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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

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

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