GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Arkansas Best Corp. Reports Operating Results (10-K)

February 23, 2011 | About:
10qk

10qk

18 followers
Arkansas Best Corp. (ABFS) filed Annual Report for the period ended 2010-12-31.

Arkansas Best Corp. has a market cap of $621.3 million; its shares were traded at around $24.54 with and P/S ratio of 0.4. The dividend yield of Arkansas Best Corp. stocks is 0.5%.Hedge Fund Gurus that owns ABFS: Michael Price of MFP Investors LLC, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns ABFS: Richard Aster Jr of Meridian Fund, John Buckingham of Al Frank Asset Management, Inc., Chuck Royce of Royce& Associates, Jeremy Grantham of GMO LLC, PRIMECAP Management.

Highlight of Business Operations:

Generally, claims exposure in the motor carrier industry consists of cargo loss and damage, third-party casualty and workers compensation. The Companys motor carrier subsidiaries are effectively self-insured for the first $1.0 million of each cargo loss, generally $1.0 million of each third-party casualty loss and $1.0 million of each workers compensation loss. The Company maintains insurance which it believes is adequate to cover losses in excess of such self-insured amounts. However, the Company has experienced situations where excess insurance carriers have become insolvent. The Company pays assessments and fees to state guaranty funds in states where it has workers compensation self-insurance authority. In some of these states, depending on each states rules, the guaranty funds may pay excess claims if the insurer cannot pay due to insolvency. However, there can be no certainty of the solvency of individual state guaranty funds. The Company has been able to obtain what it believes to be adequate insurance coverage for 2011 and is not aware of any matters which would significantly impair its ability to obtain adequate insurance coverage at market rates for its motor carrier operations in the foreseeable future. As evidenced by being the only six-time winner of the American Trucking Associations Presidents Trophy for Safety, the only five-time winner of the Excellence in Security Award and the only four-time winner of the Excellence in Claims/Loss Prevention Award, ABF believes that it has maintained one of the best safety records and one of the lowest cargo claims ratios in the LTL industry.

At December 31, 2010 and 2009, the Companys reserve for estimated environmental clean-up costs of properties currently or previously operated by the Company included in accrued expenses totaled $1.3 million and $1.2 million, respectively. Amounts accrued reflect managements best estimate of the Companys future undiscounted exposure related to identified properties based on current environmental regulations. It is anticipated that the resolution of the Companys environmental matters could take place over several years. The Companys estimate is based on managements experience with similar environmental matters and on testing performed at certain sites.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 2.3/5 (3 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK