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More Fleets Report Positive 1Q Financials

April 27, 2012

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(UPDATED) Most carriers are reporting positive first quarter financial results, and some are setting records with their numbers. P.A.M, UPS, Old Dominion, Ryder, Celadon, Knight, Landstar and Universal Truckload all reported increased revenues for the first quarter of 2012.
Covenant Transport reported some decreases, but its numbers were an improvement over 1Q 2011. Arkansas Best Corp. reported losses for the quarter compared to the first quarter of 2011.

Arkansas Best Corp.

Arkansas Best Corp., Fort Smith, Ark., reported a first quarter 2012 net loss of $18.2 million, or 71 cents per share, compared to a net loss of $12.8 million, or 51 cents per share in the first quarter of 2011.

The company says its less-than-stellar first quarter results were impacted by the following:

- Low corporate tax benefit rate - (18 cents per share)
- High ABF workers' compensation costs - (13 cents per share)
- Investments in sales, customer service and IT for all subsidiaries- (12 cents per share)

P.A.M. Transportation Services

P.A.M., Springdale, Ark., reported net income of $674,193 or diluted and basic earnings per share of 8 cents for the quarter. These results compare to a net loss of $1.98 million or diluted and basic loss per share of 21 cents for 1Q 2011. Operating revenues were $96.16 million for the first quarter of 2012, a 13.1% increase compared to $85.03 million in 2011.

On a per-mile basis, operating expenses in trucking operations, net of fuel surcharge, were down 4.8% for the first quarter 2012 compared to the first quarter 2011.

The company increased driving employees by 3.5% 1Q 2011 to 1Q 2012 and has more than tripled the number of independent contractors during the same period.

UPS

For the quarter, UPS, headquartered in Atlanta, reported diluted earnings per share of $1, a 10% improvement over the prior-year period. Consolidated revenue increased 4.4% to $13.1 billion, and operating profit for the U.S. Domestic and Supply Chain and Freight segments increased 13% and 19%, respectively.

Net income rose 6% to $970 million, or $1 per share, from $915 million, or 91 cents a share, a year ago. Revenue rose 4.4% to $13.14 billion, the company reported.

International package operating profit slipped to $408 million from $453 million, but revenue rose 2.3% to $2.97 billion.

Old Dominion Freight Line

Old Dominion, Thomasville, N.C., saw revenue increase by 17.6% to $497.1 million from $422.7 million for the first quarter of 2011. Net income was $31.1 million for the first quarter of 2012, which was an increase of 44.1% from $21.6 million for the first quarter of 2011. Earnings per diluted share increased 42.1% to 54 cents from 38 cents for the first quarter last year, and the company's operating ratio improved to 89.1% from 91%.

First quarter revenue reflected a 10.7% increase in tonnage and a 5.5% increase in revenue per hundredweight compared to 1Q 2011. The increase in tonnage is the result of a 9.5% increase in shipments and a 1% increase in weight per shipment, the company says.

Ryder System

Ryder's earnings per diluted share from continuing operations for 1Q 2012 were 68 cents, compared with 50 cents in the year-earlier period.

The company, headquartered in Miami, had a total revenue for the first quarter of 2012 of $1.54 billion, up 8% from $1.43 billion in the same period last year. Operating revenue (revenue excluding Fleet Management Solutions fuel and all subcontracted transportation) was $1.23 billion, up 9% compared with $1.13 billion in the year-earlier period.

Ryder's Fleet Management Solutions and Supply Chain Solutions business segments saw total revenue growth of 9% and 7%, respectively.

Celadon Trucking Services

Celadon, Indianapolis, saw revenue for the quarter increase 10.5% to $153.2 million in 2012 from $138.7 million in the 2011 quarter. Freight revenue, excluding fuel surcharges, increased 7.8% to $120.9 million in the 2012 quarter from $112.2 million in the 2011 quarter. Net income increased to $5.7 million in the 2012 quarter from $2.3 million for the same quarter last year. Earnings per diluted share increased to 25 cents in the 2012 quarter from 10 cents in 1Q 2011.

For the nine months ended March 31, 2012, revenue increased 5.9% to $441.2 million in 2012 from $416.8 million for the same period last year. Freight revenue increased 0.8% to $350.6 million in 2012 from $347.9 million for the same period last year. Net income increased to $16.6 million in 2012 from $9.8 million for the same period in 2011. Earnings per diluted share increased to 73 cents in 2012 from 43 cents for the same period last year.

Knight Transportation

For the quarter, Knight's total revenue increased 17.7% to $219.5 million from $186.5 million in the first quarter in 2011. Revenue before fuel surcharge increased 16.7% to $175.6 million from $150.5 million in the first quarter of 2011.

The company, based in Phoenix, had a net income of $10.5 million, or 13 cents per diluted share, from $9.9 million, or 12 cents per diluted share, in the first quarter of 2011.

In the first quarter 2012, the company's revenue per tractor (excluding fuel surcharge) improved 10.3% as a result of a 7.3% improvement in miles per tractor and a 2.8% improvement in revenue per total mile (excluding fuel surcharge) with a 2.6% longer length of haul.

Covenant Transport

Covenant, based in Chattanooga, Tenn., reported freight revenue of $121.9 million, a decrease of 2% compared with the first quarter of 2011. The company had an operating income of $2.4 million and an operating ratio of 98.1%, compared with operating income of $0.3 million and an operating ratio of 99.8% in the first quarter of 2011

In 1Q 2102, Covenant experienced a net loss of $0.6 million, or.4 cents per share, compared with a net loss of $2.5 million, or 17 cents per share in 1Q 2011.

Average freight revenue per tractor per week increased to $3,044 during the 2012 quarter from $2,980 in 2011. Average freight revenue per total mile increased by 7.7 cents per mile (or 5.8%) compared to the 2011 quarter, but average miles per unit decreased by 2.4%.

Landstar System

Landstar, Jacksonville, Fla., reported the best first quarter financials in the history of the company.

The company reported 2012 record first quarter diluted earnings per share of 57 cents from net income of $26.8 million, compared to net income of $20.6 million, or 43 cents per diluted share, for the 2011 first quarter.

Operating margin, representing operating income divided by gross profit was 40.8% in the 2012 first quarter compared to 35.4% in the 2011 first quarter. Revenue for the 2012 first quarter was a first quarter record of $649 million compared to $572 million in the 2011 first quarter.

Universal Truckload Services

Michigan-based Universal Truckload's first quarter operating revenues increased 11.6% to $175.8 million from $157.6 million in 2011, and operating ratio improved 70 basis points to 96.9% from 97.6% for 1Q 2011. Included in operating revenues are fuel surcharges of $22.1 million and $17.9 million for 1Q 2012 and 1Q 2011, respectively.

First quarter income from operations increased by 40.4%, or $1.5 million, to $5.4 million for the quarter from $3.8 million in 2011, and net income increased by $0.7 million, to $3.6 million (23 cents per basic and diluted share) from $2.9 million (18 cents per basic and diluted share) for the first quarter of, 2011.

For more information on the above carriers:


Arkansas Best Corp.
P.A.M. Transportation Services
UPS
Old Dominion Freight Line

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