ArcBest Diversification Goal Growth of the Asset-Light Logistics - - PowerPoint PPT Presentation
Percent of ArcBest Revenue ArcBest Diversification Goal Growth of the Asset-Light Logistics Businesses 50% 50% An Ever-Increasing Percentage of ArcBests Revenue ArcBest Revenue 4Q15 $2,667 $2,613 Asset-Light Logistics $2,300 30%
2009 2010 2011 2012 2013 2014 2015 $1,473
Amounts shown are before other revenues and intercompany eliminations.
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$1,658 $1,908 $2,066 $2,300 $2,613 $2,667
7% 93% 30% 70% 50% 50%
Revenue
($M)
$1,701 $1,762 $1,931 $1,918
$11.9 $55.4 $64.8
CAGR(1) 4%
Non-GAAP Operating Profit(2)
($M)
Revenue
($M)
$2,066 $2,300 $2,613 $2,667
$21.2 $75.8 $81.0
CAGR(1) 9%
Non-GAAP Operating Profit(2)
($M)
(1) CAGR over the 3 year period from 2012 to 2015. (2) Non-GAAP operating profit excludes pension settlement expense, acquisition transaction costs, and FleetNet third-party casualty claim associated with bankrupt customer. See Reconciliations of GAAP to non-GAAP Financial Measures on slide 5. 2
Revenue
($M)
$78 $82 $95 $119
$0.7 $1.9 $3.2 $4.8
CAGR(1) 15% CAGR(1) 90%
Non-GAAP Operating Profit(2)
($M)
Revenue
($M)
$66 $105 $153 $204
$3.0 $3.0 $3.9 $5.9
CAGR(1) 46% CAGR(1) 25%
Non-GAAP Operating Profit(2)
($M)
(1) CAGR over the 3 year period from 2012 to 2015. (2) Non-GAAP operating profit excludes pension settlement expense. See Reconciliations of GAAP to non-GAAP Financial Measures on slide 5. 3
Revenue
($M)
$238 $247 $317 $300
$3.7 $7.0 $15.6 $10.8
CAGR(1) 8% CAGR(1) 43%
Non-GAAP Operating Profit(2)
($M)
Revenue
($M)
$116 $138 $159 $175
$1.9 $3.3 $3.2 $4.0
CAGR(1) 15% CAGR(1) 28%
Non-GAAP Operating Profit(2)
($M)
(1) CAGR over the 3 year period from 2012 to 2015. (2) Non-GAAP operating profit excludes pension settlement expense and FleetNet third-party casualty claim associated with bankrupt customer. See Reconciliations of GAAP to non-GAAP Financial Measures on slide 5. (3) Panther 2012 revenue and non-GAAP operating profit numbers are pro forma assuming the June 15, 2012 acquisition occurred as of January 1, 2012.
(3) (3)
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5 ARCBEST CORPORATION (Unaudited) RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES 2012 2013 2014 2015 ($ millions) ArcBest Corporation - Consolidated Operating Income Amounts on a GAAP basis $ (14.6) $ 19.1 $ 69.2 $ 75.5 Transaction costs, pre-tax (1) 2.2
Third-party casualty expense at FleetNet, pre-tax (2)
Pension settlement expense, pre-tax
6.6 3.2 Non-GAAP amounts $ (12.4) $ 21.2 $ 75.8 $ 81.0 ABF Freight Operating Income Amounts on a GAAP basis $ (19.8) $ 10.0 $ 50.1 $ 62.4 Pension settlement expense, pre-tax
5.3 2.4 Non-GAAP amounts $ (19.8) $ 11.9 $ 55.4 $ 64.8 Panther Operating Income Amounts on a GAAP basis (3) $ 3.7 $ 7.0 $ 15.6 $ 10.8 Pension settlement expense, pre-tax
$ 3.7 $ 7.0 $ 15.6 $ 10.8 ABF Logistics Operating Income Amounts on a GAAP basis $ 3.0 $ 3.0 $ 3.8 $ 5.9 Pension settlement expense, pre-tax
$ 3.0 $ 3.0 $ 3.9 $ 5.9 FleetNet Operating Income Amounts on a GAAP basis $ 1.9 $ 3.3 $ 3.1 $ 3.0 Third-party casualty expense, pre-tax(2)
Pension settlement expense, pre-tax
0.1 Non-GAAP amounts $ 1.9 $ 3.3 $ 3.2 $ 4.0 ABF Moving Operating Income Amounts on a GAAP basis $ 0.7 $ 1.9 $ 3.2 $ 4.8 Pension settlement expense, pre-tax
$ 0.7 $ 1.9 $ 3.2 $ 4.8
(1) Transaction costs associated with the January 1, 2012 acquisition of Panther Expedited Services, Inc. and the December 1, 2015 acquisition of Bear Transportation Group, LLC. (2) Unfavorable third-party casualty claim associated with a bankrupt FleetNet customer. (3) Consistent with the non-GAAP operating profit chart within this presentation, Panther 2012 operating income presented in this reconciliation is the pro forma amount assuming the June 15, 2012 acquisition occurred as of January 1, 2012.
Note: ArcBest Corporation reports its financial results in accordance with generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP performance measures utilized for internal analysis provides analysts, investors, and others the same information that we use internally for purposes of assessing our core operating performance and provides meaningful comparisons between current and prior period results, as well as important information regarding performance trends. Accordingly, using these measures improves comparability in analyzing our performance because it removes the impact of items from operating results that, in management's opinion, do not reflect our core operating performance. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results. These financial measures should not be construed as better measurements than operating income (loss), operating cash flow, net income (loss) or earnings (loss) per share, as defined by GAAP.