Arkansas Best Corporation Announces Fourth Quarter 2012 Results And Full Year 2012 Results

Arkansas Best Corporation Announces Fourth Quarter 2012 Results And Full Year
                                 2012 Results

- Fourth quarter 2012 net loss of $7.9 million, or $0.31 per share, including
$2.4 million, or $0.09 per share, related to an increase in workers'
compensation expense

- Emerging, non-asset-based businesses profitable on gains that produced
record fourth quarter revenues

- ABF contract negotiations underway with goal to cut costs and restore
profitability

PR Newswire

FORT SMITH, Ark., Jan. 30, 2013

FORT SMITH, Ark., Jan. 30, 2013 /PRNewswire/ -- Arkansas Best Corporation
(Nasdaq: ABFS) today announced unaudited results for the fourth quarter and
full year 2012. Arkansas Best had a fourth quarter 2012 net loss, as generally
flat, year-over-year revenue, tonnage and pricing at ABF Freight System, Inc.
were offset by higher costs. For the same period, Arkansas Best's emerging,
non-asset-based businesses were profitable and posted higher revenues.
Arkansas Best's fourth quarter 2012 revenue was $537.0 million compared to
revenue of $463.2 million in the fourth quarter of 2011.

Following the acquisition of Panther Expedited Services, Inc. in June 2012,
Arkansas Best saw yearly revenue top $2 billion for the first time in its
history. In addition to Panther, Arkansas Best's emerging, non-asset-based
businesses that contributed to 2012's revenue growth are in freight brokerage,
and vehicle roadside and preventative maintenance.

Arkansas Best's fourth quarter 2012 net loss was $7.9 million, or $0.31 per
share, compared to fourth quarter 2011 net income of $1.4 million, or $0.05
per share. This quarter's results include an after-tax charge of $2.4 million,
or $0.09 per share, related to an actuarial adjustment to ABF's workers'
compensation expense. The liabilities associated with Arkansas Best's
self-insured portion of these costs are estimates based on a number of
variables and assumptions. During the fourth quarter, information indicating
that many of these claims had a longer duration and higher payments than
initially projected resulted in a thorough actuarial review and in this
adjustment. 

For full year 2012, Arkansas Best had a net loss of $7.7 million, or $0.31 per
share, including the previously discussed workers' compensation expense
increase. This compares to net income of $6.2 million, or $0.23 per share, in
2011. Arkansas Best's full year 2012 revenue was $2.1 billion compared to
revenue of $1.9 billion in 2011.

"We are pleased with revenue growth and improving profitability at our
emerging businesses as they added up to more than 20 percent of our total
company fourth quarter revenue," said Arkansas Best President and Chief
Executive Officer Judy R. McReynolds. "Expanding our portfolio of expedited
and premium logistics services was a major initiative in 2012 as our
customers' supply chains grow ever more complex. We are encouraged by the
trends we have seen in these businesses. Among other things, we added key
sales and customer service personnel and invested in service-enhancing
technologies, all of which were well-received in the marketplace."

McReynolds added that the full-year loss at ABF resulting in a 2012 operating
ratio above 100, following a slightly profitable 2011, was troubling as total
revenues remained about even with annual yield improvement offset by lower
business levels. "We are focused on a return to profitability at ABF by
substantially lowering our costs in the next labor contract through
negotiations that are now underway. ABF's management team is hopeful it will
reach an agreement with the Teamsters that allows us to preserve good-paying
jobs and protect our employees' retirements through a lower cost structure
that truly reflects the competitive nature of today's LTL marketplace."

In late December, ABF exchanged initial contract proposals with the Teamsters
National Freight Industry Negotiating Committee. ABF seeks a national contract
that eliminates the use of supplements and provides uniform terms for all of
its local operations throughout the country. While previous versions of the
National Master Freight Agreement ("NMFA") once covered more than 500,000
Teamsters, today, ABF is negotiating for its own contract that will cover
7,500 union employees. ABF is the only remaining union LTL carrier still
paying full NMFA rates. Without significant reduction to this burdensome cost
structure, ABF has informed Teamster leadership that extensive network changes
will result, including closure of terminals and distribution centers.

ABF Freight System, Inc.
ABF's fourth quarter 2012 total daily tonnage and pricing statistics saw
little change compared to last year's fourth quarter, leading to flat revenue
as shippers maintained low inventory levels. At the same time, costs rose due
to union labor contract wage and benefit increases that occurred earlier in
the year and because of a lack of operational flexibility. In addition, higher
depreciation costs associated with more expensive capital equipment and higher
workers' compensation expense contributed to ABF's losses.

In late October, the impact of Hurricane Sandy resulted in lost revenue and
profit opportunities along with returned shipments that had to be re-handled
and re-delivered as customers closed for business in the days following the
storm. This resulted in estimated lost revenue of $2 – $2.5 million, an
increase of about 0.4 percentage points in ABF's operating ratio and a
reduction of $0.04 per share on Arkansas Best's fourth quarter results.

During the fourth quarter, changes in ABF's freight profile and account mix
caused total pricing statistics to be the same as last year. However, when
adjusted for fuel surcharge and these profile and account changes, ABF's
fourth quarter pricing on its traditional LTL business increased more than 2.5
percent versus last year. Throughout 2012, pricing among carriers in the LTL
industry was consistent and stable. For the full year, ABF made steady
progress in improving its account yield levels by 4.4 percent compared to
2011.

ABF Results of Operations

Fourth Quarter 2012

  oRevenue of $422.8 million compared to $422.1 million in fourth quarter
    2011, a slight per day decrease
  oTonnage per day increase of 0.4% versus fourth quarter 2011
  oTotal billed revenue per hundredweight of $28.02, essentially the same as
    the $28.01 in fourth quarter 2011
  oOperating loss of $13.6 million, including $3.8 million related to an
    increase in workers' compensation expense, compared to operating income of
    $1.3 million in fourth quarter 2011
  oOperating ratio of 103.2%, including 0.9% related to an increase in
    workers' compensation expense, compared to an operating ratio of 99.7% in
    fourth quarter 2011

Full Year 2012

  oRevenue of $1.73 billion, the same as in 2011
  oTonnage per day decrease of 4.6% versus 2011
  oTotal billed revenue per hundredweight of $28.03 compared to $26.86 in
    2011, an increase of 4.4%
  oOperating loss of $19.4 million, including $3.8 million related to an
    increase in workers' compensation expense, compared to 2011 operating
    income of $3.6 million
  oOperating ratio of 101.1%, including 0.2% related to an increase in
    workers' compensation expense, compared to an operating ratio of 99.8% in
    2011

Emerging Businesses
Panther Expedited Services, Inc. is an important component of Arkansas Best's
strategic goal of being an integrated logistics solutions provider. During the
fourth quarter, Panther's revenue increased to record fourth quarter levels,
and cash flow generation remained strong despite mixed results in the various
market segments. Particularly in the government business segment, Panther was
affected by a lack of commitment of many of its customers to invest in their
businesses due to uncertainty in the economy. A slowdown in industrial
production and tighter inventory management also resulted in fewer available
manufacturing-related shipments.

Arkansas Best's other emerging non-asset-based subsidiaries experienced
revenue growth and operating income improvement throughout the quarter despite
a challenging macroeconomic environment. The freight brokerage segment grew
revenue by 91%, achieving the highest quarterly revenue in its history. The
emergency and preventative maintenance segment achieved revenue growth of 39%,
producing the second highest quarterly revenue in its history. Fourth quarter
profits in these two operating segments increased nearly two to three times
compared to the same period last year. The benefits of investments previously
made in sales, customer service, and information technology at these companies
are contributing to increased revenues and improving profitability.

Capital Expenditures
In 2012, ABF's total net capital expenditures equated to $69 million,
including approximately $49 million of revenue equipment. Depreciation and
amortization costs equaled $85 million.

Because ABF's union labor negotiations are in progress and planning for 2013
is highly dependent on the outcome of contract negotiations, ABF's 2013 net
capital expenditures and depreciation and amortization costs have not been
estimated. In the next few months, as more clarity is gained on potential
costs savings associated with ABF's new labor contract, estimates on capital
expenditures and depreciation will be provided.

Closing Comments
"There continue to be many questions about the economy and its impact on the
transport markets in which we compete. Most economists are predicting a low
level of growth in 2013," said McReynolds. "Looking ahead, we recognize that
ABF and all of our other subsidiaries must generate profits regardless of the
economic climate. We are hopeful that our ongoing ABF contract negotiations
will result in the right cost structure and greater operational flexibility,
but our game plan for success at Arkansas Best takes into account all
potential outcomes. Thanks to our expanding portfolio of diverse companies
that are better able to meet customers' needs in a changing marketplace, we
will continue to execute on our overarching goal to keep Arkansas Best firmly
on a path toward financial success that rewards our shareholders."

Conference Call
Arkansas Best Corporation will host a conference call with company executives
to discuss the 2012 fourth quarter and full year results. The call will be
today, Wednesday, January30, at 9:30a.m. ET (8:30 a.m. CT). Interested
parties are invited to listen by calling (800) 618-4645. Following the call,
a recorded playback will be available through the end of the day on March 2,
2013. To listen to the playback, dial (800) 633-8284 or (402) 977-9140 (for
international callers). The conference call ID for the playback is 21643591.
The conference call and playback can also be accessed, through March 2, on
Arkansas Best's website at arkbest.com.

Company Description
Arkansas Best Corporation, headquartered in Fort Smith, Arkansas, is a freight
transportation services and solutions provider. Through its various
subsidiaries, Arkansas Best offers a wide variety of logistics solutions
including: domestic and global transportation of less-than-truckload ("LTL")
and full load shipments, expedited ground and time-definite delivery
solutions, freight forwarding services, freight brokerage, oversight of
roadside assistance and equipment services for commercial vehicles, and
household goods moving market services for consumers, corporations, and the
military. More information is available at arkbest.com, abf.com and
pantherexpedite.com.

Forward-Looking Statements
The following is a "safe harbor" statement under the Private Securities
Litigation Reform Act of 1995: Statements contained in this report that are
not based on historical facts are "forward-looking statements." Terms such as
"anticipate," "believe," "estimate," "expect," "forecast," "intend," "plan,"
"predict," "prospects," "scheduled," "should," "would," and similar
expressions and the negatives of such terms are intended to identify
forward-looking statements. Such statements are by their nature subject to
uncertainties and risk including, but not limited to, general economic
conditions and related shifts in market demand that impact the performance and
needs of industries served by Arkansas Best Corporation's subsidiaries and
limit our customers' access to adequate financial resources; the successful
integration of Panther; 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; availability and
cost of reliable third-party services; the timing and amount of capital
expenditures; future costs of operating expenses such as fuel and related
taxes; self-insurance claims and insurance premium costs; governmental
regulations and policies; future climate change legislation; availability and
cost of capital and financing arrangements; the cost and timing of growth
initiatives; the impact of our brand and corporate reputation; the cost,
integration, and performance of any future acquisitions; costs of continuing
investments in technology and the impact of cyber incidents; weather
conditions; and other financial, operational, and legal risks and
uncertainties detailed from time to time in Arkansas Best Corporation's
Securities and Exchange Commission ("SEC") public filings.

The following tables show financial data and operating statistics on Arkansas
Best Corporation and its subsidiary companies.



ARKANSAS BEST CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS
               Three Months Ended          Year Ended

               December 31                 December 31
               2012          2011          2012          2011
               (Unaudited)
               ($ thousands, except share and per share data)
OPERATING      $ 537,042     $ 463,241     $ 2,065,999   $ 1,907,609
REVENUES
OPERATING
EXPENSES AND     548,058       461,606       2,080,567     1,897,850
COSTS
OPERATING        (11,016)      1,635         (14,568)      9,759
INCOME (LOSS)
OTHER INCOME
(EXPENSE)
Interest and
dividend         185           286           808           1,069
income
Interest
expense and
other related    (1,409)       (1,054)       (5,273)       (3,953)
financing
costs
Other, net       (76)          1,067         2,041         2,618
                 (1,300)       299           (2,424)       (266)
INCOME (LOSS)
BEFORE INCOME    (12,316)      1,934         (16,992)      9,493
TAXES
INCOME TAX
PROVISION        (4,387)       530           (9,260)       3,160
(BENEFIT)
NET INCOME       (7,929)       1,404         (7,732)       6,333
(LOSS)
LESS:
NONCONTROLLING
INTEREST IN      –             –             –             174

NET INCOME OF
SUBSIDIARY
NET INCOME
(LOSS)
ATTRIBUTABLE   $ (7,929)     $ 1,404       $ (7,732)     $ 6,159
TO ARKANSAS
BEST
CORPORATION
EARNINGS PER
COMMON
SHARE^(1)
Basic          $ (0.31)      $ 0.05        $ (0.31)      $ 0.23
Diluted        $ (0.31)      $ 0.05        $ (0.31)      $ 0.23
AVERAGE COMMON
SHARES
OUTSTANDING
Basic            25,629,309    25,421,887    25,564,752    25,403,073
Diluted          25,629,309    25,421,887    25,564,752    25,403,073
CASH DIVIDENDS
DECLARED PER   $ 0.03        $ 0.03        $ 0.12        $ 0.12
COMMON SHARE


(1) The Company 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)
ATTRIBUTABLE   $ (7,929)     $ 1,404       $ (7,732)     $ 6,159
TO ARKANSAS
BEST
CORPORATION
EFFECT OF
UNVESTED
RESTRICTED       (38)          (59)          (149)         (249)
STOCK
AWARDS^(1)
ADJUSTED NET
INCOME (LOSS)
FOR            $ (7,967)     $ 1,345       $ (7,881)     $ 5,910
CALCULATING
EARNINGS PER
COMMON SHARE



ARKANSAS BEST CORPORATION

CONSOLIDATED BALANCE SHEETS
                                     December 31    December 31

                                     2012           2011
                                     (Unaudited)    Note
                                     ($ thousands, except share
                                     data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents            $  90,702      $ 141,295
Short-term investments                  29,054        33,960
Restricted cash equivalents and         9,658         52,693
short-term investments
Accounts receivable, less allowances    180,631       149,665
(2012 – $5,249; 2011 – $5,957)
Other accounts receivable, less
allowances (2012 – $1,334; 2011 –       6,539         7,538
$1,226)
Prepaid expenses                        17,355        11,363
Deferred income taxes                   39,245        35,481
Prepaid and refundable income taxes     5,681         6,905
Other                                   7,185         6,186
TOTAL CURRENT ASSETS                    386,050       445,086
PROPERTY, PLANT AND EQUIPMENT
Land and structures                     243,699       242,120
Revenue equipment                       589,729       569,303
Service, office, and other equipment    119,456       110,511
Software                                103,164       64,229
Leasehold improvements                  23,272        21,426
                                        1,079,320     1,007,589
Less allowances for depreciation and    635,292       592,171
amortization
                                        444,028       415,418
GOODWILL                                73,189        3,660
INTANGIBLE ASSETS, NET                  79,561        2,822
OTHER ASSETS                            51,634        49,234
                                     $  1,034,462   $ 916,220
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Bank overdraft and drafts payable    $  13,645      $ 20,836
Accounts payable                        84,292        66,517
Income taxes payable                    59            169
Accrued expenses                        158,668       151,887
Current portion of long-term debt       43,044        24,262
TOTAL CURRENT LIABILITIES               299,708       263,671
LONG-TERM DEBT, less current portion    112,941       46,750
PENSION AND POSTRETIREMENT              104,673       106,578
LIABILITIES
OTHER LIABILITIES                       12,832        13,751
DEFERRED INCOME TAXES                   45,309        19,855
STOCKHOLDERS' EQUITY
Common stock, $0.01 par value,
authorized 70,000,000 shares; issued    273           271
2012: 27,296,285 shares; 2011:
27,099,819 shares
Additional paid-in-capital              289,711       286,408
Retained earnings                       284,157       295,108
Treasury stock, at cost, 1,677,932      (57,770)      (57,770)
shares
Accumulated other comprehensive loss    (57,372)      (58,402)
TOTAL STOCKHOLDERS' EQUITY              458,999       465,615
                                     $  1,034,462   $ 916,220
Note: The balance sheet at December 31, 2011 has been derived
from the audited financial statements at that date but does not
include all of the information and footnotes required by
generally accepted accounting principles for complete financial
statements.



ARKANSAS BEST CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS
                                      Year Ended

                                      December 31
                                      2012         2011
                                      (Unaudited)
                                      ($ thousands)
OPERATING ACTIVITIES
Net income (loss)                     $ (7,732)    $ 6,333
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation and amortization           85,493       73,742
Amortization of intangibles             2,261        –
Pension settlement expense              –            1,125
Share-based compensation expense        6,068        6,450
Provision for losses on accounts        1,524        2,394
receivable
Deferred income tax provision           (10,359)     3,056
(benefit)
Gain on sale of property and            (735)        (2,360)
equipment
Changes in operating assets and
liabilities:
Receivables                             508          (6,067)
Prepaid expenses                        305          (1,105)
Other assets                            961          (635)
Income taxes                            2,630        (776)
Accounts payable, accrued expenses,     3,610        18,695
and other liabilities^(1)
NET CASH PROVIDED BY OPERATING          84,534       100,852
ACTIVITIES
INVESTING ACTIVITIES
Purchases of property, plant and        (37,278)     (53,227)
equipment, net of financings
Proceeds from sale of property and      6,397        7,062
equipment
Purchases of short-term investments     (55,858)     (59,718)
Proceeds from sale of short-term        60,730       64,995
investments
Business acquisition, net of cash       (180,039)    –
acquired
Capitalization of internally            (7,218)      (5,295)
developed software and other
NET CASH USED IN INVESTING ACTIVITIES   (213,266)    (46,183)
FINANCING ACTIVITIES
Proceeds from issuance of long-term     100,000      –
debt
Repayments on long-term debt            (53,000)     (16,056)
Acquisition of noncontrolling           –            (4,084)
interest
Net change in bank overdraft and        (7,190)      7,811
other
Change in restricted cash equivalents   43,035       (1,032)
and short-term investments
Deferred financing costs                (1,487)      (174)
Payment of common stock dividends       (3,219)      (3,180)
Proceeds from the exercise of stock     –            763
options
NET CASH PROVIDED BY (USED IN)          78,139       (15,952)
FINANCING ACTIVITIES
NET INCREASE (DECREASE) IN CASH AND     (50,593)     38,717
CASH EQUIVALENTS
Cash and cash equivalents at            141,295      102,578
beginning of period
CASH AND CASH EQUIVALENTS AT END OF   $ 90,702     $ 141,295
PERIOD
NONCASH INVESTING ACTIVITIES
Accruals for equipment received       $ 301        $ 338
Equipment financed under capital      $ 37,973     $ 30,410
leases and notes payable


(1) 2012 includes $18.0 million in contributions to the Company's nonunion
pension plan.



ARKANSAS BEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
                    Three Months Ended   Year Ended

                    December 31          December 31
                    2012       2011      2012       2011
                    (Unaudited)
                    ($ thousands, except per share data)
ARKANSAS BEST CORPORATION – CONSOLIDATED
Net Income
Attributable to
Arkansas Best
Corporation
Amounts on a GAAP   $ (7,929)  $ 1,404   $ (7,732)  $ 6,159
basis
Tax benefits^(1)      –          –         (3,333)    –
Transaction costs,    –          –         1,294      –
after-tax^(2)
Non-GAAP amounts    $ (7,929)  $ 1,404   $ (9,771)  $ 6,159
Diluted Earnings
(Loss) Per Share
Amounts on a GAAP   $ (0.31)   $ 0.05    $ (0.31)   $ 0.23
basis
Tax benefits^(1)      –          –         (0.13)     –
Transaction costs,    –          –         0.05       –
after-tax^(2)
Non-GAAP amounts    $ (0.31)   $ 0.05    $ (0.39)   $ 0.23
Earnings Before
Interest, Taxes,
Depreciation, and
Amortization
Net income
attributable to     $ (7,929)  $ 1,404   $ (7,732)  $ 6,159
Arkansas Best
Corporation
Interest expense      1,409      1,054     5,273      3,953
Income taxes          (4,387)    530       (9,260)    3,160
(benefits)
Depreciation and      23,764     19,541    87,754     73,742
amortization
Amortization of
share based           1,357      1,334     6,068      6,450
compensation
Amortization of       2,846      1,841     11,385     7,361
actuarial losses
EBITDA                17,060     25,704    93,488     100,825
Transaction costs,    –          –         2,129      –
pre-tax^(2)
Adjusted EBITDA     $ 17,060   $ 25,704  $ 95,617   $ 100,825
PREMIUM LOGISTICS &
EXPEDITED FREIGHT
SERVICES^(3)
Earnings Before
Interest, Taxes,
Depreciation, and
Amortization
Operating income    $ 1,118    $ –       $ 2,402    $ –
Depreciation and      2,473      –         5,438      –
amortization
EBITDA              $ 3,591    $ –       $ 7,840    $ –
(1) Tax benefit adjustments related to deferred tax asset valuation
allowances.

(2) Transaction costs associated with the June 15, 2012 acquisition of Panther
Expedited Services, Inc.

(3) Includes the results of Panther Expedited Services, Inc., for the period
of June 16 to December 31, 2012.


Non-GAAP Financial Measures.  The company 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, the company'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 Adjusted EBITDA differently, and therefore the
Company's Adjusted EBITDA may not be comparable to similarly titled measures
of other companies.



ARKANSAS BEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS
                   Three Months Ended                   Year Ended

                   December 31                          December 31
                   2012              2011               2012                2011
                   (Unaudited)

                   ($ thousands)
OPERATING REVENUES
Freight            $ 422,842         $ 422,051          $ 1,725,134         $ 1,730,773
Transportation^(1)
Premium Logistics
& Expedited          61,046            –                  132,326             –
Freight
Services^(2)
Truck Brokerage &    13,255            6,942              42,710              25,429
Management^(3)
Emergency and
Preventative         30,704            22,136             115,968             92,554
Maintenance^(4)
Household Goods
Moving               16,377            16,732             77,619              85,611
Services^(5)
Total
non-asset-based      121,382           45,810             368,623             203,594
segments
Other revenues and   (7,182)           (4,620)            (27,758)            (26,758)
eliminations
Total consolidated $ 537,042         $ 463,241          $ 2,065,999         $ 1,907,609
operating revenues
OPERATING EXPENSES AND COSTS
Freight
Transportation^(1)
Salaries, wages,   $ 265,520 62.8%   $ 254,073 60.2%    $ 1,073,205 62.2%   $ 1,061,213 61.3%
and benefits
Fuel, supplies,      82,417  19.5      80,391  19.0       330,063   19.1      333,779   19.3
and expenses
Operating taxes      10,823  2.6       11,133  2.6        43,337    2.5       45,469    2.6
and licenses
Insurance            5,336   1.3       6,360   1.5        20,751    1.2       24,490    1.4
Communications and   3,649   0.9       3,649   0.9        14,733    0.9       15,118    0.9
utilities
Depreciation and     20,308  4.8       18,765  4.4        78,748    4.6       70,810    4.1
amortization
Rents and
purchased            46,873  11.1      43,816  10.4       176,977   10.3      169,212   9.8
transportation
Gain on sale of
property and         (132)   –         (426)   (0.1)      (711)     –         (2,370)   (0.1)
equipment
Pension settlement   –       –         1,125   0.3        –         –         1,125     0.1
expense
Other                1,600   0.2       1,825   0.5        7,441     0.3       8,318     0.4
                     436,394 103.2%    420,711 99.7%      1,744,544 101.1%    1,727,164 99.8%
Premium Logistics
& Expedited

Freight
Services^(2)
Purchased          $ 47,052  77.1%   $ –       –        $ 101,559   76.7%   $ –         –
transportation
Depreciation and     2,473   4.1       –       –          5,438     4.1       –         –
amortization
Salaries,
benefits,            10,403  17.0      –       –          22,927    17.4      –         –
insurance, and
other
                     59,928  98.2%     –       –          129,924   98.2%     –         –
Truck Brokerage &    12,386            6,619              40,087              23,539
Management^(3)
Emergency and
Preventative         30,199            21,999             114,033             89,572
Maintenance^(4)
Household Goods
Moving               16,484            16,780             76,927              82,893
Services^(5)
Total
non-asset-based      118,997           45,398             360,971             196,004
segments
Other expenses and   (7,333)           (4,503)            (24,948)            (25,318)
eliminations
Total consolidated
operating expenses $ 548,058         $ 461,606          $ 2,080,567         $ 1,897,850
and costs


Note: See the following page for footnotes.



ARKANSAS BEST CORPORATION

FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS – Continued
                       Three Months Ended     Year Ended

                       December 31            December 31
                       2012         2011      2012             2011
                       (Unaudited)

                       ($ thousands)
OPERATING INCOME
(LOSS)
Freight                $ (13,552)   $ 1,340   $ (19,410)       $ 3,609
Transportation^(1)
Premium Logistics &
Expedited Freight        1,118        –         2,402            –
Services^(2)
Truck Brokerage &        869          323       2,623            1,890
Management^(3)
Emergency and
Preventative             505          137       1,935            2,982
Maintenance^(4)
Household Goods Moving   (107)        (48)      692              2,718
Services^(5)
Total non-asset-based    2,385        412       7,652            7,590
segments
Other income (loss)
and                      151          (117)     (2,810)          (1,440)
eliminations
Total consolidated
operating income       $ (11,016)   $ 1,635   $ (14,568)       $ 9,759
(loss)



(1) This segment includes the results of operations of Arkansas Best's largest
    subsidiary, ABF Freight System, Inc.^®.
    This segment includes the results of operations of Arkansas Best's
(2) expedited services operating as Panther Expedited Services, Inc. for the
    period of June 16 to December 31, 2012.
(3) This segment includes the results of operations of Arkansas Best's
    transportation brokerage services operating as FreightValue^®.
    This segment includes the results of operations of Arkansas Best's
(4) roadside vehicle assistance and commercial equipment services subsidiary
    FleetNet America, Inc.
    This segment includes the results of operations of Arkansas Best's
(5) subsidiaries Albert Companies, Inc. and Moving Solutions, Inc. which
    provide services to the consumer, corporate, and military household goods
    moving market.



ABF FREIGHT SYSTEM, INC.

OPERATING STATISTICS
                Three Months Ended              Year Ended
                December 31                     December 31
                2012        2011        %       2012        2011        %
                                        Change                          Change
                (Unaudited)
Freight
Transportation
^(1)
Workdays        61.5        61.0                252.0       252.0
Billed Revenue  $ 28.02     $ 28.01     –       $ 28.03     $ 26.86     4.4%
^(2) / CWT
Billed Revenue  $ 382.40    $ 371.34    3.0%    $ 380.49    $ 362.11    5.1%
^(2) / Shipment
Shipments         1,083,615   1,101,893 (1.7)%    4,494,062   4,745,404 (5.3)%
Shipments / Day   17,620      18,064    (2.5)%    17,834      18,831    (5.3)%
Tonnage (tons)    739,418     730,426   1.2%      3,049,885   3,198,292 (4.6)%
Tons / Day        12,023      11,974    0.4%      12,103      12,692    (4.6)%



(1) Operating statistics for the Freight Transportation segment do not include
    the results from ABF's Global Supply Chain Services.
(2) Billed Revenue does not include revenue deferral required for financial
    statement purposes under the company's revenue recognition policy.



Contact: Investors: Mr. David Humphrey, Vice President, Investor Relations and
         Corporate Communications
         Telephone: (479) 785-6200
         Media: Ms. Kathy Fieweger
         Telephone: (847) 903-8806

SOURCE Arkansas Best Corporation

Website: http://arkbest.com
 
Press spacebar to pause and continue. Press esc to stop.