ABF | Arkansas Best Q1 loss wider than expected

R-14Driver

TB Legend
Credits
0
16gwmqd.jpg


Q1 loss $0.85/shr vs est. $0.63/shr
Revenue up 6 percent

April 23 (Reuters) - Less-than-truckload carrier Arkansas Best Corp (ABFS.O) posted a wider-than-expected quarterly loss as an increase in tonnage failed to offset weak pricing.

Its first-quarter net loss was $21.4 million, or 85 cents a share, compared with $18.2 million, or 73 cents a share, a year ago.

Revenue rose 6 percent to $359.9 million and tonnage per day at its largest unit, ABF Freight, increased 3.3 percent.

Analysts were expecting a loss of 63 cents a share on revenue of $353.5 million, according to Thomson Reuters I/B/E/S.

"In order for ABF's operating results to improve in a meaningful way, we need further increases in freight demand, strong improvements in pricing and the positive financial impact of wage concessions," said CEO Judy McReynolds in a statement..................
 
[quote author=R-14Driver link=topic=79510.msg823995#msg823995 date=1272028595]
Q1 loss $0.85/shr vs est. $0.63/shr

"In order for ABF's operating results to improve in a meaningful way, we need further increases in freight demand, strong improvements in pricing and the positive financial impact of wage concessions," said CEO Judy McReynolds in a statement..................
[/quote]

WOW what a surprise, don't worry once they get the concession passed they can stop cooking the books and return to profit.
 
FORT SMITH, Ark. (AP) -- Trucking company Arkansas Best Corp. on Friday reported a wider first-quarter loss due to still-weak freight levels, low pricing and higher costs.

The company posted a loss of $21.3 million, or 85 cents per share, compared with a year-earlier loss of $18.2 million, or 73 cents per share.

Revenue rose 6 percent to $359.9 million from $339.7 million in the first quarter of 2009 as tonnage increased at its ABF Freight unit. But costs also climbed to $395.2 million from $368.3 million last ............

http://finance.yahoo.com/news/Arkansas-Best-1Q-loss-widens-apf-2188161327.html?x=0&.v=1
 
I'm so surprised at this too! What will we do? They must think that we all are dumber than dirt!
 
UPDATE 3-Arkansas Best Q1 loss wider than expected

......... Arkansas Best, which lost $127.8 million in 2009, has slashed quarterly dividend 80 percent to 3 cents a share, cut over 3,200 jobs and eliminated salary increases to save costs.Another LTL carrier YRC Worldwide (YRCW.O), struggling to avoid bankruptcy, had asked for similar wage cuts from its Teamsters union.On the call, Arkansas Best said it continues to focus on adjusting its cost structure - it cut about 200 jobs during the quarter.The company also said results are a sign it needs a consistently higher level of properly priced freight to fully leverage operational resources and return to profitability.Its first-quarter net loss was $21.4 million, or 85 cents a share, compared with $18.2 million, or 73 cents a share, a year ago. Analysts were expecting a loss of 63 cents a share,........

http://www.reuters.com/article/idCNSGE63M0FK20100423?rpc=44
 
Arkansas Best Corp. Enters Red
If a research analyst's projections are correct, then the rest of Arkansas Best's quarters in 2010 may look like the first one - negative.That's even taking into account possible wage concessions of 15 percent from its work force that Judy McReynolds, president and CEO of Fort Smith-based Arkansas Best Corp., said Friday would have saved the company about $75 million in 2009."The wage concessions are highly important to Arkansas Best and also ensuring the livelihood of their employees," said Jack Waldo, Stephens Inc. research analyst. "If that comes through, it'll set the foundation for them to return to profitability. We expect that to happen sometime in 2011. They have an outside shot, but our model doesn't have them in the black until then."Stephens, a Little Rock-based investment banking and securities firm, has provided financial and other services to Arkansas Best within the past year and expects to receive or seek compensation for investment banking services in the next three months.ABF Freight System Inc., a less-than-truckload carrier, is the largest subsidiary of the company..................

http://www.swtimes.com/business/article_2d2bd714-4fae-11df-b7af-001cc4c002e0.html
 
Something is not right with the numbers, as they have 20 million more in biz and losses just keep going up. These is a weak market and they have more money and spinning it somewhere. It could be that new U-PACK service they start.Money going from the right pocket to the left pocket.
 
ABF is not in financial trouble, I repeat ABF is not in financial trouble. They had a whole year to get the books in order after they walked out on the teamsters because they didn't want to open the books.Go back a year and just think about all the needless spending that they did and the poor management decisions that were made.We all know that they just don't operate that poorly.Why do you think that Judy is in there now...for her looks? Which isn't that bad by the way.
 
Which is exactly what scares me JaWM,why has the IBT taken their side?What was threatened? what was promised? I am embarrassed for my leaders the way they have groveled for us to take this cut.It seems as if their job is on the line with this vote.I'm not for going against our Union but it seems to me that we may need a lawyer here,somethings not right!
 
[quote author=Double barrel link=topic=79510.msg824364#msg824364 date=1272135296]
Something is not right with the numbers, as they have 20 million more in biz and losses just keep going up. These is a weak market and they have more money and spinning it somewhere. It could be that new U-PACK service they start.Money going from the right pocket to the left pocket.
[/quote]

It's not uncommon at all... the reason for more revenue but less profit is because the revenue their gaining is so highly discounted they are losing money on it. It's simply that there is too much capacity and not enough demand. No book-cooking involved, simple economics.

More revenue doesn't always mean more profit. But it definitely means more expense. Currently, the gain in expense is higher than the gain in revenue for that last few points of business.

Just my view. No, I'm not managment.
 
[quote author=JustAWorkingMan link=topic=79510.msg824373#msg824373 date=1272137683]
ABF is not in financial trouble, I repeat ABF is not in financial trouble. They had a whole year to get the books in order after they walked out on the teamsters because they didn't want to open the books.Go back a year and just think about all the needless spending that they did and the poor management decisions that were made.We all know that they just don't operate that poorly.Why do you think that Judy is in there now...for her looks? Which isn't that bad by the way.
[/quote]

I'm too lazy to look back that far... what exactly are you talking about? I know they purchased some trailers and tractors this last year, but other than that... I'm not aware of any needless spending or poor management decisions (at least, none that we'd be privy to)... heck, I've been using the same POS computer for 4 years because of restricted spending.

I'm not trying to start an argument, but you guys know I trust the company I work for... otherwise I wouldn't work for them. If they're really doing these things, I want to know, and I want more than baseless rehashes of comments other people made, etc.
 
[quote author=ScifiFri link=topic=79510.msg825278#msg825278 date=1272438448]
[quote author=JustAWorkingMan link=topic=79510.msg824373#msg824373 date=1272137683]
ABF is not in financial trouble, I repeat ABF is not in financial trouble. They had a whole year to get the books in order after they walked out on the teamsters because they didn't want to open the books.Go back a year and just think about all the needless spending that they did and the poor management decisions that were made.We all know that they just don't operate that poorly.Why do you think that Judy is in there now...for her looks? Which isn't that bad by the way.
[/quote]

I'm too lazy to look back that far... what exactly are you talking about? I know they purchased some trailers and tractors this last year, but other than that... I'm not aware of any needless spending or poor management decisions (at least, none that we'd be privy to)... heck, I've been using the same POS computer for 4 years because of restricted spending.

I'm not trying to start an argument, but you guys know I trust the company I work for... otherwise I wouldn't work for them. If they're really doing these things, I want to know, and I want more than baseless rehashes of comments other people made, etc.
[/quote]


I'll first start out with the credit agreement which Muler had presented. He knows more about the SEC filings than I do and he could go on and on about the financial aspect:

NOTE E — CREDIT AGREEMENT
The Company has a revolving credit agreement (the “Credit Agreement”) dated May 4, 2007, with a syndicate of financial institutions. The Credit Agreement, which has a maturity date of May 4, 2012, provides for up to $325.0 million of revolving credit loans (including a $150.0 million sublimit for letters of credit). The Credit Agreement contains various customary covenants which limit, among other things, indebtedness and dispositions of assets and which require the Company to maintain compliance with certain quarterly financial ratios. As of June 30, 2009, the Company was in compliance with the covenants. As of June 30, 2009 and December 31, 2008, there were outstanding letters of credit issued of $51.5 million and $50.9 million, respectively, under the Credit Agreement and there were no outstanding revolver advances. The Company’s borrowing ability under the Credit Agreement is restricted by performance covenants, specifically the leverage ratio that limits total outstanding indebtedness to 3.0 times the Company’s trailing twelve months earnings before interest, taxes, depreciation and amortization, as defined in the Credit Agreement. Due to this limitation, total unused borrowing capacity was approximately $125 million as of June 30, 2009.
The Credit Agreement allows the Company to request extensions of the maturity date for a period not to exceed two years, subject to approval of a majority of the participating financial institutions. The Credit Agreement also allows the Company to request an increase in the amount of revolving credit loans of up to $200.0 million to an aggregate amount of $525.0 million, to the extent commitments are received from participating lenders. The Credit Agreement requires the payment of a utilization fee if the borrowings under the Credit Agreement exceed 50% of the facility amount. Interest rates under the agreement are at variable rates as defined by the Credit Agreement. The Credit Agreement contains a pricing grid, based on the Company’s senior debt ratings, that determines its interest rate, facility fees, utilization fees and letter of credit fees. The Company’s senior unsecured debt rating of BBB+ and outlook by Standard & Poor’s Ratings Services are on watch with negative implications and its senior unsecured debt rating of Baa2 and outlook by Moody’s Investors Service, Inc. are under review for possible downgrade.

[ftp=ftp://moneycentral.msn.com/investor/sec/filing.asp?Symbol=ABFS]http://moneycentral.msn.com/investor/sec/filing.asp?Symbol=ABFS[/ftp]


Now, my input:
If you're halfway intelligent, really look at those reports and see what conclusion is. Or,are you only trying make everyone think that you know all about the business aspect of things?
I don't know if you work at a satellite terminal or a distribution center but my bet is that you are out of a satellite terminal. If you would work out of a distribution center, you wouldn't ask this. Just ask ANY city driver or dockman about an idiotic thing that ABF management has done in the last year and they will come up with many. If not, if not I will name many when I have more time.
Before I go, I have to say, if you trust ABF to tell you the truth about financial matters, then you are really naive or don't know the company that you work for very well. You must really believe that crap about us being one big ABF family bullshit.They blow a little smoke up you ass about how good are employees are and you believe them. You just keep right on believing them.
Ask them about what happened to the UPack revenue since last Oct. Not the business,the revenue from it.It now shows up as a profit for moving solutions, not ABF. It does not show up on ABF's operating ratio no more. I can go on and on but I have to go. All that you have to to is get off your ass and do some research for yourself and just not take as fact to what they put in front of your face to read.
Ask yourself another question; Why did management walk out on discussions, I mean they actually walked out, last year because they would not open their books? Now, a year later, they have no problem showing and even telling the media all about their books.For gods sake....think!!!!!!
 
The stuff you posted looks like the terms to a credit agreement... not sure if that's just to point out that they have plenty of credit available to them or if it's a bad decision in your opinion... I'm not a finance guy so I can't comment on that.

I work in the GO... not in management, as a worker bee, fyi.

I do agree about the U-Pack thing... not ALL of the profit is shown under U-Pack, from my understanding, ABF is treating U-Pack like a 3rd party shipper now... so U-Pack essentially purchases shipping services from ABF just like any other customer would, ABF bills them and they pay the bills. Hopefully we profit from that! In this setup, the profit for the part of the process attributed to anything other than pickup and delivery of the container, so yah, I'd agree it's weird that they'd pull that part of it out, as that's probably where the money is. I was talking to a friend about this and after the conversation, I definitely think there's some accoutning stuff going on behind the scenes with U-Pack. But I don't know if I'd call this a poor management decision... actually, from their perspective it was probably pretty ingenious. But I do see it opening the door for things you guys won't like.

I guess something I'd need to look into is if bonuses at the GO are based on the ABC OR or the ABF OR? The U-Pack stuff would HAVE to show up under the corporate family at least. Even with U-Pack being pulled out of ABF, ABF still makes up for over 95% of the corporate revenue... so I don't think we're missing much... that's not to say that it won't be a much higher % later, but I dunno how much it's really changing anything now.

I'm just thinking about all this because I do trust the company I work for... I want to understand why they do these things and how they affect me long term... I'm not necessarily trying to defend the company, I'm more or less trying to see if I can get benefit of the doubt, as I don't have years of history to base a negative view of the company, as some people do, I guess.

Rock
 
Rock: Did you even look at the SEC filings? You don't have to be a finance guy to understand the basics of it. Sure, you and I won't fully comprehend all of its aspects but it gives one a good sense of what's happening.
The company still has a 184 million cash reserve and then takes on a 26 million dollar debt. Why? I can speculate why but that then would be my own opinion. Ask the company and see what they tell you.In the quarterly report, Kemp says that they lost 44% of the cash reserve and goes on to say that they are now in debt to the tune of 26 million dollars. Making one believe that we are broke and now in debt.He did not lie but,you must admit, that was pretty deceitful.
The whole thing about UPack is that it knocks off 4 or 5 points off on on our OR.That is an estimate of course.That shows up for ABC but not ABF. This wage crap is based all around our operating ratio. The economy could turn around next mont and we would still be locked in a wage concession for 3 years.That's 3 years!!!!!
As far as trust... In this day and age,when it comes to money,just how many people do you REALLY trust??????
 
Top