Chronicle Journal: Finance

ArcBest Corporation Announces Third Quarter 2014 Results

FORT SMITH, Ark., Nov. 3, 2014 /PRNewswire/ -- ArcBest Corporation (Nasdaq: ARCB), today reported improved third quarter 2014 results reflecting business growth at ABF Freight and all of its emerging companies, including an ongoing strong performance at Panther Premium Logistics.

ArcBest's third quarter 2014 revenue was $711.3 million compared to revenue of $623.4 million in the third quarter of 2013, an increase of 14 percent. Third quarter net income was $19.6 million and $0.72 per share, or $20.1 million and $0.74 per share excluding pension settlement charges, compared to third quarter 2013 net income of $14.0 million, and $0.52 per share, or $14.3 million and $0.53 per share excluding pension settlement charges and tax items. 

At ABF Freight, third quarter revenue was $523.4 million, an 11 percent increase over $471.0 million in the same period last year. Operating income increased to $24.7 million from $17.2 million in third quarter 2013. ABF Freight's operating ratio was 95.3 percent versus 96.3 percent in the year-ago period.

On a combined basis, revenue for ArcBest's emerging, non-asset-based businesses increased by 23 percent. During the quarter, these businesses represented 28 percent of ArcBest's total consolidated revenue, an increase compared to the first half of this year and a higher percentage than in all of 2013. Third quarter 2014 earnings before interest, taxes, depreciation and amortization ("EBITDA") at the non-asset-based businesses was $13.0 million, an increase of 35 percent compared to EBITDA of $9.7 million in the third quarter of 2013.

"We continued to see strong demand for services from the ArcBest companies in the third quarter and are pleased that our commitment to provide customers easier access to our supply chain solutions is being well received," said Judy R. McReynolds, ArcBest President and Chief Executive Officer. "Panther, in particular, reported one of its strongest quarters ever, contributing over $4 million of operating income and $7 million of EBITDA. Year-to-date through September, Panther's EBITDA was more than $20 million."

McReynolds noted that ABF Logisticssm and ABF Movingsm also experienced strong gains in operating profit for the quarter and that ABF Freight continues to focus on improving the services offered to its customers, implementing important operational initiatives, and working toward increased success in the future.

ABF Freight

During the quarter, ABF Freight benefited from an LTL freight environment that was positively impacted by improving economic trends, tighter industry capacity amid driver shortages, and additional LTL shipments associated with service and demand constraints in other transportation modes.  Though new customers were added, the significant growth ABF Freight experienced during the quarter was strongly impacted by additional shipments from existing customers.  Because more freight was moving through the system, costs were incurred to maintain customer service. These higher business levels, while beneficial for long-term growth, require additional resources in the short term.

As experienced throughout the first half of the year, the pricing environment was positive, and ABF Freight was able to obtain price increases needed to improve operating margins. Third quarter total revenue per hundredweight increased by 3.0 percent over last year and improved 2.1 percent versus this year's second quarter. During the quarter, increases in the amount of ABF Freight's LTL shipments combined with fewer truckload-rated shipments affected the total price increases ABF secured. As previously announced, ABF Freight implemented a 5.4 percent increase in general rates and charges effective today.  This increase, the second GRI implemented during the year, impacts approximately 35 percent of ABF Freight's business.

Though showing some improvement relative to the second quarter, the productivity of inexperienced dock employees hired as a result of historically high business growth and the associated increase of labor hours continued to impact ABF Freight's operational results during the third quarter. Actions are actively being taken to drive productivity improvements and to reduce total labor hours to match available freight levels. In order to reduce costs and improve the transportation services offered to our customers, returning productivity to historical levels is an important priority for ABF Freight's management team. 

ABF Freight President Retires

In mid-October, ABF Freight president and CEO Roy Slagle retired after 37 years with the company.  "During his long career with ABF Freight, Roy Slagle provided dedicated service and expertise in most every area of the company," said McReynolds. "Roy was a key contributor to ABF Freight's success and positive reputation in the transportation industry.  I wish Roy well in his retirement and continued success in the future." 

ABF Freight's new president is Tim Thorne, a 24-year veteran of the company. "Tim has a strong background in operations and field management at ABF Freight. With his approach to leadership and pursuit of excellence in the customer experience, ABF Freight is well positioned to succeed going forward," McReynolds added.

Emerging, Non-Asset-Based Businesses

During the third quarter, ArcBest's emerging businesses all generated revenue growth compared to the same period last year, highlighted by solid revenue and margin increases at Panther Premium Logistics, ABF Logistics and ABF Moving. 

The improving economy and significant growth at key customer accounts contributed to Panther's third quarter revenue increase of 26 percent and an operating income increase of 33 percent over the same period last year. Panther continues to experience strong demand for its services across all of the industry markets it serves. Increased business from several new customer accounts added during the year is also contributing to the growth in revenue and profit.

Third quarter revenues at FleetNet America® increased by 8 percent over the previous year while operating profit was moderately lower. FleetNet's revenue growth benefited from business with several new fleet maintenance customers and improved pricing yield on existing accounts despite the effect of mild summer weather on the typical seasonal demand for emergency roadside services. The operating profit comparison to the prior year was influenced by investments to support future business growth.

Consistent with the first half of the year, ABF Logistics increased third quarter revenue by 42 percent compared to the same period of 2013, primarily due to shipment growth and higher revenue per load in its truckload brokerage division. Operating profit in the third quarter was the strongest of this year, with growth of 96 percent over the same period in 2013.

ABF Moving experienced a 16 percent revenue increase during the quarter and improved its third quarter operating profit by 80 percent. ABF Moving's increased ability to service seasonal summer demand for household goods moving services combined with improved cost management were positive factors in the quarter. 

Capital Structure and Financial Resources

ArcBest's financial strength has provided stability through previously challenging economic periods while offering options in the ongoing pursuit of available growth opportunities. As recently announced, ArcBest's board of directors approved an increase in the quarterly cash dividend to $0.06 per share from the previous amount of $0.03 per share. "We are pleased to make this positive change for shareholders.  In order to achieve our goals for the future, we continue to be well positioned to take advantage of acquisition and organic investment opportunities as they arise while, at the same time, improving shareholder returns," said McReynolds.

Conference Call

ArcBest Corporation will host a conference call with company executives to discuss the 2014 third quarter results. The call will be today, Monday, November 3, 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 December 4, 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 21735598. The conference call and playback can also be accessed, through December 4, 2014, on ArcBest's website at arcb.com.

About ArcBest

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

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

Forward-Looking Statements

Certain statements and information in this press release concerning results for the three and nine months ended September 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.

Financial Data and Operating Statistics

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

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

 

ARCBEST CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS





Three Months Ended

September 30


Nine Months Ended

September 30





2014


2013


2014


2013



(Unaudited)



($ thousands, except share and per share data)




REVENUES

$

711,295


$

623,414


$

1,947,845


$

1,720,999















OPERATING EXPENSES


678,354



602,912



1,896,655



1,715,431















OPERATING INCOME


32,941



20,502



51,190



5,568















OTHER INCOME (COSTS)













Interest and dividend income


215



167



600



499


Interest and other related financing costs


(834)



(993)



(2,367)



(3,279)


Other, net


234



1,328



1,549



2,778




(385)



502



(218)



(2)















INCOME BEFORE INCOME TAXES


32,556



21,004



50,972



5,566















INCOME TAX PROVISION


12,938



7,022



19,339



101















NET INCOME

$

19,618


$

13,982


$

31,633


$

5,465















EARNINGS PER COMMON SHARE(1)













Basic

$

0.72


$

0.52


$

1.16


$

0.20


Diluted

$

0.72


$

0.52


$

1.16


$

0.20















AVERAGE COMMON SHARES OUTSTANDING













Basic


26,054,678



25,736,810



25,979,555



25,690,184


Diluted


26,054,678



25,736,810



25,980,008



25,690,184















CASH DIVIDENDS DECLARED
PER COMMON SHARE

$

0.03


$

0.03


$

0.09


$

0.09


(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.
















NET INCOME

$

19,618


$

13,982


$

31,633


$

5,465
















EFFECT OF UNVESTED RESTRICTED
STOCK AWARDS


(981)



(585)



(1,591)



(243)

















ADJUSTED NET INCOME FOR CALCULATING

EARNINGS PER COMMON SHARE

$

18,637


$

13,397


$

30,042


$

5,222

















 

ARCBEST CORPORATION

CONSOLIDATED BALANCE SHEETS


September 30

2014


December 31

2013


(Unaudited)


Note


($ thousands, except share data)

ASSETS












CURRENT ASSETS






Cash and cash equivalents

$

159,382


$

105,354

Short-term investments


43,858



35,906

Restricted cash, cash equivalents, and short-term investments


1,385



1,902

Accounts receivable, less allowances (2014 – $5,613; 2013 – $4,533)


243,099



202,540

Other accounts receivable, less allowances (2014 – $1,676; 2013 – $1,422)


6,144



7,272

Prepaid expenses


17,542



19,016

Deferred income taxes


43,352



37,482

Prepaid and refundable income taxes


2,262



2,061

Other


7,489



6,952

        TOTAL CURRENT ASSETS


524,513



418,485







PROPERTY, PLANT AND EQUIPMENT






Land and structures


250,816



245,805

Revenue equipment


629,791



589,902

Service, office, and other equipment


128,645



124,303

Software


113,770



110,998

Leasehold improvements


23,941



23,582



1,146,963



1,094,590

Less allowances for depreciation and amortization


735,090



700,193



411,873



394,397

GOODWILL


77,078



76,448

INTANGIBLE ASSETS, net


73,919



75,387

OTHER ASSETS


53,184



52,609








$

1,140,567


$

1,017,326







LIABILITIES AND STOCKHOLDERS' EQUITY












CURRENT LIABILITIES






Bank overdraft and drafts payable

$

15,914


$

13,609

Accounts payable


135,022



89,091

Income taxes payable


16,809



1,782

Accrued expenses


187,682



173,622

Current portion of long-term debt


40,088



31,513

TOTAL CURRENT LIABILITIES


395,515



309,617







LONG-TERM DEBT, less current portion


85,735



81,332

PENSION AND POSTRETIREMENT LIABILITIES


37,272



26,847

OTHER LIABILITIES


14,482



15,041

DEFERRED INCOME TAXES


56,481



64,028







STOCKHOLDERS' EQUITY






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

    issued 2014: 27,697,264 shares; 2013: 27,507,241 shares


277



275

Additional paid-in capital


301,365



296,133

Retained earnings


325,910



296,735

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


(57,770)



(57,770)

Accumulated other comprehensive loss


(18,700)



(14,912)

TOTAL STOCKHOLDERS' EQUITY


551,082



520,461








$

1,140,567


$

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





Nine Months Ended

September 30



2014


2013



(Unaudited)



($ thousands)


OPERATING ACTIVITIES







Net income

$

31,633


$

5,465


Adjustments to reconcile net income to net cash
provided by operating activities:







Depreciation and amortization


60,613



64,439


Amortization of intangibles


3,242



3,130


Pension settlement expense


5,405



1,834


Share-based compensation expense


5,362



3,579


Provision for losses on accounts receivable


1,647



1,658


Deferred income tax benefit


(7,409)



(5,770)


Gain on sale of property and equipment


(597)



(486)


Changes in operating assets and liabilities:







Receivables


(41,180)



(36,513)


Prepaid expenses


1,477



1,768


Other assets


(1,081)



(1,557)


Income taxes


9,981



6,868


Accounts payable, accrued expenses, and other liabilities(1)


49,108



21,836


NET CASH PROVIDED BY OPERATING ACTIVITIES


118,201



66,251









INVESTING ACTIVITIES







Purchases of property, plant and equipment, net of financings


(23,756)



(13,078)


Proceeds from sale of property and equipment


2,701



1,857


Purchases of short-term investments


(25,347)



(21,230)


Proceeds from sale of short-term investments


17,478



21,713


Business acquisition, net of cash acquired


(2,647)



(4,146)


Capitalization of internally developed software


(6,016)



(5,959)


NET CASH USED IN INVESTING ACTIVITIES


(37,587)



(20,843)









FINANCING ACTIVITIES







Payments on long-term debt


(28,024)



(31,775)


Net change in bank overdraft and other


2,304



(2,002)


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


517



7,757


Deferred financing costs


(61)



(61)


Payment of common stock dividends


(2,458)



(2,418)


Proceeds from the exercise of stock options


1,136




NET CASH USED IN FINANCING ACTIVITIES


(26,586)



(28,499)









NET INCREASE IN CASH AND CASH EQUIVALENTS   


54,028



16,909


Cash and cash equivalents at beginning of period


105,354



90,702


CASH AND CASH EQUIVALENTS AT END OF PERIOD

$

159,382


$

107,611









NONCASH INVESTING ACTIVITIES







Accruals for equipment received

$

9,632


$

264


Equipment financed

$

41,002


$

36


(1)  2013 includes $17.8 million of cash contributions to the Company's nonunion defined benefit pension plan.

 





ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES



















 

Three Months Ended

September 30


Nine Months Ended

September 30



2014


2013


2014


2013



(Unaudited)


($ thousands, except per share data)














ARCBEST CORPORATION – CONSOLIDATED


























Net Income













Amounts on a GAAP basis

$

19,618


$

13,982


$

31,633


$

5,465


Tax benefits and credits(1)




(838)



(701)



(2,474)


Pension settlement expense, after-tax(2)


492



1,121



3,303



1,121


Non-GAAP amounts

$

20,110


$

14,265


$

34,235


$

4,112















Diluted Earnings Per Share













Amounts on a GAAP basis

$

0.72


$

0.52


$

1.16


$

0.20


Tax benefits and credits(1)




(0.03)



(0.03)



(0.09)


Pension settlement expense, after-tax(2)


0.02



0.04



0.13



0.04


Non-GAAP amounts

$

0.74


$

0.53


$

1.26


$

0.15















ARCBEST CORPORATION – CONSOLIDATED













Earnings Before Interest, Taxes, Depreciation
and Amortization (EBITDA)













      Net income

$

19,618


$

13,982


$

31,633


$

5,465


      Interest and other related financing costs


834



993



2,367



3,279


      Income tax provision


12,938



7,022



19,339



101


      Depreciation and amortization


22,177



21,569



63,855



67,569


      Amortization of share-based compensation


1,694



1,095



5,362



3,579


      Amortization of actuarial losses of benefit plans and pension settlement expense(2)


1,480



2,994



7,373



8,818



$

58,741


$

47,655


$

129,929


$

88,811




























(1)

Tax adjustments are related to decreases in the deferred tax asset valuation allowances and, for the 2013 periods, alternative fuel tax credits.

(2)

The three and nine months ended September 30, 2014 includes pension settlement expense of $0.8 million (pre-tax) and $5.4 million (pre-tax), respectively. The three and nine months ended September 30, 2013 include pension settlement expense of $1.8 million (pre-tax).

 

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 addition to, and not as an alternative for, ArcBest's reported results. Management believes EBITDA to be relevant and useful information as EBITDA is a standard measure commonly reported and widely used by analysts, investors and others to measure financial performance and ability to service debt obligations. However, these financial measures should not be construed as better measurements than operating income, operating cash flow, net income or earnings per share, as defined by GAAP. Other companies may calculate EBITDA differently and, therefore, ArcBest's EBITDA may not be comparable to similarly titled measures of other companies.


 






ARCBEST CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES








Three Months Ended

September 30

 2014


Three Months Ended

September 30

 2013


(Unaudited)


($ thousands)


 

Operating Income

Depreciation and Amortization

EBITDA


Operating Income

Depreciation and Amortization

EBITDA















Premium Logistics (Panther)(1)

$

4,119

$

2,891

$

7,010


$

3,102

$

2,665

$

5,767

Emergency & Preventative Maintenance (FleetNet)


739


266


1,005



845


138


983

Transportation Management (ABF Logistics)


1,060


256


1,316



541


171


712

Household Goods Moving Services (ABF Moving)


3,309


349


3,658



1,835


354


2,189

Total non-asset-based segments

$

9,227

$

3,762

$

12,989


$

6,323

$

3,328

$

9,651











Nine Months Ended

September 30

2014


Nine Months Ended

September 30

2013


(Unaudited)


($ thousands)


 

Operating

Income

Depreciation and Amortization

EBITDA


Operating Income


Depreciation and Amortization

EBITDA















Premium Logistics (Panther)(1)

$

11,841

$

8,465

$

20,306


$

3,745

$

7,809

$

11,554

Emergency & Preventative Maintenance (FleetNet)


2,840


677


3,517



2,367


400


2,767

Transportation Management (ABF Logistics)


2,449


725


3,174



1,564


449


2,013

Household Goods Moving Services (ABF Moving)


3,091


1,043


4,134



2,552


880


3,432

Total non-asset-based segments

$

20,221

$

10,910

$

31,131


$

10,228

$

9,538

$

19,766

(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

September 30



Nine Months Ended

September 30



2014



2013



2014



2013



(Unaudited)

($ thousands, except percentages)

REVENUES
















Freight Transportation (ABF Freight)

$

523,351



$

471,031



$

1,445,079



$

1,325,062


















Premium Logistics (Panther)


82,784




65,851




236,435




179,533


Emergency & Preventative Maintenance (FleetNet)


40,117




37,047




120,123




102,504


Transportation Management (ABF Logistics)


40,672




28,669




105,882




74,554


Household Goods Moving Services (ABF Moving)


35,338




30,530




72,943




65,358


Total non-asset-based segments


198,911




162,097




535,383




421,949


















Other and eliminations


(10,967)




(9,714)




(32,617)




(26,012)


Total consolidated revenues

$

711,295



$

623,414



$

1,947,845



$

1,720,999


















OPERATING EXPENSES

Freight Transportation (ABF Freight)


Salaries, wages, and benefits

$

294,826

56.3%


$

276,683

58.7%


$

835,354

57.8%


$

816,502

61.6%

Fuel, supplies, and expenses


91,406

17.5



84,714

18.0



275,473

19.1



250,486

18.9

Operating taxes and licenses


11,262

2.2



10,864

2.3



34,525

2.4



32,793

2.5

Insurance


6,498

1.2



6,858

1.5



17,859

1.2



17,410

1.3

Communications and utilities


3,768

0.7



3,724

0.8



11,741

0.8



11,535

0.9

Depreciation and amortization


17,746

3.4



17,621

3.7



50,925

3.5



56,162

4.2

Rents and purchased transportation


69,985

13.4



50,507

10.7



172,954

12.0



133,236

10.1

Gain on sale of property and equipment


(333)

(0.1)



(93)



(576)



(487)

Pension settlement expense(1)


627

0.1



1,612

0.3



4,224

0.3



1,612

0.1

Other


2,829

0.6



1,325

0.3



7,211

0.5



5,649

0.4



498,614

95.3%



453,815

96.3%



1,409,690

97.6%



1,324,898

100.00%

















Premium Logistics (Panther)

















Purchased transportation

$

61,298

74.0%


$

50,220

76.3%


$

176,057

74.5%


$

137,489

76.6%

Depreciation and amortization(2)


2,891

3.5



2,665

4.0



8,465

3.6



7,809

4.3

Salaries, benefits, insurance, and other


14,476

17.5



9,864

15.0



40,072

16.9



30,490

17.0



78,665

95.0%



62,749

95.3%



224,594

95.0%



175,788

97.9%

















Emergency & Preventative Maintenance (FleetNet)

$

39,378



$

36,202



$

117,283



$

100,137


Transportation Management (ABF Logistics)


39,612




28,128




103,433




72,990


Household Goods Moving Services (ABF Moving)


32,029




28,695




69,852




62,806


Total non-asset-based segments(1)


189,684




155,774




515,162




411,721


















Other and eliminations(1)


(9,944)




(6,677)




(28,197)




(21,188)


Total consolidated operating expenses and costs(1)

$

678,354



$

602,912



$

1,896,655



$

1,715,431


(1)

Pension settlement expense totaled $0.8 million (pre-tax) and $5.4 million (pre-tax) on a consolidated basis for the three and nine months ended September 30, 2014, respectively, and $1.8 million (pre-tax) for the three and nine months ended September 30, 2013, respectively. Of the total $5.4 million (pre-tax) pension settlement expense for the nine months ended September 30, 2014, $4.2 million was reported by ABF Freight, $1.1 million was reported in Other and eliminations, and $0.1 million was reported by the non-asset-based segments. Of the total $1.8 million (pre-tax) pension settlement expense for the nine months ended September 30, 2013, $1.5 million was reported by ABF Freight and $0.3 million was reported in Other and eliminations.

(2)

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

 



ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS – Continued



Three Months Ended

September 30



Nine Months Ended

September 30







2014


2013



2014



2013



(Unaudited)

($ thousands)

OPERATING INCOME
















Freight Transportation (ABF Freight)

$

24,737



$

17,216



$

35,389



$

164


















Premium Logistics (Panther)


4,119




3,102




11,841




3,745


Emergency & Preventative Maintenance (FleetNet)


739




845




2,840




2,367


Transportation Management (ABF Logistics)


1,060




541




2,449




1,564


Household Goods Moving Services (ABF Moving)


3,309




1,835




3,091




2,552


Total non-asset-based segments


9,227




6,323




20,221




10,228


















Other and eliminations(1)


(1,023)




(3,037)




(4,420)




(4,824)


Total consolidated operating income

$

32,941



$

20,502



$

51,190



$

5,568


(1)

Other and eliminations for 2013 includes a $1.4 million reserve adjustment related to workers' compensation claims associated with an insolvent excess insurance carrier.

 



ARCBEST CORPORATION

OPERATING STATISTICS




Three Months Ended


Nine Months Ended


September 30


September 30


2014

2013

% Change


2014

2013

% Change


(Unaudited)









Freight Transportation (ABF Freight)
















Workdays

64.0

63.5



190.5

190.0










Billed Revenue(1) / CWT        

$

29.53

$

28.67

3.0%


$

28.54

$

27.78

2.7%













Billed Revenue(1) / Shipment           

$

389.70

$

390.44

(0.2)%


$

388.46

$

381.11

1.9%













Shipments                               


1,330,091


1,201,981

10.7%



3,725,093


3,488,337

6.8%













Shipments / Day


20,783


18,929

9.8%



19,554


18,360

6.5%













Tonnage (tons)                       


877,531


818,471

7.2%



2,535,235


2,393,055

5.9%













Tons / Day


13,711


12,889

6.4%



13,308


12,595

5.7%













(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

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