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Arkansas Best CEO Says Agreement With Teamasters Will Help 'Restore Profitability'


by Chris Bahn

Posted 5/21/2013 10:47 am

Updated 5 hours ago





Arkansas Best Corp. of Fort Smith has seen a 68 percent increase in its share price since reaching a tentative agreement with the Teamsters, President and CEO Judy R. McReynolds told shareholders Tuesday during the company's annual meeting.

Finalizing the five-year contract between Arkansas Best Freight, a subsidiary of Arkansas Best Corp. (Nasdaq: ABFS), and the union will be a key step in restoring "profitability of the company," McReynolds said during a presentation at the transportation firm's headquarters.

McReynolds said the Teamsters' "two-man committee" approved the operating agreement during a meeting Monday in Chicago.

Now approval is in the hands of ABF's 7,500 union employees. Ballots will be mailed to them on June 3 and a count is expected June 28.

The company's share price was at $9.83 on May 2, the day before a tentative agreement was reached. ABFS stock was valued at $17.74 on Monday and was at $18.87 by 10:30 a.m. Tuesday.

A slide during McReynold’s presentation described last year's unprofitability as "troubling and unacceptable." Arkansas Best reported a net loss of $7.7 million in 2012.



Arkansas Best expects the new contract to help contain operating expenses for the company, which had $2.2 billion in revenue for 2012. McReynolds outlined other areas for potential growth and highlighted an 82 percent growth for truck brokerage and management for the first quarter of 2013.

Executives also seen global supply chain services as a growth area, and the company is looking at the possibility of other "strategic" acquisitions like last year's purchase of Panther Expedited Services Inc.

A freeze in the pension plan for non-union employees is also supposed to help the company's bottom line. Arkansas Best announced the elimination, which won’t impact vested pensions, on Monday.

"I just want to thank all of the employees at the company for their energy and effort," McReynolds said. "It’s been tough. It's been a tough few years for us. We know the direction we're headed. We know how to get there."

Also on Tuesday, shareholders approved the appointment of nine directors to the ABFS board. All nine were approved by the vote and shareholders also offered support, though non-binding, of the proposed executive compensation plan for 2013.


Arkansas Business
 
Give us your money so we can waste it on buying little known companies with zero market share. EXCUSE ME........NO
 
RR3872 said:
< Back to Article Print

Arkansas Best CEO Says Agreement With Teamasters Will Help 'Restore Profitability'


by Chris Bahn

Posted 5/21/2013 10:47 am

Updated 5 hours ago





Arkansas Best Corp. of Fort Smith has seen a 68 percent increase in its share price since reaching a tentative agreement with the Teamsters, President and CEO Judy R. McReynolds told shareholders Tuesday during the company's annual meeting.

Finalizing the five-year contract between Arkansas Best Freight, a subsidiary of Arkansas Best Corp. (Nasdaq: ABFS), and the union will be a key step in restoring "profitability of the company," McReynolds said during a presentation at the transportation firm's headquarters.

McReynolds said the Teamsters' "two-man committee" approved the operating agreement during a meeting Monday in Chicago.

Now approval is in the hands of ABF's 7,500 union employees. Ballots will be mailed to them on June 3 and a count is expected June 28.

The company's share price was at $9.83 on May 2, the day before a tentative agreement was reached. ABFS stock was valued at $17.74 on Monday and was at $18.87 by 10:30 a.m. Tuesday.

A slide during McReynold’s presentation described last year's unprofitability as "troubling and unacceptable." Arkansas Best reported a net loss of $7.7 million in 2012.



Arkansas Best expects the new contract to help contain operating expenses for the company, which had $2.2 billion in revenue for 2012. McReynolds outlined other areas for potential growth and highlighted an 82 percent growth for truck brokerage and management for the first quarter of 2013.

Executives also seen global supply chain services as a growth area, and the company is looking at the possibility of other "strategic" acquisitions like last year's purchase of Panther Expedited Services Inc.

A freeze in the pension plan for non-union employees is also supposed to help the company's bottom line. Arkansas Best announced the elimination, which won’t impact vested pensions, on Monday.

"I just want to thank all of the employees at the company for their energy and effort," McReynolds said. "It’s been tough. It's been a tough few years for us. We know the direction we're headed. We know how to get there."

Also on Tuesday, shareholders approved the appointment of nine directors to the ABFS board. All nine were approved by the vote and shareholders also offered support, though non-binding, of the proposed executive compensation plan for 2013.


Arkansas Business
Click to expand...

I do not understand how ABFS accounts seem to keep changing how much money the company is loosing. According to this article ABFS had a net loss of $7.7million in 2012 but I read an article a couple of months ago that assert ABF Freight lost $14million in the fourth quarter alone. What does not make sense to me is with ABF Freight being the largest contributor to ABFS revenue, how did ABFS take such a small loss? With these small non-asset companies seeming to do so well, I wonder if it would be better for ABFS to sell off ABF Freight and have only profitable companies? It is what other CEO’S have done to unlock value for the stock holders. But if ABF Freight is the company used to make the non-asset companies profitable, then it would seem to be a good idea to keep ABF Freight as part of the company. Please vote NO.
 
RR3872 said:
< Back to Article Print

Arkansas Best CEO Says Agreement With Teamasters Will Help 'Restore Profitability'


by Chris Bahn

Posted 5/21/2013 10:47 am

Updated 5 hours ago





Arkansas Best Corp. of Fort Smith has seen a 68 percent increase in its share price since reaching a tentative agreement with the Teamsters, President and CEO Judy R. McReynolds told shareholders Tuesday during the company's annual meeting.

Finalizing the five-year contract between Arkansas Best Freight, a subsidiary of Arkansas Best Corp. (Nasdaq: ABFS), and the union will be a key step in restoring "profitability of the company," McReynolds said during a presentation at the transportation firm's headquarters.

McReynolds said the Teamsters' "two-man committee" approved the operating agreement during a meeting Monday in Chicago.

Now approval is in the hands of ABF's 7,500 union employees. Ballots will be mailed to them on June 3 and a count is expected June 28.

The company's share price was at $9.83 on May 2, the day before a tentative agreement was reached. ABFS stock was valued at $17.74 on Monday and was at $18.87 by 10:30 a.m. Tuesday.

A slide during McReynold’s presentation described last year's unprofitability as "troubling and unacceptable." Arkansas Best reported a net loss of $7.7 million in 2012.



Arkansas Best expects the new contract to help contain operating expenses for the company, which had $2.2 billion in revenue for 2012. McReynolds outlined other areas for potential growth and highlighted an 82 percent growth for truck brokerage and management for the first quarter of 2013.

Executives also seen global supply chain services as a growth area, and the company is looking at the possibility of other "strategic" acquisitions like last year's purchase of Panther Expedited Services Inc.

A freeze in the pension plan for non-union employees is also supposed to help the company's bottom line. Arkansas Best announced the elimination, which won’t impact vested pensions, on Monday.

"I just want to thank all of the employees at the company for their energy and effort," McReynolds said. "It’s been tough. It's been a tough few years for us. We know the direction we're headed. We know how to get there."

Also on Tuesday, shareholders approved the appointment of nine directors to the ABFS board. All nine were approved by the vote and shareholders also offered support, though non-binding, of the proposed executive compensation plan for 2013.


Arkansas Business
Click to expand...
Just a question to ABFers....does the contract forbid them from buying NON-UNION companies while you all are on this pay cut, it does with YRC, just curious.....thanks....KK
 
I dont remember reading anything about not being able to buy a non union company. Just a thought, maybe we will buy YRC, or part of them.
 
Kennesaw Kid said:
Just a question to ABFers....does the contract forbid them from buying NON-UNION companies while you all are on this pay cut, it does with YRC, just curious.....thanks....KK
Click to expand...

Kennesaw Kid that is a great question. My immediate thought when I read it was about Consolidated Freight and Con-Way. Please vote NO
 
Kennesaw Kid said:
Just a question to ABFers....does the contract forbid them from buying NON-UNION companies while you all are on this pay cut, it does with YRC, just curious.....thanks....KK
Click to expand...

Yes, under the economic agreement the bottom of page 72 the company agrees not to establish or purchase any union or nonunion trucking companies without the agreement of the Union.
 
Please remember, Brother AkitaDog ,...that was several years ago,...when we all actually trusted the numbers companies put out, and had faith that our elected officials had our best interests at heart. The guys at YRC are our Union Brothers,....and I think we've all had a good "education" in the past several years about lying, who's lying to us, who is clueless, who is incompetent........Between the YRC fiasco, and the beg-back 2 years ago, the Teamsters , and the companies burned up a lot of trust and good faith. To start hating our Brothers is just what the companies want. It's what they teach the non-Union employees....."You're in competition....cut in front ,...run around,...steal their freight bills,....we're in competition, this is WAR!,...You've got to hate the man that does the same job as you because he wears a different shirt......and because the company makes money off your hate....". Let those of us in Unions never forget solidarity lest the hate be directed toward us, someday. I don't think you could get anyone at YRC to vote for anything proposed by either the company or the IBT. They've learned not to trust those supposedly looking out for their best interests.
 
grovercxl said:
Yes, under the economic agreement the bottom of page 72 the company agrees not to establish or purchase any union or nonunion trucking companies without the agreement of the Union.
Click to expand...

I don't know about you guys, but I'm rather incensed about the feeling that YRC is poised to "buy" us.. I'm not property,...to be bought and sold like chattel. We're not on ABF's plantation.....the threat of a sale.......the hint, actually....is personally disgusting and offensive. First off,...it was "secret" for a month,...then it was "released" in an e-mail to DCVelocity.....sure doesn't sound like they were proud of their business offer. Then ,...all the stock activity,...only found out by looking at SEC filings that were required. Then the embarassment of the IBT and Mr. Hoffa and his clueless $250,000-a-month appointees to YRC's board of directors..........and , other than bloviating in a press release for a day,....Mr. Hoffa has done nothing,...didn't fire the appointees, didn't call for an investigation,..didn't force YRC to account for where or how they are able to come up with $451 million ..............nothing.........Do you guys feel like we're being lied to, and being terrorized into doing what the company wants,.........and the IBT is in on it?
 
All these companies are the same. They always claim they are losing money. Went there for a job recently in NJ. Never heard back from them . When I called HR they said my app was rejected but that HR dosent give a reason. Im a Ex Hostess driver. All they ever did was take money from us. Then finally went out of business. Good luck guys.
 
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