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8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - ARCBEST CORP /DE/a13-3950_18k.htm

EXHIBIT 99.1

 

FOR IMMEDIATE RELEASE

 

ARKANSAS BEST CORPORATION ANNOUNCES

FOURTH QUARTER 2012 RESULTS AND FULL YEAR 2012 RESULTS

 

·                  Fourth quarter 2012 net loss of $7.9 million, or $0.31 per share, including $2.4 million, or $0.09 per share, related to an increase in workers’ compensation expense

·                  Emerging, non-asset-based businesses profitable on gains that produced record fourth quarter revenues

·                  ABF contract negotiations underway with goal to cut costs and restore profitability

 

(Fort Smith, Arkansas, January 30, 2013) — Arkansas Best Corporation (Nasdaq: ABFS) today announced unaudited results for the fourth quarter and full year 2012. Arkansas Best had a fourth quarter 2012 net loss, as generally flat, year-over-year revenue, tonnage and pricing at ABF Freight System, Inc. were offset by higher costs. For the same period, Arkansas Best’s emerging, non-asset-based businesses were profitable and posted higher revenues.  Arkansas Best’s fourth quarter 2012 revenue was $537.0 million compared to revenue of $463.2 million in the fourth quarter of 2011.

 

Following the acquisition of Panther Expedited Services, Inc. in June 2012, Arkansas Best saw yearly revenue top $2 billion for the first time in its history. In addition to Panther, Arkansas Best’s emerging, non-asset-based businesses that contributed to 2012’s revenue growth are in freight brokerage, and vehicle roadside and preventative maintenance.

 

Arkansas Best’s fourth quarter 2012 net loss was $7.9 million, or $0.31 per share, compared to fourth quarter 2011 net income of $1.4 million, or $0.05 per share. This quarter’s results include an after-tax charge of $2.4 million, or $0.09 per share, related to an actuarial adjustment to ABF’s workers’ compensation expense.  The liabilities associated with Arkansas Best’s self-insured portion of these costs are estimates based on a number of variables and assumptions.  During the fourth quarter, information indicating that many of these claims had a

 



 

longer duration and higher payments than initially projected resulted in a thorough actuarial review and in this adjustment.

 

For full year 2012, Arkansas Best had a net loss of $7.7 million, or $0.31 per share, including the previously discussed workers’ compensation expense increase.  This compares to net income of $6.2 million, or $0.23 per share, in 2011.  Arkansas Best’s full year 2012 revenue was $2.1 billion compared to revenue of $1.9 billion in 2011.

 

“We are pleased with revenue growth and improving profitability at our emerging businesses as they added up to more than 20 percent of our total company fourth quarter revenue,” said Arkansas Best President and Chief Executive Officer Judy R. McReynolds. “Expanding our portfolio of expedited and premium logistics services was a major initiative in 2012 as our customers’ supply chains grow ever more complex.  We are encouraged by the trends we have seen in these businesses. Among other things, we added key sales and customer service personnel and invested in service-enhancing technologies, all of which were well-received in the marketplace.”

 

McReynolds added that the full-year loss at ABF resulting in a 2012 operating ratio above 100, following a slightly profitable 2011, was troubling as total revenues remained about even with annual yield improvement offset by lower business levels. “We are focused on a return to profitability at ABF by substantially lowering our costs in the next labor contract through negotiations that are now underway. ABF’s management team is hopeful it will reach an agreement with the Teamsters that allows us to preserve good-paying jobs and protect our employees’ retirements through a lower cost structure that truly reflects the competitive nature of today’s LTL marketplace.”

 

In late December, ABF exchanged initial contract proposals with the Teamsters National Freight Industry Negotiating Committee. ABF seeks a national contract that eliminates the use of supplements and provides uniform terms for all of its local operations throughout the country. While previous versions of the National Master Freight Agreement (“NMFA”) once covered more than 500,000 Teamsters, today, ABF is negotiating for its own contract that will cover 7,500 union employees. ABF is the only remaining union LTL carrier still paying full NMFA rates. Without significant reduction to this burdensome cost structure, ABF has informed Teamster leadership that extensive network changes will result, including closure of terminals and distribution centers.

 



 

ABF Freight System, Inc.

 

ABF’s fourth quarter 2012 total daily tonnage and pricing statistics saw little change compared to last year’s fourth quarter, leading to flat revenue as shippers maintained low inventory levels. At the same time, costs rose due to union labor contract wage and benefit increases that occurred earlier in the year and because of a lack of operational flexibility. In addition, higher depreciation costs associated with more expensive capital equipment and higher workers’ compensation expense contributed to ABF’s losses.

 

In late October, the impact of Hurricane Sandy resulted in lost revenue and profit opportunities along with returned shipments that had to be re-handled and re-delivered as customers closed for business in the days following the storm.  This resulted in estimated lost revenue of $2 – $2.5 million, an increase of about 0.4 percentage points in ABF’s operating ratio and a reduction of $0.04 per share on Arkansas Best’s fourth quarter results.

 

During the fourth quarter, changes in ABF’s freight profile and account mix caused total pricing statistics to be the same as last year.  However, when adjusted for fuel surcharge and these profile and account changes, ABF’s fourth quarter pricing on its traditional LTL business increased more than 2.5 percent versus last year.  Throughout 2012, pricing among carriers in the LTL industry was consistent and stable.  For the full year, ABF made steady progress in improving its account yield levels by 4.4 percent compared to 2011.”

 

ABF Results of Operations

 

Fourth Quarter 2012

 

·                  Revenue of $422.8 million compared to $422.1 million in fourth quarter 2011, a slight per day decrease

·                  Tonnage per day increase of 0.4% versus fourth quarter 2011

·                  Total billed revenue per hundredweight of $28.02, essentially the same as the $28.01 in fourth quarter 2011

·                  Operating loss of $13.6 million, including $3.8 million related to an increase in workers’ compensation expense, compared to operating income of $1.3 million in fourth quarter 2011

·                  Operating ratio of 103.2%, including 0.9% related to an increase in workers’ compensation expense, compared to an operating ratio of 99.7% in fourth quarter 2011

 



 

Full Year 2012

 

·                  Revenue of $1.73 billion, the same as in 2011

·                  Tonnage per day decrease of 4.6% versus 2011

·                  Total billed revenue per hundredweight of $28.03 compared to $26.86 in 2011, an increase of 4.4%

·                  Operating loss of $19.4 million, including $3.8 million related to an increase in workers’ compensation expense, compared to 2011 operating income of $3.6 million

·                  Operating ratio of 101.1%, including 0.2% related to an increase in workers’ compensation expense, compared to an operating ratio of 99.8% in 2011

 

Emerging Businesses

 

Panther Expedited Services, Inc. is an important component of Arkansas Best’s strategic goal of being an integrated logistics solutions provider. During the fourth quarter, Panther’s revenue increased to record fourth quarter levels, and cash flow generation remained strong despite mixed results in the various market segments.  Particularly in the government business segment, Panther was affected by a lack of commitment of many of its customers to invest in their businesses due to uncertainty in the economy.  A slowdown in industrial production and tighter inventory management also resulted in fewer available manufacturing-related shipments.

 

Arkansas Best’s other emerging non-asset-based subsidiaries experienced revenue growth and operating income improvement throughout the quarter despite a challenging macroeconomic environment. The freight brokerage segment grew revenue by 91%, achieving the highest quarterly revenue in its history.  The emergency and preventative maintenance segment achieved revenue growth of 39%, producing the second highest quarterly revenue in its history.  Fourth quarter profits in these two operating segments increased nearly two to three times compared to the same period last year.  The benefits of investments previously made in sales, customer service, and information technology at these companies are contributing to increased revenues and improving profitability.

 

Capital Expenditures

 

In 2012, ABF’s total net capital expenditures equated to $69 million, including approximately $49 million of revenue equipment.  Depreciation and amortization costs equaled $85 million.

 



 

Because ABF’s union labor negotiations are in progress and planning for 2013 is highly dependent on the outcome of contract negotiations, ABF’s 2013 net capital expenditures and depreciation and amortization costs have not been estimated.  In the next few months, as more clarity is gained on potential costs savings associated with ABF’s new labor contract, estimates on capital expenditures and depreciation will be provided.

 

Closing Comments

 

“There continue to be many questions about the economy and its impact on the transport markets in which we compete.  Most economists are predicting a low level of growth in 2013,” said McReynolds. “Looking ahead, we recognize that ABF and all of our other subsidiaries must generate profits regardless of the economic climate.  We are hopeful that our ongoing ABF contract negotiations will result in the right cost structure and greater operational flexibility, but our game plan for success at Arkansas Best takes into account all potential outcomes. Thanks to our expanding portfolio of diverse companies that are better able to meet customers’ needs in a changing marketplace, we will continue to execute on our overarching goal to keep Arkansas Best firmly on a path toward financial success that rewards our shareholders.”

 

Conference Call

 

Arkansas Best Corporation will host a conference call with company executives to discuss the 2012 fourth quarter and full year results.  The call will be today, Wednesday, January 30, 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 March 2, 2013.  To listen to the playback, dial (800) 633-8284 or (402) 977-9140 (for international callers).  The conference call ID for the playback is 21643591.  The conference call and playback can also be accessed, through March 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
December 31

 

Year Ended
December 31

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

(Unaudited)

 

 

 

($ thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

OPERATING REVENUES

 

$

537,042

 

$

463,241

 

$

2,065,999

 

$

1,907,609

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES AND COSTS

 

548,058

 

461,606

 

2,080,567

 

1,897,850

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

(11,016

)

1,635

 

(14,568

)

9,759

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

185

 

286

 

808

 

1,069

 

Interest expense and other related financing costs

 

(1,409

)

(1,054

)

(5,273

)

(3,953

)

Other, net

 

(76

)

1,067

 

2,041

 

2,618

 

 

 

(1,300

)

299

 

(2,424

)

(266

)

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) BEFORE INCOME TAXES

 

(12,316

)

1,934

 

(16,992

)

9,493

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX PROVISION (BENEFIT)

 

(4,387

)

530

 

(9,260

)

3,160

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

(7,929

)

1,404

 

(7,732

)

6,333

 

 

 

 

 

 

 

 

 

 

 

LESS:            NONCONTROLLING INTEREST IN NET INCOME OF SUBSIDIARY

 

 

 

 

174

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO ARKANSAS BEST CORPORATION

 

$

(7,929

)

$

1,404

 

$

(7,732

)

$

6,159

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER COMMON SHARE(1)

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.31

)

$

0.05

 

$

(0.31

)

$

0.23

 

Diluted

 

$

(0.31

)

$

0.05

 

$

(0.31

)

$

0.23

 

 

 

 

 

 

 

 

 

 

 

AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

Basic

 

25,629,309

 

25,421,887

 

25,564,752

 

25,403,073

 

Diluted

 

25,629,309

 

25,421,887

 

25,564,752

 

25,403,073

 

 

 

 

 

 

 

 

 

 

 

CASH DIVIDENDS DECLARED PER COMMON SHARE

 

$

0.03

 

$

0.03

 

$

0.12

 

$

0.12

 

 


(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 (LOSS) ATTRIBUTABLE TO ARKANSAS BEST CORPORATION

 

$

(7,929

)

$

1,404

 

$

(7,732

)

$

6,159

 

 

 

 

 

 

 

 

 

 

 

EFFECT OF UNVESTED RESTRICTED STOCK AWARDS(1)

 

(38

)

(59

)

(149

)

(249

)

 

 

 

 

 

 

 

 

 

 

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

 

$

(7,967

)

$

1,345

 

$

(7,881

)

$

5,910

 

 



 

ARKANSAS BEST CORPORATION

CONSOLIDATED BALANCE SHEETS

 

 

 

December 31
2012

 

December 31
2011

 

 

 

(Unaudited)

 

Note

 

 

 

($ thousands, except share data)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

90,702

 

$

141,295

 

Short-term investments

 

29,054

 

33,960

 

Restricted cash equivalents and short-term investments

 

9,658

 

52,693

 

Accounts receivable, less allowances (2012 — $5,249; 2011 — $5,957)

 

180,631

 

149,665

 

Other accounts receivable, less allowances (2012 — $1,334; 2011 — $1,226)

 

6,539

 

7,538

 

Prepaid expenses

 

17,355

 

11,363

 

Deferred income taxes

 

39,245

 

35,481

 

Prepaid and refundable income taxes

 

5,681

 

6,905

 

Other

 

7,185

 

6,186

 

TOTAL CURRENT ASSETS

 

386,050

 

445,086

 

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT

 

 

 

 

 

Land and structures

 

243,699

 

242,120

 

Revenue equipment

 

589,729

 

569,303

 

Service, office, and other equipment

 

119,456

 

110,511

 

Software

 

103,164

 

64,229

 

Leasehold improvements

 

23,272

 

21,426

 

 

 

1,079,320

 

1,007,589

 

Less allowances for depreciation and amortization

 

635,292

 

592,171

 

 

 

444,028

 

415,418

 

 

 

 

 

 

 

GOODWILL

 

73,189

 

3,660

 

 

 

 

 

 

 

INTANGIBLE ASSETS, NET

 

79,561

 

2,822

 

 

 

 

 

 

 

OTHER ASSETS

 

51,634

 

49,234

 

 

 

 

 

 

 

 

 

$

1,034,462

 

$

916,220

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Bank overdraft and drafts payable

 

$

13,645

 

$

20,836

 

Accounts payable

 

84,292

 

66,517

 

Income taxes payable

 

59

 

169

 

Accrued expenses

 

158,668

 

151,887

 

Current portion of long-term debt

 

43,044

 

24,262

 

TOTAL CURRENT LIABILITIES

 

299,708

 

263,671

 

 

 

 

 

 

 

LONG-TERM DEBT, less current portion

 

112,941

 

46,750

 

 

 

 

 

 

 

PENSION AND POSTRETIREMENT LIABILITIES

 

104,673

 

106,578

 

 

 

 

 

 

 

OTHER LIABILITIES

 

12,832

 

13,751

 

 

 

 

 

 

 

DEFERRED INCOME TAXES

 

45,309

 

19,855

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock, $0.01 par value, authorized 70,000,000 shares; issued 2012: 27,296,285 shares; 2011: 27,099,819 shares

 

273

 

271

 

Additional paid-in-capital

 

289,711

 

286,408

 

Retained earnings

 

284,157

 

295,108

 

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

 

(57,770

)

(57,770

)

Accumulated other comprehensive loss

 

(57,372

)

(58,402

)

TOTAL STOCKHOLDERS’ EQUITY

 

458,999

 

465,615

 

 

 

 

 

 

 

 

 

$

1,034,462

 

$

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

 

 

 

Year Ended
December 31

 

 

 

2012

 

2011

 

 

 

(Unaudited)

 

 

 

($ thousands)

 

OPERATING ACTIVITIES

 

 

 

 

 

Net income (loss)

 

$

(7,732

)

$

6,333

 

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

 

 

 

 

 

Depreciation and amortization

 

85,493

 

73,742

 

Amortization of intangibles

 

2,261

 

 

Pension settlement expense

 

 

1,125

 

Share-based compensation expense

 

6,068

 

6,450

 

Provision for losses on accounts receivable

 

1,524

 

2,394

 

Deferred income tax provision (benefit)

 

(10,359

)

3,056

 

Gain on sale of property and equipment

 

(735

)

(2,360

)

Changes in operating assets and liabilities:

 

 

 

 

 

Receivables

 

508

 

(6,067

)

Prepaid expenses

 

305

 

(1,105

)

Other assets

 

961

 

(635

)

Income taxes

 

2,630

 

(776

)

Accounts payable, accrued expenses, and other liabilities(1)

 

3,610

 

18,695

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

84,534

 

100,852

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

Purchases of property, plant and equipment, net of financings

 

(37,278

)

(53,227

)

Proceeds from sale of property and equipment

 

6,397

 

7,062

 

Purchases of short-term investments

 

(55,858

)

(59,718

)

Proceeds from sale of short-term investments

 

60,730

 

64,995

 

Business acquisition, net of cash acquired

 

(180,039

)

 

Capitalization of internally developed software and other

 

(7,218

)

(5,295

)

NET CASH USED IN INVESTING ACTIVITIES

 

(213,266

)

(46,183

)

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

Proceeds from issuance of long-term debt

 

100,000

 

 

Repayments on long-term debt

 

(53,000

)

(16,056

)

Acquisition of noncontrolling interest

 

 

(4,084

)

Net change in bank overdraft and other

 

(7,190

)

7,811

 

Change in restricted cash equivalents and short-term investments

 

43,035

 

(1,032

)

Deferred financing costs

 

(1,487

)

(174

)

Payment of common stock dividends

 

(3,219

)

(3,180

)

Proceeds from the exercise of stock options

 

 

763

 

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

 

78,139

 

(15,952

)

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

(50,593

)

38,717

 

Cash and cash equivalents at beginning of period

 

141,295

 

102,578

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

90,702

 

$

141,295

 

 

 

 

 

 

 

NONCASH INVESTING ACTIVITIES

 

 

 

 

 

Accruals for equipment received

 

$

301

 

$

338

 

Equipment financed under capital leases and notes payable

 

$

37,973

 

$

30,410

 

 


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

 



 

ARKANSAS BEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

 

 

Three Months Ended
December 31

 

Year Ended
December 31

 

 

 

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

 

$

(7,929

)

$

1,404

 

$

(7,732

)

$

6,159

 

Tax benefits(1)

 

 

 

(3,333

)

 

Transaction costs, after-tax(2)

 

 

 

1,294

 

 

Non-GAAP amounts

 

$

(7,929

)

$

1,404

 

$

(9,771

)

$

6,159

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings (Loss) Per Share

 

 

 

 

 

 

 

 

 

Amounts on a GAAP basis

 

$

(0.31

)

$

0.05

 

$

(0.31

)

$

0.23

 

Tax benefits(1)

 

 

 

(0.13

)

 

Transaction costs, after-tax(2)

 

 

 

0.05

 

 

Non-GAAP amounts

 

$

(0.31

)

$

0.05

 

$

(0.39

)

$

0.23

 

 

 

 

 

 

 

 

 

 

 

Earnings Before Interest, Taxes, Depreciation, and Amortization

 

 

 

 

 

 

 

 

 

Net income attributable to Arkansas Best Corporation

 

$

(7,929

)

$

1,404

 

$

(7,732

)

$

6,159

 

Interest expense

 

1,409

 

1,054

 

5,273

 

3,953

 

Income taxes (benefits)

 

(4,387

)

530

 

(9,260

)

3,160

 

Depreciation and amortization

 

23,764

 

19,541

 

87,754

 

73,742

 

Amortization of share based compensation

 

1,357

 

1,334

 

6,068

 

6,450

 

Amortization of actuarial losses

 

2,846

 

1,841

 

11,385

 

7,361

 

EBITDA

 

17,060

 

25,704

 

93,488

 

100,825

 

Transaction costs, pre-tax(2)

 

 

 

2,129

 

 

Adjusted EBITDA

 

$

17,060

 

$

25,704

 

$

95,617

 

$

100,825

 

 

 

 

 

 

 

 

 

 

 

PREMIUM LOGISTICS & EXPEDITED FREIGHT SERVICES(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Before Interest, Taxes, Depreciation, and Amortization

 

 

 

 

 

 

 

 

 

Operating income

 

$

1,118

 

$

 

$

2,402

 

$

 

Depreciation and amortization

 

2,473

 

 

5,438

 

 

EBITDA

 

$

3,591

 

$

 

$

7,840

 

$

 

 


(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 December 31, 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
December 31

 

Year Ended
December 31

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

(Unaudited)
($ thousands)

 

OPERATING REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Freight Transportation(1)

 

$

422,842

 

 

 

$

422,051

 

 

 

$

1,725,134

 

 

 

$

1,730,773

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium Logistics & Expedited Freight Services(2)

 

61,046

 

 

 

 

 

 

132,326

 

 

 

 

 

 

Truck Brokerage & Management(3)

 

13,255

 

 

 

6,942

 

 

 

42,710

 

 

 

25,429

 

 

 

Emergency and Preventative Maintenance(4)

 

30,704

 

 

 

22,136

 

 

 

115,968

 

 

 

92,554

 

 

 

Household Goods Moving Services(5)

 

16,377

 

 

 

16,732

 

 

 

77,619

 

 

 

85,611

 

 

 

Total non-asset-based segments

 

121,382

 

 

 

45,810

 

 

 

368,623

 

 

 

203,594

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues and eliminations

 

(7,182

)

 

 

(4,620

)

 

 

(27,758

)

 

 

(26,758

)

 

 

Total consolidated operating revenues

 

$

537,042

 

 

 

$

463,241

 

 

 

$

2,065,999

 

 

 

$

1,907,609

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES AND COSTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Freight Transportation(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages, and benefits

 

$

265,520

 

62.8

%

$

254,073

 

60.2

%

$

1,073,205

 

62.2

%

$

1,061,213

 

61.3

%

Fuel, supplies, and expenses

 

82,417

 

19.5

 

80,391

 

19.0

 

330,063

 

19.1

 

333,779

 

19.3

 

Operating taxes and licenses

 

10,823

 

2.6

 

11,133

 

2.6

 

43,337

 

2.5

 

45,469

 

2.6

 

Insurance

 

5,336

 

1.3

 

6,360

 

1.5

 

20,751

 

1.2

 

24,490

 

1.4

 

Communications and utilities

 

3,649

 

0.9

 

3,649

 

0.9

 

14,733

 

0.9

 

15,118

 

0.9

 

Depreciation and amortization

 

20,308

 

4.8

 

18,765

 

4.4

 

78,748

 

4.6

 

70,810

 

4.1

 

Rents and purchased transportation

 

46,873

 

11.1

 

43,816

 

10.4

 

176,977

 

10.3

 

169,212

 

9.8

 

Gain on sale of property and equipment

 

(132

)

 

(426

)

(0.1

)

(711

)

 

(2,370

)

(0.1

)

Pension settlement expense

 

 

 

1,125

 

0.3

 

 

 

1,125

 

0.1

 

Other

 

1,600

 

0.2

 

1,825

 

0.5

 

7,441

 

0.3

 

8,318

 

0.4

 

 

 

436,394

 

103.2

%

420,711

 

99.7

%

1,744,544

 

101.1

%

1,727,164

 

99.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium Logistics & Expedited Freight Services(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

$

47,052

 

77.1

%

$

 

 

$

101,559

 

76.7

%

$

 

 

Depreciation and amortization

 

2,473

 

4.1

 

 

 

5,438

 

4.1

 

 

 

Salaries, benefits, insurance, and other

 

10,403

 

17.0

 

 

 

22,927

 

17.4

 

 

 

 

 

59,928

 

98.2

%

 

 

129,924

 

98.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Truck Brokerage & Management(3)

 

12,386

 

 

 

6,619

 

 

 

40,087

 

 

 

23,539

 

 

 

Emergency and Preventative Maintenance(4)

 

30,199

 

 

 

21,999

 

 

 

114,033

 

 

 

89,572

 

 

 

Household Goods Moving Services(5)

 

16,484

 

 

 

16,780

 

 

 

76,927

 

 

 

82,893

 

 

 

Total non-asset-based segments

 

118,997

 

 

 

45,398

 

 

 

360,971

 

 

 

196,004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses and eliminations

 

(7,333

)

 

 

(4,503

)

 

 

(24,948

)

 

 

(25,318

)

 

 

Total consolidated operating expenses and costs

 

$

548,058

 

 

 

$

461,606

 

 

 

$

2,080,567

 

 

 

$

1,897,850

 

 

 

 

Note:  See the following page for footnotes.

 



 

ARKANSAS BEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS — Continued

 

 

 

Three Months Ended
December 31

 

Year Ended
December 31

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

(Unaudited)
($ thousands)

 

OPERATING INCOME (LOSS)

 

 

 

 

 

 

 

 

 

Freight Transportation(1)

 

$

(13,552

)

$

1,340

 

$

(19,410

)

$

3,609

 

 

 

 

 

 

 

 

 

 

 

Premium Logistics & Expedited Freight Services(2)

 

1,118

 

 

2,402

 

 

Truck Brokerage & Management(3)

 

869

 

323

 

2,623

 

1,890

 

Emergency and Preventative Maintenance(4)

 

505

 

137

 

1,935

 

2,982

 

Household Goods Moving Services(5)

 

(107

)

(48

)

692

 

2,718

 

Total non-asset-based segments

 

2,385

 

412

 

7,652

 

7,590

 

 

 

 

 

 

 

 

 

 

 

Other income (loss) and eliminations

 

151

 

(117

)

(2,810

)

(1,440

)

Total consolidated operating income (loss)

 

$

(11,016

)

$

1,635

 

$

(14,568

)

$

9,759

 

 


(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 December 31, 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

 

Year Ended

 

 

 

December 31

 

December 31

 

 

 

2012

 

2011

 

% Change

 

2012

 

2011

 

% Change

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Freight Transportation (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Workdays

 

61.5

 

61.0

 

 

 

252.0

 

252.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Billed Revenue (2) / CWT

 

$

28.02

 

$

28.01

 

 

$

28.03

 

$

26.86

 

4.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Billed Revenue (2) / Shipment

 

$

382.40

 

$

371.34

 

3.0

%

$

380.49

 

$

362.11

 

5.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments

 

1,083,615

 

1,101,893

 

(1.7

)%

4,494,062

 

4,745,404

 

(5.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments / Day

 

17,620

 

18,064

 

(2.5

)%

17,834

 

18,831

 

(5.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage (tons)

 

739,418

 

730,426

 

1.2

%

3,049,885

 

3,198,292

 

(4.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tons / Day

 

12,023

 

11,974

 

0.4

%

12,103

 

12,692

 

(4.6

)%

 


(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:

 

Investor:

 

 

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

 

 

Telephone: (479) 785-6200

 

 

 

 

 

Media:

 

 

Ms. Kathy Fieweger

 

 

Telephone: (847) 903-8806

 

END OF RELEASE