ArcBest Corporation Announces Improved Fourth Quarter 2014 Results And Full Year 2014 Results

FORT SMITH, Ark., Feb. 4, 2015 /PRNewswire/ -- ArcBest Corporation (Nasdaq: ARCB) today reported improved fourth quarter 2014 results reflecting improvements at ABF Freight and continued strong revenue growth at its emerging businesses – ABF LogisticsSM, Panther Premium LogisticsSM, FleetNet America® and ABF MovingSM.

Fourth Quarter 2014 Results

ArcBest's revenue was $664.8 million compared to revenue of $578.5 million in the fourth quarter of 2013, an increase of 15 percent.  Net income increased 41 percent to $14.5 million, or $0.53 per share compared to fourth quarter 2013 net income of $10.3 million, or $0.38 per share.  As shown in the attached reconciliation tables, both of these periods were impacted by favorable effective tax rates and adjustments for certain other items.  On an adjusted basis, ArcBest's fourth quarter 2014 net income increased 71 percent compared to fourth quarter 2013 net income of $8.4 million, or $0.31 per share. 

ABF Freight's revenue was $485.9 million, an 11 percent increase over fourth quarter 2013 revenue of $436.7 million.  Operating income increased to $14.7 million from $9.9 million in fourth quarter 2013.  ABF Freight's operating ratio was 97.0 percent versus 97.7 percent in 2013. Excluding adjustments for certain other items in the attached reconciliation table, operating income increased to $15.8 million from $7.7 million in fourth quarter 2013, and ABF Freight's fourth quarter 2014 operating ratio was 96.8 percent versus 98.2 percent in the year-ago period.

Revenue for ArcBest's emerging, non-asset-based businesses increased 25 percent over the same period of 2013.  Earnings before interest, taxes, depreciation and amortization ("EBITDA") at the non-asset-based businesses increased 14 percent to $9.4 million compared to EBITDA of $8.2 million in fourth quarter 2013.  The percentage of year-over-year EBITDA improvement is below that of the first three quarters of 2014.  This is related to personnel and IT investments made to enhance continued growth in these businesses and due to a particularly strong fourth quarter result last year at Panther.  

Full Year 2014 Results

"We made significant progress this year getting ABF Freight on a firmer path toward sustained, historical profitability and communicating with our customers about the full array of transportation and logistics solutions we offer through all of the ArcBest companies," said ArcBest President and CEO Judy R. McReynolds.  "Changing our company name, embracing "The Skill & The Will" positioning, and integrating customer offerings at ABF Freight, ABF Logistics and Panther through our Enterprise Customer Solutions group are all examples of how we serve customers better today than ever before."

ArcBest's revenue totaled $2.6 billion, an increase of 14 percent compared to $2.3 billion in 2013. Net income was $46.2 million, or $1.69 per share, approximately three times net income of $15.8 million, or $0.59 per share in 2013.  Excluding adjustments for certain other items in the attached reconciliation table, ArcBest had 2014 net income of $49.5 million, or $1.82 per share compared to net income of $14.7 million, or $0.55 per share in 2013.

ABF Freight's revenue was $1.9 billion, a 10 percent increase over $1.8 billion in 2013. As expected, ABF Freight's profitability improved as a result of its November 2013 union labor contract that reduced expenses and allowed ABF Freight to be more cost competitive with its LTL industry peers.  As outlined in the attached reconciliation table, ABF Freight's 2014 adjusted operating income increased to $55.4 million versus $11.9 million in 2013, and its adjusted operating ratio improved by over two percentage points to 97.1 percent.

On a combined basis, ArcBest's emerging businesses had strong revenue growth and margin improvement while positively contributing to ArcBest's total results.  These businesses have grown to be 27 percent of ArcBest's revenue, nearly four times the percentage of total corporate revenue just five years ago.  Combined EBITDA for the emerging businesses in 2014 increased 45 percent to $40.5 million.  

Capital Expenditures

In 2014, total net capital expenditures equaled $86 million, including approximately $65 million of revenue equipment for ABF Freight and Panther.  Depreciation and amortization costs on fixed assets equaled $82 million.

For 2015, total net capital expenditures are estimated to be approximately $200 million. This includes revenue equipment purchases of $110 million at ABF Freight and Panther.  Expected real estate expenditures, totaling approximately $55 million, are for previously disclosed growth initiatives at ArcBest and its operating subsidiaries.  These include freight service center construction, call center facilities and needed office buildings, a portion of which replaces leased space.  The remainder of expected capital expenditures includes the costs of other terminal and handling equipment at ABF Freight and technology investments across the corporation. ArcBest's depreciation and amortization costs on fixed assets in 2015 are estimated to be in a range of $95 million to $100 million.

The majority of the revenue equipment purchases are for road and city tractors and trailers at ABF Freight needed to replace both existing equipment and local rentals.  In order to more rapidly replace used equipment and to reduce maintenance costs, ABF Freight is increasing the number of tractor and trailer replacements in 2015.  In addition, the majority of road tractors ABF Freight is purchasing this year will be equipped with automated manual transmissions.  In conjunction with the transportation industry's move toward this technology, ABF Freight expects that these tractors will contribute to better fuel economy, reduced maintenance costs and an improved ability to attract new employees to what is already one of the best driver jobs in the industry.

Closing Comments

"In addition to seeing improvements at ABF Freight, we are truly excited about the growth opportunities before us in 2015 in many areas, including truckload brokerage, expansion of premium logistics offerings and ongoing collaboration across all of the ArcBest companies," said McReynolds. "This past year was one of marked change for our company, and we now have many of the strategies and tools in place necessary to unlock the innovation and market share growth required for the next level of success at ArcBest.  Our improved operational and financial performance, along with ArcBest's 2014 stock appreciation and previously announced dividend increase, benefit our employees, our customers and our shareholders."

Conference Call

ArcBest Corporation will host a conference call with company executives to discuss the 2014 fourth quarter and full year results. The call will be today, Wednesday, February 4, 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 March 7, 2015. To listen to the playback, dial (800) 633-8284 or (402) 977-9140 (for international callers). The conference call ID for the playback is 21758654. The conference call and playback can also be accessed, through March 7, 2015, on ArcBest's website at arcb.com.

About ArcBest

ArcBest Corporationsm (Nasdaq: ARCB) solves complex logistics and transportation challenges. Our companies and brands – ABF Freightsm, ABF Logisticssm, Panther Premium 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 twelve months ended December 31, 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

December 31


Year Ended

December 31





2014


2013


2014


2013



(Unaudited)



($ thousands, except share and per share data)




REVENUES

$

664,848


$

578,549


$

2,612,693


$

2,299,549















OPERATING EXPENSES


646,799



565,047



2,543,454



2,280,479















OPERATING INCOME


18,049



13,502



69,239



19,070















OTHER INCOME (COSTS)













Interest and dividend income


252



182



851



681


Interest and other related financing costs


(822)



(903)



(3,190)



(4,183)


Other, net


2,161



1,114



3,712



3,893




1,591



393



1,373



391















INCOME BEFORE INCOME TAXES


19,640



13,895



70,612



19,461















INCOME TAX PROVISION


5,097



3,549



24,435



3,650















NET INCOME

$

14,543


$

10,346


$

46,177


$

15,811















EARNINGS PER COMMON SHARE(1)













Basic

$

0.53


$

0.38


$

1.69


$

0.59


Diluted

$

0.53


$

0.38


$

1.69


$

0.59















AVERAGE COMMON SHARES OUTSTANDING













Basic


26,073,256



25,785,485



25,993,255



25,714,205


Diluted


26,073,256



25,793,366



25,993,612



25,714,205















CASH DIVIDENDS DECLARED
  PER COMMON SHARE

$

0.06


$

0.03


$

0.15


$

0.12




(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

$

14,543


$

10,346


$

46,177


$

15,811
















EFFECT OF UNVESTED RESTRICTED
  STOCK AWARDS


(703)



(505)



(2,300)



(720)

















ADJUSTED NET INCOME FOR CALCULATING

  EARNINGS PER COMMON SHARE

$

13,840


$

9,841


$

43,877


$

15,091
















 


 


ARCBEST CORPORATION

CONSOLIDATED BALANCE SHEETS


December 31

2014


December 31

2013


(Unaudited)


Note


($ thousands, except share data)

ASSETS












CURRENT ASSETS






Cash and cash equivalents

$

157,042


$

105,354

Short-term investments


45,909



35,906

Restricted cash, cash equivalents, and short-term investments


1,386



1,902

Accounts receivable, less allowances (2014 – $5,731; 2013 – $4,533)


228,056



202,540

Other accounts receivable, less allowances (2014 – $1,701; 2013 – $1,422)


6,582



7,272

Prepaid expenses


20,906



19,016

Deferred income taxes


40,220



37,482

Prepaid and refundable income taxes


9,920



2,061

Other


4,968



6,952

        TOTAL CURRENT ASSETS


514,989



418,485







PROPERTY, PLANT AND EQUIPMENT






Land and structures


251,836



245,805

Revenue equipment


633,455



589,902

Service, office, and other equipment


136,145



124,303

Software


116,112



110,998

Leasehold improvements


24,377



23,582



1,161,925



1,094,590

Less allowances for depreciation and amortization


752,075



700,193



409,850



394,397

GOODWILL


77,078



76,448

INTANGIBLE ASSETS, net


72,809



75,387

OTHER ASSETS


52,896



52,609








$

1,127,622


$

1,017,326







LIABILITIES AND STOCKHOLDERS' EQUITY












CURRENT LIABILITIES






Bank overdraft and drafts payable

$

16,095


$

13,609

Accounts payable


104,230



89,091

Income taxes payable


527



1,782

Accrued expenses


194,674



173,622

Current portion of long-term debt


25,256



31,513

TOTAL CURRENT LIABILITIES


340,782



309,617







LONG-TERM DEBT, less current portion


102,474



81,332

PENSION AND POSTRETIREMENT LIABILITIES


42,418



26,847

OTHER LIABILITIES


16,667



15,041

DEFERRED INCOME TAXES


64,398



64,028







STOCKHOLDERS' EQUITY






Common stock, $0.01 par value, authorized 70,000,000 shares; issued 2014: 27,722,010 shares; 2013: 27,507,241 shares


277



275

Additional paid-in capital


303,045



296,133

Retained earnings


338,810



296,735

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


(57,770)



(57,770)

Accumulated other comprehensive loss


(23,479)



(14,912)

TOTAL STOCKHOLDERS' EQUITY


560,883



520,461








$

1,127,622


$

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





Year Ended

December 31


2014


2013


(Unaudited)


($ thousands)

OPERATING ACTIVITIES






Net income

$

46,177


$

15,811

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






Depreciation and amortization


81,870



84,215

Amortization of intangibles


4,352



4,174

Pension settlement expense


6,595



2,111

Share-based compensation expense


6,998



5,494

Provision for losses on accounts receivable


1,942



2,065

Deferred income tax provision (benefit)


4,692



(10,367)

Gain on sale of property and equipment


(1,461)



(153)

Changes in operating assets and liabilities:






Receivables


(26,892)



(24,200)

Prepaid expenses


(1,888)



(1,670)

Other assets


889



(1,015)

Income taxes


(11,972)



8,468

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


32,464



8,571

NET CASH PROVIDED BY OPERATING ACTIVITIES


143,766



93,504







INVESTING ACTIVITIES






Purchases of property, plant and equipment, net of financings


(35,483)



(26,369)

Proceeds from sale of property and equipment


4,928



2,194

Purchases of short-term investments


(45,831)



(39,605)

Proceeds from sale of short-term investments


35,853



32,718

Business acquisition, net of cash acquired


(2,647)



(4,146)

Capitalization of internally developed software


(8,418)



(7,668)

NET CASH USED IN INVESTING ACTIVITIES


(51,598)



(42,876)







FINANCING ACTIVITIES






Payments on long-term debt


(40,440)



(43,176)

Net change in bank overdraft and drafts payable


2,486



(37)

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


516



7,756

Deferred financing costs


(76)



(71)

Payment of common stock dividends


(4,102)



(3,233)

Proceeds from the exercise of stock options


1,136



2,785

NET CASH USED IN FINANCING ACTIVITIES


(40,480)



(35,976)







NET INCREASE IN CASH AND CASH EQUIVALENTS


51,688



14,652

Cash and cash equivalents at beginning of period


105,354



90,702

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$

157,042


$

105,354







NONCASH INVESTING ACTIVITIES






Accruals for equipment received

$

928


$

324

Equipment financed

$

55,325


$

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

December 31


Year Ended

December 31





2014


2013


2014


2013



(Unaudited)



($ thousands, except per share data)


ARCBEST CORPORATION – CONSOLIDATED















Net Income













Amounts on a GAAP basis

$

14,543


$

10,346


$

46,177


$

15,811


Collective bargaining agreement adjustments, after tax(1)




(1,435)






Tax benefits and credits(2)


(861)



(670)



(696)



(2,352)


Pension settlement expense, after-tax(3)


727



169



4,030



1,290


Non-GAAP amounts

$

14,409


$

8,410


$

49,511


$

14,749















Diluted Earnings Per Share













Amounts on a GAAP basis

$

0.53


$

0.38


$

1.69


$

0.59


Collective bargaining agreement adjustments, after tax(1)




(0.06)






Tax benefits and credits(2)


(0.03)



(0.02)



(0.03)



(0.09)


Pension settlement expense, after-tax(3)


0.03



0.01



0.16



0.05


Non-GAAP amounts

$

0.53


$

0.31


$

1.82


$

0.55















Income Tax Rate Reconciliation













Statutory federal income tax rate:


35.0%



35.0%



35.0%



35.0%


State income taxes, net of federal benefit


2.4



3.7



3.1



3.4


Federal income tax effects of:













  Alternative fuel tax credit


(5.8)



(1.6)



(1.6)



(9.9)


  Life insurance proceeds and changes in cash surrender value


(4.4)



(2.7)



(1.9)



(6.8)


  Decrease in valuation allowances




(4.8)



(1.0)



(7.4)


  Nondeductible expenses and other


(1.2)



(4.1)



1.0



4.5


Effective tax rate


26.0%



25.5%



34.6%



18.8%















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













Net income

$

14,543


$

10,346


$

46,177


$

15,811


Interest and other related financing costs


822



903



3,190



4,183


Income tax provision


5,097



3,549



24,435



3,650


Depreciation and amortization


22,367



20,820



86,222



88,389


Amortization of share-based compensation


1,636



1,915



6,998



5,494


Amortization of actuarial losses of benefit plans and pension settlement expense(3)


1,927



1,228



9,300



10,046



$

46,392


$

38,761


$

176,322


$

127,573




(1)

The ABF Freight collective bargaining agreement, which was implemented November 3, 2013, provided for certain reductions in annual compensated vacation that impacted amounts expensed but not paid in periods prior to fourth quarter 2013.



(2)

Tax benefits are related to decreases in deferred tax asset valuation allowances. The three-month period ended December 31, 2014 also includes the amount of the alternative fuel tax credit related to the first nine months of 2014 which was recorded in fourth quarter 2014 due to the December 2014 retroactive reinstatement of the alternative fuel tax credit to January 1, 2014. The year ended December 31, 2013 also includes the amount of the 2012 alternative fuel tax credit which was recorded in first quarter 2013 due to the January 2013 retroactive reinstatement of the alternative fuel tax credit to January 1, 2012.



(3)

Pension settlement expense totaled $1.2 million (pre-tax) and $6.6 million (pre-tax) for the three months and year ended December 31, 2014, respectively, and $0.3 million (pre-tax) and $2.1 million (pre-tax) for the three months and year ended December 31, 2013, respectively.

 


 

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES


Three Months Ended
December 31
2014


Three Months Ended
December 31
2013


(Unaudited)


($ thousands)

NON-ASSET-BASED SEGMENTS









Operating

Income

Depreciation
and
Amortization

EBITDA


Operating Income

Depreciation
and
Amortization

EBITDA















Premium Logistics (Panther)(1)

$

3,801

$

2,897

$

6,698


$

3,211

$

2,707

$

5,918

Emergency & Preventative Maintenance (FleetNet)


282


284


566



907


141


1,048

Transportation Management (ABF Logistics)


1,386


282


1,668



1,409


191


1,600

Household Goods Moving Services (ABF Moving)


88


340


428



(702)


367


(335)

Total non-asset-based segments

$

5,557

$

3,803

$

9,360


$

4,825

$

3,406

$

8,231
















Year Ended
December 31
2014


Year Ended
December 31
2013



(Unaudited)


($ thousands)

NON-ASSET-BASED SEGMENTS



Operating

Income

Depreciation
and
Amortization

EBITDA


Operating Income

Depreciation
and
Amortization

EBITDA
















Premium Logistics (Panther)(1)

$

15,640

$

11,362

$

27,002


$

6,956

$

10,516

$

17,472

Emergency & Preventative Maintenance (FleetNet)


3,122


961


4,083



3,274


540


3,814

Transportation Management (ABF Logistics)


3,835


1,006


4,841



2,973


640


3,613

Household Goods Moving Services (ABF Moving)


3,179


1,384


4,563



1,850


1,247


3,097

Total non-asset-based segments

$

25,776

$

14,713

$

40,489


$

15,053

$

12,943

$

27,996

(1)

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

 


 




Three Months Ended


Year Ended



December 31


December 31



2014

2013


2014

2013



(Unaudited)



($ thousands)


FREIGHT TRANSPORTATION (ABF FREIGHT)


Operating Income ($) Ratio (%)










Amounts on a GAAP basis

$

14,704

97.0%

$

9,869

97.7%


$

50,093

97.4%

$

10,033

99.4%


Collective bargaining agreement adjustments(2)



(2,361)

0.6%





Pension settlement expense


1,085

(0.2)%


219

(0.1)%



5,309

(0.3)%


1,831

(0.1)%


Non-GAAP amounts

$

15,789

96.8%

$

7,727

98.2%


$

55,402

97.1%

$

11,864

99.3%


(2)

The ABF Freight collective bargaining agreement, which was implemented November 3, 2013, provided for certain reductions in annual compensated vacation that impacted amounts expensed but not paid in periods prior to fourth quarter 2013.


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


 

 


ARCBEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS



Three Months Ended
December 31



Year Ended
December 31







2014



2013



2014



2013



(Unaudited)

($ thousands, except percentages)

REVENUES
















Freight Transportation (ABF Freight)

$

485,911



$

436,654



$

1,930,990



$

1,761,716


















Premium Logistics (Panther)


80,234




67,316




316,668




246,849


Emergency & Preventative Maintenance (FleetNet)


38,458




35,042




158,581




137,546


Transportation Management (ABF Logistics)


46,750




30,668




152,632




105,223


Household Goods Moving Services (ABF Moving)


21,685




16,811




94,628




82,169


Total non-asset-based segments


187,127




149,837




722,509




571,787


















Other and eliminations


(8,190)




(7,942)




(40,806)




(33,954)


Total consolidated revenues

$

664,848



$

578,549



$

2,612,693



$

2,299,549


















OPERATING EXPENSES

Freight Transportation (ABF Freight)


Salaries, wages, and benefits

$

285,824

58.8%


$

258,757

59.3%


$

1,121,177

58.1%


$

1,075,259

61.0%

Fuel, supplies, and expenses


85,377

17.6



81,946

18.8



360,850

18.7



332,433

18.9

Operating taxes and licenses


12,430

2.6



11,072

2.5



46,955

2.4



43,865

2.5

Insurance


7,101

1.5



4,413

1.0



24,960

1.3



21,823

1.2

Communications and utilities


3,657

0.8



3,492

0.8



15,398

0.8



15,027

0.9

Depreciation and amortization


17,828

3.7



16,810

3.8



68,752

3.6



72,971

4.1

Rents and purchased transportation


56,488

11.6



47,453

10.9



229,443

11.9



180,689

10.3

Gain on sale of property and equipment


(895)

(0.2)



(90)



(1,471)

(0.1)



(576)

Pension settlement expense(1)


1,085

0.2



219

0.1



5,309

0.3



1,831

0.1

Other


2,312

0.4



2,713

0.5



9,524

0.4



8,361

0.4



471,207

97.0%



426,785

97.7%



1,880,897

97.4%



1,751,683

99.4%

















Premium Logistics (Panther)

















Purchased transportation

$

58,950

73.9%


$

51,072

75.9%


$

235,006

74.6%


$

188,561

76.4%

Depreciation and amortization(2)


2,897

3.6



2,707

4.0



11,362

3.6



10,516

4.3

Salaries, benefits, insurance, and other


14,586

17.7



10,326

15.3



54,660

16.8



40,816

16.5



76,433

95.3%



64,105

95.2%



301,028

95.1%



239,893

97.2%

















Emergency & Preventative Maintenance (FleetNet)

$

38,176



$

34,135



$

155,459



$

134,272


Transportation Management (ABF Logistics)


45,364




29,259




148,797




102,250


Household Goods Moving Services (ABF Moving)


21,597




17,513




91,449




80,319


Total non-asset-based segments(1)


181,570




145,012




696,733




556,734


















Other and eliminations(1)


(5,978)




(6,750)




(34,176)




(27,938)


Total consolidated operating expenses and costs(1)

$

646,799



$

565,047



$

2,543,454



$

2,280,479


















(1)

Pension settlement expense totaled $1.2 million (pre-tax) and $6.6 million (pre-tax) on a consolidated basis for the three months and year ended December 31, 2014, respectively, and $0.3 million (pre-tax) and $2.1 million (pre-tax) for the three months and year ended December 31, 2013, respectively. Of the total $6.6 million (pre-tax) pension settlement expense for the twelve months ended December 31, 2014, $5.3 million was reported by ABF Freight, $1.1 million was reported in Other and eliminations, and $0.2 million was reported by the non-asset-based segments. Of the total $2.1 million (pre-tax) pension settlement expense for the year ended December 31, 2013, $1.8 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
December 31



Year Ended
December 31







2014



2013



2014



2013



(Unaudited)

($ thousands)

OPERATING INCOME
















Freight Transportation (ABF Freight)

$

14,704



$

9,869



$

50,093



$

10,033


















Premium Logistics (Panther)


3,801




3,211




15,640




6,956


Emergency & Preventative Maintenance (FleetNet)


282




907




3,122




3,274


Transportation Management (ABF Logistics)


1,386




1,409




3,835




2,973


Household Goods Moving Services (ABF Moving)


88




(702)




3,179




1,850


Total non-asset-based segments


5,557




4,825




25,776




15,053


















Other and eliminations


(2,212)




(1,192)




(6,630)




(6,016)


Total consolidated operating income

$

18,049



$

13,502



$

69,239



$

19,070


















 


 


ARCBEST CORPORATION

OPERATING STATISTICS







Three Months Ended


Year Ended


December 31


December 31


2014

2013

% Change


2014

2013

% Change


(Unaudited)









Freight Transportation (ABF Freight)
















Workdays

61.0

61.5



251.5

251.5










Billed Revenue(1) / CWT        

$

29.34

$

28.46

3.1%


$

28.74

$

27.94

2.9%













Billed Revenue(1) / Shipment           

$

385.02

$

377.65

2.0%


$

387.60

$

380.25

1.9%













Shipments                               


1,255,272


1,143,813

9.7%



4,980,365


4,632,150

7.5%













Shipments / Day


20,578


18,599

10.6%



19,803


18,418

7.5%













Tonnage (tons)                       


823,675


758,987

8.5%



3,358,910


3,152,042

6.6%













Tons / Day


13,503


12,341

9.4%



13,356


12,533

6.6%













(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.


 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/arcbest-corporation-announces-improved-fourth-quarter-2014-results-and-full-year-2014-results-300030462.html

SOURCE ArcBest Corporation

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