Forward Air Corporation Reports Record Fourth Quarter and Fiscal 2015 Results and Quarterly Cash Dividend
Forward Air Corporation Reports Record Fourth Quarter and Fiscal 2015 Results and Quarterly Cash Dividend
GREENEVILLE, Tenn.--(BUSINESS WIRE)-- Forward Air Corporation (NASDAQ:FWRD) today reported results for the fourth quarter and year ended December 31, 2015.
Operating revenue for the quarter ended December 31, 2015 increased 19.8% to $256.4 million from $214.1 million for the same quarter in 2014. Income from operations was $29.0 million, compared with $25.6 million for the fourth quarter of 2014, an increase of 13.3%. Net income per diluted share for the fourth quarter of 2015 was $0.75 compared with $0.55 in the same quarter of 2014.
Operating revenue for the year ended December 31, 2015 increased 22.8% to $959.1 million from $781.0 million for the year ended December 31, 2014. Income from operations was $81.8 million, compared with $96.4 million in 2014. Net income per diluted share for the year ended December 31, 2015 was $1.78 compared with $1.96 in 2014.
Revenues, income from operations and income per diluted share for the fourth quarter were Company records. Also, revenue for the full year 2015 was a Company record. As presented in the supplemental schedules within this press release, on an adjusted basis, this is the highest full year income from operations, net income and income per diluted share in the Company’s history.
Bruce A. Campbell, Chairman, President and CEO, said, “Overall we were very pleased with our performance in the fourth quarter and more importantly feel confident we have advantageously positioned the Company for superior results in 2016.”
Addressing the Forward Air, Inc. business segment, Mr. Campbell said, “We expect to continue benefiting from pricing changes, cost cutting and operational efficiencies implemented in the third quarter of 2015. Additionally, we are now benefiting from our February 1st change to our dimensional weight factor. This change targets less dense, more difficult to handle freight that is therefore more costly. The impact of this change will be an increase in billed tonnage with little or no increase in cost.”
Moving to the Central States Trucking (CST) service offering, Mr. Campbell said, “CST, which is our final mile intermodal service offering, finished the year with $104.3 million in revenue, $12.3 million in operating income and an 88.2 operating ratio. We continue to see good organic intermodal growth and since acquiring CST in early 2014 we have made three additional tuck in acquisitions. With good legacy volumes and a robust deal pipeline we continue to view CST as a growth platform.”
Turning to our TQI and Solutions business segments, Mr. Campbell said, “After absorbing new business start-up costs Forward Air Solutions performed as expected in the fourth quarter. TQI continued to struggle in the fourth quarter but we are starting to see improvements driven by recently implemented initiatives.”
In closing Mr. Campbell said, “After meeting the challenges that followed completion of our largest acquisition in the Company’s history in 2015 it was extremely gratifying for our team to post record fourth quarter and full year results. A lot of time and effort went into achieving these milestones and I am very grateful to the employees and contractors who contributed to this success. Our entire team is looking forward to bringing even more value to our shareholders in 2016 and beyond.”
Commenting further on the fourth quarter results Rodney L. Bell, Senior Vice President and CFO said, “After adding back $0.01 of Towne related deal costs, we posted $0.76 for the quarter against a guidance midpoint of $0.64. The majority of that difference is related to amending of prior year tax returns in order to obtain technology-related permanent tax deductions. This resulted in a $0.17 per share tax benefit offset in part by $0.02 per share in related costs included in operating income. The remaining variance as compared to our guidance midpoint was a $0.02 per share negative impact from the lower than modeled impact of net fuel surcharges and $0.01 per share attributed to a lower than expected contribution from our TQI segment.”
Commenting further Mr. Bell said, “In 2016 and subsequent years the annual benefit of the technology-related tax deduction should be approximately $1.0 million or $0.03 per share. We expect our 2016 effective tax rate will be approximately 37.5%.”
In commenting on the Company's guidance for the first quarter, Mr. Bell said, “We anticipate our first quarter 2016 revenues will increase in the range of 10% to 12% over the comparable 2015 period, and we expect income per diluted share to be between $0.41 and $0.45 per share. This compares to $0.40 which, in the first quarter of 2015, includes the addback of Towne deal costs. Our guidance includes approximately $0.03 to $0.04 per share of estimated negative impact from the expected decline in our net fuel surcharges.”
On February 9, 2016, 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 March 10, 2016, and is expected to be paid on March 28, 2016.
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 fourth quarter 2015 results on Wednesday, February 10, 2016 at 9:00 a.m. EST. The Company's conference call will be available online at www.forwardair.com or by dialing (800) 230-1096. 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, Forward Air Solutions and Total Quality.
Through our Forward Air segment, we provide time-definite surface transportation and related logistics services to the North American expedited ground freight market. Our licensed property broker utilizes qualified motor carriers, including our own, and other third-party transportation companies, to offer our customers local pick-up and delivery (Forward Air Complete®) 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 less time-sensitive than traditional air freight. This type of cargo is frequently referred to in the transportation industry as deferred air freight. We also offer our customers an array of logistics and other services including: expedited full truckload (TLX); dedicated fleets; warehousing; customs brokerage; and shipment consolidation, deconsolidation and handling. Also included in the Forward Air segment are the services performed by Central States Trucking Co. and Central States Logistics, Inc. (“CST”), which we acquired in 2014. CST provides intermodal drayage, devanning, transloading and warehousing services.
Through our Forward Air Solutions segment, we provide pool distribution services throughout the Mid-Atlantic, Southeast, Midwest and Southwest continental United States. Pool distribution involves managing high-frequency, last mile handling and distribution of time-sensitive products to numerous destinations in specific geographic regions. Our primary customers for pool distribution are regional and nationwide distributors and specialty retailers, such as mall, strip mall and outlet-based retail chains.
Total Quality ("TQI"), provides maximum security and temperature-controlled logistics services, primarily truckload services, to the life sciences sector (pharmaceutical and biotechnology products). In addition to core pharmaceutical services and other cold chain services, TQI provides truckload and less-than-truckload brokerage transportation services.
| Forward Air Corporation | ||||||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three months ended | Year ended | |||||||||||||||||||
|
December 31, |
December 31, 2014 |
December 31, 2015 |
December 31, 2014 |
|||||||||||||||||
| Operating revenue | $ | 256,420 | $ | 214,062 | $ | 959,125 | $ | 780,959 | ||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Purchased transportation | 107,516 | 92,317 | 408,769 | 334,576 | ||||||||||||||||
| Salaries, wages and employee benefits | 65,789 | 50,641 | 240,604 | 182,105 | ||||||||||||||||
| Operating leases | 15,167 | 8,975 | 66,272 | 33,994 | ||||||||||||||||
| Depreciation and amortization | 9,556 | 8,254 | 37,157 | 31,133 | ||||||||||||||||
| Insurance and claims | 4,951 | 4,758 | 21,483 | 15,736 | ||||||||||||||||
| Fuel expense | 3,869 | 5,158 | 15,903 | 20,148 | ||||||||||||||||
| Other operating expenses | 20,557 | 18,324 | 87,165 | 66,861 | ||||||||||||||||
| Total operating expenses | 227,405 | 188,427 | 877,353 | 684,553 | ||||||||||||||||
| Income from operations | 29,015 | 25,635 | 81,772 | 96,406 | ||||||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Interest expense | (558 | ) | (255 | ) | (2,047 | ) | (610 | ) | ||||||||||||
| Other, net | 68 | 145 | (58 | ) | 289 | |||||||||||||||
| Total other expense | (490 | ) | (110 | ) | (2,105 | ) | (321 | ) | ||||||||||||
| Income before income taxes | 28,525 | 25,525 | 79,667 | 96,085 | ||||||||||||||||
| Income taxes | 5,297 | 8,479 | 24,092 | 34,916 | ||||||||||||||||
| Net income | $ | 23,228 | $ | 17,046 | $ | 55,575 | $ | 61,169 | ||||||||||||
| Net income per share: | ||||||||||||||||||||
| Basic | $ | 0.75 | $ | 0.56 | $ | 1.80 | $ | 1.99 | ||||||||||||
| Diluted | $ | 0.75 | $ | 0.55 | $ | 1.78 | $ | 1.96 | ||||||||||||
| Dividends per share: | $ | 0.12 | $ | 0.12 | $ | 0.48 | $ | 0.48 | ||||||||||||
| Forward Air Corporation | |||||||||||||||||||||||||||
| Components of Consolidated Operating Revenue and Purchased Transportation | |||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| Three months ended | |||||||||||||||||||||||||||
| December 31, | Percent of | December 31, | Percent of | Percent | |||||||||||||||||||||||
| 2015 | Revenue | 2014 | Revenue | Change | Change | ||||||||||||||||||||||
| Operating Revenue | |||||||||||||||||||||||||||
| Forward Air | |||||||||||||||||||||||||||
| Airport-to-airport | $ | 136.0 | 65.9 | % | $ | 112.2 | 68.5 | % | $ | 23.8 | 21.2 | % | |||||||||||||||
| Logistics services | |||||||||||||||||||||||||||
| Expedited full truckload - TLX | 31.8 | 15.4 | 21.1 | 12.9 | 10.7 | 50.7 | |||||||||||||||||||||
| Intermodal/drayage | 19.1 | 9.3 | 16.2 | 9.9 | 2.9 | 17.9 | |||||||||||||||||||||
| Total Logistics services | 50.9 | 24.7 | 37.3 | 22.8 | 13.6 | 36.5 | |||||||||||||||||||||
| Other Forward Air services | 19.5 | 9.4 | 14.3 | 8.7 | 5.2 | 36.4 | |||||||||||||||||||||
| Forward Air - Total revenue | 206.4 | 80.5 | 163.8 | 76.5 | 42.6 | 26.0 | |||||||||||||||||||||
| TQI - Pharmaceutical services | 9.1 | 3.5 | 12.1 | 5.6 | (3.0 | ) | (24.8 | ) | |||||||||||||||||||
| Forward Air Solutions - Pool distribution | 43.0 | 16.8 | 40.3 | 18.9 | 2.7 | 6.7 | |||||||||||||||||||||
| Intersegment eliminations | (2.1 | ) | (0.8 | ) | (2.1 | ) | (1.0 | ) | — | — | |||||||||||||||||
| Consolidated operating revenue | $ | 256.4 | 100.0 |
% |
$ | 214.1 | 100.0 | % | $ | 42.3 | 19.8 | % | |||||||||||||||
| Three months ended | |||||||||||||||||||||||||||
| December 31, | Percent of | December 31, | Percent of | Percent | |||||||||||||||||||||||
| 2015 | Revenue | 2014 | Revenue | Change | Change | ||||||||||||||||||||||
| Purchased Transportation | |||||||||||||||||||||||||||
| Forward Air | |||||||||||||||||||||||||||
| Airport-to-airport | $ | 57.5 | 42.3 | % | $ | 50.0 | 44.6 |
% |
$ | 7.5 | 15.0 | % | |||||||||||||||
| Logistics services | |||||||||||||||||||||||||||
| Expedited full truckload - TLX | 23.9 | 75.2 | 16.4 | 77.7 | 7.5 | 45.7 | |||||||||||||||||||||
| Intermodal/drayage | 7.6 | 39.8 | 5.9 | 36.4 | 1.7 | 28.8 | |||||||||||||||||||||
| Total Logistics services | 31.5 | 61.9 | 22.3 | 59.8 | 9.2 | 41.3 | |||||||||||||||||||||
| Other Forward Air services | 5.3 | 27.2 | 3.7 | 25.9 | 1.6 | 43.2 | |||||||||||||||||||||
| Forward Air - Total purchased transportation | 94.3 | 45.7 | 76.0 | 46.4 | 18.3 | 24.1 | |||||||||||||||||||||
| TQI - Pharmaceutical services | 3.5 | 38.5 | 6.0 | 49.6 | (2.5 | ) | (41.7 | ) | |||||||||||||||||||
| Forward Air Solutions - Pool distribution | 11.2 | 26.0 | 11.9 | 29.5 | (0.7 | ) | (5.9 | ) | |||||||||||||||||||
| Intersegment eliminations | (1.5 | ) | 71.4 | (1.6 | ) | 76.2 | 0.1 | (6.3 | ) | ||||||||||||||||||
| Consolidated purchased transportation | $ | 107.5 | 41.9 | % | $ | 92.3 | 43.1 | % | $ | 15.2 | 16.5 | % | |||||||||||||||
| Forward Air Corporation | |||||||||||||||||||||||||||
| Components of Consolidated Operating Revenue and Purchased Transportation | |||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| Year ended | |||||||||||||||||||||||||||
| December 31, | Percent of | December 31, | Percent of | Percent | |||||||||||||||||||||||
| 2015 | Revenue | 2014 | Revenue | Change | Change | ||||||||||||||||||||||
| Operating Revenue | |||||||||||||||||||||||||||
| Forward Air | |||||||||||||||||||||||||||
| Airport-to-airport | $ | 523.9 | 66.1 | % | $ | 429.4 | 70.1 | % | $ | 94.5 | 22.0 | % | |||||||||||||||
| Logistics services | |||||||||||||||||||||||||||
| Expedited full truckload - TLX | 110.9 | 14.0 | 77.7 | 12.7 | 33.2 | 42.7 | |||||||||||||||||||||
| Intermodal/drayage | 81.7 | 10.3 | 55.3 | 9.0 | 26.4 | 47.7 | |||||||||||||||||||||
| Total Logistics services | 192.6 | 24.3 | 133.0 | 21.7 | 59.6 | 44.8 | |||||||||||||||||||||
| Other Forward Air services | 76.3 | 9.6 | 50.0 | 8.2 | 26.3 | 52.6 | |||||||||||||||||||||
| Forward Air - Total revenue | 792.8 | 82.7 | 612.4 | 78.4 | 180.4 | 29.5 | |||||||||||||||||||||
| TQI - Pharmaceutical services | 42.4 | 4.4 | 48.8 | 6.3 | (6.4 | ) | (13.1 | ) | |||||||||||||||||||
| Forward Air Solutions - Pool distribution | 130.0 | 13.5 | 125.2 | 16.0 | 4.8 | 3.8 | |||||||||||||||||||||
| Intersegment eliminations | (6.1 | ) | (0.6 | ) | (5.4 | ) | (0.7 | ) | (0.7 | ) | 13.0 | ||||||||||||||||
| Consolidated operating revenue | $ | 959.1 | 100.0 | % | $ | 781.0 | 100.0 | % | $ | 178.1 | 22.8 | % | |||||||||||||||
| Year ended | |||||||||||||||||||||||||||
| December 31, | Percent of | December 31, | Percent of | Percent | |||||||||||||||||||||||
| 2015 | Revenue | 2014 | Revenue | Change | Change | ||||||||||||||||||||||
| Purchased Transportation | |||||||||||||||||||||||||||
| Forward Air | |||||||||||||||||||||||||||
| Airport-to-airport | $ | 225.6 | 43.1 | % | $ | 183.3 | 42.7 | % | $ | 42.3 | 23.1 | % | |||||||||||||||
| Logistics services | |||||||||||||||||||||||||||
| Expedited full truckload - TLX | 81.0 | 73.0 | 59.8 | 77.0 | 21.2 | 35.5 | |||||||||||||||||||||
| Intermodal/drayage | 30.6 | 37.5 | 21.7 | 39.2 | 8.9 | 41.0 | |||||||||||||||||||||
| Total Logistics services | 111.6 | 57.9 | 81.5 | 61.3 | 30.1 | 36.9 | |||||||||||||||||||||
| Other Forward Air services | 21.7 | 28.4 | 12.5 | 25.0 | 9.2 | 73.6 | |||||||||||||||||||||
| Forward Air - Total purchased transportation | 358.9 | 45.3 | 277.3 | 45.3 | 81.6 | 29.4 | |||||||||||||||||||||
| TQI - Pharmaceutical services | 19.2 | 45.3 | 24.7 | 50.6 | (5.5 | ) | (22.3 | ) | |||||||||||||||||||
| Forward Air Solutions - Pool distribution | 35.0 | 26.9 | 36.6 | 29.3 | (1.6 | ) | (4.4 | ) | |||||||||||||||||||
| Intersegment eliminations | (4.3 | ) | 70.5 | (4.0 | ) | 74.1 | (0.3 | ) | 7.5 | ||||||||||||||||||
| Consolidated purchased transportation | $ | 408.8 | 42.6 | % | $ | 334.6 | 42.8 | % | $ | 74.2 | 22.2 | % | |||||||||||||||
| Forward Air Corporation | |||||||||
| Consolidated Balance Sheets | |||||||||
| (In thousands) | |||||||||
| (Unaudited) | |||||||||
|
December 31, 2015 |
December 31,
2014 (a) |
||||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 33,312 | $ | 41,429 | |||||
| Accounts receivable, net | 109,165 | 95,326 | |||||||
| Other current assets | 30,980 | 10,704 | |||||||
| Total current assets | 173,457 | 147,459 | |||||||
| Property and equipment | 343,147 | 305,188 | |||||||
| Less accumulated depreciation and amortization | 155,859 | 132,699 | |||||||
| Net property and equipment | 187,288 | 172,489 | |||||||
| Goodwill and other acquired intangibles: | |||||||||
| Goodwill | 205,609 | 144,412 | |||||||
| Other acquired intangibles, net of accumulated amortization | 127,800 | 72,705 | |||||||
| Total net goodwill and other acquired intangibles | 333,409 | 217,117 | |||||||
| Other assets | 6,017 | 2,244 | |||||||
| Total assets | $ | 700,171 | $ | 539,309 | |||||
| Liabilities and Shareholders’ Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 23,334 | $ | 20,572 | |||||
| Accrued expenses | 29,823 | 22,583 | |||||||
| Current portion of debt and capital lease obligations | 55,887 | 276 | |||||||
| Total current liabilities | 109,044 | 43,431 | |||||||
| Debt and capital lease obligations, less current portion | 28,856 | 1,275 | |||||||
| Other long-term liabilities | 12,340 | 8,356 | |||||||
| Deferred income taxes | 39,876 | 22,684 | |||||||
| Commitments and contingencies | |||||||||
| Shareholders’ equity: | |||||||||
| Common stock | 305 | 303 | |||||||
| Additional paid-in capital | 160,855 | 130,107 | |||||||
| Retained earnings | 348,895 | 333,153 | |||||||
| Total shareholders’ equity | 510,055 | 463,563 | |||||||
| Total liabilities and shareholders’ equity | $ | 700,171 | $ | 539,309 | |||||
| (a) Taken from audited financial statements, which are not presented in their entirety and have been adjusted to reflect reclasses associated with the early adoption of a new accounting standard. | |||||||||
| Forward Air Corporation | ||||||||||
| Consolidated Statements of Cash Flows | ||||||||||
| (In thousands) | ||||||||||
| (Unaudited) | ||||||||||
| Three months ended | ||||||||||
|
December 31, 2015 |
December 31, 2014 |
|||||||||
| Operating activities: | ||||||||||
| Net income | $ | 23,228 | $ | 17,046 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||
| Depreciation and amortization | 9,556 | 8,254 | ||||||||
| Share-based compensation | 1,924 | 1,677 | ||||||||
| (Gain) loss on disposal of property and equipment | (178 | ) | 58 | |||||||
| Provision for recovery on receivables | (430 | ) | (202 | ) | ||||||
| Provision for revenue adjustments | 1,402 | 569 | ||||||||
| Deferred income taxes | 8,985 | (4,750 | ) | |||||||
| Tax benefit for stock options exercised | (3,048 | ) | (1,555 | ) | ||||||
| Changes in operating assets and liabilities | ||||||||||
| Accounts receivable | 4,537 | 4,164 | ||||||||
| Prepaid expenses and other assets | (12,274 | ) | 5,045 | |||||||
| Accounts payable and accrued expenses | (5,295 | ) | (3,739 | ) | ||||||
| Net cash provided by operating activities | 28,407 | 26,567 | ||||||||
| Investing activities: | ||||||||||
| Proceeds from disposal of property and equipment | 520 | 365 | ||||||||
| Purchases of property and equipment | (21,954 | ) | (2,386 | ) | ||||||
| Acquisition of business | 497 | (5,824 | ) | |||||||
| Other | (164 | ) | (51 | ) | ||||||
| Net cash used in investing activities | (21,101 | ) | (7,896 | ) | ||||||
| Financing activities: | ||||||||||
| Payments of debt and capital lease obligations | (13,985 | ) | (74 | ) | ||||||
| Proceeds from exercise of stock options | 2,962 | 152 | ||||||||
| Payments of cash dividends | (3,688 | ) | (3,654 | ) | ||||||
| Repurchase of common stock (repurchase program) | (9,996 | ) | — | |||||||
| Common stock issued under employee stock purchase plan | 221 | 206 | ||||||||
| Tax benefit for stock options exercised | 3,048 | 1,555 | ||||||||
| Net cash used in by financing activities | (21,438 | ) | (1,815 | ) | ||||||
| Net (decrease) increase in cash | (14,132 | ) | 16,856 | |||||||
| Cash at beginning of period | 47,444 | 24,573 | ||||||||
| Cash at end of period | $ | 33,312 | $ | 41,429 | ||||||
| Forward Air Corporation | ||||||||||
| Consolidated Statements of Cash Flows | ||||||||||
| (In thousands) | ||||||||||
| (Unaudited) | ||||||||||
| Year ended | ||||||||||
|
December 31, 2015 |
December 31, 2014 |
|||||||||
| Operating activities: | ||||||||||
| Net income | $ | 55,575 | $ | 61,169 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||
| Depreciation and amortization | 37,157 | 31,133 | ||||||||
| Share-based compensation | 7,486 | 6,681 | ||||||||
| Gain on disposal of property and equipment | (181 | ) | (383 | ) | ||||||
| Provision for loss on receivables | 33 | 241 | ||||||||
| Provision for revenue adjustments | 4,793 | 2,465 | ||||||||
| Deferred income taxes | 14,531 | (3,021 | ) | |||||||
| Tax benefit for stock options exercised | (5,413 | ) | (2,109 | ) | ||||||
| Changes in operating assets and liabilities, net of acquisition of business | ||||||||||
| Accounts receivable | 5,403 | (12,193 | ) | |||||||
| Prepaid expenses and other assets | (1,378 | ) | (280 | ) | ||||||
| Accounts payable and accrued expenses | (32,284 | ) | 7,957 | |||||||
| Net cash provided by operating activities | 85,722 | 91,660 | ||||||||
| Investing activities: | ||||||||||
| Proceeds from disposal of property and equipment | 1,720 | 1,947 | ||||||||
| Purchases of property and equipment | (40,495 | ) | (39,487 | ) | ||||||
| Acquisition of business, net of cash acquired | (61,878 | ) | (90,172 | ) | ||||||
| Other | (265 | ) | 2 | |||||||
| Net cash used in investing activities | (100,918 | ) | (127,710 | ) | ||||||
| Financing activities: | ||||||||||
| Proceeds from term loan | 125,000 | — | ||||||||
| Payments of debt and capital lease obligations | (101,352 | ) | (9,736 | ) | ||||||
| Proceeds from exercise of stock options | 14,313 | 13,235 | ||||||||
| Payments of cash dividends | (14,821 | ) | (14,795 | ) | ||||||
| Repurchase of common stock (repurchase program) | (19,992 | ) | (39,972 | ) | ||||||
| Common stock issued under employee stock purchase plan | 449 | 354 | ||||||||
| Cash settlement of share-based awards for minimum tax withholdings | (1,931 | ) | (1,083 | ) | ||||||
| Tax benefit for stock options exercised | 5,413 | 2,109 | ||||||||
| Net cash provided by (used in) financing activities | 7,079 | (49,888 | ) | |||||||
| Net decrease in cash | (8,117 | ) | (85,938 | ) | ||||||
| Cash at beginning of year | 41,429 | 127,367 | ||||||||
| Cash at end of year | $ | 33,312 | $ | 41,429 | ||||||
|
Forward Air Corporation Segment Information (In millions) (unaudited) |
|||||||||||||||||||||||||||
| Three months ended December 31 | |||||||||||||||||||||||||||
| Percent of | Percent of | Percent | |||||||||||||||||||||||||
| Forward Air | 2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||||||||
| Operating revenue | $ | 206.4 | 80.5 | % | $ | 163.8 | 76.5 | % | $ | 42.6 | 26.0 | % | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||
| Purchased transportation | 94.3 | 45.7 | 76.0 | 46.4 | 18.3 | 24.1 | |||||||||||||||||||||
| Salaries, wages, and employee benefits | 47.2 | 22.9 | 35.5 | 21.7 | 11.7 | 33.0 | |||||||||||||||||||||
| Operating leases | 11.7 | 5.7 | 6.5 | 4.0 | 5.2 | 80.0 | |||||||||||||||||||||
| Depreciation and amortization | 7.0 | 3.4 | 5.8 | 3.5 | 1.2 | 20.7 | |||||||||||||||||||||
| Insurance and claims | 3.6 | 1.7 | 3.1 | 1.9 | 0.5 | 16.1 | |||||||||||||||||||||
| Fuel expense | 1.6 | 0.8 | 2.1 | 1.3 | (0.5 | ) | (23.8 | ) | |||||||||||||||||||
| Other operating expenses | 15.3 | 7.4 | 13.5 | 8.2 | 1.8 | 13.3 | |||||||||||||||||||||
| Income from operations | $ | 25.7 | 12.4 | % | $ | 21.3 | 13.0 | % | $ | 4.4 | 20.7 | % | |||||||||||||||
| Percent of | Percent of | Percent | |||||||||||||||||||||||||
| FASI | 2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||||||||
| Operating revenue | $ | 43.0 | 16.8 | % | $ | 40.3 | 18.8 | % | $ | 2.7 | 6.7 | % | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||
| Purchased transportation | 11.2 | 26.0 | 11.9 | 29.5 | (0.7 | ) | (5.9 | ) | |||||||||||||||||||
| Salaries, wages, and employee benefits | 15.9 | 37.0 | 13.0 | 32.2 | 2.9 | 22.3 | |||||||||||||||||||||
| Operating leases | 3.5 | 8.1 | 2.5 | 6.2 | 1.0 | 40.0 | |||||||||||||||||||||
| Depreciation and amortization | 1.5 | 3.5 | 1.6 | 4.0 | (0.1 | ) | (6.3 | ) | |||||||||||||||||||
| Insurance and claims | 1.1 | 2.6 | 1.4 | 3.5 | (0.3 | ) | (21.4 | ) | |||||||||||||||||||
| Fuel expense | 1.5 | 3.5 | 2.0 | 5.0 | (0.5 | ) | (25.0 | ) | |||||||||||||||||||
| Other operating expenses | 5.1 | 11.9 | 4.7 | 11.7 | 0.4 | 8.5 | |||||||||||||||||||||
| Income from operations | $ | 3.2 | 7.4 | % | $ | 3.2 | 7.9 | % | $ | — | — | % | |||||||||||||||
| Percent of | Percent of | Percent | |||||||||||||||||||||||||
| TQI | 2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||||||||
| Operating revenue | $ | 9.1 | 3.5 | % | $ | 12.1 | 5.7 | % | $ | (3.0 | ) | (24.8 | )% | ||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||
| Purchased transportation | 3.5 | 38.4 | 6.0 | 49.6 | (2.5 | ) | (41.7 | ) | |||||||||||||||||||
| Salaries, wages, and employee benefits | 2.7 | 29.7 | 2.1 | 17.3 | 0.6 | 28.6 | |||||||||||||||||||||
| Operating leases | — | — | — | — | — | — | |||||||||||||||||||||
| Depreciation and amortization | 1.1 | 12.1 | 0.9 | 7.4 | 0.2 | 22.2 | |||||||||||||||||||||
| Insurance and claims | 0.2 | 2.2 | 0.3 | 2.5 | (0.1 | ) | (33.3 | ) | |||||||||||||||||||
| Fuel expense | 0.8 | 8.8 | 1.1 | 9.1 | (0.3 | ) | (27.3 | ) | |||||||||||||||||||
| Other operating expenses | 0.7 | 7.7 | 0.6 | 5.0 | 0.1 | 16.7 | |||||||||||||||||||||
| Income from operations | $ | 0.1 | 1.1 | % | $ | 1.1 | 9.1 | % | $ | (1.0 | ) | (90.9 | )% | ||||||||||||||
| Percent of | Percent of | Percent | |||||||||||||||||||||||||
| Intercompany Eliminations | 2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||||||||
| Operating revenue | $ | (2.1 | ) | (0.8 | )% | $ | (2.1 | ) | (1.0 | )% | $ | — | — | % | |||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||
| Purchased transportation | (1.5 | ) | 71.4 | (1.6 | ) | 76.2 | 0.1 | (6.3 | ) | ||||||||||||||||||
| Other operating expenses | (0.6 | ) | 28.6 | (0.5 | ) | 23.8 | (0.1 | ) | 20.0 | ||||||||||||||||||
| Income from operations | $ | — | — | % | $ | — | — | % | $ | — | — | % | |||||||||||||||
| Percent of | Percent of | Percent | |||||||||||||||||||||||||
| Consolidated | 2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||||||||
| Operating revenue | $ | 256.4 | 100.0 | % | $ | 214.1 | 100.0 | % | $ | 42.3 | 19.8 | % | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||
| Purchased transportation | 107.5 | 41.9 | 92.3 | 43.1 | 15.2 | 16.5 | |||||||||||||||||||||
| Salaries, wages, and employee benefits | 65.8 | 25.7 | 50.6 | 23.6 | 15.2 | 30.0 | |||||||||||||||||||||
| Operating leases | 15.2 | 5.9 | 9.0 | 4.2 | 6.2 | 68.9 | |||||||||||||||||||||
| Depreciation and amortization | 9.6 | 3.8 | 8.3 | 3.9 | 1.3 | 15.7 | |||||||||||||||||||||
| Insurance and claims | 4.9 | 1.9 | 4.8 | 2.2 | 0.1 | 2.1 | |||||||||||||||||||||
| Fuel expense | 3.9 | 1.5 | 5.2 | 2.4 | (1.3 | ) | (25.0 | ) | |||||||||||||||||||
| Other operating expenses | 20.5 | 8.0 | 18.3 | 8.6 | 2.2 | 12.0 | |||||||||||||||||||||
| Income from operations | $ | 29.0 | 11.3 | % | $ | 25.6 | 12.0 | % | $ | 3.4 | 13.3 | % | |||||||||||||||
|
Forward Air Corporation Segment Information (In millions) (unaudited) |
|||||||||||||||||||||||||||
| Year ended December 31 | |||||||||||||||||||||||||||
| Percent of | Percent of | Percent | |||||||||||||||||||||||||
| Forward Air | 2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||||||||
| Operating revenue | $ | 792.8 | 82.7 | % | $ | 612.4 | 78.4 | % | $ | 180.4 | 29.5 | % | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||
| Purchased transportation | 358.9 | 45.3 | 277.3 | 45.3 | 81.6 | 29.4 | |||||||||||||||||||||
| Salaries, wages, and employee benefits | 182.0 | 22.9 | 131.7 | 21.5 | 50.3 | 38.2 | |||||||||||||||||||||
| Operating leases | 56.0 | 7.1 | 24.9 | 4.1 | 31.1 | 124.9 | |||||||||||||||||||||
| Depreciation and amortization | 27.0 | 3.4 | 21.7 | 3.5 | 5.3 | 24.4 | |||||||||||||||||||||
| Insurance and claims | 16.8 | 2.1 | 11.8 | 1.9 | 5.0 | 42.4 | |||||||||||||||||||||
| Fuel expense | 7.1 | 0.9 | 8.4 | 1.4 | (1.3 | ) | (15.5 | ) | |||||||||||||||||||
| Other operating expenses | 69.7 | 8.8 | 50.5 | 8.2 | 19.2 | 38.0 | |||||||||||||||||||||
| Income from operations | $ | 75.3 | 9.5 | % | $ | 86.1 | 14.1 | % | $ | (10.8 | ) | (12.5 | )% | ||||||||||||||
| Percent of | Percent of | Percent | |||||||||||||||||||||||||
| FASI | 2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||||||||
| Operating revenue | $ | 130.0 | 13.5 | % | $ | 125.2 | 16.0 | % | $ | 4.8 | 3.8 | % | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||
| Purchased transportation | 35.0 | 26.9 | 36.6 | 29.3 | (1.6 | ) | (4.4 | ) | |||||||||||||||||||
| Salaries, wages, and employee benefits | 48.7 | 37.5 | 42.0 | 33.5 | 6.7 | 16.0 | |||||||||||||||||||||
| Operating leases | 10.2 | 7.8 | 9.0 | 7.2 | 1.2 | 13.3 | |||||||||||||||||||||
| Depreciation and amortization | 6.1 | 4.7 | 5.8 | 4.6 | 0.3 | 5.2 | |||||||||||||||||||||
| Insurance and claims | 3.8 | 2.9 | 3.1 | 2.5 | 0.7 | 22.6 | |||||||||||||||||||||
| Fuel expense | 5.4 | 4.2 | 7.3 | 5.8 | (1.9 | ) | (26.0 | ) | |||||||||||||||||||
| Other operating expenses | 16.7 | 12.8 | 15.4 | 12.3 | 1.3 | 8.4 | |||||||||||||||||||||
| Income from operations | $ | 4.1 | 3.2 | % | $ | 6.0 | 4.8 | % | $ | (1.9 | ) | (31.7 | )% | ||||||||||||||
| Percent of | Percent of | Percent | |||||||||||||||||||||||||
| TQI | 2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||||||||
| Operating revenue | $ | 42.4 | 4.4 | % | $ | 48.8 | 6.3 | % | $ | (6.4 | ) | (13.1 | )% | ||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||
| Purchased transportation | 19.2 | 45.3 | 24.7 | 50.6 | (5.5 | ) | (22.3 | ) | |||||||||||||||||||
| Salaries, wages, and employee benefits | 9.9 | 23.4 | 8.4 | 17.2 | 1.5 | 17.9 | |||||||||||||||||||||
| Operating leases | 0.1 | 0.2 | 0.1 | 0.2 | — | — | |||||||||||||||||||||
| Depreciation and amortization | 4.0 | 9.4 | 3.6 | 7.4 | 0.4 | 11.1 | |||||||||||||||||||||
| Insurance and claims | 0.9 | 2.1 | 0.8 | 1.7 | 0.1 | 12.5 | |||||||||||||||||||||
| Fuel expense | 3.4 | 8.0 | 4.5 | 9.2 | (1.1 | ) | (24.4 | ) | |||||||||||||||||||
| Other operating expenses | 2.5 | 5.9 | 2.4 | 4.9 | 0.1 | 4.2 | |||||||||||||||||||||
| Income from operations | $ | 2.4 | 5.7 | % | $ | 4.3 | 8.8 | % | $ | (1.9 | ) | (44.2 | )% | ||||||||||||||
| Percent of | Percent of | Percent | |||||||||||||||||||||||||
| Intercompany Eliminations | 2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||||||||
| Operating revenue | $ | (6.1 | ) | (0.6 | )% | $ | (5.4 | ) | (0.7 | )% | $ | (0.7 | ) | 13.0 | % | ||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||
| Purchased transportation | (4.3 | ) | 70.5 | (4.0 | ) | 74.1 | (0.3 | ) | 7.5 | ||||||||||||||||||
| Other operating expenses | (1.8 | ) | 29.5 | (1.4 | ) | 25.9 | (0.4 | ) | 28.6 | ||||||||||||||||||
| Income from operations | $ | — | — | % | $ | — | — | % | $ | — | — | % | |||||||||||||||
| Percent of | Percent of | Percent | |||||||||||||||||||||||||
| Consolidated | 2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||||||||
| Operating revenue | $ | 959.1 | 100.0 | % | $ | 781.0 | 100.0 | % | $ | 178.1 | 22.8 | % | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||
| Purchased transportation | 408.8 | 42.6 | 334.6 | 42.8 | 74.2 | 22.2 | |||||||||||||||||||||
| Salaries, wages, and employee benefits | 240.6 | 25.1 | 182.1 | 23.3 | 58.5 | 32.1 | |||||||||||||||||||||
| Operating leases | 66.3 | 6.9 | 34.0 | 4.4 | 32.3 | 95.0 | |||||||||||||||||||||
| Depreciation and amortization | 37.1 | 3.9 | 31.1 | 4.0 | 6.0 | 19.3 | |||||||||||||||||||||
| Insurance and claims | 21.5 | 2.2 | 15.7 | 2.0 | 5.8 | 36.9 | |||||||||||||||||||||
| Fuel expense | 15.9 | 1.7 | 20.2 | 2.6 | (4.3 | ) | (21.3 | ) | |||||||||||||||||||
| Other operating expenses | 87.1 | 9.1 | 66.9 | 8.6 | 20.2 | 30.2 | |||||||||||||||||||||
| Income from operations | $ | 81.8 | 8.5 | % | $ | 96.4 | 12.3 | % | $ | (14.6 | ) | (15.1 | )% | ||||||||||||||
| Forward Air Corporation | ||||||||||||||
| Forward Air Inc. Operating Statistics | ||||||||||||||
| Three months ended | ||||||||||||||
| December 31, | December 31, | Percent | ||||||||||||
| 2015 | 2014 | Change | ||||||||||||
| Operating ratio | 87.6 | % | 87.0 | % | 0.7 | % | ||||||||
| Business days | 64.0 | 63.0 | 1.6 | |||||||||||
| Business weeks | 12.8 | 12.6 | 1.6 | |||||||||||
| Airport-to-airport: | ||||||||||||||
| Tonnage | ||||||||||||||
| Total pounds ¹ | 621,178 | 502,531 | 23.6 | |||||||||||
| Average weekly pounds ¹ | 48,530 | 39,883 | 21.7 | |||||||||||
| Linehaul shipments | ||||||||||||||
| Total linehaul | 1,015,043 | 797,612 | 27.3 | |||||||||||
| Average weekly | 79,300 | 63,303 | 25.3 | |||||||||||
| Forward Air Complete shipments | 221,842 | 135,252 | 64.0 | |||||||||||
| As a percentage of linehaul shipments | 21.9 | % | 17.0 | % | 28.8 |
|
||||||||
| Average linehaul shipment size | 612 | 630 | (2.9 | ) | ||||||||||
| Revenue per pound ² | ||||||||||||||
| Linehaul yield | $ | 17.70 | $ | 17.75 | (0.2 | ) | ||||||||
| Fuel surcharge impact | 0.98 | 1.74 | (3.4 | ) | ||||||||||
| Forward Air Complete impact | 3.22 | 2.85 | 1.6 | |||||||||||
| Total airport-to-airport yield | $ | 21.90 | $ | 22.34 | (2.0 | ) | ||||||||
| Expedited full truckload - TLX: | ||||||||||||||
| Miles | ||||||||||||||
| Owner operator ¹ | 11,475 | 5,919 | 93.9 | |||||||||||
| Third party ¹ | 6,529 | 5,471 | 19.3 | |||||||||||
| Total Miles | 18,004 | 11,390 | 58.1 | |||||||||||
| Revenue per mile | $ | 1.77 | $ | 1.85 | (4.3 | ) | ||||||||
| Cost per mile | $ | 1.32 | $ | 1.44 | (8.3 | )% | ||||||||
|
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 | ||||||||||||||
| Year ended | ||||||||||||||
| December 31, | December 31, | Percent | ||||||||||||
| 2015 | 2014 | Change | ||||||||||||
| Operating ratio | 90.5 | % | 85.9 | % | 5.4 | % | ||||||||
| Business days | 255.0 | 254.0 | 0.4 | |||||||||||
| Business weeks | 51.0 | 50.8 | 0.4 | |||||||||||
| Airport-to-airport: | ||||||||||||||
| Tonnage | ||||||||||||||
| Total pounds ¹ | 2,408,424 | 1,902,218 | 26.6 | |||||||||||
| Average weekly pounds ¹ | 47,224 | 37,445 | 26.1 | |||||||||||
| Linehaul shipments | ||||||||||||||
| Total linehaul | 3,815,932 | 2,925,257 | 30.4 | |||||||||||
| Average weekly | 74,822 | 57,584 | 29.9 | |||||||||||
| Forward Air Complete shipments | 955,062 | 528,422 | 80.7 | |||||||||||
| As a percentage of linehaul shipments | 25.0 | % | 18.1 | % | 38.1 | |||||||||
| Average linehaul shipment size | 631 | 650 | (2.9 | ) | ||||||||||
| Revenue per pound ² | ||||||||||||||
| Linehaul yield | $ | 17.28 | $ | 17.61 | (1.5 | ) | ||||||||
| Fuel surcharge impact | 1.15 | 1.93 | (3.4 | ) | ||||||||||
| Forward Air Complete impact | 3.22 | 3.03 | 0.8 | |||||||||||
| Total airport-to-airport yield | $ | 21.65 | $ | 22.57 | (4.1 | ) | ||||||||
| Expedited full truckload - TLX: | ||||||||||||||
| Miles | ||||||||||||||
| Owner operator ¹ | 35,487 | 26,208 | 35.4 | |||||||||||
| Third party ¹ | 24,656 | 19,018 | 29.6 | |||||||||||
| Total Miles | 60,143 | 45,226 | 33.0 | |||||||||||
| Revenue per mile | $ | 1.84 | $ | 1.72 | 7.0 | |||||||||
| Cost per mile | $ | 1.35 | $ | 1.32 | 2.3 | % | ||||||||
| ¹ - In thousands | ||||||||||||||
|
² - In dollars per hundred pound; percentage change is expressed as a percent of total yield. |
||||||||||||||
Forward Air Corporation Reconciliation to U.S. GAAP
The Company believes that meaningful analysis of our financial performance requires an understanding of the factors underlying that performance, including an understanding of items that are non-recurring in nature. We believe that excluding acquisition and integration costs related to Towne Air and CST from our results for the three months and year ended December 31, 2015 and 2014 will assist investors in understanding our core operating performance and allow for more accurate comparisons of results. As required by SEC rules, the tables below present, for the periods indicated, a reconciliation of our presented adjusted non-GAAP measures to the most directly comparable GAAP measures
| Forward Air Corporation | ||||||||||||||
| Reconciliation to U.S. GAAP | ||||||||||||||
| (In millions, except per share data) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three months ended | ||||||||||||||
| Adjusted | ||||||||||||||
|
December 31, |
Integration and |
December 31, |
||||||||||||
| Income from operations | $ | 29.0 | $ | 0.6 | $ | 29.6 | ||||||||
| Net income | $ | 23.2 | $ | 0.4 | $ | 23.6 | ||||||||
| Net income per share: | $ | 0.75 | $ | 0.01 | $ | 0.76 | ||||||||
| (1) - As reported in accordance with United States generally accepted accounting principles. | ||||||||||||||
| Three months ended | ||||||||||||||
| Adjusted | ||||||||||||||
|
December 31, |
Integration and |
December 31, |
||||||||||||
| Income from operations | $ | 25.6 | $ | — | $ | 25.6 | ||||||||
| Net income | $ | 17.0 | $ | — | $ | 17.0 | ||||||||
| Net income per share: | $ | 0.55 | $ | — | $ | 0.55 | ||||||||
| (1) - As reported in accordance with United States generally accepted accounting principles. | ||||||||||||||
| Forward Air Corporation | ||||||||||||||
| Reconciliation to U.S. GAAP | ||||||||||||||
| (In millions, except per share data) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Year ended | ||||||||||||||
| Adjusted | ||||||||||||||
|
December 31, |
Integration and |
December 31, |
||||||||||||
| Income from operations | $ | 81.8 | $ | 23.5 | $ | 105.3 | ||||||||
| Net income | $ | 55.6 | $ | 14.7 | $ | 70.3 | ||||||||
| Net income per share: | $ | 1.78 | $ | 0.47 | $ | 2.25 | ||||||||
| (1) - As reported in accordance with United States generally accepted accounting principles. | ||||||||||||||
| Year ended | ||||||||||||||
| Adjusted | ||||||||||||||
|
December 31, |
Integration and |
December 31, |
||||||||||||
| Income from operations | $ | 96.4 | $ | 0.9 | $ | 97.3 | ||||||||
| Net income | $ | 61.2 | $ | 0.6 | $ | 61.8 | ||||||||
| Net income per share: | $ | 1.96 | $ | 0.02 | $ | 1.98 | ||||||||
| (1) - As reported in accordance with United States generally accepted accounting principles. | ||||||||||||||
| Forward Air Corporation | |||||||||
| Actual to Guidance EPS Bridge | |||||||||
| Three months ended December 31, 2015 | |||||||||
| (All EPS is diluted earnings per share) | |||||||||
| Fourth quarter EPS as reported | $ | 0.754 | |||||||
| Towne Air acquisition and integration costs | 0.012 | ||||||||
| Adjusted EPS | 0.766 | ||||||||
| Variances from guidance assumptions: | |||||||||
| Technology tax deduction and other tax benefits | (0.174 | ) | |||||||
| Operating expenses associated with technology tax deduction | 0.022 | ||||||||
| TQI EPS contribution shortfall | 0.009 | ||||||||
| Detrimental difference in net fuel surcharge | 0.020 | ||||||||
| Total variances from guidance assumptions | (0.123 | ) | |||||||
| Adjusted EPS with variances added back | 0.643 | ||||||||
| Mid-point of original third quarter guidance | 0.640 | ||||||||
| Remaining positive EPS variance | $ | 0.003 | |||||||
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160209006423/en/
Forward Air Corporation
Rodney L. Bell, 423-636-7000
rbell@forwardair.com
Source: Forward Air Corporation
Released February 9, 2016