EXHIBIT 99.1
FOR IMMEDIATE RELEASE
ARKANSAS BEST CORPORATION POSTS PROFIT
IN FOURTH QUARTER 2011 AND FULL YEAR 2011
(Fort Smith, Arkansas, January 27, 2012) — Arkansas Best Corporation (Nasdaq: ABFS) today announced fourth quarter 2011 earnings of $0.05 per share, compared to a fourth quarter 2010 loss of $0.12 per share. For full year 2011, Arkansas Best’s earnings were $0.23 per share versus a loss of $1.30 per share in 2010. These quarterly results include charges for a supplemental pension settlement of $0.03 per share related to a previously disclosed ABF executive retirement effective at the end of 2011.
“Arkansas Best’s profitable results for the fourth quarter and full year reflect an improving business environment as characterized by revenue growth in each of our operating segments. ABF’s full-year results represent an important step toward achieving our goal of returning to historical profitability levels. For our non-asset-based businesses, 2011 was a year of management focus and investment that laid the foundation for more significant revenue and profit growth in the future,” said Judy R. McReynolds, Arkansas Best President and Chief Executive Officer. “Our employees are to be commended for their successful efforts to address customer needs in an ever-evolving marketplace. They continue to deliver a unique combination of complementary service offerings and value.”
“Arkansas Best Corporation, through ABF and its non-asset-based operating subsidiaries, provides a comprehensive set of transportation and maintenance solutions to our customers,” said Ms. McReynolds. “The transportation industry is facing a number of challenges that will likely reduce the amount of capacity available to serve the marketplace. Because of the stability of our workforce and the capabilities we offer, our companies are well positioned to serve our customers in 2012 and in future years.”
Arkansas Best Corporation
Consolidated Results of Operations
Fourth Quarter 2011
· Revenue of $463.2 million, a per day increase of 5.9% over the prior year quarter of $441.1 million
· Net income, excluding pension settlement charges, of $2.1 million compared to a net loss of $3.1 million in the prior year quarter
Full Year 2011
· Revenue of $1.91 billion, a per day increase of 15.1% over 2010 revenue of $1.66 billion
· Net income, excluding pension settlement charges, of $6.8 million compared to a net loss of $32.6 million in 2010
New Segment Reporting
Beginning with the fourth quarter 2011 and full year 2011 financial reporting periods, Arkansas Best has expanded the financial details of its operating segments. This decision is necessitated by accounting rules that require public disclosure of business lines meeting certain operating profit thresholds. Details on the business activities represented by each segment are included in the footnote descriptions. On a combined basis, the non-asset-based business segments grew revenues and profits by approximately thirty percent in 2011. These emerging businesses represent tremendous growth opportunities for Arkansas Best Corporation.
Freight Transportation1
Results of Operations
Fourth Quarter 2011
· Revenue of $422.1 million compared to $405.8 million in fourth quarter 2010, a per day increase of 4.9%
· Tonnage per day decrease of 7.6% versus fourth quarter 2010
· Total billed revenue per hundredweight of $28.01 compared to $24.84 in fourth quarter 2010, an increase of 12.8%
1 This segment includes the results of operations of Arkansas Best’s largest subsidiary, ABF Freight System, Inc.® The financial results for Arkansas Best’s freight brokerage services, which were included in ABF’s reported results in prior periods, are now included in the “Truck Brokerage & Management” segment.
· Operating income, excluding pension settlement charges, of $2.5 million compared to an operating loss of $7.8 million in fourth quarter 2010
· Operating ratio, excluding pension settlement charges, of 99.4% compared to an operating ratio of 101.9% in fourth quarter 2010
Full Year 2011
· Revenue of $1.73 billion compared to $1.51 billion in 2010, a per-day increase of 14.3%
· Tonnage per day increase of 4.0% versus 2010
· Total billed revenue per hundredweight of $26.86 compared to $24.41 in 2010, an increase of 10.0%
· Operating income, excluding pension settlement charges, of $4.7 million compared to a 2010 operating loss of $59.6 million
· Operating ratio, excluding pension settlement charges, of 99.7% compared to an operating ratio of 103.9% in 2010
Truck Brokerage & Management2
Results of Operations
Full Year 2011
· Revenue of $25.4 million compared to $19.2 million in 2010, a per day increase of 32.2%
· An increase in total shipments of 17.1% compared to 2010
· Operating income of $1.9 million compared to operating income of $1.4 million in 2010
Emergency and Preventative Maintenance3
Results of Operations
Full Year 2011
· Revenue of $92.6 million compared to $74.9 million in 2010, a per day increase of 23.5%
· An increase in customer emergency and maintenance service events of 15.2% compared to 2010
· Operating income of $3.0 million compared to operating income of $2.7 million in 2010
2 This segment includes the results of operations of Arkansas Best’s freight brokerage services operating as FreightValue®. These results were included in the “ABF Freight System, Inc.” reporting segment in prior periods.
3 This segment includes the results of operations of Arkansas Best’s subsidiary FleetNet America, Inc. which provides roadside assistance and equipment services for commercial vehicles. These results were included in the “Other” reporting segment in prior periods.
Special Services Logistics4
Results of Operations
Full Year 2011
· Revenue of $85.6 million compared to $63.7 million in 2010, a per day increase of 34.4%
· An increase in total shipments of 57.1% compared to 2010
· Operating income of $2.7 million compared to operating income of $1.7 million in 2010
Consolidated Capital Expenditures
· Total net capital expenditures
· 2011 — $77 million, including approximately $64 million of revenue equipment
· 2012 — Estimated range of $80 million to $90 million. This includes approximately $55 million of revenue equipment, most all of which will be replacements. The remainder of expected capital expenditures includes the costs of other equipment, real estate and technology.
· Depreciation and amortization
· 2011 — $74 million
· 2012 — estimated range of $80 million to $85 million
Conference Call
Arkansas Best Corporation will host a conference call with company executives to discuss the 2011 fourth quarter and full year results. The call will be today, Friday, January 27, at 9:30 a.m. ET (8:30 a.m. CT). Interested parties are invited to listen by calling (800) 379-4140. Following the call, a recorded playback will be available through the end of the day on February 29, 2012. To listen to the playback, dial (800) 633-8284 or (402) 977-9140 (for international callers). The conference call ID for the playback is 21573493. The conference call and playback can also be accessed, through February 29, 2012, on Arkansas Best’s Web site at arkbest.com.
4 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. These results were included in the “Other” reporting segment in prior periods. Self-move services (U-Pack®) provided by ABF Freight System, Inc. will continue to be reported in the “Freight Transportation” segment.
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 services including: domestic and global transportation of less-than-truckload (“LTL”) and full load shipments, expedited and time-definite delivery solutions, freight brokerage, and oversight of roadside assistance and equipment services for commercial vehicles. More information is available at arkbest.com and abf.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 “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, recessionary economic conditions; competitive initiatives, pricing pressures and effect of volatility in fuel prices and the associated changes in fuel surcharges on securing increases in base freight rates; availability of fuel; the impact of any limitations on our customers’ access to adequate financial resources; availability and cost of capital; shifts in market demand; weather conditions; the performance and needs of industries served by Arkansas Best Corporation’s subsidiaries; future costs of operating expenses such as fuel and related taxes; self-insurance claims and insurance premium costs; relationships with employees, including unions; union and non-union employee wages and benefits, including changes in required contributions to multiemployer pension plans; governmental regulations and policies; future climate change legislation; costs of continuing investments in technology; the risks and costs of cyber incidents; the timing and amount of capital expenditures; the cost, integration and performance of any future acquisitions; 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 |
| Year Ended |
| |||||||||
|
| 2011 |
| 2010 |
| 2011 |
| 2010 |
| |||||
|
| (Unaudited) |
| |||||||||||
|
| ($ thousands, except share and per share data) |
| |||||||||||
|
|
|
|
|
|
|
|
|
| |||||
OPERATING REVENUES |
| $ | 463,241 |
| $ | 441,096 |
| $ | 1,907,609 |
| $ | 1,657,864 |
| |
|
|
|
|
|
|
|
|
|
| |||||
OPERATING EXPENSES AND COSTS |
| 461,606 |
| 447,790 |
| 1,897,850 |
| 1,712,409 |
| |||||
|
|
|
|
|
|
|
|
|
| |||||
OPERATING INCOME (LOSS) |
| 1,635 |
| (6,694 | ) | 9,759 |
| (54,545 | ) | |||||
|
|
|
|
|
|
|
|
|
| |||||
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
| |||||
Interest and dividend income |
| 286 |
| 274 |
| 1,069 |
| 1,194 |
| |||||
Interest expense and other related financing costs |
| (1,054 | ) | (999 | ) | (3,953 | ) | (2,852 | ) | |||||
Other, net |
| 1,067 |
| 848 |
| 2,618 |
| 2,406 |
| |||||
|
| 299 |
| 123 |
| (266 | ) | 748 |
| |||||
|
|
|
|
|
|
|
|
|
| |||||
INCOME (LOSS) BEFORE INCOME TAXES |
| 1,934 |
| (6,571 | ) | 9,493 |
| (53,797 | ) | |||||
|
|
|
|
|
|
|
|
|
| |||||
INCOME TAXES |
|
|
|
|
|
|
|
|
| |||||
Current provision (benefit) |
| (9,328 | ) | 1,281 |
| 104 |
| (9,919 | ) | |||||
Deferred provision (benefit) |
| 9,858 |
| (4,735 | ) | 3,056 |
| (11,457 | ) | |||||
|
| 530 |
| (3,454 | ) | 3,160 |
| (21,376 | ) | |||||
|
|
|
|
|
|
|
|
|
| |||||
NET INCOME (LOSS) |
| 1,404 |
| (3,117 | ) | 6,333 |
| (32,421 | ) | |||||
|
|
|
|
|
|
|
|
|
| |||||
LESS: | NONCONTROLLING INTEREST IN NET INCOME (LOSS) OF SUBSIDIARY |
| — |
| (8 | ) | 174 |
| 272 |
| ||||
|
|
|
|
|
|
|
|
|
| |||||
NET INCOME (LOSS) ATTRIBUTABLE TO ARKANSAS BEST CORPORATION |
| $ | 1,404 |
| $ | (3,109 | ) | $ | 6,159 |
| $ | (32,693 | ) | |
|
|
|
|
|
|
|
|
|
| |||||
EARNINGS (LOSS) PER COMMON SHARE(1) |
|
|
|
|
|
|
|
|
| |||||
Basic |
| $ | 0.05 |
| $ | (0.12 | ) | $ | 0.23 |
| $ | (1.30 | ) | |
Diluted |
| 0.05 |
| (0.12 | ) | 0.23 |
| (1.30 | ) | |||||
|
|
|
|
|
|
|
|
|
| |||||
AVERAGE COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
| |||||
Basic |
| 25,421,887 |
| 25,223,986 |
| 25,403,073 |
| 25,187,723 |
| |||||
Diluted |
| 25,421,887 |
| 25,223,986 |
| 25,403,073 |
| 25,187,723 |
| |||||
|
|
|
|
|
|
|
|
|
| |||||
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 |
| $ | 1,404 |
| $ | (3,109 | ) | $ | 6,159 |
| $ | (32,693 | ) |
|
|
|
|
|
|
|
|
|
| ||||
EFFECT OF UNVESTED RESTRICTED STOCK AWARDS(1) |
| (59 | ) | (29 | ) | (249 | ) | (69 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
ADJUSTED NET INCOME (LOSS) FOR CALCULATING EARNINGS PER COMMON SHARE |
| $ | 1,345 |
| $ | (3,138 | ) | $ | 5,910 |
| $ | (32,762 | ) |
ARKANSAS BEST CORPORATION
CONSOLIDATED BALANCE SHEETS
|
| December 31 |
| December 31 |
| ||
|
| (Unaudited) |
| Note |
| ||
|
| ($ thousands, except share data) |
| ||||
ASSETS |
|
|
|
|
| ||
|
|
|
|
|
| ||
CURRENT ASSETS |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 141,295 |
| $ | 102,578 |
|
Short-term investments |
| 33,960 |
| 39,288 |
| ||
Restricted cash equivalents and short-term investments |
| 52,693 |
| 51,661 |
| ||
Accounts receivable, less allowances (2011 – $5,957; 2010 – $3,944) |
| 149,665 |
| 145,426 |
| ||
Other accounts receivable, less allowances (2011 – $1,226; 2010 – $1,254) |
| 7,538 |
| 8,157 |
| ||
Prepaid expenses |
| 11,363 |
| 10,258 |
| ||
Deferred income taxes |
| 35,481 |
| 32,681 |
| ||
Prepaid and refundable income taxes |
| 6,905 |
| 3,958 |
| ||
Other |
| 6,186 |
| 5,677 |
| ||
TOTAL CURRENT ASSETS |
| 445,086 |
| 399,684 |
| ||
|
|
|
|
|
| ||
PROPERTY, PLANT AND EQUIPMENT |
|
|
|
|
| ||
Land and structures |
| 242,120 |
| 243,981 |
| ||
Revenue equipment |
| 569,303 |
| 530,424 |
| ||
Service, office and other equipment |
| 174,740 |
| 163,732 |
| ||
Leasehold improvements |
| 21,426 |
| 21,890 |
| ||
|
| 1,007,589 |
| 960,027 |
| ||
Less allowances for depreciation and amortization |
| 592,171 |
| 552,781 |
| ||
|
| 415,418 |
| 407,246 |
| ||
OTHER ASSETS |
| 55,716 |
| 54,021 |
| ||
|
|
|
|
|
| ||
|
| $ | 916,220 |
| $ | 860,951 |
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
|
|
|
|
|
| ||
CURRENT LIABILITIES |
|
|
|
|
| ||
Bank overdraft and drafts payable |
| $ | 20,836 |
| $ | 13,023 |
|
Accounts payable |
| 66,517 |
| 62,134 |
| ||
Income taxes payable |
| 169 |
| 196 |
| ||
Accrued expenses |
| 151,887 |
| 144,543 |
| ||
Current portion of long-term debt |
| 24,262 |
| 14,001 |
| ||
TOTAL CURRENT LIABILITIES |
| 263,671 |
| 233,897 |
| ||
|
|
|
|
|
| ||
LONG-TERM DEBT, less current portion |
| 46,750 |
| 42,657 |
| ||
|
|
|
|
|
| ||
PENSION AND POSTRETIREMENT LIABILITIES |
| 106,578 |
| 65,421 |
| ||
|
|
|
|
|
| ||
OTHER LIABILITIES |
| 13,751 |
| 19,827 |
| ||
|
|
|
|
|
| ||
DEFERRED INCOME TAXES |
| 19,855 |
| 19,405 |
| ||
|
|
|
|
|
| ||
STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
Common stock, $0.01 par value, authorized 70,000,000 shares; issued 2011: 27,099,819 shares; 2010: 26,934,847 shares |
| 271 |
| 269 |
| ||
Additional paid-in capital |
| 286,408 |
| 281,169 |
| ||
Retained earnings |
| 295,108 |
| 292,129 |
| ||
Treasury stock, at cost, 1,677,932 shares |
| (57,770 | ) | (57,770 | ) | ||
Accumulated other comprehensive loss |
| (58,402 | ) | (36,053 | ) | ||
TOTAL STOCKHOLDERS’ EQUITY |
| 465,615 |
| 479,744 |
| ||
|
|
|
|
|
| ||
|
| $ | 916,220 |
| $ | 860,951 |
|
Note: The balance sheet at December 31, 2010 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 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
| (Unaudited) |
| ||||
|
| ($ thousands) |
| ||||
OPERATING ACTIVITIES |
|
|
|
|
| ||
Net income (loss) |
| $ | 6,333 |
| $ | (32,421 | ) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
| ||
Depreciation and amortization |
| 73,742 |
| 71,565 |
| ||
Other amortization |
| 233 |
| 267 |
| ||
Pension settlement expense |
| 1,125 |
| 178 |
| ||
Share-based compensation expense |
| 6,450 |
| 5,690 |
| ||
Provision for losses on accounts receivable |
| 2,394 |
| 868 |
| ||
Deferred income tax provision (benefit) |
| 3,056 |
| (11,457 | ) | ||
Gain on sales of property and equipment |
| (2,360 | ) | (981 | ) | ||
Changes in operating assets and liabilities: |
|
|
|
|
| ||
Receivables |
| (6,067 | ) | (32,211 | ) | ||
Prepaid expenses |
| (1,105 | ) | 144 |
| ||
Other assets |
| (635 | ) | (1,568 | ) | ||
Income taxes |
| (776 | ) | 21,016 |
| ||
Accounts payable, accrued expenses and other liabilities |
| 18,462 |
| 5,197 |
| ||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
| 100,852 |
| 26,287 |
| ||
|
|
|
|
|
| ||
INVESTING ACTIVITIES |
|
|
|
|
| ||
Purchases of property, plant and equipment, net of capital leases and notes payable |
| (53,227 | ) | (11,422 | ) | ||
Proceeds from sales of property and equipment |
| 7,062 |
| 5,879 |
| ||
Purchases of short-term investments |
| (59,718 | ) | (65,171 | ) | ||
Proceeds from sales of short-term investments |
| 64,995 |
| 119,744 |
| ||
Capitalization of internally developed software and other |
| (5,295 | ) | (4,355 | ) | ||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES |
| (46,183 | ) | 44,675 |
| ||
|
|
|
|
|
| ||
FINANCING ACTIVITIES |
|
|
|
|
| ||
Payments on long-term debt |
| (16,056 | ) | (8,077 | ) | ||
Proceeds from issuance of long-term debt |
| — |
| 11,416 |
| ||
Acquisition of noncontrolling interest |
| (4,084 | ) | — |
| ||
Net change in bank overdraft and other |
| 7,811 |
| (8,918 | ) | ||
Change in restricted cash equivalents and short-term investments |
| (1,032 | ) | (804 | ) | ||
Deferred financing costs |
| (174 | ) | (35 | ) | ||
Payment of common stock dividends |
| (3,180 | ) | (3,126 | ) | ||
Proceeds from the exercise of stock options |
| 763 |
| 1,828 |
| ||
NET CASH USED IN FINANCING ACTIVITIES |
| (15,952 | ) | (7,716 | ) | ||
|
|
|
|
|
| ||
NET INCREASE IN CASH AND CASH EQUIVALENTS |
| 38,717 |
| 63,246 |
| ||
Cash and cash equivalents at beginning of period |
| 102,578 |
| 39,332 |
| ||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
| $ | 141,295 |
| $ | 102,578 |
|
|
|
|
|
|
| ||
NONCASH INVESTING ACTIVITIES |
|
|
|
|
| ||
Accruals for equipment received |
| $ | 338 |
| $ | — |
|
Equipment financed under capital leases and notes payable |
| $ | 30,410 |
| $ | 36,343 |
|
ARKANSAS BEST CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
| Three Months Ended |
| Year Ended |
| ||||||||
|
| 2011 |
| 2010 |
| 2011 |
| 2010 |
| ||||
|
| (Unaudited) |
| ||||||||||
|
| ($ thousands, except per share data) |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||||
FREIGHT TRANSPORTATION |
|
|
|
|
|
|
|
|
| ||||
Operating Income (Loss) |
|
|
|
|
|
|
|
|
| ||||
Amounts on a GAAP basis |
| $ | 1,340 |
| $ | (7,750 | ) | $ | 3,609 |
| $ | (59,740 | ) |
Pension settlement expense, pre-tax |
| 1,125 |
| — |
| 1,125 |
| 178 |
| ||||
Non-GAAP amounts |
| $ | 2,465 |
| $ | (7,750 | ) | $ | 4,734 |
| $ | (59,562 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Operating Ratio |
|
|
|
|
|
|
|
|
| ||||
Amounts on a GAAP basis |
| 99.7 | % | 101.9 | % | 99.8 | % | 103.9 | % | ||||
Pension settlement expense, pre-tax |
| 0.3 |
| — |
| 0.1 |
| — |
| ||||
Non-GAAP amounts |
| 99.4 | % | 101.9 | % | 99.7 | % | 103.9 | % | ||||
|
|
|
|
|
|
|
|
|
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ARKANSAS BEST CORPORATION — CONSOLIDATED |
|
|
|
|
|
|
|
|
| ||||
Operating Income (Loss) |
|
|
|
|
|
|
|
|
| ||||
Amounts on a GAAP basis |
| $ | 1,635 |
| $ | (6,694 | ) | $ | 9,759 |
| $ | (54,545 | ) |
Pension settlement expense, pre-tax |
| 1,125 |
| — |
| 1,125 |
| 178 |
| ||||
Non-GAAP amounts |
| $ | 2,760 |
| $ | (6,694 | ) | $ | 10,884 |
| $ | (54,367 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Net Income (Loss) Attributable to Arkansas Best Corporation |
|
|
|
|
|
|
|
|
| ||||
Amounts on a GAAP basis |
| $ | 1,404 |
| $ | (3,109 | ) | $ | 6,159 |
| $ | (32,693 | ) |
Pension settlement expense, after-tax |
| 684 |
| — |
| 684 |
| 108 |
| ||||
Non-GAAP amounts |
| $ | 2,088 |
| $ | (3,109 | ) | $ | 6,843 |
| $ | (32,585 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Diluted Earnings (Loss) Per Share |
|
|
|
|
|
|
|
|
| ||||
Amounts on a GAAP basis |
| $ | 0.05 |
| $ | (0.12 | ) | $ | 0.23 |
| $ | (1.30 | ) |
Pension settlement expense, after-tax |
| 0.03 |
| — |
| 0.03 |
| — |
| ||||
Non-GAAP amounts |
| $ | 0.08 |
| $ | (0.12 | ) | $ | 0.26 |
| $ | (1.30 | ) |
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.
ARKANSAS BEST CORPORATION
FINANCIAL STATEMENT OPERATING SEGMENT DATA
AND OPERATING RATIOS
|
| Three Months Ended |
|
|
| Year Ended |
|
|
| ||||||||||||
|
| 2011 |
|
|
| 2010 |
|
|
| 2011 |
|
|
| 2010 |
|
|
| ||||
|
| (Unaudited) |
| ||||||||||||||||||
|
|
|
| ||||||||||||||||||
OPERATING REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Freight Transportation(1) |
| $ | 422,051 |
|
|
| $ | 405,771 |
|
|
| $ | 1,730,773 |
|
|
| $ | 1,514,108 |
|
|
|
Truck Brokerage & Management(2) |
| 6,942 |
|
|
| 5,178 |
|
|
| 25,429 |
|
|
| 19,241 |
|
|
| ||||
Emergency and Preventative Maintenance(3) |
| 22,136 |
|
|
| 19,666 |
|
|
| 92,554 |
|
|
| 74,927 |
|
|
| ||||
Special Services Logistics(4) |
| 16,732 |
|
|
| 13,873 |
|
|
| 85,611 |
|
|
| 63,733 |
|
|
| ||||
Other revenues and eliminations |
| (4,620 | ) |
|
| (3,392 | ) |
|
| (26,758 | ) |
|
| (14,145 | ) |
|
| ||||
Total consolidated operating revenues |
| $ | 463,241 |
|
|
| $ | 441,096 |
|
|
| $ | 1,907,609 |
|
|
| $ | 1,657,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
OPERATING EXPENSES AND COSTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Freight Transportation(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Salaries, wages and benefits |
| $ | 254,073 |
| 60.2 | % | $ | 259,925 |
| 64.1 | % | $ | 1,061,213 |
| 61.3 | % | $ | 1,004,267 |
| 66.3 | % |
Fuel, supplies and expenses |
| 80,391 |
| 19.0 |
| 70,298 |
| 17.3 |
| 333,779 |
| 19.3 |
| 262,420 |
| 17.3 |
| ||||
Operating taxes and licenses |
| 11,133 |
| 2.6 |
| 11,101 |
| 2.7 |
| 45,469 |
| 2.6 |
| 43,539 |
| 2.9 |
| ||||
Insurance |
| 6,360 |
| 1.5 |
| 3,771 |
| 0.9 |
| 24,490 |
| 1.4 |
| 18,745 |
| 1.2 |
| ||||
Communications and utilities |
| 3,649 |
| 0.9 |
| 3,663 |
| 0.9 |
| 15,118 |
| 0.9 |
| 14,655 |
| 1.0 |
| ||||
Depreciation and amortization |
| 18,765 |
| 4.4 |
| 17,108 |
| 4.2 |
| 70,810 |
| 4.1 |
| 68,695 |
| 4.5 |
| ||||
Rents and purchased transportation |
| 43,816 |
| 10.4 |
| 45,008 |
| 11.1 |
| 169,212 |
| 9.8 |
| 154,119 |
| 10.2 |
| ||||
Gain on sale of property and equipment |
| (426 | ) | (0.1 | ) | (840 | ) | (0.2 | ) | (2,370 | ) | (0.1 | ) | (1,338 | ) | (0.1 | ) | ||||
Pension settlement expense |
| 1,125 |
| 0.3 |
| — |
| — |
| 1,125 |
| 0.1 |
| 178 |
| — |
| ||||
Other |
| 1,825 |
| 0.5 |
| 3,487 |
| 0.9 |
| 8,318 |
| 0.4 |
| 8,568 |
| 0.6 |
| ||||
|
| 420,711 |
| 99.7 | % | 413,521 |
| 101.9 | % | 1,727,164 |
| 99.8 | % | 1,573,848 |
| 103.9 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Truck Brokerage & Management(2) |
| 6,619 |
|
|
| 4,905 |
|
|
| 23,539 |
|
|
| 17,868 |
|
|
| ||||
Emergency and Preventative Maintenance(3) |
| 21,999 |
|
|
| 19,050 |
|
|
| 89,572 |
|
|
| 72,208 |
|
|
| ||||
Special Services Logistics(4) |
| 16,780 |
|
|
| 13,915 |
|
|
| 82,893 |
|
|
| 62,014 |
|
|
| ||||
Other expenses and eliminations |
| (4,503 | ) |
|
| (3,601 | ) |
|
| (25,318 | ) |
|
| (13,529 | ) |
|
| ||||
Total consolidated operating expenses and costs |
| $ | 461,606 |
|
|
| $ | 447,790 |
|
|
| $ | 1,897,850 |
|
|
| $ | 1,712,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
OPERATING INCOME (LOSS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Freight Transportation(1) |
| $ | 1,340 |
|
|
| $ | (7,750 | ) |
|
| $ | 3,609 |
|
|
| $ | (59,740 | ) |
|
|
Truck Brokerage & Management(2) |
| 323 |
|
|
| 273 |
|
|
| 1,890 |
|
|
| 1,373 |
|
|
| ||||
Emergency and Preventative Maintenance(3) |
| 137 |
|
|
| 616 |
|
|
| 2,982 |
|
|
| 2,719 |
|
|
| ||||
Special Services Logistics(4) |
| (48 | ) |
|
| (42 | ) |
|
| 2,718 |
|
|
| 1,719 |
|
|
| ||||
Other income (loss) and eliminations |
| (117 | ) |
|
| 209 |
|
|
| (1,440 | ) |
|
| (616 | ) |
|
| ||||
Total consolidated operating income (loss) |
| $ | 1,635 |
|
|
| $ | (6,694 | ) |
|
| $ | 9,759 |
|
|
| $ | (54,545 | ) |
|
|
(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 transportation brokerage services operating as FreightValue®. |
(3) | This segment includes the results of operations of Arkansas Best’s roadside vehicle assistance and commercial equipment services subsidiary FleetNet America, Inc. |
(4) | 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. |
ARKANSAS BEST CORPORATION
OPERATING STATISTICS
|
| Three Months Ended December 31 |
| Year Ended December 31 |
| ||||||||||||
|
| 2011 |
| 2010 |
| % Change |
| 2011 |
| 2010 |
| % Change |
| ||||
|
| (Unaudited) |
| ||||||||||||||
Freight Transportation (1) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Workdays |
| 61.0 |
| 61.5 |
|
|
| 252.0 |
| 252.0 |
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Billed Revenue (2) / CWT |
| $ | 28.01 |
| $ | 24.84 |
| 12.8 | % | $ | 26.86 |
| $ | 24.41 |
| 10.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Billed Revenue (2) / Shipment |
| $ | 371.34 |
| $ | 343.35 |
| 8.2 | % | $ | 362.11 |
| $ | 332.66 |
| 8.9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Shipments |
| 1,101,893 |
| 1,152,854 |
| (4.4 | )% | 4,745,404 |
| 4,511,600 |
| 5.2 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Shipments / Day |
| 18,064 |
| 18,746 |
| (3.6 | )% | 18,831 |
| 17,903 |
| 5.2 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Tonnage (tons) |
| 730,426 |
| 796,922 |
| (8.3 | )% | 3,198,292 |
| 3,074,285 |
| 4.0 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Tons / Day |
| 11,974 |
| 12,958 |
| (7.6 | )% | 12,692 |
| 12,200 |
| 4.0 | % |
(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.
Truck Brokerage & Management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments |
| 3,206 |
| 2,704 |
| 18.6 | % | 11,885 |
| 10,147 |
| 17.1 | % |
Emergency and Preventative Maintenance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Events |
| 60,041 |
| 61,983 |
| (3.1 | )% | 273,167 |
| 237,142 |
| 15.2 | % |
Special Service Logistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments |
| 4,111 |
| 3,333 |
| 23.3 | % | 19,915 |
| 12,676 |
| 57.1 | % |
Contact: |
| Mr. David Humphrey, Vice President, Investor Relations and Corporate Communications |
|
| Telephone: (479) 785-6200 |
END OF RELEASE