ArcBest Corp. on Monday reported second-quarter earnings of $61 million, compared with $15.9 million in the same quarter a year ago.
The Fort Smith-based supply chain logistics firm logged its highest revenue and operating income yet during a period of tight capacity and high demand.
Revenue rose 51% to $949 million in the three months that ended June 30 compared with last year as the industry struggled with issues brought on by the novel coronavirus.
Earnings results beat Wall Street expectations.
ArcBest saw growth across the company due in part to strong demand and higher market rates as more household goods were purchased this year than usual. The company said it has been investing in technology and operational improvements, which include additional hiring and environmental, social and governance efforts.
In a morning conference call, Judy McReynolds, ArcBest chairman, president and chief executive officer, said customers are still dealing with supply-chain disruptions entering the third quarter. ArcBest will continue adapting to the customers' needs, she said.
"We are experiencing strong customer demand resulting in shipment and tonnage growth in a very positive industry pricing environment," McReynolds said.
Earnings per share were $2.27 in the second quarter, up from 61 cents a year ago.
That handily beat adjusted estimates of $1.60 per share, according to a consensus of analysts with Zacks Equity Research.
The company's asset-based segment, which consists of ABF Freight, had operating income of $63.9 million compared with $21 million last year. The operating ratio declined to 90.2% from 95.4%. Declining ratios are usually a good sign and indicative of expenses becoming a smaller percentage of revenue. The segment's revenue was $652.8 million, up 42%. Total tonnage per day increased 22.7% and total shipments per day increased 13.5%, with a total weight increase of 15.4%.
The company's asset-light segment, which handles logistics, transportation management and household goods moving services, recorded strong revenue and profit growth, partially offset by investments in technology and personnel. The segment's revenue was $330.3 million, up 67% from the the same quarter last year.
Operating income rose to $16.3 million compared with $2.1 million a year earlier.
FleetNet, which does roadside assistance services, experienced more events than last year, resulting in revenue and profitability growth.
Adjusted earnings before interest, taxes, depreciation and amortization was $19 million compared with $4.9 million a year ago.
McReynolds said she was proud of the work ArcBest leaders and employees have done this year and looked forward to continuing to help customers solve their logistics problems.
ArcBest shares climbed $1.14, or less than 2%, to close Monday at $60.25 on the Nasdaq stock exchange.