ArcBest Corporation

Greetings and welcome to the ARCBEST 2Q21 Earnings Conference Call. During the presentation, all participants will be in the listen-only mode. Afterwards, we will conduct a question-and-answer session. At that time, if you have a question, please press the 1 followed by the 4 on your telephone. If at any time during the conference you need to reach an operator, please press star 0. As a reminder, this conference is being recorded on Monday, August 2, 2021. I would now like to turn the conference over to David Humphrey, Vice President of Investor Relations. Please go ahead, sir.

Welcome to the ARCBEST second quarter 2021 earnings conference call. Our presentation this morning will be done by Judy McReynolds, Chairman, President, and Chief Executive Officer of ARCBEST, and David Cobb, Chief Financial Officer of ARCBEST. We thank you for joining us. In order to help you better understand ARCBEST and its results, some forward-looking statements could be made during this call. As we all know, forward-looking statements, by their very nature, are subject to uncertainties and risk. For a more complete discussion of factors that could affect the company's future results, please refer to the forward-looking statements section of the company's earnings press release and the company's most recent SEC public filings. In order to provide meaningful comparisons, certain information discussed in this conference call includes non-GAAP financial measures as outlined and described in the tables in our earnings press release. We will now begin with Judy.

Thank you, David, and good morning, everyone. As you saw in our release, our second quarter revenue increased 51% over second quarter of 2020 when we were impacted by the economic factors of the COVID-19 pandemic. I'm very pleased to report that we achieved the highest quarterly operating income in ArcBest's history and record quarterly revenue, and we've had our best first half ever in terms of consolidated revenue and operating income. These records reflect our success with customers as a leading logistics company with assured capacity options. So far this year, we are experiencing strong customer demand, resulting in shipment and tonnage growth, and a very positive industry pricing environment. On a non-GAAP basis, our second quarter asset-based operating ratio was in the 80s for the first time in many years, and our asset-like profits grew substantially. As we enter the third quarter, customers continue to experience high levels of supply chain disruption, and we're effectively adapting our approaches to their needs. 2021 has been the year for customer conversations regarding the best holistic solution for their supply chain, and our strategic positioning over the last decade enables us to grow with them as their businesses recover. We have a data-driven approach, and the visibility we have ensures proper alignment of our best resources with customer requirements. We are focused on listening to our customers, which helps us be more agile and responsive and to know when it's necessary to pivot to new solutions. As I mentioned, we anticipate growth in our business. Our opportunity pipeline has grown significantly year over year through the first half of 2021 and accelerated sequentially in the second quarter compared to the first. Customer win rates are reaching all-time highs. In order to address this growth and serve our customers, We are increasing hiring and recruiting efforts, optimizing the ABF network, including line hall, dock, and city operations, taking delivery of new ABF equipment and placing 2022 orders early, expanding ABF facilities through investments and upgrades, increasing recruiting resources and equipment for our expedite and truckload fleets, and investing in various technologies, including those to make it easier to match shipments with available capacity. Speaking of technology, we continuously invest in technology and innovation to improve operations and further enable a best-in-class customer experience. Innovation is more than a mindset for us. It's simply part of everything we do. And now I'll turn it over to David Cobb for his comments.