FORT SMITH, Ark., Jan. 20 /PRNewswire/ -- Arkansas Best Corporation (Nasdaq: ABFS) today announced income from continuing operations for the 1999 fourth quarter of $16.5 million, or $0.68 per diluted common share, representing a 53.1% increase over 1998 fourth quarter income from continuing operations of $10.8 million, or $0.46 per diluted common share. For the full year of 1999, the company reported record income from continuing operations of $51.2 million, or $2.14 per diluted common share versus income from continuing operations of $31.3 million, or $1.32 per diluted common share for 1998.

"For the second year in a row, Arkansas Best's full-year results reflect the highest income in the company's history," said Robert A. Young, III, Arkansas Best President and Chief Executive Officer. "1999 income from continuing operations exceeded $50 million for the first time and represented an increase of 63.8% over last year's previous high."

"For the fourth quarter, ABF had an operating ratio of 89.9% compared to a 93.4% operating ratio for the fourth quarter of 1998. This is the first time since 1978 that ABF has produced a quarterly operating ratio in the 80s and it is the best fourth quarter operating ratio since 1973," said Mr. Young.

ABF's revenue for the 1999 fourth quarter was $340.7 million, an increase of 14.3% over the fourth quarter of 1998. ABF's operating income for the quarter was $34.4 million, a 75.8% increase over the same period last year. Fourth quarter 1999 LTL revenue per hundredweight was $20.33, an increase of 10.1% over last year's fourth quarter. This quarter's revenue figures reflect a 5.1% rate increase taken in mid-September and ABF's fuel surcharge. There was neither a fall rate increase nor a fuel surcharge that applied to the fourth quarter of 1998. Without the effects of the rate increase and the fuel surcharge, ABF's 1999 fourth quarter LTL revenue per hundredweight reflected an approximate 4.3% increase over the 1998 fourth quarter. LTL tonnage per day for the fourth quarter of 1999 was up 3.7% when compared to the same period a year ago. Fourth quarter productivity levels were down slightly below levels experienced during the first three quarters of the year.

"ABF improved its fourth quarter operating ratio over last year's fourth quarter by three and a half operating points," said Mr. Young. "ABF's employees should be congratulated on such outstanding results."

For 1999, ABF's operating ratio was 91.6% which reflects more than a two and a half point improvement over last year's figure of 94.2%. This year's operating ratio at ABF is the best in 23 years. "ABF's 1999 operating income of $107.0 million surpassed the $100 million level for the first time and represented an increase of 58.2% over 1998," said Mr. Young. ABF's 1999 revenue reflects the addition of $102 million of new revenue over 1998. This is an increase of 8.7%. ABF's total tonnage per day for the full year of 1999 increased 1.9% versus the full year of 1998. This year-to-year tonnage change consists of a 1.8% increase in LTL tonnage and a 2.5% increase in truckload tonnage. After being essentially flat during the first half of the year, significant second half tonnage gains resulted in this increase for the entire year. "ABF had a tremendous year and continues to distinguish itself as the profitability leader in the longhaul LTL industry," said Mr. Young. "Two of the things that distinguish ABF are the recent service improvements in two-day transit time lanes and system enhancements related to eCommerce."

ABF is having impressive success in the two-day transit time lanes. In the 1999 fourth quarter, two-day transit time lanes had a 12.0% increase in tonnage and a 20.1% increase in revenue over the prior year. This continues to significantly surpass the growth of the economy and ABF's remaining, longer haul business. Regional business, as defined by shipments moving 800 miles or less, accounts for 35.8% of ABF's current tonnage. "As illustrated by these figures, our customers have been pleased with ABF's ability to provide competitive service in the shorthaul, regional markets," said Mr. Young. "ABF will continue to improve its regional service offerings because we see opportunities for additional growth with this business."

Since first placing its general pricing schedules on the Internet in 1995, ABF has continually upgraded its Internet web site with updated information and new services. Earlier this month, ABF introduced several new enhancements to its Internet eCenter(SM) tools that facilitate the eCommerce business of its customers. A few of these include Dynamic Rerouting which permits on-line customers to redirect freight to a new destination and Transparent Links which integrates ABF information into the customer's supply chain information system. With the introduction of myABF(SM), which allows customers to create personalized web pages, each ABF customer can customize the use of information they find essential for the successful movement of goods through the supply chain. The offering of these electronic support tools, unmatched in the transportation industry, allows ABF to be well positioned to provide the fulfillment link in business-to-business eCommerce. ABF's recent press release of January 7 provides a complete list of ABF's current eCenter features.

However, providing these tools through its web site is only the first step in ABF's becoming a transportation leader in the new world of eCommerce. ABF's existing franchise of locations provides the framework for seamless delivery of on-line orders across North America. ABF's employees are being trained and equipped with an understanding of how these new trends are going to affect customers. A study by Forrester Research shows that business-to- business eCommerce will grow at a rapid pace, far exceeding that of business- to-consumer fulfillment channels. Shippers in these new ventures want high visibility and control of their freight as it moves throughout the ABF system. ABF is empowering its customers with this information and knowledge. "As the shipping environment undergoes transformation, ABF will continue to be flexible in providing new tools and information that will facilitate the new business models of its customers," said Mr. Young. "ABF believes this will enable it to successfully participate in the growth of the business-to- business segment of eCommerce."

. . .

The following is a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995: Statements contained in this press release that are not based on historical facts are "forward-looking statements." Terms such as "estimate," "expect," "predict," "plan," "anticipate," "believe," "intend," "should," "would," "scheduled," and similar expressions and the negatives of such terms are intended to identify forward-looking statements. Such statements are by their nature subject to uncertainties and risk, including, but not limited to, union relations; availability and cost of capital; shifts in market demand; weather conditions; the performance and needs of industries served by Arkansas Best's subsidiaries; actual future costs of operating expenses such as fuel and related taxes; self-insurance claims and employee wages and benefits; actual costs of continuing investments in technology, the timing and amount of capital expenditures; the accuracy of assessments and estimates relating to Year 2000 computer issues; competitive initiatives and pricing pressures; general economic conditions; and other financial, operational and legal risks and uncertainties detailed from time to time in the Company's SEC public filings.

  

    ABF FREIGHT SYSTEM, INC.
    COMBINED FINANCIAL INFORMATION
    FOR THE QUARTER AND YEAR ENDED December 31, 1999

                    Three Months Ended December 31            Full Year
                           1999    1998       %      1999        1998      %
                                           Change                       Change

    Operating Revenue*  $340,672 $298,130  14.3%  $1,277,093  $1,175,213  8.7%
    Operating Income*   $ 34,442 $ 19,593         $  106,969  $   67,609
    Operating Ratio         89.9%    93.4%              91.6%       94.2%

                   Three Months Ended December 31           Full Year
                        1999       1998      %       1999        1998     %
                                           Change                       Change

    Revenue*  LTL  $  307,023  $  268,740  14.3%  $1,158,479  $1,064,063  8.9%
               TL      33,649      29,390  14.5%     118,614     111,150  6.7%
            Total  $  340,672  $  298,130  14.3%  $1,277,093  $1,175,213  8.7%

    Tonnage*  LTL     755,056     728,005   3.7%   2,959,960   2,908,302  1.8%
    (tons)     TL     210,606     198,181   6.3%     772,235     753,354  2.5%
            Total     965,662     926,186   4.3%   3,732,195   3,661,656  1.9%

    Shipments LTL   1,483,439   1,449,779   2.3%   5,911,629   5,758,795  2.7%
               TL      26,007      24,361   6.8%      95,932      93,950  2.1%
            Total   1,509,446   1,474,140   2.4%   6,007,561   5,852,745  2.6%

    Revenue/CWT
              LTL  $    20.33  $    18.46  10.1%  $    19.57  $    18.29  7.0%
               TL        7.99        7.41   7.8%        7.68        7.38  4.1%
            Total  $    17.64       16.09   9.6%  $    17.11  $    16.05  6.6%

    Revenue /Shpt
            Total  $   225.69  $   202.24  11.6%  $   212.58  $   200.80  5.9%

    Cost/Shipment
            Total  $   202.88  $   188.95   7.4%  $   194.78  $   189.25  2.9%

    *Note:  Value rounded to thousands ($000)
     There were 62 workdays in the fourth quarter of 1999 due to customers'
     observance of the Christmas and New Year's holidays; 62 workdays in the
     fourth quarter of 1998.

     Includes U.S., Canadian and Puerto Rican operations of ABF affiliates.