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

November 07, 2012 | About:
10qk

10qk

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Arkansas Best Corp. (ABFS) filed Quarterly Report for the period ended 2012-09-30.

Arkansas Best Corporation has a market cap of $191.1 million; its shares were traded at around $8.49 with a P/E ratio of 248.7 and P/S ratio of 0.1. The dividend yield of Arkansas Best Corporation stocks is 1.6%.
This is the annual revenues and earnings per share of ABFS over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ABFS.


Highlight of Business Operations:

ABF’s revenues for the three and nine months ended September 30, 2012 were $456.0 million and $1,302.3 million, respectively, compared to $459.3 million and $1,308.7 million for the same periods in 2011. ABF’s revenue comparisons were impacted by fewer workdays in 2012, and on a per day basis, were 0.9% higher in third quarter 2012 and slightly lower during the nine months ended September 30, 2012 compared to the same periods of 2011. The changes reflect the impact of decreases in tonnage per day of 1.4% and 6.1%, and increases in billed revenue per hundredweight, including fuel surcharge, of 1.5% and 5.7% for the three and nine months ended September 30, 2012, respectively.

Emergency and Preventative Maintenance revenues increased 32.2% and 21.1% for the three and nine months ended September 30, 2012, respectively, compared to the same periods in 2011. The revenue growth was impacted by increases in customer emergency and maintenance service events of 23.5% and 8.9% during the three and nine months ended September 30, 2012, respectively, due primarily to the addition of new customers and growth from existing customers, with year-to-date business levels partially offset by very mild winter weather experienced during first quarter 2012. Emergency and Preventative Maintenance reported operating income of $0.9 million and $1.4 million for the three and nine months ended September 30, 2012, respectively, versus operating income of $1.0 million and $2.8 million for the same periods in 2011. The decline in operating income was primarily due to the effect of incremental operating costs, including investment in sales, information technology, and operations, to continue expansion of this segment.

Revenues of Household Goods Moving Services (which was reported as the Special Services Logistics segment prior to the Company’s June 30, 2012 Quarterly Report on Form 10-Q) decreased 7.4% and 11.1% for the three and nine months ended September 30, 2012, respectively, compared to the same periods in 2011, primarily due to fewer managed shipments for the respective periods, partially offset by higher pricing in the 2012 periods. Total shipments decreased 6.4% and 12.7% for the three and nine months ended September 30, 2012 compared to the same prior year periods, primarily reflecting the influence of pricing initiatives, the effect of reduced military moves, and comparison to significant shipment growth experienced in the prior year periods. Household Goods Moving Services had operating income of $1.4 million and $0.8 million for the three and nine months ended September 30, 2012, respectively, compared to operating income of $1.7 million and $2.8 million for the same periods in 2011. The operating results are primarily attributable to the shipment-driven decline in revenue and incremental investment in customer support and operations, including additional information technology development and supply chain personnel costs. Although there can be no assurances, management believes that these incremental investments combined with the pricing initiatives, previously mentioned, will result in improved profitability.

During the nine months ended September 30, 2012, cash provided by operations of $48.1 million and cash equivalents and short-term investments on hand were used to fund $80.8 million of the Panther acquisition ($100.0 million of the purchase price was funded through the Term Loan further described in Financing Arrangements within this section of MD&A), fund $26.8 million of capital expenditures net of proceeds from asset sales, repay $22.6 million of long-term debt related to capital leases and notes payable, pay $7.8 million of bank overdrafts (representing checks issued that are later funded when cleared through banks), pay dividends of $2.4 million on Common Stock and pay $1.5 million of financing fees. Cash provided by operating activities during the nine months ended September 30, 2012 was $24.2 million below the same prior-year period primarily due to $18.0 million of contributions to the nonunion defined benefit pension plan compared to no contributions made in the same period of 2011. During the nine months ended September 30, 2012, ABF financed the acquisition of $38.0 million in revenue equipment (tractors and trailers) through note payable arrangements.

Unrestricted cash, cash equivalents, and short-term investments increased $26.2 million from December 31, 2010 to September 30, 2011. During the nine months ended September 30, 2011, cash provided by operations of $72.3 million was used to repay $10.9 million of long-term debt related to capital leases, fund $26.4 million of capital expenditures net of proceeds from asset sales, acquire the outstanding 25% equity interest of a consolidated logistics subsidiary for $4.1 million, and pay dividends of $2.4 million on Common Stock. During the nine months ended September 30, 2011, ABF financed the acquisition of $21.3 million in revenue equipment through capital lease and note payable arrangements.

Read the The complete Report

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