Arkansas Best Corporation Announces Fourth Quarter 2013 Results And Full Year 2013 Results

- Fourth quarter 2013 net income of $10.3 million, or $0.38 per share

- ABF Freight fourth quarter profit generated by business and pricing increases and improved cost structure following implementation of its new labor agreement

- Panther's operating income nearly tripled in fourth quarter

- Emerging, non-asset-based businesses represent 25% of total 2013 consolidated revenue

News provided by

Arkansas Best Corporation

Jan 30, 2014, 03:00 ET

FORT SMITH, Ark., Jan. 30, 2014 /PRNewswire/ -- Arkansas Best Corporation (Nasdaq: ABFS) today reported results for the fourth quarter and full year 2013 that reflected solidly improved profitability at ABF Freight System, Inc., Panther Expedited Services and revenue growth at Arkansas Best's other emerging, non-asset based businesses. 

Arkansas Best's 2013 revenue was $2.3 billion, an increase of 11% compared to $2.1 billion in 2012. Arkansas Best had 2013 net income of $15.8 million, or $0.59 per share, compared to a net loss of $7.7 million, or $0.31 per share, in 2012.

Arkansas Best's fourth quarter 2013 net income was $10.3 million, or $0.38 per share, compared to a fourth quarter 2012 net loss of $7.9 million, or $0.31 per share.  Excluding adjustments for non-operational items that are identified in the attached reconciliation table, Arkansas Best had fourth quarter 2013 net income of $8.4 million, or $0.31 per share.  Arkansas Best's fourth quarter 2013 revenue was $578.5 million compared to revenue of $537.0 million in the fourth quarter of 2012.

"After a very challenging year in which we negotiated and implemented a new five-year labor agreement with the International Brotherhood of Teamsters, I am very pleased to report that ABF Freight ended the year with solid profitability, substantially reversing the unacceptable trend of losses in 2012," said Arkansas Best President and Chief Executive Officer Judy R. McReynolds. "While that lengthy process was ongoing, we continued to make important strategic investments in our emerging businesses, all of which reported increased revenues and are well positioned for additional growth in 2014."

McReynolds added that the company as a whole now has greater stability and resources with which to continue providing the holistic transportation and logistics solutions sought by customers. "Everyone at Arkansas Best and our operating companies is energized by the opportunities in front of us. We are working hard to offer a more easily accessible range of services along with the traditional high level of personal commitment to a job well done that our customers have come to expect."

ABF Freight System, Inc.

Increased business levels and improved account pricing were the primary factors that contributed to fourth quarter 2013 profitability at ABF Freight.  A better customer shipping environment and a more stable economy provided additional shipments in the ABF Freight network.  This resulted in greater capacity utilization that contributed to improved fourth quarter results.  In addition, cost savings related to the early November implementation of ABF Freight's new labor agreement positively impacted the quarter.  

Increased fourth quarter pricing at ABF Freight was the result of continued focus on individual account profitability and a stable yield environment throughout the LTL industry.  The company believes the clarity that resulted from the resolution of ABF's labor agreement was another positive factor contributing to higher average rates on fourth quarter ABF shipments.

Emerging, Non-Asset-Based Businesses

Panther Expedited Services, Inc. experienced significant improvement in fourth quarter profitability as operating income nearly tripled on higher quarterly revenue.  Increased demand for the premium services offered by Panther occurred in the majority of customer industries it serves, thus allowing for solid pricing and margin expansion throughout the fourth quarter.

All of the remaining non-asset-based businesses experienced growth in fourth quarter revenue, highlighted by the Domestic & Global Transportation Management segment that increased quarterly revenue by 43% and generated a slight increase in operating income.  Strategic investments in additional personnel, information technology and other resources impacted the level of profitability in this segment and contributed to a decline in fourth quarter profitability at the Household Goods Moving Services segment.  However these investments, that are important for future growth and improved customer service, are expected to positively impact the long-term results of these businesses.  Additional revenue of 14% at the Emergency & Preventative Maintenance segment resulted in an operating income increase of 80% related to improved pricing and cost controls, as well as labor efficiencies associated with increased maintenance-event volume. 

For full year 2013 together, Arkansas Best's emerging non-asset-based businesses demonstrated strong, positive increases in revenue and operating margins and produced positive cash flow.  Because of continued growth throughout the year, these businesses now represent 25% of total consolidated revenue and contributed significantly to Arkansas Best's operating results.  On a combined basis throughout 2013, the non-asset-based businesses generated earnings before interest, taxes, depreciation and amortization ("EBITDA") of $28.0 million.

Capital Expenditures

In 2013, total net capital expenditures amounted to $24 million, including approximately $3 million of revenue equipment for ABF Freight.  ABF Freight 2013 revenue equipment purchases were significantly below normal due to the delayed implementation of the labor contract, as described above.  Depreciation and amortization costs on fixed assets equaled $84 million.

For 2014, total net capital expenditures are estimated to be in the range of $90 million to $100 million. This includes approximately $60 million of revenue equipment for ABF Freight, all of which will be replacements. The remainder of expected capital expenditures includes the costs of additional equipment for ABF Freight and the other subsidiaries; real estate improvements; and technology.  Depreciation and amortization costs on fixed assets in 2014 are estimated to be in a range of $85 million to $90 million.

Closing Comments

"As I look ahead to 2014, I am encouraged that we have growth opportunities in many industries and markets we serve, despite my expectations for a slow growing economy overall," said McReynolds. "Last year we achieved many significant milestones that give us a much stronger ability to compete in an ever-changing marketplace.  We are positioned to effectively respond to our customers who increasingly look to us for ways to help them manage their complex transportation, supply chain and logistics needs." 

Conference Call

Arkansas Best Corporation will host a conference call with company executives to discuss the 2013 fourth quarter and full year results.  The call will be today, Thursday, January 30, at 9:30 a.m. ET (8:30 a.m. CT).  Interested parties are invited to listen by calling (800) 709-0218.  Following the call, a recorded playback will be available through the end of the day on March 1, 2014.  To listen to the playback, dial (800) 633-8284 or (402) 977-9140 (for international callers).  The conference call ID for the playback is 21703284.  The conference call and playback can also be accessed, through March 1, 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," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "predict," "project," "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, a workforce stoppage by our employees covered under ABF's collective bargaining agreement or unfavorable terms of future collective bargaining agreements; relationships with employees, including unions; 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/or limit our customers' access to adequate financial resources; union and nonunion employee wages and benefits, including changes in required contributions to multiemployer pension plans; competitive initiatives, pricing pressures and 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; default on covenants of financing arrangements and the availability and terms of future financing arrangements; availability and cost of reliable third-party services; disruptions or failures of services essential to the use of information technology platforms in our business; availability, 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; potential impairment of goodwill and intangible assets; the impact of our brand and corporate reputation; the cost, timing, and performance of growth initiatives; the cost, integration, and performance of any future acquisitions; the costs of continuing investments in technology, a failure of our information systems, 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 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

2013

2012

2013

2012

(Unaudited)

($ thousands, except share and per share data)










OPERATING REVENUES

$

578,549

$

537,042

$

2,299,549

$

2,065,999










OPERATING EXPENSES AND COSTS

565,047

548,058

2,280,479

2,080,567










OPERATING INCOME (LOSS)

13,502

(11,016)

19,070

(14,568)










OTHER INCOME (EXPENSE)










Interest and dividend income

182

185

681

808

Interest expense and other related financing costs

(903)

(1,409)

(4,183)

(5,273)

Other, net

1,114

(76)

3,893

2,041

393

(1,300)

391

(2,424)










INCOME (LOSS) BEFORE INCOME TAXES

13,895

(12,316)

19,461

(16,992)










INCOME TAX PROVISION (BENEFIT)

3,549

(4,387)

3,650

(9,260)










NET INCOME (LOSS)

$

10,346

$

(7,929)

$

15,811

$

(7,732)










EARNINGS (LOSS) PER COMMON SHARE(1)










Basic

$

0.38

$

(0.31)

$

0.59

$

(0.31)

Diluted

$

0.38

$

(0.31)

$

0.59

$

(0.31)










AVERAGE COMMON SHARES OUTSTANDING










Basic

25,785,485

25,629,309

25,714,205

25,564,752

Diluted

25,793,366

25,629,309

25,714,205

25,564,752










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)

$

10,346

$

(7,929)

$

15,811

$

(7,732)










EFFECT OF UNVESTED RESTRICTED
  STOCK AWARDS(1)

(505)

(38)

(720)

(149)










ADJUSTED NET INCOME (LOSS) FOR

  CALCULATING  EARNINGS (LOSS)

  PER COMMON SHARE

$

9,841

$

(7,967)

$

15,091

$

(7,881)



ARKANSAS BEST CORPORATION
CONSOLIDATED BALANCE SHEETS

December 31
2013

December 31
2012

(Unaudited)

Note

($ thousands, except share data)

ASSETS










CURRENT ASSETS




Cash and cash equivalents

$

105,354

$

90,702

Short-term investments


35,906

29,054

Restricted cash, cash equivalents, and short-term investments

1,902

9,658

Accounts receivable, less allowances (2013 – $4,533; 2012 – $5,249)

202,540

180,631

Other accounts receivable, less allowances (2013 – $1,422; 2012 – $1,334)

7,272

6,539

Prepaid expenses

19,016

17,355

Deferred income taxes

37,482

39,245

Prepaid and refundable income taxes

2,061

5,681

Other

6,952

7,185

TOTAL CURRENT ASSETS

418,485

386,050




PROPERTY, PLANT AND EQUIPMENT




Land and structures

245,805

243,699

Revenue equipment

589,902

589,729

Service, office, and other equipment

124,303

119,456

Software

110,998

103,164

Leasehold improvements

23,582

23,272

1,094,590

1,079,320

Less allowances for depreciation and amortization

700,193

635,292

394,397

444,028

GOODWILL

76,448

73,189

INTANGIBLE ASSETS, NET

75,387

79,561

OTHER ASSETS

52,609

51,634





$

1,017,326

$

1,034,462




LIABILITIES AND STOCKHOLDERS' EQUITY










CURRENT LIABILITIES




Bank overdraft and drafts payable

$

13,609

$

13,645

Accounts payable

89,091

84,292

Income taxes payable

1,782

59

Accrued expenses

173,622

158,668

Current portion of long-term debt

31,513

43,044

TOTAL CURRENT LIABILITIES

309,617

299,708




LONG-TERM DEBT, less current portion

81,332

112,941

PENSION AND POSTRETIREMENT LIABILITIES

26,847

104,673

OTHER LIABILITIES

15,041

12,832

DEFERRED INCOME TAXES

64,028

45,309




STOCKHOLDERS' EQUITY




Common stock, $0.01 par value, authorized 70,000,000 shares;

    issued 2013: 27,507,241 shares; 2012: 27,296,285 shares

275

273

Additional paid-in-capital

296,133

289,711

Retained earnings

296,735

284,157

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

(57,770)

(57,770)

Accumulated other comprehensive loss

(14,912)

(57,372)

TOTAL STOCKHOLDERS' EQUITY

520,461

458,999





$

1,017,326

$

1,034,462


Note: The balance sheet at December 31, 2012 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 Ended

December 31

2013

2012

(Unaudited)

($ thousands)

OPERATING ACTIVITIES




Net income (loss)

$

15,811

$

(7,732)

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




Depreciation and amortization

84,215

85,493

Amortization of intangibles

4,174

2,261

Pension settlement expense

2,111

–

Share-based compensation expense

5,494

6,068

Provision for losses on accounts receivable

2,065

1,524

Deferred income tax benefit

(10,367)

(10,359)

Gain on sale of property and equipment

(153)

(735)

Changes in operating assets and liabilities:




Receivables

(24,200)

508

Prepaid expenses

(1,670)

305

Other assets

(1,015)

961

Income taxes

8,468

2,630

Accounts payable, accrued expenses, and other liabilities

8,571

3,610

NET CASH PROVIDED BY OPERATING ACTIVITIES

93,504

84,534




INVESTING ACTIVITIES




Purchases of property, plant and equipment, net of financings

(26,369)

(37,278)

Proceeds from sale of property and equipment

2,194

6,397

Purchases of short-term investments


(39,605)

(55,858)

Proceeds from sale of short-term investments


32,718

60,730

Business acquisition, net of cash acquired(1)

(4,146)

(180,039)

Capitalization of internally developed software and other

(7,668)

(7,218)

NET CASH USED IN INVESTING ACTIVITIES

(42,876)

(213,266)




FINANCING ACTIVITIES




Borrowing under credit facilities

–

100,000

Payments on long-term debt

(43,176)

(53,000)

Net change in bank overdraft and other

(37)

(7,190)

Net change in restricted cash, cash equivalents, and short-term investments

7,756

43,035

Deferred financing costs

(71)

(1,487)

Payment of common stock dividends

(3,233)

(3,219)

Proceeds from the exercise of stock options

2,785

–

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

(35,976)

78,139




NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               


14,652

(50,593)

Cash and cash equivalents at beginning of period

90,702

141,295

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$

105,354

$

90,702




NONCASH INVESTING ACTIVITIES




Accruals for equipment received

$

324

$

301

Equipment financed

$

36

$

37,973

(1)

During second quarter 2013, the Company acquired a privately-held logistics business that has been reported within the Household Goods Moving Services segment.



ARKANSAS BEST CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES











Three Months Ended
December 31

Year Ended
December 31

2013

2012

2013

2012

(Unaudited)

($ thousands, except per share data)

ARKANSAS BEST CORPORATION – CONSOLIDATED






















Net Income (Loss)












  Amounts on a GAAP basis

$

10,346

$

(7,929)

$

15,811

$

(7,732)

  Collective bargaining agreement adjustments, after tax(1)

(1,435)

–

–

–

  Tax benefits(2)

(670)

529

(1,436)

(3,180)

  Transaction costs, after-tax(3)

–

–

–

1,294

  Pension settlement expense, after-tax(4)

169

–

1,290

–

  Non-GAAP amounts

$

8,410

$

(7,400)

$

15,665

$

(9,618)










Diluted Earnings (Loss) Per Share










  Amounts on a GAAP basis

$

0.38

$

(0.31)

$

0.59

$

(0.31)

  Collective bargaining agreement adjustments, after tax(1)

(0.06)

–

–

–

  Tax benefits(2)

(0.02)

0.02

(0.06)

(0.12)

  Transaction costs, after-tax(3)

–

–

–

0.05

  Pension settlement expense, after-tax(4)

0.01

–

0.05

–

  Non-GAAP amounts

$

0.31

$

(0.29)

$

0.58

$

(0.38)










ARKANSAS BEST CORPORATION – CONSOLIDATED






















Earnings Before Interest, Taxes, Depreciation
   and Amortization










  Net income (loss)

$

10,346

$

(7,929)

$

15,811

$

(7,732)

  Interest expense

903

1,409

4,183

5,273

  Income tax provision (benefit)

3,549

(4,387)

3,650

(9,260)

  Depreciation and amortization

20,819

23,764

88,388

87,754

  Amortization of share-based compensation

1,915

1,357

5,494

6,068

  Amortization of actuarial losses and pension settlement expense

1,228

2,846

10,046

11,385

  EBITDA

38,760

17,060

127,572

93,488










  Transaction costs, pre-tax(3)

–

–

–

2,129

  Adjusted EBITDA

$

38,760

$

17,060

$

127,572

$

95,617










(1)

The ABF collective bargaining agreement, which was implemented November 3, 2013, provided for certain reductions in annual compensated vacation that impacted amounts expensed but not paid in periods prior to fourth quarter 2013.

(2)

Tax benefit adjustments related to deferred tax asset valuation allowances.

(3)

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

(4)

Settlement expense related to the company's nonunion defined benefit pension plan which was frozen effective July 1, 2013.



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




ARKANSAS BEST CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES






Three Months Ended
December 31
2013

Three Months Ended
December 31
2012













Operating

Income

Depreciation
and
Amortization

EBITDA

Operating
Income

Depreciation
and
Amortization

EBITDA












Premium Logistics & Expedited Freight Services(1)

$

3,211

$

2,707

$

5,918

$

1,118

$

2,473

$

3,591

Domestic & Global Transportation Management

1,409

191

1,600

1,357

119

1,476

Emergency & Preventative Maintenance

907

141

1,048

505

125

630

Household Goods Moving Services

(702)

367

(335)

(107)

242

135

Total non-asset-based segments

$

4,825

$

3,406

$

8,231

$

2,873

$

2,959

$

5,832

















Year Ended
December 31
2013

Year Ended
December 31
2012







Operating

Income

Depreciation
and
Amortization

EBITDA

Operating
Income

Depreciation
and
Amortization

EBITDA












Premium Logistics & Expedited Freight Services(1)

$

6,956

$

10,516

$

17,472

$

2,402

$

5,438

$

7,840

Domestic & Global Transportation Management

2,973

640

3,613

3,013

364

3,377

Emergency & Preventative Maintenance

3,274

540

3,814

1,935

497

2,432

Household Goods Moving Services

1,850

1,247

3,097

692

769

1,461

Total non-asset-based segments

$

15,053

$

12,943

$

27,996

$

8,042

$

7,068

$

15,110

(1)

Depreciation and amortization consists primarily of amortization of intangibles, including customer relationships and software, which were acquired in conjunction with the purchase of Panther Expedited Services, Inc. on June 15, 2012. Amounts for the year ended December 31, 2012 reflect the period from the date of acquisition, June 15, to December 31.


 



ARKANSAS BEST CORPORATION
FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS















Three Months Ended
December 31

Year Ended
December 31

2013

2012

2013

2012

(Unaudited)
($ thousands)














OPERATING REVENUES














Freight Transportation

$

436,654

$

414,475

$

1,761,716

$

1,701,495

Premium Logistics & Expedited

   Freight Services(1)

67,316


61,046


246,849


132,326

Domestic & Global Transportation

   Management

30,668


21,477


105,223


66,431

Emergency & Preventative

   Maintenance

35,042


30,704


137,546


115,968

Household Goods Moving
   Services

16,811


16,377


82,169


77,619

Total non-asset-based segments

149,837


129,604


571,787


392,344
















Other revenues and eliminations

(7,942)


(7,037)


(33,954)


(27,840)

Total consolidated
   operating revenues

$

578,549

$

537,042

$

2,299,549

$

2,065,999
















OPERATING EXPENSES AND COSTS














Freight Transportation














Salaries, wages, and benefits

$

258,757

59.3%

$

264,926

63.9%

$

1,075,259

61.0%

$

1,071,084

62.9%

Fuel, supplies, and expenses

81,946

18.8

82,171

19.8

332,433

18.9

329,284

19.4

Operating taxes and licenses

11,072

2.5

10,823

2.6

43,865

2.5

43,336

2.5

Insurance

4,413

1.0

5,334

1.3

21,823

1.2

20,742

1.2

Communications and utilities

3,492

0.8

3,644

0.9

15,027

0.9

14,713

0.9

Depreciation and amortization

16,810

3.8

20,269

4.9

72,971

4.1

78,672

4.6

Rents and purchased

   transportation

47,453

10.9

39,897

9.6

180,689

10.3

156,810

9.2

Gain on sale of property

   and equipment

(90)

–

(132)

–

(576)

–

(711)

–

Pension settlement expense

219

0.1

–

–

1,831

0.1

–

–

Other

2,713

0.5

1,583

0.4

8,361

0.4

7,365

0.5

426,785

97.7%

428,515

103.4%

1,751,683

99.4%

1,721,295

101.2%














Premium Logistics & Expedited

Freight Services(1)















Purchased transportation

$

51,072

75.9%

$

47,052

77.1%

$

188,561

76.4%

$

101,559

76.7%

Depreciation and amortization(1)

2,707

4.0

2,473

4.1

10,516

4.3

5,438

4.1

Salaries, benefits, insurance,

   and other

10,326

15.3

10,403

17.0

40,816

16.5

22,927

17.4

64,105

95.2%

59,928

98.2%

239,893

97.2%

129,924

98.2%














Domestic & Global Transportation

   Management

29,259


20,120


102,250


63,418

Emergency & Preventative

   Maintenance

34,135


30,199


134,272


114,033

Household Goods Moving
   Services

17,513


16,484


80,319


76,927

Total non-asset-based segments

145,012


126,731


556,734


384,302
















Other expenses and eliminations

(6,750)


(7,188)


(27,938)


(25,030)

Total consolidated operating

   expenses and costs

$

565,047

$

548,058

$

2,280,479

$

2,080,567


(1)

Depreciation and amortization consists primarily of amortization of intangibles, including customer relationships and software, which were acquired in conjunction with the purchase of Panther Expedited Services, Inc. on June 15, 2012. Amounts for the year ended December 31, 2012 reflect the period from the date of acquisition, June 15, to December 31.


Note: See the following page for description of segments.


 


ARKANSAS BEST CORPORATION
FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS – Continued











Three Months Ended
December 31

Year Ended
December 31

2013

2012

2013

2012

(Unaudited)
($ thousands)










OPERATING INCOME (LOSS)










Freight Transportation

$

9,869

$

(14,040)

$

10,033

$

(19,800)

Premium Logistics & Expedited
   Freight Services

3,211

1,118

6,956

2,402

Domestic & Global Transportation

   Management

1,409

1,357

2,973

3,013

Emergency & Preventative

   Maintenance

907

505

3,274

1,935

Household Goods Moving
   Services

(702)

(107)

1,850

692

Total non-asset-based segments

4,825

2,873

15,053

8,042










Other income (loss) and
   eliminations(1)

(1,192)

151

(6,016)

(2,810)

Total consolidated operating
   income (loss)

$

13,502

$

(11,016)

$

19,070

$

(14,568)












Description of Segments:

  • Freight Transportation includes the results of operations of Arkansas Best's largest subsidiary, ABF Freight System, Inc.®.
  • Panther Expedited Services, Inc., which was acquired on June 15, 2012, is reported as Premium Logistics & Expedited Freight Services.
  • Domestic & Global Transportation Management includes the company's transportation brokerage services, ocean container transport, and warehousing services operating as ABF Logistics.
  • Emergency & Preventative Maintenance includes the roadside vehicle assistance and commercial equipment services subsidiary FleetNet America, Inc.
  • Household Goods Moving Services includes Albert Companies, Inc. and Moving Solutions, Inc. which provide services to the consumer, corporate, and military household goods moving market.

Certain reclassifications have been made to the prior year's operating segment data to conform to the current year presentation. The operating results of Global Supply Chain Services and Supply Chain Services, businesses which provide ocean container transport and warehousing services, have been reclassified from the Freight Transportation segment to the Domestic & Global Transportation Management segment. There was no impact on consolidated amounts as a result of these reclassifications.


(1)

Other income (loss) and eliminations for 2013 includes $1 million of expense for workers' compensation reserves associated with an insolvent insurance carrier. 2013 also reflects costs of long-term incentive plans that are driven by the company's total shareholder return relative to its peer group.


 

ARKANSAS BEST CORPORATION
OPERATING STATISTICS











Three Months Ended
December 31

Year Ended
December 31

2013

2012

%Change

2013

2012

%Change

(Unaudited)










Freight Transportation (1)






















Workdays

61.5

61.5


251.5

252.0












Billed Revenue (2) / CWT           

$

28.46

$

27.83

2.3%

$

27.94

$

27.90

0.1%










Billed Revenue (2) / Shipment    

$

377.65

$

379.63

(0.5)%

$

380.25

$

378.55

0.4%










Shipments                                  


1,143,813

1,083,479

5.6%

4,632,150

4,493,491

3.1%










Shipments / Day

18,599

17,618

5.6%

18,418

17,831

3.3%










Tonnage (tons)                           


758,987

738,947

2.7%

3,152,042

3,048,336

3.4%










Tons / Day

12,341

12,015

2.7%

12,533

12,097

3.6%




(1)

Based on the previously described reclassifications that have been made to the prior year's operating segment data and statistics to conform to the current year presentation, operations of Global Supply Chain Services and Supply Chain Services are excluded from key operating statistics for the Freight Transportation Segment.

(2)

Billed Revenue does not include revenue deferral required for financial statement purposes under the company's revenue recognition policy.

Contact:

Investors: Mr. David Humphrey, Vice President, Investor Relations

Telephone: (479) 785-6200

Media: Ms. Kathy Fieweger, Vice President, Marketing and Corporate Communications  

Telephone: (479) 719-4358     

SOURCE Arkansas Best Corporation