ArcBest : Announces Second Quarter 2016 Results

FOR IMMEDIATE RELEASE

Investor Relations Contact: David Humphrey Media Contact: Kathy Fieweger

Title: Vice President - Investor Relations Phone: 479-719-4358

Phone: 479-785-6200 Email: kfieweger@arcb.com Email: dhumphrey@arcb.com

ArcBest Corporation® Announces Second Quarter 2016 Results

• Second quarter 2016 revenue of $676.6 million and net income of $10.2 million, or $0.39 per diluted share.

• Second quarter ABF Freight® operating results were impacted by lower daily revenue combined with costs associated with the handling of smaller average sized shipments.

• ArcBest's asset-light logistics revenue equaled 30 percent of total revenue.

  FORT SMITH Arkansas, July 29, 2016 - ArcBest Corporation® (Nasdaq: ARCB) today reported second quarter 2016 net income of $10.2 million, or $0.39 per diluted share, compared to second quarter 2015 net income of

  $20.0 million, or $0.74 per diluted share. The inconsistent economic operating environment combined with a surplus of transportation capacity continues to impact available business levels and operating margins at ABF Freight and at each of ArcBest's asset-light logistics companies. In the midst of this challenging period, ArcBest continues to successfully build on the strategic opportunities it has to gain new business, strengthen shipper relationships and offer additional services to existing customers. The ArcBest companies are focused on delivering superior service levels while working together to offer comprehensive logistics solutions that meet customer needs at a fair price.

  Excluding certain items in both periods, ArcBest's non-GAAP net income was $10.0 million, or $0.38 per diluted share, in second quarter 2016 compared to earnings of $20.2 million, or $0.75 per diluted share, last year.

  "Despite the current environment, we have a tremendous market opportunity within a customer base that values our differentiated customer experience," said ArcBest Chairman, President and CEO Judy R. McReynolds. "The ArcBest companies continue to provide more logistics service options to our customers, who in turn value the trusted advice and deep industry knowledge we bring to help solve their logistics challenges."

  Freight Transportation (ABF Freight)

  Results of Operations Second Quarter 2016

  • Revenue of $486.7 million compared to $504.4 million in second quarter 2015, a per-day decrease of 4.3 percent. Year-over-year reductions in fuel surcharge associated with lower diesel fuel prices contributed to ABF Freight's lower revenue compared to last year.

  • Tonnage per day decrease of 4.0 percent compared to second quarter 2015.

  • Shipments per day decrease of 0.4 percent compared to second quarter 2015.

  • Total billed revenue per hundredweight increased slightly, by 0.1 percent, compared to the prior year reflecting reduced fuel surcharges. Excluding fuel surcharge, the percentage increase on ABF Freight's traditional LTL freight was in the low-single digits.

  • Operating income of $17.4 million and an operating ratio of 96.4 percent compared to $28.1 million and an operating ratio of 94.4 percent in second quarter 2015. Excluding adjustments for nonunion pension settlement charges, operating income of $17.8 million and an operating ratio of 96.3 percent.

    Factors impacting ABF Freight's business levels and operating results are consistent with those seen earlier in the year. ABF Freight's decreasing average weight per shipment has been driven by market factors that include abundant customer inventory levels combined with excess industry capacity available to move customers' larger- sized shipments. Along with the effects of lower fuel surcharges, these factors have contributed to reduced second quarter revenue compared to last year. Though the current LTL pricing environment is competitive, it remains rational. Despite the impact of lower fuel surcharges, ABF Freight achieved reasonable increases on shipper pricing agreements and an average 2.9 percent increase on customer contract renewals during the quarter.

    The continued strength in shipments relative to tonnage levels resulted in dock and street labor costs disproportionate to the revenue associated with reduced tonnage levels. ABF Freight's traditional focus on customer service, even during periods of slower demand, is also putting some pressure on productivity metrics and operating margins. The consistent replacement of road and city tractors with newer units is yielding the expected positive cost benefits in the areas of equipment repair and maintenance, fuel economy and equipment rentals.

    Asset-Light Logistics

    Results of Operations Second Quarter 2016

    • Revenue of $205.2 million compared to $204.9 million in second quarter 2015.

    • Asset-light revenue equaled 30 percent of total consolidated revenue, compared to 29 percent during the same period last year.

Combined second quarter revenue for ArcBest's asset-light logistics business increased slightly compared to last year due to the effects of revenue growth at ABF Logistics, primarily related to its December 2015 acquisition of Bear Transportation, offset by market-driven revenue declines at ArcBest's remaining asset-light logistics companies.

At ABF Logistics, revenue and gross margin per shipment decreased due to the impact of lower fuel prices and lower market rates resulting from excess truckload capacity in the spot market. Despite strong shipment growth at its legacy locations, driven by continued expansion of its customer base and collaboration among the ArcBest companies, legacy brokerage revenue was only slightly positive due to the lower revenue per shipment. Systems integration, training and alignment of positions at the newly acquired Bear locations were substantially completed during second quarter 2016 but negatively impacted employee productivity, and thus operating results. As efficiencies improve, these new locations are expected to contribute positively to earnings by the end of 2016.

Second quarter revenue at each of ArcBest's other asset-light logistics companies was below the previous year due to lower market demand, an abundance of available transportation capacity and changes in customer mix. Reduced demand for the premium and expedited logistics services offered by Panther, combined with customer needs for smaller shipments moving shorter distances, has contributed to lower revenue levels and reduced operating margins. The slight decline in FleetNet's revenue was due to decreases in event activity in both emergency roadside services and fleet maintenance and reduced business levels from transportation-related commercial customers. Despite continued success in adding business with its consumer and corporate customers, ABF Moving's total second quarter revenue decreased because of the decline in government shipments handled.

"It is important to note that even during the current economic environment we continue to receive very positive feedback from many customers. They tell us that our expanded offerings are exactly in line with their evolving requirements for end-to-end shipping solutions and, increasingly, a single point of contact," said McReynolds.

ArcBest Corporation will host a conference call with company executives to discuss the 2016 second quarter results. The call will be today, Friday, July 29, at 9:30 a.m. ET (8:30 a.m. CT). Interested parties are invited to listen by calling (888) 612-1051. Following the call, a recorded playback will be available through the end of the day on September 15, 2016. To listen to the playback, dial (800) 633-8284 or (402) 977-9140 (for international callers). The conference call ID for the playback is 21813608. The conference call and playback can also be accessed, through September 15, 2016, on ArcBest's website at arcb.com.

ArcBest Corporation® (Nasdaq: ARCB) solves complex logistics and transportation challenges. Our companies and brands - ABF Freight®, ABF Logistics®, Panther Premium Logistics®, FleetNet America®, U-Pack® and ArcBest Technologies - apply the skill and the will with every shipment and supply chain solution, household move or vehicle repair. ArcBest finds a way.

For more information, visit arcb.com, abf.com, pantherpremium.com, fleetnetamerica.com and upack.com. ArcBest Corporation®. The Skill & The Will®.

Certain statements and information in this press release concerning results for the three months ended June 30, 2016 may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Terms such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "foresee," "intend," "may," "plan," "predict," "project," "scheduled," "should," "would" and similar expressions and the negatives of such terms are intended to identify forward-looking statements. These forward-looking statements are based on management's beliefs, assumptions, and expectations based on currently available information, are not guarantees of future performance, and involve certain risks and uncertainties (some of which are beyond our control). Although we believe that the expectations reflected in these forward-looking statements are reasonable as and when made, we cannot provide assurance that our expectations will prove to be correct. Actual outcomes and results could materially differ from what is expressed, implied, or forecasted in these statements due to a number of factors, including, but not limited to: a failure of our information systems, including disruptions or failures of services essential to our operations or upon which our information technology platforms rely, data breach, and/or cybersecurity incidents; union and nonunion employee wages and benefits, including changes in required contributions to multiemployer plans; competitive initiatives and pricing pressures; governmental regulations; environmental laws and regulations, including emissions-control regulations; the cost, integration, and performance of any future acquisitions; relationships with employees, including unions, and our ability to attract and retain employees and/or independent owner operators; unfavorable terms of, or the inability to reach agreement on, future collective bargaining agreements or a workforce stoppage by our employees covered under ABF Freight's collective bargaining agreement; general economic conditions and related shifts in market demand that impact the performance and needs of industries we serve and/or limit our customers' access to adequate financial resources; potential impairment of goodwill and intangible assets; availability and cost of reliable third- party services; litigation or claims asserted against us; self-insurance claims and insurance premium costs; availability of fuel, the effect of volatility in fuel prices and the associated changes in fuel surcharges on securing increases in base freight rates, and the inability to collect fuel surcharges; increased prices for and decreased availability of new revenue equipment, decreases in value of used revenue equipment, and higher costs of equipment-related operating expenses such as maintenance and fuel and related taxes; the loss of key employees or the inability to execute succession planning strategies; the impact of our brands and corporate reputation; the cost, timing, and performance of growth initiatives; default on covenants of financing arrangements and the availability and terms of future financing arrangements; timing and amount of capital expenditures; seasonal fluctuations and adverse weather conditions; regulatory, economic, and other risks arising from our international business; and other financial, operational, and legal risks and uncertainties detailed from time to time in our Securities and Exchange Commission ("SEC") public filings.

For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

The following tables show financial data and operating statistics on ArcBest Corporation and its subsidiary companies.

($ thousands, except share and per share data)

(1) ArcBest uses the two-class method for calculating earnings per share. This method, as calculated below, requires an allocation of dividends paid and a portion of undistributed net income (but not losses) to unvested restricted stock for calculating per share amounts.