On February 6, 2024, ArcBest Corp (ARCB, Financial) released its 8-K filing, detailing its financial performance for the fourth quarter and full year of 2023. The company, a leader in supply chain logistics, operates in three business segments: Asset-Based, ArcBest, and FleetNet. The Asset-Based segment includes ABF Freight System, Inc. and other subsidiaries, while the ArcBest and FleetNet segments represent its Asset-Light operations.
ArcBest Corp (ARCB, Financial) reported a mixed financial performance amid a challenging market environment. The company's revenue for the fourth quarter of 2023 was $1.1 billion, a decrease from $1.2 billion in the same period of 2022. However, operating income from continuing operations for the quarter increased to $64.3 million from $50.2 million year-over-year (YOY), and net income from continuing operations rose to $48.8 million, or $2.01 per diluted share, compared to $36.5 million, or $1.45 per diluted share, in the prior-year period.
Despite these gains, the full year 2023 revenue from continuing operations totaled $4.4 billion, down from $5.0 billion in 2022. Net income from continuing operations for the year was $142.2 million, or $5.77 per diluted share, a significant decrease from net income of $294.6 million, or $11.55 per diluted share, in 2022.
According to Judy R. McReynolds, ArcBest chairman, president, and CEO, the company's solid financial results in a year marked by market disruptions and increased supply chain complexity are a testament to the critical role of its people and the effectiveness of its customer-led growth strategy.
"2023 was a milestone year for ArcBest as we celebrated our 100-year anniversary and again delivered solid financial results," said McReynolds. "In a year marked by market disruptions and increased supply chain complexity, our people remained a critical driver of our success, helping us achieve the second best revenue performance in ArcBest’s history."
The Asset-Based segment showed resilience in the face of a softer freight environment, with fourth quarter daily revenue only slightly below the prior-year period. This was attributed to effective strategies in helping customers navigate market disruptions and a disciplined pricing approach. The segment's billed revenue per hundredweight increased approximately seven percent over the prior year.
On the other hand, the Asset-Light segment faced challenges with lower revenue per shipment and reduced margins due to changes in business mix and a soft rate environment. Despite a 12.4% growth in total shipments per day, profitability was affected by lower rates and margins for the truckload solution.
In 2023, ArcBest's capital expenditures totaled $245 million, with a significant portion allocated to the Asset-Based operation. The company also returned $103 million to shareholders through share repurchases and dividends. Looking ahead, ArcBest plans to focus on accelerating growth, increasing efficiency, and fostering innovation.
For a more detailed analysis of ArcBest Corp (ARCB, Financial)'s financial performance, including income statements, balance sheets, and cash flow statements, investors and stakeholders are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from ArcBest Corp for further details.
