On October 27, 2023, ArcBest Corp (ARCB, Financial), a leader in supply chain logistics, announced its third quarter 2023 financial results. The company reported revenue from continuing operations of $1.1 billion, a decrease from $1.3 billion in the third quarter of 2022. Net income from continuing operations was $34.9 million, or $1.42 per diluted share, compared to $88.6 million, or $3.49 per diluted share, in the prior-year period.
Financial Performance
The company's operating income from continuing operations for the third quarter of 2023 was $45.1 million, compared to $115.3 million in the third quarter of 2022. The results for the third quarter of 2023 were impacted by $30.2 million of noncash lease impairment charges with no comparable charges in the prior-year period.
On a non-GAAP basis, net income from continuing operations was $56.7 million, or $2.31 per diluted share, compared to $96.1 million, or $3.79 per diluted share, in the third quarter of 2022.
Company's Commentary
“At ArcBest, our ability to see the world through customers’ eyes has positioned our company as the partner of choice for integrated logistics solutions for 100 years,” said Judy R. McReynolds, ArcBest chairman, president and CEO. “Our success is underpinned by the ability to efficiently solve logistics challenges and help customers navigate market disruptions, rapidly changing economic conditions, and increased supply chain complexity.”
Financial Tables
The company's consolidated balance sheet as of September 30, 2023, showed total assets of $2.4 billion, with total liabilities and stockholders' equity also standing at $2.4 billion. The company's consolidated statement of operations showed revenues of $1.1 billion for the three months ended September 30, 2023.
In the nine months ended September 30, 2023, the company's consolidated statement of cash flows showed net cash provided by operating activities of $194.8 million, and net cash used in financing activities of $149.6 million.
Share Repurchase and Dividends
During September 2023, ArcBest entered into a 10b5-1 plan allowing for share repurchases during the current closed trading window under ArcBest’s share repurchase program. ArcBest has settled repurchases of 798,818 shares of common stock for an aggregate cost of $76.8 million, year-to-date through Thursday, October 26, 2023. With these purchases, $48.2 million remains available under the current repurchase authorization for future common stock purchases. ArcBest common stock dividends paid this year through September 30, 2023 equaled $8.7 million.
Outlook
Despite the decline in revenue and net income, ArcBest continues to focus on providing integrated logistics solutions to its customers. The company's ability to navigate market disruptions and rapidly changing economic conditions will be crucial in maintaining its position in the logistics industry.
Explore the complete 8-K earnings release (here) from ArcBest Corp for further details.
