Arcbest (ARCB) risk factors, FY2024 10-K

Risks Related to Cybersecurity, Data Privacy, and Information Technology

1. 01We depend on our Information Technology (“IT”) systems as well as software programs and applications provided by third parties, and a systems failure, perceived or actual data privacy breach, or cybersecurity incident could have a material adverse effect on our business, results of operations, and financial condition
2. 02Interruptions or failures in third-party systems, including licensed software, that we utilize to meet certain IT needs, could adversely affect our business

Risks Related to Our Business

1. 03The loss of or reduction in business from one or more large customers, or an overall reduction in our customer base, could have a material adverse effect on our business, results of operations, financial condition, and cash flows
2. 04Our initiatives to grow our business operations or to manage our cost structure to business levels may take longer than anticipated or may not be successful
3. 05to enter or expand our services in markets with established competitors and new competitive challenges, and we may not be able to successfully gain market share
4. 06We may be unsuccessful in realizing all or any part of the anticipated benefits of acquisitions within the expected time period or at all. The cost, integration, and performance of any such acquisition may adversely affect our business, results of operations, financial condition, and cash flows
5. 07Unsolicited takeover proposals, proxy contests and other proposals or actions by activist investors may adversely affect our business and our stock price
6. 08Damage to our corporate reputation may cause our business to suffer
7. 09Our corporate reputation and business depend on a variety of intellectual property rights, and the costs and resources expended to enforce or protect our rights or to defend against infringement claims could adversely impact our business, results of operations, and financial condition
8. 10Ineffective internal controls could negatively impact our business, results of operations, and reputation

Risks Related to Our Industry

1. 11A nationwide or global disruption in the supply chain could increase volatility in freight volumes and materially impact our business
2. 12We operate in a highly competitive and fragmented industry, and our business could suffer if we are unable to adequately address factors that could affect our profitability, growth prospects, and ability to compete in the transportation and logistics market
3. 13Increased prices for, or decreases in the availability of, equipment, including new revenue equipment, as well as higher costs of related operating expenses, could adversely affect our results of operations and cash flows
4. 14Fuel shortages, changes in fuel prices, or the inability to collect fuel surcharges, could have a material adverse effect on our business, results of operations, financial condition, and cash flows

Risks Related to Employees and Benefits

1. 15Difficulty attracting, retaining, and upskilling employees, or ABF Freight’s inability to reach agreement on future collective bargaining agreements, could result in labor inefficiencies, disruptions, stoppages, or delayed growth
2. 16We could be obligated to make additional significant contributions to multiemployer pension plans

Risks Related to Third Parties

1. 17We depend on services provided by third parties and could be adversely impacted by increased costs or disruption of these services, and claims arising from these services
2. 18Our engagement of independent contractor drivers to provide a portion of the capacity for our Asset-Light segment exposes us to different risks than we face with our employee drivers, which could have an adverse effect on our business
3. 19If the independent contractors with which we contract are deemed by regulators or judicial process to be employees, or if we experience operational or regulatory issues related to our use of these contract drivers, our financial condition, results of operations, and cash flows could be adversely affected

Risks Related to Legal and Regulatory Matters

1. 20We are subject to litigation risks, and at times may need to initiate litigation, which could result in significant costs and have other material adverse effects on our business, results of operations, and financial condition
2. 21Our business operations are subject to numerous governmental regulations in the transportation industry, and costs of compliance with, or liability for violations of, existing or future regulations could have a material adverse effect on our financial condition and results of operations
3. 22with whom we contract agree to comply with applicable laws and regulations, we may not be aware of, and may therefore be unable to address or remedy, violations by them
4. 23Our operations are subject to various environmental laws and regulations, the violation of which could result in substantial fines or penalties. The costs of compliance with current and future environmental laws and regulations may be significant and could adversely impact our results of operations

Risks Related to Financial Considerations

1. 24We are subject to interest rate risk and certain covenants under our financing arrangements. A default under these financing arrangements or changes in regulations could impact the availability of funds or our borrowing costs
2. 25Our business is capital intensive. If we are unable to generate sufficient cash from operations, our growth and profitability could be limited due to significant ongoing capital expenditure requirements
3. 26Claims expenses, the cost of maintaining our insurance, or the loss of our ability to self-insure could have a material adverse effect on our results of operations and financial condition
4. 27Future impairment, if any, of our long-lived assets and our goodwill and intangible assets could adversely affect our financial condition and results of operations

Risks Related to Other External Conditions

1. 28The widespread outbreak of an illness or disease or any other public health crisis, as well as regulatory measures implemented in response to such events, could negatively impact the health and safety of our employees and/or adversely affect our business, results of operations, financial condition, and cash flows
2. 29We, or the third parties who provide services for us, may be adversely affected by external events for which our business continuity plans may not adequately prepare us
3. 30We are subject to general economic factors and instability in financial and credit markets that are largely beyond our control
4. 31Our business and results of operations could be impacted by seasonal fluctuations, adverse weather conditions, natural disasters, and climate change