ArcBest Corporation (NASDAQ:ARCB) Q4 2022 Earnings Call Transcript

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David Cobb: Yes, I mean, Todd, that real estate plan for ’23 is similar to what we did in 2022. And as we’ve talked about, we haven’t invested in that area in a number of years, and it’s great to have the cash flow and the great balance sheet that we have to position ourselves in a better way. And so, we’re looking to be able to, to have the capacity to expand our shipment count by the mid-single-digits again, and by the end of 2023, with that, from just the capacity that we’re adding from a real estate perspective. And so, like Judy said, we’re positioning ourselves to grow. And with every recessionary freight recession, there is an eventual upturn. And so, we want to be positioned for that, and that’s what our plans call for and we’re taking a measured approach around our CapEx program and replacing equipment in our timely sort of total cost of ownership perspective on our equipment side.

And so, as we said, this is a little heavier year because of some of the spillover from 2022 and some catch-up that we needed to do there. So, hopefully that helps.

Todd Fowler: Yes, no David it makes sense and certainly we appreciate the short-term versus the long-term, you’re just kind of thinking about the startup costs in that piece of it. But that makes sense. Maybe just for a quick follow-up, Judy, I’ll take the bait. I think you teased about it a couple of times with the handling technology that you have and maybe some more details later in the quarter. But what are you willing to share with us now, it sounds like maybe partnering with some customers and having them use that technology, is that something that would be a fee based service or they’d be paying you for that or what are you willing to share with us now with the teaser that you put out here today?

Judy McReynolds: Well, I mean, I think it’s the technology and equipment and process that we talked about before. And not only are we piloting that within the ABF network, but we have opportunities that have presented themselves with customers outside and within the work that they’re doing. And so, we’re excited about it. And obviously, if it’s work that we’re going to be doing for a customer, once we work through the pilot, we would eventually be paid for that. And so, sometimes when you’re in a pilot scenario, you have to have some flexibility over the things that you do with them. But it’s an exciting thing. It will be later in the quarter when we talk more about it. But it is connected to the, again, the technology equipment and process that we’ve referred to before. And so, look forward to sharing more.

Todd Fowler: All right, sounds good. Well, stay tuned. Thanks for the time this morning.

Judy McReynolds: Thank you.

Operator: Our next question comes from Ken Hoexter with Bank of America. Please proceed.

Ken Hoexter: Hey, great. Good morning, Judy, David and team and David again, thanks for all the discussions over the years and congrats.

David Cobb: Yes, Ken.

Ken Hoexter: Yes, you got it, Dave. If you could talk about the shift in pure pricing ex-fuel, I mean I’ve heard the discussion through the Q&A. But maybe I’m just a little confused here. It seems like you talked about low-single-digits in the fourth quarter. Now it’s double-digits in January in the face of what’s still tough pricing comps from early ’22. Am I missing something there or you talking about different categories?

David Cobb: So, when we talk about double — or double-digits that’s really on that core business that we’re talking about. That’s the long-term committed price that we’ve offered to our customers kind of we may have call it published at some point in the past.

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