ARKANSAS BEST CORPORATION ANNOUNCES 1996 FIRST QUARTER OPERATING RESULTS (NASDAQ/NMS: "ABFS")
(Fort Smith, Arkansas, April 25, 1996) - Arkansas Best Corporation ("Arkansas Best") had first quarter 1996 consolidated revenues of $401 million, up 29% versus the first quarter 1995. Arkansas Best had a first quarter 1996 net loss of $9.6 million, or $.54 loss per common share.
"Obviously, we are not satisfied with being unprofitable and won't be satisfied until we return to profitability," said Robert A. Young III, President and Chief Executive Officer. "However, the results of the quarter indicate that the previously announced cost reduction measures implemented by ABF are having the desired effect. I'm encouraged that in the month of March, ABF showed a slight operating profit.
"Throughout the quarter, ABF discontinued seven regional distribution terminal operations which it inherited when Carolina Freight and Red Arrow were merged into ABF, and five more will be discontinued by mid-May, which should return ABF to its normal terminal configuration."
Revenues from the less-than-truckload ("LTL") segment for the first quarter 1996 were $295 million. The LTL segment had a first quarter 1996 operating loss of $9.3 million. ABF accounts for approximately 93% of the LTL segment revenues. ABF's operating ratio as reported to the Department of Transportation for the first quarter 1996 was 102.2% compared to 95.8% for the first quarter 1995. ABF's first quarter 1996 tonnage increased 6.9%, consisting of an 8.3% increase in LTL tonnage and a 2.1% truckload tonnage increase compared to 1995.
"So far, ABF has been more successful in retaining its January 1, 1996, freight rate increase than it has in recent years. This is part of the reason ABF's revenues are up 13.7% while its tonnage is up 6.9%," stated Young.
"We continue to be pleased with our truckload and forwarding operations which had operating profits of $1.4 million and $681,000, respectively," said Young.
Tire operations segment revenues decreased 4.8% to $31.6 million for the first quarter, 1996, with an operating loss of $1.8 million.
"Treadco is currently feeling the burden of the conversion from Bandag to Oliver and will not begin to realize the benefits until after the conversion is completed during the third quarter of 1996," said Young. "Treadco continues to see new competition entering its markets, which has increased the pressure on pricing."
The Board of Directors of the Company has declared a cash dividend of $.71875 per share to be paid for the second quarter of 1996, to holders of record of its $2.875 Series A Cumulative Convertible Exchangeable Preferred Stock (NASDAQ/NMS: "ABFSP") on May 5, 1996, payable May 15, 1996.
The following table compares financial data by business segment:
ARKANSAS BEST CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended
March 31
1996 1995
($ thousands, except per share data)
OPERATING REVENUES
LTL operations $ 294,923 $ 244,477
Forwarding operations 41,766 28,768
Truckload operations 17,838 -
Logistics operations 13,230 3,945
Tire operations 31,613 33,214
Other 2,004 803
401,374 311,207
OPERATING PROFIT (LOSS)
LTL operations (9,328) 11,035
Forwarding operations 681 199
Truckload operations 1,425 -
Logistics operations (526) (378)
Tire operations (1,762) 1,592
Other 1,833 (73)
TOTAL OPERATING PROFIT (LOSS) (7,677) 12,375
INTEREST EXPENSE 7,801 2,128
MINORITY INTEREST (641) 489
INCOME (LOSS) BEFORE INCOME TAXES (14,837) 9,758
PROVISION (CREDIT) FOR INCOME TAXES (5,278) 4,616
NET INCOME (LOSS) $ (9,559) $ 5,142
EARNINGS PER COMMON SHARE (1)
NET INCOME (LOSS) $ (0.54) $ 0.21
AVERAGE COMMON SHARES
OUTSTANDING 19,516,539 19,566,404
(1) Gives consideration to preferred stock dividends of $1.1
million per quarter.
(2) Does not assume conversion of preferred stock to common stock
because conversion would be anti-dilutive for these periods.
The following are the principal subsidiaries that comprise each
operating segment:
LTL operations: ABF Freight System, Inc. and G.I. Trucking Company
(effective 8/12/95)
Forwarding operations: Clipper Exxpress Company and CaroTrans
International, Inc. (effective 8/12/95)
Truckload operations: Cardinal Freight Carriers, Inc. (effective 8/12/95)
Logistics operations: Integrated Distribution, Inc., Innovative
Logistics Incorporated (effective 8/12/95) and The Complete Logistics
Company (effective 8/12/95)
Tire operations: Treadco, Inc. approximately 46%-owned consolidated
subsidiary
Other: Transport Realty, Inc. and Carolina Breakdown Service, Inc.
(effective 8/12/95)
Contact: Mr. Randall M. Loyd, Director - Financial Reporting
Telephone: (501) 785-6200