-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ttz2jf5fXCvmCoYesJqFfRHqpD4tydS21JyM653pVi3WWJUHfGbpWHOhRnRmQuYG txssKAJuzv3x7aqhonQePQ== 0000950134-03-013659.txt : 20031020 0000950134-03-013659.hdr.sgml : 20031020 20031020081758 ACCESSION NUMBER: 0000950134-03-013659 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031020 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031020 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ARKANSAS BEST CORP /DE/ CENTRAL INDEX KEY: 0000894405 STANDARD INDUSTRIAL CLASSIFICATION: TRUCKING (NO LOCAL) [4213] IRS NUMBER: 710673405 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19969 FILM NUMBER: 03947023 BUSINESS ADDRESS: STREET 1: 3801 OLD GREENWOOD RD CITY: FORT SMITH STATE: AR ZIP: 72903 BUSINESS PHONE: 5017856000 MAIL ADDRESS: STREET 1: P O BOX 48 CITY: FORT SMITH STATE: AR ZIP: 72902 8-K 1 d09718e8vk.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549-1004 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): October 20, 2003 (October 20, 2003) ARKANSAS BEST CORPORATION (Exact name of registrant as specified in its charter) Delaware 0-19969 71-0673405 - ---------------- ------------ ------------------- (State or other (Commission (IRS Employer jurisdiction of File Number) Identification No.) incorporation or organization) 3801 OLD GREENWOOD ROAD Fort Smith, Arkansas 72903 (479) 785-6000 - -------------------------------------------------------------------------------- (Address, including zip code, and telephone number, including area code, of the registrant's principal executive offices) ITEM 7. EXHIBITS. 99.1 Press release of Arkansas Best Corporation dated October 20, 2003. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On October 20, 2003, Arkansas Best Corporation ("the Company") issued a press release announcing its third quarter 2003 results. The press release contains a reconciliation of GAAP net income per share to a non-GAAP financial measure of net income per share for the third quarter of 2002. Management believes the non-GAAP net income per share is useful to investors in understanding the Company's results of operations, because it provides a more comparable measure of net income per share to the third quarter of 2003 net income per share. A copy of the press release is attached as an exhibit to this Report on Form 8-K. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ARKANSAS BEST CORPORATION (Registrant) Date: October 20, 2003 /s/ David E. Loeffler ----------------- ----------------------- David E. Loeffler, Vice President - Chief Financial Officer and Treasurer 3 INDEX TO EXHIBITS 99.1 Press release of Arkansas Best Corporation dated October 20, 2003
4 EX-99.1 3 d09718exv99w1.txt PRESS RELEASE EXHIBIT 99.1 FOR IMMEDIATE RELEASE ARKANSAS BEST CORPORATION ANNOUNCES THIRD QUARTER RESULTS; ABF(R)'S THIRD QUARTER OPERATING RATIO IMPROVES TO 91.9% (Fort Smith, Arkansas, October 20, 2003) -- Arkansas Best Corporation (Nasdaq: ABFS) today announced third quarter 2003 net income of $17.0 million, or $0.67 per diluted common share. For the third quarter of 2002, net income was $18.3 million, or $0.73 per diluted common share. Excluding three items of note, third quarter 2002 earnings were $0.54 per diluted common share. The three items of note during the third quarter of 2002 included: an earnings increase of $0.12 per diluted common share related to a favorable settlement with the Internal Revenue Service, an earnings increase of $0.09 per diluted common share associated with the after-tax gains on sales of excess freight facilities at ABF and an earnings decrease of $0.02 per diluted common share relating to increased liability reserves associated with the liquidation of an insurer who provides excess workers' compensation insurance for claims that arose from 1993 through 1999. Arkansas Best's revenue, during the third quarter of 2003, was $402.9 million, an increase of 7.3% over the third quarter of 2002. ABF FREIGHT SYSTEM, INC.(R) ABF Freight System, the company's largest subsidiary, had third quarter 2003 revenue of $360.6 million, a per-day increase of 7.5% compared to third quarter 2002 revenue of $335.5 million. ABF's third quarter 2003 operating ratio was 91.9% versus an operating ratio of 92.9% during the third quarter of 2002. This year's third quarter operating ratio at ABF was the third best for any third quarter in the last twenty-five years. Billed LTL revenue per hundredweight, including fuel surcharge, was $24.39, an increase of 6.5% over last year's third quarter figure of $22.91. Billed LTL revenue per hundredweight, excluding fuel surcharge, was $23.60, an increase of 5.4% over last year's third quarter figure of $22.39. Approximately one-half of the yield increase, excluding fuel surcharge, was a result of changes in the freight profile since the early September 2002 demise of Consolidated Freightways (CF). "We remain encouraged by the positive pricing environment currently experienced by our industry," said Robert A. Young III, Arkansas Best President and Chief Executive Officer. "ABF's increases on contracts and deferred pricing agreements continue to be favorable by historical standards and retention of the July 14 general rate increase has been good." ABF's third quarter LTL tonnage per day increased 0.5% compared to the same period last year. Versus the second quarter of 2003, ABF's third quarter LTL tonnage per day increased 2.8%. "ABF's sequential LTL tonnage change compared to this year's second quarter was in line with expected changes given normal seasonal trends from the second quarter to the third quarter," said Mr. Young. Comparisons of third quarter 2003 LTL tonnage to the same figures in the third quarter of 2002 include additional business in September of both years associated with CF's closing. "Our business does not yet reflect much of a change in the overall economy of our country. I continue to be encouraged about the positive signs and comments from others regarding the improving economic environment. If the economy does improve, this should eventually translate into more business for ABF. Regardless of economic conditions, ABF will continue to emphasize excellent customer service while managing costs to provide superior value to its customers," said Mr. Young. "ABF's third quarter operating ratio of 91.9% compares very favorably to this year's second quarter operating ratio of 95.7%," said Mr. Young. "This was due, primarily, to yield improvements but also reflects some positive operational effects from seasonal increases in tonnage and revenue without the addition of an equivalent amount of costs." "Productivity measures at ABF were slightly below levels for the same period last year. These figures continue to be affected by additional shipment handling related to ABF's concentration on transit time improvements and premium services provided at pickup and delivery," said Mr. Young. "These measures were the same as in the second quarter of this year." RECOGNITION OF EXCELLENCE AT ABF Continuing its long pattern of recognition for superior industry achievement, ABF and its employees were recently recognized with two more prestigious safety awards. In mid-September, the American Trucking Associations (ATA) named ABF as the winner of its 2003 President's Trophy for safety. This is the highest safety award in the motor carrier industry. ABF is the only carrier to have won this award five times. Earlier this month, the ATA also named Jim McFarlin, director of safety and security for ABF, as the 2003 Safety Director of the Year. This award is presented annually to the motor carrier safety executive whose professional qualifications, safety programs and achievements are considered outstanding. Jim also won the Outstanding Service Award for safety in 2000. "Safety is a very high priority at ABF. It is gratifying to have our employees and safety programs continue to be recognized as the very best in the trucking industry," said Mr. Young. ABF'S REDESIGNED WEB SITE In early August, ABF announced the launch of its re-engineered Web site at abf.com which offers a simpler graphical interface, streamlined applications and industry-first advances in automated personalization. This new design allows for the matching of the most relevant online tools and shipment information to the specific site user. CLIPPER For the third quarter of 2003, Clipper had revenues of $34.0 million compared to $32.4 million in the third quarter of 2002, an increase of 4.9%. Clipper's third quarter 2003 operating ratio was 98.2% versus 97.7% during the same period last year. "During the third quarter, the intermodal portion of Clipper's dry freight, full-load business continued to experience significant year-over-year increases in revenues and margins," said Mr. Young. "However, this was offset by revenues and profit declines at Clipper's temperature-controlled division. These declines were caused by continued softness in the demand for produce moving off the West Coast," said Mr. Young. "In addition, competition from truckload operators reduced the margins per load Clipper experienced during this year's third quarter as compared to the same period last year." COMMON STOCK PURCHASE During the third quarter of 2003, Arkansas Best did not make any open market purchases of its common stock. In total, as a part of Arkansas Best's previously announced program to repurchase up to a maximum of $25 million of its common stock, the company has purchased 200,000 shares totaling $4.8 million during 2003. CREDIT AGREEMENT EXTENSION As previously reported, as of Friday, September 26, 2003, Arkansas Best amended and restated its existing $225 million Credit Agreement. The agreement was extended for two years and is now scheduled to mature on May 15, 2007. Arkansas Best continues to have a strong balance sheet and closed the third quarter with total debt below $20 million. CONFERENCE CALL Arkansas Best Corporation will host a conference call with company executives to discuss the 2003 third quarter results. The call will be today, Monday, October 20, at 11:00 a.m. EDT (10:00 a.m. CDT). Interested parties are invited to listen by calling (877) 275-1257. Following the call, a recorded playback will be available through the end of October. To listen to the playback, dial (800) 642-1687. The conference call ID for the playback is 3083550. The conference call and playback can also be accessed, through Friday, October 31, on Arkansas Best's Web site at www.arkbest.com. COMPANY DESCRIPTION Arkansas Best Corporation, headquartered in Fort Smith, Arkansas, is a diversified transportation holding company with two primary operating subsidiaries. ABF Freight System, Inc., in continuous service since 1923, provides national transportation of less-than-truckload ("LTL") general commodities throughout North America. Clipper is an intermodal marketing company that provides domestic freight services utilizing rail and over-the-road transportation. FORWARD-LOOKING STATEMENTS THE FOLLOWING IS A "SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Statements contained in this press release that are not based on historical facts are "forward-looking statements." Terms such as "estimate," "forecast," "expect," "predict," "plan," "anticipate," "believe," "intend," "should," "would," "scheduled," and similar expressions and the negatives of such terms are intended to identify forward-looking statements. Such statements are by their nature subject to uncertainties and risk, including, but not limited to, union relations; availability and cost of capital; shifts in market demand; weather conditions; the performance and needs of industries served by Arkansas Best's subsidiaries; actual future costs of operating expenses such as fuel and related taxes; self-insurance claims and employee wages and benefits; actual costs of continuing investments in technology; the timing and amount of capital expenditures; competitive initiatives and pricing pressures; general economic conditions; and other financial, operational and legal risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission ("SEC") public filings. The following tables show financial data and operating statistics on Arkansas Best Corporation and its subsidiary companies. ARKANSAS BEST CORPORATION CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - --------------------------------------------------------------------------------
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 ---------------------------- ---------------------------- 2003 2002 2003 2002 ------------ ------------ ------------ ------------ ($ THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) OPERATING REVENUES ........................................... $ 402,878 $ 375,397 $ 1,140,330 $ 1,040,732 OPERATING EXPENSES AND COSTS ................................. 374,233 351,450 1,088,291 998,710 ------------ ------------ ------------ ------------ OPERATING INCOME ............................................. 28,645 23,947 52,039 42,022 OTHER INCOME (EXPENSE) Net gains (losses) on sales of property and other ......... (217) 3,721 (211) 3,721 Gain on sale - Wingfoot ................................... -- -- 12,060 -- IRS interest settlement(1) ................................ -- 5,221 -- 5,221 Fair value changes and payments on interest rate swap(2) .. (51) -- (10,333) -- Interest expense .......................................... (434) (2,053) (2,941) (6,108) Other, net ................................................ 613 332 311 (178) ------------ ------------ ------------ ------------ (89) 7,221 (1,114) 2,656 ------------ ------------ ------------ ------------ INCOME BEFORE INCOME TAXES ................................... 28,556 31,168 50,925 44,678 FEDERAL AND STATE INCOME TAXES Current ................................................... 8,034 12,811 11,895 10,828 Deferred .................................................. 3,546 10 7,598 7,560 ------------ ------------ ------------ ------------ 11,580 12,821 19,493 18,388 ------------ ------------ ------------ ------------ INCOME BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE ............................. 16,976 18,347 31,432 26,290 ------------ ------------ ------------ ------------ CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET OF TAX BENEFITS OF $13,580(3) ............... -- -- -- (23,935) ------------ ------------ ------------ ------------ NET INCOME ................................................... $ 16,976 $ 18,347 $ 31,432 $ 2,355 ============ ============ ============ ============ NET INCOME (LOSS) PER COMMON SHARE BASIC: Income before cumulative effect of change in accounting principle ..................................... $ 0.68 $ 0.74 $ 1.26 $ 1.07 Cumulative effect of change in accounting principle, net of tax ............................................... -- -- -- (0.97) ------------ ------------ ------------ ------------ NET INCOME PER SHARE ......................................... $ 0.68 $ 0.74 $ 1.26 $ 0.10 ------------ ------------ ------------ ------------ AVERAGE COMMON SHARES OUTSTANDING (BASIC): ...................................... 24,787,831 24,783,674 24,861,966 24,710,743 ============ ============ ============ ============ DILUTED: Income before cumulative effect of change in accounting principle ..................................... $ 0.67 $ 0.73 $ 1.24 $ 1.04 Cumulative effect of change in accounting principle, net of tax ................................................ -- -- -- (0.95) ------------ ------------ ------------ ------------ NET INCOME PER SHARE ......................................... $ 0.67 $ 0.73 $ 1.24 $ 0.09 ------------ ------------ ------------ ------------ AVERAGE COMMON SHARES OUTSTANDING (DILUTED): .................................... 25,287,271 25,296,694 25,339,629 25,312,753 ============ ============ ============ ============ CASH DIVIDENDS PAID PER COMMON SHARE ......................... $ 0.08 $ -- $ 0.24 $ -- ============ ============ ============ ============
(1) In the third quarter of 2002, the Company recognized other income of $3.1 million, net of taxes, due to a favorable settlement with the Internal Revenue Service. (2) The nine months ended September 30, 2003 includes a pre-tax non-cash charge of $8.9 million, due to no longer forecasting interest payments on $110.0 million of borrowings. (3) In the first quarter of 2002, the Company recognized a non-cash impairment loss of $23.9 million, net of taxes, due to the write-off of Clipper goodwill. ARKANSAS BEST CORPORATION CONSOLIDATED BALANCE SHEETS - --------------------------------------------------------------------------------
SEPTEMBER 30 DECEMBER 31 2003 2002 ------------ ------------ (UNAUDITED) NOTE ($ THOUSANDS) ASSETS CURRENT ASSETS Cash and cash equivalents ............................................ $ 2,988 $ 39,644 Accounts receivable, less allowances (2003 - $3,264; 2002 - $2,942) .. 140,845 130,769 Prepaid expenses ..................................................... 11,454 7,787 Deferred income taxes ................................................ 26,798 26,443 Federal and state income taxes prepaid ............................... 612 -- Other ................................................................ 3,119 3,729 ------------ ------------ TOTAL CURRENT ASSETS .............................................. 185,816 208,372 PROPERTY, PLANT AND EQUIPMENT Land and structures .................................................. 223,135 223,107 Revenue equipment .................................................... 371,319 343,100 Service, office and other equipment .................................. 106,656 91,054 Leasehold improvements ............................................... 12,977 12,983 ------------ ------------ 714,087 670,244 Less allowances for depreciation and amortization .................... 350,475 330,841 ------------ ------------ 363,612 339,403 INVESTMENT IN WINGFOOT .................................................. -- 59,341 PREPAID PENSION COSTS ................................................... 35,669 29,017 OTHER ASSETS ............................................................ 65,597 53,225 ASSETS HELD FOR SALE .................................................... 5,641 3,203 GOODWILL, less accumulated amortization (2003 and 2002 - $32,037) ....... 63,861 63,811 ------------ ------------ $ 720,196 $ 756,372 ============ ============
Note: The balance sheet at December 31, 2002 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. ARKANSAS BEST CORPORATION CONSOLIDATED BALANCE SHEETS - CONTINUED - --------------------------------------------------------------------------------
SEPTEMBER 30 DECEMBER 31 2003 2002 ------------ ------------ (UNAUDITED) NOTE ($ THOUSANDS) LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Bank overdraft and drafts payable ..................................... $ 10,588 $ 7,808 Accounts payable ...................................................... 70,279 58,442 Federal and state income taxes ........................................ -- 5,442 Accrued expenses ...................................................... 130,253 123,294 Current portion of long-term debt ..................................... 340 328 ------------ ------------ TOTAL CURRENT LIABILITIES .......................................... 211,460 195,314 LONG-TERM DEBT, less current portion ..................................... 19,561 112,151 FAIR VALUE OF INTEREST RATE SWAP ......................................... 7,743 9,853 OTHER LIABILITIES ........................................................ 65,391 59,938 DEFERRED INCOME TAXES .................................................... 32,605 23,656 FUTURE MINIMUM RENTAL COMMITMENTS, NET (as of September 30, 2003 - $50,142) ................................... -- -- OTHER COMMITMENTS AND CONTINGENCIES ...................................... -- -- STOCKHOLDERS' EQUITY Common stock, $.01 par value, authorized 70,000,000 shares; issued 2003: 25,071,141; 2002: 24,972,086 shares ................. 251 250 Additional paid-in capital ............................................ 212,839 211,567 Retained earnings ..................................................... 179,929 154,455 Treasury stock, at cost, 2003: 259,782 shares; 2002: 59,782 shares .. (5,807) (955) Accumulated other comprehensive loss .................................. (3,776) (9,857) ------------ ------------ TOTAL STOCKHOLDERS' EQUITY ......................................... 383,436 355,460 ------------ ------------ $ 720,196 $ 756,372 ============ ============
Note: The balance sheet at December 31, 2002 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. ARKANSAS BEST CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - --------------------------------------------------------------------------------
NINE MONTHS ENDED SEPTEMBER 30 2003 2002 ------------ ------------ ($ THOUSANDS) OPERATING ACTIVITIES Net income ................................................... $ 31,432 $ 2,355 Adjustment to reconcile net income to net cash provided by operating activities: Change in accounting principle, net of tax ................ -- 23,935 Depreciation and amortization ............................. 37,483 36,972 Other amortization ........................................ 259 189 Provision for losses on accounts receivable ............... 1,057 1,189 Provision for deferred income taxes ....................... 7,598 7,560 Fair value of interest rate swap .......................... 7,743 -- (Gain) loss on sales of assets and other .................. 183 (3,664) Gain on sale of Wingfoot .................................. (12,060) -- Changes in operating assets and liabilities: Receivables ............................................ (11,106) (26,418) Prepaid expenses ....................................... (3,668) (4,308) Other assets ........................................... (19,280) (2,254) Accounts payable, bank drafts payable, taxes payable, accrued expenses and other liabilities ............... 16,494 22,829 ------------ ------------ NET CASH PROVIDED BY OPERATING ACTIVITIES ....................... 56,135 58,385 ------------ ------------ INVESTING ACTIVITIES Purchases of property, plant and equipment, less capitalized leases and notes payable .................. (63,935) (49,130) Proceeds from asset sales .................................... 2,525 11,641 Proceeds from sale of Wingfoot ............................... 71,309 -- Capitalization of internally developed software and other .... (2,854) (3,528) ------------ ------------ NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES ................ 7,045 (41,017) ------------ ------------ FINANCING ACTIVITIES Borrowings under revolving credit facilities ................. 207,200 61,200 Payments under revolving credit facilities ................... (299,500) (61,200) Payments on long-term debt ................................... (278) (15,142) Retirement of bonds .......................................... -- (4,983) Net increase (decrease) in bank overdraft .................... 2,796 (1,471) Dividends paid on common stock ............................... (5,958) -- Purchase of preferred stock .................................. (4,852) -- Other, net ................................................... 756 1,918 ------------ ------------ NET CASH USED BY FINANCING ACTIVITIES ........................... (99,836) (19,678) ------------ ------------ NET DECREASE IN CASH AND CASH EQUIVALENTS ....................... (36,656) (2,310) Cash and cash equivalents at beginning of period ............. 39,644 14,860 ------------ ------------ CASH AND CASH EQUIVALENTS AT END OF PERIOD ...................... $ 2,988 $ 12,550 ============ ============
ARKANSAS BEST CORPORATION FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS (UNAUDITED) - --------------------------------------------------------------------------------
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2003 2002 2003 2002 --------- --------- ---------- ----------- ($ THOUSANDS) OPERATING REVENUES ABF Freight System, Inc.(1) LTL ........................ $ 331,571 $ 307,553 $ 942,313 $ 855,057 TL ......................... 29,038 27,963 79,666 77,160 --------- --------- ---------- ----------- Total ...................... 360,609 335,516 1,021,979 932,217 --------- --------- ---------- ----------- Clipper ....................... 33,980 32,399 95,446 88,634 Other revenues and eliminations ................ 8,289 7,482 22,905 19,881 --------- --------- ---------- ----------- Total consolidated operating revenues .......... $ 402,878 $ 375,397 $1,140,330 $ 1,040,732 ========= ========= ========== =========== OPERATING EXPENSES AND COSTS ABF FREIGHT SYSTEM, INC. (1) Salaries and wages ......... $ 229,552 63.7% $ 217,987 65.0% $ 671,782 65.7% $ 626,412 67.2% Supplies and expenses ...... 45,097 12.5 40,926 12.2 133,323 13.0 115,131 12.4 Operating taxes and licenses ................. 9,840 2.7 10,070 3.0 29,568 2.9 29,923 3.2 Insurance .................. 6,158 1.7 5,862 1.7 17,801 1.7 17,008 1.8 Communications and utilities ................ 3,516 1.0 3,545 1.1 10,985 1.1 10,283 1.1 Depreciation and amortization ............. 11,116 3.1 10,391 3.1 31,788 3.1 31,137 3.3 Rents and purchased transportation ........... 25,215 7.0 21,836 6.5 69,044 6.8 58,001 6.2 Other ...................... 1,055 0.3 1,217 0.3 2,758 0.3 2,812 0.3 (Gain) on sale of equipment ................ (228) (0.1) (31) -- (28) -- (255) -- --------- -------- --------- -------- ---------- -------- ----------- ----- 331,321 91.9% 311,803 92.9% 967,021 94.6% 890,452 95.5% --------- -------- --------- -------- ---------- -------- ----------- ----- CLIPPER Cost of services ........... 29,292 86.2% 27,634 85.3% 82,480 86.4% 76,121 85.9% Selling, administrative and general .............. 4,064 12.0 4,029 12.4 12,108 12.7 11,645 13.1 Loss on sale of equipment ................ 6 -- 3 -- 1 -- 67 0.1 --------- -------- --------- -------- ---------- -------- ----------- ----- 33,362 98.2% 31,666 97.7% 94,589 99.1% 87,833 99.1% --------- -------- --------- -------- ---------- -------- ----------- ----- Other expenses and eliminations ................ 9,550 7,981 26,681 20,425 --------- --------- ---------- ----------- Total consolidated operating expenses and costs .......... $ 374,233 $ 351,450 $1,088,291 $ 998,710 ========= ========= ========== =========== OPERATING INCOME (LOSS) ABF Freight System, Inc.(1) ... $ 29,288 $ 23,713 $ 54,958 $ 41,765 Clipper ....................... 618 733 857 801 Other loss and eliminations ... (1,261) (499) (3,776) (544) --------- --------- ---------- ----------- Total consolidated operating income ............ $ 28,645 $ 23,947 $ 52,039 $ 42,022 ========= ========= ========== ===========
(1) Includes U.S., Canadian, and Puerto Rican operations of ABF affiliates. ARKANSAS BEST CORPORATION FINANCIAL STATISTICS AND GAAP NET INCOME RECONCILIATION (UNAUDITED) - --------------------------------------------------------------------------------
ROLLING TWELVE MONTHS ENDED SEPTEMBER 30, 2003 ------------------- FINANCIAL STATISTICS After-Tax Return on Stockholders' Equity (net income / average equity)... 12.65% Debt to Equity Ratio .................................................... 0.05:1 After-Tax Return on Capital Employed (1)................................. 13.01%
(1) (Net income + interest after tax) / (average total debt + average equity)
THREE MONTHS ENDED SEPTEMBER 30, 2002 ---------------------------- NET INCOME NET PER SHARE INCOME (DILUTED) ------------ ------------ RECONCILIATION OF GAAP NET INCOME AND NET INCOME PER SHARE GAAP net income ................................................. $ 18,347 $ 0.73 Less IRS interest settlement .................................... (3,070) (0.12) Less gains on sales of excess freight facilities ................ (2,188) (0.09) Plus workers' compensation excess liability increase ............ 529 0.02 ------------ ------------ Net income, excluding above items (non-GAAP financial measure) .. $ 13,618 $ 0.54 ============ ============
ABF FREIGHT SYSTEM, INC. OPERATING STATISTICS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2003 - --------------------------------------------------------------------------------
THREE MONTHS ENDED SEPTEMBER 30 NINE MONTHS ENDED SEPTEMBER 30 2003 2002 % CHANGE 2003 2002 % CHANGE ------------ ------------ -------- ------------ ------------ -------- Billed Revenue*/CWT LTL $ 24.39 $ 22.91 6.5% $ 23.83 $ 22.06 8.0% TL 8.92 $ 8.23 8.4% $ 8.58 $ 7.85 9.3% Total $ 21.40 $ 19.94 7.3% $ 20.93 $ 19.19 9.1% Billed Revenue*/CWT LTL $ 23.60 $ 22.39 5.4% $ 22.96 $ 21.68 5.9% (without fuel surcharge) TL $ 8.63 $ 8.13 6.2% $ 8.35 $ 7.77 7.5% Total $ 20.70 $ 19.51 6.1% $ 20.18 $ 18.87 7.0% Billed Revenue*/Shipment LTL $ 238.87 $ 227.06 5.2% $ 232.23 $ 219.81 5.6% TL $ 1,459.53 $ 1,345.74 8.5% $ 1,394.78 $ 1,281.42 8.8% Total $ 256.12 $ 243.96 5.0% $ 248.37 $ 236.00 5.2% Billed Revenue*/Shipment LTL $ 231.11 $ 221.94 4.1% $ 223.73 $ 216.02 3.6% (without fuel surcharge) TL $ 1,411.17 $ 1,328.99 6.2% $ 1,358.21 $ 1,269.01 7.0% Total $ 247.78 $ 238.67 3.8% $ 239.47 $ 232.07 3.2% Tonnage LTL 681,485 677,891 0.5% 1,983,958 1,950,385 1.7% (tons) TL 163,158 171,595 (4.9)% 466,184 494,570 (5.7)% ------------ ------------ ------------ ------------ Total 844,643 849,486 (0.6)% 2,450,142 2,444,955 0.2% Shipments** LTL 1,391,605 1,367,868 1.7% 4,072,283 3,914,823 4.0% TL 19,946 20,984 (5.0)% 57,323 60,600 (5.4)% ------------ ------------ ------------ ------------ Total 1,411,551 1,388,852 1.6% 4,129,606 3,975,423 3.9%
* Billed Revenue does not include revenue deferral required for financial statement purposes under the Company's revenue recognition policy. Prior to the third quarter 2002, the Company reported revenue-per-hundredweight statistics using financial statement revenue recognized on a relative transit time basis. ** LTL and total shipment counts for the nine months ended September 30, 2002 reflect the correction of an insignificant reporting error that appeared in the second quarter 2002. There were 64 workdays in the three months ended September 30, 2003 and in the three months ended September 30, 2002. There were 191 workdays in the nine months ended September 30, 2003 and in the nine months ended September 30, 2002. Includes U.S., Canadian and Puerto Rican operations of ABF affiliates. Contact: Mr. David E. Loeffler, Vice President, Chief Financial Officer and Treasurer Telephone: (479) 785-6157 Mr. David Humphrey, Director of Investor Relations Telephone: (479) 785-6200 END OF RELEASE -----END PRIVACY-ENHANCED MESSAGE-----