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Mar 31, 2020
ArcBest Q1 2020 Earnings Report
ArcBest's financial performance for Q1 2020 was announced, revealing mixed results across its segments.
Key Takeaways
ArcBest reported a decrease in revenue to $701.4 million from $711.8 million in Q1 2019. Net income decreased to $1.9 million, or $0.07 per diluted share, compared to $4.9 million, or $0.18 per diluted share in the same period last year. However, on a non-GAAP basis, net income was $9.4 million, or $0.36 per diluted share, compared to $6.7 million, or $0.25 per diluted share in Q1 2019.
ArcBest reported Q1 2020 revenue of $701.4 million and net income of $1.9 million, or $0.07 per diluted share.
On a non-GAAP basis, Q1 2020 net income was $9.4 million, or $0.36 per diluted share.
Asset-Based tonnage growth and cost management resulted in solid profitability.
Asset-Light business was impacted by lower demand and reduced revenue per shipment.
ArcBest
ArcBest
ArcBest Revenue by Segment
Revenue by Segment
Asset-Based Revenue
CapyFin.comAsset-Light Revenue
CapyFin.com Forward Guidance
ArcBest anticipates that the second quarter 2020 expense reductions associated with compensation and other cost reductions implemented in response to the pandemic will be in a range of $15 million to $20 million, provided the measures are maintained throughout second quarter 2020.
Positive Outlook
- The broad array of logistics services that ArcBest offers are critical to our nation’s recovery.
- The knowledge and experience that our employees provide in crafting adaptive supply chain solutions will be an important resource for our customers as the nation begins to return to a level of normalcy.
- We entered this challenging period in a position of financial strength
- The steps we have taken to further enhance our liquidity and reduce our costs will help us navigate through the coming days.
- Our industry is vital in playing a key role to ensure essential goods such as medical supplies and food are available when and where they are needed.
Challenges Ahead
- Significant April 2020 business decline due to COVID-19 resulted in a year-over-year and a sequential consolidated revenue reduction of approximately 20 percent during the month.
- The duration and magnitude of COVID-19’s total impact are not fully understood.
- Operational changes in the ABF Freight network designed to reduce costs have been made including workforce reductions to better align resources with business levels.
- Cost reductions may not directly correspond during dramatic changes in business levels.
- Effects of the coronavirus pandemic began impacting our customers’ businesses in late March
Revenue & Expenses
Visualization of income flow from segment revenue to net income