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ARKANSAS BEST CP
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Arkansas Best Corporation Announces Fourth Quarter 2012 Results And Full Year 2012 Results

2013-01-30 03:00 ET - News Release

- 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, Ark., Jan. 30, 2013 /PRNewswire/ -- 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:

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


Telephone: (479) 785-6200




Media: Ms. Kathy Fieweger


Telephone: (847) 903-8806

SOURCE Arkansas Best Corporation

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