Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - ARCBEST CORP /DE/ | a12-25470_18k.htm |
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
ARKANSAS BEST CORPORATION ANNOUNCES
THIRD QUARTER 2012 RESULTS
· Net income of $6.5 million
· Diluted earnings per share of $0.24
· Panther Expedited Services enhances corporate service opportunities
· ABF labor contract negotiations to begin in December
(Fort Smith, Arkansas, November 1, 2012) — Arkansas Best Corporation (Nasdaq: ABFS) today announced third quarter 2012 net income of $6.5 million, or $0.24 per share, compared with net income of $12.3 million, or $0.46 per share, in the third quarter of 2011.
“Arkansas Best’s results reflect weakness in the economy that contributed to reduced customer business levels and lower profitability at ABF. The slowing business environment also reduced the demand for expedited services at Panther,” said Arkansas Best President and CEO Judy R. McReynolds. “However, at our emerging non-asset-based companies, we are encouraged by the continuation of strong revenue and improving profitability trends in the midst of a tenuous economy.”
ABF Freight System, Inc.
During the 2012 third quarter, business levels at ABF were below the same period last year by 1.4 percent. “This drop reflects the current, soft economic environment as well as the remaining effects of business declines resulting from pricing actions ABF implemented throughout most of last year and into the first quarter of this year,” said Ms. McReynolds. “Industry pricing is stable and rational, consistent with ABF’s third quarter 2012 experience. ABF’s recent yield improvement reflects positive retention of the late June general rate increase and better price levels on contractual agreements that renewed during the quarter. ABF has added new, profitable customer relationships and remains focused on improving existing account pricing and managing its resources to available freight levels.”
Throughout the third quarter, ABF experienced cost pressures whose unfavorable margin effects were amplified by the decline in quarterly revenue. The most significant costs affecting ABF are associated with our union labor contract. In addition, nonunion benefit costs were impacted by previously discussed increases in 2012 pension and retirement costs as well as a greater than expected increase in employee health care costs during the first two months of the quarter. Purchased transportation costs increased due to a greater need for these services, both domestically and internationally, combined with higher rates charged by these service providers. Finally, as previously reported, equipment depreciation costs are higher, on a year-over-year basis, because of the timing and increased cost of new tractor and trailer replacements during the last twelve months.
“For some time now, we have remained diligent in our efforts to address ABF’s high cost structure. This includes numerous internal activities associated with the March 2013 expiration of ABF’s union labor contract,” said Ms. McReynolds. “As previously announced, we expect to begin negotiations with the Teamsters National Freight Industry Negotiating Committee, the negotiating arm of the International Brotherhood of Teamsters, on December 18. ABF’s next labor agreement offers an opportunity for us to work together with the Teamsters and our employees to ensure that ABF is viable in the marketplace and able to grow jobs and effectively compete for additional, profitable business.”
Panther Expedited Services, Inc.
“As we complete the first full quarter of having our premium logistics provider Panther Expedited Services, Inc. as a subsidiary, we are excited about the long-term growth possibilities it offers our company. We have identified opportunities for Panther to work together with our other subsidiaries to better serve customers, with a number of these opportunities already yielding positive benefits. Moving forward, we believe the addition of Panther will be a key element in our development into a comprehensive logistics resource for our customers,” said Ms. McReynolds.
“Third quarter results at Panther were impacted by a slower macroeconomic environment, both domestically and internationally. Though total customer loads increased, the availability of business within the industries Panther serves varied. The reduction in revenue per mile associated with changes in business mix had an unfavorable impact on Panther’s profit margin.”
Other Non-Asset-Based Subsidiaries
Arkansas Best’s emerging non-asset-based subsidiaries experienced revenue growth and operating income improvement throughout the quarter in spite of weaker macroeconomic factors. The freight brokerage and emergency and preventative maintenance segments benefitted from new customer relationships that translated into additional business opportunities, with these segments growing revenues by 63% and 32%, respectively. However, profit margins in these segments continued to be impacted by investments previously made in personnel and information technology. As the benefits of those investments are fully realized, these subsidiaries will provide a platform for enhancing the logistics services Arkansas Best offers its customers. This enables further penetration into the $200 billion portion of the transportation market the company now serves. With the addition of Panther, Arkansas Best’s non-asset-based businesses generated over 20% of third quarter consolidated revenues.
Capital Expenditures Update
Because of reduced business levels and improved network utilization ABF plans to reduce this year’s new tractor replacements by eight percent. This ABF change contributes to Arkansas Best’s expected 2012 net capital expenditure total of approximately $75 million. Earlier in the year the range of expected 2012 net capital expenditures was between $80 and $90 million.
Closing Comments
“The uncertain economic environment has impacted our recent performance and presents challenges in the near term,” said Ms. McReynolds. “However, we believe our company is better equipped for future success because of the combination of logistics services we now offer the marketplace. As we seek to reduce ABF’s cost structure as well as improve the flexibility of its network, the additional resources available within our company provide opportunities for solidifying existing customer relationships and gaining new business.”
Conference Call
Arkansas Best Corporation will host a conference call with company executives to discuss the 2012 third quarter results. The call will be today, Thursday, November 1, 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 December 2, 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 21607032. The conference call and playback can also be accessed, through December 2, 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 |
|
Nine Months Ended |
| ||||||||
|
|
|
September 30 |
|
September 30 |
| ||||||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
|
|
(Unaudited) |
| ||||||||||
|
|
|
($ thousands, except share and per share data) |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
OPERATING REVENUES |
|
$ |
577,546 |
|
$ |
510,887 |
|
$ |
1,528,956 |
|
$ |
1,444,369 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
OPERATING EXPENSES AND COSTS |
|
565,313 |
|
489,769 |
|
1,532,509 |
|
1,436,245 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
OPERATING INCOME (LOSS) |
|
12,233 |
|
21,118 |
|
(3,553 |
) |
8,124 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
| ||||
|
Interest and dividend income |
|
155 |
|
273 |
|
623 |
|
790 |
| ||||
|
Interest expense and other related financing costs |
|
(1,609 |
) |
(973 |
) |
(3,863 |
) |
(2,899 |
) | ||||
|
Other, net |
|
997 |
|
(1,345 |
) |
2,117 |
|
1,544 |
| ||||
|
|
|
(457 |
) |
(2,045 |
) |
(1,123 |
) |
(565 |
) | ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
INCOME (LOSS) BEFORE INCOME TAXES |
|
11,776 |
|
19,073 |
|
(4,676 |
) |
7,559 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
INCOME TAX PROVISION (BENEFIT) |
|
5,258 |
|
6,808 |
|
(4,873 |
) |
2,630 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
NET INCOME |
|
6,518 |
|
12,265 |
|
197 |
|
4,929 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
LESS: NONCONTROLLING INTEREST IN |
|
— |
|
— |
|
— |
|
174 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
NET INCOME ATTRIBUTABLE TO ARKANSAS BEST CORPORATION |
|
$ |
6,518 |
|
$ |
12,265 |
|
$ |
197 |
|
$ |
4,755 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
EARNINGS PER COMMON SHARE(1) |
|
|
|
|
|
|
|
|
| ||||
|
Basic |
|
$ |
0.24 |
|
$ |
0.46 |
|
$ |
— |
|
$ |
0.18 |
|
|
Diluted |
|
$ |
0.24 |
|
$ |
0.46 |
|
$ |
— |
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
AVERAGE COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
| ||||
|
Basic |
|
25,613,315 |
|
25,421,887 |
|
25,535,969 |
|
25,388,174 |
| ||||
|
Diluted |
|
25,613,315 |
|
25,421,887 |
|
25,535,969 |
|
25,388,174 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
CASH DIVIDENDS DECLARED PER COMMON SHARE |
|
$ |
0.03 |
|
$ |
0.03 |
|
$ |
0.09 |
|
$ |
0.09 |
|
(1) The Company uses the two-class method for calculating earnings per share. This method, as calculated below, 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 ATTRIBUTABLE TO ARKANSAS BEST CORPORATION |
|
$ |
6,518 |
|
$ |
12,265 |
|
$ |
197 |
|
$ |
4,755 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
EFFECT OF UNVESTED RESTRICTED STOCK AWARDS(1) |
|
(309 |
) |
(532 |
) |
(113 |
) |
(191 |
) | ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
ADJUSTED NET INCOME FOR CALCULATING EARNINGS PER COMMON SHARE |
|
$ |
6,209 |
|
$ |
11,733 |
|
$ |
84 |
|
$ |
4,564 |
|
ARKANSAS BEST CORPORATION
CONSOLIDATED BALANCE SHEETS
|
|
|
September 30 |
|
December 31 |
| ||
|
|
|
(Unaudited) |
|
Note |
| ||
|
|
|
($ thousands, except share data) |
| ||||
|
ASSETS |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
CURRENT ASSETS |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
71,341 |
|
$ |
141,295 |
|
|
Short-term investments |
|
47,732 |
|
33,960 |
| ||
|
Restricted cash equivalents and short-term investments |
|
9,798 |
|
52,693 |
| ||
|
Accounts receivable, less allowances (2012 – $4,790; 2011 – $5,957) |
|
209,460 |
|
149,665 |
| ||
|
Other accounts receivable, less allowances (2012 – $1,246; 2011 – $1,226) |
|
7,312 |
|
7,538 |
| ||
|
Prepaid expenses |
|
13,808 |
|
11,363 |
| ||
|
Deferred income taxes |
|
35,704 |
|
35,481 |
| ||
|
Prepaid and refundable income taxes |
|
4,285 |
|
6,905 |
| ||
|
Other |
|
8,599 |
|
6,186 |
| ||
|
TOTAL CURRENT ASSETS |
|
408,039 |
|
445,086 |
| ||
|
|
|
|
|
|
| ||
|
PROPERTY, PLANT AND EQUIPMENT |
|
|
|
|
| ||
|
Land and structures |
|
243,395 |
|
242,120 |
| ||
|
Revenue equipment |
|
598,947 |
|
569,303 |
| ||
|
Service, office, and other equipment |
|
116,913 |
|
110,511 |
| ||
|
Software |
|
100,896 |
|
64,229 |
| ||
|
Leasehold improvements |
|
22,943 |
|
21,426 |
| ||
|
|
|
1,083,094 |
|
1,007,589 |
| ||
|
Less allowances for depreciation and amortization |
|
622,888 |
|
592,171 |
| ||
|
|
|
460,206 |
|
415,418 |
| ||
|
|
|
|
|
|
| ||
|
GOODWILL |
|
79,051 |
|
3,660 |
| ||
|
|
|
|
|
|
| ||
|
INTANGIBLE ASSETS, NET |
|
80,604 |
|
2,822 |
| ||
|
|
|
|
|
|
| ||
|
OTHER ASSETS |
|
52,130 |
|
49,234 |
| ||
|
|
|
|
|
|
| ||
|
|
|
$ |
1,080,030 |
|
$ |
916,220 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
CURRENT LIABILITIES |
|
|
|
|
| ||
|
Bank overdraft and drafts payable |
|
$ |
13,028 |
|
$ |
20,836 |
|
|
Accounts payable |
|
90,245 |
|
66,517 |
| ||
|
Income taxes payable |
|
430 |
|
169 |
| ||
|
Accrued expenses |
|
159,378 |
|
151,887 |
| ||
|
Current portion of long-term debt |
|
54,024 |
|
24,262 |
| ||
|
TOTAL CURRENT LIABILITIES |
|
317,105 |
|
263,671 |
| ||
|
|
|
|
|
|
| ||
|
LONG-TERM DEBT, less current portion |
|
132,355 |
|
46,750 |
| ||
|
|
|
|
|
|
| ||
|
PENSION AND POSTRETIREMENT LIABILITIES |
|
93,491 |
|
106,578 |
| ||
|
|
|
|
|
|
| ||
|
OTHER LIABILITIES |
|
12,628 |
|
13,751 |
| ||
|
|
|
|
|
|
| ||
|
DEFERRED INCOME TAXES |
|
53,793 |
|
19,855 |
| ||
|
|
|
|
|
|
| ||
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
|
Common stock, $0.01 par value, authorized 70,000,000 shares; issued 2012: 27,294,724 shares; 2011: 27,099,819 shares |
|
273 |
|
271 |
| ||
|
Additional paid-in-capital |
|
288,468 |
|
286,408 |
| ||
|
Retained earnings |
|
292,893 |
|
295,108 |
| ||
|
Treasury stock, at cost, 1,677,932 shares |
|
(57,770 |
) |
(57,770 |
) | ||
|
Accumulated other comprehensive loss |
|
(53,206 |
) |
(58,402 |
) | ||
|
TOTAL STOCKHOLDERS’ EQUITY |
|
470,658 |
|
465,615 |
| ||
|
|
|
|
|
|
| ||
|
|
|
$ |
1,080,030 |
|
$ |
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
|
|
|
Nine Months Ended |
| ||||
|
|
|
2012 |
|
2011 |
| ||
|
|
|
(Unaudited) |
| ||||
|
|
|
($ thousands) |
| ||||
|
OPERATING ACTIVITIES |
|
|
|
|
| ||
|
Net income |
|
$ |
197 |
|
$ |
4,929 |
|
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
| ||
|
Depreciation and amortization |
|
62,772 |
|
54,201 |
| ||
|
Amortization of intangibles |
|
1,218 |
|
— |
| ||
|
Share-based compensation expense |
|
4,711 |
|
5,116 |
| ||
|
Provision for losses on accounts receivable |
|
1,314 |
|
2,105 |
| ||
|
Deferred income tax benefit |
|
(3,795 |
) |
(6,802 |
) | ||
|
Gain on sale of property and equipment |
|
(582 |
) |
(1,934 |
) | ||
|
Changes in operating assets and liabilities: |
|
|
|
|
| ||
|
Receivables |
|
(28,956 |
) |
(20,244 |
) | ||
|
Prepaid expenses |
|
2,940 |
|
1,144 |
| ||
|
Other assets |
|
(591 |
) |
2,470 |
| ||
|
Income taxes |
|
938 |
|
8,457 |
| ||
|
Accounts payable, accrued expenses, and other liabilities(1) |
|
7,942 |
|
22,836 |
| ||
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
48,108 |
|
72,278 |
| ||
|
|
|
|
|
|
| ||
|
INVESTING ACTIVITIES |
|
|
|
|
| ||
|
Purchases of property, plant and equipment, net of financings |
|
(31,923 |
) |
(32,127 |
) | ||
|
Proceeds from sale of property and equipment |
|
5,126 |
|
5,678 |
| ||
|
Purchases of short-term investments |
|
(38,708 |
) |
(27,930 |
) | ||
|
Proceeds from sale of short-term investments |
|
25,018 |
|
36,175 |
| ||
|
Business acquisition, net of cash acquired |
|
(180,793 |
) |
— |
| ||
|
Capitalization of internally developed software and other |
|
(5,379 |
) |
(3,735 |
) | ||
|
NET CASH USED IN INVESTING ACTIVITIES |
|
(226,659 |
) |
(21,939 |
) | ||
|
|
|
|
|
|
| ||
|
FINANCING ACTIVITIES |
|
|
|
|
| ||
|
Borrowings under credit facilities |
|
100,000 |
|
— |
| ||
|
Payments on long-term debt |
|
(22,606 |
) |
(10,886 |
) | ||
|
Acquisition of noncontrolling interest |
|
— |
|
(4,084 |
) | ||
|
Net change in bank overdraft and other |
|
(7,808 |
) |
1,608 |
| ||
|
Change in restricted cash equivalents and short-term investments |
|
42,895 |
|
(662 |
) | ||
|
Deferred financing costs |
|
(1,472 |
) |
(174 |
) | ||
|
Payment of common stock dividends |
|
(2,412 |
) |
(2,383 |
) | ||
|
Proceeds from the exercise of stock options |
|
— |
|
763 |
| ||
|
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
|
108,597 |
|
(15,818 |
) | ||
|
|
|
|
|
|
| ||
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
(69,954 |
) |
34,521 |
| ||
|
Cash and cash equivalents at beginning of period |
|
141,295 |
|
102,578 |
| ||
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
$ |
71,341 |
|
$ |
137,099 |
|
|
|
|
|
|
|
| ||
|
NONCASH INVESTING ACTIVITIES |
|
|
|
|
| ||
|
Accruals for equipment received |
|
$ |
34 |
|
$ |
5,117 |
|
|
Equipment financed under capital leases and notes payable |
|
$ |
37,973 |
|
$ |
21,307 |
|
(1) Includes $18.0 million in contributions to the Company’s nonunion pension plan for 2012.
ARKANSAS BEST CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
|
Three Months Ended |
|
Nine Months Ended |
| ||||||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
|
|
(Unaudited) |
| ||||||||||
|
|
|
($ thousands, except per share data) |
| ||||||||||
|
ARKANSAS BEST CORPORATION — CONSOLIDATED |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net Income Attributable to Arkansas Best Corporation |
|
|
|
|
|
|
|
|
| ||||
|
Amounts on a GAAP basis |
|
$ |
6,518 |
|
$ |
12,265 |
|
$ |
197 |
|
$ |
4,755 |
|
|
Tax benefits(1) |
|
— |
|
— |
|
(3,333 |
) |
— |
| ||||
|
Transaction costs, after-tax(2) |
|
— |
|
— |
|
1,294 |
|
— |
| ||||
|
Non-GAAP amounts |
|
$ |
6,518 |
|
$ |
12,265 |
|
$ |
(1,842 |
) |
$ |
4,755 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Diluted Earnings Per Share |
|
|
|
|
|
|
|
|
| ||||
|
Amounts on a GAAP basis |
|
$ |
0.24 |
|
$ |
0.46 |
|
$ |
— |
|
$ |
0.18 |
|
|
Tax benefits(1) |
|
— |
|
— |
|
(0.13 |
) |
— |
| ||||
|
Transaction costs, after-tax(2) |
|
— |
|
— |
|
0.05 |
|
— |
| ||||
|
Non-GAAP amounts |
|
$ |
0.24 |
|
$ |
0.46 |
|
$ |
(0.08 |
) |
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
ARKANSAS BEST CORPORATION — CONSOLIDATED |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Earnings Before Interest, Taxes, Depreciation, and Amortization |
|
|
|
|
|
|
|
|
| ||||
|
Net income attributable to Arkansas Best Corporation |
|
$ |
6,518 |
|
$ |
12,265 |
|
$ |
197 |
|
$ |
4,755 |
|
|
Interest expense |
|
1,609 |
|
973 |
|
3,863 |
|
2,899 |
| ||||
|
Income taxes (benefits) |
|
5,258 |
|
6,808 |
|
(4,873 |
) |
2,630 |
| ||||
|
Depreciation and amortization |
|
23,820 |
|
18,230 |
|
63,990 |
|
54,201 |
| ||||
|
Amortization of share based compensation |
|
1,369 |
|
1,417 |
|
4,711 |
|
5,116 |
| ||||
|
Amortization of actuarial losses |
|
2,846 |
|
1,840 |
|
8,539 |
|
5,520 |
| ||||
|
EBITDA |
|
41,420 |
|
41,533 |
|
76,427 |
|
75,121 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Transaction costs, pre-tax(2) |
|
— |
|
— |
|
2,129 |
|
— |
| ||||
|
Adjusted EBITDA |
|
$ |
41,420 |
|
$ |
41,533 |
|
$ |
78,556 |
|
$ |
75,121 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
PREMIUM LOGISTICS & EXPEDITED FREIGHT SERVICES(3) |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Earnings Before Interest, Taxes, Depreciation, and Amortization |
|
|
|
|
|
|
|
|
| ||||
|
Operating income |
|
$ |
804 |
|
$ |
— |
|
$ |
1,284 |
|
$ |
— |
|
|
Depreciation and amortization |
|
2,491 |
|
— |
|
2,965 |
|
— |
| ||||
|
EBITDA |
|
$ |
3,295 |
|
$ |
— |
|
$ |
4,249 |
|
$ |
— |
|
|
(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 September 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.
ARKANSAS BEST CORPORATION
FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS
|
|
|
Three Months Ended |
|
Nine Months Ended |
| ||||||||||||||||
|
|
|
2012 |
|
|
|
2011 |
|
|
|
2012 |
|
|
|
2011 |
|
|
| ||||
|
|
|
(Unaudited) |
| ||||||||||||||||||
|
OPERATING REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Freight Transportation(1) |
|
$ |
455,997 |
|
|
|
$ |
459,325 |
|
|
|
$ |
1,302,292 |
|
|
|
$ |
1,308,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium Logistics & Expedited Freight Services(2) |
|
60,445 |
|
|
|
— |
|
|
|
71,280 |
|
|
|
— |
|
|
| ||||
|
Truck Brokerage & Management(3) |
|
11,395 |
|
|
|
6,977 |
|
|
|
29,455 |
|
|
|
18,488 |
|
|
| ||||
|
Emergency and Preventative Maintenance(4) |
|
32,785 |
|
|
|
24,801 |
|
|
|
85,264 |
|
|
|
70,419 |
|
|
| ||||
|
Household Goods Moving Services(5) |
|
25,702 |
|
|
|
27,768 |
|
|
|
61,233 |
|
|
|
68,879 |
|
|
| ||||
|
Total non-asset-based segments |
|
130,327 |
|
|
|
59,546 |
|
|
|
247,232 |
|
|
|
157,786 |
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Other revenues and eliminations |
|
(8,778 |
) |
|
|
(7,984 |
) |
|
|
(20,568 |
) |
|
|
(22,140 |
) |
|
| ||||
|
Total consolidated operating revenues |
|
$ |
577,546 |
|
|
|
$ |
510,887 |
|
|
|
$ |
1,528,956 |
|
|
|
$ |
1,444,369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
OPERATING EXPENSES AND COSTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Freight Transportation(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Salaries, wages, and benefits |
|
$ |
272,680 |
|
59.8 |
% |
$ |
271,775 |
|
59.2 |
% |
$ |
807,685 |
|
62.0 |
% |
$ |
807,140 |
|
61.7 |
% |
|
Fuel, supplies, and expenses |
|
83,989 |
|
18.4 |
|
86,260 |
|
18.8 |
|
247,646 |
|
19.0 |
|
253,387 |
|
19.4 |
| ||||
|
Operating taxes and licenses |
|
10,891 |
|
2.4 |
|
11,343 |
|
2.5 |
|
32,514 |
|
2.5 |
|
34,336 |
|
2.6 |
| ||||
|
Insurance |
|
4,944 |
|
1.1 |
|
5,139 |
|
1.1 |
|
15,415 |
|
1.2 |
|
18,130 |
|
1.4 |
| ||||
|
Communications and utilities |
|
3,816 |
|
0.8 |
|
3,771 |
|
0.8 |
|
11,084 |
|
0.9 |
|
11,468 |
|
0.9 |
| ||||
|
Depreciation and amortization |
|
20,381 |
|
4.5 |
|
17,502 |
|
3.8 |
|
58,440 |
|
4.5 |
|
52,044 |
|
4.0 |
| ||||
|
Rents and purchased transportation |
|
49,061 |
|
10.8 |
|
43,871 |
|
9.6 |
|
130,105 |
|
10.0 |
|
125,396 |
|
9.6 |
| ||||
|
Gain on sale of property and equipment |
|
(65 |
) |
— |
|
(1,060 |
) |
(0.2 |
) |
(578 |
) |
— |
|
(1,943 |
) |
(0.1 |
) | ||||
|
Other |
|
1,858 |
|
0.3 |
|
2,995 |
|
0.5 |
|
5,839 |
|
0.3 |
|
6,496 |
|
0.3 |
| ||||
|
|
|
447,555 |
|
98.1 |
% |
441,596 |
|
96.1 |
% |
1,308,150 |
|
100.4 |
% |
1,306,454 |
|
99.8 |
% | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Premium Logistics & Expedited Freight Services(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Purchased transportation |
|
$ |
46,260 |
|
76.5 |
% |
$ |
— |
|
|
|
$ |
54,507 |
|
76.5 |
% |
$ |
— |
|
|
|
|
Depreciation and amortization |
|
2,491 |
|
4.1 |
|
— |
|
|
|
2,965 |
|
4.2 |
|
— |
|
|
| ||||
|
Salaries, benefits, insurance, and other |
|
10,890 |
|
18.1 |
|
— |
|
|
|
12,524 |
|
17.5 |
|
— |
|
|
| ||||
|
|
|
59,641 |
|
98.7 |
% |
— |
|
|
|
69,996 |
|
98.2 |
% |
— |
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Truck Brokerage & Management(3) |
|
10,689 |
|
|
|
6,364 |
|
|
|
27,700 |
|
|
|
16,922 |
|
|
| ||||
|
Emergency and Preventative Maintenance(4) |
|
31,913 |
|
|
|
23,795 |
|
|
|
83,834 |
|
|
|
67,574 |
|
|
| ||||
|
Household Goods Moving Services(5) |
|
24,277 |
|
|
|
26,086 |
|
|
|
60,435 |
|
|
|
66,113 |
|
|
| ||||
|
Total non-asset-based segments |
|
126,520 |
|
|
|
56,245 |
|
|
|
241,965 |
|
|
|
150,609 |
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Other expenses and eliminations |
|
(8,762 |
) |
|
|
(8,072 |
) |
|
|
(17,606 |
) |
|
|
(20,818 |
) |
|
| ||||
|
Total consolidated operating expenses and costs |
|
$ |
565,313 |
|
|
|
$ |
489,769 |
|
|
|
$ |
1,532,509 |
|
|
|
$ |
1,436,245 |
|
|
|
ARKANSAS BEST CORPORATION
FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS – Continued
|
|
|
Three Months Ended |
|
Nine Months Ended |
| ||||||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
|
|
(Unaudited) |
| ||||||||||
|
OPERATING INCOME (LOSS) |
|
|
|
|
|
|
|
|
| ||||
|
Freight Transportation(1) |
|
$ |
8,442 |
|
$ |
17,729 |
|
$ |
(5,858 |
) |
$ |
2,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium Logistics & Expedited Freight Services(2) |
|
804 |
|
— |
|
1,284 |
|
— |
| ||||
|
Truck Brokerage & Management(3) |
|
706 |
|
613 |
|
1,755 |
|
1,566 |
| ||||
|
Emergency and Preventative Maintenance(4) |
|
872 |
|
1,006 |
|
1,430 |
|
2,845 |
| ||||
|
Household Goods Moving Services(5) |
|
1,425 |
|
1,682 |
|
798 |
|
2,766 |
| ||||
|
Total non-asset-based segments |
|
3,807 |
|
3,301 |
|
5,267 |
|
7,177 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Other income (loss) and eliminations |
|
(16 |
) |
88 |
|
(2,962 |
) |
(1,322 |
) | ||||
|
Total consolidated operating income (loss) |
|
$ |
12,233 |
|
$ |
21,118 |
|
$ |
(3,553 |
) |
$ |
8,124 |
|
|
(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 September 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 |
|
Nine Months Ended |
| ||||||||||||
|
|
|
September 30 |
|
September 30 |
| ||||||||||||
|
|
|
2012 |
|
2011 |
|
% Change |
|
2012 |
|
2011 |
|
% Change |
| ||||
|
|
|
(Unaudited) |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Freight Transportation (1) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Workdays |
|
63.0 |
|
64.0 |
|
|
|
190.5 |
|
191.0 |
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Billed Revenue (2) / CWT |
|
$ |
28.60 |
|
$ |
28.17 |
|
1.5 |
% |
$ |
28.04 |
|
$ |
26.52 |
|
5.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Billed Revenue (2) / Shipment |
|
$ |
393.47 |
|
$ |
379.49 |
|
3.7 |
% |
$ |
379.88 |
|
$ |
359.32 |
|
5.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Shipments |
|
1,141,325 |
|
1,200,461 |
|
(4.9 |
)% |
3,410,447 |
|
3,643,511 |
|
(6.4 |
)% | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Shipments / Day |
|
18,116 |
|
18,757 |
|
(3.4 |
)% |
17,903 |
|
19,076 |
|
(6.2 |
)% | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Tonnage (tons) |
|
785,172 |
|
808,660 |
|
(2.9 |
)% |
2,310,467 |
|
2,467,866 |
|
(6.4 |
)% | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Tons / Day |
|
12,463 |
|
12,635 |
|
(1.4 |
)% |
12,128 |
|
12,921 |
|
(6.1 |
)% | ||||
|
(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