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ArcBest Corporation Announces First Quarter 2014 Results

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FOR IMMEDIATE RELEASE

Investor Relations Contact: David Humphrey
Title: Vice President – Investor Relations
Email: dhumphrey@arcb.com
Phone: 479-785-6200

Media Contact: Kathy Fieweger
Title: Chief Marketing Officer
Email: kfieweger@arcb.com
Phone: 479-719-4358

ArcBest Corporationsm Announces First Quarter 2014 Results

  • First quarter 2014 net loss of $5.2 million ($0.20 per share), or $2.9 million ($0.11 per share) excluding pension settlement charges
  • Excluding pension settlement expense and the estimated impact of severe weather, ABF FreightSM would have been profitable in first quarter 2014
  • Panther reports strong operating profit compared to a loss in first quarter 2013
  • Emerging businesses continue pattern of revenue growth, representing 27% of total revenue
  • Corporate name change and logo system strengthens ArcBest’s identity in the logistics marketplace

(Fort Smith, Arkansas, May 1, 2014) – ArcBest Corporation (Nasdaq: ARCB), today reported improved first quarter 2014 results reflecting revenue growth and increased business levels at ABF Freight despite a significant impact from severe winter weather. Revenue at ArcBest’s emerging businesses, including Panther Premium Logisticssm, ABF Logisticssm and FleetNet America®, rose sharply from year-ago levels. Overall first quarter operating results improved compared to the same period last year, highlighted by significant changes at ABF Freight, Panther and FleetNet. 

ArcBest, formerly known as Arkansas Best Corporation and previously trading under Nasdaq stock symbol ABFS, yesterday announced its new corporate name, trading symbol, logo system and advertising campaign to strengthen its identity as a holistic provider of transportation and logistics solutions.

ArcBest’s first quarter 2014 revenue was $577.9 million compared to revenue of $520.7 million in the first quarter of 2013. The first quarter net loss was $5.2 million, or $2.9 million and $0.11 per share after excluding pension settlement charges, compared to a first quarter 2013 net loss of $13.4 million, or $0.52 per share.

The estimated operating income impact of first quarter severe weather at ABF Freight was approximately $10.5 million. ABF Freight’s pre-tax first quarter pension settlement charges equaled $2.9 million. Thus, ABF Freight’s $12.2 million reported first quarter 2014 operating loss was adversely affected by the $13.4 million total of these two items. Excluding these items, ABF Freight would have generated an operating profit in this year’s first quarter compared to a $22.5 million operating loss in the first quarter of 2013.

During the first quarter, ArcBest’s growing, emerging businesses equaled 27% of total consolidated revenue compared to 23% during the same period last year. On a combined basis, the non-asset-based businesses generated first quarter 2014 earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $7.9 million, an increase of approximately 150% compared to EBITDA in the first quarter of 2013.

“This was a challenging quarter for our industry as severe weather across the nation disrupted operations,” said ArcBest President and Chief Executive Officer Judy R. McReynolds. “Excluding that impact, our companies performed well, with ABF Freight overcoming the previous year’s loss, Panther posting strong operating profit and FleetNet experiencing record business levels on many days. Our improved success in offering customers holistic solutions and one-stop shopping for a variety of logistics challenges is helping distinguish us in the marketplace. This provides additional opportunities to enhance the relationships we have with existing customers.”

ABF Freight

During this year’s first quarter, business level trends at ABF Freight were positive versus last year and progressively increased in each month of the quarter. As a result, capacity utilization improved and the lower cost structure resulting from ABF Freight’s recent labor contract contributed to more positive first quarter financial results. 

Total first quarter revenue per hundredweight improved by 0.7% over last year. Year-over-year changes in freight profile and account mix continue to impact comparisons of this pricing metric.  The improving economy and tightened industry capacity have contributed to a positive pricing environment. As previously announced, ABF Freight implemented a general rate increase during the last full week of March.

The previously announced consolidation of smaller ABF Freight facilities began in the second half of 2013 with the initial closing of 8 terminals. During the first quarter of this year, 22 additional ABF Freight facilities were consolidated by mid-March. Based on statistics and data available in the first several weeks following implementation, the operational efficiencies and increased freight density expected to result from these network modifications have been exceeded. Annual savings associated with these ABF Freight network changes, which will fluctuate based on business levels, are currently estimated to be in a range of $10 million to $12 million. Additionally, the resulting improvements of advertised transit times in many of these lanes are contributing to increased business from active ABF customers.  

Emerging, Non-Asset-Based Businesses

At Panther Premium Logistics, strength across the customer markets we serve resulted in strong demand for Panther’s services and profitable shipment pricing. During the first quarter, Panther’s revenue increased by 36% and it generated operating income that reflects a significant improvement compared to Panther’s operating loss during the first three months of last year.

Revenue growth at the remainder of ArcBest’s emerging non-asset-based businesses continued in the first quarter. FleetNet America increased quarterly revenue by 28% and nearly doubled first quarter profitability versus last year. ABF Logistics’ revenue improved by 37% and ABF Movingsm experienced a 9% revenue increase. Continued investments for the future in personnel, information technology and other resources impacted the operating results at both ABF Logistics and ABF Moving.

Closing Comments

“Today marks an exciting new era for our organization,” McReynolds said. “The new name, logo system and advertising campaign we unveiled yesterday allow us to more clearly communicate our total value proposition to our customers, our employees and our shareholders through one unified identity under the ArcBest umbrella.”

McReynolds added that many teams throughout the organization are focused on providing customers with more easily accessible solutions through a single point of contact.

“As we look to the future, we are certainly glad to have one of the most severe winters in history behind us. We continue to be well-positioned to better serve our customers with a variety of solutions to their complex problems. Our customers tell us that we are creative problem solvers who go above and beyond to get the job done, as our new ad campaign, The Skill & The Willsm, embodies.”

 

 

Conference Call

ArcBest Corporation will host a conference call with company executives to discuss the 2014 first quarter results. The call will be today, Thursday, May 1, at 5:00 p.m. ET (4:00 p.m. CT). Interested parties are invited to listen by calling (800) 736-4594. Following the call, a recorded playback will be available through the end of the day on May 31, 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 21713488. The conference call and playback can also be accessed, through May 31, 2014 on ArcBest’s website at arcb.com.

About ArcBest

ArcBest Corporationsm (Nasdaq: ARCB) solves complex logistics and transportation challenges. Our companies and brands – ABF Freightsm, ABF Logisticssm, Panther Premium Logisticssm, FleetNet America®, U-Pack® and ArcBest Technologies – apply the skill and the will with every shipment and supply chain solution, household move or vehicle repair. ArcBest finds a way.

For more information, visit arcb.com, abf.com, pantherpremium.com, fleetnetamerica.com and upack.com. ArcBest Corporationsm. The Skill & The Willsm.

Forward-Looking Statements

Certain statements and information in this press release concerning results for the three months ended March 31, 2014 may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “foresee,” “intend,” “may,” “plan,” “predict,” “project,” “scheduled,” “should,” “would” and similar expressions and the negatives of such terms are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effect on us. Although management believes that these forward-looking statements are reasonable, as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and management’s present expectations or projections. Important factors that could cause our actual results to differ materially from those in the forward-looking statements include, but are not limited to: general economic conditions and related shifts in market demand that impact the performance and needs of industries served by ArcBest Corporation’s subsidiaries and/or limit our customers’ access to adequate financial resources; unfavorable terms of, or the inability to reach agreement on, future collective bargaining agreements or a workforce stoppage by our employees covered under ABF Freight’s collective bargaining agreement; 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; 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 operation of our business or the use of information technology platforms in our business; timing and amount of capital expenditures, increased prices for and decreased availability of new revenue equipment and decreases in value of used revenue equipment; future costs of operating expenses such as maintenance and fuel and related taxes; self-insurance claims and insurance premium costs; governmental regulations and policies, including environmental laws and regulations; potential impairment of goodwill and intangible assets; the impact of our brands 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 ArcBest Corporation’s Securities and Exchange Commission public filings. 

For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof.  We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

The following tables show financial data and operating statistics on ArcBest Corporationsm and its subsidiary companies.

 

 

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

Three Months Ended

March 31

 

 

2014

 

2013

 

(Unaudited)

 

($ thousands, except share and per share data)

 

OPERATING REVENUES

$

577,904

 

$

520,687

 

 

 

 

 

 

OPERATING EXPENSES

 

586,606

 

 

544,037

 

 

 

 

 

 

OPERATING LOSS

 

(8,702)

 

 

(23,350)

 

 

 

 

 

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

Interest and dividend income

 

190

 

 

171

Interest expense and other related financing costs

 

(808)

 

 

(1,207)

Other, net

 

365

 

 

1,083

 

 

(253)

 

 

47

 

 

 

 

 

 

LOSS BEFORE INCOME TAXES

 

(8,955)

 

 

(23,303)

 

 

 

 

 

 

INCOME TAX BENEFIT

 

(3,762)

 

 

(9,908)

 

 

 

 

 

 

NET LOSS

$

(5,193)

 

$

(13,395)

 

 

 

 

 

 

LOSS PER COMMON SHARE(1)

 

 

 

 

 

Basic

$

(0.20)

 

$

(0.52)

Diluted

$

(0.20)

 

$

(0.52)

 

 

 

 

 

 

AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

Basic

 

25,876,928

 

 

25,638,333

Diluted

 

25,876,928

 

 

25,638,333

 

 

 

 

 

 

CASH DIVIDENDS DECLARED PER COMMON SHARE

$

0.03

 

$

0.03

 

 

(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 LOSS

$

(5,193)

 

$

(13,395)

 

 

 

 

 

 

EFFECT OF UNVESTED RESTRICTED STOCK AWARDS(1)

 

(39)

 

 

(38)

 

 

 

 

 

 

ADJUSTED NET LOSS FOR  CALCULATING

    LOSS PER COMMON SHARE

$

(5,232)

 

$

(13,433)

 

 

 

 

 

 

 

 

 

 

 

ARCBEST CORPORATION

CONSOLIDATED BALANCE SHEETS

 

March 31

2014

 

December 31

2013

 

(Unaudited)

 

Note

 

($ thousands, except share data)

ASSETS

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Cash and cash equivalents

$

95,728

 

$

105,354

Short-term investments

 

35,960

 

 

35,906

Restricted cash, cash equivalents, and short-term investments

 

1,903

 

 

1,902

Accounts receivable, less allowances (2014 – $4,516; 2013 – $4,533)

 

221,870

 

 

202,540

Other accounts receivable, less allowances (2014 – $1,441; 2013 – $1,422)

 

6,940

 

 

7,272

Prepaid expenses

 

22,178

 

 

19,016

Deferred income taxes

 

36,018

 

 

37,482

Prepaid and refundable income taxes

 

4,205

 

 

2,061

Other

 

8,144

 

 

6,952

        TOTAL CURRENT ASSETS

 

432,946

 

 

418,485

 

 

 

 

 

 

PROPERTY, PLANT AND EQUIPMENT

 

 

 

 

 

Land and structures

 

248,310

 

 

245,805

Revenue equipment

 

588,935

 

 

589,902

Service, office, and other equipment

 

124,273

 

 

124,303

Software

 

112,896

 

 

110,998

Leasehold improvements

 

23,637

 

 

23,582

 

 

1,098,051

 

 

1,094,590

Less allowances for depreciation and amortization

 

713,493

 

 

700,193

 

 

384,558

 

 

394,397

GOODWILL

 

76,448

 

 

76,448

INTANGIBLE ASSETS, NET

 

74,344

 

 

75,387

OTHER ASSETS

 

53,349

 

 

52,609

 

 

 

 

 

 

 

$

1,021,645

 

$

1,017,326

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Bank overdraft and drafts payable

$

15,009

 

$

13,609

Accounts payable

 

110,364

 

 

89,091

Income taxes payable

 

162

 

 

1,782

Accrued expenses

 

171,433

 

 

173,622

Current portion of long-term debt

 

30,725

 

 

31,513

TOTAL CURRENT LIABILITIES

 

327,693

 

 

309,617

 

 

 

 

 

 

LONG-TERM DEBT, less current portion

 

74,355

 

 

81,332

PENSION AND POSTRETIREMENT LIABILITIES

 

34,587

 

 

26,847

OTHER LIABILITIES

 

13,217

 

 

15,041

DEFERRED INCOME TAXES

 

57,596

 

 

64,028

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

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

    issued 2014: 27,547,487 shares; 2013: 27,507,241 shares

 

275

 

 

275

Additional paid-in-capital

 

298,635

 

 

296,133

Retained earnings

 

290,723

 

 

296,735

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

 

(57,770)

 

 

(57,770)

Accumulated other comprehensive loss

 

(17,666)

 

 

(14,912)

TOTAL STOCKHOLDERS’ EQUITY

 

514,197

 

 

520,461

 

 

 

 

 

 

 

$

1,021,645

 

$

1,017,326

Note: The balance sheet at December 31, 2013 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.

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

Three Months Ended

March 31

 

 

2014

 

2013

 

 

(Unaudited)

 

 

($ thousands)

 

OPERATING ACTIVITIES

 

 

 

 

 

 

Net loss

$

(5,193)

 

$

(13,395)

 

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

 

 

 

 

 

 

Depreciation and amortization

 

19,410

 

 

22,150

 

Amortization of intangibles

 

1,043

 

 

1,043

 

Pension settlement expense

 

3,691

 

 

 

Share-based compensation expense

 

1,568

 

 

1,303

 

Provision for losses on accounts receivable

 

84

 

 

969

 

Deferred income tax benefit

 

(3,493)

 

 

(8,756)

 

Gain on sale of property and equipment

 

(214)

 

 

(212)

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Receivables

 

(19,268)

 

 

(9,886)

 

Prepaid expenses

 

(3,163)

 

 

(2,042)

 

Other assets

 

(1,710)

 

 

(964)

 

Income taxes

 

(3,610)

 

 

(1,548)

 

Accounts payable, accrued expenses, and other liabilities

 

17,065

 

 

11,124

 

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

 

6,210

 

 

(214)

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

Purchases of property, plant and equipment, net of financings

 

(8,654)

 

 

(3,440)

 

Proceeds from sales of property and equipment

 

746

 

 

842

 

Purchases of short-term investments

 

 

 

(3,752)

 

Proceeds from sales of short-term investments

 

 

 

2,940

 

Capitalization of internally developed software and other

 

(1,879)

 

 

(2,090)

 

NET CASH USED IN INVESTING ACTIVITIES

 

(9,787)

 

 

(5,500)

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

Payments on long-term debt

 

(7,765)

 

 

(10,955)

 

Net changes in bank overdraft and other

 

1,400

 

 

(1,909)

 

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

 

(1)

 

 

3,754

 

Payment of common stock dividends

 

(819)

 

 

(807)

 

Proceeds from the exercise of stock options

 

1,136

 

 

 

NET CASH USED IN FINANCING ACTIVITIES

 

(6,049)

 

 

(9,917)

 

 

 

 

 

 

 

 

NET DECREASE IN CASH AND CASH EQUIVALENTS           

 

(9,626)

 

 

(15,631)

 

Cash and cash equivalents at beginning of period

 

105,354

 

 

90,702

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$

95,728

 

$

75,071

 

 

 

 

 

 

 

 

NONCASH INVESTING ACTIVITIES

 

 

 

 

 

 

Accruals for equipment received

$

102

 

$

173

 

                           

 

 

 

 

 

 

 

 

 

 




 

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

Three Months Ended

March 31

 

2014

 

2013

 

(Unaudited)

 

($ thousands)

ArcBest Corporation – Consolidated

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

 

 

 

Amounts on a GAAP basis

$

(5,193)

 

$

(13,395)

Pension settlement expense, after-tax(1)

 

2,255

 

 

Non-GAAP amounts

$

(2,938)

 

$

(13,395)

 

 

 

 

 

 

Diluted Loss Per Share

 

 

 

 

 

Amounts on a GAAP basis

$

(0.20)

 

$

(0.52)

Pension settlement expense, after-tax(1)

 

0.09

 

 

Non-GAAP amounts

$

(0.11)

 

$

(0.52)

 

 

 

 

 

 

ArcBest Corporation – Consolidated

 

 

 

 

 

 

 

 

 

 

 

Earnings Before Interest, Taxes, Depreciation, and Amortization

 

 

 

 

 

Net loss

$

(5,193)

 

$

(13,395)

Interest expense

 

808

 

 

1,207

Income tax benefit

 

(3,762)

 

 

(9,908)

Depreciation and amortization

 

20,453

 

 

23,193

Amortization of share-based compensation

 

1,568

 

 

1,303

Amortization of actuarial losses and pension settlement expense(1)

 

4,268

 

 

2,912

EBITDA

$

18,142

 

$

5,312

 

 

 

 

 

 

  1. The three months ended March 31, 2014 includes pension settlement expense of $3.7 million (pre-tax) related to lump-sum distributions from the Company’s nonunion defined benefit pension plan and the purchase by the plan of a nonparticipating annuity contract to settle vested benefits of participants and beneficiaries who were receiving monthly benefit payments as of the January 2014 contract purchase date.

 

 

Three Months Ended

March 31

2014

 

Three Months Ended

March 31

2013

 

Operating

Income

(Loss)

Depreciation and Amortization

EBITDA

 

Operating Income

(Loss)

Depreciation and Amortization

EBITDA

 

(Unaudited)

Non-Asset-Based Segments

($ thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium Logistics (Panther)(2)

$

3,364

$

2,737

$

6,101

 

$

(864)

$

2,550

$

1,686

Emergency & Preventative Maintenance (FleetNet)

 

1,401

 

174

 

1,575

 

 

711

 

132

 

843

Transportation Management (ABF Logistics)

 

535

 

216

 

751

 

 

518

 

118

 

636

Household Goods Moving Services (ABF Moving)

 

(841)

 

349

 

(492)

 

 

(231)

 

241

 

10

Total non-asset-based segments

$

4,459

$

3,476

$

7,935

 

$

134

$

3,041

$

3,175

  1. Depreciation and amortization consists primarily of amortization of intangibles, including customer relationships and software associated with the June 15, 2012 acquisition of Panther.

 

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.




 

ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS

 

 

Three Months Ended

March 31

 

 

 

 

2014

 

2013

 

 

(Unaudited)

 

 

($ thousands)

 

OPERATING REVENUES

 

 

 

 

 

 

 

 

Freight Transportation (ABF Freight)

$

428,871

 

 

$

407,281

 

 

 

 

 

 

 

 

 

 

 

Premium Logistics (Panther)

 

72,226

 

 

 

53,252

 

 

Emergency & Preventative Maintenance (FleetNet)

 

41,699

 

 

 

32,522

 

 

Transportation Management (ABF Logistics)

 

29,717

 

 

 

21,618

 

 

Household Goods Moving Services (ABF Moving)

 

14,750

 

 

 

13,576

 

 

Total non-asset-based segments

 

158,392

 

 

 

120,968

 

 

 

 

 

 

 

 

 

 

 

Other revenues and eliminations

 

(9,359)

 

 

 

(7,562)

 

 

Total consolidated operating revenues

$

577,904

 

 

$

520,687

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

Freight Transportation (ABF Freight)

 

 

 

 

 

 

 

 

 

Salaries, wages, and benefits

$

261,154

60.9%

 

$

267,178

65.6%

 

Fuel, supplies, and expenses

 

90,791

21.2

 

 

83,332

20.5

 

Operating taxes and licenses

 

11,493

2.7

 

 

10,990

2.7

 

Insurance

 

5,395

1.2

 

 

4,484

1.1

 

Communications and utilities

 

4,242

1.0

 

 

3,933

1.0

 

Depreciation and amortization

 

16,338

3.8

 

 

19,574

4.8

 

Rents and purchased transportation

 

47,420

11.0

 

 

38,469

9.4

 

Gain on sale of property and equipment

 

(203)

 

 

(212)

(0.1)

 

Pension settlement expense(1)

 

2,890

0.7

 

 

 

Other

 

1,535

0.3

 

 

2,082

0.5

 

 

 

441,055

102.8%

 

 

429,830

105.5%

 

 

 

 

 

 

 

 

 

 

Premium Logistics (Panther)

 

 

 

 

 

 

 

 

 

Purchased transportation

$

54,573

75.5%

 

$

41,036

77.1%

 

Depreciation and amortization(2)

 

2,737

3.8

 

 

2,550

4.8

 

Salaries, benefits, insurance, and other

 

11,552

16.0

 

 

10,530

19.7

 

 

 

68,862

95.3%

 

 

54,116

101.6%

 

 

 

 

 

 

 

 

 

 

Emergency & Preventative Maintenance (FleetNet)(1)

 

40,298

 

 

 

31,811

 

 

Transportation Management (ABF Logistics) (1)

 

29,182

 

 

 

21,100

 

 

Household Goods Moving Services (ABF Moving) (1)

 

15,591

 

 

 

13,807

 

 

Total non-asset-based segments

 

153,933

 

 

 

120,834

 

 

 

 

 

 

 

 

 

 

 

Other expenses and eliminations(1)

 

(8,382)

 

 

 

(6,627)

 

 

Total consolidated operating expenses

$

586,606

 

 

$

544,037

 

 

 

  1. Pension settlement expense for the three months ended March 31, 2014, which totaled $3.7 million (pre-tax) on a consolidated basis, relates to lump-sum distributions from the Company’s nonunion defined benefit pension plan and the purchase by the plan of a nonparticipating annuity contract to settle vested benefits of participants and beneficiaries who were receiving monthly benefit payments as of the January 2014 contract purchase date. Of the total $3.7 million pension settlement expense in first quarter 2014, $2.9 million was reported by ABF Freight, $0.7 million was reported in Other expenses and eliminations, and $0.1 million was reported by the non-asset-based segments.
  2. Depreciation and amortization consists primarily of amortization of intangibles, including customer relationships and software associated with the June 15, 2012 acquisition of Panther.

 

 

 

 

                                                 

 

 

 

ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS – Continued

 

Three Months Ended

March 31

 

 

 

 

2014

 

2013

 

 

(Unaudited)

 

 

($ thousands)

 

OPERATING INCOME (LOSS)

 

 

 

 

 

 

 

Freight Transportation (ABF Freight)

$

(12,184)

 

 

$

(22,549)

 

 

 

 

 

 

 

 

 

Premium Logistics (Panther)

 

3,364

 

 

 

(864)

 

Emergency & Preventative Maintenance (FleetNet)

 

1,401

 

 

 

711

 

Transportation Management (ABF Logistics)

 

535

 

 

 

518

 

Household Goods Moving Services (ABF Moving)

 

(841)

 

 

 

(231)

 

Total non-asset-based segments

 

4,459

 

 

 

134

 

 

 

 

 

 

 

 

 

Other loss and eliminations

 

(977)

 

 

 

(935)

 

  Total consolidated operating loss

$

(8,702)

 

 

$

(23,350)

 

                 

 

 

As disclosed in the Company’s 2013 Annual Report on Form 10-K, certain reclassifications have been made to the prior year’s operating segment data to conform to the current year presentation. The operating results of the Company’s businesses which provide ocean container transport and warehousing services have been reclassified from the “Other and eliminations” to the Transportation Management segment. There was no impact on consolidated amounts as a result of these reclassifications.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ARCBEST CORPORATION

OPERATING STATISTICS

 

 

 

 

 

 

Three Months Ended

 

March 31

 

2014

 

2013

% Change

 

(Unaudited)

 

 

 

 

Freight Transportation (ABF Freight)

 

 

 

 

Workdays

 

63.0

 

 

62.5

 

 

 

 

 

 

 

 

Billed Revenue(1) / CWT        

$

27.05

 

$

26.85

0.7%

 

 

 

 

 

 

 

Billed Revenue(1) / Shipment

$

381.84

 

$

371.99

2.6%

 

 

 

 

 

 

 

Shipments                               

 

1,133,332

 

 

1,095,678

3.4%

 

 

 

 

 

 

 

Shipments / Day

 

17,989

 

 

17,531

2.6%

 

 

 

 

 

 

 

Tonnage (tons)                       

 

799,811

 

 

758,889

5.4%

 

 

 

 

 

 

 

Tons / Day

 

12,695

 

 

12,142

4.6%

 

  1. Revenue for undelivered freight is deferred for financial statement purposes in accordance with ABF Freight’s revenue recognition policy. Billed revenue used for calculating revenue per hundredweight measurements has not been adjusted for the portion of revenue deferred for financial statement purposes. Billed revenue has been adjusted to exclude intercompany revenue that is not related to freight transportation services.

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