ArcBest Corporation Announces First Quarter 2015 Results

• ArcBest experiences best first quarter in seven years
• First  quarter  2015  net  income  of  $0.7  million,  or  $0.03 per share. Excluding pension settlement charges, first quarter 2015 net income was $1.4 million, or $0.06 per share.
• First quarter revenue growth and a positive pricing environment at ABF FreightSM resulted in improved operating margins.
• First quarter revenue at ArcBest’s emerging businesses increased by 16 percent as more comprehensive customer services were offered across the array of ArcBest companies.

FORT SMITH Arkansas, May 4, 2015 – ArcBest Corporation (Nasdaq: ARCB) today reported first quarter 2015 earnings of $0.03 per share compared to a first quarter 2014 net loss of $0.20 per share, as ABF Freight posted operating income and the emerging businesses, which in total equaled 29 percent of ArcBest’s revenue, all grew from the year-ago period.

Excluding pension settlement charges in both periods, ArcBest earned $0.06 per share in first quarter 2015 compared to a net loss of $0.11 per share last year.

ArcBest Corporation

Consolidated Results of Operations

First Quarter 2015

• Revenue of $613.3 million, an increase of 6 percent over the prior year quarter of

$577.9 million

• Net income of $0.7 million compared to a net loss of $5.2 million in the prior year quarter
• Excluding pension settlement charges, net income of $1.4 million compared to a net loss of $2.9 million in the prior year quarter

“We were very gratified to see ArcBest post a first-quarter profit for the first time in seven years,” said ArcBest President and CEO Judy R. McReynolds. “As productivity and pricing improved, ABF Freight reversed last year’s first-quarter losses while maintaining its focus on better serving customers.  The emerging businesses contributed their largest revenue portion yet to ArcBest,  at 29 percent of total consolidated revenue, as our efforts to provide tailored, customized solutions across the supply chain are resonating well.”

Freight Transportation (ABF Freight)

Results of Operations First Quarter 2015

• Revenue of $441.2 million compared to $428.9 million in first quarter 2014, an increase of 2.9 percent
• Tonnage per day decrease of 0.5 percent versus first quarter 2014
• Total billed revenue per hundredweight of $28.06 compared to $27.05 the prior year, an increase of 3.7 percent
• Breakeven operating income compared to an operating loss of $12.2 million and an operating ratio of 102.8 percent in first quarter 2014
• Excluding adjustments for pension settlement charges, operating income of $0.9 million and operating ratio of 99.8 percent compared to an operating loss of $9.3 million and an operating ratio of 102.1 percent in first quarter 2014
• Though less of an effect than last year, results include a reduction in operating income associated with severe winter weather

ABF Freight experienced first quarter revenue growth on improved pricing despite the effects of a slight reduction in total freight tonnage. By effectively managing its labor and equipment resources during the quarter, ABF Freight sought to maintain consistent service levels to both new and existing LTL customers. Management focus has resulted in improved  dock  productivity as employees hired last year are more experienced in freight  handling  and  loading. Despite year-over-year reductions in fuel surcharge related to lower fuel prices, ABF Freight continued to experience positive account pricing through its traditional ability to focus on unique, customer-specific solutions.

Emerging, Non-Asset-Based Businesses

Results of Operations First Quarter 2015

• Revenue of $183.7 million compared to $158.4 million in first quarter 2014, an increase of 16 percent
• These businesses equaled 29 percent of total consolidated revenue compared to 27 percent during the same period last year
• First quarter 2015 earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $6.6 million compared to EBITDA in the first quarter of 2014 of $7.9  million, impacted by higher than expected healthcare and casualty claims

During the first quarter, ArcBest’s emerging, non-asset-based businesses continued to experience revenue growth highlighted by strong, double digit increases at ABF Logistics and ABF Moving. ABF Logistics experienced significant growth in the freight brokerage business associated with additional shipments from new and existing customers and the expanding benefits of offering logistics services to customers across the ArcBest enterprise of companies. As previously discussed, continued investments in personnel and resources needed to drive future growth are not yet fully contributing at margin levels expected when the business  matures.

Compared to strong revenue growth last year, Panther had a moderate first quarter revenue increase on 16 percent growth in shipments, primarily driven by new customers. Gross profit margins were impacted by demand softness and lower rates in the expedited market resulting from more readily available truckload capacity versus last year, and a shorter length of haul on new Panther business. The quarter’s results were impacted by unfavorable experience in casualty claims and higher than expected healthcare costs, which in total increased Panther’s operating costs versus the same period last year by $1.5 million. Finally, costs associated with investments in additional sales personnel and infrastructure for future business growth also reduced first quarter 2015 profitability.

Conference Call

ArcBest Corporation will host a conference call with company executives to discuss the 2015 first quarter results. The call will be today, Monday, May 4, at 9:30 a.m. ET (8:30 a.m. CT). Interested parties are invited to listen by calling (800) 734-4208. Following the call, a recorded playback will be available through the end of the day on June 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 21766025. The conference call and playback can also be accessed, through June 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 March 31, 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.

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 March 31

          2015                                 2014         

(Unaudited)

($ thousands, except share and per share data)

CASH DIVIDENDS DECLARED PER COMMON SHARE                                            $                 0.06               $                 0.03

ARCBEST CORPORATION CONSOLIDATED BALANCE SHEETS

March 31

December 31

ASSETS

          2015                                  2014          

(Unaudited)                            Note

($ thousands, except share data)

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                                                                                                                     

Three Months Ended March 31

         2015                              2014          

(Unaudited)

($ thousands)

OPERATING ACTIVITIES

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES                                                                                    

Three Months Ended March 31

                   2015                                            2014                 

(Unaudited)

($ thousands, except percentages)

Freight Transportation (ABF Freight)                                                                                                                                           

Operating Income (Loss) ($) Operating Ratio (% of revenues)

Three Months Ended March 31

                   2015                                            2014                 

(Unaudited)

($ thousands, except per share data)

ArcBest Corporation – Consolidated                                                                                                                                            

Net Income (Loss)

(1) Consolidated pension settlement expense totaled $1.1 million (pre-tax) and $3.7 million (pre-tax) for the three months ended March 31, 2015 and 2014, respectively.

ARCBEST CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES – Continued                                                              

Three Months Ended March 31

        2015                        2014        

(Unaudited)

($ thousands)

Adjusted Earnings Before Interest, Taxes, Depreciation,

   and Amortization (Adjusted EBITDA)                                                                                                                                         

ArcBest Corporation – Consolidated

1. Consolidated pension settlement expense totaled $1.1 million (pre-tax) and $3.7 million (pre-tax) for the three months ended March 31, 2015 and 2014, respectively.

Three Months Ended March 31

2015

Three Months Ended March 31

2014

Operating

Depreciation

Operating Depreciation

Income (Loss)

and

Amortization  EBITDA

Income (Loss)

and

Amortization  EBITDA

Earnings Before Interest, Taxes, Depreciation,

(Unaudited)

($ thousands)

   and Amortization (EBITDA)                                                                                                                                                          

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. 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 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 generally accepted accounting principles. Other companies may calculate EBITDA differently, and therefore the Company'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 March 31

                   2015                                             2014                  

(Unaudited)

($ thousands)

REVENUES

1. Pension settlement expense totaled $1.1 million (pre-tax) and $3.7 million (pre-tax) on a consolidated basis for the three months ended March 31, 2015 and 2014, respectively. For the three months ended March 31, 2015, pre-tax pension settlement expense of $0.8 million was reported by ABF Freight, $0.2 million was reported in Other and eliminations, and $0.1 million was reported by the non-asset-based segments. For the three months ended March 31, 2014, pre-tax pension settlement expense of $2.9   million was reported by ABF Freight,

$0.7 million was reported in Other and eliminations, and $0.1 million was reported by the non-asset-based 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 March 31