ArcBest Corporation

Thank you for standing by. My name is Danica and I'll be your conference operator today. At this time, I'd like to welcome everyone to the ARCBEST fourth quarter 23 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. I would now like to turn the call over to 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 fourth quarter and full year 2023 results, and then answer some questions. Joining me today for the prepared remarks are Judy McReynolds, Chairman, President, and CEO of Artbest, and Matt Beasley, Chief Financial Officer. In addition, Seth Runzer, President of ABF Freight, Stephen Leonard, Chief Commercial Officer and President of Asset Light Logistics, Dennis Anderson, Chief Strategy Officer, and Christopher Atkins, Vice President, Yield Strategy and Management, are available to help answer questions. To help you better understand ARCBEST and our 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 ARPBEST'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 measures Discussed in this call are also provided in the additional information section of the presentation slides. As a reminder, there is a conference call 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. I will now turn the call over to Judy.

Thank you, David, and good morning, everyone. 2023 was a special year as we celebrated our company's 100-year anniversary. This extraordinary milestone reflects ArcBest's resilience, innovation, and customer focus, and we recognize this accomplishment with events and programs throughout the year, including supporting our communities with over $1 million of centennial giving. As we looked back on our past, we remain focused on our present and future. Despite a slower freight market, ArcVest delivered solid fourth quarter and full year results, thanks to our diverse portfolio of solutions, our investment in technology and innovation, and our commitment to operational excellence. We continue to serve as trusted advisors to our customers, helping them navigate a complex and evolving logistics landscape with our integrated service offering, and century of experience. Let me share with you some highlights from the year. We achieved annual revenue of $4.4 billion, the second highest in company history. We implemented cost-cutting measures that improved our asset-based operating ratio in the third and fourth quarters, and we believe these measures will benefit us as the market recovers. We participated in 90% more new business LTL bids and increased our wins by more than 150% when compared to 2022. We finalized a five-year labor agreement last July, reflecting our strong employee relationships. We accelerated our existing service center facility plan, increasing our asset-based capacity. We grew our asset-light shipment volume while improving key productivity metrics. we better aligned our business with our growth strategy by selling FleetNet America for $100 million. We launched the Box Freight Movement System, which was recognized by Fast Company and Time as one of the year's best inventions. And we invested in our business while also returning over $100 million to shareholders through dividends and share repurchases. Our employees' hard work and dedication did not go unnoticed. And I'm proud of the more than 40 awards we won in 2023, including the American Trucking Association's Excellence in Cargo Claims and Loss Prevention Award, making AVS the only 10-time winner of that award. Ranking number 20 on Freightways Freight Tech 25. Receiving five Quest for Quality Awards from Logistics Management Readers. earning our third Echovatus bronze medal, placing us in the top 50% of rated companies for sustainability, and being named to Forbes' list of America's best in-state employers for the fourth consecutive year. Furthermore, three of our ABF freight drivers were recently chosen as America's road team captains for 2024 and 2025, a tremendous honor that showcases their excellence, professionalism, and safety record. They join a team of 21 other captains who will represent our industry and travel across the nation to educate and inspire others about the importance of trucking. Finally, 2024 marks the 40th anniversary of our quality process, a program that has shaped ArcVest into the efficient and effective organization it is today. Our customers expect us to deliver a high-quality product, which means excellent service. To celebrate this milestone, we are re-energizing our focus on excellence this year, striving for daily excellence in everything we do, no matter how big or small, as we embark on our journey into our next 100 years. Now I'll turn it over to Matt to take you through the results in greater detail.