EX-99.1 2 a12-17262_1ex99d1.htm EX-99.1

EXHIBIT 99.1

 

FOR IMMEDIATE RELEASE

 

ARKANSAS BEST CORPORATION ANNOUNCES

SECOND QUARTER 2012 RESULTS

 

 

·

Net income of $11.8 million

 

·

Diluted earnings per share of $0.44

 

·

Panther Expedited acquisition closes

 

·

Focus on improving ABF cost structure

 

(Fort Smith, Arkansas, July 31, 2012) — Arkansas Best Corporation (Nasdaq: ABFS) today announced second quarter 2012 net income of $11.8 million, or $0.44 per share, on revenue of $511 million, compared with net income of $5.3 million, or $0.20 per share, and revenue of $499 million in the second quarter of 2011.

 

The second quarter 2012 results included a tax benefit of $8.0 million, or $0.31 per share, related to the reversal of previously established deferred tax asset valuation allowances, and transaction costs of $2.1 million ($1.3 million, after tax), or $0.05 per share, associated with the June 15, 2012 acquisition of Panther Expedited Services, Inc. (“Panther”).  Excluding both of these items, Arkansas Best had second quarter 2012 net income of $5.2 million, or $0.18 per share.

 

“A number of significant developments occurred during the second quarter, including closing the acquisition of Panther, our premium logistics provider,” said Arkansas Best President and CEO Judy R. McReynolds.  “This transaction represents a major step in our long-term strategy to grow our non-asset-based businesses.  If Panther had been included, total 2011 revenues for Arkansas Best’s non-asset businesses would have exceeded $400 million.  The addition of Panther and the services provided by our other non-asset-based subsidiaries complement our offerings at ABF and allow us to strengthen customer relationships.”

 



 

ABF implemented a 6.9% increase in its general rates and charges on June 25, 2012 that was in effect during the last week of the second quarter.  Second quarter price increases on ABF accounts under contract and deferred pricing agreements remained at favorable levels.  In the second quarter of 2011, ABF began an aggressive initiative to address inadequate pricing and improve the profitability of many accounts across its network.  This effort continues in 2012.  As a result, the incremental profitability of ABF’s account base has improved.

 

“While we are encouraged by ABF’s yield initiatives, we continue to focus on various paths to reduce ABF’s overall cost structure,” said Ms. McReynolds.  “On-going efforts that offer opportunities to reduce ABF’s cost structure include ABF’s labor contract lawsuit, collaborative work to develop a permanent solution to correct our payment of non-ABF multiemployer pension benefits and preparations for negotiation of a new April 2013 labor contract.”

 

ABF’s second quarter 2012 daily tonnage levels continued to be below those of the same period last year as the U.S. economy remained inconsistent.  However, in each month of this year’s second quarter, the level of tonnage decrease improved versus 2011.  During the second half of 2012, monthly tonnage levels will be compared back to the second half of 2011, when ABF experienced declining tonnage versus 2010.

 

Acquisition of Panther Expedited Services, Inc.

 

As previously announced, Arkansas Best acquired Panther on June 15, 2012.  The aggregate purchase price of approximately $181 million included a preliminary post-closing adjustment to net working capital.  Arkansas Best did not assume any of Panther’s debt that existed prior to the acquisition.

 

In connection with this purchase, Arkansas Best entered into a $100 million secured term loan facility with a syndicate of banks to finance a portion of the transaction.  The balance of the proceeds needed to pay the full purchase price and transaction costs was funded out of Arkansas Best’s available cash.

 

Changes in the accompanying Arkansas Best consolidated balance sheet from December 31, 2011 to June 30, 2012 include $230 million of acquired assets and $49 million of liabilities, primarily deferred tax liabilities.  Additional details of these preliminary fair value assessments are included in the financial tables section of this press release.

 



 

Closing Comments

 

“Arkansas Best is focused on listening to our customers and providing solutions that meet their needs,” said Ms. McReynolds.  “The addition of Panther and the investments we are making in our other non-asset-based subsidiaries will further that objective and improve our opportunities to grow our relationships and our company.  Our efforts to lower ABF’s cost structure will continue until we find the right solution.”

 

Conference Call

 

Arkansas Best Corporation will host a conference call with company executives to discuss the 2012 second quarter results.  The call will be today, Tuesday, July 31, at 9:30 a.m. ET (8:30 a.m. CT).  Interested parties are invited to listen by calling (800) 618-4645.  Following the call, a recorded playback will be available through the end of the day on August 31, 2012.  To listen to the playback, dial (800) 633-8284 or (402) 977-9140 (for international callers).  The conference call ID for the playback is 21598607.  The conference call and playback can also be accessed, through August 31, on Arkansas Best’s website at arkbest.com.

 

Company Description

 

Arkansas Best Corporation, headquartered in Fort Smith, Arkansas, is a freight transportation services and solutions provider. Through its various subsidiaries, Arkansas Best offers a wide variety of logistics solutions including: domestic and global transportation of less-than-truckload (“LTL”) and full load shipments, expedited ground and time-definite delivery solutions, freight forwarding services, freight brokerage, oversight of roadside assistance and equipment services for commercial vehicles and household goods moving market services for consumers, corporations and the military. More information is available at arkbest.com, abf.com and pantherexpedite.com.

 

Forward-Looking Statements

 

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: Statements contained in this report that are not based on historical facts are “forward-looking statements.” Terms such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “plan,” “predict,” “prospects,” “scheduled,” “should,” “would,” 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, general economic conditions and related shifts in market demand that impact the performance and needs of industries served by Arkansas Best Corporation’s subsidiaries and limit our customers’ access to adequate financial resources; the successful integration of Panther; relationships with employees, including unions; union and nonunion employee wages and benefits, including changes in required contributions to multiemployer pension plans; competitive initiatives, pricing pressures, 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; availability of fuel; availability and cost of reliable third-party services; the timing and amount of capital expenditures; future costs of operating expenses such as fuel and related taxes; self-insurance claims and insurance premium costs; governmental regulations and policies; future climate change legislation; availability and cost of capital and financing arrangements; the cost and timing of growth initiatives; the impact of our brand and corporate reputation; the cost, integration, and performance of any future acquisitions; costs of continuing investments in technology and the impact of cyber incidents; weather conditions; and other financial, operational, and legal risks and uncertainties detailed from time to time in Arkansas Best Corporation’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 OPERATIONS

 

 

 

Three Months Ended
June 30

 

Six Months Ended
June 30

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

(Unaudited)

 

 

 

($ thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

OPERATING REVENUES

 

$

510,543

 

$

498,550

 

$

951,410

 

$

933,481

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES AND COSTS

 

503,342

 

489,552

 

967,196

 

946,475

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

7,201

 

8,998

 

(15,786

)

(12,994

)

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

215

 

273

 

469

 

516

 

Interest expense and other related financing costs

 

(1,112

)

(932

)

(2,255

)

(1,927

)

Other, net

 

(220

)

281

 

1,120

 

2,892

 

 

 

(1,117

)

(378

)

(666

)

1,481

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) BEFORE INCOME TAXES

 

6,084

 

8,620

 

(16,452

)

(11,513

)

 

 

 

 

 

 

 

 

 

 

INCOME TAX PROVISION (BENEFIT)

 

(5,757

)

3,169

 

(10,131

)

(4,177

)

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

11,841

 

5,451

 

(6,321

)

(7,336

)

 

 

 

 

 

 

 

 

 

 

LESS:

NONCONTROLLING INTEREST IN NET INCOME OF SUBSIDIARY

 

 

153

 

 

174

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO ARKANSAS BEST CORPORATION

 

$

11,841

 

$

5,298

 

$

(6,321

)

$

(7,510

)

 

 

 

 

 

 

 

 

 

 

EARNINGS (LOSS) PER COMMON SHARE(1)

 

 

 

 

 

 

 

 

 

Basic

 

$

0.44

 

$

0.20

 

$

(0.25

)

$

(0.30

)

Diluted

 

$

0.44

 

$

0.20

 

$

(0.25

)

$

(0.30

)

 

 

 

 

 

 

 

 

 

 

AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

Basic

 

25,544,455

 

25,411,339

 

25,496,871

 

25,358,130

 

Diluted

 

25,544,455

 

25,411,942

 

25,496,871

 

25,358,130

 

 

 

 

 

 

 

 

 

 

 

CASH DIVIDENDS DECLARED PER COMMON SHARE

 

$

0.03

 

$

0.03

 

$

0.06

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 


(1)         The Company uses the two-class method for calculating earnings per share. This method 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.

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO ARKANSAS BEST CORPORATION

 

$

11,841

 

$

5,298

 

$

(6,321

)

$

(7,510

)

 

 

 

 

 

 

 

 

 

 

EFFECT OF UNVESTED RESTRICTED STOCK AWARDS(1)

 

(549

)

(213

)

(75

)

(60

)

 

 

 

 

 

 

 

 

 

 

ADJUSTED NET INCOME (LOSS) FOR CALCULATING EARNINGS PER COMMON SHARE

 

$

11,292

 

$

5,085

 

$

(6,396

)

$

(7,570

)

 



 

ARKANSAS BEST CORPORATION

CONSOLIDATED BALANCE SHEETS

 

 

 

June 30
2012

 

December 31
2011

 

 

 

(Unaudited)

 

Note

 

 

 

($ thousands, except share data)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

53,618

 

$

141,295

 

Short-term investments

 

46,619

 

33,960

 

Restricted cash equivalents and short-term investments

 

21,025

 

52,693

 

Accounts receivable, less allowances (2012 – $4,484; 2011 – $5,957)

 

201,668

 

149,665

 

Other accounts receivable, less allowances (2012 – $1,429; 2011 – $1,226)

 

7,541

 

7,538

 

Prepaid expenses

 

15,818

 

11,363

 

Deferred income taxes

 

36,129

 

35,481

 

Prepaid and refundable income taxes

 

6,317

 

6,905

 

Other

 

9,805

 

6,186

 

TOTAL CURRENT ASSETS

 

398,540

 

445,086

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT

 

 

 

 

 

Land and structures

 

242,170

 

242,120

 

Revenue equipment

 

595,542

 

569,303

 

Service, office and other equipment

 

117,285

 

110,511

 

Software

 

99,310

 

64,229

 

Leasehold improvements

 

23,000

 

21,426

 

 

 

1,077,307

 

1,007,589

 

Less allowances for depreciation and amortization

 

614,335

 

592,171

 

 

 

462,972

 

415,418

 

 

 

 

 

 

 

GOODWILL

 

82,604

 

3,660

 

 

 

 

 

 

 

INTANGIBLE ASSETS, NET

 

71,222

 

2,822

 

 

 

 

 

 

 

OTHER ASSETS

 

51,693

 

49,234

 

 

 

 

 

 

 

 

 

$

1,067,031

 

$

916,220

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Bank overdraft and drafts payable

 

$

15,327

 

$

20,836

 

Accounts payable

 

94,561

 

66,517

 

Income taxes payable

 

220

 

169

 

Accrued expenses

 

163,159

 

151,887

 

Current portion of long-term debt

 

46,282

 

24,262

 

TOTAL CURRENT LIABILITIES

 

319,549

 

263,671

 

 

 

 

 

 

 

LONG-TERM DEBT, less current portion

 

133,796

 

46,750

 

 

 

 

 

 

 

PENSION AND POSTRETIREMENT LIABILITIES

 

91,869

 

106,578

 

 

 

 

 

 

 

OTHER LIABILITIES

 

12,630

 

13,751

 

 

 

 

 

 

 

DEFERRED INCOME TAXES

 

46,820

 

19,855

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock, $0.01 par value, authorized 70,000,000 shares; issued 2012: 27,262,457 shares; 2011: 27,099,819 shares

 

273

 

271

 

Additional paid-in-capital

 

287,678

 

286,408

 

Retained earnings

 

287,182

 

295,108

 

Treasury stock, at cost, 1,677,932 shares

 

(57,770

)

(57,770

)

Accumulated other comprehensive loss

 

(54,996

)

(58,402

)

TOTAL STOCKHOLDERS’ EQUITY

 

462,367

 

465,615

 

 

 

 

 

 

 

 

 

$

1,067,031

 

$

916,220

 

 

Note: The balance sheet at December 31, 2011 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

 

 

 

Six Months Ended
June 30

 

 

 

2012

 

2011

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

OPERATING ACTIVITIES

 

 

 

 

 

Net loss

 

$

(6,321

)

$

(7,336

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

39,970

 

35,971

 

Amortization of intangibles

 

200

 

 

Share-based compensation expense

 

3,342

 

3,699

 

Provision for losses on accounts receivable

 

729

 

1,122

 

Deferred income tax benefit

 

(8,520

)

(6,569

)

Gain on sale of property and equipment

 

(516

)

(873

)

Changes in operating assets and liabilities:

 

 

 

 

 

Receivables

 

(20,885

)

(25,756

)

Prepaid expenses

 

1,363

 

836

 

Other assets

 

(452

)

269

 

Income taxes

 

522

 

2,417

 

Accounts payable, accrued expenses and other liabilities(1)

 

4,740

 

29,352

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

14,172

 

33,132

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

Purchases of property, plant and equipment, net of financings

 

(18,401

)

(18,766

)

Proceeds from sales of property and equipment

 

2,692

 

3,370

 

Purchases of short-term investments

 

(22,143

)

(12,250

)

Proceeds from sales of short-term investments

 

9,555

 

14,125

 

Business acquisition, net of cash acquired

 

(180,793

)

 

Capitalization of internally developed software and other

 

(3,435

)

(2,183

)

NET CASH USED IN INVESTING ACTIVITIES

 

(212,525

)

(15,704

)

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

Borrowings under credit facilities

 

100,000

 

 

Payments on long-term debt

 

(12,303

)

(6,994

)

Net change in bank overdraft and other

 

(5,510

)

2,797

 

Change in restricted cash equivalents and short-term investments

 

31,668

 

(20

)

Deferred financing costs

 

(1,574

)

(133

)

Payment of common stock dividends

 

(1,605

)

(1,585

)

Proceeds from the exercise of stock options

 

 

763

 

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

 

110,676

 

(5,172

)

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

(87,677

)

12,256

 

Cash and cash equivalents at beginning of period

 

141,295

 

102,578

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

53,618

 

$

114,834

 

 

 

 

 

 

 

NONCASH INVESTING ACTIVITIES

 

 

 

 

 

Accruals for equipment received

 

$

7,416

 

$

5,358

 

Equipment financed under capital leases and notes payable

 

$

21,370

 

$

3,882

 

 


(1)  Includes $18.0 million in contributions to the Company’s nonunion pension plan for 2012.

 



 

ARKANSAS BEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

 

 

Three Months Ended
June 30

 

Six Months Ended
June 30

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

(Unaudited)

 

 

 

($ thousands, except per share data)

 

ARKANSAS BEST CORPORATION — CONSOLIDATED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) Attributable to Arkansas Best Corporation

 

 

 

 

 

 

 

 

 

Amounts on a GAAP basis

 

$

11,841

 

$

5,298

 

$

(6,321

)

$

(7,510

)

Tax benefits(1)

 

(7,973

)

 

(3,333

)

 

Transaction costs, after-tax(2)

 

1,294

 

 

1,294

 

 

Non-GAAP amounts

 

$

5,162

 

$

5,298

 

$

(8,360

)

$

(7,510

)

 

 

 

 

 

 

 

 

 

 

Diluted Earnings (Loss) Per Share

 

 

 

 

 

 

 

 

 

Amounts on a GAAP basis

 

$

0.44

 

$

0.20

 

$

(0.25

)

$

(0.30

)

Tax benefits(1)

 

(0.31

)

 

(0.13

)

 

Transaction costs, after-tax(2)

 

0.05

 

 

0.05

 

 

Non-GAAP amounts

 

$

0.18

 

$

0.20

 

$

(0.33

)

$

(0.30

)

 

 

 

 

 

 

 

 

 

 

ARKANSAS BEST CORPORATION — CONSOLIDATED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Before Interest, Taxes, Depreciation and Amortization

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Arkansas Best Corporation

 

$

11,841

 

$

5,298

 

$

(6,321

)

$

(7,510

)

Interest expense

 

1,112

 

932

 

2,255

 

1,927

 

Income taxes (benefits)

 

(5,757

)

3,169

 

(10,131

)

(4,177

)

Depreciation and amortization

 

20,850

 

18,053

 

40,170

 

35,971

 

Amortization of share based compensation

 

1,900

 

2,253

 

3,342

 

3,699

 

Amortization of actuarial losses

 

2,846

 

1,840

 

5,693

 

3,680

 

EBITDA

 

32,792

 

31,545

 

35,008

 

33,590

 

 

 

 

 

 

 

 

 

 

 

Transaction costs, pre-tax(2)

 

2,129

 

 

2,129

 

 

Adjusted EBITDA

 

$

34,921

 

$

31,545

 

$

37,137

 

$

33,590

 

 

 

 

 

 

 

 

 

 

 

PREMIUM LOGISTICS & EXPEDITED FREIGHT SERVICES (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Before Interest, Taxes, Depreciation and Amortization

 

 

 

 

 

 

 

 

 

Operating income

 

$

480

 

$

 

$

480

 

$

 

Depreciation and amortization

 

473

 

 

473

 

 

EBITDA

 

$

953

 

$

 

$

953

 

$

 

 


(1)             Tax benefit adjustments related to deferred tax asset valuation allowances.

(2)             Transaction costs associated with the June 15, 2012 acquisition of Panther Expedited Services, Inc.

(3)             Includes the results of Panther Expedited Services, Inc., for the period of June 16 to June 30, 2012.

 

Non-GAAP Financial Measures. The company reports its financial results in accordance with generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP performance measures and ratios utilized for internal analysis provide financial statement users meaningful comparisons between current and prior period results, as well as important information regarding performance trends. Certain information discussed in the scheduled conference call could be considered non-GAAP measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the company’s reported results. Management believes EBITDA to be relevant and useful information as EBITDA is a standard measure commonly reported and widely used by analysts, investors and others to measure financial performance and ability to service debt obligations. However, these financial measures should not be construed as better measurements than operating income, operating cash flow, net income or earnings per share, as defined by GAAP. Other companies may calculate Adjusted EBITDA differently, and therefore the Company’s Adjusted EBITDA may not be comparable to similarly titled measures of other companies. As Panther’s net income is not presented, EBITDA has been reconciled to operating income, which is the reported GAAP measure.

 



 

On June 15, 2012, Arkansas Best completed the acquisition of Panther Expedited Services, Inc.  The following table summarizes the preliminary fair values of the acquired assets and liabilities for Panther.

 

 

 

Preliminary
Allocation

 

 

 

($ millions)

 

Fair value of assets acquired:

 

 

 

Accounts receivable

 

$

31.8

 

Deferred income taxes

 

0.6

 

Other current assets

 

5.8

 

Property, plant and equipment (other than acquired software)

 

7.4

 

Intangible assets (including acquired software)

 

101.0

 

Goodwill

 

78.9

 

Other assets

 

4.3

 

Total assets acquired

 

229.8

 

 

 

 

 

Fair value of liabilities assumed:

 

 

 

Accounts payable

 

(12.3

)

Other current liabilities

 

(4.5

)

Deferred income taxes on acquired assets

 

(32.2

)

Total liabilities

 

(49.0

)

 

 

 

 

Cash paid, net of cash acquired

 

$

180.8

 

 

The above purchase price allocation was based on preliminary information regarding the fair values of acquired assets and liabilities for Panther and the amount of goodwill recognized as of June 15, 2012. With the assistance of a third-party valuation firm, Arkansas Best is conducting an assessment of the fair values of acquired assets and liabilities for Panther and the amount of goodwill recognized as of June 15, 2012. This assessment requires a significant amount of judgment, and Arkansas Best has not completed this analysis as it relates to the valuation of Panther. Based on the preliminary purchase price allocation, amortization of intangible assets, including software, is estimated to total approximately $8 million per year.

 



 

ARKANSAS BEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS

 

 

 

Three Months Ended
June 30

 

Six Months Ended
June 30

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

(Unaudited)
($ thousands)

 

OPERATING REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Freight Transportation(1)

 

$

445,740

 

 

 

$

452,126

 

 

 

$

846,295

 

 

 

$

849,398

 

 

 

Premium Logistics & Expedited Freight Services(2)

 

10,835

 

 

 

 

 

 

10,835

 

 

 

 

 

 

Truck Brokerage & Management(3)

 

10,021

 

 

 

6,411

 

 

 

18,060

 

 

 

11,511

 

 

 

Emergency and Preventative Maintenance(4)

 

30,101

 

 

 

23,341

 

 

 

52,479

 

 

 

45,618

 

 

 

Household Goods Moving Services(5)

 

20,479

 

 

 

25,241

 

 

 

35,531

 

 

 

41,112

 

 

 

Total non-asset-based segments

 

71,436

 

 

 

54,993

 

 

 

116,905

 

 

 

98,241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues and eliminations

 

(6,633

)

 

 

(8,569

)

 

 

(11,790

)

 

 

(14,158

)

 

 

Total consolidated operating revenues

 

$

510,543

 

 

 

$

498,550

 

 

 

$

951,410

 

 

 

$

933,481

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES AND COSTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Freight Transportation(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

$

269,488

 

60.5

%

$

273,065

 

60.4

%

$

535,005

 

63.2

%

$

535,365

 

63.0

%

Fuel, supplies and expenses

 

82,893

 

18.6

 

88,010

 

19.5

 

163,658

 

19.3

 

167,127

 

19.7

 

Operating taxes and licenses

 

10,823

 

2.4

 

11,572

 

2.6

 

21,623

 

2.6

 

22,993

 

2.7

 

Insurance

 

5,587

 

1.3

 

6,511

 

1.4

 

10,471

 

1.2

 

12,991

 

1.5

 

Communications and utilities

 

3,464

 

0.8

 

3,723

 

0.8

 

7,268

 

0.9

 

7,697

 

0.9

 

Depreciation and amortization

 

19,477

 

4.4

 

17,341

 

3.8

 

38,058

 

4.5

 

34,542

 

4.1

 

Rents and purchased transportation

 

44,285

 

9.9

 

43,170

 

9.5

 

81,043

 

9.6

 

81,525

 

9.6

 

Gain on sale of property and equipment

 

(231

)

(0.1

)

(784

)

(0.2

)

(513

)

(0.1

)

(883

)

(0.1

)

Other

 

2,277

 

0.5

 

1,920

 

0.5

 

3,982

 

0.5

 

3,501

 

0.4

 

 

 

438,063

 

98.3

%

444,528

 

98.3

%

860,595

 

101.7

%

864,858

 

101.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium Logistics & Expedited Freight Services(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

$

8,247

 

76.1

%

$

 

 

$

8,247

 

76.1

%

$

 

 

Depreciation and amortization

 

473

 

4.4

 

 

 

473

 

4.4

 

 

 

Other

 

1,635

 

15.1

 

 

 

1,635

 

15.1

 

 

 

 

 

10,355

 

95.6

%

 

 

10,355

 

95.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Truck Brokerage & Management(3)

 

9,366

 

 

 

5,843

 

 

 

17,011

 

 

 

10,558

 

 

 

Emergency and Preventative Maintenance(4)

 

29,407

 

 

 

22,424

 

 

 

51,921

 

 

 

43,779

 

 

 

Household Goods Moving Services(5)

 

20,314

 

 

 

24,293

 

 

 

36,157

 

 

 

40,028

 

 

 

Total non-asset-based segments

 

69,442

 

 

 

52,560

 

 

 

115,444

 

 

 

94,365

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses and eliminations

 

(4,163

)

 

 

(7,536

)

 

 

(8,843

)

 

 

(12,748

)

 

 

Total consolidated operating expenses and costs

 

$

503,342

 

 

 

$

489,552

 

 

 

$

967,196

 

 

 

$

946,475

 

 

 

 



 

ARKANSAS BEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS — Continued

 

 

 

Three Months Ended
June 30

 

Six Months Ended
June 30

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

(Unaudited)
($ thousands)

 

OPERATING INCOME (LOSS)

 

 

 

 

 

 

 

 

 

Freight Transportation(1)

 

$

7,677

 

$

7,598

 

$

(14,300

)

$

(15,460

)

Premium Logistics & Expedited Freight Services(2)

 

480

 

 

480

 

 

Truck Brokerage & Management(3)

 

655

 

568

 

1,049

 

953

 

Emergency and Preventative Maintenance(4)

 

694

 

917

 

558

 

1,839

 

Household Goods Moving Services(5)

 

165

 

948

 

(626

)

1,084

 

Total non-asset-based segments

 

1,994

 

2,433

 

1,461

 

3,876

 

 

 

 

 

 

 

 

 

 

 

Other income (loss) and eliminations

 

(2,470

)

(1,033

)

(2,947

)

(1,410

)

Total consolidated operating income (loss)

 

$

7,201

 

$

8,998

 

$

(15,786

)

$

(12,994

)

 


(1)             This segment includes the results of operations of Arkansas Best’s largest subsidiary, ABF Freight System, Inc.®.

(2)             This segment includes the results of operations of Arkansas Best’s expedited services operating as Panther Expedited Services, Inc. for the period of June 16 to June 30, 2012.

(3)             This segment includes the results of operations of Arkansas Best’s transportation brokerage services operating as FreightValue®.

(4)             This segment includes the results of operations of Arkansas Best’s roadside vehicle assistance and commercial equipment services subsidiary FleetNet America, Inc.

(5)             This segment includes the results of operations of Arkansas Best’s subsidiaries Albert Companies, Inc. and Moving Solutions, Inc. which provide services to the consumer, corporate, and military household goods moving market.

 



 

ABF FREIGHT SYSTEM, INC.

OPERATING STATISTICS

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30

 

June 30

 

 

 

2012

 

2011

 

% Change

 

2012

 

2011

 

% Change

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Freight Transportation (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Workdays

 

63.5

 

63.5

 

 

 

127.5

 

127.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Billed Revenue (2) / CWT

 

$

27.88

 

$

26.64

 

4.7

%

$

27.75

 

$

25.72

 

7.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Billed Revenue (2) / Shipment

 

$

378.35

 

$

363.10

 

4.2

%

$

373.04

 

$

349.41

 

6.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments

 

1,173,964

 

1,247,783

 

(5.9

)%

2,269,122

 

2,443,050

 

(7.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments / Day

 

18,488

 

19,650

 

(5.9

)%

17,797

 

19,237

 

(7.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage (tons)

 

796,486

 

850,209

 

(6.3

)%

1,525,295

 

1,659,207

 

(8.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tons / Day

 

12,543

 

13,389

 

(6.3

)%

11,963

 

13,065

 

(8.4

)%

 


(1)             Operating statistics for the Freight Transportation segment do not include the results from ABF’s Global Supply Chain Services.

(2)             Billed Revenue does not include revenue deferral required for financial statement purposes under the company’s revenue recognition policy.

 

Contact:       Mr. David Humphrey, Vice President, Investor Relations and Corporate Communications

Telephone: (479) 785-6200

 

END OF RELEASE