Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - ARCBEST CORP /DE/ | a12-17262_18k.htm |
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
ARKANSAS BEST CORPORATION
CONSOLIDATED BALANCE SHEETS
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June 30 |
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December 31 |
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(Unaudited) |
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Note |
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($ thousands, except share data) |
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ASSETS |
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|
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|
|
|
|
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CURRENT ASSETS |
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|
|
|
| ||
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Cash and cash equivalents |
|
$ |
53,618 |
|
$ |
141,295 |
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|
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) |
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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 |
| ||
|
|
|
|
|
|
| ||
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PROPERTY, PLANT AND EQUIPMENT |
|
|
|
|
| ||
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Land and structures |
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242,170 |
|
242,120 |
| ||
|
Revenue equipment |
|
595,542 |
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569,303 |
| ||
|
Service, office and other equipment |
|
117,285 |
|
110,511 |
| ||
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Software |
|
99,310 |
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64,229 |
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Leasehold improvements |
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23,000 |
|
21,426 |
| ||
|
|
|
1,077,307 |
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1,007,589 |
| ||
|
Less allowances for depreciation and amortization |
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614,335 |
|
592,171 |
| ||
|
|
|
462,972 |
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415,418 |
| ||
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|
|
|
|
|
| ||
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GOODWILL |
|
82,604 |
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3,660 |
| ||
|
|
|
|
|
|
| ||
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INTANGIBLE ASSETS, NET |
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71,222 |
|
2,822 |
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|
|
|
|
|
|
| ||
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OTHER ASSETS |
|
51,693 |
|
49,234 |
| ||
|
|
|
|
|
|
| ||
|
|
|
$ |
1,067,031 |
|
$ |
916,220 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
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|
|
|
| ||
|
|
|
|
|
|
| ||
|
CURRENT LIABILITIES |
|
|
|
|
| ||
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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 |
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106,578 |
| ||
|
|
|
|
|
|
| ||
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OTHER LIABILITIES |
|
12,630 |
|
13,751 |
| ||
|
|
|
|
|
|
| ||
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DEFERRED INCOME TAXES |
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46,820 |
|
19,855 |
| ||
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|
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|
|
|
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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
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Six Months Ended |
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2012 |
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2011 |
| ||
|
|
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(Unaudited) |
| ||||
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($ 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 $18.0 million in contributions to the Company’s nonunion pension plan for 2012.
ARKANSAS BEST CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
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|
|
Three Months Ended |
|
Six Months Ended |
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|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
|
|
(Unaudited) |
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|
|
|
($ thousands, except per share data) |
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|
ARKANSAS BEST CORPORATION — CONSOLIDATED |
|
|
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|
|
|
| ||||
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|
|
|
|
|
|
|
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|
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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 |
| |
|
|
|
($ 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 |
|
Six Months Ended |
| ||||||||||||||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||||||||||
|
|
|
(Unaudited) |
| ||||||||||||||||||
|
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 |
|
Six Months Ended |
| ||||||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
|
|
(Unaudited) |
| ||||||||||
|
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