Arkansas Best Corporation (the “Company”) is a diversified holding company
engaged through its subsidiaries primarily in motor carrier, intermodal operations and
truck tire retreading and sales (see Note M). Principal subsidiaries are ABF Freight
System, Inc., (“ABF”), Treadco, Inc. (“Treadco”), and Clipper Exxpress
Company and related companies (the “Clipper Group”) and, effective August 12,
1995, WorldWay Corporation (“WorldWay”) (see Note B). The principal subsidiaries
of WorldWay included Carolina Freight Carriers Corp., which was merged into ABF on
September 24, 1995, Cardinal Freight Carriers, Inc. (“Cardinal”), G.I. Trucking
Company (“G.I. Trucking”), CaroTrans International, Inc.
(“CaroTrans”), and The Complete Logistics Company (“Complete
Logistics”). As of December 31, 1996, the Company’s percentage ownership of
Treadco was 46%. The Company’s consolidated financial statements reflect full
consolidation of the accounts of Treadco, with the ownership interests of the other
stockholders reflected as minority interest, because the Company controls Treadco through
stock ownership, board representation and management services provided under a transition
services agreement. Summarized condensed financial information for Treadco is as follows:
TREADCO, INC.
December 31
1996 1995
($ thousands)
Current assets $ 57,829 $ 61,615
Property, plant and equipment, net 33,186 16,339
Other assets 14,401 15,081
Total assets $ 105,416 $ 93,035
Current liabilities $ 23,786 $ 16,737
Long-term debt and other 19,682 10,280
Stockholders’ equity 61,948 66,018
Total liabilities and stockholders’ equity $ 105,416 $ 93,035
1996 1995 1994
($ thousands)
Sales $ 144,154 $ 147,906 $ 140,678
Operating expenses and costs 149,799 143,382 129,625
Interest expense 899 510 270
Other (income) expense (1,192) (88) 9
Income taxes (2,093) 1,711 4,265
Net income (loss) $ (3,259) $ 2,391 $ 6,509
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