Arkansas Best Corporation Announces Third Quarter 2013 Results

        Arkansas Best Corporation Announces Third Quarter 2013 Results  - Third quarter 2013 revenue increases 7.9% to $623.4 million from $577.5 million  - Third quarter 2013 net income of $14.0 million, or $0.52 per share, on better business levels  - Panther produces significant improvement in third quarter operating income and EBITDA  - All emerging, non-asset-based businesses generated third quarter operating income on revenue growth  - ABF Freight's new five-year labor agreement was implemented on November 3  - Year-to-date ABF Freight results just above breakeven levels  PR Newswire  FORT SMITH, Ark., Nov. 11, 2013  FORT SMITH, Ark., Nov. 11, 2013 /PRNewswire/ --Arkansas Best Corporation (Nasdaq: ABFS) today reported higher third quarter 2013 net income in the seasonally strong business environment for ABF Freight System, Inc., while Arkansas Best's emerging businesses continued to experience revenue growth and positive margins.  Arkansas Best's third quarter 2013 revenue was $623.4 million compared to revenue of $577.5 million in the third quarter of 2012. Third quarter 2013 net income was $14.0 million, or $0.52 per share, compared to third quarter 2012 net income of $6.5 million, or $0.24 per share. The third quarter 2013 results included pension settlement charges of $0.04 per share related to Arkansas Best's nonunion defined benefit pension plan which, as previously announced, was amended to freeze the accrual of future benefits of nonunion employees beginning July 1, 2013. In addition, third quarter 2013 results included a tax benefit of $0.02 per share related to the reversal of previously established deferred tax asset valuation allowances. Excluding both of these items, Arkansas Best had third quarter 2013 net income of $14.5 million, or $0.54 per share.  "This was our strongest quarter of the year thanks to the solid performances of our emerging businesses and a tonnage uptick for ABF Freight," said Arkansas Best President and Chief Executive Officer Judy R. McReynolds. "In particular, Panther Expedited Services, which we acquired in June 2012, showed improved demand in several of the industries it serves."  ABF Freight's revenue increased during the traditionally strong third quarter. However, union salary wage and benefit costs remained unacceptably high as the previous national labor agreement remained in place. This was the result of operating under several extensions of the previous labor agreement pending final resolution of all regional supplemental agreements to the new ABF National Master Freight Agreement ("ABF NMFA"), which was implemented on November 3.  ABF's third quarter 2013 total billed revenue per hundredweight was $28.67 compared to $28.46 in the same period last year. Without the impact of year-over-year changes in third quarter freight profile and account mix, which was similar to what ABF has experienced in the last several quarters, the level of ABF's yield improvement was even greater.  For the first nine months of 2013, ABF Freight's operating income was just above break-even, reflecting the high cost structure associated with the previous labor agreement. In addition, year-to-date capital expenditures for ABF Freight were minimal while the contract resolution process continued, resulting in lower than normal depreciation expense for an asset-intensive LTL business. ABF Freight also benefitted from lower retirement plan costs for nonunion employees as a result of the previously described pension amendment.   Consistent with trends throughout this year, Arkansas Best's emerging, non-asset-based businesses continued to experience growing revenue, operating margins, and cash flow generation. During the third quarter, these expanding businesses equaled 26% of total consolidated revenue, reflecting an increase in this measure during each quarter of this year. On a combined basis, Panther and all other non-asset-based businesses generated third quarter 2013 earnings before interest, taxes, depreciation and amortization ("EBITDA") of $9.7 million, a 45% increase over EBITDA generated in the third quarter of 2012. "We are pleased that our strategy of utilizing the strengths of our companies to offer end-to-end logistics solutions is benefitting our customers and positively contributing to our financial results," said McReynolds.  ABF Labor Contract  As reported on October 30, the new ABF NMFA for employees represented by the International Brotherhood of Teamsters ("IBT") was implemented on November 3, 2013, and runs through March 31, 2018. Full ratification of the new contract represents a major milestone for ABF. "While this is a significant step toward increasing ABF's profitability, there are other initiatives underway intended to improve operational efficiency," McReynolds noted. As previously announced, the level of cost savings achieved from the labor contract impacts the depth and analysis of future network improvements. Because there are additional opportunities to more cost effectively serve ABF's customers and further savings are needed in order to return to historic profitability, ABF currently has an active network analysis underway, the results of which are expected to be announced in the first half of 2014.  During the third quarter, the United States Court of Appeals for the Eighth Circuit affirmed the lower court's decision to dismiss ABF's complaint against the IBT and various YRC subsidiaries. ABF decided not to seek further review of the lawsuit, and as a result the legal process has now ended.  Closing Comments  "While our third quarter results improved on prior quarter trends and reflected strides in our emerging businesses, we remain focused on returning ABF Freight to its historic profitability," said McReynolds. "After a long and complex labor negotiation process at ABF Freight, we are pleased to have an implemented contract that allows us to lower costs while still providing the best-paying jobs in the industry. Going forward, we will continue with initiatives at ABF and all of our operating companies that will enable us to better serve our customers in the rapidly evolving transportation and logistics marketplace."  Conference Call  Arkansas Best Corporation will host a conference call with company executives to discuss the 2013 third quarter results. The call will be today, Monday, November 11, at 9:30a.m. ET (8:30 a.m. CT). Interested parties are invited to listen by calling (800) 768-3350. Following the call, a recorded playback will be available through the end of the day on December 11, 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 21675784. The conference call and playback can also be accessed, through December 11, 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," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "predict," "project," "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, a workforce stoppage by our employees covered under ABF's collective bargaining agreement or unfavorable terms of future collective bargaining agreements; relationships with employees, including unions; 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/or limit our customers' access to adequate financial resources; union and nonunion employee wages and benefits, including changes in required contributions to multiemployer pension plans; competitive initiatives, pricing pressures and 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 use of information technology platforms in our business; availability, 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; potential impairment of goodwill and intangible assets; the impact of our brand 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 Arkansas Best Corporation's Securities and Exchange Commission 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              Nine Months Ended              September 30                    September 30             2013           2012             2013                     2012             (Unaudited)             ($ thousands, except share and per share data) OPERATING   $ 623,414      $  577,546       $     1,720,999         $   1,528,956 REVENUES OPERATING EXPENSES      602,912         565,313             1,715,431             1,532,509 AND COSTS OPERATING INCOME        20,502          12,233              5,568                 (3,553) (LOSS) OTHER INCOME (EXPENSE) Interest and           167             155                 499                   623 dividend income Interest expense and other         (993)           (1,609)             (3,279)               (3,863) related financing costs Other, net    1,328           997                 2,778                 2,117               502             (457)               (2)                   (1,123) INCOME (LOSS) BEFORE        21,004          11,776              5,566                 (4,676) INCOME TAXES INCOME TAX PROVISION     7,022           5,258               101                   (4,873) (BENEFIT) NET INCOME  $ 13,982       $  6,518         $     5,465             $   197 EARNINGS PER COMMON SHARE^(1) Basic       $ 0.52         $  0.24          $     0.20              $   – Diluted     $ 0.52         $  0.24          $     0.20              $   – AVERAGE COMMON SHARES OUTSTANDING Basic         25,736,810      25,613,315          25,690,184            25,535,969 Diluted       25,736,810      25,613,315          25,690,184            25,535,969 CASH DIVIDENDS DECLARED    $ 0.03         $  0.03          $     0.09              $   0.09  PER 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  $ 13,982       $  6,518         $ 5,465                $    197 EFFECT OF UNVESTED RESTRICTED    (585)           (309)           (243)                     (113)  STOCK AWARDS^(1) ADJUSTED NET INCOME FOR CALCULATING $ 13,397       $  6,209         $ 5,222                $    84   EARNINGS PER COMMON SHARE    ARKANSAS BEST CORPORATION  CONSOLIDATED BALANCE SHEETS                                            September 30        December 31                                             2013                2012                                            (Unaudited)         Note                                            ($ thousands, except share data) ASSETS CURRENT ASSETS Cash and cash equivalents                  $ 107,611           $  90,702 Short-term investments                       28,573               29,054 Restricted cash, cash equivalents, and       1,902                9,658 short-term investments Accounts receivable, less allowances (2013   212,946              180,631 – $4,645; 2012 – $5,249) Other accounts receivable, less allowances   9,532                6,539 (2013 – $1,402; 2012 – $1,334) Prepaid expenses                             15,980               17,355 Deferred income taxes                        47,038               39,245 Prepaid and refundable income taxes          2,186                5,681 Other                                        8,882                7,185  TOTAL CURRENT ASSETS                      434,650              386,050 PROPERTY, PLANT AND EQUIPMENT Land and structures                          245,207              243,699 Revenue equipment                            591,367              589,729 Service, office, and other equipment         122,057              119,456 Software                                     109,111              103,164 Leasehold improvements                       23,524               23,272                                              1,091,266            1,079,320 Less allowances for depreciation and         691,730              635,292 amortization                                              399,536              444,028 GOODWILL                                     76,448               73,189 INTANGIBLE ASSETS, NET                       76,431               79,561 OTHER ASSETS                                 51,058               51,634                                            $ 1,038,123         $  1,034,462 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Bank overdraft and drafts payable          $ 11,645            $  13,645 Accounts payable                             95,609               84,292 Income taxes payable                         2,868                59 Accrued expenses                             181,197              158,668 Current portion of long-term debt            35,353               43,044  TOTAL CURRENT LIABILITIES                 326,672              299,708 LONG-TERM DEBT, less current portion         88,893               112,941 PENSION AND POSTRETIREMENT LIABILITIES       38,040               104,673 OTHER LIABILITIES                            13,560               12,832 DEFERRED INCOME TAXES                        71,275               45,309 STOCKHOLDERS' EQUITY Common stock, $0.01 par value, authorized 70,000,000 shares;                                              274                  273  issued 2013: 27,408,046 shares; 2012: 27,296,285 shares Additional paid-in-capital                   291,445              289,711 Retained earnings                            287,204              284,157 Treasury stock, at cost, 1,677,932 shares    (57,770)             (57,770) Accumulated other comprehensive loss         (21,470)             (57,372)  TOTAL STOCKHOLDERS' EQUITY                499,683              458,999                                            $ 1,038,123         $  1,034,462 Note: The balance sheet at December 31, 2012 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                                             Nine Months Ended                                              September 30                                             2013                2012                                             (Unaudited)                                             ($ thousands) OPERATING ACTIVITIES Net income                                  $ 5,465             $  197 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization                 64,439               62,772 Amortization of intangibles                   3,130                1,218 Pension settlement expense                    1,834                – Share-based compensation expense              3,579                4,711 Provision for losses on accounts receivable   1,658                1,314 Deferred income tax benefit                   (5,770)              (3,795) Gain on sale of property and equipment        (486)                (582) Changes in operating assets and liabilities:  Receivables                                (36,513)             (28,956)  Prepaid expenses                           1,768                2,940  Other assets                               (1,557)              (591)  Income taxes                               6,868                938 Accounts payable, accrued expenses, and    21,836               7,942 other liabilities^(1) NET CASH PROVIDED BY OPERATING ACTIVITIES     66,251               48,108 INVESTING ACTIVITIES Purchases of property, plant, and             (13,078)             (31,923) equipment, net of financings Proceeds from sale of property and            1,857                5,126 equipment Purchases of short-term investments           (21,230)             (38,708) Proceeds from sale of short-term              21,713               25,018 investments Business acquisition, net of cash             (4,146)              (180,793) acquired^(2) Capitalization of internally developed        (5,959)              (5,379) software and other NET CASH USED IN INVESTING ACTIVITIES         (20,843)             (226,659) FINANCING ACTIVITIES Borrowing under credit facilities             –                    100,000 Repayments on long-term debt                  (31,775)             (22,606) Net change in bank overdraft and other        (2,002)              (7,808) Change in restricted cash, cash               7,757                42,895 equivalents, and short-term investments Deferred financing costs                      (61)                 (1,472) Payment of common stock dividends             (2,418)              (2,412) NET CASH PROVIDED BY (USED IN) FINANCING      (28,499)             108,597 ACTIVITIES NET INCREASE (DECREASE) IN CASH AND CASH      16,909               (69,954) EQUIVALENTS Cash and cash equivalents at beginning of     90,702               141,295 period CASH AND CASH EQUIVALENTS AT END OF PERIOD  $ 107,611           $  71,341 NONCASH INVESTING ACTIVITIES Accruals for equipment received             $ 264               $  34 Equipment financed                          $ 36                $  37,973                                                      2013 and 2012 were                                                     impacted by $17.8 million                                                     and $18.0 million, (1)                                                 respectively, in                                                     contributions made to the                                                     Company's nonunion                                                     defined benefit pension                                                     plan.                                                     During second quarter                                                     2013, the Company                                                     acquired a privately-held (2)                                                 logistics business that                                                     has been reported within                                                     the Household Goods                                                     Moving Services segment.    ARKANSAS BEST CORPORATION  RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES                         Three Months Ended       Nine Months Ended                          September 30             September 30                         2013         2012        2013             2012                         (Unaudited)                         ($ thousands, except per share data) ARKANSAS BEST CORPORATION – CONSOLIDATED Net Income (Loss) Amounts on a GAAP basis $ 13,982    $ 6,518       $  5,465         $  197 Tax benefits^(1)          (550)       (396)          (766)            (3,729) Transaction costs,        –           –              –                1,294 after-tax^(2) Pension settlement        1,115       –              1,115            – expense, after-tax^(3) Non-GAAP amounts        $ 14,547    $ 6,122       $  5,814         $  (2,238) Diluted Earnings (Loss) Per Share Amounts on a GAAP basis $ 0.52      $ 0.24        $  0.20          $  – Tax benefits^(1)          (0.02)      (0.02)         (0.03)           (0.15) Transaction costs,        –           –              –                0.05 after-tax^(2) Pension settlement        0.04        –              0.04             – expense, after-tax^(3) Non-GAAP amounts        $ 0.54      $ 0.22        $  0.21          $  (0.10) ARKANSAS BEST CORPORATION – CONSOLIDATED Earnings Before Interest, Taxes, Depreciation  and Amortization Net income              $ 13,982    $ 6,518       $  5,465         $  197 Interest expense          993         1,609          3,279            3,863 Income tax provision      7,022       5,258          101              (4,873) (benefit) Depreciation and          21,569      23,820         67,569           63,990 amortization Amortization of share-based               1,095       1,369          3,579            4,711 compensation Amortization of actuarial losses and      2,994       2,846          8,818            8,539 pension settlement expense EBITDA                    47,655      41,420         88,811           76,427 Transaction costs,        –           –              –                2,129 pre-tax^(2) Adjusted EBITDA         $ 47,655    $ 41,420      $  88,811        $  78,556                                                                    Tax benefit                                                                   adjustments                                                                   related to (1)                                                               deferred                                                                   tax asset                                                                   valuation                                                                   allowances.                                                                   Transaction                                                                   costs                                                                   associated                                                                   with the                                                                   June 15, (2)                                                               2012                                                                   acquisition                                                                   of Panther                                                                   Expedited                                                                   Services,                                                                   Inc.                                                                   Settlement                                                                   expense                                                                   related to                                                                   the                                                                   Company's                                                                   nonunion (3)                                                               defined                                                                   benefit                                                                   pension                                                                   plan which                                                                   was frozen                                                                   effective                                                                   July 1,                                                                   2013. 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 generally accepted accounting principles. Other companies may calculate EBITDA differently, and therefore the Company's EBITDA may not be comparable to similarly titled measures of other companies.      ARKANSAS BEST CORPORATION  RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES                                                      Three Months Ended                 Three Months Ended                 September 30                         September 30                 2013                                                      2012                 Operating Depreciation               Operating Depreciation                 Income    and          EBITDA        Income    and          EBITDA                           Amortization                         Amortization Premium Logistics & Expedited       $  3,102  $  2,665     $ 5,767       $  804    $      2,491 $  3,295 Freight Services^(1) Domestic & Global             541       171         712            671           91       762 Transportation Management Emergency & Preventative       845       138         983            872           124      996 Maintenance Household Goods    1,835     354         2,189          1,425         169      1,594 Moving Services Total non-asset-based $  6,323  $  3,328     $ 9,651       $  3,772  $      2,875 $  6,647 segments                 Nine Months Ended                    Nine Months Ended                  September 30                         September 30                  2013                                 2012                 Operating Depreciation               Operating Depreciation                           and          EBITDA        Income    and          EBITDA                 Income    Amortization                         Amortization Premium Logistics & Expedited       $  3,745  $  7,809     $ 11,554      $  1,284  $      2,965 $  4,249 Freight Services^(1) Domestic & Global             1,564     449         2,013          1,657         245      1,902 Transportation Management Emergency & Preventative       2,367     400         2,767          1,430         373      1,803 Maintenance Household Goods    2,552     880         3,432          798           527      1,325 Moving Services Total non-asset-based $  10,228 $  9,538     $ 19,766      $  5,169  $      4,110 $  9,279 segments                                                           Depreciation and                                                          amortization consists                                                          primarily of                                                          amortization of                                                          intangibles,                                                          including customer                                                          relationships and                                                          software, which were                                                          acquired in (1)                                                      conjunction with the                                                          purchase of Panther                                                          Expedited Services,                                                          Inc. on June 15,                                                          2012. Amounts for the                                                          nine months ended                                                          September 30, 2012                                                          reflect the period                                                          from the date of                                                          acquisition, June 15,                                                          to September 30.    ARKANSAS BEST CORPORATION  FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS                  Three Months Ended                   Nine Months Ended                   September 30                         September 30                  2013             2012                2013                   2012                  (Unaudited)                   ($ thousands) OPERATING REVENUES Freight          $ 471,031        $ 450,156           $  1,325,062           $  1,287,020 Transportation   Premium Logistics &        65,851           60,445               179,533                71,280 Expedited   Freight Services^(1) Domestic & Global Transportation     28,669           17,342               74,554                 44,954   Management Emergency & Preventative       37,047           32,785               102,504                85,264   Maintenance Household Goods Moving             30,530           25,702               65,358                 61,233  Services Total non-asset-based    162,097          136,274              421,949                262,731 segments Other revenues     (9,714)          (8,884)              (26,012)               (20,795) and eliminations Total consolidated     $ 623,414        $ 577,546           $  1,720,999           $  1,528,956  operating revenues OPERATING EXPENSES AND COSTS Freight Transportation Salaries, wages, $ 276,683 58.7%  $ 272,102 60.4%     $  816,502   61.6%     $  806,158   62.6% and benefits Fuel, supplies,    84,714  18.0     83,777  18.6         250,486   18.9         247,113   19.2 and expenses Operating taxes    10,864  2.3      10,890  2.4          32,793    2.5          32,514    2.5 and licenses Insurance          6,858   1.5      4,942   1.1          17,410    1.3          15,408    1.2 Communications     3,724   0.8      3,811   0.8          11,535    0.9          11,069    0.9 and utilities Depreciation and   17,621  3.7      20,366  4.5          56,162    4.2          58,403    4.5 amortization Rents and purchased          50,507  10.7     44,015  9.8          133,236   10.1         116,912   9.1 transportation Gain on sale of property           (93)    –        (65)    –            (487)     –            (578)     –   and equipment Pension settlement         1,612   0.3      –       –            1,612     0.1          –         – expense Other              1,325   0.3      1,841   0.5          5,649     0.4          5,781     0.4                    453,815 96.3%    441,679 98.1%        1,324,898 100.0%       1,292,780 100.4% Premium Logistics & Expedited  Freight Services^(1) Purchased        $ 50,220  76.3%  $ 46,260  76.5%     $  137,489   76.6%     $  54,507    76.5% transportation Depreciation and   2,665   4.0      2,491   4.1          7,809     4.3          2,965     4.2 amortization^(1) Salaries, benefits, insurance,         9,864   15.0     10,890  18.1         30,490    17.0         12,524    17.5   and other                    62,749  95.3%    59,641  98.7%        175,788   97.9%        69,996    98.2% Domestic & Global Transportation     28,128           16,671               72,990                 43,297   Management Emergency & Preventative       36,202           31,913               100,137                83,834   Maintenance Household Goods Moving             28,695           24,277               62,806                 60,435  Services Total non-asset-based    155,774          132,502              411,721                257,562 segments Other expenses     (6,677)          (8,868)              (21,188)               (17,833) and eliminations Total consolidated operating        $ 602,912        $ 565,313           $  1,715,431           $  1,532,509   expenses and costs                                                           Depreciation and                                                          amortization consists                                                          primarily of                                                          amortization of                                                          intangibles,                                                          including customer                                                          relationships and                                                          software, which were                                                          acquired in                                                          conjunction with the                                                          purchase of Panther                                                          Expedited Services, (1)                                                      Inc. on June 15,                                                          2012. Amounts for the                                                          nine months ended                                                          September 30, 2012                                                          reflect the period                                                          from the date of                                                          acquisition, June 15,                                                          to September 30.                                                           Note: See the                                                          following page for                                                          description of                                                          segments.    ARKANSAS BEST CORPORATION  FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS – Continued                  Three Months Ended               Nine Months Ended                   September 30                     September 30                  2013           2012              2013                 2012                  (Unaudited)                   ($ thousands) OPERATING INCOME (LOSS) Freight          $ 17,216       $ 8,477           $  164               $  (5,760) Transportation   Premium Logistics &        3,102          804                3,745                1,284 Expedited  Freight Services Domestic & Global Transportation     541            671                1,564                1,657   Management Emergency & Preventative       845            872                2,367                1,430   Maintenance Household Goods Moving             1,835          1,425              2,552                798  Services Total non-asset-based    6,323          3,772              10,228               5,169 segments Other income (loss) and         (3,037)        (16)               (4,824)              (2,962)  eliminations^(1) Total consolidated     $ 20,502       $ 12,233          $  5,568             $  (3,553) operating  income (loss)                                                                   Other income                                                                  (loss) and                                                                  eliminations                                                                  for 2013                                                                  includes a                                                                  $1.4 million                                                                  reserve                                                                  adjustment (1)                                                              related to                                                                  workers'                                                                  compensations                                                                  claims                                                                  associated                                                                  with an                                                                  insolvent                                                                  insurance                                                                  carrier.     Description of Segments:    oFreight Transportation includes the results of operations of Arkansas     Best's largest subsidiary, ABF Freight System, Inc.^®.   oPanther Expedited Services, Inc., which was acquired on June 15, 2012, is     reported as Premium Logistics & Expedited Freight Services.   oDomestic & Global Transportation Management includes the company's     transportation brokerage services, ocean container transport, and     warehousing services operating as ABF Logistics.   oEmergency & Preventative Maintenance includes the roadside vehicle     assistance and commercial equipment services subsidiary FleetNet America,     Inc.   oHousehold Goods Moving Services includes Albert Companies, Inc. and Moving     Solutions, Inc. which provide services to the consumer, corporate, and     military household goods moving market.  Certain reclassifications have been made to the prior year's operating segment data to conform to the current year presentation. The operating results of Global Supply Chain Services and Supply Chain Services, businesses which provide ocean container transport and warehousing services, have been reclassified from the Freight Transportation segment to the Domestic & Global Transportation Management segment. There was no impact on consolidated amounts as a result of these reclassifications.    ARKANSAS BEST CORPORATION  OPERATING STATISTICS                                               Three Months Ended              Nine Months Ended                                               September 30                    September 30                                               2013        2012      %         2013        2012      %                                                                     Change                          Change                                             (Unaudited) Freight Transportation ^(1) Workdays                                      63.5        63.0                190.0       190.5 Billed Revenue ^(2) / CWT        $ 28.67     $ 28.46     0.7%    $ 27.78     $ 27.92     (0.5)% Billed Revenue ^(2) / Shipment          $ 390.44    $ 391.47    (0.3)%  $ 381.11    $ 378.21    0.8% Shipments   1,201,981   1,141,168 5.3%      3,488,337   3,410,012 2.3% Shipments / Day                               18,929      18,114    4.5%      18,360      17,900    2.6% Tonnage (tons)     818,471     784,713   4.3%      2,393,055   2,309,390 3.6% Tons / Day                                    12,889      12,456    3.5%      12,595      12,123    3.9%             Based on the previously described reclassifications that have been            made to the prior year's operating segment data and statistics to (1)        conform to the current year presentation, operations of Global            Supply Chain Services and Supply Chain Services are excluded from            key operating statistics for the Freight Transportation Segment.            Billed Revenue does not include revenue deferral required for (2)        financial statement purposes under the company's revenue            recognition policy.    Contact:  Investors: Mr. David Humphrey, Vice President, Investor Relations              Telephone: (479) 785-6200              Media: Ms. Kathy Fieweger, Vice President, Marketing and              Corporate Communications              Telephone: (479) 719-4358    SOURCE Arkansas Best Corporation  Website: http://www.arkbest.com  
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