Forward Air Corporation Reports Third Quarter 2014 Results and Announces Quarterly Cash Dividend

GREENEVILLE, Tenn.--(BUSINESS WIRE)-- Forward Air Corporation (NASDAQ:FWRD) today reported operating revenue, income from operations, net income and diluted earnings per share for the three and nine months ended September 30, 2014.

Operating revenue for the quarter ended September 30, 2014 increased 18.5% to $201.5 million from $170.0 million for the same quarter in 2013. Income from operations was $26.9 million, compared with $22.9 million in the prior-year quarter. As a percent of operating revenue, income from operations was 13.3%, compared with 13.5% in the same quarter last year. Net income during the period was $16.7 million compared to $14.2 million in the prior-year quarter. Net income per diluted share for the third quarter of 2014 was $0.54 compared with $0.46 in the prior-year quarter.

Operating revenue for the nine months ended September 30, 2014 increased 20.3% to $566.9 million from $471.4 million for the same period in 2013. Income from operations was $70.8 million, compared with $61.1 million in the prior-year period. As a percent of operating revenue, income from operations was 12.5%, compared with 13.0% in the same period last year. Net income during the period was $44.1 million compared to $38.9 million in the prior-year period. Net income per diluted share for the nine months ended September 30, 2014 was $1.41 compared with $1.27 in the prior-year period.

Bruce A. Campbell, Chairman, President, and CEO, commenting on the third quarter said, “We were pleased with our revenue and operating income performance across all of our business segments especially in light of the challenging capacity environment and its impact on our cost structure.”

Commenting on the Forward Air, Inc. (“FAI”) business segment, Mr. Campbell said, “FAI revenue continues to benefit from the acquisition of Central States Trucking Company (‘CST’) along with strong year-over-year growth in our tonnage volumes and improving airport-to-airport pricing. These positive trends were partially offset by higher purchased transportation and recruiting costs resulting from our efforts to grow our fleet to keep pace with our increased shipping activity. CST contributed approximately $21.1 million of revenue and $2.5 million of operating income during the third quarter of 2014.”

Commenting on the Forward Air Solutions (“Solutions”) segment, Mr. Campbell said, “Solutions continues to show significant improvement in operating income driven primarily by the general rate increases initiated in the first quarter and excellent operating discipline. Compared to the prior-year quarter results, Solutions operating results improved over $0.4 million, or 50.0% incremental profitability.”

Addressing the Total Quality, Inc. (“TQI”) business segment, Mr. Campbell said, “Despite a lack of revenue growth, we continue to experience improvement in operating income as a percentage of revenue as a result of operating efficiencies initiated during 2014.”

In closing, Mr. Campbell said, “As always, I would like to thank the Forward Air team of employees and independent contractors for their dedication and hard work.”

Commenting on the Company’s guidance for the fourth quarter, Rodney L. Bell, Senior Vice President and CFO said, “We anticipate that our fourth quarter 2014 revenues will increase in the range of 18% to 22% over the comparable 2013 period. We expect income per diluted share to be between $0.60 and $0.66 per share. This compares to $0.50 per share in the fourth quarter of 2013.”

On October 23, 2014, our Board of Directors declared a quarterly cash dividend of $0.12 per share of common stock. The dividend is payable to shareholders of record at the close of business on November 21, 2014, and is expected to be paid on December 8, 2014.

This quarterly dividend is pursuant to a cash dividend policy approved by the Board of Directors, which anticipates a total annual dividend of $0.48 per share of common stock, payable in quarterly increments of $0.12 per share of common stock. The actual declaration of future cash dividends, and the establishment of record and payment dates, is subject to final determination by the Board of Directors each quarter after its review of the Company’s financial performance.

Review of Financial Results

Forward Air will hold a conference call to discuss third quarter 2014 results on Friday, October 24, 2014 at 9:00 a.m. EDT. The Company’s conference call will be available online at www.forwardair.com or by dialing 800-230-1092. A replay of the conference call will be available at www.forwardair.com beginning shortly after the completion of the live call.

About Forward Air Corporation

Forward Air Corporation operates three business segments, Forward Air, Inc., Forward Air Solutions, Inc. and Total Quality, Inc.

Forward Air, Inc. is a leading provider of time-definite surface transportation and related logistics services to the North American expedited ground freight market. We offer our customers local pick-up and delivery (Forward Air CompleteSM) and scheduled surface transportation of cargo as a cost-effective, reliable alternative to air transportation. We transport cargo that must be delivered at a specific time but is relatively less time-sensitive than traditional air freight or when air transportation is not economical. We also offer our customers an array of logistics and other services including: expedited full truckload (TLX); intermodal/drayage (Central States Trucking Co.); dedicated fleets; warehousing; customs brokerage; and shipment consolidation, deconsolidation and handling.

Forward Air Solutions, Inc. is a provider of pool distribution services. Pool distribution involves the consolidation and shipment of several smaller less-than-truckload shipments to a common area or region. Once at the regional destination, the loads are deconsolidated, then grouped with other shipments with common delivery points, and delivered in a very precise, time-sensitive manner. Our pool distribution network consists of 24 terminals within the mid-Atlantic, Southeast, Midwest and Southwestern United States.

Total Quality, Inc. utilizes industry-leading temperature-controlled equipment, 24-hour monitoring and tracking technology and layered security features to provide our customers with the highest level of service. In addition to our core pharmaceutical services, we provide brokerage transportation services. Headquartered in central Michigan, we service the United States, Canada and Mexico.

 
 
 
 
 
Forward Air Corporation
Consolidated Statements of Comprehensive Income
(In thousands, except per share data)
(Unaudited)
           
Three months ended Nine months ended

September 30,

2014

   

September 30,

2013

September 30,

2014

September 30,

2013

Operating revenue $ 201,477 $ 170,033 $ 566,897 $ 471,396
 
Operating expenses:
Purchased transportation 85,874 75,211 242,259 206,462
Salaries, wages and employee benefits 45,651 39,165 131,464 109,149
Operating leases 8,503 6,991 25,019 20,923
Depreciation and amortization 8,115 6,220 22,879 17,377
Insurance and claims 3,747 3,290 10,978 9,164
Fuel expense 5,012 3,871 14,990 10,535
Other operating expenses   17,669     12,428     48,537     36,634  
Total operating expenses   174,571     147,176     496,126     410,244  
Income from operations 26,906 22,857 70,771 61,152
 
Other income (expense):
Interest expense (172 ) (145 ) (355 ) (401 )
Other, net   (55 )   27     144     72  
Total other income (expense)   (227 )   (118 )   (211 )   (329 )
Income before income taxes 26,679 22,739 70,560 60,823
Income taxes   9,935     8,542     26,437     21,941  
Net income and comprehensive income $ 16,744   $ 14,197   $ 44,123   $ 38,882  
 
Net income per share:
Basic $ 0.55   $ 0.47   $ 1.44   $ 1.30  
Diluted $ 0.54   $ 0.46   $ 1.41   $ 1.27  
Weighted average shares outstanding:
Basic 30,415 30,374 30,710 30,017
Diluted 30,932 30,986 31,234 30,677
 
Dividends per share: $ 0.12   $ 0.10   $ 0.36   $ 0.30  
 
 
 
 
 
 
Forward Air Corporation
Components of Consolidated Revenue and Purchased Transportation
(In thousands)
(Unaudited)
                       
Three months ended
September 30, Percent of September 30, Percent of Percent
2014     Revenue 2013     Revenue Change     Change
Operating Revenue
Forward Air
Airport-to-airport $ 111,429 69.6 % $ 101,238 78.6 % $ 10,191 10.1 %
Logistics services
Expedited full truckload - TLX 19,955 12.5 19,138 14.9 817 4.3
Intermodal/drayage   15,799       9.9     1,090       0.8     14,709       1,349.4  
Total Logistics services 35,754 22.4 20,228 15.7 15,526 76.8
Other Forward Air services   12,902       8.0     7,325       5.7     5,577       76.1  
Forward Air - Total revenue   160,085       79.4     128,791       75.8     31,294       24.3  
TQI - Pharmaceutical services 12,029 6.0 12,431 7.3 (402 ) (3.2 )
Forward Air Solutions - Pool distribution 30,615 15.2 29,827 17.5 788 2.6
Intersegment eliminations   (1,252 )     (0.6 )   (1,016 )     (0.6 )   (236 )     23.2  
Consolidated operating revenue $ 201,477       100.0 % $ 170,033       100.0 % $ 31,444       18.5 %
 
 
Three months ended
September 30, Percent of September 30, Percent of Percent
2014     Revenue 2013     Revenue Change     Change
Purchased Transportation
Forward Air
Airport-to-airport $ 47,720 42.8 % $ 42,542 42.0 % $ 5,178 12.2 %
Logistics services
Expedited full truckload - TLX 15,048 75.4 14,545 76.0 503 3.5
Intermodal/drayage   5,966       37.8     708       65.0     5,258       742.7  
Total Logistics services 21,014 58.8 15,253 75.4 5,761 37.8
Other Forward Air services   3,191       24.7     2,116       28.9     1,075       50.8  
Forward Air - Total purchased transportation   71,925       44.9     59,911       46.5     12,014       20.1  
TQI - Pharmaceutical services 6,018 50.0 6,921 55.7 (903 ) (13.0 )
Forward Air Solutions - Pool distribution 8,767 28.6 9,094 30.5 (327 ) (3.6 )
Intersegment eliminations   (836 )     66.8     (715 )     70.4     (121 )     16.9  
Consolidated purchased transportation $ 85,874       42.6 % $ 75,211       44.2 % $ 10,663       14.2 %
 
 
 
 
 
 
Forward Air Corporation
Components of Consolidated Revenue and Purchased Transportation
(In thousands)
(Unaudited)
                       
Nine months ended
September 30, Percent of September 30, Percent of Percent
2014     Revenue 2013     Revenue Change     Change
Operating Revenue
Forward Air
Airport-to-airport $ 317,147 70.7 % $ 289,163 78.4 % $ 27,984 9.7 %
Logistics services
Expedited full truckload - TLX 56,582 12.6 55,219 15.0 1,363 2.5
Intermodal/drayage   39,146       8.7     3,801       1.0     35,345       929.9  
Total Logistics services 95,728 21.3 59,020 16.0 36,708 62.2
Other Forward Air services   35,663       8.0     20,797       5.6     14,866       71.5  
Forward Air - Total revenue   448,538       79.1     368,980       78.3     79,558       21.6  
TQI - Pharmaceutical services 36,771 6.5 28,545 6.1 8,226 28.8
Forward Air Solutions - Pool distribution 84,872 15.0 76,381 16.1 8,491 11.1
Intersegment eliminations   (3,284 )     (0.6 )   (2,510 )     (0.5 )   (774 )     30.8  
Consolidated operating revenue $ 566,897       100.0 % $ 471,396       100.0 % $ 95,501       20.3 %
 
 
Nine months ended
September 30, Percent of September 30, Percent of Percent
2014     Revenue 2013     Revenue Change     Change
Purchased Transportation
Forward Air
Airport-to-airport $ 133,245 42.0 % $ 119,007 41.2 % $ 14,238 12.0 %
Logistics services
Expedited full truckload - TLX 43,419 76.7 41,579 75.3 1,840 4.4
Intermodal/drayage   15,859       40.5     2,328       61.2     13,531       581.2  
Total Logistics services 59,278 61.9 43,907 74.4 15,371 35.0
Other Forward Air services   8,774       24.6     6,006       28.9     2,768       46.1  
Forward Air - Total purchased transportation   201,297       44.9     168,920       45.8     32,377       19.2  
TQI - Pharmaceutical services 18,698 50.8 15,835 55.5 2,863 18.1
Forward Air Solutions - Pool distribution 24,681 29.1 23,621 30.9 1,060 4.5
Intersegment eliminations   (2,417 )     73.6     (1,914 )     76.3     (503 )     26.3  
Consolidated purchased transportation $ 242,259       42.7 % $ 206,462       43.8 % $ 35,797       17.3 %
 
 
 
 
 
 
Forward Air Corporation
Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
   

September 30,

2014

   

December 31,

2013(a)

Assets
Current assets:
Cash and cash equivalents $ 24,573 $ 127,367
Accounts receivable, net 100,016 76,500
Other current assets   14,057   16,493
Total current assets 138,646 220,360
 
Property and equipment 303,755 271,050
Less accumulated depreciation and amortization   127,259   116,287
Net property and equipment 176,496 154,763
Goodwill and other acquired intangibles:
Goodwill 140,678 88,496
Other acquired intangibles, net of accumulated amortization   71,778   40,110
Total net goodwill and other acquired intangibles 212,456 128,606
Other assets   2,347   2,540
Total assets $ 529,945 $ 506,269
 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable $ 21,395 $ 16,267
Accrued expenses 23,356 18,275
Current portion of debt and capital lease obligations   280   69
Total current liabilities 45,031 34,611
 
Debt and capital lease obligations, less current portion 1,346 3
Other long-term liabilities 8,148 8,940
Deferred income taxes 28,838 26,850
 
Shareholders’ equity:
Common stock 302 305
Additional paid-in capital 126,516 107,726
Retained earnings   319,764   327,834
Total shareholders’ equity   446,582   435,865
Total liabilities and shareholders’ equity $ 529,945 $ 506,269
 
(a) Taken from audited financial statements, which are not presented in their entirety.
 
 
 
 
 
 
Forward Air Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
   
Three months ended

September 30,

2014

   

September 30,

2013

Operating activities:
Net income $ 16,744 $ 14,197
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization 8,115 6,220
Share-based compensation 1,676 1,525
Gain on disposal of property and equipment (329 ) (185 )
Provision for loss (recovery) on receivables 46 (56 )
Provision for revenue adjustments 646 579
Deferred income tax 156 1,722
Excess tax benefit for stock options exercised 353 (337 )
Changes in operating assets and liabilities
Accounts receivable (3,148 ) (7,458 )
Prepaid expenses and other current assets 1,032 515
Accounts payable and accrued expenses   587     6,515  
Net cash provided by operating activities 25,878 23,237
 
Investing activities:
Proceeds from disposal of property and equipment 1,120 617
Purchases of property and equipment (3,681 ) (5,272 )
Acquisition of business, net of cash acquired (1,350 )
Other   246     (51 )
Net cash used in investing activities (3,665 ) (4,706 )
 
Financing activities:
Payments of debt and capital lease obligations (84 ) (48 )
Proceeds from exercise of stock options 1,503 1,687
Payments of cash dividends (3,662 ) (3,057 )
Repurchase of common stock (repurchase program) (19,987 )
Excess tax benefit for stock options exercised   (353 )   337  
Net cash used in financing activities   (22,583 )   (1,081 )
Net (decrease) increase in cash (370 ) 17,450
Cash at beginning of period   24,943     81,101  
Cash at end of period $ 24,573   $ 98,551  
 
 
 
 
 
 
Forward Air Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
   
Nine months ended

September 30,

2014

   

September 30,

2013

Operating activities:
Net income $ 44,123 $ 38,882
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization 22,879 17,377
Share-based compensation 5,005 4,619
Gain on disposal of property and equipment (441 ) (468 )
Provision for (recovery) loss on receivables (39 ) 234
Provision for revenue adjustments 1,896 1,705
Deferred income tax 1,729 4,658
Excess tax benefit for stock options exercised (554 ) (3,207 )
Changes in operating assets and liabilities
Accounts receivable (15,875 ) (4,262 )
Prepaid expenses and other current assets (1,397 ) (1,575 )
Accounts payable and accrued expenses   7,767     2,524  
Net cash provided by operating activities 65,093 60,487
 
Investing activities:
Proceeds from disposal of property and equipment 1,582 1,665
Purchases of property and equipment (37,101 ) (33,266 )
Acquisition of business, net of cash acquired (84,348 ) (45,328 )
Other   53     (111 )
Net cash used in investing activities (119,814 ) (77,040 )
 
Financing activities:
Payments of debt and capital lease obligations (9,662 ) (20,351 )
Proceeds from exercise of stock options 13,083 29,866
Payments of cash dividends (11,141 ) (9,071 )
Repurchase of common stock (repurchase program) (39,972 )
Common stock issued under employee stock purchase plan 148 137
Cash settlement of share-based awards for minimum tax withholdings (1,083 ) (866 )
Excess tax benefit for stock options exercised   554     3,207  
Net cash (used in) provided by financing activities   (48,073 )   2,922  
Net decrease in cash (102,794 ) (13,631 )
Cash at beginning of period   127,367     112,182  
Cash at end of period $ 24,573   $ 98,551  
 
 
 
 
 
 
Forward Air Corporation
Segment Information
(In millions)
(Unaudited)
 
    Three months ended
September 30,     Percent of     September 30,     Percent of         Percent
2014 Revenue 2013 Revenue Change Change
Operating revenue
Forward Air $ 160.1 79.4 % $ 128.8 75.8 % $ 31.3 24.3 %
FASI 30.6 15.2 29.8 17.5 0.8 2.7
TQI 12.0 6.0 12.4 7.3 (0.4 ) (3.2 )
Intercompany eliminations   (1.2 ) (0.6 )   (1.0 ) (0.6 )   (0.2 ) 20.0  
Total   201.5   100.0     170.0   100.0     31.5   18.5  
 
Purchased transportation
Forward Air 71.9 44.9 59.9 46.5 12.0 20.0
FASI 8.8 28.8 9.1 30.5 (0.3 ) (3.3 )
TQI 6.0 50.0 6.9 55.6 (0.9 ) (13.0 )
Intercompany eliminations   (0.8 ) 66.7     (0.7 ) 70.0     (0.1 ) 14.3  
Total   85.9   42.6     75.2   44.2     10.7   14.2  
 
Salaries, wages and employee benefits
Forward Air 33.1 20.7 27.3 21.2 5.8 21.2
FASI 10.4 34.0 10.0 33.6 0.4 4.0
TQI   2.2   18.3     1.8   14.5     0.4   22.2  
Total   45.7   22.7     39.1   23.0     6.6   16.9  
 
Operating leases
Forward Air 6.5 4.1 4.9 3.8 1.6 32.7
FASI 2.0 6.5 2.1 7.0 (0.1 ) (4.8 )
TQI                  
Total   8.5   4.2     7.0   4.1     1.5   21.4  
 
Depreciation and amortization
Forward Air 5.7 3.6 4.2 3.3 1.5 35.7
FASI 1.5 4.9 1.3 4.4 0.2 15.4
TQI   0.9   7.5     0.7   5.7     0.2   28.6  
Total   8.1   4.0     6.2   3.7     1.9   30.6  
 
Insurance and claims
Forward Air 3.1 1.9 2.3 1.8 0.8 34.8
FASI 0.4 1.3 0.8 2.7 (0.4 ) (50.0 )
TQI   0.2   1.7     0.2   1.6        
Total   3.7   1.9     3.3   1.9     0.4   12.1  
 
Fuel expense
Forward Air 2.1 1.3 0.9 0.7 1.2 133.3
FASI 1.8 5.9 1.7 5.7 0.1 5.9
TQI   1.1   9.2     1.3   10.5     (0.2 ) (15.4 )
Total   5.0   2.5     3.9   2.3     1.1   28.2  
 
Other operating expenses
Forward Air 13.5 8.4 8.7 6.7 4.8 55.2
FASI 3.9 12.7 3.4 11.4 0.5 14.7
TQI 0.7 5.8 0.6 4.8 0.1 16.7
Intercompany eliminations   (0.4 ) 33.3     (0.3 ) 30.0     (0.1 ) 33.3  
Total   17.7   8.8     12.4   7.3     5.3   42.7  
 
Income from operations
Forward Air 24.2 15.1 20.6 16.0 3.6 17.5
FASI 1.8 5.9 1.4 4.7 0.4 28.6
TQI   0.9   7.5     0.9   7.3        
Total $ 26.9   13.3 % $ 22.9   13.5 % $ 4.0   17.5 %
 
 
 
 
 
 
Forward Air Corporation
Segment Information
(In millions)
(Unaudited)
 
    Nine months ended
September 30,     Percent of     September 30,     Percent of         Percent
2014 Revenue 2013 Revenue Change Change
Operating revenue
Forward Air $ 448.5 79.1 % $ 369.0 78.3 % $ 79.5 21.5 %
FASI 84.9 15.0 76.4 16.2 8.5 11.1
TQI 36.8 6.5 28.5 6.0 8.3 29.1
Intercompany eliminations   (3.3 ) (0.6 )   (2.5 ) (0.5 )   (0.8 ) 32.0  
Total   566.9   100.0     471.4   100.0     95.5   20.3  
 
Purchased transportation
Forward Air 201.3 44.9 168.9 45.8 32.4 19.2
FASI 24.6 29.0 23.6 30.9 1.0 4.2
TQI 18.7 50.8 15.9 55.8 2.8 17.6
Intercompany eliminations   (2.4 ) 72.7     (1.9 ) 76.0     (0.5 ) 26.3  
Total   242.2   42.7     206.5   43.8     35.7   17.3  
 
Salaries, wages and employee benefits
Forward Air 96.1 21.4 78.0 21.1 18.1 23.2
FASI 29.0 34.2 26.8 35.1 2.2 8.2
TQI   6.4   17.4     4.4   15.4     2.0   45.5  
Total   131.5   23.2     109.2   23.2     22.3   20.4  
 
Operating leases
Forward Air 18.4 4.1 14.9 4.0 3.5 23.5
FASI 6.5 7.7 5.9 7.7 0.6 10.2
TQI   0.1   0.3     0.1   0.4        
Total   25.0   4.4     20.9   4.4     4.1   19.6  
 
Depreciation and amortization
Forward Air 16.0 3.6 12.1 3.3 3.9 32.2
FASI 4.2 4.9 3.6 4.7 0.6 16.7
TQI   2.7   7.3     1.7   6.0     1.0   58.8  
Total   22.9   4.0     17.4   3.7     5.5   31.6  
 
Insurance and claims
Forward Air 8.7 1.9 6.5 1.8 2.2 33.8
FASI 1.8 2.1 2.3 3.0 (0.5 ) (21.7 )
TQI   0.5   1.4     0.4   1.4     0.1   25.0  
Total   11.0   2.0     9.2   1.9     1.8   19.6  
 
Fuel expense
Forward Air 6.2 1.4 2.9 0.8 3.3 113.8
FASI 5.3 6.2 4.8 6.3 0.5 10.4
TQI   3.5   9.5     2.8   9.8     0.7   25.0  
Total   15.0   2.6     10.5   2.2     4.5   42.9  
 
Other operating expenses
Forward Air 37.0 8.3 26.9 7.3 10.1 37.5
FASI 10.7 12.6 9.0 11.8 1.7 18.9
TQI 1.7 4.6 1.3 4.5 0.4 30.8
Intercompany eliminations   (0.9 ) 27.3     (0.6 ) 24.0     (0.3 ) 50.0  
Total   48.5   8.6     36.6   7.8     11.9   32.5  
 
Income from operations
Forward Air 64.8 14.4 58.8 15.9 6.0 10.2
FASI 2.8 3.3 0.4 0.5 2.4 600.0
TQI   3.2   8.7     1.9   6.7     1.3   68.4  
Total $ 70.8   12.5 % $ 61.1   13.0 % $ 9.7   15.9 %
 
 
 
 
 
 
Forward Air Corporation
Forward Air Inc. Operating Statistics
           
Three months ended
September 30, September 30, Percent
2014 2013 Change
 
Operating ratio 84.9 % 84.0 % 1.1 %
 
Business days 64.0 64.0
Business weeks 12.8 12.8
 
 
Airport-to-airport:
Tonnage

Total pounds1

484,827 462,297 4.9

Average weekly pounds1

37,877 36,117 4.9
 
Linehaul shipments
Total linehaul 734,163 688,257 6.7
Average weekly 57,356 53,770 6.7
 
Forward Air Complete shipments 146,024 124,184 17.6
As a percentage of linehaul shipments 19.9 % 18.0 % 10.6
 
Average linehaul shipment size 660 672 (1.8 )
 

Revenue per pound2

Linehaul yield $ 17.69 $ 16.97 3.3
Fuel surcharge impact 1.94 1.85 0.4
Forward Air Complete impact   3.35     3.08   1.2  
Total airport-to-airport yield $ 22.98 $ 21.90 4.9
 
 
Expedited full truckload - TLX:
Miles

Owner operator1

6,391 8,915 (28.3 )

Third party1

  4,895     3,815   28.3  
Total Miles 11,286 12,730 (11.3 )
 
Revenue per mile $ 1.77 $ 1.50 18.0
 
Cost per mile $ 1.33 $ 1.14 16.7 %
 
 

1 - In thousands

2 - In dollars per hundred pound; percentage change is expressed as a percent of total yield.

 
 
 
 
 
 
Forward Air Corporation
Forward Air Inc. Operating Statistics
           
Nine months ended
September 30, September 30, Percent
2014 2013 Change
 
Operating ratio 85.6 % 84.1 % 1.8 %
 
Business days 191.0 191.0
Business weeks 38.2 38.2
 
 
Airport-to-airport:
Tonnage

Total pounds1

1,399,687 1,320,382 6.0

Average weekly pounds1

36,641 34,565 6.0
 
Linehaul shipments
Total linehaul 2,127,645 2,038,599 4.4
Average weekly 55,698 53,366 4.4
 
Forward Air Complete shipments 393,170 353,270 11.3
As a percentage of linehaul shipments 18.5 % 17.3 % 6.9
 
Average linehaul shipment size 658 648 1.5
 

Revenue per pound2

Linehaul yield $ 17.56 $ 17.08 2.2
Fuel surcharge impact 2.00 1.92 0.4
Forward Air Complete impact   3.10     2.90   0.9  
Total airport-to-airport yield $ 22.66 $ 21.90 3.5
 
 
Expedited full truckload - TLX:
Miles

Owner operator1

20,288 26,399 (23.1 )

Third party1

  13,547     10,663   27.0  
Total Miles 33,835 37,062 (8.7 )
 
Revenue per mile $ 1.67 $ 1.49 12.1
 
Cost per mile $ 1.28 $ 1.12 14.3 %
 
 

1 - In thousands

2 - In dollars per hundred pound; percentage change is expressed as a percent of total yield.

 
 
 
 
 

Important Information

This press release contains “forward-looking statements,” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements other than historical information or statements of current condition and relate to future events or our future financial performance. Some forward-looking statements may be identified by use of such terms as “believes,” “anticipates,” “intends,” “plans,” “estimates,” “projects” or “expects.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The following is a list of factors, among others, that could cause actual results to differ materially from those contemplated by the forward-looking statements: economic factors such as recessions, inflation, higher interest rates and downturns in customer business cycles, our inability to maintain our historical growth rate because of a decreased volume of freight moving through our network or decreased average revenue per pound of freight moving through our network, increasing competition and pricing pressure, surplus inventories, loss of a major customer, the creditworthiness of our customers and their ability to pay for services rendered, our ability to secure terminal facilities in desirable locations at reasonable rates, the inability of our information systems to handle an increased volume of freight moving through our network, changes in fuel prices, claims for property damage, personal injuries or workers’ compensation, employment matters including rising health care costs, enforcement of and changes in governmental regulations, environmental and tax matters, the handling of hazardous materials, the availability and compensation of qualified independent owner-operators and freight handlers needed to serve our transportation needs and our inability to successfully integrate acquisitions. As a result of the foregoing, no assurance can be given as to future financial condition, cash flows or results of operations. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Forward Air Corporation
Rodney L. Bell, 423-636-7000
rbell@forwardair.com

Source: Forward Air Corporation