ArcBest Corporation

Greetings and welcome to the ARCBEST third quarter 2022 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 one followed by the four on your telephone. If at any time during the conference you need to reach an operator, please press star zero. As a reminder, this conference is being recorded on Tuesday, November 1st, 2022. I would now like to turn the conference over to Mr. David Humphrey, Vice President of Investor Relations. Please go ahead.

Thank you for joining us. On today's call, we'll provide an update on our business, walk you through the details of our recent third quarter 2022 results, and then answer some questions. Joining me today on today's call is Judy McReynolds, Chairman, President, and CEO of ArcBest, David Cobb, Chief Financial Officer of ArcBest, Danny Lowe, ARTBEST President of Asset Light Logistics and Chief Yield Officer, as well as Dennis Anderson, ARTBEST Chief Customer Officer. To help you better understand ARTBEST and its results, some forward-looking statements could be made during this call. Forward-looking statements, by their very nature, are subject to uncertainties and risk. For a more complete discussion of factors that could affect ARTBEST's future results, please refer to the forward-looking statements section of our earnings press release and our most recent SEC public filings. To provide meaningful comparisons, certain information discussed in this call includes non-GAAP financial measures as outlined and described in the tables in our earnings press release. Reconciliations of the GAAP financial measures to the related non-GAAP financial measures discussed in this call are also provided in the additional information section of the presentation slides. As a reminder, there is a conference called Slide Deck that can be found on the ArcBest website, arcb.com, in Exhibit 99.3 of the 8K that was filed earlier this morning, or you can follow along on the webcast. We will now begin with Judy.

Thank you, and good morning, everyone. I want to start by recognizing the hard work and dedication of our leaders and entire team here at ArcBest who work hard every day to to keep the global supply chain moving. As we look back at the third quarter and forward to next year, our three-point growth strategy remains our North Star and our grounding in an uncertain environment. We are confident that ArcBest is well positioned today with a solid foundation to serve customers and create value for shareholders long into the future. Because of our sustained performance, our strong balance sheet, and our disciplined approach to capital allocation, We are positioned better than ever to continue investing back into our people, solutions, and facilities throughout changing market conditions. Our people are at the heart of our business and enable our company to stand apart from others in the industry. People come to ArcBest and stay because of our values-based culture, and we continue to focus our efforts on hiring for the long term. We are known for leading-edge integrated solutions, providing our customers the flexibility they need in their supply chains. We bring our technology and innovative mindset to every partnership, building processes and digital capabilities that make it easier and more efficient to do business. We prioritize investments in these critical parts of our business to stay ahead and succeed now and in the future. As we approach our 100th anniversary, we remain focused on improving our facilities and equipment. We have planned and completed facility improvements and expansions this year to ensure we meet and exceed our customers' expectations while maintaining ArcVest's position as a leading place to work. We recently opened a new facility in Indiana and will add a new warehouse to our network in early 2023 in Salt Lake City, with more to come. We have also invested significantly into our fleet and, as a result, have one of the newest fleets on the road, helping us reduce our emissions and maintenance costs. This year, we are on track to deliver $5 billion in revenue for the first time in our almost 100-year history, a nearly $1 billion increase from last year. And what is most exciting is that our growth opportunity remains tremendous, with our team working toward achieving our long-term financial targets of $7 to $8 billion in revenue by 2025. A big part of this growth is due to our long-standing partnerships with customers and the trust they have in us to find the right solutions to help solve their most complex supply chain challenges. We estimate a cross-selling opportunity of over $5 billion per year with current loyal customers. A perfect example of this came earlier this year with a long-time asset-based LTL customer that was struggling to find capacity. We partnered with them to develop a pool distribution solution, including truckload, that helped them get equipment capacity they needed. As a result, our total business with this customer across all solutions increased six times over 2021, and our asset-based shipment volumes for this customer increased three times. In addition to this growth, we are now exploring an expansion into more of this customer's business units. ArcVest has a rich history of innovation, and we continue to see a tremendous opportunity to serve our employees, shippers, and capacity providers more effectively and efficiently by leveraging technology. In fact, over half of our top-tier technology projects are expected to drive additional business efficiencies. As we navigate a changing industry and economic backdrop, company leaders have access to advanced reporting tools that help them understand performance and cost better than ever before. We are enhancing the utilization of our asset-based network with levers like dynamic pricing, and we're encouraged by the route optimization work that we've mentioned previously with our pilot locations seeing both revenue growth and efficiency gains. And now I'll turn it over to David Cobb, who will take you through our financial results and provide an update on investments to facilitate long-term growth.