ArcBest Corporation Announces Second Quarter 2015 Results
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 Corporation Announces Second Quarter 2015 Results
- Second quarter 2015 revenue was $696.1 million, an improvement of 5.7 percent compared to second quarter 2014.
- Second quarter 2015 diluted earnings per share increased 17 percent versus second quarter 2014.
- ABF Freight’s adjusted second quarter operating ratio improved to 94.3 percent
- ArcBest’s asset-light logistics businesses increased revenue by 15 percent and operating income by 48 percent versus the prior year’s second quarter.
FORT SMITH Arkansas, August 3, 2015 – ArcBest Corporation (Nasdaq: ARCB) today reported second quarter 2015 net income of $20.0 million, or $0.74 per diluted share compared to second quarter 2014 net income of $17.2 million, or $0.63 per diluted share, as all operating companies experienced improved profitability from the year-ago period. Excluding pension settlement charges for both periods, second quarter 2015 net income was $20.3 million, or $0.75 per diluted share compared to second quarter 2014 net income of $17.8 million, or $0.65 per diluted share.
“ArcBest posted strong results this quarter, with our highest second quarter revenue ever,” said ArcBest President and CEO Judy R. McReynolds. “I am pleased that our strategic investments in an expanded set of service offerings are resulting in a greater percentage of customers turning to the ArcBest companies for solutions to their supply chain challenges.
Freight Transportation (ABF Freight)
Results of Operations
Second Quarter 2015
- Revenue of $504.4 million compared to $492.9 million in second quarter 2014, an increase of 2.3 percent.
- Tonnage per day increase of 1.9 percent versus second quarter 2014.
- Total billed revenue per hundredweight increase of 0.4 percent compared to the prior year.
- Excluding adjustments for pension settlement charges, operating income of $28.5 million and operating ratio of 94.3 percent compared to operating income of $23.5 million and an operating ratio of 95.3 percent in second quarter 2014.
ABF Freight experienced second quarter revenue growth resulting from greater tonnage combined with continued positive trends in account pricing. Efficient management of purchased transportation and equipment resources also contributed to improved operating margins. Throughout the quarter, ABF Freight maintained its focus on offering customized services to meet the specific needs of its customers. Total second quarter pricing yields were slightly positive despite year-over-year reductions in fuel surcharge due to lower fuel prices.
Asset-Light Logistics
Results of Operations
Second Quarter 2015
- Revenue of $204.9 million compared to $178.1 million in second quarter 2014, an increase of 15 percent.
- These businesses equaled 29 percent of total consolidated revenue compared to 27 percent during the same period last year.
- Second quarter 2015 earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $13.5 million compared to EBITDA in second quarter 2014 of $10.2 million.
Revenue growth for ArcBest’s asset-light logistics businesses was positively impacted by strong increases at ABF Logistics and ABF Moving. Truckload brokerage activity drove the second quarter revenue and margin increases at ABF Logistics as additional business was added with both new and existing shippers. ABF Moving’s revenue and margins benefited from increased market opportunities associated with the beginning of the traditional summer moving season. Panther’s second quarter profitability improved over the previous year due to moderately higher shipment gross margins and cost management. Compared to last year, FleetNet’s increase in second quarter revenue and operating income was the result of additional event activity across its services and improved labor efficiencies.
Conference Call
ArcBest Corporation will host a conference call with company executives to discuss the 2015 second quarter results. The call will be today, Monday, August 3, at 9:30 a.m. ET (8:30 a.m. CT). Interested parties are invited to listen by calling (800) 926-6349. Following the call, a recorded playback will be available through the end of the day on September 15, 2015. To listen to the playback, dial (800) 633-8284 or (402) 977-9140 (for international callers). The conference call ID for the playback is 21771575. The conference call and playback can also be accessed, through September 15, 2015, 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 Logistics®, 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 June 30, 2015 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: costs of continuing investments in technology, a failure of our information systems and the impact of cyber incidents; disruptions or failures of services essential to the operation of our business or the use of information technology platforms in our business; governmental regulations and policies; litigation or claims asserted against us; 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; 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, and our ability to attract and retain employees and/or independent owner operators; 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; increased competition from freight transportation service providers outside the motor carrier freight transportation industry; 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; environmental laws and regulations, including emissions-control 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; 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.
Financial Data and Operating Statistics
The following tables show financial data and operating statistics on ArcBest Corporationsm and its subsidiary companies.
ARCBEST CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS |
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Three Months Ended June 30 |
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Six Months Ended June 30 |
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2015 |
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2014 |
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2015 |
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2014 |
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(Unaudited) |
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($ thousands, except share and per share data) |
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REVENUES |
$ |
696,115 |
|
$ |
658,646 |
|
$ |
1,309,391 |
|
$ |
1,236,550 |
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OPERATING EXPENSES |
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662,649 |
|
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631,694 |
|
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1,274,645 |
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1,218,300 |
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OPERATING INCOME |
|
33,466 |
|
|
26,952 |
|
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34,746 |
|
|
18,250 |
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OTHER INCOME (COSTS) |
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Interest and dividend income |
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271 |
|
|
194 |
|
|
505 |
|
|
384 |
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Interest and other related financing costs |
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(1,025) |
|
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(725) |
|
|
(2,027) |
|
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(1,533) |
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Other, net |
|
197 |
|
|
950 |
|
|
597 |
|
|
1,315 |
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(557) |
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|
419 |
|
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(925) |
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|
166 |
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INCOME BEFORE INCOME TAXES |
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32,909 |
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27,371 |
|
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33,821 |
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18,416 |
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INCOME TAX PROVISION |
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12,942 |
|
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10,163 |
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13,109 |
|
|
6,401 |
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NET INCOME |
$ |
19,967 |
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$ |
17,208 |
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$ |
20,712 |
|
$ |
12,015 |
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EARNINGS PER COMMON SHARE(1) |
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Basic |
$ |
0.76 |
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$ |
0.63 |
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$ |
0.79 |
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$ |
0.44 |
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Diluted |
$ |
0.74 |
|
$ |
0.63 |
|
$ |
0.77 |
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$ |
0.44 |
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AVERAGE COMMON SHARES OUTSTANDING |
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Basic |
|
26,021,874 |
|
|
26,005,105 |
|
|
26,036,375 |
|
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25,941,370 |
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Diluted |
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26,593,451 |
|
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26,005,105 |
|
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26,592,615 |
|
|
25,942,046 |
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CASH DIVIDENDS DECLARED |
$ |
0.06 |
|
$ |
0.03 |
|
$ |
0.12 |
|
$ |
0.06 |
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(1) ArcBest 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 to unvested restricted stock for calculating per share amounts. |
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NET INCOME |
$ |
19,967 |
|
$ |
17,208 |
|
$ |
20,712 |
|
$ |
12,015 |
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EFFECT OF UNVESTED RESTRICTED |
|
(203) |
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(848) |
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(227) |
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|
(602) |
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ADJUSTED NET INCOME FOR CALCULATING |
$ |
19,764 |
|
$ |
16,360 |
|
$ |
20,485 |
|
$ |
11,413 |
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ARCBEST CORPORATION CONSOLIDATED BALANCE SHEETS |
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June 30 2015 |
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December 31 2014 |
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(Unaudited) |
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Note |
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($ thousands, except share data) |
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ASSETS |
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CURRENT ASSETS |
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|
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Cash and cash equivalents |
$ |
192,016 |
|
$ |
157,042 |
||||||||||||||||||||||||||||||
Short-term investments |
|
53,836 |
|
|
45,909 |
||||||||||||||||||||||||||||||
Restricted cash |
|
1,387 |
|
|
1,386 |
||||||||||||||||||||||||||||||
Accounts receivable, less allowances (2015 – $5,983; 2014 – $5,731) |
|
245,039 |
|
|
228,056 |
||||||||||||||||||||||||||||||
Other accounts receivable, less allowances (2015 – $962; 2014 – $1,701) |
|
7,083 |
|
|
6,582 |
||||||||||||||||||||||||||||||
Prepaid expenses |
|
19,219 |
|
|
20,906 |
||||||||||||||||||||||||||||||
Deferred income taxes |
|
35,661 |
|
|
40,220 |
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Prepaid and refundable income taxes |
|
2,592 |
|
|
9,920 |
||||||||||||||||||||||||||||||
Other |
|
5,072 |
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|
4,968 |
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TOTAL CURRENT ASSETS |
|
561,905 |
|
|
514,989 |
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PROPERTY, PLANT AND EQUIPMENT |
|
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Land and structures |
|
267,046 |
|
|
251,836 |
||||||||||||||||||||||||||||||
Revenue equipment |
|
655,013 |
|
|
633,455 |
||||||||||||||||||||||||||||||
Service, office, and other equipment |
|
137,296 |
|
|
136,145 |
||||||||||||||||||||||||||||||
Software |
|
120,256 |
|
|
116,112 |
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Leasehold improvements |
|
24,649 |
|
|
24,377 |
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|
|
1,204,260 |
|
|
1,161,925 |
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Less allowances for depreciation and amortization |
|
779,813 |
|
|
752,075 |
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|
|
424,447 |
|
|
409,850 |
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GOODWILL |
|
81,258 |
|
|
77,078 |
||||||||||||||||||||||||||||||
INTANGIBLE ASSETS, net |
|
71,270 |
|
|
72,809 |
||||||||||||||||||||||||||||||
OTHER ASSETS |
|
53,168 |
|
|
52,896 |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||||||||||
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$ |
1,192,048 |
|
$ |
1,127,622 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES |
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|
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Accounts payable |
$ |
147,781 |
|
$ |
120,325 |
||||||||||||||||||||||||||||||
Income taxes payable |
|
4,869 |
|
|
527 |
||||||||||||||||||||||||||||||
Accrued expenses |
|
187,821 |
|
|
194,674 |
||||||||||||||||||||||||||||||
Current portion of long-term debt |
|
24,024 |
|
|
25,256 |
||||||||||||||||||||||||||||||
TOTAL CURRENT LIABILITIES |
|
364,495 |
|
|
340,782 |
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LONG-TERM DEBT, less current portion |
|
136,821 |
|
|
102,474 |
||||||||||||||||||||||||||||||
PENSION AND POSTRETIREMENT LIABILITIES |
|
39,620 |
|
|
42,418 |
||||||||||||||||||||||||||||||
OTHER LIABILITIES |
|
12,295 |
|
|
16,667 |
||||||||||||||||||||||||||||||
DEFERRED INCOME TAXES |
|
59,613 |
|
|
64,398 |
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STOCKHOLDERS’ EQUITY |
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|
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Common stock, $0.01 par value, authorized 70,000,000 shares; issued 2015: 27,784,760 shares; 2014: 27,722,010 shares |
|
278 |
|
|
277 |
||||||||||||||||||||||||||||||
Additional paid-in capital |
|
307,268 |
|
|
303,045 |
||||||||||||||||||||||||||||||
Retained earnings |
|
356,360 |
|
|
338,810 |
||||||||||||||||||||||||||||||
Treasury stock, at cost, 2015: 1,841,165 shares; 2014: 1,677,932 shares |
|
(63,752) |
|
|
(57,770) |
||||||||||||||||||||||||||||||
Accumulated other comprehensive loss |
|
(20,950) |
|
|
(23,479) |
||||||||||||||||||||||||||||||
TOTAL STOCKHOLDERS’ EQUITY |
|
579,204 |
|
|
560,883 |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
$ |
1,192,048 |
|
$ |
1,127,622 |
||||||||||||||||||||||||||||||
Note: The balance sheet at December 31, 2014 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. |
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ARCBEST CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS |
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Six Months Ended June 30 |
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2015 |
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2014 |
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(Unaudited) |
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($ thousands) |
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OPERATING ACTIVITIES |
|
|
|
|
|
|
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Net income |
$ |
20,712 |
|
$ |
12,015 |
|
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Adjustments to reconcile net income to net cash |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Depreciation and amortization |
|
42,630 |
|
|
39,540 |
|
|||||||||||||||||||||||||||||
Amortization of intangibles |
|
2,218 |
|
|
2,137 |
|
|||||||||||||||||||||||||||||
Pension settlement expense |
|
1,716 |
|
|
4,600 |
|
|||||||||||||||||||||||||||||
Share-based compensation expense |
|
4,233 |
|
|
3,668 |
|
|||||||||||||||||||||||||||||
Provision for losses on accounts receivable |
|
627 |
|
|
1,032 |
|
|||||||||||||||||||||||||||||
Deferred income tax benefit |
|
(2,559) |
|
|
(2,358) |
|
|||||||||||||||||||||||||||||
Gain on sale of property and equipment |
|
(1,049) |
|
|
(249) |
|
|||||||||||||||||||||||||||||
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Receivables |
|
(16,560) |
|
|
(34,888) |
|
|||||||||||||||||||||||||||||
Prepaid expenses |
|
1,691 |
|
|
1,383 |
|
|||||||||||||||||||||||||||||
Other assets |
|
385 |
|
|
(1,482) |
|
|||||||||||||||||||||||||||||
Income taxes |
|
12,306 |
|
|
2,226 |
|
|||||||||||||||||||||||||||||
Accounts payable, accrued expenses, and other liabilities |
|
8,316 |
|
|
30,019 |
|
|||||||||||||||||||||||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
74,666 |
|
|
57,643 |
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
INVESTING ACTIVITIES |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Purchases of property, plant and equipment, net of financings |
|
(34,205) |
|
|
(15,570) |
|
|||||||||||||||||||||||||||||
Proceeds from sale of property and equipment |
|
2,690 |
|
|
1,241 |
|
|||||||||||||||||||||||||||||
Purchases of short-term investments |
|
(10,780) |
|
|
(2,967) |
|
|||||||||||||||||||||||||||||
Proceeds from sale of short-term investments |
|
2,967 |
|
|
2,940 |
|
|||||||||||||||||||||||||||||
Business acquisition, net of cash acquired |
|
(5,219) |
|
|
(2,663) |
|
|||||||||||||||||||||||||||||
Capitalization of internally developed software |
|
(4,099) |
|
|
(3,859) |
|
|||||||||||||||||||||||||||||
NET CASH USED IN INVESTING ACTIVITIES |
|
(48,646) |
|
|
(20,878) |
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
FINANCING ACTIVITIES |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Borrowings under credit facilities |
|
70,000 |
|
|
– |
|
|||||||||||||||||||||||||||||
Borrowings under accounts receivable securitization program |
|
35,000 |
|
|
– |
|
|||||||||||||||||||||||||||||
Payments on long-term debt |
|
(84,555) |
|
|
(16,528) |
|
|||||||||||||||||||||||||||||
Net change in book overdrafts |
|
(1,522) |
|
|
3,602 |
|
|||||||||||||||||||||||||||||
Net change in restricted cash |
|
(1) |
|
|
517 |
|
|||||||||||||||||||||||||||||
Deferred financing costs |
|
(824) |
|
|
(61) |
|
|||||||||||||||||||||||||||||
Payment of common stock dividends |
|
(3,162) |
|
|
(1,635) |
|
|||||||||||||||||||||||||||||
Purchases of treasury stock |
|
(5,982) |
|
|
– |
|
|||||||||||||||||||||||||||||
Proceeds from the exercise of stock options |
|
– |
|
|
1,136 |
|
|||||||||||||||||||||||||||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
|
8,954 |
|
|
(12,969) |
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS |
|
34,974 |
|
|
23,796 |
|
|||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period |
|
157,042 |
|
|
105,354 |
|
|||||||||||||||||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
192,016 |
|
$ |
129,150 |
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
NONCASH INVESTING ACTIVITIES |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Accruals for equipment received |
$ |
8,972 |
|
$ |
6,869 |
|
|||||||||||||||||||||||||||||
Equipment financed |
$ |
12,670 |
|
$ |
22,842 |
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
ARCBEST CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||
|
June 30 |
|
June 30 |
|||||||||||||||
|
2015 |
2014 |
|
2015 |
2014 |
|||||||||||||
|
(Unaudited) |
|||||||||||||||||
|
($ thousands, except percentages) |
|||||||||||||||||
FREIGHT TRANSPORTATION (ABF FREIGHT) |
||||||||||||||||||
Operating Income ($) Operating Ratio (% of revenues) |
|
|
|
|
|
|
|
|
|
|||||||||
Amounts on a GAAP basis |
$ |
28,092 |
94.4% |
$ |
22,835 |
95.4% |
|
$ |
28,135 |
97.0% |
$ |
10,653 |
98.8% |
|||||
Pension settlement expense |
|
448 |
(0.1)% |
|
708 |
(0.1)% |
|
|
1,288 |
(0.1)% |
|
3,598 |
(0.4)% |
|||||
Non-GAAP amounts |
$ |
28,540 |
94.3% |
$ |
23,543 |
95.3% |
|
$ |
29,423 |
96.9% |
$ |
14,251 |
98.4% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||
|
June 30 |
|
June 30 |
|||||||||||||||
|
2015 |
2014 |
|
2015 |
2014 |
|||||||||||||
|
(Unaudited) |
|||||||||||||||||
|
($ thousands, except per share data) |
|||||||||||||||||
ARCBEST CORPORATION – CONSOLIDATED |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amounts on a GAAP basis |
$ |
33,466 |
|
$ |
26,952 |
|
|
$ |
34,746 |
|
$ |
18,250 |
|
|||||
Pension settlement expense, pre-tax |
|
597 |
|
|
909 |
|
|
|
1,716 |
|
|
4,600 |
|
|||||
Non-GAAP amounts |
$ |
34,063 |
|
$ |
27,861 |
|
|
$ |
36,462 |
|
$ |
22,850 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amounts on a GAAP basis |
$ |
19,967 |
|
$ |
17,208 |
|
|
$ |
20,712 |
|
$ |
12,015 |
|
|||||
Pension settlement expense, after-tax |
|
364 |
|
|
556 |
|
|
|
1,048 |
|
|
2,811 |
|
|||||
Non-GAAP amounts |
$ |
20,331 |
|
$ |
17,764 |
|
|
$ |
21,760 |
|
$ |
14,826 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Diluted Earnings Per Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amounts on a GAAP basis |
$ |
0.74 |
|
$ |
0.63 |
|
|
$ |
0.77 |
|
$ |
0.44 |
|
|||||
Pension settlement expense, after-tax |
|
0.01 |
|
|
0.02 |
|
|
|
0.04 |
|
|
0.11 |
|
|||||
Non-GAAP amounts |
$ |
0.75 |
|
$ |
0.65 |
|
|
$ |
0.81 |
|
$ |
0.55 |
|
|||||
ARCBEST CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted Earnings Before Interest, Taxes, Depreciation |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 |
|
2014 |
|
2015 |
|
2014 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
($ thousands) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
ARCBEST CORPORATION – CONSOLIDATED |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
Net income |
$ |
19,967 |
|
$ |
17,208 |
|
$ |
20,712 |
|
$ |
12,015 |
||||||||||||||||||||||||||||||||||||||||||||||||
Interest and other related financing costs |
|
1,025 |
|
|
725 |
|
|
2,027 |
|
|
1,533 |
||||||||||||||||||||||||||||||||||||||||||||||||
Income tax provision |
|
12,942 |
|
|
10,163 |
|
|
13,109 |
|
|
6,401 |
||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
|
22,617 |
|
|
21,225 |
|
|
44,848 |
|
|
41,677 |
||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of share-based compensation |
|
2,586 |
|
|
2,100 |
|
|
4,233 |
|
|
3,668 |
||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial losses of benefit plans |
|
1,665 |
|
|
1,625 |
|
|
3,858 |
|
|
5,893 |
||||||||||||||||||||||||||||||||||||||||||||||||
|
$ |
60,802 |
|
$ |
53,046 |
|
$ |
88,787 |
|
$ |
71,187 |
||||||||||||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Before Interest, Taxes, Depreciation |
Three Months Ended June 30 2015 |
|
Three Months Ended June 30 2014 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
($ thousands) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSET-LIGHT LOGISTICS |
Operating Income |
Depreciation and Amortization |
EBITDA |
|
Operating Income |
Depreciation and Amortization |
EBITDA |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||
Premium Logistics (Panther)(2) |
$ |
4,838 |
$ |
2,939 |
$ |
7,777 |
|
$ |
4,358 |
$ |
2,838 |
$ |
7,196 |
||||||||||||||||||||||||||||||||||||||||||||||
Emergency & Preventative Maintenance (FleetNet) |
|
1,017 |
|
276 |
|
1,293 |
|
|
700 |
|
237 |
|
937 |
||||||||||||||||||||||||||||||||||||||||||||||
Transportation Management (ABF Logistics) |
|
1,808 |
|
246 |
|
2,054 |
|
|
854 |
|
252 |
|
1,106 |
||||||||||||||||||||||||||||||||||||||||||||||
Household Goods Moving Services (ABF Moving) |
|
1,997 |
|
338 |
|
2,335 |
|
|
623 |
|
346 |
|
969 |
||||||||||||||||||||||||||||||||||||||||||||||
Total asset-light logistics |
$ |
9,660 |
$ |
3,799 |
$ |
13,459 |
|
$ |
6,535 |
$ |
3,673 |
$ |
10,208 |
||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||
Earnings Before Interest, Taxes, Depreciation |
Six Months Ended June 30 2015 |
|
Six Months Ended June 30 2014 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
($ thousands) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSET-LIGHT LOGISTICS |
Operating Income |
Depreciation and Amortization |
EBITDA |
|
Operating Income |
Depreciation and Amortization |
EBITDA |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||
Premium Logistics (Panther)(2) |
$ |
6,033 |
$ |
5,863 |
$ |
11,896 |
|
$ |
7,722 |
$ |
5,574 |
$ |
13,296 |
||||||||||||||||||||||||||||||||||||||||||||||
Emergency & Preventative Maintenance (FleetNet) |
|
2,187 |
|
559 |
|
2,746 |
|
|
2,101 |
|
411 |
|
2,512 |
||||||||||||||||||||||||||||||||||||||||||||||
Transportation Management (ABF Logistics) |
|
2,583 |
|
530 |
|
3,113 |
|
|
1,389 |
|
469 |
|
1,858 |
||||||||||||||||||||||||||||||||||||||||||||||
Household Goods Moving Services (ABF Moving) |
|
1,634 |
|
688 |
|
2,322 |
|
|
(218) |
|
695 |
|
477 |
||||||||||||||||||||||||||||||||||||||||||||||
Total asset-light logistics |
$ |
12,437 |
$ |
7,640 |
$ |
20,077 |
|
$ |
10,994 |
$ |
7,149 |
$ |
18,143 |
||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Financial Measures. ArcBest Corporation (“ArcBest”) 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, ArcBest’s reported results. Management believes EBITDA and Adjusted EBITDA to be relevant and useful information as EBITDA is a standard measure commonly reported and widely used by analysts, investors and others to measure financial performance and ability to service debt obligations. However, these financial measures should not be construed as better measurements than operating income, operating cash flow, net income or earnings per share, as defined by GAAP. Other companies may calculate EBITDA differently, and therefore, ArcBest’s EBITDA and Adjusted 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 June 30 |
|
|
Six Months Ended June 30 |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
(Unaudited) ($ thousands, except percentages) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
Freight Transportation (ABF Freight) |
$ |
504,371 |
|
|
$ |
492,857 |
|
|
$ |
945,578 |
|
|
$ |
921,728 |
|
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
Premium Logistics (Panther) |
|
80,271 |
|
|
|
81,425 |
|
|
|
155,563 |
|
|
|
153,651 |
|
||||||||||||||||||||||||||||||||||||||||||||
Emergency & Preventative Maintenance (FleetNet) |
|
42,015 |
|
|
|
38,307 |
|
|
|
84,504 |
|
|
|
80,006 |
|
||||||||||||||||||||||||||||||||||||||||||||
Transportation Management (ABF Logistics) |
|
50,419 |
|
|
|
35,493 |
|
|
|
97,791 |
|
|
|
65,210 |
|
||||||||||||||||||||||||||||||||||||||||||||
Household Goods Moving Services (ABF Moving) |
|
32,225 |
|
|
|
22,855 |
|
|
|
50,793 |
|
|
|
37,605 |
|
||||||||||||||||||||||||||||||||||||||||||||
Total asset-light logistics |
|
204,930 |
|
|
|
178,080 |
|
|
|
388,651 |
|
|
|
336,472 |
|
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
Other and eliminations |
|
(13,186) |
|
|
|
(12,291) |
|
|
|
(24,838) |
|
|
|
(21,650) |
|
||||||||||||||||||||||||||||||||||||||||||||
Total consolidated revenues |
$ |
696,115 |
|
|
$ |
658,646 |
|
|
$ |
1,309,391 |
|
|
$ |
1,236,550 |
|
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
OPERATING EXPENSES |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Freight Transportation (ABF Freight) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Salaries, wages, and benefits |
$ |
301,639 |
59.8% |
|
$ |
279,372 |
56.7% |
|
$ |
580,010 |
61.3% |
|
$ |
540,527 |
58.6% |
|||||||||||||||||||||
Fuel, supplies, and expenses |
|
79,647 |
15.8 |
|
|
93,277 |
18.9 |
|
|
158,673 |
16.8 |
|
|
184,067 |
20.0 |
|||||||||||||||||||||
Operating taxes and licenses |
|
12,322 |
2.4 |
|
|
11,770 |
2.4 |
|
|
24,318 |
2.6 |
|
|
23,263 |
2.5 |
|||||||||||||||||||||
Insurance |
|
6,267 |
1.2 |
|
|
5,966 |
1.2 |
|
|
12,052 |
1.3 |
|
|
11,361 |
1.2 |
|||||||||||||||||||||
Communications and utilities |
|
3,766 |
0.8 |
|
|
3,731 |
0.8 |
|
|
7,751 |
0.8 |
|
|
7,973 |
0.9 |
|||||||||||||||||||||
Depreciation and amortization |
|
18,286 |
3.6 |
|
|
16,841 |
3.4 |
|
|
35,686 |
3.8 |
|
|
33,178 |
3.6 |
|||||||||||||||||||||
Rents and purchased transportation |
|
52,380 |
10.4 |
|
|
55,549 |
11.3 |
|
|
94,224 |
10.0 |
|
|
102,969 |
11.2 |
|||||||||||||||||||||
Gain on sale of property and equipment |
|
(594) |
(0.1) |
|
|
(40) |
– |
|
|
(838) |
(0.1) |
|
|
(243) |
– |
|||||||||||||||||||||
Pension settlement expense(1) |
|
448 |
0.1 |
|
|
708 |
0.1 |
|
|
1,288 |
0.1 |
|
|
3,598 |
0.4 |
|||||||||||||||||||||
Other |
|
2,118 |
0.4 |
|
|
2,848 |
0.6 |
|
|
4,279 |
0.4 |
|
|
4,382 |
0.4 |
|||||||||||||||||||||
|
|
476,279 |
94.4% |
|
|
470,022 |
95.4% |
|
|
917,443 |
97.0% |
|
|
911,075 |
98.8% |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Premium Logistics (Panther) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Purchased transportation |
$ |
58,510 |
72.9% |
|
|
60,185 |
73.9% |
|
|
114,554 |
73.6% |
|
|
114,759 |
74.7% |
|||||||||||||||||||||
Depreciation and amortization(2) |
|
2,939 |
3.7 |
|
|
2,838 |
3.5 |
|
|
5,863 |
3.8 |
|
|
5,574 |
3.6 |
|||||||||||||||||||||
Salaries, benefits, insurance, and other |
|
13,984 |
17.4 |
|
|
14,044 |
17.2 |
|
|
29,113 |
18.7 |
|
|
25,596 |
16.7 |
|||||||||||||||||||||
|
|
75,433 |
94.0% |
|
|
77,067 |
94.6% |
|
|
149,530 |
96.1% |
|
|
145,929 |
95.0% |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Emergency & Preventative Maintenance (FleetNet) |
$ |
40,998 |
|
|
|
37,607 |
|
|
|
82,317 |
|
|
|
77,905 |
|
|||||||||||||||||||||
Transportation Management (ABF Logistics) |
|
48,611 |
|
|
|
34,639 |
|
|
|
95,208 |
|
|
|
63,821 |
|
|||||||||||||||||||||
Household Goods Moving Services (ABF Moving) |
|
30,228 |
|
|
|
22,232 |
|
|
|
49,159 |
|
|
|
37,823 |
|
|||||||||||||||||||||
Total asset-light logistics(1) |
|
195,270 |
|
|
|
171,545 |
|
|
|
376,214 |
|
|
|
325,478
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Other and eliminations(1) |
|
(8,900) |
|
|
|
(9,873) |
|
|
|
(19,012) |
|
|
|
(18,253) |
|
|||||||||||||||||||||
Total consolidated operating expenses(1) |
$ |
662,649 |
|
|
$ |
631,694 |
|
|
$ |
1,274,645 |
|
|
$ |
1,218,300 |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
ARCBEST CORPORATION FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS – Continued |
||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
|
Three Months Ended June 30 |
|
|
Six Months Ended June 30 |
|
|||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||||||
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|||||||||||||||||||||||||
|
(Unaudited) ($ thousands) |
|||||||||||||||||||||||||||||||||||
OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Freight Transportation (ABF Freight)(1) |
$ |
28,092 |
|
|
$ |
22,835 |
|
|
$ |
28,135 |
|
|
$ |
10,653 |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Premium Logistics (Panther) |
|
4,838 |
|
|
|
4,358 |
|
|
|
6,033 |
|
|
|
7,722 |
|
|||||||||||||||||||||
Emergency & Preventative Maintenance (FleetNet) |
|
1,017 |
|
|
|
700 |
|
|
|
2,187 |
|
|
|
2,101 |
|
|||||||||||||||||||||
Transportation Management (ABF Logistics) |
|
1,808 |
|
|
|
854 |
|
|
|
2,583 |
|
|
|
1,389 |
|
|||||||||||||||||||||
Household Goods Moving Services (ABF Moving) |
|
1,997 |
|
|
|
623 |
|
|
|
1,634 |
|
|
|
(218) |
|
|||||||||||||||||||||
Total asset-light logistics |
|
9,660 |
|
|
|
6,535 |
|
|
|
12,437 |
|
|
|
10,994 |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Other and eliminations(2) |
|
(4,286) |
|
|
|
(2,418) |
|
|
|
(5,826) |
|
|
|
(3,397) |
|
|||||||||||||||||||||
Total consolidated operating income |
$ |
33,466 |
|
|
$ |
26,952 |
|
|
$ |
34,746 |
|
|
$ |
18,250 |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
ARCBEST CORPORATION OPERATING STATISTICS |
|
|
|
||||||||||||||
|
|
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
June 30 |
|
June 30 |
||||||||||||||
|
2015 |
2014 |
% Change |
|
2015 |
2014 |
% Change |
||||||||||
|
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||
Freight Transportation (ABF Freight) |
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
Workdays |
63.5 |
63.5 |
|
|
126.0 |
126.5 |
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
Billed Revenue(1) / CWT |
$ |
29.04 |
$ |
28.91 |
0.4% |
|
$ |
28.57 |
$ |
28.01 |
2.0% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Billed Revenue(1) / Shipment |
$ |
385.16 |
$ |
393.11 |
(2.0)% |
|
$ |
379.18 |
$ |
387.78 |
(2.2)% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Shipments |
|
1,318,566 |
|
1,261,670 |
4.5% |
|
|
2,507,363 |
|
2,395,002 |
4.7% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Shipments / Day |
|
20,765 |
|
19,869 |
4.5% |
|
|
19,900 |
|
18,933 |
5.1% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Tonnage (Tons) |
|
874,330 |
|
857,892 |
1.9% |
|
|
1,663,661 |
|
1,657,703 |
0.4% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Tons / Day |
|
13,769 |
|
13,510 |
1.9% |
|
|
13,204 |
|
13,104 |
0.8% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|||||||||||||||||
###