ArcBest Corporation (NASDAQ:ARCB) Q4 2023 Earnings Call Transcript

Judy McReynolds: Well, it’s really right now as it stands, it’s creating a new revenue opportunity is what we’ll ultimately gain from that. But at this point, we’ve got really more than one thing going on. But in the May, it’s the box system. There’s a box freight system that involves hardware and software and is focused on the rapid pace of loading, unloading and transferring freight takes it from hours to minutes coming out of the trailer. And then we also have the software applications that go along with that. In the next few weeks, we’re going to be introducing more offerings that are coming from that. And the pilot work that we’re doing is with the Fortune 500 companies in automotive, manufacturing and retail. And some pretty exciting pilot opportunities that we’re working toward.

But there’s it’s amazing how we are experiencing the different applications of both the hardware and the software and the combinations with some of this pilot work. And so, what we find is that the shippers or customers that are managing warehouses are trying to do is access labor. They need workflows that are more efficient and they also are interested in safety and reducing claims damage. And those are all the things that are the focus of this technology, both software and hardware that we’re advancing. And so, these are what you’re seeing are the costs associated with that. And obviously, we’re looking forward to the revenue stream that can come from that. And there’s going to be more that unfolds in the next few weeks, but also as we get further into 2024 there.

Scott Group: But I guess as the revenue picks up, do we need to start expensing some of this stuff or does, I mean, I’m trying to figure out if there’s any change in accounting coming?

Judy McReynolds: Yes. I mean, I think once operationalized, yes, Scott, you would. I think the reason that we’re handling it the way that we are right now is that this is pilot work that we’re doing or advanced work that we’re doing to get into the pilots. But it doesn’t, I totally agree with you, once it becomes operationalized so to speak then it would be.

David Humphrey: Okay. Well, I think that concludes our call. We appreciate you joining me this morning and appreciate your interest in ArcBest. And so that concludes our call. Thank you very much.

Operator: Thank you, everyone. You may now disconnect.