ArcBest Corp (NASDAQ:ARCB) Q3 2019 Earnings Conference Call Transcript

Nov 01, 2019 • 09:30 am ET

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ArcBest Corp (NASDAQ:ARCB) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings and welcome to the ArcBest Third Quarter 2019 Earnings Conference Call. During the presentation all participants will be in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded, Friday, November 1, 2019.

I would now like to turn the conference over to David Humphrey, Vice President of Investor Relations. Please go ahead.

Executive
David Humphrey

Welcome to the ArcBest third quarter 2019 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.

Today following Judy and David's opening remarks about the third quarter results, I will conduct a question-and-answer period with them by reading submitted questions that we received last night following our earnings release. We appreciate the questions that we received and we will try to answer as many as we can during the remaining time of this call.

We thank you for joining us today. In order to help you better understand ArcBest and it's 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 more complete discussion of factors that could affect the company's future results, please refer to the forward-looking statement 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.

Executive
Judy R. McReynolds

Thank you, David and good morning everyone. In a challenging freight environment, we were pleased to report another positive quarter, a period that was one of the better third quarters for us in historical terms, although below last year's levels. Uncertainty with regard to trade policy and weaker demand in some areas of the economy and industry impacted us, but we were certainly pleased to see ongoing rational pricing and good response to our full supply chain solutions particularly in managed transportation.

The increase in active accounts turning to us for managed solutions, gives us confidence in our strategy to produce long-term value by building informed, trusted, innovative relationships with shippers and capacity providers and delivering a best-in-class experience efficiently through their desired channels. Although these numbers aren't broken out separately. I can tell you that our managed solutions revenue nearly doubled and shipments per day more than doubled, which is very encouraging. The number of active accounts we serve also more than doubled in the quarter as our capabilities across the supply chain through both Asset-Based and Asset-Light offerings differentiate us from the competition.

Our purposeful transformation as a company has certainly contributed to much of the new business we have added. We hear from customers through internal research and external studies that we are valued for the things that matter most to them. Things like problem resolution, trustworthiness, responsiveness, and ease of doing business. These differentiators