ArcBest Corporation Announces Third Quarter 2014 Results

FOR IMMEDIATE RELEASE

Investor Relations Contact: David Humphrey
Title: Vice President – Investor Relations
Email: dhumphrey@arcb.com
Phone: 479-785-6200

Media Contact: Kathy Fieweger
Title: Chief Marketing Officer
Email: kfieweger@arcb.com
Phone: 479-719-4358

ArcBest Corporation Announces Third Quarter 2014 Results

Third quarter 2014 net income increased 40 percent from the previous year to $19.6 million and $0.72 per share or $20.1 million and $0.74 per share, excluding pension settlement charges.
Increased business levels at ABF Freight^SM contributed to higher revenues and improved profitability
ArcBest’s emerging businesses increased third quarter revenue 23 percent
Panther continued to capitalize on a strong market demand for its services as EBITDA increased 22 percent

FORT SMITH Arkansas, November 3, 2014 – ArcBest Corporation (Nasdaq: ARCB), today reported improved third quarter 2014 results reflecting business growth at ABF Freight and all of its emerging companies, including an ongoing strong performance at Panther Premium Logistics.

ArcBest’s third quarter 2014 revenue was $711.3 million compared to revenue of $623.4 million in the third quarter of 2013, an increase of 14 percent. Third quarter net income was $19.6 million and $0.72 per share, or $20.1 million and $0.74 per share excluding pension settlement charges, compared to third quarter 2013 net income of $14.0 million, and $0.52 per share, or $14.3 million and $0.53 per share excluding pension settlement charges and tax items.

At ABF Freight, third quarter revenue was $523.4 million, an 11 percent increase over $471.0 million in the same period last year. Operating income increased to $24.7 million from $17.2 million in third quarter 2013. ABF Freight’s operating ratio was 95.3 percent versus 96.3 percent in the year-ago period.

On a combined basis, revenue for ArcBest’s emerging, non-asset-based businesses increased by 23 percent. During the quarter, these businesses represented 28 percent of ArcBest’s total consolidated revenue, an increase compared to the first half of this year and a higher percentage than in all of 2013. Third quarter 2014 earnings before interest, taxes, depreciation and amortization (“EBITDA”) at the non-asset-based businesses was $13.0 million, an increase of 35 percent compared to EBITDA of $9.7 million in the third quarter of 2013.

“We continued to see strong demand for services from the ArcBest companies in the third quarter and are pleased that our commitment to provide customers easier access to our supply chain solutions is being well received,” said Judy R. McReynolds, ArcBest President and Chief Executive Officer. “Panther, in particular, reported one of its strongest quarters ever, contributing over $4 million of operating income and $7 million of EBITDA. Year-to-date through September, Panther’s EBITDA was more than $20 million.”

McReynolds noted that ABF Logistics^sm and ABF Moving^sm also experienced strong gains in operating profit for the quarter and that ABF Freight continues to focus on improving the services offered to its customers, implementing important operational initiatives, and working toward increased success in the future.

ABF Freight

During the quarter, ABF Freight benefited from an LTL freight environment that was positively impacted by improving economic trends, tighter industry capacity amid driver shortages, and additional LTL shipments associated with service and demand constraints in other transportation modes. Though new customers were added, the significant growth ABF Freight experienced during the quarter was strongly impacted by additional shipments from existing customers. Because more freight was moving through the system, costs were incurred to maintain customer service. These higher business levels, while beneficial for long-term growth, require additional resources in the short term.

As experienced throughout the first half of the year, the pricing environment was positive, and ABF Freight was able to obtain price increases needed to improve operating margins. Third quarter total revenue per hundredweight increased by 3.0 percent over last year and improved 2.1 percent versus this year’s second quarter. During the quarter, increases in the amount of ABF Freight’s LTL shipments combined with fewer truckload-rated shipments affected the total price increases ABF secured. As previously announced, ABF Freight implemented a 5.4 percent increase in general rates and charges effective today. This increase, the second GRI implemented during the year, impacts approximately 35 percent of ABF Freight’s business.

Though showing some improvement relative to the second quarter, the productivity of inexperienced dock employees hired as a result of historically high business growth and the associated increase of labor hours continued to impact ABF Freight’s operational results during the third quarter. Actions are actively being taken to drive productivity improvements and to reduce total labor hours to match available freight levels. In order to reduce costs and improve the transportation services offered to our customers, returning productivity to historical levels is an important priority for ABF Freight’s management team.

ABF Freight President Retires

In mid-October, ABF Freight president and CEO Roy Slagle retired after 37 years with the company. “During his long career with ABF Freight, Roy Slagle provided dedicated service and expertise in most every area of the company,” said McReynolds. “Roy was a key contributor to ABF Freight’s success and positive reputation in the transportation industry. I wish Roy well in his retirement and continued success in the future.”

ABF Freight’s new president is Tim Thorne, a 24-year veteran of the company. “Tim has a strong background in operations and field management at ABF Freight. With his approach to leadership and pursuit of excellence in the customer experience, ABF Freight is well positioned to succeed going forward,” McReynolds added.

Emerging, Non-Asset-Based Businesses

During the third quarter, ArcBest’s emerging businesses all generated revenue growth compared to the same period last year, highlighted by solid revenue and margin increases at Panther Premium Logistics, ABF Logistics and ABF Moving.

The improving economy and significant growth at key customer accounts contributed to Panther’s third quarter revenue increase of 26 percent and an operating income increase of 33 percent over the same period last year. Panther continues to experience strong demand for its services across all of the industry markets it serves. Increased business from several new customer accounts added during the year is also contributing to the growth in revenue and profit.

Third quarter revenues at FleetNet America^® increased by 8 percent over the previous year while operating profit was moderately lower. FleetNet’s revenue growth benefited from business with several new fleet maintenance customers and improved pricing yield on existing accounts despite the effect of mild summer weather on the typical seasonal demand for emergency roadside services. The operating profit comparison to the prior year was influenced by investments to support future business growth.

Consistent with the first half of the year, ABF Logistics increased third quarter revenue by 42 percent compared to the same period of 2013, primarily due to shipment growth and higher revenue per load in its truckload brokerage division. Operating profit in the third quarter was the strongest of this year, with growth of 96 percent over the same period in 2013.

ABF Moving experienced a 16 percent revenue increase during the quarter and improved its third quarter operating profit by 80 percent. ABF Moving’s increased ability to service seasonal summer demand for household goods moving services combined with improved cost management were positive factors in the quarter.

Capital Structure and Financial Resources

ArcBest’s financial strength has provided stability through previously challenging economic periods while offering options in the ongoing pursuit of available growth opportunities. As recently announced, ArcBest’s board of directors approved an increase in the quarterly cash dividend to $0.06 per share from the previous amount of $0.03 per share. “We are pleased to make this positive change for shareholders. In order to achieve our goals for the future, we continue to be well positioned to take advantage of acquisition and organic investment opportunities as they arise while, at the same time, improving shareholder returns,” said McReynolds.

Conference Call

ArcBest Corporation will host a conference call with company executives to discuss the 2014 third quarter results. The call will be today, Monday, November 3, at 9:30 a.m. ET (8:30 a.m. CT). Interested parties are invited to listen by calling (800) 896-0105. Following the call, a recorded playback will be available through the end of the day on December 4, 2014. To listen to the playback, dial (800) 633-8284 or (402) 977-9140 (for international callers). The conference call ID for the playback is 21735598. The conference call and playback can also be accessed, through December 4, 2014, on ArcBest’s website at arcb.com.

About ArcBest

ArcBest Corporation^sm (Nasdaq: ARCB) solves complex logistics and transportation challenges. Our companies and brands – ABF Freight^sm, ABF Logistics^sm, Panther Premium Logistics^sm, 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 Corporation^sm. The Skill & The Will^sm.

Forward-Looking Statements

Certain statements and information in this press release concerning results for the three and nine months ended September 30, 2014 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: 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; 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; 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 operation of our business or the use of information technology platforms in our business; 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; governmental regulations and policies, including environmental laws and 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; 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 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 Corporation^sm and its subsidiary companies.

ARCBEST CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS

			Three Months Ended September 30																				Nine Months Ended September 30

			2014							2013													2014											2013
			(Unaudited)
			($ thousands, except share and per share data)

REVENUES			$	711,295						$		623,414											$		1,947,845								$					1,720,999

OPERATING EXPENSES				678,354								602,912													1,896,655													1,715,431

OPERATING INCOME				32,941								20,502													51,190													5,568

OTHER INCOME (COSTS)
Interest and dividend income				215								167													600													499
Interest and other related financing costs				(834)								(993)													(2,367)													(3,279)
Other, net				234								1,328													1,549													2,778
				(385)								502													(218)													(2)

INCOME BEFORE INCOME TAXES				32,556								21,004													50,972													5,566

INCOME TAX PROVISION				12,938								7,022													19,339													101

NET INCOME			$	19,618						$		13,982											$		31,633								$					5,465

EARNINGS PER COMMON SHARE⁽¹⁾
Basic			$	0.72						$		0.52											$		1.16								$					0.20
Diluted			$	0.72						$		0.52											$		1.16								$					0.20

AVERAGE COMMON SHARES OUTSTANDING
Basic				26,054,678								25,736,810													25,979,555													25,690,184
Diluted				26,054,678								25,736,810													25,980,008													25,690,184

CASH DIVIDENDS DECLARED PER COMMON SHARE			$	0.03						$		0.03											$		0.09								$					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	$			19,618						$		13,982									$		31,633										$					5,465

	EFFECT OF UNVESTED RESTRICTED STOCK AWARDS				(981)								(585)											(1,591)															(243)

	ADJUSTED NET INCOME FOR CALCULATING EARNINGS PER COMMON SHARE	$			18,637						$		13,397									$		30,042										$					5,222

ARCBEST CORPORATION CONSOLIDATED BALANCE SHEETS
																		September 30 2014													December 31 2013
																		(Unaudited)													Note
																		($ thousands, except share data)
ASSETS

CURRENT ASSETS
Cash and cash equivalents																		$		159,382											$				105,354
Short-term investments																				43,858															35,906
Restricted cash, cash equivalents, and short-term investments																				1,385															1,902
Accounts receivable, less allowances (2014 – $5,613; 2013 – $4,533)																				243,099															202,540
Other accounts receivable, less allowances (2014 – $1,676; 2013 – $1,422)																				6,144															7,272
Prepaid expenses																				17,542															19,016
Deferred income taxes																				43,352															37,482
Prepaid and refundable income taxes																				2,262															2,061
Other																				7,489															6,952
TOTAL CURRENT ASSETS																				524,513															418,485

PROPERTY, PLANT AND EQUIPMENT
Land and structures																				250,816															245,805
Revenue equipment																				629,791															589,902
Service, office, and other equipment																				128,645															124,303
Software																				113,770															110,998
Leasehold improvements																				23,941															23,582
																				1,146,963															1,094,590
Less allowances for depreciation and amortization																				735,090															700,193
																				411,873															394,397
GOODWILL																				77,078															76,448
INTANGIBLE ASSETS, net																				73,919															75,387
OTHER ASSETS																				53,184															52,609

																		$		1,140,567											$				1,017,326

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Bank overdraft and drafts payable																		$		15,914											$				13,609
Accounts payable																				135,022															89,091
Income taxes payable																				16,809															1,782
Accrued expenses																				187,682															173,622
Current portion of long-term debt																				40,088															31,513
TOTAL CURRENT LIABILITIES																				395,515															309,617

LONG-TERM DEBT, less current portion																				85,735															81,332
PENSION AND POSTRETIREMENT LIABILITIES																				37,272															26,847
OTHER LIABILITIES																				14,482															15,041
DEFERRED INCOME TAXES																				56,481															64,028

STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value, authorized 70,000,000 shares; issued 2014: 27,697,264 shares; 2013: 27,507,241 shares																				277															275
Additional paid-in capital																				301,365															296,133
Retained earnings																				325,910															296,735
Treasury stock, at cost, 1,677,932 shares																				(57,770)															(57,770)
Accumulated other comprehensive loss																				(18,700)															(14,912)
TOTAL STOCKHOLDERS’ EQUITY																				551,082															520,461

																		$		1,140,567											$				1,017,326
Note: The balance sheet at December 31, 2013 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
																			2014											2013
																			(Unaudited)
																			($ thousands)
OPERATING ACTIVITIES
Net income																			$		31,633									$		5,465
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization																					60,613											64,439
Amortization of intangibles																					3,242											3,130
Pension settlement expense																					5,405											1,834
Share-based compensation expense																					5,362											3,579
Provision for losses on accounts receivable																					1,647											1,658
Deferred income tax benefit																					(7,409)											(5,770)
Gain on sale of property and equipment																					(597)											(486)
Changes in operating assets and liabilities:
Receivables																					(41,180)											(36,513)
Prepaid expenses																					1,477											1,768
Other assets																					(1,081)											(1,557)
Income taxes																					9,981											6,868
Accounts payable, accrued expenses, and other liabilities⁽¹⁾																					49,108											21,836
NET CASH PROVIDED BY OPERATING ACTIVITIES																					118,201											66,251

INVESTING ACTIVITIES
Purchases of property, plant and equipment, net of financings																					(23,756)											(13,078)
Proceeds from sale of property and equipment																					2,701											1,857
Purchases of short-term investments																					(25,347)											(21,230)
Proceeds from sale of short-term investments																					17,478											21,713
Business acquisition, net of cash acquired																					(2,647)											(4,146)
Capitalization of internally developed software																					(6,016)											(5,959)
NET CASH USED IN INVESTING ACTIVITIES																					(37,587)											(20,843)

FINANCING ACTIVITIES
Payments on long-term debt																					(28,024)											(31,775)
Net change in bank overdraft and other																					2,304											(2,002)
Net change in restricted cash, cash equivalents, and short-term investments																					517											7,757
Deferred financing costs																					(61)											(61)
Payment of common stock dividends																					(2,458)											(2,418)
Proceeds from the exercise of stock options																					1,136											–
NET CASH USED IN FINANCING ACTIVITIES																					(26,586)											(28,499)

NET INCREASE IN CASH AND CASH EQUIVALENTS																					54,028											16,909
Cash and cash equivalents at beginning of period																					105,354											90,702
CASH AND CASH EQUIVALENTS AT END OF PERIOD																			$		159,382									$		107,611

NONCASH INVESTING ACTIVITIES
Accruals for equipment received																			$		9,632									$		264
Equipment financed																			$		41,002									$		36
(1) 2013 includes $17.8 million of cash contributions to the Company’s nonunion defined benefit pension plan.

ARCBEST CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

						Three Months Ended September 30																				Nine Months Ended September 30

						2014									2013											2014										2013
						(Unaudited)
						($ thousands, except per share data)
ARCBEST CORPORATION – CONSOLIDATED

Net Income
Amounts on a GAAP basis							$		19,618						$		13,982											$	31,633								$			5,465
Tax benefits and credits⁽¹⁾									–								(838)												(701)											(2,474)
Pension settlement expense, after-tax⁽²⁾									492								1,121												3,303											1,121
Non-GAAP amounts							$		20,110						$		14,265											$	34,235								$			4,112

Diluted Earnings Per Share
Amounts on a GAAP basis							$		0.72						$		0.52											$	1.16								$			0.20
Tax benefits and credits⁽¹⁾									–								(0.03)												(0.03)											(0.09)
Pension settlement expense, after-tax⁽²⁾									0.02								0.04												0.13											0.04
Non-GAAP amounts							$		0.74						$		0.53											$	1.26								$			0.15

ARCBEST CORPORATION – CONSOLIDATED

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
Net income						$		19,618						$		13,982											$		31,633								$			5,465
Interest and other related financing costs								834								993													2,367											3,279
Income tax provision								12,938								7,022													19,339											101
Depreciation and amortization								22,177								21,569													63,855											67,569
Amortization of share-based compensation								1,694								1,095													5,362											3,579
Amortization of actuarial losses of benefit plans and pension settlement expense⁽²⁾								1,480								2,994													7,373											8,818
						$		58,741						$		47,655											$		129,929								$			88,811

Tax adjustments are related to decreases in the deferred tax asset valuation allowances and, for the 2013 periods, alternative fuel tax credits. The three and nine months ended September 30, 2014 includes pension settlement expense of $0.8 million (pre-tax) and $5.4 million (pre-tax), respectively. The three and nine months ended September 30, 2013 include pension settlement expense of $1.8 million (pre-tax).
Non-GAAP Financial Measures. 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 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 may not be comparable to similarly titled measures of other companies.

ARCBEST CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

	Three Months Ended September 30 2014																							Three Months Ended September 30 2013

	(Unaudited)
	($ thousands)
	Operating Income							Depreciation and Amortization					EBITDA													Operating Income					Depreciation and Amortization								EBITDA

Premium Logistics (Panther)⁽¹⁾	$			4,119				$		2,891			$					7,010								$		3,102			$		2,665						$		5,767
Emergency & Preventative Maintenance (FleetNet)				739						266								1,005										845					138								983
Transportation Management (ABF Logistics)				1,060						256								1,316										541					171								712
Household Goods Moving Services (ABF Moving)				3,309						349								3,658										1,835					354								2,189
Total non-asset-based segments	$			9,227				$		3,762			$					12,989								$		6,323			$		3,328						$		9,651

	Nine Months Ended September 30 2014																									Nine Months Ended September 30 2013

	(Unaudited)
	($ thousands)
	Operating Income							Depreciation and Amortization						EBITDA													Operating Income				Depreciation and Amortization							EBITDA


Premium Logistics (Panther)⁽¹⁾	$				11,841			$		8,465				$					20,306								$		3,745		$	7,809						$		11,554
Emergency & Preventative Maintenance (FleetNet)					2,840					677									3,517										2,367			400								2,767
Transportation Management (ABF Logistics)					2,449					725									3,174										1,564			449								2,013
Household Goods Moving Services (ABF Moving)					3,091					1,043									4,134										2,552			880								3,432
Total non-asset-based segments	$				20,221			$		10,910				$					31,131								$		10,228		$	9,538						$		19,766

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

		Three Months Ended September 30																			Nine Months Ended September 30

		2014									2013										2014														2013
		(Unaudited) ($ thousands, except percentages)
REVENUES
Freight Transportation (ABF Freight)		$				523,351						$					471,031					$			1,445,079										$		1,325,062

Premium Logistics (Panther)						82,784											65,851								236,435												179,533
Emergency & Preventative Maintenance (FleetNet)						40,117											37,047								120,123												102,504
Transportation Management (ABF Logistics)						40,672											28,669								105,882												74,554
Household Goods Moving Services (ABF Moving)						35,338											30,530								72,943												65,358
Total non-asset-based segments						198,911											162,097								535,383												421,949

Other and eliminations						(10,967)											(9,714)								(32,617)												(26,012)
Total consolidated revenues		$				711,295						$					623,414					$			1,947,845										$		1,720,999

OPERATING EXPENSES
Freight Transportation (ABF Freight)
Salaries, wages, and benefits			$				294,826		56.3%			$				276,683				58.7%			$				835,354			57.8%					$		816,502					61.6%
Fuel, supplies, and expenses							91,406		17.5							84,714				18.0							275,473			19.1							250,486					18.9
Operating taxes and licenses							11,262		2.2							10,864				2.3							34,525			2.4							32,793					2.5
Insurance							6,498		1.2							6,858				1.5							17,859			1.2							17,410					1.3
Communications and utilities							3,768		0.7							3,724				0.8							11,741			0.8							11,535					0.9
Depreciation and amortization							17,746		3.4							17,621				3.7							50,925			3.5							56,162					4.2
Rents and purchased transportation							69,985		13.4							50,507				10.7							172,954			12.0							133,236					10.1
Gain on sale of property and equipment							(333)		(0.1)							(93)				–							(576)			–							(487)					–
Pension settlement expense⁽¹⁾							627		0.1							1,612				0.3							4,224			0.3							1,612					0.1
Other							2,829		0.6							1,325				0.3							7,211			0.5							5,649					0.4
							498,614		95.3%							453,815				96.3%							1,409,690			97.6%							1,324,898					100.00%

Premium Logistics (Panther)
Purchased transportation			$				61,298		74.0%			$				50,220				76.3%			$				176,057			74.5%					$		137,489					76.6%
Depreciation and amortization⁽²⁾							2,891		3.5							2,665				4.0							8,465			3.6							7,809					4.3
Salaries, benefits, insurance, and other							14,476		17.5							9,864				15.0							40,072			16.9							30,490					17.0
							78,665		95.0%							62,749				95.3%							224,594			95.0%							175,788					97.9%

Emergency & Preventative Maintenance (FleetNet)			$				39,378					$				36,202							$				117,283								$		100,137
Transportation Management (ABF Logistics)							39,612									28,128											103,433										72,990
Household Goods Moving Services (ABF Moving)							32,029									28,695											69,852										62,806
Total non-asset-based segments⁽¹⁾							189,684									155,774											515,162										411,721

Other and eliminations⁽¹⁾							(9,944)									(6,677)											(28,197)										(21,188)
Total consolidated operating expenses and costs⁽¹⁾			$				678,354					$				602,912							$				1,896,655								$		1,715,431

Pension settlement expense totaled $0.8 million (pre-tax) and $5.4 million (pre-tax) on a consolidated basis for the three and nine months ended September 30, 2014, respectively, and $1.8 million (pre-tax) for the three and nine months ended September 30, 2013, respectively. Of the total $5.4 million (pre-tax) pension settlement expense for the nine months ended September 30, 2014, $4.2 million was reported by ABF Freight, $1.1 million was reported in Other and eliminations, and $0.1 million was reported by the non-asset-based segments. Of the total $1.8 million (pre-tax) pension settlement expense for the nine months ended September 30, 2013, $1.5 million was reported by ABF Freight and $0.3 million was reported in Other and eliminations. 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 September 30																			Nine Months Ended September 30

		2014									2013										2014														2013
		(Unaudited) ($ thousands)
OPERATING INCOME
Freight Transportation (ABF Freight)		$					24,737				$				17,216								$				35,389							$		164

Premium Logistics (Panther)							4,119								3,102												11,841									3,745
Emergency & Preventative Maintenance (FleetNet)							739								845												2,840									2,367
Transportation Management (ABF Logistics)							1,060								541												2,449									1,564
Household Goods Moving Services (ABF Moving)							3,309								1,835												3,091									2,552
Total non-asset-based segments							9,227								6,323												20,221									10,228

Other and eliminations⁽¹⁾							(1,023)								(3,037)												(4,420)									(4,824)
Total consolidated operating income		$					32,941				$				20,502								$				51,190							$		5,568

Other and eliminations for 2013 includes a $1.4 million reserve adjustment related to workers’ compensation claims associated with an insolvent excess insurance carrier.

ARCBEST CORPORATION OPERATING STATISTICS

	Three Months Ended							Nine Months Ended
	September 30							September 30
	2014			2013			% Change	2014		2013		% Change
	(Unaudited)

Freight Transportation (ABF Freight)

Workdays	64.0			63.5				190.5		190.0

Billed Revenue⁽¹⁾ / CWT		$	29.53	$	28.67	3.0%		$	28.54	$	27.78	2.7%

Billed Revenue⁽¹⁾ / Shipment		$	389.70	$	390.44	(0.2)%		$	388.46	$	381.11	1.9%

Shipments			1,330,091		1,201,981	10.7%			3,725,093		3,488,337	6.8%

Shipments / Day			20,783		18,929	9.8%			19,554		18,360	6.5%

Tonnage (tons)			877,531		818,471	7.2%			2,535,235		2,393,055	5.9%

Tons / Day			13,711		12,889	6.4%			13,308		12,595	5.7%

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.

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ArcBest Corporation Announces Third Quarter 2014 Results

Welcome to ARCB.com,

Welcome to ARCB.com,