EXHIBIT 99.1
FOR IMMEDIATE RELEASE
ARKANSAS BEST CORPORATION
ANNOUNCES THIRD QUARTER EARNINGS,
EXCLUDING PROPERTY GAINS, OF $1.21 PER SHARE;
ABFÒ’s OPERATING RATIO IS 88.5%
ANNOUNCES THIRD QUARTER EARNINGS,
EXCLUDING PROPERTY GAINS, OF $1.21 PER SHARE;
ABFÒ’s OPERATING RATIO IS 88.5%
(Fort Smith, Arkansas, October 24, 2005) — Arkansas Best Corporation (Nasdaq: ABFS) today announced third quarter 2005 net income of $40.6 million, or $1.59 per diluted common share, compared to third quarter 2004 net income of $27.4 million, or $1.07 per diluted common share. Excluding an after-tax gain of $9.8 million ($0.38 per diluted common share) related to the July 2005 sale of three non-ABF terminal facilities located in California to G.I. Trucking Company, third quarter 2005 earnings per diluted common share were $1.21. Arkansas Best’s after-tax return on capital employed for the twelve months ended September 30, 2005 was 20.6%. Arkansas Best’s revenue during the third quarter of 2005 was $489.9 million, an increase of 6.1% over the third quarter of 2004.
ABF Freight System, Inc.®
ABF Freight System, Inc., the company’s largest subsidiary, had third quarter 2005 revenue of $451.8 million, a per-day increase of 5.6% compared to third quarter 2004 revenue of $427.9 million. ABF’s third quarter 2005 operating ratio was 88.5% versus an operating ratio of 89.2% during the third quarter of 2004. Third quarter 2005 operating income at ABF was $52.0 million compared to $46.2 million in the third quarter of 2004, an increase of 12.5%. “ABF generated the highest quarterly operating income in its history and, on a comparable reporting basis, the best quarterly operating ratio in over twenty-five years,” said Robert A. Young III, Arkansas Best Chairman and Chief Executive Officer.
“The improvement in ABF’s third quarter operating ratio was accomplished because of a combination of good pricing and consistent cost controls,” said Mr. Young. “Total revenue per hundredweight, excluding fuel surcharge, increased by over one percent, despite a significant shift in profile. ABF’s yield and profitability improvement were enhanced by improved yield on
larger shipments and increased handling of TimeKeeper® shipments, those moving under ABF’s guaranteed, expedited and time-definite shipping service. Though TimeKeeper’s impact on third quarter results is relatively small, this business is growing rapidly. TimeKeeper’s profitability is good and customers find these services quite valuable,” said Mr. Young. “ABF’s LTL tonnage was below the strong levels experienced in the third quarter of 2004, yet ABF was able to manage its variable costs in order to maximize the profitability of the shipments moving through its network. ABF’s profitability improved as a result of reducing the use of rail in higher-cost lanes and the associated drayage and equipment shuttles. ABF used fewer local cartage agents for shipment pickup and delivery and reduced employee overtime. In addition, ABF’s third quarter workers’ compensation costs declined by $1.7 million because of fewer new claims and favorable severity trends on existing claims. However, casualty claims costs increased by $1.6 million as a result of adverse severity trends on existing claims. ABF’s third quarter cargo claims costs declined from last year by $567,000.”
ABF’s total tonnage per day in the third quarter of 2005 was down slightly versus a year ago, decreasing by 0.4%. Compared to the same periods last year, LTL tonnage per day decreased 6.3% in June 2005; 5.6% in July 2005; 2.9% in August 2005 and 0.7% in September 2005. Overall, third quarter 2005 LTL tonnage per day decreased 3.0% compared to third quarter 2004. “Though third quarter 2005 LTL tonnage was below that of last year’s very strong third quarter, I am encouraged by the significantly improving trends in the LTL tonnage comparisons over the last few months,” said Mr. Young.
ABF’s 2005 third quarter truckload tonnage per day increased by 10.1%, including an increase of 15.6% in September. “For the last two years, ABF has experienced strong growth in truckload tonnage and this year’s third quarter is no exception,” said Mr. Young. “As long as ABF is able to earn comparable profit margins on these shipments and service on its core LTL business is not adversely affected, ABF will continue to pursue these larger shipments in order to fill available capacity.” Through the first twenty days of October, average daily tonnage figures in ABF’s total business are slightly ahead of the same period last year.
Total billed revenue per hundredweight was $24.43 compared to $22.84 in the third quarter of 2004. Total billed revenue per hundredweight, excluding fuel surcharge, increased by 1.2%. “ABF continues to secure reasonable price increases in a very stable, but competitive, pricing environment,” said Mr. Young. ABF’s third quarter 2005 total weight per shipment increased by 3.6% versus the third quarter of 2004. Third quarter 2005 total length of haul
declined by 0.8% compared to the third quarter of 2004. Increases in weight per shipment and decreases in length of haul cause revenue per hundredweight to go down.
“ABF’s productivity measures on the dock and in the city pickup and delivery operation are consistent with the first half of the year, but below those of the third quarter of 2004. As in this year’s second quarter, ABF’s shipment mix is impacting these statistics,” said Mr. Young. “Larger shipments moving throughout ABF’s network, combined with a significant increase in truckload shipments requiring additional pickup, delivery and dock labor, have caused a decrease in “per shipment” productivity compared to last year’s third quarter,” said Mr. Young. “As has been the case throughout this entire year, the yard productivity of trailer movement at ABF’s largest facilities exceeded that of the same period last year.”
During the third quarter, hurricanes Katrina and Rita had minimal impact on ABF’s operations in the Gulf Coast and South Texas regions. All ABF facilities in these areas are now fully operational, limited only by public infrastructure damage and accessibility to customer locations. “Fortunately, none of ABF’s employees were injured or killed as a result of these terrible storms, though several lost many of their possessions,” said Mr. Young. “We will continue to support our employees and assist the relief agencies serving these areas.”
From September 7 through October 4, 2005, ABF limited its standard fuel surcharge due to the extremely volatile fuel prices resulting from Hurricane Katrina. During this period, ABF’s fuel surcharge was capped at the pre-Katrina level that was established on August 29. Had ABF charged its standard fuel surcharge percentage, approximately $2.2 million of additional revenue would have been earned. This reduced Arkansas Best’s third quarter earnings by $0.05 per diluted common share.
Clipper
For the third quarter of 2005, Clipper had revenues of $26.7 million, an 8.6% increase over third quarter 2004 revenue of $24.6 million. “As seen last quarter, the revenue in each division of Clipper increased compared to last year, highlighted by a 19.3% increase in truck brokerage revenue,” said Mr. Young. Clipper’s third quarter 2005 operating ratio improved to 97.8% compared to a third quarter 2004 operating ratio of 99.2%.
“Clipper experienced solid third quarter demand for its services in all segments,” said Mr. Young. “Fuel cost pressures impacting over-the-road, truckload competitors created intermodal opportunities for Clipper that positively affected third quarter results. Average revenue per shipment at Clipper’s temperature-controlled division increased, primarily due to tighter equipment capacity. Despite rising fuel prices, Clipper’s brokerage division was able to add customers and new business throughout the quarter,” said Mr. Young. “Overall, Clipper’s continued focus on improved negotiation of contracts and attention to specific account profitability are resulting in enhanced margins.”
Common Stock Purchase
During the third quarter of 2005, Arkansas Best made open-market purchases, totaling 209,000 shares, of its common stock. The total purchase price for these transactions was $7.1 million. These common shares were added to the company’s treasury stock. Arkansas Best has now purchased a total of 843,150 shares totaling $25.0 million. This completes a program, announced in January 2003, to repurchase up to a maximum of $25 million of Arkansas Best’s common stock.
On July 28, 2005, Arkansas Best’s Board of Directors announced the authorization of an additional $50 million to Arkansas Best’s stock repurchase program. Arkansas Best plans to continue making open-market purchases of its stock on an opportunistic basis.
Conference Call
Arkansas Best Corporation will host a conference call with company executives to discuss the 2005 third quarter results. The call will be today, Monday, October 24, at 2:00 p.m. EDT (1:00 p.m. CDT). Interested parties are invited to listen by calling (877) 275-1257. Following the call, a recorded playback will be available through the end of the day on Saturday, November 12, 2005. To listen to the playback, dial (800) 642-1687. The conference call ID for the playback is 1208941. The conference call and playback can also be accessed, through Saturday, November 12, on Arkansas Best’s Web site atwww.arkbest.com.
Arkansas Best Corporation, headquartered in Fort Smith, Arkansas, is a transportation holding company with two primary operating subsidiaries. ABF Freight System, Inc., in continuous service since 1923, provides transportation of less-than-truckload (“LTL”) general commodities throughout North America. Clipper is an intermodal marketing company that provides domestic freight services utilizing rail and over-the-road transportation. For more information, please visitwww.arkbest.com.
Forward-Looking Statements
The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: Statements contained in this press release that are not based on historical facts are “forward-looking statements.” Terms such as “estimate,” “forecast,” “expect,” “predict,” “plan,” “anticipate,” “believe,” “intend,” “should,” “would,” “scheduled,” 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, union relations; availability and cost of capital; shifts in market demand; weather conditions; the performance and needs of industries served by Arkansas Best’s subsidiaries; actual future costs of operating expenses such as fuel and related taxes; self-insurance claims; union and non-union employee wages and benefits; actual costs of continuing investments in technology; the timing and amount of capital expenditures; competitive initiatives and pricing pressures; general economic conditions; and other financial, operational and legal risks and uncertainties detailed from time to time in the Arkansas Best’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 INCOME (Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
($ thousands, except share and per share data) | ||||||||||||||||
OPERATING REVENUES | $ | 489,885 | $ | 461,888 | $ | 1,363,823 | $ | 1,261,224 | ||||||||
OPERATING EXPENSES AND COSTS | 439,802 | 417,663 | 1,257,574 | 1,176,715 | ||||||||||||
OPERATING INCOME | 50,083 | 44,225 | 106,249 | 84,509 | ||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Net gain on sales of property and other(1) | 15,350 | 248 | 15,398 | 433 | ||||||||||||
Short-term investment income | 629 | 104 | 1,520 | 149 | ||||||||||||
Fair value changes and payments on interest rate swap(2) | — | 300 | — | 449 | ||||||||||||
Interest expense and other related financing costs | (297 | ) | (388 | ) | (1,775 | ) | (1,118 | ) | ||||||||
Other, net | 755 | 927 | 837 | 791 | ||||||||||||
16,437 | 1,191 | 15,980 | 704 | |||||||||||||
INCOME BEFORE INCOME TAXES | 66,520 | 45,416 | 122,229 | 85,213 | ||||||||||||
FEDERAL AND STATE INCOME TAXES | ||||||||||||||||
Current | 25,662 | 15,725 | 57,555 | 29,483 | ||||||||||||
Deferred (credit) | 291 | 2,322 | (9,763 | ) | 4,602 | |||||||||||
25,953 | 18,047 | 47,792 | 34,085 | |||||||||||||
NET INCOME | $ | 40,567 | $ | 27,369 | $ | 74,437 | $ | 51,128 | ||||||||
Basic: | ||||||||||||||||
NET INCOME PER SHARE | $ | 1.61 | $ | 1.09 | $ | 2.94 | $ | 2.04 | ||||||||
AVERAGE COMMON SHARES OUTSTANDING (BASIC) | 25,174,584 | 25,067,784 | 25,343,768 | 25,077,859 | ||||||||||||
Diluted: | ||||||||||||||||
NET INCOME PER SHARE | $ | 1.59 | $ | 1.07 | $ | 2.89 | $ | 2.00 | ||||||||
AVERAGE COMMON SHARES OUTSTANDING (DILUTED) | 25,531,101 | 25,546,370 | 25,738,026 | 25,501,009 | ||||||||||||
CASH DIVIDENDS PAID PER COMMON SHARE | $ | 0.15 | $ | 0.12 | $ | 0.39 | $ | 0.36 | ||||||||
(1) | Includes $15.4 million in pre-tax gain from the sale of properties to G.I. Trucking Company. | |
(2) | The Company’s interest rate swap matured on April 1, 2005. |
Note: Certain prior year amounts have been reclassified to conform to the current year presentation, including the reclassification of short-term investment income from interest expense, to a separate category. In addition, deferred financing costs and letter of credit fees have been reclassified from other expense to interest expense and other related financing costs.
ARKANSAS BEST CORPORATION
CONSOLIDATED BALANCE SHEETS
September 30 | December 31 | |||||||
2005 | 2004 | |||||||
(Unaudited) | Note | |||||||
($ thousands, except share data) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 11,225 | $ | 32,359 | ||||
Short-term investment securities(1) | 94,079 | 38,514 | ||||||
Accounts receivable, less allowances (2005 — $4,634; 2004 — $4,425) | 166,149 | 150,812 | ||||||
Prepaid expenses | 8,882 | 15,803 | ||||||
Deferred income taxes | 30,316 | 28,617 | ||||||
Prepaid income taxes | 1,539 | 3,309 | ||||||
Other | 8,273 | 4,268 | ||||||
TOTAL CURRENT ASSETS | 320,463 | 273,682 | ||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Land and structures | 223,539 | 229,253 | ||||||
Revenue equipment | 433,399 | 395,574 | ||||||
Service, office and other equipment | 121,626 | 115,407 | ||||||
Leasehold improvements | 14,314 | 13,411 | ||||||
792,878 | 753,645 | |||||||
Less allowances for depreciation and amortization | 394,409 | 383,647 | ||||||
398,469 | 369,998 | |||||||
PREPAID PENSION COSTS | 28,359 | 24,575 | ||||||
OTHER ASSETS | 77,635 | 73,234 | ||||||
ASSETS HELD FOR SALE | 1,000 | 1,354 | ||||||
GOODWILL, less accumulated amortization (2005 and 2004 — $32,037) | 63,915 | 63,902 | ||||||
$ | 889,841 | $ | 806,745 | |||||
Note: The balance sheet at December 31, 2004 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.
(1) | Auction rate securities in the amount of $38.5 million have been reclassified from cash and cash equivalents at December 31, 2004 to short-term investments. Auction rate securities were previously included in cash and cash equivalents at December 31, 2004 because of the short duration of their reset periods. |
ARKANSAS BEST CORPORATION
CONSOLIDATED BALANCE SHEETS — continued
CONSOLIDATED BALANCE SHEETS — continued
September 30 | December 31 | |||||||
2005 | 2004 | |||||||
(Unaudited) | Note | |||||||
($ thousands, except share data) | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Bank overdraft and drafts payable | $ | 24,383 | $ | 15,862 | ||||
Accounts payable | 69,593 | 62,784 | ||||||
Income taxes payable | 17,445 | 2,941 | ||||||
Accrued expenses | 154,141 | 148,631 | ||||||
Current portion of long-term debt | 279 | 388 | ||||||
TOTAL CURRENT LIABILITIES | 265,841 | 230,606 | ||||||
LONG-TERM DEBT, less current portion | 1,212 | 1,430 | ||||||
FAIR VALUE OF INTEREST RATE SWAP(2) | — | 873 | ||||||
OTHER LIABILITIES | 68,310 | 67,571 | ||||||
DEFERRED INCOME TAXES | 29,803 | 37,870 | ||||||
FUTURE MINIMUM RENTAL COMMITMENTS, NET (2005 – $43,121; 2004 – $45,763) | — | — | ||||||
OTHER COMMITMENTS AND CONTINGENCIES | — | — | ||||||
STOCKHOLDERS’ EQUITY | ||||||||
Common stock, $.01 par value, authorized 70,000,000 shares; issued 2005: 26,141,821 shares; 2004: 25,805,702 shares | 261 | 258 | ||||||
Additional paid-in capital | 239,427 | 229,661 | ||||||
Retained earnings | 320,651 | 256,129 | ||||||
Treasury stock, at cost, 2005: 902,932 shares; 2004: 531,282 shares | (25,955 | ) | (13,334 | ) | ||||
Unearned compensation – restricted stock | (5,419 | ) | — | |||||
Accumulated other comprehensive loss | (4,290 | ) | (4,319 | ) | ||||
TOTAL STOCKHOLDERS’ EQUITY | 524,675 | 468,395 | ||||||
$ | 889,841 | $ | 806,745 | |||||
Note: The balance sheet at December 31, 2004 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. |
(2) The Company’s interest rate swap matured on April 1, 2005. |
ARKANSAS BEST CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended | ||||||||
September 30 | ||||||||
2005 | 2004 | |||||||
($ thousands) | ||||||||
OPERATING ACTIVITIES | ||||||||
Net income | $ | 74,437 | $ | 51,128 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 44,689 | 40,533 | ||||||
Other amortization | 191 | 219 | ||||||
Stock compensation expense | 527 | — | ||||||
Provision for losses on accounts receivable | 1,414 | 974 | ||||||
Provision (credit) for deferred income taxes | (9,763 | ) | 4,602 | |||||
Fair value of interest rate swap | (873 | ) | (4,294 | ) | ||||
Gain on sales of assets and other | (16,724 | ) | (2,046 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Receivables | (16,726 | ) | (30,712 | ) | ||||
Prepaid expenses | 6,920 | (1,524 | ) | |||||
Other assets | (12,836 | ) | 1,363 | |||||
Accounts payable, taxes payable, accrued expenses and other liabilities | 33,510 | 40,431 | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 104,766 | 100,674 | ||||||
INVESTING ACTIVITIES | ||||||||
Purchases of property, plant and equipment | (77,047 | ) | (63,779 | ) | ||||
Proceeds from asset sales | 26,977 | 12,333 | ||||||
Purchases of short-term investment securities(1) | (258,598 | ) | – | |||||
Proceeds from sales of short-term investment securities(1) | 203,030 | — | ||||||
Capitalization of internally developed software and other | (3,176 | ) | (3,020 | ) | ||||
NET CASH USED BY INVESTING ACTIVITIES | (108,814 | ) | (54,466 | ) | ||||
FINANCING ACTIVITIES | ||||||||
Borrowings under revolving credit facilities | — | 34,300 | ||||||
Payments under revolving credit facilities | — | (34,300 | ) | |||||
Payments on long-term debt | (327 | ) | (305 | ) | ||||
Net increase in bank overdraft | 3,344 | 4,256 | ||||||
Dividends paid on common stock | (9,915 | ) | (8,991 | ) | ||||
Purchase of treasury stock | (12,621 | ) | (7,527 | ) | ||||
Proceeds from the exercise of stock options and other | 2,433 | 6,390 | ||||||
NET CASH USED BY FINANCING ACTIVITIES | (17,086 | ) | (6,177 | ) | ||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (21,134 | ) | 40,031 | |||||
Cash and cash equivalents at beginning of period | 32,359 | 5,251 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 11,225 | $ | 45,282 | ||||
(1) | Purchases and sales of auction rate securities. The Company’s auction rate securities have increased $55.6 million since December 31, 2004. |
ARKANSAS BEST CORPORATION
FINANCIAL STATEMENT OPERATING SEGMENT DATA
AND OPERATING RATIOS (Unaudited)
FINANCIAL STATEMENT OPERATING SEGMENT DATA
AND OPERATING RATIOS (Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30 | September 30 | |||||||||||||||||||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||||||||||||||||||
($ thousands) | ||||||||||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||
ABF Freight System, Inc.(1) | ||||||||||||||||||||||||||||||||
LTL | $ | 405,363 | $ | 390,929 | $ | 1,133,497 | $ | 1,067,350 | ||||||||||||||||||||||||
TL | 46,443 | 36,982 | 119,917 | 97,706 | ||||||||||||||||||||||||||||
Total | 451,806 | 427,911 | 1,253,414 | 1,165,056 | ||||||||||||||||||||||||||||
Clipper | 26,738 | 24,610 | 78,998 | 70,551 | ||||||||||||||||||||||||||||
Other revenues and eliminations | 11,341 | 9,367 | 31,411 | 25,617 | ||||||||||||||||||||||||||||
Total consolidated operating revenues | $ | 489,885 | $ | 461,888 | $ | 1,363,823 | $ | 1,261,224 | ||||||||||||||||||||||||
OPERATING EXPENSES AND COSTS | ||||||||||||||||||||||||||||||||
ABF Freight System, Inc.(1) | ||||||||||||||||||||||||||||||||
Salaries, wages and benefits | $ | 256,691 | 56.8 | % | $ | 250,820 | 58.6 | % | $ | 751,747 | 60.0 | % | $ | 719,886 | 61.8 | % | ||||||||||||||||
Supplies and expenses | 65,885 | 14.6 | 53,495 | 12.5 | 183,578 | 14.6 | 150,405 | 12.9 | ||||||||||||||||||||||||
Operating taxes and licenses | 11,275 | 2.5 | 10,909 | 2.6 | 32,710 | 2.6 | 31,645 | 2.7 | ||||||||||||||||||||||||
Insurance | 7,960 | 1.8 | 6,911 | 1.6 | 20,828 | 1.7 | 18,190 | 1.6 | ||||||||||||||||||||||||
Communications and utilities | 3,481 | 0.8 | 3,427 | 0.8 | 10,633 | 0.8 | 10,728 | 0.9 | ||||||||||||||||||||||||
Depreciation and amortization | 13,733 | 3.0 | 12,138 | 2.8 | 39,559 | 3.2 | 35,240 | 3.0 | ||||||||||||||||||||||||
Rents and purchased transportation | 40,653 | 9.0 | 43,657 | 10.2 | 105,533 | 8.4 | 109,568 | 9.4 | ||||||||||||||||||||||||
Other | 877 | 0.2 | 912 | 0.2 | 2,934 | 0.2 | 2,346 | 0.3 | ||||||||||||||||||||||||
Gain on sale of equipment | (722 | ) | (0.2 | ) | (573 | ) | (0.1 | ) | (1,336 | ) | (0.1 | ) | (673 | ) | (0.1 | ) | ||||||||||||||||
399,833 | 88.5 | % | 381,696 | 89.2 | % | 1,146,186 | 91.4 | % | 1,077,335 | 92.5 | % | |||||||||||||||||||||
Clipper | ||||||||||||||||||||||||||||||||
Cost of services | 23,984 | 89.7 | % | 22,419 | 91.1 | % | 70,803 | 89.6 | % | 63,914 | 90.6 | % | ||||||||||||||||||||
Selling, administrative and general | 2,161 | 8.1 | 1,985 | 8.1 | 6,304 | 8.0 | 6,274 | 8.9 | ||||||||||||||||||||||||
Loss on sale of equipment | 9 | – | 15 | – | 9 | – | 17 | – | ||||||||||||||||||||||||
26,154 | 97.8 | % | 24,419 | 99.2 | % | 77,116 | 97.6 | % | 70,205 | 99.5 | % | |||||||||||||||||||||
Other expenses and eliminations | 13,815 | 11,548 | 34,272 | 29,175 | ||||||||||||||||||||||||||||
Total consolidated operating expenses and costs | $ | 439,802 | $ | 417,663 | $ | 1,257,574 | $ | 1,176,715 | ||||||||||||||||||||||||
OPERATING INCOME (LOSS) | ||||||||||||||||||||||||||||||||
ABF Freight System, Inc.(1) | $ | 51,973 | $ | 46,215 | $ | 107,228 | $ | 87,721 | ||||||||||||||||||||||||
Clipper | 584 | 191 | 1,882 | 346 | ||||||||||||||||||||||||||||
Other income and eliminations | (2,474 | ) | (2,181 | ) | (2,861 | ) | (3,558 | ) | ||||||||||||||||||||||||
Total consolidated operating income | $ | 50,083 | $ | 44,225 | $ | 106,249 | $ | 84,509 | ||||||||||||||||||||||||
(1) | Includes U.S., Canadian, and Puerto Rican operations of ABF affiliates. |
ARKANSAS BEST CORPORATION
RECONCILIATIONS OF GAAP EARNINGS AND EARNINGS PER SHARE (Unaudited)
RECONCILIATIONS OF GAAP EARNINGS AND EARNINGS PER SHARE (Unaudited)
Three Months Ended | ||||||||
September 30, 2005 | ||||||||
Diluted | ||||||||
Net | Earnings | |||||||
Arkansas Best Corporation | Income | Per Share | ||||||
($ thousands, except per share data) | ||||||||
Amounts on a GAAP basis | $ | 40,567 | $ | 1.59 | ||||
Less gain on sale of properties to G.I. Trucking Company, after tax | 9,757 | 0.38 | ||||||
Non-GAAP amounts disclosed | $ | 30,810 | $ | 1.21 | ||||
ABF FREIGHT SYSTEM, INC.
OPERATING STATISTICS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2005
OPERATING STATISTICS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2005
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||
2005 | 2004 | % Change | 2005 | 2004 | % Change | |||||||||||||||||||||
Billed Revenue* / CWT | LTL | $ | 28.09 | $ | 26.04 | 7.9 | % | $ | 27.33 | $ | 25.35 | 7.8 | % | |||||||||||||
TL | $ | 11.42 | $ | 9.92 | 15.1 | % | $ | 10.65 | $ | 9.38 | 13.5 | % | ||||||||||||||
Total | $ | 24.43 | $ | 22.84 | 7.0 | % | $ | 23.77 | $ | 22.18 | 7.2 | % | ||||||||||||||
Billed Revenue* / CWT | LTL | $ | 24.98 | $ | 24.50 | 2.0 | % | $ | 24.61 | $ | 24.04 | 2.4 | % | |||||||||||||
(without fuel surcharge) | TL | $ | 10.17 | $ | 9.22 | 10.3 | % | $ | 9.55 | $ | 8.86 | 7.8 | % | |||||||||||||
Total | $ | 21.72 | $ | 21.47 | 1.2 | % | $ | 21.40 | $ | 21.03 | 1.8 | % | ||||||||||||||
Billed Revenue* / Shipment | LTL | $ | 283.50 | $ | 259.83 | 9.1 | % | $ | 271.70 | $ | 250.48 | 8.5 | % | |||||||||||||
TL | $ | 1,849.95 | $ | 1,613.55 | 14.7 | % | $ | 1,727.31 | $ | 1,538.84 | 12.2 | % | ||||||||||||||
Total | $ | 310.53 | $ | 280.14 | 10.8 | % | $ | 295.52 | $ | 269.40 | 9.7 | % | ||||||||||||||
Tonnage | LTL | 727,063 | 749,781 | (3.0 | )% | 2,088,399 | 2,116,305 | (1.3 | )% | |||||||||||||||||
(tons) | TL | 204,907 | 186,170 | 10.1 | % | 566,657 | 523,345 | 8.3 | % | |||||||||||||||||
Total | 931,970 | 935,951 | (0.4 | )% | 2,655,056 | 2,639,650 | 0.6 | % | ||||||||||||||||||
Shipments | LTL | 1,440,827 | 1,502,977 | (4.1 | )% | 4,200,810 | 4,283,408 | (1.9 | )% | |||||||||||||||||
TL | 25,298 | 22,896 | 10.5 | % | 69,905 | 63,825 | 9.5 | % | ||||||||||||||||||
Total | 1,466,125 | 1,525,873 | (3.9 | )% | 4,270,715 | 4,347,233 | (1.8 | )% |
*Billed revenue does not include revenue deferral required for financial statement purposes under the Company’s revenue recognition policy. |
There were 64 workdays in the three months ended September 30, 2005 and in the three months ended September 30, 2004.
There were 192 workdays in the nine months ended September 30, 2005 and in the nine months ended September 30, 2004.
Includes U.S., Canadian and Puerto Rican operations of ABF affiliates.
There were 192 workdays in the nine months ended September 30, 2005 and in the nine months ended September 30, 2004.
Includes U.S., Canadian and Puerto Rican operations of ABF affiliates.
Contact: | Mr. David E. Loeffler, Senior Vice President, Chief Financial Officer and Treasurer | |
Telephone: (479) 785-6157 | ||
Mr. David Humphrey, Director of Investor Relations | ||
Telephone: (479) 785-6200 |
END OF RELEASE