, Yes.

this So Matt. is

could shipment, from that as the X be month, an additional then as tailwind. truckload the strengthening has last core comes I the say think into just signs move see we we've There May front been into looking continued then opportunity and certainly as And and tailwind. market in, some say into year. about our as we well, that be the back manufacturing that in would a economy really I improving one a move LTL -- through I'd quarter could that truckload so set we both in improve. that will throughout some say we the tailwind seasonal we expect an trends continues So and we movement -- And in at be to weight of could with would us. see as the as per business. created different additional that which turn think aspects June, seen from we've that to have initial of just that just from to

Operator

Hoexter line of is America. question the with Ken next of from Your Bank

Ken Hoexter

teammate. question... and over it's And It's Dave, I a working years luck joy guess you you, great my a retirement. been XX Judy, with working these into great obviously, with good truly

David Humphrey

Thank you.

Ken Hoexter

and You got tons at to deserved. we're talk and economic tons versus per here backdrop yet maybe on day look comp, like a data little March per April April downside of the if it per on in an Dave. and of I what on day Definitely core. yet day. well the bit seems decelerating the kind accelerating it's decelerating terms seeing about we're shipments The even Maybe last easier year,

Matt Beasley

Yes.

a Ken, next we've deceleration trends I brought been see their new bit in the mix little customers at So March. say done on what of it's Matt what particularly and basis, have looking and just months, April, versus did the some past on of that dives some for the our there. into our core have customers But are couple customer-by-customer we deep expectations added over been to again. we've a really again, a

move load look to acceleration to on forward core And well business to in efficiency metrics, as April, on the other continued into productivity in expect say, through we continue the June, and we our so I into significant May our as, would see and side those at increase I improve continue metrics. I would to those as if metrics, we look that some front quarter. our expect say, on just do we the mean we improve as quarter operational efficiency

Ken Hoexter

commentary, you the Or to guess a strengthening business I'm but it the a just is mix is by versus backdrop, transaction little in deteriorate. understand issue? up? economy getting a core I the I want confused just

Matt Beasley

if core numbers comparisons. is a looking guess I very absolute business basis, you're the we place, guess, that but increasing the at in on expect and decrease at year-over-year was first you're what more move seeing saying bit part if we least were April, I that to of move an it continue moved a I the and continues be around through there of as a was business to of as -- quarter. we strong that an to particularly looking be core continues turn through to little into we level

your point. comparison So it really depends on

Ken Hoexter

And sorry. follow-up Got just ahead, then it. Go is... my

Judy McReynolds

just couple growth, mean, out I I was is add mean, I things. a illustrates feel core I helpful. Ken, to of But think put look consistency which like this. on the -- Well, presentation relative I the had when we've mean, we I going you shipment that there

important think to with really business that that opportunities, the I of regular our something I we're but and with. labor of allows good things in pipeline is it itself think one important have quarter some got predictable be leads is We've visibility on customers. that being last some takeaway enhances Also has given opportunities is the opportunities here.And about that really a And also the that we given have got one or to excuse also it that, done area, an sales to LTL in we takeaway the doing Matt that, and I good really customers, productive, and services planning, team better portion, referencing ability think our customers. our third it's job planning, really which our managed said since service, better we solid we've this year. of with about more thinking or that's into that a the just and lot our Q&A truckload focused of good when being but me, we that haven't

forward as move looking strategy we've those prepared the different So been -- gains just of that will in to we many I further And enhance many about and ahead. deploying. Seth think said things efficiency his comments that we're

Ken Hoexter

like investments want cut that why that They're investment. it going tech OpEx, upset, Judy, spending your one I'll is ongoing. for why you term, going get long not quick big he's of then I just part the improvement sneak innovative tech hope going to of regular is a their of consistent and I spends CapEx, know and to to write-off me kind keep David a part consistent cost. if off. they're in. your on. not A take understand and so But of regular annual is lot

Judy McReynolds

are main pilot We and with And there's cases of one we different because the in cycle is how are that stage. working lot is either -- cost that Well, stream there reason a we go process necessarily through. long through in that to a that the any because revenue each regularity those. is isn't working customers of are one, sales use really we're with deployed the that of for it in the being terms or

under those And when regular be and having operations forward do. that's and the as that drawing that kind just goes contract or than we're is distinction of the that costs even them pilots case, we And because more and to move into review active the look so revenue that But we'll there with well -- difference of and as XX-plus the nature. scoping. the got the we pilot we've

to the as Autonomy it's speak, innovations and Fortune we'll Fortune on of Box system, shift our earnings. we're and over into so with. to we're working that's operational, it so not regular and XXX those XX freight being when yet have think, a that -- and companies an it But point press regular you've I it. that And some are the, exciting of real Smart seen the movement as exciting well

Operator

with Your Daniel next the line of Imbro question Stephens. from is

Daniel Imbro

on EPS Maybe retirement congrats side... the starting David, on the Yes. [indiscernible].

David Humphrey

Thanks Imbro.

Daniel Imbro

sequential You to last the XXX move mentioned million to XXX and in few release the years, comments points. the in

includes COVID though I pretty years. think some great that weird,

think between this sequential you basis takes I here beta. if and and normal guess pre-COVID that year XXX use pre-COVID puts think are points. what time about movement the guys was a the it as closer that I as OR maybe we to

Matt Beasley

Daniel, Matt. Good it's question. Yes,

a you'd context. historical bit think little about have think I to the

some And certainly those ratio back so if a first it off you second look higher was higher I historical you think quarter, quarter the into the periods where move of from go operating the saw level. at and

of would saw X the being if look we X this so that's year. over the years, an that in the -- at say And that's context of or but I ratio in last operating ratio operating that more quarter first you the

And more we so recent that context. provided historical that's why

Daniel Imbro

asset on That's on I line actually just profit helpful. Obviously, a in March. one. that the Okay. I you then on non-GAAP the but cycle, had bouncing mentioned that bottom a think follow And of challenge side, to slight up is the

Just curious how think profitability more outlook do can about profit cost cycle side? Is that standpoint we a the that before operational starts? from improve you or the on standpoint to there

Steven Leonard

area Daniel, we improvements. where continue this make an That's Steven. is to

at If in per a first road you And items, items. look saw technology basis. we employee quarter, a other shipments day process we per significant improvement productivity map on have

in to that the a also we but productivity. of improvement top have priority look the is And to to growth continue we'll with it to us, along opportunity opportunity continue lot So to grow. that a things, That's there. segment make obviously, -- fixes has to be top improve some priority for

Daniel Imbro

even up to opportunity what to way the or help size the Any [indiscernible]. is let

Steven Leonard

I'm repeat... sorry, can you

Judy McReynolds

it. Repeat Yes.

Daniel Imbro

kind Just on self-help from of kind or optimized the can a more the maybe that or cycle take it is control the that any business before on helps cycle make what turns, to the profitability what's cost left of before out opportunity you improves? way standpoint see either you

Steven Leonard

I think more improvement. Yes. number I would to as mean specific don't of it a I provide. incremental have

per by we it had in employee shipments when If did you at the first in per a day. look measure quarter, improvement XX% productivity you what we

incremental focus, It's strides to as continue continued a good we'll of it made of improve, improvement. area to but look we've So there. and think more I will

Operator

line is the question from with Your Brian of Ossenbeck next JPMorgan.

Brian Ossenbeck

a shorter with it to folks. most really appreciate in good you over even But been than work has I David great of everything. period luck and time

David Humphrey

[Indiscernible].

Brian Ossenbeck

about that points off Like like basis for guide? can is here, Just that and maybe clarification, talking to is maybe the put at benchmarks of Or context more of the with of well little as wanted a these trying third start should also we're XXX look of actual terms it maybe seasonality sort here. a we to see the just then start off goes. the like you're XXX what you out to give where quick some kind Matt, benchmark how normal that and about figure we'll in quarter as and to

Matt Beasley

Yes.

And that mean, maybe just I ago. relevant more it's more bit some historical years that's saw historical X say little context. I I than It's or probably the changes context. historical more said, So would like a we of

customer And dive wouldn't we've guide. as deep said, it so into at I I like a a specific done trends. and our mix our look But revenue

good we acceleration feel that move quarter. about see through as we the so the we to And expect

We continue some operational also, efforts like ABF to talked productivity advance on Seth significant and the side. efficiency about,

Some City, like City opening happened facility that Kansas towards of which end improvement the in Kansas area, of the seen we've productivity significant quarter. the the new on in some of the those, the

quarter So particularly look full move I year forward that the as through the quarter. last the just little expect we a from third to got events think with benefit there. you quarter the to to we of yellow have see mean impact move the the bit year. a related mean you've transpired, I as over about you as some second

both we quarter, acceleration we're historical on expect the more and details on context business as talked third some and to and And on I seeing. productivity both the efficiency areas level I that closer what we just about, on still core level. of think provide the the get we'll those

Brian Ossenbeck

have might Or core a is be starting all a out the like for lap good different enough a starting historical comp on the the get at sounds transactional to going point? these pieces moving it it and similar because you business little quarter? point third that But context to the Okay.

Matt Beasley

that given quarter of going was say the just I just bit just last guess on year a third little of everything mean then. outlier an market that I'd the in was I

so And the point year. about quarter saw XXX we basis a the improvement quarter of to last third from second

a there. quarter went had well But capacity moving coming of last the we've third efficiency Now the were measures benefit through market operational on We of continued the year. progress lot the the the effect into of of as saw we and impacts side. out as those

Brian Ossenbeck

follow-up. real Okay. quick One just

as additions. headline know maybe on least of some market with so but sense but bring and level least capacity Is through of a still in there to fits this the fill down maybe to I current capacity to you bit the numbers tonnage that much -- not Does about ABF. gap the this year. can the X going up, have at rest capacity? you walk make on like you of plan for how and the hiccup, got If ramp-up me coming wait a that help sort can at of it you coming from be think yellow, to

Seth Runser

Yes, growth in really this to longer-term Seth. that for Brian, past. We trying ourselves position we've are is that our talked about

real we to improvements our As I remarks, with efficiency we have estate where evaluate continue or we prepared mature my a and nationwide network, growth mentioned in see plan. opportunities

opens what on doors, So we've how the Springs double-digit added I gains. and the results. facility X. saw We'll that mean of a we late great productivity already type June in about example same exercise do talked really we

our of what the we're comments. portfolio, because So strong, opening those examples our greatest opportunities talked is our at like estate some evaluate real we pipeline really doing. see we are looking about We demand in where just

So we're have The capacity. we we on yellow feel like good facility Those X enough don't at, position the from to coming we'll are really investments going moves be from facilities. there. currently with our be in where where

to that's also productivity improvement another us view going be I and in So growth. future for position

So...

Judy McReynolds

than and we're yes. efficiency more one of benefit there I mean, doing. I but is the to purposeful it. What it's just pot. growth plan better about there's what like gains serving oriented, also nature our It's And

Operator

is Mohr Mok line Ben Bank. the Deutsche of next with from Your question

Benjamin Mohr Mok

and XQ and core to revenue hundred we more in growth tonnage can better of and at into weight a shipments your more Dave, so, transactional per as continue margins. service growth increases your increases an your need business your XQ, and a just productivity decrease rest drive runway of business. result The get in gains. runway for you improvement into sense to yield that. of and in quality I the to of that and could your trying and XQ deeper your growth business in your for and more on if improvement and in training recent tonnage direct to initiative little LTL your your service initiatives? related in to acceleration in also May transactional improve I'm your the of and of your total XQ improvements service Is sort to look your how core shipments LTL XQ retirement. for June And business congratulations yield a trends into expect declined price due wanted leading shipments daily tonnage the XX-month price from and service

Christopher Adkins

Christopher. This is

yield I'll So perspective. a comment from

think I will service have commentary the some Seth side. from

room change that we interacting business about business about on mix business core abnormal from action our our say transactional. our talked that seeing we're their core that on about, business growing, TMS year-over-year the that you're prices for really, digitally with really by just us a our change, be best more on platform. as transactional via when customers making we and are less is taking is business, raising that would So like pricing I And website the or some

really in they're really and offering makes prices shipment network. fills sense in So at level excess where and it market-based executing areas our we're capacity a

So regular business. and decision. day to at is And we ongoing really day business level shipment our more core that a managing

it as on density As Judy be productive freight to mentioned more earlier, have deliveries. us and we for pickups tends better

historical basis may comments of hundred those some comps Seth And to beyond, see revenue So And service normal levels seeing based levels. on weight. and into more going on from you're terms July a April as per the we're move-forward on year-over-year on get more a back side. in have June, you May, down then to come to similar what probably

Seth Runser

to were respond environment an needs Yes. company. able I say logistics to in our integrated would any customer we as that

Judy stated, team So first. better. service we labor I and that improving see efficiency, excellence. that to the mentioned had well. commitment we quarter think continue we've service improve fourth business experts saw for invested the volumes prepared also service, they as improvements And but my in they business everywhere that as we quality, consistent well in allow a We've remarks, improve, mentioned like we plan going as in go, as always to our is us to not only are the Christopher really core of to book

to stay of better a on So get customers. in of year cycle, at and our with Award carrier to only have awarded And nice the the ATA consistency that to Excellence service Security some lot planning, it's different which labor that improves of being also XX-time the then improvement. just we're multiple and able winner these recognitions companies external

So continue we value that we to we'll see known what we're improve think really as our market. for growth, customers, our to the that's and in

Benjamin Mohr Mok

XXX of that softens. as can maybe worse, better a is And a I let's guide as or just bps to expansion. only question 'XX of improvement go if of improvement. XXX if Great. sequential the the that a maybe as that volume you XXX And or to still flat discuss inflection points, improvement last of average, on improvement, more bps into pre-COVID the based includes is high challenged which OR of freight guide follow-up, freight can Appreciate environment? possibility say, bps there's of average back your bps XXX a if XX maybe demand XXX that. difficult XQ on The X Is very very saw XQ the basis years based

Seth Runser

I maybe highlight X think I look, if to historical years there, go But if absolute would context. and the of higher ratio achieving level you just again, side levels recent quarter so than was were just EBS the we're Yes, you're that XX years. the last in providing we've we talking back first few the achieved on in operating the that ago, some

the might terms more and provide was to history better we that felt so why in of is moves sequential context. impacted historically And recent the historical that seen you have like that

Operator

is Tom with Wadewitz from the of line question next UBS. Our

Thomas Wadewitz

And add you. David, to my to also I want congratulations

doing for time been retirement. the a a great You've wish and job in best long you

David Humphrey

Thanks a lot, Tom.

Thomas Wadewitz

Let's see.

imply they absolute normal versus improvement what of know we of what talking in terms we April. X expect terms flat see right? start would think on on questions, trying tons numbers to about might about look just May like I of talking then In just guess before, the -- figure that sequential. day out you've I some like maybe when but question also, terms I of with May in in think terms seasonality in those just I are maybe comments a absolute kind Because June should of that I to some Or of your and were bit. were June, it see were And and April? you a think year-over-year If the seen versus can normal seasonality? would you I Is absolute in think seasonality shipment, per per revenue improvement. you

Christopher Adkins

Tom, this is Christopher.

basis, revenue tonnage right. would not would you're that. demand uptick business think day we in per are an speaking, see quarter, I there an expect We picks both second customers up. From did their absolute a as from historically be shipping as more perspective versus and a perspective

freight I a recession in about being last many that just months. to that think few last discussed for year we've due a we've the just ongoing times been talking

sequential that from is year. different you're that that, as to uptick seasonal from our describing, would see be first would a expectation So we second, last

Thomas Wadewitz

Okay.

and you seasonal that so see April? versus uptick would And June May

Christopher Adkins

yes. speaking, Typically

Thomas Wadewitz

year you this thinking be case you're And the expect to Okay. that well? as

Christopher Adkins

just still to historically Yes. of is demand that's saying customers, soft mixed them. true, Customers I our for mean, kind there's talking speaking, a bag. are

pockets speaking, do to customers that You a than have again, just been But of back stronger demand have going others. true. has that historically

Thomas Wadewitz

Yes.

capacity players, pricing you and that stable, just and seasonality maybe with Okay. coming as think kind maybe coming gradually. environment develops? or normal And do you it's environment yellow on do think think other and do discipline? much would rate tough in what in seems think you happens maybe the pricing how for less environment But on -- with then, discipline Judy, some across with competitive like you of pricing increases? Or ask but It is the the to maybe competitive

Judy McReynolds

flow of it's where what because I yes to positioned business. to that a their could Well, in that's logistics are to market we a do brokerage company is a our be at and other ABF or it's we if that where does in if because access sit providers from opportunity capacity customer puts say mean we perhaps with we answer. that in to go how well to interesting price solution where sensitivity and customer different have customers. or more customer value-based to through And a potentially network perhaps ABF. own we our for the us could LTL than is able as service-oriented, a challenges would be have the is more it one It managed in good solution a LTL what that point with we has do position price different us really we

positioned is situations to here. really we've sense. been would way and benefit right so we're what are that's decade that priorities make tell positioning our I any or these you challenges, chain which of what supply it reliability a now, through And efficiency. mean navigate well really does customers and their And cost for

through that best the we solution with whether for as interacting trying and assets. and to or own our opportunities are assets them the options so determine we to we're And have, third-party them, fulfill it's the

the the discussion that question for the that I value on or priorities answer pricing, involved your discussion is customer. think specifically, in more to So

or So can a do a with needs of one and variety or be the operationally. capture a we fulfill regularity to how answers, well value-based can to their but that get we well if we for that do customer customer is can sense going can it be of

Thomas Wadewitz

about mean competitor think characterizing -- I customer you're What behavior? behavior? I

Judy McReynolds

solution Well, behavior I in place mean, customer again, for competitor be answer their in when behavior, instance, our that we if the network. competitor LTL get the a that managed we doing shipment the it's with, embedded we're would

LTL of service, the on say in price providing we're our in work stay their consistent I'll to which be in we land ABF it's market brokerage very what the different are about is understanding and managed is these places for what decades. serve well they network we disciplined. giving a stand a think, to very typically a and we as to and with what that, philosophy that have and well, about are, But I depending or and works We're network, we really through with through we what our more well. level our We needs high we and answers position part customers pricing offer organization. value-based. But So of as what run related us

Operator

Okay.

next the Moore is from Jefferies. of Stephanie line with question Your

Stephanie Benjamin Moore

I know to we guess, saying. everyone is David, echo just all will miss you. I what congratulations. else

So -- but congratulations, very well deserved.

David Humphrey

Stephanie. a lot, Thanks

Stephanie Benjamin Moore

you on provided wanted the going appreciate a today. disservice some -- in performance I prior citing metrics other to question Maybe that of to here. of and back I and the on-time the noted kind deck

think was view service what think I in us abnormal environment provider, XXXX Clearly, if I for general. in an from third-party many movement the look at of it LTL a XXXX. year we showed some

you there just and might you good the be bit that in might if address pauses maybe lower could of are side survey clearly, some a it, little that you when comment the what on So movement, a some in than you bit other been measured little of on areas past that maybe too. had what drove think

just So there helpful. additional be would any maybe color

Dennis Anderson

on the those there work see network, service results the about Seth that you're last in Stephanie, going that a externally gain mean, investment year. it's has that perspective, the especially And hoped we the few would Dennis. quality not movement going improve service kind in it's survey of perspective. in for I asset-based the morning, a result from talking service, But look the that's that just things. last Certainly, was to since talked the network from compliance certainly about year levels. and have on terms from a that significant of third-party going we what's this understand we at into I that's when

the optimization so their going rolled being we visibility we more able in we're enhancements. online, so if beginning instance, I for about our year, communication asset-based customer network, those on for certainly, see with to working free shipments. this what's And on at pickup mean, them projects talked that out customers of

things. of one So those visibility is the

into improve. needed So we customer that go we we and to turn that take what feedback

on to from customers service. been working been we've so And the that hearing improve things we've that

in working of today the on mentioned. you slide some some so just talks we're some we've what in we're we've that there's then our that initiatives well. feedback performance service dec certainly, and improve And received that awards of the been about to that just from And on-time as that a seeing in confident these of

Stephanie Benjamin Moore

that's maybe And No, as then it. just Got helpful. a follow-up.

to I'd when expected thoughts obviously you're think turns. in much we've been love terms very how near eventually get and of cycle your than in freight on environment worse positioned here. term I the a we're freight focused this what's But

expansion You've there, very positions well. a capacity which and lot think I talked you about investments

other a react in your you bit? So equipment, the some freight ability feel of little once to the aspects today labor you're like move maybe that these to -- direction from of terms how in our positioned starts

Seth Runser

Yes. like in. demand Stephanie, in labor our the positioned feel to predictive we we good labor months able we've with flex from those Seth. is of standpoint, analytics we're I a well. now off invested what really up some X even need this we that with invested and We're down those from have visibility and tools based in, tools

is I with rate labor starting with competitive, just better So more lower contract, wage our good feel turnover our and see market standpoint new spot, a in the we from employees. a a

on I turnover. just look As some at stats industry we leading stats, have the industry of

know customers' experienced freight. our So we have people who

from labor So standpoint. feel a good

I said newest on opening invest had the In in comments, Our continued we fleet. to equipment, the of my fleets we've road. one the

as we on. We speak. to That's have more be equipment starting coming delivered

like then of estate, demand there. we units, example. since of we're And productivity pretty seeing get added on in on a or see we balance we So this from year. markets capacity service been executing really OTA strategic see And we've XXXX. improvements real or growth We've plan where on we the move can improvements. that come in long-term we some those through we're older high-cost rid good as We we've also doing if to and been the can stuff feel hold optimize and good

efficiency. well I in some I it our numbers best the X we're in actual down also of think comes efficiency like positioned years our capacity of really, presentation, seeing feel we're to because And saw board. of things So mentioned, the And you about I all investments. just across the when

So for we feel more you the are, pretty capacity more good, the have growth. you efficient

So...

Operator

is question the of Vertical with from next Jeff Partners. line Kauffman Your Research

Jeffrey Kauffman

there to may Calico in and best make I understands David, be... retirement. wishing the sneak all you have sure County would down Amy

David Humphrey

do that. can We

Jeffrey Kauffman

one Well, working I are you of miss the will you. with best.

So congratulations.

David Humphrey

Jeff. Thanks

Jeffrey Kauffman

like cost turn to points. year-on-year it's at side, does up per a it XXX up on the almost tonnage much If basis, that know first of I turn basis, labor versus the and Can cost that's on was increase, labor how look bit to labor like year basis to And XX%. the on only focus you the a to cost as down was it pound I'd I'd X? up costs. in I page contract, On and that in way help a some year it if year almost increase the X%. employment being is. a little it at how the it's of per productivity? us percent X change expense of new But of as I revenue, look understand we inflation person maybe compared then

Seth Runser

This is I'll Yes, that answer Seth. question, Jeff.

in X, in look X% year So had increase in year you XX% HWP cost. then on increase at and contract when our a we about X wages

up wages about HWP about in As and go our we that lap and and then be X.X% X.X%. into will get August at will July,

second every we over first get not moving the normalized that for just So year, get we forward, also to more a to rates, year but lot had year headwind.

things a rail, things Cartage, like like of our PT, like rentals, of productivity that. So we some lot reducing did external resources

with that improvements first from we much the about So with increase the cost the was the out dealt contract, wipe able and were to we we pretty efficiency that quarter $XX that in million saw.

you now we're that. continue optimization and projects quarter, continue to a the pipeline. And to So our What year. first, quarter in going see we saw that lot throughout the third of you'll have do fourth in

route structure like then optimization, like optimize like different feel the software a while out next tools. continue future cost just feel lot doc phases pilot rolling and and things to for going our labor X city in of being We the to right growth. we're now, positioned we in So

Jeffrey Kauffman

labor back And X%, So versus trying XX contract to X.X%. about steps your balance And this I'm on renewal here. mix if transactional contracts is your to rate take not issue be revenue, of to correct? go pretty costs revenue XXX business we consuming basis from idea, a points to of would points should XXX margin meaningful see flow-through LTL basis the the

Judy McReynolds

Yes.

Seth Runser

trends... are say those I same the

Jeffrey Kauffman

put some tough I'm not just on I'm Wonderful. lot great. numbers But of congratulations. see to it's to I a of genius, but math well. here. what's moving parts, the look wish LTL And know a I you so going trying results kind David, there's --

David Humphrey

Jeff. in lot, may minutes, to We've a couple go We a real quick. we'll a Thanks few get try got but more. a couple more over

Operator

question of with Chan Bruce Stifel. line is next Your from the

Andrew Baxter Cox

Bruce. This is Andrew for on

to Congratulations. comments also the echo Dave. We you, want to

So kind I to of just wanted --

David Humphrey

you. Thank

Andrew Baxter Cox

-- no are yes, we problem. --

consumer opinion, In So be has an exited. okay. player and is where to we're environment #X demand manufacturing recovering in and here still least the our stable at seems

year guys what XQ levers wondering you comp to over continued last have the into of the in should do we're with some especially the network. So be to what XQ. disconnect an volume kind drive easier What in and able in decline be volume from

Judy McReynolds

But months I'll the an decline. to I And Well, what over modest the it's feel indicator move when moves, was the typically months mean a see after of we is shot at XX like on that. impact PMI, for that us, which before X manufacturing of X seen it. is I we've time take that that

the mean ourselves of cost LTL So we've that's load other in that, the state full the our impact would an just examples customer's of we've know efficiency. information. what where managed I heavier shipments. is capacity group have that's side. And we to the shifting had we some degree, the consider one think that then I don't but handled benefit of And mode do on excess done for the I that on piece

and shipment So looking I perhaps here factors whenever you're are levels issue are about that forward. thinking per X weight at those think at going it

Matt Beasley

say the that, better the for too, Yes. that is say part -- of Matt. a a focus comparisons, year-over-year profit just big -- this And and a optimization mix outcome. I'd just just our better is of Andrew, on productivity I'd

Operator

follow-up the Seidl from a Jason question with TDCowen. next is Your of

Jason Seidl

to bit business that sort LTL truckload stealing I up wanted little on getting because some follow maybe some freight. of questions a we're and

I seeing they consolidation wondering much some seeing one of Now was in pickup. saying And that LTL TMS to said of a did that how your that I But LTL also, you a competitors back truckload just much the flow that eventual the at sector? to in pricing natural stolen don't your they how yellows the we speak think that away? owners recovery went maybe sort do over business? do will it's then are you think think freight? of to to once you're freight truckload fix if providers do of get is truckload that much. going that is And And marketplace,

Steven Leonard

much, to -- we that but we of and is because difficult shift customers from thing perspective, in of describing. anecdotal to we the One optimize are opportunities truckload. is do that It's how pricing just This seeing are of for created some tell you're I see Steven. in Yes. a the that an lot -- mean,

that different truckload. to find chain and you You model a if customer lanes of will just improvement shift can models supply out efficiency, that an in portion

seen And so play that we've out.

So capacity tightens we some. tells us, tell too, much. know truckload. happening to in that's history as how But It's difficult

that in of The at play, the will with benefit we'll shipments those to yes, allows all us from that sit these customer, us we and is of When to Some it great we're really all play news of things see a way for for say we to LTL, shift us. unique back down that. have out. is positioned

we're like we looking position. the demand, increase a market and else, -- balance like forward to we're And so benefit. and that we'll really better everyone in And we in think

Jason Seidl

So little, it's don't think just but you seen significant. to summarize, you've a

Steven Leonard

that's Yes. I going tell reiterate, much mean but I it. on. how is seen difficult wouldn't just have to say we it's But of again, I'll significant, it

David Humphrey

one more follow-up. off it cut then try and Dennis, We'll that. real we've after in to we'll got get one quick,

Operator

question follow-up America. Bank Hoexter of of Today's line from the Ken with a is final

Ken Hoexter

still on Dave, want Or understand the tonnage, some it's improved. it commentary just want down that clarifications. the some Was to I've the getting core. mix up in. picking to on They been of the is questions core commentary? understand is just April. in just the the is I kind

Matt Beasley

Ken, Yes. it's Matt.

-- X-K, the if provided we the trends core. we So you look April in in provided some commentary on

a And level so up it we in what tonnage And a we we basis, were on shipment April. see X%. for seeing on see up quarter, XX% that

continuing So growth to definitely see there.

Ken Hoexter

that were Yes, just want to wanted to decelerating quarter. mean want clarify And that. kind renewals of give just what to we're does the side? a pricing seeing X.X% there commentary on last Okay. Or environment? then Judy, understand, you on I versus the anything is I seeing we're X.X% up pricing

Judy McReynolds

wouldn't think you say I know renewals representative that a I so. given mean did for figure we to it's just the related a I quarter.

But that And that. customers solid, still comfortable so is and the with mix involved X.X we're that could drive answer. with that's of

Ken Hoexter

on core, well? gave there back quarter, for know but second, as March is to that the just And just year-over-year, sequential commentary April? the anything going the a sequential I to you on a then

Judy McReynolds

seeing up April, were shipments Well, then up in year-over-year then quarter, year a over first in XX% and that's and XX%. you're the -- and the core

consistent, say. it's pretty So I'd

Ken Hoexter

Okay.

March from April, core? consistent So to on the

Judy McReynolds

but a looking I number, yes, is. at I'm it Yes. imagine QX

the in up low that in teens. since the low -- last been few teens it's think I in months,

David Humphrey

I'm just -- going concludes a since We're Thanks lot. run close that out. it and appreciate to call. we're I think today, our I Dennis, that Listen, -- everybody thanks little a us But a late. joining running lot.

Operator

This joining. ArcBest does Quarter Thank Conference Call. the Earnings XXXX First for you conclude

now may disconnect. You

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