ArcBest’s third quarter revenue rose in 2020, hitting $795 million.
The Fort Smith-based supply chain logistics company saw its third quarter revenue grow by approximately $7.4 million over its third quarter performance in 2019, when the company reported $787.6 million in revenue.
Revenue was not the only area ArcBest saw growth in for 2020. The company’s third quarter operating income increased from $31.2 million in 2019 to $39.8 million in 2020. It also increased its net income to $29.4 million in 2020 from $16.3 million in 2019. As a result, ArcBest saw its value increase to $1.11 per diluted share from $0.62 per diluted share in 2019.
“I am incredibly proud of our employees and how they have performed on behalf of customers as we navigate through the pandemic together,” Judy R. McReynolds, chairman, president and CEO of ArcBest, said in a statement. “Throughout the third quarter and into October the ArcBest team, enabled by technology and assured capacity options, is providing much-needed flexibility to customer supply chains while also improving operational efficiency. Our company was built on strong customer relationships and it is our goal to ensure those customers are positioned well to succeed.”
ArcBest also reported its third quarter asset-based revenue, which totaled $561.9 million. This asset-based revenue decreased from the 2019 total of $565.6 million, or a per-day decrease of 1.4 percent.
The company also saw its total shipments per day decrease in the third quarter 2020 compared to the same period in 2019. In 2020, total shipments per day decreased 3 percent from the third quarter of 2-10. The total billed revenue per hundredweight also decreased, falling 1.8 percent, and the LTL-rated freight dropped in the third quarter 2020.
However, ArcBest’s operating income for the third quarter in 2020 was almost $5 million higher than in 2019. Operating income for 2020 3Q was $36.6 million compared to $31.7 million in 2019, and the non-GAAP operating income in 2020 increased to $42.8 million in 2020 from $38.5 million.
The asset-light report, which combines ArcBest and FleetNet segments, showed an increase in year-to-year quarterly revenue. For asset-light, ArcBest increased its revenue for the third quarter to $267.8 million in 2020 from $253.7 million; this marks a per-day increase of 4.7 percent.
Adjusting earnings also increased in 2020. Before interest, taxes and amortization, ArcBest reports earning $8.6 million for the third quarter of 2020 compared to $6.6 million in 2019.
“Tremendous opportunity exists for us to sustain the momentum of the third quarter and continue to profitably grow our company,” McReynolds said. “As an innovative and integrated logistics company, I am excited about what the future holds and am confident in the strength and abilities of our workforce and leadership to seize the growth opportunity ahead of us.”