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8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - ARCBEST CORP /DE/a15-10449_18k.htm

EXHIBIT 99.1

 

 

FOR IMMEDIATE RELEASE

 

Investor Relations Contact: David Humphrey

Media Contact: Kathy Fieweger

Title: Vice President — Investor Relations

Title: Chief Marketing Officer

Phone: 479-785-6200

Phone: 479-719-4358

Email: dhumphrey@arcb.com

Email: kfieweger@arcb.com

 

ArcBest CorporationSM Announces First Quarter 2015 Results

 

·                  ArcBest experiences best first quarter in seven years

 

·                  First quarter 2015 net income of $0.7 million, or $0.03 per share.  Excluding pension settlement charges, first quarter 2015 net income was $1.4 million, or $0.06 per share.

 

·                  First quarter revenue growth and a positive pricing environment at ABF FreightSM resulted in improved operating margins.

 

·                  First quarter revenue at ArcBest’s emerging businesses increased by 16 percent as more comprehensive customer services were offered across the array of ArcBest companies.

 

FORT SMITH Arkansas, May 4, 2015 — ArcBest Corporation (Nasdaq: ARCB) today reported first quarter 2015 earnings of $0.03 per share compared to a first quarter 2014 net loss of $0.20 per share, as ABF Freight posted operating income and the emerging businesses, which in total equaled 29 percent of ArcBest’s revenue, all grew from the year-ago period.

 

Excluding pension settlement charges in both periods, ArcBest earned $0.06 per share in first quarter 2015 compared to a net loss of $0.11 per share last year.

 

ArcBest Corporation

 

Consolidated Results of Operations

 

First Quarter 2015

 

·                Revenue of $613.3 million, an increase of 6 percent over the prior year quarter of  $577.9 million

 

·                Net income of $0.7 million compared to a net loss of $5.2 million in the prior year quarter

 

·                Excluding pension settlement charges, net income of $1.4 million compared to a net loss of $2.9 million in the prior year quarter

 

1



 

“We were very gratified to see ArcBest post a first-quarter profit for the first time in seven years,” said ArcBest President and CEO Judy R. McReynolds. “As productivity and pricing improved, ABF Freight reversed last year’s first-quarter losses while maintaining its focus on better serving customers.  The emerging businesses contributed their largest revenue portion yet to ArcBest, at 29 percent of total consolidated revenue, as our efforts to provide tailored, customized solutions across the supply chain are resonating well.”

 

Freight Transportation (ABF Freight)

 

Results of Operations

 

First Quarter 2015

 

·                  Revenue of $441.2 million compared to $428.9 million in first quarter 2014, an increase of 2.9 percent

 

·                  Tonnage per day decrease of 0.5 percent versus first quarter 2014

 

·                  Total billed revenue per hundredweight of $28.06 compared to $27.05 the prior year, an increase of 3.7 percent

 

·                  Breakeven operating income compared to an operating loss of $12.2 million and an operating ratio of 102.8 percent in first quarter 2014

 

·                  Excluding adjustments for pension settlement charges, operating income of $0.9 million and operating ratio of 99.8 percent compared to an operating loss of $9.3 million and an operating ratio of 102.1 percent in first quarter 2014

 

·                  Though less of an effect than last year, results include a reduction in operating income associated with severe winter weather

 

ABF Freight experienced first quarter revenue growth on improved pricing despite the effects of a slight reduction in total freight tonnage.  By effectively managing its labor and equipment resources during the quarter, ABF Freight sought to maintain consistent service levels to both new and existing LTL customers.  Management focus has resulted in improved dock productivity as employees hired last year are more experienced in freight handling and loading.  Despite year-over-year reductions in fuel surcharge related to lower fuel prices, ABF Freight continued to experience positive account pricing through its traditional ability to focus on unique, customer-specific solutions.

 

2



 

Emerging, Non-Asset-Based Businesses

 

Results of Operations

 

First Quarter 2015

 

·                  Revenue of $183.7 million compared to $158.4 million in first quarter 2014, an increase of 16 percent

 

·                  These businesses equaled 29 percent of total consolidated revenue compared to 27 percent during the same period last year

 

·                  First quarter 2015 earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $6.6 million compared to EBITDA in the first quarter of 2014 of $7.9 million, impacted by higher than expected healthcare and casualty claims

 

During the first quarter, ArcBest’s emerging, non-asset-based businesses continued to experience revenue growth highlighted by strong, double digit increases at ABF Logistics and ABF Moving.  ABF Logistics experienced significant growth in the freight brokerage business associated with additional shipments from new and existing customers and the expanding benefits of offering logistics services to customers across the ArcBest enterprise of companies.  As previously discussed, continued investments in personnel and resources needed to drive future growth are not yet fully contributing at margin levels expected when the business matures.

 

Compared to strong revenue growth last year, Panther had a moderate first quarter revenue increase on 16 percent growth in shipments, primarily driven by new customers.  Gross profit margins were impacted by demand softness and lower rates in the expedited market resulting from more readily available truckload capacity versus last year, and a shorter length of haul on new Panther business.  The quarter’s results were impacted by unfavorable experience in casualty claims and higher than expected healthcare costs, which in total increased Panther’s operating costs versus the same period last year by $1.5 million. Finally, costs associated with investments in additional sales personnel and infrastructure for future business growth also reduced first quarter 2015 profitability.

 

Conference Call

 

ArcBest Corporation will host a conference call with company executives to discuss the 2015 first quarter results. The call will be today, Monday, May 4, at 9:30 a.m. ET (8:30 a.m. CT). Interested parties are invited to listen by calling (800) 734-4208. Following the call, a recorded playback will be available through the end of the day on June 15, 2015. To listen to the playback, dial (800) 633-8284 or (402) 977-9140 (for international callers). The conference call

 

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ID for the playback is 21766025. The conference call and playback can also be accessed, through June 15, 2015, on ArcBest’s website at arcb.com.

 

About ArcBest

 

ArcBest CorporationSM (Nasdaq: ARCB) solves complex logistics and transportation challenges. Our companies and brands — ABF FreightSM, ABF LogisticsSM, Panther Premium Logistics®, FleetNet America®, U-Pack® and ArcBest Technologies — apply the skill and the will with every shipment and supply chain solution, household move or vehicle repair. ArcBest finds a way.

 

For more information, visit arcb.com, abf.com, pantherpremium.com, fleetnetamerica.com and upack.com. ArcBest CorporationSM. The Skill & The WillSM.

 

Forward-Looking Statements

 

Certain statements and information in this press release concerning results for the three months ended March 31, 2015 may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “foresee,” “intend,” “may,” “plan,” “predict,” “project,” “scheduled,” “should,” “would” and similar expressions and the negatives of such terms are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effect on us. Although management believes that these forward-looking statements are reasonable, as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and management’s present expectations or projections. Important factors that could cause our actual results to differ materially from those in the forward-looking statements include, but are not limited to: costs of continuing investments in technology, a failure of our information systems and the impact of cyber incidents; disruptions or failures of services essential to the operation of our business or the use of information technology platforms in our business; governmental regulations and policies; litigation or claims asserted against us; 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; general economic conditions and related shifts in market demand that impact the performance and needs of industries served by ArcBest Corporation’s subsidiaries and/or limit our customers’ access to adequate financial resources;

 

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unfavorable terms of, or the inability to reach agreement on, future collective bargaining agreements or a workforce stoppage by our employees covered under ABF Freight’s collective bargaining agreement; relationships with employees, including unions, and our ability to attract and retain employees and/or independent owner operators; availability of fuel; default on covenants of financing arrangements and the availability and terms of future financing arrangements; availability and cost of reliable third-party services; increased competition from freight transportation service providers outside the motor carrier freight transportation industry; timing and amount of capital expenditures, increased prices for and decreased availability of new revenue equipment and decreases in value of used revenue equipment; future costs of operating expenses such as maintenance and fuel and related taxes; self-insurance claims and insurance premium costs; environmental laws and regulations, including emissions-control regulations; potential impairment of goodwill and intangible assets; the impact of our brands and corporate reputation; the cost, timing and performance of growth initiatives; the cost, integration and performance of any future acquisitions; weather conditions; and other financial, operational and legal risks and uncertainties detailed from time to time in ArcBest Corporation’s Securities and Exchange Commission public filings.

 

For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

 

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

 

Financial Data and Operating Statistics

 

The following tables show financial data and operating statistics on ArcBest CorporationSM and its subsidiary companies.

 

5



 

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

Three Months Ended
March 31

 

 

 

2015

 

2014

 

 

 

(Unaudited)

 

 

 

($ thousands, except share and per share data)

 

 

 

 

 

 

 

REVENUES

 

$

613,276

 

$

577,904

 

 

 

 

 

 

 

OPERATING EXPENSES

 

611,996

 

586,606

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

1,280

 

(8,702

)

 

 

 

 

 

 

OTHER INCOME (COSTS)

 

 

 

 

 

Interest and dividend income

 

234

 

190

 

Interest and other related financing costs

 

(1,002

)

(808

)

Other, net

 

400

 

365

 

 

 

(368

)

(253

)

 

 

 

 

 

 

INCOME (LOSS) BEFORE INCOME TAXES

 

912

 

(8,955

)

 

 

 

 

 

 

INCOME TAX PROVISION (BENEFIT)

 

167

 

(3,762

)

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

745

 

$

(5,193

)

 

 

 

 

 

 

EARNINGS (LOSS) PER COMMON SHARE

 

 

 

 

 

Basic

 

$

0.03

 

$

(0.20

)

Diluted

 

$

0.03

 

$

(0.20

)

 

 

 

 

 

 

AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

Basic

 

26,051,038

 

25,876,928

 

Diluted

 

26,588,518

 

25,876,928

 

 

 

 

 

 

 

CASH DIVIDENDS DECLARED PER COMMON SHARE

 

$

0.06

 

$

0.03

 

 

6



 

ARCBEST CORPORATION

CONSOLIDATED BALANCE SHEETS

 

 

 

March 31
2015

 

December 31
2014

 

 

 

(Unaudited)

 

Note

 

 

 

($ thousands, except share data)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

166,022

 

$

157,042

 

Short-term investments

 

45,980

 

45,909

 

Restricted cash

 

1,386

 

1,386

 

Accounts receivable, less allowances (2015 — $5,653; 2014 — $5,731)

 

230,715

 

228,056

 

Other accounts receivable, less allowances (2015 — $1,489; 2014 — $1,701)

 

6,289

 

6,582

 

Prepaid expenses

 

22,599

 

20,906

 

Deferred income taxes

 

38,468

 

40,220

 

Prepaid and refundable income taxes

 

12,657

 

9,920

 

Other

 

4,907

 

4,968

 

TOTAL CURRENT ASSETS

 

529,023

 

514,989

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT

 

 

 

 

 

Land and structures

 

264,740

 

251,836

 

Revenue equipment

 

628,136

 

633,455

 

Service, office, and other equipment

 

135,156

 

136,145

 

Software

 

119,431

 

116,112

 

Leasehold improvements

 

24,496

 

24,377

 

 

 

1,171,959

 

1,161,925

 

Less allowances for depreciation and amortization

 

766,217

 

752,075

 

 

 

405,742

 

409,850

 

GOODWILL

 

80,696

 

77,078

 

INTANGIBLE ASSETS, NET

 

72,862

 

72,809

 

OTHER ASSETS

 

53,376

 

52,896

 

 

 

 

 

 

 

 

 

$

1,141,699

 

$

1,127,622

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Bank overdraft and drafts payable

 

$

14,299

 

$

16,095

 

Accounts payable

 

115,566

 

104,230

 

Income taxes payable

 

257

 

527

 

Accrued expenses

 

176,737

 

194,674

 

Current portion of long-term debt

 

22,639

 

25,256

 

TOTAL CURRENT LIABILITIES

 

329,498

 

340,782

 

 

 

 

 

 

 

LONG-TERM DEBT, less current portion

 

132,837

 

102,474

 

PENSION AND POSTRETIREMENT LIABILITIES

 

44,448

 

42,418

 

OTHER LIABILITIES

 

12,740

 

16,667

 

DEFERRED INCOME TAXES

 

64,245

 

64,398

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock, $0.01 par value, authorized 70,000,000 shares; issued 2015: 27,739,223 shares; 2014: 27,722,010 shares

 

277

 

277

 

Additional paid-in-capital

 

304,570

 

303,045

 

Retained earnings

 

337,971

 

338,810

 

Treasury stock, at cost, 2015: 1,742,132 shares; 2014: 1,677,932 shares

 

(60,229

)

(57,770

)

Accumulated other comprehensive loss

 

(24,658

)

(23,479

)

TOTAL STOCKHOLDERS’ EQUITY

 

557,931

 

560,883

 

 

 

 

 

 

 

 

 

$

1,141,699

 

$

1,127,622

 

 

Note: The balance sheet at December 31, 2014 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.

 

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ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

Three Months Ended
March 31

 

 

 

2015

 

2014

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

OPERATING ACTIVITIES

 

 

 

 

 

Net income (loss)

 

$

745

 

$

(5,193

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

21,084

 

19,410

 

Amortization of intangibles

 

1,148

 

1,043

 

Pension settlement expense

 

1,119

 

3,691

 

Share-based compensation expense

 

1,647

 

1,568

 

Provision for losses on accounts receivable

 

312

 

84

 

Deferred income tax provision (benefit)

 

1,507

 

(3,493

)

Gain on sale of property and equipment

 

(310

)

(214

)

Changes in operating assets and liabilities:

 

 

 

 

 

Receivables

 

(902

)

(19,268

)

Prepaid expenses

 

(1,689

)

(3,163

)

Other assets

 

456

 

(1,710

)

Income taxes

 

(2,426

)

(3,610

)

Accounts payable, accrued expenses, and other liabilities

 

(11,759

)

17,065

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

10,932

 

6,210

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

Purchases of property, plant and equipment, net of financings

 

(16,546

)

(8,654

)

Proceeds from sales of property and equipment

 

977

 

746

 

Business acquisition, net of cash acquired

 

(5,170

)

 

Capitalization of internally developed software

 

(2,087

)

(1,879

)

NET CASH USED IN INVESTING ACTIVITIES

 

(22,826

)

(9,787

)

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

Borrowings under credit facilities

 

70,000

 

 

Borrowings under accounts receivable securitization program

 

35,000

 

 

Payments on long-term debt

 

(77,254

)

(7,765

)

Net change in bank overdraft and drafts payable

 

(2,005

)

1,399

 

Deferred financing costs

 

(824

)

 

Payment of common stock dividends

 

(1,584

)

(819

)

Purchase of treasury stock

 

(2,459

)

 

Proceeds from the exercise of stock options

 

 

1,136

 

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

 

20,874

 

(6,049

)

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

8,980

 

(9,626

)

Cash and cash equivalents at beginning of period

 

157,042

 

105,354

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

166,022

 

$

95,728

 

 

 

 

 

 

 

NONCASH INVESTING ACTIVITIES

 

 

 

 

 

Accruals for equipment received

 

$

163

 

$

102

 

 

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ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

 

 

Three Months Ended
March 31

 

 

 

2015

 

2014

 

 

 

(Unaudited)

 

 

($ thousands, except percentages)

Freight Transportation (ABF Freight)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss) ($) Operating Ratio (% of revenues)

 

 

 

 

 

 

 

 

 

Amounts on a GAAP basis

 

$

43

 

100.0

%

$

(12,184

)

102.8

%

Pension settlement expense

 

840

 

(0.2

)

2,890

 

(0.7

)

Non-GAAP amounts

 

$

883

 

99.8

%

$

(9,294

)

102.1

%

 

 

 

Three Months Ended
March 31

 

 

 

2015

 

2014

 

 

 

(Unaudited)

 

 

 

($ thousands, except per share data)

 

ArcBest Corporation — Consolidated

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 

 

 

 

Amounts on a GAAP basis

 

$

745

 

$

(5,193

)

Pension settlement expense, after-tax(1)

 

684

 

2,255

 

Non-GAAP amounts

 

$

1,429

 

$

(2,938

)

 

 

 

 

 

 

Diluted Earnings (Loss) Per Share

 

 

 

 

 

Amounts on a GAAP basis

 

$

0.03

 

$

(0.20

)

Pension settlement expense, after-tax(1)

 

0.03

 

0.09

 

Non-GAAP amounts

 

$

0.06

 

$

(0.11

)

 


(1)         Consolidated pension settlement expense totaled $1.1 million (pre-tax) and $3.7 million (pre-tax) for the three months ended March 31, 2015 and 2014, respectively.

 

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ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES — Continued

 

 

 

Three Months Ended
March 31

 

 

 

2015

 

2014

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (Adjusted EBITDA)

 

 

 

 

 

 

 

 

 

 

 

ArcBest Corporation — Consolidated

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

745

 

$

(5,193

)

Interest and other related financing costs

 

1,002

 

808

 

Income tax provision (benefit)

 

167

 

(3,762

)

Depreciation and amortization

 

22,232

 

20,453

 

Amortization of share-based compensation

 

1,647

 

1,568

 

Amortization of actuarial losses of benefit plans and pension settlement expense(1)

 

2,193

 

4,268

 

Adjusted EBITDA

 

$

27,986

 

$

18,142

 

 


(1)         Consolidated pension settlement expense totaled $1.1 million (pre-tax) and $3.7 million (pre-tax) for the three months ended March 31, 2015 and 2014, respectively.

 

 

 

Three Months Ended
March 31
2015

 

Three Months Ended
March 31
2014

 

 

 

Operating
Income
(Loss)

 

Depreciation
and
Amortization

 

EBITDA

 

Operating
Income
(Loss)

 

Depreciation
and
Amortization

 

EBITDA

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Asset-Based Segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium Logistics (Panther)(2)

 

$

1,195

 

$

2,924

 

$

4,119

 

$

3,364

 

$

2,737

 

$

6,101

 

Emergency & Preventative Maintenance (FleetNet)

 

1,170

 

283

 

1,453

 

1,401

 

174

 

1,575

 

Transportation Management (ABF Logistics)

 

775

 

284

 

1,059

 

535

 

216

 

751

 

Household Goods Moving Services (ABF Moving)

 

(363

)

350

 

(13

)

(841

)

349

 

(492

)

Total non-asset-based segments

 

$

2,777

 

$

3,841

 

$

6,618

 

$

4,459

 

$

3,476

 

$

7,935

 

 


(2)         Depreciation and amortization consists primarily of amortization of intangibles, including customer relationships and software associated with the June 15, 2012 acquisition of Panther.

 

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 and Adjusted 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 generally accepted accounting principles. Other companies may calculate EBITDA differently, and therefore the Company’s EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

 

10



 

ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS

 

 

 

Three Months Ended
March 31

 

 

 

2015

 

2014

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

REVENUES

 

 

 

 

 

 

 

 

 

Freight Transportation (ABF Freight)

 

$

441,207

 

 

 

$

428,871

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium Logistics (Panther)

 

75,292

 

 

 

72,226

 

 

 

Emergency & Preventative Maintenance (FleetNet)

 

42,489

 

 

 

41,699

 

 

 

Transportation Management (ABF Logistics)

 

47,372

 

 

 

29,717

 

 

 

Household Goods Moving Services (ABF Moving)

 

18,568

 

 

 

14,750

 

 

 

Total non-asset-based segments

 

183,721

 

 

 

158,392

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and eliminations

 

(11,652

)

 

 

(9,359

)

 

 

Total consolidated revenues

 

$

613,276

 

 

 

$

577,904

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

Freight Transportation (ABF Freight)

 

 

 

 

 

 

 

 

 

Salaries, wages, and benefits

 

$

278,371

 

63.1

%

$

261,154

 

60.9

%

Fuel, supplies, and expenses

 

79,026

 

17.9

 

90,791

 

21.2

 

Operating taxes and licenses

 

11,996

 

2.7

 

11,493

 

2.7

 

Insurance

 

5,785

 

1.3

 

5,395

 

1.2

 

Communications and utilities

 

3,985

 

0.9

 

4,242

 

1.0

 

Depreciation and amortization

 

17,400

 

3.9

 

16,338

 

3.8

 

Rents and purchased transportation

 

41,844

 

9.5

 

47,420

 

11.0

 

Gain on sale of property and equipment

 

(244

)

 

(203

)

 

Pension settlement expense(1)

 

840

 

0.2

 

2,890

 

0.7

 

Other

 

2,161

 

0.5

 

1,535

 

0.3

 

 

 

441,164

 

100.0

%

441,055

 

102.8

%

 

 

 

 

 

 

 

 

 

 

Premium Logistics (Panther)

 

 

 

 

 

 

 

 

 

Purchased transportation

 

$

56,044

 

74.4

%

$

54,573

 

75.5

%

Depreciation and amortization(2)

 

2,924

 

3.9

 

2,737

 

3.8

 

Salaries, benefits, insurance, and other

 

15,129

 

20.1

 

11,552

 

16.0

 

 

 

74,097

 

98.4

%

68,862

 

95.3

%

 

 

 

 

 

 

 

 

 

 

Emergency & Preventative Maintenance (FleetNet)

 

41,319

 

 

 

40,298

 

 

 

Transportation Management (ABF Logistics)

 

46,597

 

 

 

29,182

 

 

 

Household Goods Moving Services (ABF Moving)

 

18,931

 

 

 

15,591

 

 

 

Total non-asset-based segments

 

180,944

 

 

 

153,933

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses and eliminations(1)

 

(10,112

)

 

 

(8,382

)

 

 

Total consolidated operating expenses and costs(1)

 

$

611,996

 

 

 

$

586,606

 

 

 

 


(1)         Pension settlement expense totaled $1.1 million (pre-tax) and $3.7 million (pre-tax) on a consolidated basis for the three months ended March 31, 2015 and 2014, respectively.  For the three months ended March 31, 2015, pre-tax pension settlement expense of $0.8 million was reported by ABF Freight, $0.2 million was reported in Other and eliminations, and $0.1 million was reported by the non-asset-based segments. For the three months ended March 31, 2014, pre-tax pension settlement expense of $2.9 million was reported by ABF Freight, $0.7 million was reported in Other and eliminations, and $0.1 million was reported by the non-asset-based segments.

 

(2)         Depreciation and amortization consists primarily of amortization of intangibles, including customer relationships and software associated with the June 15, 2012 acquisition of Panther.

 

11



 

ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS — Continued

 

 

 

Three Months Ended
March 31

 

 

 

2015

 

2014

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

OPERATING INCOME (LOSS)

 

 

 

 

 

Freight Transportation (ABF Freight)

 

$

43

 

$

(12,184

)

 

 

 

 

 

 

Premium Logistics (Panther)

 

1,195

 

3,364

 

Emergency & Preventative Maintenance (FleetNet)

 

1,170

 

1,401

 

Transportation Management (ABF Logistics)

 

775

 

535

 

Household Goods Moving Services (ABF Moving)

 

(363

)

(841

)

Total non-asset-based segments

 

2,777

 

4,459

 

 

 

 

 

 

 

Other loss and eliminations

 

(1,540

)

(977

)

Total consolidated operating income (loss)

 

$

1,280

 

$

(8,702

)

 

12



 

ARCBEST CORPORATION

OPERATING STATISTICS

 

 

 

Three Months Ended

 

 

 

March 31

 

 

 

2015

 

2014

 

% Change

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

Freight Transportation (ABF Freight)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Workdays

 

62.5

 

63.0

 

 

 

 

 

 

 

 

 

 

 

Billed Revenue(1) / CWT

 

$

28.06

 

$

27.05

 

3.7

%

 

 

 

 

 

 

 

 

Billed Revenue(1) / Shipment

 

$

372.56

 

$

381.84

 

(2.4

)%

 

 

 

 

 

 

 

 

Shipments

 

1,188,797

 

1,133,332

 

4.9

%

 

 

 

 

 

 

 

 

Shipments / Day

 

19,021

 

17,989

 

5.7

%

 

 

 

 

 

 

 

 

Tonnage (tons)

 

789,331

 

799,811

 

(1.3

)%

 

 

 

 

 

 

 

 

Tons / Day

 

12,629

 

12,695

 

(0.5

)%

 


(1)         Revenue for undelivered freight is deferred for financial statement purposes in accordance with ABF Freight’s revenue recognition policy. Billed revenue used for calculating revenue per hundredweight measurements has not been adjusted for the portion of revenue deferred for financial statement purposes. Billed revenue has been adjusted to exclude intercompany revenue that is not related to freight transportation services.

 

###

 

13