ARCBEST CORPORATION FORT SMITH, Ark., July 31, 2014 /PRNewswire/ -- ArcBest Corporation (Nasdaq: ARCB), today reported improved second quarter 2014 results reflecting stronger performances at its two largest operating companies, ABF Freight and Panther Premium Logistics(sm).
ArcBest's second quarter 2014 revenue was $658.6 million compared to revenue of $576.9 million in the second quarter of 2013, an increase of 14 percent. Second quarter net income was $17.2 million and $0.63 per share, or $17.8 million and $0.65 per share excluding pension settlement charges, compared to second quarter 2013 net income of $4.9 million, or $0.18 per share. On a per share basis, this represents ArcBest's most profitable quarter in six years.
At ABF Freight, second quarter revenue rose to $492.9 million from $446.8 million, while operating income increased to $22.8 million from $5.5 million in second quarter 2013. Cost as a percentage of revenue improved to 95.4 percent following implementation of the new labor agreement in November 2013, compared with 98.8 percent in the year-ago period.
ArcBest's emerging, non-asset-based businesses, including Panther, grew combined revenues at a rate of 28 percent. During the second quarter, these businesses equaled 27 percent of total consolidated revenue compared to 24 percent during the same period last year. Second quarter 2014 earnings before interest, taxes, depreciation and amortization ("EBITDA") at the non-asset-based businesses was $10.2 million, an increase of 47 percent compared to EBITDA in the second quarter of 2013.
The second quarter 2014 results included additional items of note:
-- The effect of the two-class method used for calculating earnings per
share, which requires the allocation of a portion of dividends and net
income to unvested restricted shares in determining per common share
amounts equaling $0.03 per share.
-- Costs of long-term incentive plans that are driven by ArcBest's total
shareholder return relative to its peer group equaling $0.07 per share.
On a combined basis, these two items approximated $0.10 per share in second quarter 2014, compared to a $0.02 per share effect in second quarter 2013. These items could occur in future periods depending on financial results and changes in ArcBest's share price.
"Our second quarter results improved significantly from both the first quarter of 2014 and the year-ago quarter, which was welcome news as we emerged from the harsh winter weather earlier this year," said ArcBest President and Chief Executive Officer Judy R. McReynolds. "As the economy picked up in the second quarter, ABF Freight experienced better pricing conditions and also saw the positive impact from the new labor agreement, while Panther reported one of the strongest quarters in its history. We are also seeing more customers buying at the enterprise level, when they require two or more ArcBest services. We are focused on taking advantage of all opportunities to better serve customers with holistic solutions across the supply chain."
McReynolds added that the company's new brand identity, logos, advertising campaign and tagline, "The Skill & The Will" - which were launched on April 30 - have been well-received by customers and employees.
"As we continue our efforts to help customers understand the full range of services we offer, we are excited about the public launch of a new website, TheSkillandTheWill.com, in early August," McReynolds said. "This site contains many real-life stories from our customers who benefited from our employees' willingness to go above and beyond, every day, to solve complex logistics challenges. It also tells the broader story of our company's culture through our customers' eyes."
ABF Freight
An improving economic environment and business growth at ABF Freight contributed to an additional 6 percent of second quarter daily freight tonnage versus the same period last year. Tightening network capacity combined with improving pricing trends and a lower cost structure resulted in better operating margins.
Total second quarter revenue per hundredweight increased by 4.2 percent over last year and increased 6.9 percent versus first quarter of this year. ABF Freight secured better freight rates and account pricing improvements amid broad LTL and truckload industry pricing strength. Going forward, freight profile, account mix and business level changes may impact pricing measures in the second half of the year.
ABF Freight also benefited from the previously announced network consolidation of 30 terminals that began in July 2013 and was completed in mid-March of this year. In addition, ABF Freight's recent ability to use purchased transportation, a flexibility component of the new ABF Freight labor contract, has positively impacted network operations. However, in this year's second quarter, both the level of savings from network enhancements as well as the expected incremental margins on revenue growth were impacted as ABF Freight brought on a significant number of new dock employees to handle the shipment growth. These new, less experienced dock workers currently represent a much greater percentage of ABF Freight's total dock workforce than in prior growth periods. ABF Freight expects to see improved productivity levels over the next few months as these new employees complete training and gain more experience.
Emerging, Non-Asset-Based Businesses
Panther Premium Logistics led the revenue growth and margin improvement in ArcBest's non-asset-based businesses. The stronger macroeconomic environment and resulting demand for the premium logistics solutions that Panther offers contributed to one of the most profitable quarters in its history.
Panther's second quarter revenue increased by 35 percent and operating income was nearly three times higher than the same period last year. Throughout 2014, Panther has increased its market share by adding new customers who value the company's premium service. Panther is also benefiting from resource investments by ArcBest, as well as a focus on growing its owner-operator agent network.
At ArcBest's other emerging non-asset-based businesses, ABF Logistics(sm) experienced second quarter revenue growth of 46 percent compared to the same period of 2013. Including the addition of new personnel and an emphasis on systems development to enhance its ability to meet customer needs, ABF Logistics experienced a slight improvement in second quarter profitability versus last year.
Second quarter revenues at FleetNet America(®) increased by 16 percent over 2013 as new customers were added during the quarter. Operating profit was slightly lower due to a write-off of receivables associated with a large bankrupt customer account. Historically, FleetNet's bad debt writeoffs have been minor.
ABF Moving(sm) experienced an 8 percent revenue increase during the quarter as it entered the seasonal period of increased business levels associated with summer moving activities. Profits for this business were below last year primarily due to changes in the mix of shipments being handled combined with continued investments in personnel and systems for future growth.
"The hard work we have done over the last few years to better position ABF Freight and to grow and invest in our emerging businesses is reflected in today's results," McReynolds said. "It is particularly gratifying to see Panther achieving such strong results after two full years as an ArcBest company. Our unique ability and willingness to solve complex transportation and logistics problems across the supply chain are increasingly recognized in the marketplace."
Conference Call
ArcBest Corporation will host a conference call with company executives to discuss the 2014 second quarter results. The call will be today, Thursday, July 31, at 9:30 a.m. ET (8:30 a.m. CT). Interested parties are invited to listen by calling (800) 896-0105. Following the call, a recorded playback will be available through the end of the day on August 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 21721477. The conference call and playback can also be accessed, through August 31, 2014 on ArcBest's website at arcb.com.
About ArcBest
ArcBest Corporation(sm) (Nasdaq: ARCB) solves complex logistics and transportation challenges. Our companies and brands - ABF Freight(sm), ABF Logistics(sm), Panther Premium Logistics(sm), 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 Corporation(sm). The Skill & The Will(sm).
Investor Relations Contact: David Humphrey Media Contact: Kathy Fieweger
Title: Vice President - Investor Relations Title: Chief Marketing Officer
Phone: 479-785-6200 Phone: 479-719-4358
Email: dhumphrey@arcb.com Email: kfieweger@arcb.com
Forward-Looking Statements
Certain statements and information in this press release concerning results for the three and six months ended June 30, 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 Corporation(sm) and its subsidiary companies.
ARCBEST CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
June 30 June 30
------- -------
2014 2013 2014 2013
---- ---- ---- ----
(Unaudited)
($ thousands, except share and per share data)
REVENUES $658,646 $576,899 $1,236,550 $1,097,586
OPERATING EXPENSES 631,694 568,482 1,218,300 1,112,520
------------------ ------- ------- --------- ---------
OPERATING INCOME (LOSS) 26,952 8,417 18,250 (14,934)
OTHER INCOME (EXPENSE)
Interest and dividend income 194 161 384 332
Interest expense and other related
financing costs (725) (1,079) (1,533) (2,286)
Other, net 950 366 1,315 1,450
419 (552) 166 (504)
--- ---- --- ----
INCOME (LOSS) BEFORE INCOME TAXES 27,371 7,865 18,416 (15,438)
INCOME TAX PROVISION (BENEFIT) 10,163 2,987 6,401 (6,921)
----------------------------- ------ ----- ----- ------
NET INCOME (LOSS) $17,208 $4,878 $12,015 $(8,517)
================ ======= ====== ======= =======
EARNINGS (LOSS) PER COMMON SHARE(1)
Basic $0.63 $0.18 $0.44 $(0.33)
Diluted $0.63 $0.18 $0.44 $(0.33)
======= ===== ===== ===== ======
AVERAGE COMMON SHARES OUTSTANDING
Basic 26,005,105 25,694,327 25,941,370 25,666,484
Diluted 26,005,105 25,694,327 25,942,046 25,666,484
======= ========== ========== ========== ==========
CASH DIVIDENDS DECLARED
PER COMMON SHARE $0.03 $0.03 $0.06 $0.06
======================= ===== ===== ===== =====
(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 (but not losses) to unvested
restricted stock for calculating per share amounts.
NET INCOME (LOSS) $17,208 $4,878 $12,015 $(8,517)
EFFECT OF UNVESTED RESTRICTED STOCK
AWARDS (848) (215) (602) (74)
----------------------------------- ---- ---- ---- ---
ADJUSTED NET INCOME
(LOSS) FOR CALCULATING
EARNINGS (LOSS) PER
COMMON SHARE $16,360 $4,663 $11,413 $(8,591)
======================= ======= ====== ======= =======
ARCBEST CORPORATION
CONSOLIDATED BALANCE SHEETS
---------------------------
June 30 December 31
2014 2013
(Unaudited) Note
($ thousands, except share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $129,150 $105,354
Short-term investments 36,015 35,906
Restricted cash, cash equivalents, and short-term investments 1,385 1,902
Accounts receivable, less allowances (2014 - $4,948; 2013 - $4,533) 236,201 202,540
Other accounts receivable, less allowances (2014 - $1,661; 2013 - $1,422) 7,569 7,272
Prepaid expenses 17,635 19,016
Deferred income taxes 38,271 37,482
Prepaid and refundable income taxes 2,862 2,061
Other 8,136 6,952
----- ----- -----
TOTAL CURRENT ASSETS 477,224 418,485
PROPERTY, PLANT AND EQUIPMENT
Land and structures 249,196 245,805
Revenue equipment 617,396 589,902
Service, office, and other equipment 125,818 124,303
Software 111,248 110,998
Leasehold improvements 23,837 23,582
---------------------- ------ ------
1,127,495 1,094,590
Less allowances for depreciation and amortization 724,965 700,193
------------------------------------------------- ------- -------
402,530 394,397
GOODWILL 77,749 76,448
INTANGIBLE ASSETS, net 74,462 75,387
OTHER ASSETS 53,098 52,609
------------ ------ ------
$1,085,063 $1,017,326
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Bank overdraft and drafts payable $17,218 $13,609
Accounts payable 121,195 89,091
Income taxes payable 6,947 1,782
Accrued expenses 179,141 173,622
Current portion of long-term debt 36,192 31,513
--------------------------------- ------ ------
TOTAL CURRENT LIABILITIES 360,693 309,617
LONG-TERM DEBT, less current portion 82,967 81,332
PENSION AND POSTRETIREMENT LIABILITIES 33,983 26,847
OTHER LIABILITIES 14,657 15,041
DEFERRED INCOME TAXES 60,293 64,028
STOCKHOLDERS' EQUITY
Common stock, $0.01 par value, authorized 70,000,000 shares; issued 2014:
27,692,464 shares; 2013: 27,507,241 shares 277 275
Additional paid-in capital 299,631 296,133
Retained earnings 307,115 296,735
Treasury stock, at cost, 1,677,932 shares (57,770) (57,770)
Accumulated other comprehensive loss (16,783) (14,912)
------------------------------------ ------- -------
TOTAL STOCKHOLDERS' EQUITY 532,470 520,461
-------------------------- ------- -------
$1,085,063 $1,017,326
========== ==========
Note: The balance sheet at
December 31, 2013 has been
derived from the audited
financial statements at that
date but does not include all
of the information and
footnotes required by
generally accepted accounting
principles for complete
financial statements.
ARCBEST CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended
June 30
2014 2013
---- ----
(Unaudited)
($ thousands)
OPERATING ACTIVITIES
Net income (loss) $12,015 $(8,517)
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities:
Depreciation and amortization 39,540 43,914
Amortization of intangibles 2,137 2,087
Pension settlement expense 4,600 -
Share-based compensation
expense 3,668 2,485
Provision for losses on
accounts receivable 1,032 1,312
Deferred income tax benefit (2,358) (5,761)
Gain on sale of property and
equipment (249) (391)
Changes in operating assets and
liabilities:
Receivables (34,888) (26,617)
Prepaid expenses 1,383 1,402
Other assets (1,482) (297)
Income taxes 2,226 163
Accounts payable, accrued
expenses, and other
liabilities 30,019 18,152
------------------------- ------ ------
NET CASH PROVIDED BY OPERATING
ACTIVITIES 57,643 27,932
------------------------------ ------ ------
INVESTING ACTIVITIES
Purchases of property, plant
and equipment, net of
financings (15,570) (8,638)
Proceeds from sale of property
and equipment 1,241 1,430
Purchases of short-term
investments (2,967) (6,692)
Proceeds from sale of short-
term investments 2,940 5,914
Business acquisition, net of
cash acquired (2,663) (4,146)
Capitalization of internally
developed software (3,859) (4,050)
---------------------------- ------ ------
NET CASH USED IN INVESTING
ACTIVITIES (20,878) (16,182)
-------------------------- ------- -------
FINANCING ACTIVITIES
Payments on long-term debt (16,528) (22,009)
Net change in bank overdraft 3,602 2,026
Net change in restricted cash,
cash equivalents, and short-
term investments 517 7,758
Deferred financing costs (61) (61)
Payment of common stock
dividends (1,635) (1,613)
Proceeds from the exercise of
stock options 1,136 -
NET CASH USED IN FINANCING
ACTIVITIES (12,969) (13,899)
-------------------------- ------- -------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 23,796 (2,149)
Cash and cash equivalents at
beginning of period 105,354 90,702
---------------------------- ------- ------
CASH AND CASH
EQUIVALENTS AT END
OF PERIOD $129,150 $88,553
=================== ======== =======
NONCASH INVESTING ACTIVITIES
Accruals for
equipment received $6,869 $268
Equipment financed $22,842 $ -
ARCBEST CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
Three Months Ended Six Months Ended
June 30 June 30
2014 2013 2014 2013
---- ---- ---- ----
(Unaudited)
($ thousands, except per share data)
ARCBEST CORPORATION - CONSOLIDATED
----------------------------------
Net Income (Loss)
Amounts on a GAAP basis $17,208 $4,878 $12,015 $(8,517)
Pension settlement expense, after-
tax(1) 556 - 2,811 -
Non-GAAP amounts $17,764 $4,878 $14,826 $(8,517)
================ ======= ====== ======= =======
Diluted Earnings (Loss) Per Share
Amounts on a GAAP basis $0.63 $0.18 $0.44 $(0.33)
Pension settlement expense, after-
tax(1) 0.02 - 0.11 -
Non-GAAP amounts $0.65 $0.18 $0.55 $(0.33)
================ ===== ===== ===== ======
ARCBEST CORPORATION - CONSOLIDATED
----------------------------------
Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA)
Net income (loss) $17,208 $4,878 $12,015 $(8,517)
Interest expense 725 1,079 1,533 2,286
Income tax provision (benefit) 10,163 2,987 6,401 (6,921)
Depreciation and amortization 21,225 22,807 41,677 46,001
Amortization of share-based
compensation 2,100 1,181 3,668 2,485
Amortization of actuarial losses of
benefit plans and pension settlement
expense(1) 1,625 2,912 5,893 5,824
------------------------------------- ----- ----- ----- -----
$53,046 $35,844 $71,187 $41,158
======= ======= ======= =======
(1) The three and six months ended June 30,
2014 includes pension settlement
expense of $0.9 million (pre-tax) and
$4.6 million (pre-tax), respectively,
related to lump-sum distributions from
ArcBest's nonunion defined benefit
pension plan and, for the six-month
period, the plan's purchase of a
nonparticipating annuity contract to
settle vested benefits of participants
and beneficiaries who were receiving
monthly benefit payments as of the
January 2014 contract purchase date.
Non-GAAP Financial Measures. ArcBest reports its
financial results in accordance with generally accepted
accounting principles ("GAAP"). However, management
believes that certain non-GAAP performance measures
and ratios utilized for internal analysis provide
financial statement users meaningful comparisons
between current and prior period results, as well as
important information regarding performance trends.
Certain information discussed in the scheduled
conference call could be considered non-GAAP measures.
Non-GAAP financial measures should be viewed in
ARCBEST CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
------------------------------------------------------
Three Months Ended Three Months Ended
June 30 June 30
2014 2013
---- ----
(Unaudited)
($ thousands)
Operating Depreciation EBITDA Operating
Income Depreciation EBITDA
Income and
Amortization and Amortization
------ ------------- ----------------
Premium Logistics
(Panther)(1) $4,358 $2,838 $7,196 $1,506 $2,594 $4,100
Emergency & Preventative
Maintenance (FleetNet) 700 237 937 810 130 940
Transportation Management (ABF
Logistics) 854 252 1,106 506 147 653
Household Goods Moving Services
(ABF Moving) 623 346 969 948 285 1,233
------------------------------- --- --- --- --- --- -----
Total non-asset-based
segments $6,535 $3,673 $10,208 $3,770 $3,156 $6,926
===================== ====== ====== ======= ====== ====== ======
Six Months Ended Six Months Ended
June 30 June 30
2014 2013
---- ----
(Unaudited)
($ thousands)
Operating Depreciation Operating
and Income
Amortization EBITDA Depreciation EBITDA
Income and
Amortization
(Loss)
---
Premium Logistics
(Panther)(1) $7,722 $5,574 $13,296 $642 $5,144 $5,786
Emergency & Preventative
Maintenance (FleetNet) 2,101 411 2,512 1,522 262 1,784
Transportation Management
(ABF Logistics) 1,389 469 1,858 1,023 265 1,288
Household Goods Moving
Services (ABF Moving) (218) 695 477 717 525 1,242
---------------------- ---- --- --- --- --- -----
Total non-asset-based
segments $10,994 $7,149 $18,143 $3,904 $6,196 $10,100
===================== ======= ====== ======= ====== ====== =======
(1) Depreciation and amortization
consists primarily of
amortization of intangibles,
including customer relationships
and software associated with the
June 15, 2012 acquisition of
Panther.
ARCBEST CORPORATION
FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS
---------------------------------------------------------------
Three Months Ended Six Months Ended
June 30 June 30
2014 2013 2014 2013
---- ---- ---- ----
(Unaudited)
($ thousands, except percentages)
REVENUES
Freight Transportation (ABF
Freight) $492,857 $446,750 $921,728 $854,031
Premium Logistics (Panther) 81,425 60,431 153,651 113,683
Emergency & Preventative Maintenance
(FleetNet) 38,307 32,935 80,006 65,457
Transportation Management (ABF Logistics) 35,493 24,267 65,210 45,885
Household Goods Moving Services (ABF Moving) 22,855 21,252 37,605 34,828
------------------------------------------- ------ ------ ------ ------
Total non-asset-based segments 178,080 138,885 336,472 259,853
------------------------------ ------- ------- ------- -------
Other revenues and eliminations (12,291) (8,736) (21,650) (16,298)
------------------------------- ------- ------ ------- -------
Total consolidated revenues $658,646 $576,899 $1,236,550 $1,097,586
=========================== ======== ======== ========== ==========
OPERATING EXPENSES
Freight Transportation (ABF Freight)
$279,372 56.7% $272,641 61.0% $540,527 58.6% $539,819 63.2%
Salaries, wages, and benefits(1)
Fuel, supplies, and expenses 93,277 18.9 82,441 18.5 184,067 20.0 165,773 19.4
Operating taxes and licenses 11,770 2.4 10,939 2.4 23,263 2.5 21,929 2.6
Insurance 5,966 1.2 6,068 1.4 11,361 1.2 10,552 1.2
Communications and utilities 3,731 0.8 3,879 0.9 7,973 0.9 7,812 0.9
Depreciation and amortization 16,841 3.4 18,967 4.2 33,178 3.6 38,541 4.5
Rents and purchased transportation 55,549 11.3 44,260 9.9 102,969 11.2 82,729 9.7
Gain on sale of property and equipment (40) - (182) - (243) - (394) -
Pension settlement expense(2) 708 0.1 - - 3,598 0.4 - -
Other 2,848 0.6 2,240 0.5 4,382 0.4 4,322 0.5
470,022 95.4% 441,253 98.8% 911,075 98.8% 871,083 102.0%
------- ---- ------- ---- ------- ---- ------- -----
Premium Logistics (Panther)
$60,185 73.9% $46,233 76.5% $114,759 74.7% $87,270 76.8%
Purchased transportation
Depreciation and amortization(3) 2,838 3.5 2,594 4.3 5,574 3.6 5,144 4.5
Salaries, benefits, insurance, and other 14,044 17.2 10,098 16.7 25,596 16.7 20,627 18.1
---------------------------------------- ------ ---- ------ ---- ------ ---- ------ ----
77,067 94.6% 58,925 97.5% 145,929 95.0% 113,041 99.4%
Emergency & Preventative
Maintenance (FleetNet) $37,607 $32,125 $77,905 $63,935
Transportation Management (ABF Logistics) 34,639 23,761 63,821 44,862
Household Goods Moving Services (ABF Moving) 22,232 20,304 37,823 34,111
------------------------------------------- ------ ------ ------ ------
Total non-asset-based segments(1)(2) 171,545 135,115 325,478 255,949
Other expenses and eliminations(1)(2) (9,873) (7,886) (18,253) (14,512)
------------------------------------ ------ ------ ------- -------
Total consolidated operating
expenses and costs(1)(2) $631,694 $568,482 $1,218,300 $1,112,520
============================ ======== ======== ========== ==========
(1) Operating expenses for the three-month
period ended June 30, 2014 include $2.9
million (pre-tax), on a consolidated
basis, of costs of long-term incentive
plans that are driven by ArcBest's
total shareholder return relative to
its peer group. Of the $2.9 million
consolidated total, $2.2 million was
reported by ABF Freight, $0.6 million
was reported in Other expenses and
eliminations, and $0.1 million was
reported by the non-asset-based
segments.
(2) Pension settlement expense, which
totaled $0.9 million (pre-tax) and
$4.6 million (pre-tax) on a
consolidated basis for the three and
six months ended June 30, 2014,
respectively, relates to lump-sum
distributions from ArcBest's nonunion
defined benefit pension plan and, for
the six-month period, the plan's
purchase 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 $4.6 million (pre-
tax) pension settlement expense for the
six months ended June 30, 2014, $3.6
million was reported by ABF Freight,
$0.9 million was reported in Other
expenses and eliminations, and $0.1
million was reported by the non-asset-
based segments.
(3) Depreciation and amortization consists
primarily of amortization of
intangibles, including customer
relationships and software associated
with the June 15, 2012 acquisition of
Panther.
ARCBEST CORPORATION
FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS - Continued
---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30 June 30
2014 2013 2014 2013
---- ---- ---- ----
(Unaudited)
($ thousands)
OPERATING INCOME (LOSS)
Freight Transportation
(ABF Freight) $22,835 $5,497 $10,653 $(17,052)
Premium Logistics (Panther) 4,358 1,506 7,722 642
Emergency & Preventative
Maintenance (FleetNet) 700 810 2,101 1,522
Transportation Management (ABF
Logistics) 854 506 1,389 1,023
Household Goods Moving Services
(ABF Moving) 623 948 (218) 717
------------------------------- --- --- ---- ---
Total non-asset-based segments 6,535 3,770 10,994 3,904
Other (loss) and eliminations (2,418) (850) (3,397) (1,786)
----------------------------- ------ ---- ------ ------
Total consolidated
operating income
(loss) $26,952 $8,417 $18,250 $(14,934)
================== ======= ====== ======= ========
As disclosed in ArcBest'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 ArcBest's
businesses which provide ocean container
transport and warehousing services have
been reclassified from "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 Six Months Ended
June 30 June 30
2014 2013 % Change 2014 2013 % Change
---- ---- -------- ---- ---- --------
(Unaudited)
Freight Transportation (ABF Freight)
126.5
Workdays 63.5 64.0 126.5
Billed Revenue(1) / CWT $28.91 $27.74 4.2% $28.01 $27.31 2.6%
Billed Revenue(1) / Shipment $393.11 $380.08 3.4% $387.78 $376.20 3.1%
Shipments 1,261,670 1,190,678 6.0% 2,395,002 2,286,356 4.8%
Shipments / Day 19,869 18,604 6.8% 18,933 18,074 4.8%
Tonnage (tons) 857,892 815,695 5.2% 1,657,703 1,574,584 5.3%
Tons / Day 13,510 12,745 6.0% 13,104 12,447 5.3%
(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.
SOURCE ArcBest Corporation
