Arkansas Best Corp. announced third quarter 2002 net income of $18.3 million, or $0.73 per diluted common share, compared to third quarter 2001 net income of $13 million, or $0.52 per diluted common share.

The third quarter 2002 earnings-per-share figure includes three items of note. First, an increase in earnings of $0.12 per diluted common share occurred during the quarter related to a previously announced favorable settlement between Arkansas Best Corp. and the Internal Revenue Service. Second, Arkansas Best experienced an increase in earnings of $0.09 per diluted common share associated with the after-tax gains on sales of excess freight facilities at ABF. Finally, there was a $0.02 per diluted common share decrease in earnings resulting from an increase in Arkansas Best's liability reserves associated with the liquidation of Reliance Insurance Co.
Reliance insured Arkansas Best's workers' compensation claims in excess of $300,000 for the period from 1993 through 1999. Last year's third quarter earnings-per-share figure includes an after-tax gain of $2.8 million, or $0.11 per diluted common share, resulting from the August 2001 sale of G.I. Trucking Co.
"I am pleased with the performance of our company during what has proven to be an interesting operating environment," said Robert A. Young, III, Arkansas Best president and CEO."ABF improved its operating ratio nearly half a point versus the third quarter of last year. Clipper, with quarterly revenues essentially flat, nearly tripled its operating income compared to last year's third quarter.
"Arkansas Best continues to have the strongest financial position in the nationwide long-haul, LTL industry," said Young. "During the third quarter, we had strong, positive cash flow and continued to pay down debt. Total debt, including current maturities and net of temporary investments, was $103.0 million at the end of the quarter. This produced a debt-to-equity ratio of 0.30:1."
Arkansas Best Corp., headquartered in Fort Smith, Ark., is a diversified transportation holding company with two primary operating subsidiaries. ABF Freight System Inc., in continuous service since 1923, provides national transportation of less-than-truckload general commodities throughout North America. Clipper is an intermodal marketing company that provides domestic freight services, utilizing rail and over-the-road transportation.