ArcBest Corporation Announces Third Quarter 2015 Results
- Third quarter 2015 revenue was $709.4 million compared to $711.3 million in third quarter 2014.
- Third quarter 2015 operating income was $33.4 million compared to $32.9 million in third quarter 2014.
- Third quarter 2015 earnings were $0.72 per diluted share, or $0.74 per diluted share on an adjusted basis, equal to third quarter 2014.
- ABF Freight's adjusted third quarter operating ratio improved to 94.7 percent versus the same period last year.
- ArcBest's asset-light logistics businesses increased revenue by 6 percent versus the prior year's third quarter.
FORT SMITH, Ark., Oct. 30, 2015 /PRNewswire/ -- ArcBest Corporation (Nasdaq: ARCB) today reported third quarter 2015 net income of $19.2 million, or $0.72 per diluted share compared to third quarter 2014 net income of $19.6 million, or $0.72 per diluted share. Excluding pension settlement charges for both periods, third quarter 2015 net income was $19.6 million, or $0.74 per diluted share compared to third quarter 2014 net income of $20.1 million, or $0.74 per diluted share. ArcBest's third quarter operating income increased versus the previous year. However, year-over-year comparisons of net income were adversely impacted by $0.03 per share due to losses in cash surrender value of variable life insurance policies that are subject to market volatility.
ArcBest reported a solid quarter given weaker than expected freight markets, resulting from high inventories, lower industrial-related manufacturing production, and weaker consumer spending. "While softer freight demand amid an increasingly sluggish economy impacted our third quarter results, revenue growth in our asset-light logistics businesses confirms that our customers find value in our expanded supply chain, moving and fleet maintenance offerings," said ArcBest President and CEO Judy R. McReynolds. "Despite economic effects and lower fuel surcharges, ABF Logistics, ABF Moving and FleetNet America all produced double-digit increases in revenue, and ABF Freight generated a solid improvement in its operating ratio through better use of resources. Panther contributed profitable results and new account growth but experienced lower revenue per load compared to record prior year levels when spot truckload capacity was constrained and fuel surcharges were higher."
Freight Transportation (ABF Freight)
Results of Operations
Third Quarter 2015
- Revenue of $511.3 million compared to $523.4 million in third quarter 2014, a decrease of 2.3 percent.
- Tonnage per day decrease of 2.5 percent versus third quarter 2014.
- Total billed revenue per hundredweight increased 0.5 percent compared to the prior year overcoming the impact of lower fuel surcharges. Excluding fuel surcharge, the increase in total billed revenue per hundredweight was in the mid-single digits.
- Excluding adjustments for pension settlement charges, operating income of $27.1 million and operating ratio of 94.7 percent compared to operating income of $25.4 million and an operating ratio of 95.2 percent in third quarter 2014.
ABF Freight's focus on yield management and account profitability combined with changes in freight profile produced a third quarter pricing yield increase versus the same period last year despite a significant reduction in diesel fuel prices that lowered fuel surcharge revenue and related fuel costs. While shipment counts increased over last year, the influence of softer economic conditions on freight demand and the effects of smaller customer shipments contributed to lower third quarter tonnage levels. Improved operating income reflects a more cost effective balance in using internal resources versus purchased transportation.
On October 5, ABF Freight implemented a 4.95 percent increase in general rates and charges. This rate increase impacts approximately 35 percent of ABF Freight's business.
Asset-Light Logistics
Results of Operations
Third Quarter 2015
- Revenue of $211.1 million compared to $198.9 million in third quarter 2014, an increase of 6 percent, which was significantly impacted by lower revenue at Panther.
- These businesses equaled 29 percent of total consolidated revenue, compared to 28 percent during the same period last year.
- Third quarter 2015 earnings before interest, taxes, depreciation and amortization ("EBITDA") of $12.1 million compared to EBITDA in third quarter 2014 of $13.0 million.
The third quarter revenue growth of ArcBest's asset-light logistics businesses was driven by double-digit increases at ABF Logistics, ABF Moving and FleetNet. ABF Logistics experienced a strong increase in third quarter operating income associated with improved gross margins and cost efficiencies related to an increase in truckload brokerage shipments. ABF Moving continued a strong summer moving season driven by a higher mix of government shipments, which generally operate at lower margins than consumer business. Improvements in FleetNet's operating margins were the result of cost efficiencies associated with emergency roadside repair activity from new customers. Panther's third quarter 2015 revenue and profitability declined compared to last year when tight market conditions and high demand for its services caused revenue to be at a record level. Despite a 5.3 percent third quarter increase in loads handled, abundant capacity in the truckload spot market and the impact of lower fuel surcharges reduced Panther's revenue per load and revenue per mile.
Enterprise Solutions
ArcBest's investment in its enterprise solutions to provide for an improved platform for revenue growth and to enhance the ability to offer ArcBest services across multiple business units increased third quarter costs by approximately $1 million. This initiative continues to be an important component of the logistics solutions ArcBest offers to its customers.
Capital Return To Shareholders
As recently announced, ArcBest's solid balance sheet and financial strength enabled it to increase its quarterly cash dividend to $0.08 per share from the previous amount of $0.06 per share and to extend its share repurchase program, making a total of $50.0 million available for purchases of ArcBest's common stock.
Conference Call
ArcBest Corporation will host a conference call with company executives to discuss the 2015 third quarter results. The call will be today, Friday, October 30, at 9:30 a.m. ET (8:30 a.m. CT). Interested parties are invited to listen by calling (888) 225-1529. Following the call, a recorded playback will be available through the end of the day on December 15, 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 21779108. The conference call and playback can also be accessed, through December 15, 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 Logistics®, 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 months ended September 30, 2015 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: costs of continuing investments in technology, a failure of our information systems and the impact of cyber incidents; disruptions or failures of services essential to the operation of our business or the use of information technology platforms in our business; governmental regulations and policies; litigation or claims asserted against us; 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; 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, and our ability to attract and retain employees and/or independent owner operators; 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; increased competition from freight transportation service providers outside the motor carrier freight transportation industry; 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; environmental laws and regulations, including emissions-control 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; 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.
| Investor Relations Contact: David Humphrey |
Media Contact: Kathy Fieweger |
| Title: Vice President – Investor Relations |
Phone: 479-719-4358 |
| Phone: 479-785-6200 |
Email: [email protected] |
| Email: [email protected] |
Financial Data and Operating Statistics
The following tables show financial data and operating statistics on ArcBest Corporationsm and its subsidiary companies.
| ARCBEST CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||||||||||||||||||
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||||||||||||||||||
| 2015 |
2014 |
2015 |
2014 |
|||||||||||||||||||||||||||||
| (Unaudited) |
||||||||||||||||||||||||||||||||
| ($ thousands, except per share data) |
||||||||||||||||||||||||||||||||
| REVENUES |
$ |
709,380 |
$ |
711,295 |
$ |
2,018,771 |
$ |
1,947,845 |
||||||||||||||||||||||||
| OPERATING EXPENSES |
675,942 |
678,354 |
1,950,588 |
1,896,655 |
||||||||||||||||||||||||||||
| OPERATING INCOME |
33,438 |
32,941 |
68,183 |
51,190 |
||||||||||||||||||||||||||||
| OTHER INCOME (COSTS) |
||||||||||||||||||||||||||||||||
| Interest and dividend income |
378 |
215 |
882 |
600 |
||||||||||||||||||||||||||||
| Interest and other related financing costs |
(1,157) |
(834) |
(3,183) |
(2,367) |
||||||||||||||||||||||||||||
| Other, net |
(613) |
234 |
(15) |
1,549 |
||||||||||||||||||||||||||||
| (1,392) |
(385) |
(2,316) |
(218) |
|||||||||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES |
32,046 |
32,556 |
65,867 |
50,972 |
||||||||||||||||||||||||||||
| INCOME TAX PROVISION |
12,892 |
12,938 |
26,001 |
19,339 |
||||||||||||||||||||||||||||
| NET INCOME |
$ |
19,154 |
$ |
19,618 |
$ |
39,866 |
$ |
31,633 |
||||||||||||||||||||||||
| EARNINGS PER COMMON SHARE(1) |
||||||||||||||||||||||||||||||||
| Basic |
$ |
0.73 |
$ |
0.72 |
$ |
1.52 |
$ |
1.16 |
||||||||||||||||||||||||
| Diluted |
$ |
0.72 |
$ |
0.72 |
$ |
1.48 |
$ |
1.16 |
||||||||||||||||||||||||
| AVERAGE COMMON SHARES OUTSTANDING |
||||||||||||||||||||||||||||||||
| Basic |
26,009,344 |
26,054,678 |
26,033,467 |
25,979,555 |
||||||||||||||||||||||||||||
| Diluted |
26,508,482 |
26,054,678 |
26,569,800 |
25,980,008 |
||||||||||||||||||||||||||||
| CASH DIVIDENDS DECLARED |
$ |
0.06 |
$ |
0.03 |
$ |
0.18 |
$ |
0.09 |
||||||||||||||||||||||||
| (1) |
ArcBest uses the two-class method for calculating earnings per share. This method, as calculated below, requires an allocation of dividends paid and a portion of undistributed net income to unvested restricted stock for calculating per share amounts. |
|||||||||||||||||||||||||||||||
| NET INCOME |
$ |
19,154 |
$ |
19,618 |
$ |
39,866 |
$ |
31,633 |
||||||||||||||||||||||||
| EFFECT OF UNVESTED RESTRICTED |
(172) |
(981) |
(410) |
(1,591) |
||||||||||||||||||||||||||||
| ADJUSTED NET INCOME FOR CALCULATING |
$ |
18,982 |
$ |
18,637 |
$ |
39,456 |
$ |
30,042 |
||||||||||||||||||||||||
| ARCBEST CORPORATION CONSOLIDATED BALANCE SHEETS |
|||||||||||||||||||||||||||||||||||
| September 30 2015 |
December 31 2014 |
||||||||||||||||||||||||||||||||||
| (Unaudited) |
Note |
||||||||||||||||||||||||||||||||||
| ($ thousands, except share data) |
|||||||||||||||||||||||||||||||||||
| ASSETS |
|||||||||||||||||||||||||||||||||||
| CURRENT ASSETS |
|||||||||||||||||||||||||||||||||||
| Cash and cash equivalents |
$ |
191,646 |
$ |
157,042 |
|||||||||||||||||||||||||||||||
| Short-term investments |
69,567 |
45,909 |
|||||||||||||||||||||||||||||||||
| Restricted cash |
1,387 |
1,386 |
|||||||||||||||||||||||||||||||||
| Accounts receivable, less allowances (2015 – $5,311; 2014 – $5,731) |
242,656 |
228,056 |
|||||||||||||||||||||||||||||||||
| Other accounts receivable, less allowances (2015 – $979; 2014 – $1,701) |
7,119 |
6,582 |
|||||||||||||||||||||||||||||||||
| Prepaid expenses |
18,557 |
20,906 |
|||||||||||||||||||||||||||||||||
| Deferred income taxes |
41,349 |
40,220 |
|||||||||||||||||||||||||||||||||
| Prepaid and refundable income taxes |
3,057 |
9,920 |
|||||||||||||||||||||||||||||||||
| Other |
5,144 |
4,968 |
|||||||||||||||||||||||||||||||||
| TOTAL CURRENT ASSETS |
580,482 |
514,989 |
|||||||||||||||||||||||||||||||||
| PROPERTY, PLANT AND EQUIPMENT |
|||||||||||||||||||||||||||||||||||
| Land and structures |
269,317 |
251,836 |
|||||||||||||||||||||||||||||||||
| Revenue equipment |
689,786 |
633,455 |
|||||||||||||||||||||||||||||||||
| Service, office, and other equipment |
142,536 |
136,145 |
|||||||||||||||||||||||||||||||||
| Software |
122,874 |
116,112 |
|||||||||||||||||||||||||||||||||
| Leasehold improvements |
24,962 |
24,377 |
|||||||||||||||||||||||||||||||||
| 1,249,475 |
1,161,925 |
||||||||||||||||||||||||||||||||||
| Less allowances for depreciation and amortization |
790,536 |
752,075 |
|||||||||||||||||||||||||||||||||
| 458,939 |
409,850 |
||||||||||||||||||||||||||||||||||
| GOODWILL |
81,278 |
77,078 |
|||||||||||||||||||||||||||||||||
| INTANGIBLE ASSETS, net |
70,410 |
72,809 |
|||||||||||||||||||||||||||||||||
| OTHER ASSETS |
53,177 |
52,896 |
|||||||||||||||||||||||||||||||||
| $ |
1,244,286 |
$ |
1,127,622 |
||||||||||||||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||||||||||||||||||||||||||||||
| CURRENT LIABILITIES |
|||||||||||||||||||||||||||||||||||
| Accounts payable |
$ |
144,401 |
$ |
120,325 |
|||||||||||||||||||||||||||||||
| Income taxes payable |
8,489 |
527 |
|||||||||||||||||||||||||||||||||
| Accrued expenses |
193,997 |
194,674 |
|||||||||||||||||||||||||||||||||
| Current portion of long-term debt |
35,050 |
25,256 |
|||||||||||||||||||||||||||||||||
| TOTAL CURRENT LIABILITIES |
381,937 |
340,782 |
|||||||||||||||||||||||||||||||||
| LONG-TERM DEBT, less current portion |
156,553 |
102,474 |
|||||||||||||||||||||||||||||||||
| PENSION AND POSTRETIREMENT LIABILITIES |
49,978 |
42,418 |
|||||||||||||||||||||||||||||||||
| OTHER LIABILITIES |
12,755 |
16,667 |
|||||||||||||||||||||||||||||||||
| DEFERRED INCOME TAXES |
56,268 |
64,398 |
|||||||||||||||||||||||||||||||||
| STOCKHOLDERS' EQUITY |
|||||||||||||||||||||||||||||||||||
| Common stock, $0.01 par value, authorized 70,000,000 shares; issued 2015: 27,932,109 shares; 2014: 27,722,010 shares |
279 |
277 |
|||||||||||||||||||||||||||||||||
| Additional paid-in capital |
307,939 |
303,045 |
|||||||||||||||||||||||||||||||||
| Retained earnings |
373,936 |
338,810 |
|||||||||||||||||||||||||||||||||
| Treasury stock, at cost, 2015: 1,970,118 shares; 2014: 1,677,932 shares |
(67,774) |
(57,770) |
|||||||||||||||||||||||||||||||||
| Accumulated other comprehensive loss |
(27,585) |
(23,479) |
|||||||||||||||||||||||||||||||||
| TOTAL STOCKHOLDERS' EQUITY |
586,795 |
560,883 |
|||||||||||||||||||||||||||||||||
| $ |
1,244,286 |
$ |
1,127,622 |
||||||||||||||||||||||||||||||||
| Note: The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. |
| ARCBEST CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30 |
|||||||||||||||||||||||||||||||||||
| 2015 |
2014 |
||||||||||||||||||||||||||||||||||
| (Unaudited) |
|||||||||||||||||||||||||||||||||||
| ($ thousands) |
|||||||||||||||||||||||||||||||||||
| OPERATING ACTIVITIES |
|||||||||||||||||||||||||||||||||||
| Net income |
$ |
39,866 |
$ |
31,633 |
|||||||||||||||||||||||||||||||
| Adjustments to reconcile net income to net cash |
|||||||||||||||||||||||||||||||||||
| Depreciation and amortization |
65,142 |
60,613 |
|||||||||||||||||||||||||||||||||
| Amortization of intangibles |
3,079 |
3,242 |
|||||||||||||||||||||||||||||||||
| Pension settlement expense |
2,478 |
5,405 |
|||||||||||||||||||||||||||||||||
| Share-based compensation expense |
6,343 |
5,362 |
|||||||||||||||||||||||||||||||||
| Provision for losses on accounts receivable |
941 |
1,647 |
|||||||||||||||||||||||||||||||||
| Deferred income tax benefit |
(7,862) |
(7,409) |
|||||||||||||||||||||||||||||||||
| Gain on sale of property and equipment |
(1,691) |
(597) |
|||||||||||||||||||||||||||||||||
| Changes in operating assets and liabilities: |
|||||||||||||||||||||||||||||||||||
| Receivables |
(14,881) |
(41,180) |
|||||||||||||||||||||||||||||||||
| Prepaid expenses |
2,353 |
1,477 |
|||||||||||||||||||||||||||||||||
| Other assets |
505 |
(1,081) |
|||||||||||||||||||||||||||||||||
| Income taxes |
14,295 |
9,981 |
|||||||||||||||||||||||||||||||||
| Accounts payable, accrued expenses, and other liabilities |
9,006 |
49,108 |
|||||||||||||||||||||||||||||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES |
119,574 |
118,201 |
|||||||||||||||||||||||||||||||||
| INVESTING ACTIVITIES |
|||||||||||||||||||||||||||||||||||
| Purchases of property, plant and equipment, net of financings |
(53,644) |
(23,756) |
|||||||||||||||||||||||||||||||||
| Proceeds from sale of property and equipment |
4,115 |
2,701 |
|||||||||||||||||||||||||||||||||
| Purchases of short-term investments |
(48,868) |
(25,347) |
|||||||||||||||||||||||||||||||||
| Proceeds from sale of short-term investments |
25,347 |
17,478 |
|||||||||||||||||||||||||||||||||
| Business acquisition, net of cash acquired |
(5,239) |
(2,647) |
|||||||||||||||||||||||||||||||||
| Capitalization of internally developed software |
(6,155) |
(6,016) |
|||||||||||||||||||||||||||||||||
| NET CASH USED IN INVESTING ACTIVITIES |
(84,444) |
(37,587) |
|||||||||||||||||||||||||||||||||
| FINANCING ACTIVITIES |
|||||||||||||||||||||||||||||||||||
| Borrowings under credit facilities |
70,000 |
– |
|||||||||||||||||||||||||||||||||
| Borrowings under accounts receivable securitization program |
35,000 |
– |
|||||||||||||||||||||||||||||||||
| Payments on long-term debt |
(92,136) |
(28,024) |
|||||||||||||||||||||||||||||||||
| Net change in book overdrafts |
2,179 |
2,304 |
|||||||||||||||||||||||||||||||||
| Net change in restricted cash |
(1) |
517 |
|||||||||||||||||||||||||||||||||
| Deferred financing costs |
(824) |
(61) |
|||||||||||||||||||||||||||||||||
| Payment of common stock dividends |
(4,740) |
(2,458) |
|||||||||||||||||||||||||||||||||
| Purchases of treasury stock |
(10,004) |
– |
|||||||||||||||||||||||||||||||||
| Proceeds from the exercise of stock options |
– |
1,136 |
|||||||||||||||||||||||||||||||||
| NET CASH USED IN FINANCING ACTIVITIES |
(526) |
(26,586) |
|||||||||||||||||||||||||||||||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS |
34,604 |
54,028 |
|||||||||||||||||||||||||||||||||
| Cash and cash equivalents at beginning of period |
157,042 |
105,354 |
|||||||||||||||||||||||||||||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
191,646 |
$ |
159,382 |
|||||||||||||||||||||||||||||||
| NONCASH INVESTING ACTIVITIES |
|||||||||||||||||||||||||||||||||||
| Equipment financed |
$ |
51,009 |
$ |
41,002 |
|||||||||||||||||||||||||||||||
| Accruals for equipment received |
$ |
7,150 |
$ |
9,632 |
|||||||||||||||||||||||||||||||
| ARCBEST CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||
| Three Months Ended |
Nine Months Ended |
|||||||||||||||||
| September 30 |
September 30 |
|||||||||||||||||
| 2015 |
2014 |
2015 |
2014 |
|||||||||||||||
| (Unaudited) |
||||||||||||||||||
| ($ thousands) |
||||||||||||||||||
| FREIGHT TRANSPORTATION (ABF FREIGHT) |
||||||||||||||||||
| Operating Income ($) Operating Ratio (% of revenues) |
|
|||||||||||||||||
| Amounts on a GAAP basis |
$ |
26,577 |
94.8% |
$ |
24,737 |
95.3% |
$ |
54,711 |
96.2% |
$ |
35,389 |
97.6% |
||||||
| Pension settlement expense |
572 |
(0.1)% |
627 |
(0.1)% |
1,860 |
(0.1)% |
4,224 |
(0.3)% |
||||||||||
| Non-GAAP amounts |
$ |
27,149 |
94.7% |
$ |
25,364 |
95.2% |
$ |
56,571 |
96.1% |
$ |
39,613 |
97.3% |
||||||
| Three Months Ended |
Nine Months Ended |
|||||||||||||||||
| September 30 |
September 30 |
|||||||||||||||||
| 2015 |
2014 |
2015 |
2014 |
|||||||||||||||
| (Unaudited) |
||||||||||||||||||
| ($ thousands, except per share data) |
||||||||||||||||||
| ARCBEST CORPORATION – CONSOLIDATED |
||||||||||||||||||
| Operating Income |
||||||||||||||||||
| Amounts on a GAAP basis |
$ |
33,438 |
$ |
32,941 |
$ |
68,183 |
$ |
51,190 |
||||||||||
| Pension settlement expense, pre-tax |
762 |
805 |
2,478 |
5,405 |
||||||||||||||
| Non-GAAP amounts |
$ |
34,200 |
$ |
33,746 |
$ |
70,661 |
$ |
56,595 |
||||||||||
| Net Income |
||||||||||||||||||
| Amounts on a GAAP basis |
$ |
19,154 |
$ |
19,618 |
$ |
39,866 |
$ |
31,633 |
||||||||||
| Pension settlement expense, after-tax |
466 |
492 |
1,514 |
3,303 |
||||||||||||||
| Non-GAAP amounts |
$ |
19,620 |
$ |
20,110 |
$ |
41,380 |
$ |
34,936 |
||||||||||
| Diluted Earnings Per Share |
||||||||||||||||||
| Amounts on a GAAP basis |
$ |
0.72 |
$ |
0.72 |
$ |
1.48 |
$ |
1.16 |
||||||||||
| Pension settlement expense, after-tax |
0.02 |
0.02 |
0.06 |
0.13 |
||||||||||||||
| Non-GAAP amounts |
$ |
0.74 |
$ |
0.74 |
$ |
1.54 |
$ |
1.29 |
||||||||||
| ARCBEST CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES |
||||||||||||
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||
| Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) |
||||||||||||
| 2015 |
2014 |
2015 |
2014 |
|||||||||
| (Unaudited) |
||||||||||||
| ($ thousands) |
||||||||||||
| ARCBEST CORPORATION – CONSOLIDATED |
||||||||||||
| Net income |
$ |
19,154 |
$ |
19,618 |
$ |
39,866 |
$ |
31,633 |
||||
| Interest and other related financing costs |
1,157 |
834 |
3,183 |
2,367 |
||||||||
| Income tax provision |
12,892 |
12,938 |
26,001 |
19,339 |
||||||||
| Depreciation and amortization |
23,373 |
22,177 |
68,221 |
63,855 |
||||||||
| Amortization of share-based compensation |
2,110 |
1,694 |
6,343 |
5,362 |
||||||||
| Amortization of actuarial losses of benefit plans and pension settlement expense(1) |
1,655 |
1,480 |
5,513 |
7,373 |
||||||||
| $ |
60,341 |
$ |
58,741 |
$ |
149,127 |
$ |
129,929 |
|||||
| (1) |
Consolidated pension settlement expense totaled $0.8 million (pre-tax) for the three months ended September 30, 2015 and 2014, and $2.5 million (pre-tax) and $5.4 million (pre-tax) for the nine months ended September 30, 2015 and 2014, respectively. |
| Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) |
Three Months Ended |
Three Months Ended |
|||||||||||
| (Unaudited) |
|||||||||||||
| ($ thousands) |
|||||||||||||
| ASSET-LIGHT LOGISTICS |
Operating Income |
Depreciation and Amortization |
EBITDA |
Operating Income |
Depreciation and Amortization |
EBITDA |
|||||||
| Premium Logistics (Panther)(2) |
$ |
2,733 |
$ |
2,773 |
$ |
5,506 |
$ |
4,119 |
$ |
2,891 |
$ |
7,010 |
|
| Emergency & Preventative Maintenance (FleetNet) |
956 |
279 |
1,235 |
739 |
266 |
1,005 |
|||||||
| Transportation Management (ABF Logistics) |
1,792 |
259 |
2,051 |
1,060 |
256 |
1,316 |
|||||||
| Household Goods Moving Services (ABF Moving) |
3,028 |
287 |
3,315 |
3,309 |
349 |
3,658 |
|||||||
| Total asset-light logistics |
$ |
8,509 |
$ |
3,598 |
$ |
12,107 |
$ |
9,227 |
$ |
3,762 |
$ |
12,989 |
|
| Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) |
Nine Months Ended |
Nine Months Ended |
|||||||||||
| (Unaudited) |
|||||||||||||
| ($ thousands) |
|||||||||||||
| ASSET-LIGHT LOGISTICS |
Operating Income |
Depreciation and Amortization |
EBITDA |
Operating Income |
Depreciation and Amortization |
EBITDA |
|||||||
| Premium Logistics (Panther)(2) |
$ |
8,767 |
$ |
8,636 |
$ |
17,403 |
$ |
11,841 |
$ |
8,465 |
$ |
20,306 |
|
| Emergency & Preventative Maintenance (FleetNet) |
3,143 |
838 |
3,981 |
2,840 |
677 |
3,517 |
|||||||
| Transportation Management (ABF Logistics) |
4,375 |
789 |
5,164 |
2,449 |
725 |
3,174 |
|||||||
| Household Goods Moving Services (ABF Moving) |
4,663 |
975 |
5,638 |
3,091 |
1,043 |
4,134 |
|||||||
| Total asset-light logistics |
$ |
20,948 |
$ |
11,238 |
$ |
32,186 |
$ |
20,221 |
$ |
10,910 |
$ |
31,131 |
|
| (2)
|
Depreciation and amortization consists primarily of amortization of intangibles, including customer relationships and software associated with the June 15, 2012 acquisition of Panther. |
| Non-GAAP Financial Measures. ArcBest Corporation ("ArcBest") reports its financial results in accordance with generally accepted accounting principles ("GAAP"). However, management believes that certain non-GAAP performance measures and ratios utilized for internal analysis provide financial statement users meaningful comparisons between current and prior period results, as well as important information regarding performance trends. Certain information discussed in the scheduled conference call could be considered non-GAAP measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, ArcBest's reported results. Management believes EBITDA and 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 EBITDA and 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 |
Nine Months Ended |
|||||||||||||||||
| 2015 |
2014 |
2015 |
2014 |
|||||||||||||||
| (Unaudited) ($ thousands) |
||||||||||||||||||
| REVENUES |
||||||||||||||||||
| Freight Transportation (ABF Freight) |
$ |
511,346 |
$ |
523,351 |
$ |
1,456,924 |
$ |
1,445,079 |
||||||||||
| Premium Logistics (Panther) |
73,583 |
82,784 |
229,146 |
236,435 |
||||||||||||||
| Emergency & Preventative Maintenance (FleetNet) |
45,181 |
40,117 |
129,685 |
120,123 |
||||||||||||||
| Transportation Management (ABF Logistics) |
49,270 |
40,672 |
147,061 |
105,882 |
||||||||||||||
| Household Goods Moving Services (ABF Moving) |
43,076 |
35,338 |
93,870 |
72,943 |
||||||||||||||
| Total asset-light logistics |
211,110 |
198,911 |
599,762 |
535,383 |
||||||||||||||
| Other and eliminations |
(13,076) |
(10,967) |
(37,915) |
(32,617) |
||||||||||||||
| Total consolidated revenues |
$ |
709,380 |
$ |
711,295 |
$ |
2,018,771 |
$ |
1,947,845 |
||||||||||
| OPERATING EXPENSES |
||||||||||||||||||
| Freight Transportation (ABF Freight) |
||||||||||||||||||
| Salaries, wages, and benefits |
$ |
304,865 |
59.6% |
$ |
294,826 |
56.3% |
$ |
884,875 |
60.7% |
$ |
835,354 |
57.8% |
||||||
| Fuel, supplies, and expenses |
77,708 |
15.2 |
91,406 |
17.5 |
236,381 |
16.2 |
275,473 |
19.1 |
||||||||||
| Operating taxes and licenses |
12,444 |
2.4 |
11,262 |
2.2 |
36,762 |
2.5 |
34,525 |
2.4 |
||||||||||
| Insurance |
8,288 |
1.6 |
6,498 |
1.2 |
20,340 |
1.4 |
17,859 |
1.2 |
||||||||||
| Communications and utilities |
3,808 |
0.8 |
3,768 |
0.7 |
11,559 |
0.8 |
11,741 |
0.8 |
||||||||||
| Depreciation and amortization |
18,841 |
3.7 |
17,746 |
3.4 |
54,528 |
3.8 |
50,925 |
3.5 |
||||||||||
| Rents and purchased transportation |
56,920 |
11.1 |
69,985 |
13.4 |
151,144 |
10.4 |
172,954 |
12.0 |
||||||||||
| Gain on sale of property and equipment |
(565) |
(0.1) |
(333) |
(0.1) |
(1,403) |
(0.1) |
(576) |
– |
||||||||||
| Pension settlement expense(1) |
572 |
0.1 |
627 |
0.1 |
1,860 |
0.1 |
4,224 |
0.3 |
||||||||||
| Other |
1,888 |
0.4 |
2,829 |
0.6 |
6,167 |
0.4 |
7,211 |
0.5 |
||||||||||
| 484,769 |
94.8% |
498,614 |
95.3% |
1,402,213 |
96.2% |
1,409,690 |
97.6% |
|||||||||||
| Premium Logistics (Panther) |
||||||||||||||||||
| Purchased transportation |
$ |
54,015 |
73.4% |
61,298 |
74.0% |
168,569 |
73.6% |
176,057 |
74.5% |
|||||||||
| Depreciation and amortization(2) |
2,773 |
3.8 |
2,891 |
3.5 |
8,636 |
3.8 |
8,465 |
3.6 |
||||||||||
| Salaries, benefits, insurance, and other |
14,062 |
19.1 |
14,476 |
17.5 |
43,174 |
18.8 |
40,072 |
16.9 |
||||||||||
| 70,850 |
96.3% |
78,665 |
95.0% |
220,379 |
96.2% |
224,594 |
95.0% |
|||||||||||
| Emergency & Preventative Maintenance (FleetNet) |
$ |
44,225 |
39,378 |
126,542 |
117,283 |
|||||||||||||
| Transportation Management (ABF Logistics) |
47,478 |
39,612 |
142,686 |
103,433 |
||||||||||||||
| Household Goods Moving Services (ABF Moving) |
40,048 |
32,029 |
89,207 |
69,852 |
||||||||||||||
| Total asset-light logistics(1) |
202,601 |
189,684 |
578,814 |
515,162 |
||||||||||||||
| Other and eliminations(1) |
(11,428) |
(9,944) |
(30,439) |
(28,197) |
||||||||||||||
| Total consolidated operating expenses(1) |
$ |
675,942 |
$ |
678,354 |
$ |
1,950,588 |
$ |
1,896,655 |
||||||||||
| (1) |
Pension settlement expense totaled $0.8 million (pre-tax) on a consolidated basis for the three months ended September 30, 2015 and 2014 and $2.5 million (pre-tax) and $5.4 million (pre-tax) for the nine months ended September 30, 2015 and 2014, respectively. For the three months ended September 30, 2015 and 2014, pre-tax pension settlement expense of $0.6 million was reported by ABF Freight; $0.2 million was reported in Other and eliminations; and less than $0.1 million was reported by the asset-light logistics segments. For the nine months ended September 30, 2015 and 2014, pre-tax pension settlement expense of $1.9 million and $4.2 million, respectively, was reported by ABF Freight; $0.5 million and $1.1 million, respectively, was reported in Other and eliminations; and $0.1 million was reported by the asset-light logistics segments. |
| (2) |
Depreciation and amortization consists primarily of amortization of intangibles, including customer relationships and software associated with the June 15, 2012 acquisition of Panther. |
ARCBEST CORPORATION FINANCIAL STATEMENT OPERATING SEGMENT DATA AND OPERATING RATIOS – Continued |
||||||||||||||||
| Three Months Ended |
Nine Months Ended |
|||||||||||||||
| 2015 |
2014 |
2015 |
2014 |
|||||||||||||
| (Unaudited) ($ thousands) |
||||||||||||||||
| OPERATING INCOME |
||||||||||||||||
| Freight Transportation (ABF Freight)(1) |
$ |
26,577 |
$ |
24,737 |
$ |
54,711 |
$ |
35,389 |
||||||||
| Premium Logistics (Panther) |
2,733 |
4,119 |
8,767 |
11,841 |
||||||||||||
| Emergency & Preventative Maintenance (FleetNet) |
956 |
739 |
3,143 |
2,840 |
||||||||||||
| Transportation Management (ABF Logistics) |
1,792 |
1,060 |
4,375 |
2,449 |
||||||||||||
| Household Goods Moving Services (ABF Moving) |
3,028 |
3,309 |
4,663 |
3,091 |
||||||||||||
| Total asset-light logistics |
8,509 |
9,227 |
20,948 |
20,221 |
||||||||||||
| Other and eliminations(2) |
(1,648) |
(1,023) |
(7,476) |
(4,420) |
||||||||||||
| Total consolidated operating income |
$ |
33,438 |
$ |
32,941 |
$ |
68,183 |
$ |
51,190 |
||||||||
| (1) |
ABF Freight's operating profit for all periods presented was impacted by pension settlement expense. (See reconciliations of GAAP operating income to non-GAAP operating income in the Freight Transportation table previously presented.) |
| (2) |
For the three and nine months ended September 30, 2015, "Other" corporate costs include additional investments in enterprise solutions to provide an improved platform for revenue growth and for offering ArcBest services across multiple operating segments. |
ARCBEST CORPORATION OPERATING STATISTICS |
||||||||||||||
| Three Months Ended |
Nine Months Ended |
|||||||||||||
| September 30 |
September 30 |
|||||||||||||
| 2015 |
2014 |
% Change |
2015 |
2014 |
% Change |
|||||||||
| (Unaudited) |
||||||||||||||
| Freight Transportation (ABF Freight) |
||||||||||||||
| Workdays |
64.0 |
64.0 |
190.0 |
190.5 |
||||||||||
| Billed Revenue(1) / CWT |
$ |
29.68 |
$ |
29.53 |
0.5% |
$ |
28.95 |
$ |
28.54 |
1.4% |
||||
| Billed Revenue(1) / Shipment |
$ |
377.96 |
$ |
389.70 |
(3.0)% |
$ |
378.76 |
$ |
388.46 |
(2.5)% |
||||
| Shipments |
1,344,083 |
1,330,091 |
1.1% |
3,851,446 |
3,725,093 |
3.4% |
||||||||
| Shipments / Day |
21,001 |
20,783 |
1.0% |
20,271 |
19,554 |
3.7% |
||||||||
| Tonnage (Tons) |
855,952 |
877,531 |
(2.5)% |
2,519,614 |
2,535,235 |
(0.6)% |
||||||||
| Tons / Day |
13,374 |
13,711 |
(2.5)% |
13,261 |
13,308 |
(0.4)% |
||||||||
| (1)
|
Revenue for undelivered freight is deferred for financial statement purposes in accordance with ABF Freight's revenue recognition policy. Billed revenue used for calculating revenue per hundredweight measurements has not been adjusted for the portion of revenue deferred for financial statement purposes. Billed revenue has been adjusted to exclude intercompany revenue that is not related to freight transportation services. |
|||||||||||||
SOURCE ArcBest Corporation
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