FORWARD
AIR CORPORATION
Condensed
Statements of Income (Unaudited)
(In
thousands, except per share data)
|
|||||||||||||
Three
months ended
|
Nine months
ended
|
||||||||||||
09/30/06
|
09/30/05
|
09/30/06
|
09/30/05
|
||||||||||
Operating
revenue
|
$
|
90,441
|
$
|
84,841
|
$
|
259,550
|
$
|
231,861
|
|||||
Operating
expenses:
|
|||||||||||||
Purchased
transportation
|
37,939 |
35,512
|
105,508 | 94,994 | |||||||||
Salaries,
wages and employee benefits
|
18,385 |
17,486
|
55,508 |
49,305
|
|||||||||
Operating
leases
|
3,750 |
3,448
|
10,619 |
10,159
|
|||||||||
Depreciation
and amortization
|
2,083 |
2,815
|
6,534 |
6,637
|
|||||||||
Insurance
and claims
|
1,556 |
841
|
4,747 |
3,862
|
|||||||||
Other
operating expenses
|
6,940 |
6,070
|
20,123 |
18,063
|
|||||||||
Total
operating expenses
|
70,653 |
66,172
|
203,039 |
183,020
|
|||||||||
Income
from operations
|
19,788 |
18,669
|
56,511 |
48,841
|
|||||||||
Other
income (expense):
|
|||||||||||||
Interest
expense
|
(17 | ) |
(24
|
)
|
(58 | ) |
(69
|
)
|
|||||
Other,
net
|
793 |
587
|
2,314 |
3,340
|
|||||||||
Total
other income
|
776 |
563
|
2,256 |
3,271
|
|||||||||
Income
before income taxes
|
20,564 |
19,232
|
58,767 |
52,112
|
|||||||||
Income
taxes
|
7,839 |
7,167
|
22,013 |
19,400
|
|||||||||
Net
income
|
$
|
12,725 |
$
|
12,065
|
$
|
36,754 |
$
|
32,712
|
|||||
Income
per share:
|
|||||||||||||
Basic
|
$
|
0.41 |
$
|
0.38
|
$
|
1.18 |
$
|
1.02
|
|||||
Diluted
|
$
|
0.41 |
$
|
0.38
|
$
|
1.16 |
$
|
1.00
|
FORWARD
AIR
CORPORATION
Condensed
Consolidated Balance Sheets
(In
thousands, except share data)
|
|||||||
|
|
|
09/30/06
|
|
|
12/31/05
|
|
|
|
(Unaudited)
|
Audited
(a)
|
|
|||
Assets
|
|||||||
Current
assets:
|
|||||||
Cash
|
$
|
4,356
|
$
|
332
|
|||
Short-term
investments
|
60,800
|
79,000
|
|||||
Accounts
receivable, less allowance of $1,022 in 2006 and $922 in
2005
|
51,292
|
45,763
|
|||||
Other
current assets
|
7,960
|
11,639
|
|||||
Total
current assets
|
124,408
|
136,734
|
|||||
|
|||||||
Property
and equipment
|
96,961
|
91,086
|
|||||
Less
accumulated depreciation and amortization
|
46,615
|
43,864
|
|||||
Total
property and equipment, net
|
50,346
|
47,222
|
|||||
Goodwill
and other acquired intangibles:
|
|||||||
Goodwill
|
15,588
|
15,588
|
|||||
Other
acquired intangibles, net of accumulated amortization of $1,700
in 2006
and $744 in 2005
|
11,050
|
12,007
|
|||||
Total
goodwill and other acquired intangibles
|
26,638
|
27,595
|
|||||
Other
assets
|
5,800
|
1,049
|
|||||
Total
assets
|
$
|
207,192
|
$
|
212,600
|
|||
|
|||||||
Liabilities
and Shareholders’ Equity
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable
|
$
|
9,529
|
$
|
12,640
|
|||
Accrued
expenses
|
12,990
|
11,782
|
|||||
Short-term
debt
|
--
|
1,504
|
|||||
Current
portion of capital lease obligations
|
40
|
38
|
|||||
Total
current liabilities
|
22,559
|
25,964
|
|||||
Capital
lease obligations, less current portion
|
807
|
837
|
|||||
Deferred
income taxes
|
6,760
|
6,983
|
|||||
Shareholders’
equity:
|
|||||||
Preferred
stock
|
--
|
--
|
|||||
Common
stock, $0.01 par value:
|
|||||||
Authorized
shares - 50,000,000
|
|||||||
Issued
and outstanding shares - 30,461,491 in 2006 and 31,360,842 in 2005
|
305
|
314
|
|||||
Additional
paid-in capital
|
--
|
--
|
|||||
Accumulated
other comprehensive income
|
--
|
--
|
|||||
Retained
earnings
|
176,761
|
178,502
|
|||||
Total
shareholders’ equity
|
177,066
|
178,816
|
|||||
Total
liabilities and shareholders’ equity
|
$
|
207,192
|
$
|
212,600
|
(a)
|
Taken
from audited financial statements, which are not presented in their
entirety.
|
FORWARD
AIR CORPORATION
Condensed
Consolidated Statements of Cash Flows (Unaudited)
(In
thousands)
|
|||||||
|
Nine
months ended
|
|
|||||
|
|
09/30/06
|
|
09/30/05
|
|
||
Operating
activities:
|
|
|
|
|
|
||
Net
income
|
|
$
|
36,754
|
|
$
|
32,712
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
6,534
|
|
|
6,637
|
|
Share-based
compensation
|
|
|
923
|
|
|
--
|
|
Atlanta
condemnation settlement gain
|
|
|
--
|
|
|
(1,428
|
)
|
Other
non-cash charges
|
|
|
--
|
|
|
274
|
|
Gain
on sale of property and equipment
|
|
|
(143
|
)
|
|
(261
|
)
|
Provision
for loss (recovery) on receivables
|
|
|
134
|
|
|
(164
|
)
|
Provision
for revenue adjustments
|
|
|
1,571
|
|
|
1,516
|
|
Deferred
income taxes
|
|
|
66
|
|
|
(821
|
)
|
Tax
benefit of stock options exercised
|
|
|
(1,549
|
)
|
|
1,922
|
|
Changes
in operating assets and liabilities
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(9,153
|
)
|
|
(9,601
|
)
|
Prepaid
expenses and other current assets
|
|
|
51
|
|
|
(443
|
)
|
Accounts
payable and accrued expenses
|
|
|
(1,903
|
)
|
|
656
|
|
Income
taxes
|
|
|
4,888
|
|
|
2,848
|
|
Net
cash provided by operating activities
|
|
|
38,173
|
|
|
33,847
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Proceeds
from disposal of property and equipment
|
|
|
3,275
|
|
|
86
|
|
Purchases
of property and equipment
|
|
|
(9,914
|
)
|
|
(7,528
|
)
|
Deposits
in escrow for construction of new terminals
|
|
|
(4,793
|
)
|
|
--
|
|
Proceeds
from sales or maturities of available-for-sale securities
|
|
|
193,905
|
|
|
167,150
|
|
Purchases
of available-for-sale securities
|
|
|
(175,705
|
)
|
|
(133,740
|
)
|
Acquisition
of business
|
|
|
--
|
|
|
(12,750
|
)
|
Proceeds
from Atlanta condemnation settlement/release of amounts held in
escrow
|
|
|
--
|
|
|
2,765
|
|
Other
|
|
|
42
|
|
|
(112
|
)
|
Net
cash provided by investing activities
|
|
|
6,810
|
|
|
15,871
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Payments
of capital lease obligations
|
|
|
(28
|
)
|
|
(23
|
)
|
Payments
on line of credit
|
|
|
(1,504
|
)
|
|
--
|
|
Borrowings
under line of credit
|
|
|
--
|
|
|
1,404
|
|
Proceeds
from exercise of stock options
|
|
|
4,231
|
|
|
3,709
|
|
Payments
of cash dividends
|
|
|
(6,548
|
)
|
|
(5,782
|
)
|
Cash
paid for fractional shares in 3-for-2 stock split
|
|
|
--
|
|
|
(44
|
)
|
Common
stock issued under employee stock purchase plan
|
|
|
115
|
|
|
130
|
|
Repurchase
of common stock
|
|
|
(38,774
|
)
|
|
(49,049
|
)
|
Tax
benefit of stock options exercised
|
|
|
1,549
|
|
|
--
|
|
Net
cash used in financing activities
|
|
|
(40,959
|
)
|
|
(49,655
|
)
|
Net
increase in cash
|
|
|
4,024
|
|
|
63
|
|
Cash
at beginning of period
|
|
|
332
|
|
|
78
|
|
Cash
at end of period
|
|
$
|
4,356
|
|
$
|
141
|
|
Uncollected
proceeds from disposal of property and equipment in accounts
receivable
|
|
$
|
51
|
|
$
|
1,554
|
|