(Fort Smith, Arkansas, April 25, 2005) — Arkansas Best Corporation (Nasdaq: ABFS) today announced first quarter 2005 net income of $10.5 million, or $0.41 per diluted common share. For the first quarter of 2004, net income was $4.5 million, or $0.18 per diluted common share. Arkansas Best’s first quarter 2005 revenue was $417.3 million compared to $374.8 million in the first quarter of 2004.

ABF Freight System, Inc.^®

ABF Freight System had first quarter 2005 revenues of $384.1 million, a per-day increase of 11.0% versus first quarter 2004 revenue of $346.1 million. First quarter 2005 operating income at ABF was $17.2 million compared to $8.7 million during the first quarter of 2004. ABF’s first quarter 2005 operating ratio was 95.5% versus an operating ratio of 97.5% during the first quarter of 2004.

ABF’s total tonnage per day increased by 3.7% during the first three months of 2005 compared to the same period last year.  This consisted of a 2.9% increase in LTL tonnage per day and a 6.7% increase in truckload tonnage per day. “Although year-over-year LTL tonnage level increases slowed throughout the quarter, ABF improved its first quarter operating ratio by two percentage points compared to last year’s first quarter,” said Robert A. Young III, Arkansas Best Chairman and Chief Executive Officer. “During the quarter, ABF benefited from a combination of firm pricing and additional tonnage to produce improved operating margins.”

Through the first twenty-one days of April, average daily tonnage figures in ABF’s LTL business are slightly ahead of last year. 

Billed LTL revenue per hundredweight was $26.28, an increase of 7.2% over last year’s first quarter figure of $24.52. “The LTL pricing environment remains competitive and is consistent with last year. We think overall pricing is still good,” said Mr. Young. ABF’s first quarter 2005 LTL weight per shipment was flat compared to the first quarter of 2004. First quarter 2005 LTL length of haul declined by 2.0% compared to the first quarter of 2004. Decreases in length of haul cause revenue per hundredweight to decrease. First quarter 2005 LTL freight density decreased by 2.0% compared to the first quarter of 2004. Decreases in freight density cause revenue per hundredweight to increase.

Billed truckload revenue per hundredweight increased by 10.7% over last year’s first quarter figure. “Because of capacity constraints in the truckload industry, ABF continued to add truckload shipments at good prices and acceptable margin levels,” said Mr. Young. “While maintaining its primary emphasis on service to its LTL customers, ABF will seek to add these larger shipments when they contribute to overall profitability.”

“ABF’s first quarter 2005 city pickup and delivery productivity was the same as that of the first quarter of 2004. Yard productivity improved over last year’s first quarter,” said Mr. Young. “Though ABF’s first quarter bills-per-hour dock productivity was below that of the same period last year, it exceeded the dock production levels of the fourth quarter of 2004 and was equal to that of the third quarter of 2004. As new dock workers added last year have become more familiar with their job activities, dock handling efficiencies have improved.”

Common Stock Purchase

During the first quarter of 2005, Arkansas Best made open market purchases, totaling 37,650 shares, of its common stock. The total purchase price for these transactions was $1.5 million. These common shares were added to the company’s treasury stock. Since February 2003, as a part of a previously announced program to repurchase up to a maximum of $25 million of its common stock, Arkansas Best has purchased a total of 509,150 shares totaling $13.9 million.  Arkansas Best plans to continue making open market purchases of its stock on an opportunistic basis.    

Conference Call

Arkansas Best Corporation will host a conference call with company executives to discuss the 2005 first quarter results.  The call will be today, Monday, April 25, at 11:00 a.m. EDT (10:00 a.m. CDT). Interested parties are invited to listen by calling (877) 275-1257. Following the call, a recorded playback will be available through Friday, May 13. To listen to the playback, dial (800) 642-1687. The conference call ID for the playback is 5377908. The conference call and playback can also be accessed, through May 13, on Arkansas Best’s Internet Web site at www.arkbest.com.

Company Description

Arkansas Best Corporation, headquartered in Fort Smith, Arkansas, is a transportation holding company with two primary operating subsidiaries. ABF Freight System, Inc., in continuous service since 1923, provides national transportation of less-than-truckload (“LTL”) general commodities throughout North America. Clipper is an intermodal marketing company that provides domestic freight services utilizing rail and over-the-road transportation.

Forward-Looking Statements

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,” “forecast,” “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; union and non-union employee wages and benefits; actual costs of continuing investments in technology; the timing and amount of capital expenditures; 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 Securities and Exchange Commission (“SEC”) public filings.

ABF FREIGHT SYSTEM, INC.

OPERATING STATISTICS

FOR THE THREE MONTHS ENDED MARCH 31, 2005

 

		Three Months Ended March 31
		2005	2004	% Change
Billed Revenue*/CWT	LTL	$       26.28	$     24.52	7.2%
	TL	$         9.71	$       8.77	10.7%
	Total	$       22.90	$     21.40	7.0%
Billed Revenue*/CWT	LTL	$       24.00	$     23.47	2.3%
(w/o FSC)	TL	$         8.75	$       8.39	4.3%
	Total	$       20.88	$     20.48	2.0%
Billed Revenue*/Shpmnt	LTL	$     258.80	$   241.80	7.0%
	TL	$  1,572.85	$1,436.14	9.5%
	Total	$     278.98	$   259.39	7.6%
Billed Revenue*/Shpmnt	LTL	$     236.30	$   231.47	2.1%
(w/o FSC)	TL	$  1,418.41	$1,374.05	3.2%
	Total	$     254.46	$   248.26	2.5%
Tonnage	LTL	670,568	651,446	2.9%
(tons)	TL	172,078	161,304	6.7%
	Total	842,646	812,750	3.7%
Shipments	LTL	1,361,903	1,321,242	3.1%
	TL	21,241	19,701	7.8%
	Total	1,383,144	1,340,943	3.2%

 

   * Billed revenue does not include revenue deferral required for financial statement purposes under the Company’s revenue recognition policy.

 

 

There were 64 workdays in the three months ended March 31, 2005 and the three months ended March 31, 2004.

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

 

Contact:    Mr. David E. Loeffler, Senior Vice President, Chief Financial Officer and Treasurer

                Telephone: (479) 785-6157

 

                Mr. David Humphrey, Director of Investor Relations

                Telephone: (479) 785-6200