ARKANSAS BEST CORPORATION EARNS $0.73 PER DILUTED COMMON SHARE; ABF FREIGHT SYSTEM HAS A 92.9% OPERATING RATIO
FORT SMITH, Ark., Oct. 21 -- Arkansas Best Corporation (Nasdaq: ABFS) today announced third quarter 2002 net income of $18.3 million, or $0.73 per diluted common share, compared to third quarter 2001 net income of $13.0 million, or $0.52 per diluted common share. The third quarter 2002 earnings-per-share figure includes three items of note. First, an increase in earnings of $0.12 per diluted common share occurred during the quarter related to a previously announced favorable settlement between Arkansas Best Corporation and the Internal Revenue Service. Second, Arkansas Best experienced an increase in earnings of $0.09 per diluted common share associated with the after-tax gains on sales of excess freight facilities at ABF. Finally, there was a $0.02 per diluted common share decrease in earnings resulting from an increase in Arkansas Best's liability reserves associated with the liquidation of Reliance Insurance Company. Reliance insured Arkansas Best's workers' compensation claims in excess of $300,000 for the period from 1993 through 1999. Last year's third quarter earnings-per-share figure includes an after-tax gain of $2.8 million, or $0.11 per diluted common share, resulting from the August 2001 sale of G.I. Trucking Company.
"I am pleased with the performance of our Company during what has proven to be an interesting operating environment," said Robert A. Young, III, Arkansas Best President and Chief Executive Officer. "ABF improved its operating ratio nearly half a point versus the third quarter of last year. Clipper, with quarterly revenues essentially flat, nearly tripled its operating income compared to last year's third quarter. "Arkansas Best continues to have the strongest financial position in the nationwide long-haul, LTL industry," said Mr. Young. "During the third quarter, we had strong, positive cash flow and continued to pay down debt. Total debt, including current maturities and net of temporary investments, was $103.0 million at the end of the quarter. This produced a debt-to-equity ratio of 0.30:1."
ABF Freight System, Inc.
Third quarter 2002 revenues at ABF were $336 million compared to $330 million during the third quarter of 2001. ABF's third quarter operating income was $23.7 million compared to $22.1 million during the third quarter of 2001. ABF produced a third quarter 2002 operating ratio of 92.9% versus a 93.3% operating ratio during the third quarter of 2001. This quarter's operating ratio was negatively impacted by nearly three-quarters of an operating point as a result of increased insurance costs when compared to last year's third quarter. "ABF's operations during the month of September were positively affected by the bankruptcy of Consolidated Freightways Corporation (CF)," said Mr. Young. "It is sad to see a company with such a long history in our industry close its doors."
Beginning with this quarter's earnings press release, Arkansas Best will report revenue-per-hundredweight statistics for ABF on a "billed revenue" basis. This method is more representative of ABF's actual yield changes and is in line with the method ABF uses internally to monitor its yield performance. Revenue-per-hundredweight figures reported in the past used financial statement revenues that include an adjustment to defer a portion of the revenue related to freight in our network not yet delivered at the end of the reporting period. In prior periods, reported revenue per hundredweight was calculated using financial statement revenues divided by the tonnage billed during the period. Revenue per hundredweight on a "billed revenue" basis compares the revenue billed during the period, without the revenue deferral adjustment required for financial statement revenues, to the tonnage billed during the same period, thus avoiding any distortion caused by period-to-period changes in deferred revenue. The last two pages of this release provide a comparison of historical information on revenue-per-hundredweight figures on a "billed" and "financial statement" revenue-per-hundredweight basis.
ABF's billed LTL revenue per hundredweight, excluding fuel surcharge, was $22.39, an increase of 5.3% over last year's third quarter billed LTL revenue per hundredweight of $21.27. "The strength of this percentage improvement was the result of ABF's continued emphasis on account profitability, the ability of ABF to reasonably hold its August 1 general rate increase and the September impact of new business gained from the CF bankruptcy," said Mr. Young.
LTL tonnage per day for the 2002 third quarter declined by 2.4% when compared to last year. "During the month of September following CF's closure, ABF's LTL pounds per day increased approximately 11% over tonnage trends experienced in August," said Mr. Young. "In October, it has become more difficult to measure additional new business from the CF closure due to the longshoremen's labor dispute affecting ports throughout the west coast.
"At this point, it is difficult to determine the ultimate effect that CF's closure will have on ABF's business levels," said Mr. Young. "ABF understands that over half of CF's business was under contract, with many of those contracts normally renewing during the fourth quarter of the year. ABF also believes that some of the CF business taken by other carriers is being handled for a 60- or 90-day trial period. As a result, much of this freight has not found a permanent home and may not do so until next spring. ABF continues to be cautious about what new business it adds, with priority being placed on continuing to give superior service to our existing customers while emphasizing the profitability of any new business that is added. The freight that ABF has received as a result of the CF closure, including business from new accounts and additional business from existing accounts, has profitability comparable to that of ABF's business prior to the CF bankruptcy. In addition, the new freight has allowed ABF to benefit from some of the operating leverage that existed in its network.
"Though ABF's improved third quarter operating ratio was favorably impacted by additional CF business added during September, it is important to point out that ABF was having a good third quarter prior to CF's exit from the marketplace," said Mr. Young. "In fact, ABF's operating ratio was in the lower 90s in August 2002. Two things that positively impacted ABF's performance were reduced cargo claims and improved productivity." ABF's cargo claim ratio, a measure of net cash payouts to revenue, was 0.78% of total revenue in the third quarter of 2002. Year to date, ABF's cargo claim ratio is 0.79% of total revenue. "We believe these cargo claim figures lead the long-haul, LTL industry and allow ABF to attract additional business when the customer places a high value on undamaged deliveries," said Mr. Young. "Throughout the third quarter, the productivity of ABF's dock employees, city drivers and yard personnel continued to show improvement."
In the third quarter of 2002, per day LTL shipments in two-day transit time lanes decreased 0.6% compared to a 0.3% shipment increase in ABF's longer haul business.
"In an effort to relieve current capacity issues at specific locations and position the Company for future growth, ABF is interested in some of the CF facilities that are now available throughout the United States," said Mr. Young. "We anticipate these properties will be sold at auction, perhaps before year-end. ABF may bid on certain properties with market values up to $20 million in total. Obviously, in an auction process, there is no way to predict how many of our bids might be successful, if any."
Recognition of Excellence at ABF
During the third quarter, ABF and its employees in various areas of the Company were recognized with several honors. In August, ABF was named to the Top 10 of the Net Marketing 100, a ranking of the best business-to-business Web sites. ABF's Web site (at: www.abf.com ) is a repeat winner of this award and is the only LTL motor carrier Web site selected in 2002. The American Trucking Associations (ATA) named ABF driver Scott Harris as the 2002 National Driver of the Year. Harris is the second ABF driver to receive this honor in the last three years. For the second consecutive year, the ATA recognized ABF as the top LTL motor carrier in claims/loss prevention. In conjunction with this companywide honor, Richard Lang, Director of Customer Service for ABF, was honored by the ATA as the 2002 "Claims/Loss Prevention Professional of the Year." "We are proud of the recognition that has been earned in each of these areas of ABF," said Mr. Young. "The diversity of these awards illustrates how the hard work of every person on the ABF team has made us the premier motor carrier in the long-haul, LTL industry."
Teamster Negotiations
On October 8, negotiations began on the 2003 National Master Freight Agreement when representatives of Trucking Management Inc. (TMI), the carriers' negotiating team, and the Teamsters exchanged bargaining goals. These talks began nearly six months ahead of the March 31, 2003 expiration of the current contract. ABF joins the other TMI members and representatives of the Teamsters in working toward an early settlement of a fair contract that will build a foundation for long-term growth among the union carrier companies.
Clipper
Revenue at Clipper during the third quarter of 2002 was $32.4 million, the same revenue that Clipper recorded in the third quarter of 2001. However, operating income was $733,000 compared with $249,000 in last year's third quarter. Clipper's operating ratio during the third quarter of this year was 97.7% compared to 99.2% during the same period of 2001.
"Revenue growth and improved profitability in the temperature-controlled business was a positive factor contributing to Clipper's improvement versus last year's third quarter," said Mr. Young. "In addition, Clipper's increased use of rail while concentrating on moving shipments in its core operating lanes contributed to improved third quarter margins.
"Clipper also improved its yields by managing customer profiles and implementing a general rate increase that is currently holding," said Mr. Young. "On the expense side, Clipper has demonstrated a continuing focus on cost control and efficient movement of trailers, resulting in improved loadings with an emphasis on meeting the service requirements of each shipment being moved."
Conference Call
Arkansas Best Corporation will host a conference call with Company executives to discuss the 2002 third quarter results. The call will be today, Monday, October 21, at 10:00 a.m. EDT. Interested parties are invited to listen by calling (800) 319-9003. Following the call, a recorded playback will be available through Thursday, October 31. To listen to the playback, dial (888) 203-1112. The passcode for the playback is 554511. The conference call and playback can also be accessed on Arkansas Best's Internet Web site at www.arkbest.com through Thursday, October 31.
Company Description
Arkansas Best Corporation, headquartered in Fort Smith, AR, is a diversified transportation holding company with two primary operating subsidiaries. ABF Freight System, Inc., in continuous service since 1923, provides national transportation of less-than-truckload ("LTL") general commodities throughout North America. Clipper is an intermodal marketing company that provides domestic freight services, utilizing rail and over-the-road transportation.
Forward-Looking Statements
The following is a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995: Statements contained in this press release that are not based on historical facts are "forward-looking statements." Terms such as "estimate," "expect," "predict," "plan," "anticipate," "believe," "intend," "should," "would," "scheduled," and similar expressions and the negatives of such terms are intended to identify forward-looking statements. Such statements are by their nature subject to uncertainties and risk, including, but not limited to, union relations; availability and cost of capital; shifts in market demand; weather conditions; the performance and needs of industries served by Arkansas Best's subsidiaries; actual future costs of operating expenses such as fuel and related taxes; self-insurance claims and employee wages and benefits; actual costs of continuing investments in technology, the timing and amount of capital expenditures; competitive initiatives and pricing pressures; general economic conditions; and other financial, operational and legal risks and uncertainties detailed from time to time in the Company's SEC public filings.
The following tables show financial data and operating statistics on Arkansas Best Corporation and its subsidiary companies.
ARKANSAS BEST CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Nine Months Ended September 30 September 30 2002 2001 2002 2001 ($ thousands, except per share data) OPERATING REVENUES (C) Transportation operations $367,902 $375,362 $1,020,820 $1,172,465 Service and other 7,495 6,192 19,912 16,242 375,397 381,554 1,040,732 1,188,707 OPERATING EXPENSES AND COSTS (C) Transportation operations 344,200 354,393 979,754 1,111,450 Service and other 7,250 5,954 18,956 16,089 351,450 360,347 998,710 1,127,539 OPERATING INCOME 23,947 21,207 42,022 61,168 OTHER INCOME (EXPENSE) Net gains on sales of property and other 3,721 --- 3,721 628 Gain on sale of G.I. Trucking Company --- 4,642 --- 4,642 IRS interest settlement (E) 5,221 --- 5,221 --- Interest expense (2,053) (2,932) (6,108) (10,067) Other, net 332 (898) (178) (2,079) 7,221 812 2,656 (6,876) INCOME BEFORE INCOME TAXES 31,168 22,019 44,678 54,292 FEDERAL AND STATE INCOME TAXES 12,821 8,999 18,388 22,360 INCOME BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 18,347 13,020 26,290 31,932 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET OF TAX BENEFITS OF $13,580 (D) --- --- (23,935) --- NET INCOME 18,347 13,020 2,355 31,932 Preferred stock dividends --- 489 --- 2,487 NET INCOME FOR COMMON STOCKHOLDERS $18,347 $12,531 $2,355 $29,445 NET INCOME (LOSS) PER COMMON SHARE Basic: Income before cumulative effect of change in accounting principle (A) $0.74 $0.57 $1.07 $1.41 Cumulative effect of change in accounting principle, net of tax --- --- (0.97) --- NET INCOME PER SHARE (A) $0.74 $0.57 $0.10 $1.41 AVERAGE COMMON SHARES OUTSTANDING (BASIC): 24,783,674 21,947,611 24,710,743 20,917,328 Diluted: Income before cumulative effect of change in accounting principle (B) $0.73 $0.52 $1.04 $1.28 Cumulative effect of change in accounting principle, net of tax --- --- (0.95) --- NET INCOME PER SHARE (B) $0.73 $0.52 $0.09 $1.28 AVERAGE COMMON SHARES OUTSTANDING (DILUTED): 25,296,694 25,141,502 25,312,753 24,889,829 CASH DIVIDENDS PAID PER COMMON SHARE $--- $--- $--- $--- (A) Gives consideration to preferred stock dividends of $0.5 million and $2.5 million for the three and nine months ended September 30, 2001. (B) For the three and nine months ended September 30, 2001, conversion of preferred shares into common is assumed for the period prior to the September 14 preferred redemption date. (C) Includes one and seven months of G.I. Trucking Company's operations, respectively, for the three- and nine-month period ended September 30, 2001. G.I. Trucking Company was sold on August 1, 2001. (D) In the first quarter of 2002, the Company recognized a non-cash impairment loss of $23.9 million, net of taxes, due to the write-off of Clipper goodwill. (E) In the third quarter of 2002, the Company recognized other income of $3.1 million, net of taxes, due to a favorable settlement reached with the Internal Revenue Service ("IRS"). ARKANSAS BEST CORPORATION CONSOLIDATED BALANCE SHEETS September 30 December 31 2002 2001 (Unaudited) Note ($ thousands) ASSETS CURRENT ASSETS Cash and cash equivalents $12,550 $14,860 Accounts receivable, less allowances (2002 -- $3,044; 2001 -- $3,483) 141,689 116,430 Prepaid expenses 11,113 6,803 Deferred income taxes 25,295 22,193 Federal and state income taxes prepaid --- 2,647 Other 3,659 4,027 TOTAL CURRENT ASSETS 194,306 166,960 PROPERTY, PLANT AND EQUIPMENT Land and structures 223,424 214,856 Revenue equipment 343,041 334,622 Service, office and other equipment 86,117 79,268 Leasehold improvements 12,667 12,359 665,249 641,105 Less allowances for depreciation and amortization 319,855 306,928 345,394 334,177 INVESTMENT IN WINGFOOT 59,341 59,341 OTHER ASSETS 73,598 58,949 ASSETS HELD FOR SALE 1,822 2,402 GOODWILL, less accumulated amortization (2002 -- $32,037; 2001 -- $44,469) 63,811 101,324 $738,272 $723,153 Note: The balance sheet at December 31, 2001 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. ARKANSAS BEST CORPORATION CONSOLIDATED BALANCE SHEETS -- continued September 30 December 31 2002 2001 (Unaudited) Note ($ thousands) LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Bank overdraft and drafts payable $5,119 $6,515 Accounts payable 58,485 50,366 Estimated income taxes payable 7,747 --- Accrued expenses 125,779 121,423 Current portion of long-term debt 328 14,834 TOTAL CURRENT LIABILITIES 197,458 193,138 LONG-TERM DEBT, less current portion 112,201 115,003 FAIR VALUE OF INTEREST RATE SWAP 9,958 5,383 OTHER LIABILITIES 52,384 40,097 DEFERRED INCOME TAXES 23,867 31,736 FUTURE MINIMUM RENTAL COMMITMENTS, NET (as of September 30, 2002 -- $39,497) --- --- OTHER COMMITMENTS AND CONTINGENCIES (NONE) --- --- STOCKHOLDERS' EQUITY Common stock, $.01 par value, authorized 70,000,000 shares; issued 2002: 24,850,209 shares; 2001: 24,542,163 shares 249 245 Additional paid-in capital 209,485 204,463 Retained earnings 140,013 137,635 Treasury stock, at cost, 2002 and 2001: 59,782 shares (955) (955) Accumulated other comprehensive loss (6,388) (3,592) TOTAL STOCKHOLDERS' EQUITY 342,404 337,796 $738,272 $723,153 Note: The balance sheet at December 31, 2001 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. ARKANSAS BEST CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30 2002 2001 ($ thousands) OPERATING ACTIVITIES Net income $2,355 $31,932 Adjustment to reconcile net income to net cash provided by operating activities: Change in accounting principle, net of tax 23,935 --- Depreciation and amortization 36,972 38,059 Amortization of intangibles --- 3,039 Other amortization 189 135 Provision for losses on accounts receivable 1,189 2,304 Provision for deferred income taxes 7,560 (123) Gain on sales of assets and other (3,664) (1,747) Gain on sale of G.I. Trucking Company --- (4,642) Changes in operating assets and liabilities: Receivables (26,418) 2,700 Prepaid expenses (4,308) (1,488) Other assets (2,254) (9,167) Accounts payable, bank drafts payable, taxes payable, accrued expenses and other liabilities 22,829 (12,403) NET CASH PROVIDED BY OPERATING ACTIVITIES 58,385 48,599 INVESTING ACTIVITIES Purchases of property, plant and equipment, less capitalized leases and notes payable (49,130) (70,417) Proceeds from asset sales 11,641 7,578 Proceeds from the sale of G.I. Trucking Company --- 40,455 Capitalization of internally developed software and other (3,528) (1,710) NET CASH USED BY INVESTING ACTIVITIES (41,017) (24,094) FINANCING ACTIVITIES Borrowings under revolving credit facilities 61,200 88,400 Payments under revolving credit facilities (61,200) (88,400) Payments on long-term debt (15,142) (21,461) Retirement of bonds (4,983) (23,087) Net decrease in bank overdraft (1,471) (7,103) Dividends paid --- (2,487) Purchase of preferred stock --- (380) Other, net 1,918 6,405 NET CASH USED BY FINANCING ACTIVITIES (19,678) (48,113) NET DECREASE IN CASH AND CASH EQUIVALENTS (2,310) (23,608) Cash and cash equivalents at beginning of period 14,860 36,742 CASH AND CASH EQUIVALENTS AT END OF PERIOD $12,550 $13,134 ARKANSAS BEST CORPORATION FINANCIAL STATEMENT REVENUES, OPERATING INCOME, OPERATING RATIOS, AND FINANCIAL STATISTICS (Unaudited) Three Months Ended Nine Months Ended September 30 September 30 2002 2001 2002 2001 ($ thousands) FINANCIAL STATEMENT REVENUES ABF Freight System, Inc. (A) LTL $307,553 $301,004 $855,057 $892,222 TL 27,963 28,992 77,160 88,124 Total 335,516 329,996 932,217 980,346 Clipper 32,399 32,426 88,634 97,573 G.I. Trucking Company (B) --- 12,946 --- 95,477 FINANCIAL STATEMENT OPERATING INCOME ABF Freight System, Inc. (A) $23,713 $22,057 $41,765 $62,876 Clipper 733 249 801 1,023 G.I. Trucking Company (B) --- (565) --- 73 OPERATING RATIOS ABF Freight System, Inc. (A) 92.9% 93.3% 95.5% 93.6% Clipper 97.7% 99.2% 99.1% 99.0% G.I. Trucking Company (B) --- 104.4% --- 99.9% (A) Includes U.S., Canadian and Puerto Rican operations of ABF affiliates. (B) Includes one and seven months, respectively, of G.I. Trucking Company's operations for the three- and nine-month period ended September 30, 2001. G.I. Trucking Company was sold on August 1, 2001. Rolling Twelve Months Ended September 30, 2002 FINANCIAL STATISTICS After Tax Return on Stockholders' Equity (net income / average equity) 10.70% Debt to Equity Ratio (total debt / ending equity) 0.33:1 After Tax Return on Capital Employed (A) 8.47% (A) (Net income + interest after tax) / (average total debt - temporary investments + average equity) ABF FREIGHT SYSTEM, INC. OPERATING STATISTICS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2002 (Includes Fuel Surcharge Revenue, unless otherwise noted) Three Months Ended Nine Months Ended September 30 September 30 2002 2001 % Change 2002 2001 % Change Billed Revenue*/CWT LTL $22.91 $21.88 4.7% $22.06 $21.59 2.2% TL $8.23 $8.04 2.4% $7.85 $7.79 0.8% Total $19.94 $19.00 5.0% $19.19 $18.62 3.0% Billed Revenue*/CWT (w/o FSC) LTL $22.39 $21.27 5.3% $21.68 $20.91 3.7% TL $8.13 $7.90 2.9% $7.77 $7.64 1.7% Total $19.51 $18.49 5.5% $18.87 $18.06 4.5% Billed Revenue*/ Shipment LTL $227.06 $220.57 2.9% $219.43 $218.52 0.4% TL $1,345.74 $1,295.59 3.9% $1,281.42 $1,264.17 1.4% Total $243.96 $237.91 2.5% $235.59 $236.07 (0.2)% Billed Revenue*/ Shipment (w/o FSC) LTL $221.94 $214.39 3.5% $215.63 $211.66 1.9% TL $1,328.99 $1,273.53 4.4% $1,269.01 $1,240.25 2.3% Total $238.67 $231.48 3.1% $231.66 $228.93 1.2% Three Months Ended Nine Months Ended September 30 September 30 2002 2001 % Change 2002 2001 % Change Tonnage (tons) LTL 677,891 683,990 (0.9)% 1,950,385 2,066,378 (5.6)% TL 171,595 179,376 (4.3)% 494,570 565,592 (12.6)% Total 849,486 863,366 (1.6)% 2,444,955 2,631,970 (7.1)% Shipments LTL 1,367,868 1,356,998 0.8% 3,921,732 4,083,143 (4.0)% TL 20,984 22,252 (5.7)% 60,600 69,710 (13.1)% Total 1,388,852 1,379,250 0.7% 3,982,332 4,152,853 (4.1)% * Billed Revenue does not include revenue deferral required for financial statement purposes under the Company's revenue recognition policy. Prior to the third quarter 2002, the Company reported revenue-per-hundredweight statistics using financial statement revenue recognized on a relative transit time basis. There were 64 workdays in the three months ended September 30, 2002 and 63 workdays in the three months ended September 30, 2001. There were 191 workdays in the nine months ended September 30, 2002 and in the nine months ended September 30, 2001. Includes U.S., Canadian and Puerto Rican operations of ABF affiliates. ABF FREIGHT SYSTEM, INC. HISTORICAL OPERATING STATISTICS Billed Billed Statement Statement Revenue Y-O-Y Revenue Y-O-Y Quarter 1, 2001 Basis Change Basis Change Revenue per CWT LTL $21.50 5.3% $21.41 6.0% TL $7.74 (3.6)% $7.71 (2.9)% Total $18.46 2.6% $18.39 3.3% Revenue per CWT, net of FSC LTL $20.76 4.6% $20.68 5.5% TL $7.57 (3.9)% $7.54 (3.2)% Total $17.85 2.0% $17.78 2.7% Revenue per Shipment LTL $219.04 6.1% $218.20 6.9% TL $1,257.37 (1.3)% $1,252.55 (0.6)% Total $237.15 6.5% $236.24 7.3% Revenue per Shipment, net of FSC LTL $211.51 5.5% $210.67 6.3% TL $1,230.95 (1.5)% $1,226.14 (0.7)% Total $229.29 5.9% $228.38 6.7% Quarter 2, 2001 Revenue per CWT LTL $21.39 3.0% $21.35 3.1% TL $7.62 (6.4)% $7.60 (6.4)% Total $18.42 0.6% $18.38 0.7% Revenue per CWT, net of FSC LTL $20.72 2.9% $20.67 2.9% TL $7.47 (6.4)% $7.46 (6.2)% Total $17.85 0.4% $17.82 0.5% Revenue per Shipment LTL $215.97 4.0% $215.56 4.1% TL $1,241.31 (4.0)% $1,238.93 (3.9)% Total $233.19 4.1% $232.74 4.3% Revenue per Shipment, net of FSC LTL $209.11 3.8% $208.70 3.9% TL $1,218.19 (3.8)% $1,215.81 (3.7)% Total $226.05 4.0% $225.61 4.1% Quarter 3, 2001 Revenue per CWT LTL $21.88 1.7% $22.00 1.4% TL $8.04 (4.4)% $8.08 (4.8)% Total $19.00 (0.2)% $19.11 (0.5)% Revenue per CWT, net of FSC LTL $21.27 2.7% $21.39 2.3% TL $7.90 (3.7)% $7.94 (4.0)% Total $18.49 0.7% $18.60 0.4% Revenue per Shipment LTL $220.57 2.8% $221.82 2.5% TL $1,295.59 (3.4)% $1,302.92 (3.7)% Total $237.91 3.1% $239.26 2.8% Revenue per Shipment, net of FSC LTL $214.39 3.7% $215.64 3.4% TL $1,273.53 (2.5)% $1,280.87 (2.8)% Total $231.48 4.0% $232.82 3.7% Quarter 4, 2001 Revenue per CWT LTL $21.69 (0.6)% $21.74 (1.1)% TL $8.08 (1.8)% $8.10 (2.3)% Total $18.94 0.3% $18.98 (0.3)% Revenue per CWT, net of FSC LTL $21.30 2.3% $21.35 1.7% TL $7.99 0.0% $8.01 (0.6)% Total $18.62 3.1% $18.65 2.4% Revenue per Shipment LTL $217.48 (2.2)% $217.92 (2.8)% TL $1,285.25 (4.8)% $1,287.83 (5.3)% Total $234.23 (2.9)% $234.70 (3.5)% Revenue per Shipment, net of FSC LTL $213.58 0.6% $214.01 0.0% TL $1,271.69 (3.0)% $1,274.27 (3.6)% Total $230.18 (0.2)% $230.65 (0.8)% ABF FREIGHT SYSTEM, INC. HISTORICAL OPERATING STATISTICS (Continued) Billed Billed Statement Statement Revenue Y-O-Y Revenue Y-O-Y Quarter 1, 2002 Basis Change Basis Change Revenue per CWT LTL $21.38 (0.6)% $21.29 (0.6)% TL $7.68 (0.8)% $7.65 (0.8)% Total $18.64 1.0% $18.56 0.9% Revenue per CWT, net of FSC LTL $21.19 2.1% $21.10 2.0% TL $7.64 0.9% $7.60 0.8% Total $18.48 3.5% $18.40 3.5% Revenue per Shipment LTL $214.49 (2.1)% $213.55 (2.1)% TL $1,250.83 (0.5)% $1,245.36 (0.6)% Total $230.21 (2.9)% $229.20 (3.0)% Revenue per Shipment, net of FSC LTL $212.57 0.5% $211.63 0.5% TL $1,244.19 1.1% $1,238.72 1.0% Total $228.22 (0.5)% $227.21 (0.5)% Quarter 2, 2002 Revenue per CWT LTL $21.83 2.1% $21.73 1.8% TL $7.62 0.0% $7.59 (0.1)% Total $18.92 2.7% $18.84 2.5% Revenue per CWT, net of FSC LTL $21.41 3.3% $21.31 3.1% TL $7.54 0.9% $7.51 0.7% Total $18.57 4.0% $18.48 3.7% Revenue per Shipment LTL $216.14 0.1% $215.17 (0.2)% TL $1,244.05 0.2% $1,238.48 0.0% Total $231.94 (0.5)% $230.90 (0.8)% Revenue per Shipment, net of FSC LTL $211.96 1.4% $210.99 1.1% TL $1,230.72 1.0% $1,225.14 0.8% Total $227.62 0.7% $226.58 0.4% Quarter 3, 2002 Revenue per CWT LTL $22.91 4.7% $22.68 3.1% TL $8.23 2.4% $8.15 0.9% Total $19.94 5.0% $19.75 3.4% Revenue per CWT, net of FSC LTL $22.39 5.3% $22.17 3.7% TL $8.13 2.9% $8.05 1.4% Total $19.51 5.5% $19.32 3.9% Revenue per Shipment LTL $227.06 2.9% $224.84 1.4% TL $1,345.74 3.9% $1,332.59 2.3% Total $243.96 2.5% $241.58 1.0% Revenue per Shipment, net of FSC LTL $221.94 3.5% $219.72 1.9% TL $1,328.99 4.4% $1,315.84 2.7% Total $238.67 3.1% $236.28 1.5%
Contact: Mr. David E. Loeffler, Vice President, Chief Financial Officer and Treasurer
Telephone: (479) 785-6157
Mr. David Humphrey, Director of Investor Relations
Telephone (479) 785-6200