Forward
Air Corporation
|
|||||||
Condensed
Consolidated Statements of Operations
|
|||||||
(In
thousands, except per share data)
|
|||||||
(Unaudited)
|
|||||||
Three
months ended
|
|||||||
March
31,
|
March
31,
|
||||||
2009
|
2008
|
||||||
Operating
revenue:
|
|||||||
Forward
Air
|
|||||||
Airport-to-airport
|
$ | 63,055 | $ | 82,059 | |||
Logistics
|
13,044 | 12,253 | |||||
Other
|
5,867 | 5,789 | |||||
Forward
Air Solutions
|
|||||||
Pool
distribution
|
14,650 | 7,837 | |||||
Total
operating revenue
|
96,616 | 107,938 | |||||
Operating
expenses:
|
|||||||
Purchased
transportation
|
|||||||
Forward
Air
|
|||||||
Airport-to-airport
|
26,153 | 31,540 | |||||
Logistics
|
10,279 | 9,180 | |||||
Other
|
1,064 | 1,633 | |||||
Forward
Air Solutions
|
|||||||
Pool
distribution
|
2,632 | 1,172 | |||||
Total
purchased transportation
|
40,128 | 43,525 | |||||
Salaries,
wages and employee benefits
|
29,056 | 26,447 | |||||
Operating
leases
|
6,989 | 4,851 | |||||
Depreciation
and amortization
|
4,858 | 3,698 | |||||
Insurance
and claims
|
2,716 | 2,260 | |||||
Fuel
expense
|
1,682 | 2,124 | |||||
Other
operating expenses
|
9,056 | 8,383 | |||||
Impairment
of goodwill and other intangible assets
|
7,157 | -- | |||||
Total
operating expenses
|
101,642 | 91,288 | |||||
(Loss)
income from operations
|
(5,026 | ) | 16,650 | ||||
Other
(expense) income:
|
|||||||
Interest
expense
|
(141 | ) | (301 | ) | |||
Other,
net
|
(22 | ) | 154 | ||||
Total
other expense
|
(163 | ) | (147 | ) | |||
(Loss)
income before income taxes
|
(5,189 | ) | 16,503 | ||||
Income
taxes
|
(2,085 | ) | 6,495 | ||||
Net
(loss) income
|
$ | (3,104 | ) | $ | 10,008 | ||
Net
(loss) income per share:
|
|||||||
Basic
|
$ | (0.11 | ) | $ | 0.35 | ||
Diluted
|
$ | (0.11 | ) | $ | 0.35 | ||
Weighted
average shares outstanding:
|
|||||||
Basic
|
28,906 | 28,694 | |||||
Diluted
|
28,906 | 28,982 | |||||
Dividends
per share:
|
$ | 0.07 | $ | 0.07 |
Forward
Air Corporation
|
||||||||||
Reconciliation
of U.S. GAAP Financial Results to Adjusted Financial
Results
|
||||||||||
(In
thousands, except per share data)
|
||||||||||
(Unaudited)
|
||||||||||
Three
months ended
|
||||||||||
Adjusted
|
||||||||||
March
31,
|
Impairment
|
March
31,
|
||||||||
2009
(1)
|
Charge
|
2009
|
||||||||
(Loss)
income from operations
|
$ | (5,026 | ) | $ | 7,157 | $ | 2,131 | |||
Income
taxes
|
(2,085 | ) | (2,875 | ) | 790 | |||||
Net
(loss) income
|
(3,104 | ) | 4,282 | 1,178 | ||||||
Weighted
average diluted shares outstanding
|
28,906 | 28,906 | 28,963 | |||||||
Net
(loss) income per share:
|
$ | (0.11 | ) | (0.15 | ) | $ | 0.04 | |||
(1) - As reported in
accordance with United States generally accepted accounting
principles.
|
Forward
Air Corporation
|
|||||
Condensed
Consolidated Balance Sheets
|
|||||
(Dollars
in thousands)
|
|||||
(Unaudited)
|
|||||
March
31,
|
December
31,
|
||||
2009
|
2008
(a)
|
||||
Assets
|
|||||
Current
assets:
|
|||||
Cash
|
$ | 31,241 | $ | 22,093 | |
Accounts receivable, net
|
48,441 | 57,206 | |||
Other current assets
|
12,627 | 12,290 | |||
Total
current assets
|
92,309 | 91,589 | |||
Property
and equipment
|
190,384 | 186,377 | |||
Less
accumulated depreciation and amortization
|
66,453 | 63,401 | |||
Total
property and equipment, net
|
123,931 | 122,976 | |||
Goodwill
and other acquired intangibles:
|
|||||
Goodwill
|
43,332 | 50,230 | |||
Other acquired intangibles, net
|
39,292 | 40,708 | |||
Total
goodwill and other acquired intangibles
|
82,624 | 90,938 | |||
Other
assets
|
2,124 | 2,024 | |||
Total
assets
|
$ | 300,988 | $ | 307,527 | |
Liabilities
and Shareholders’ Equity
|
|||||
Current
liabilities:
|
|||||
Accounts payable
|
$ | 7,841 | $ | 11,633 | |
Accrued expenses
|
16,124 | 12,927 | |||
Current portion of debt and capital lease obligations
|
1,433 | 1,602 | |||
Total
current liabilities
|
25,398 | 26,162 | |||
Long-term
debt and capital lease obligations, less current portion
|
52,868 | 53,035 | |||
Other
long-term liabilities
|
2,918 | 3,055 | |||
Deferred
income taxes
|
6,947 | 8,841 | |||
Shareholders’
equity:
|
|||||
Common stock
|
289 | 289 | |||
Additional paid-in capital
|
11,802 | 10,249 | |||
Retained earnings
|
200,766 | 205,896 | |||
Total
shareholders’ equity
|
212,857 | 216,434 | |||
Total
liabilities and shareholders’ equity
|
$ | 300,988 | $ | 307,527 | |
(a)
Taken from audited financial statements, which are not presented in their
entirety.
|
Condensed
Consolidated Statements of Cash Flows
|
|||||||
(In
thousands)
|
|||||||
(Unaudited)
|
|||||||
Three
months ended
|
|||||||
March
31,
|
March
31,
|
||||||
2009
|
2008
|
||||||
Operating
activities:
|
|||||||
Net
(loss) income
|
$ | (3,104 | ) | $ | 10,008 | ||
Adjustments
to reconcile net (loss) income to net cash provided by operating
activities
|
|||||||
Depreciation and amortization
|
4,858 | 3,698 | |||||
Impairment of goodwill and other intangible assets
|
7,157 | - | |||||
Share-based compensation
|
1,780 | 1,535 | |||||
Loss on sale or disposal of property and equipment
|
9 | 16 | |||||
Provision for (recovery) loss on receivables
|
(35 | ) | 95 | ||||
Provision for revenue adjustments
|
794 | 996 | |||||
Deferred income taxes
|
(1,960 | ) | 514 | ||||
Tax benefit for stock options exercised
|
-- | (725 | ) | ||||
Changes in operating assets and liabilities,
|
|||||||
Accounts receivable
|
8,006 | (5,437 | ) | ||||
Prepaid expenses and other current assets
|
705 | 459 | |||||
Accounts payable and accrued expenses
|
(1,751 | ) | (317 | ) | |||
Net
cash provided by operating activities
|
16,459 | 10,842 | |||||
Investing
activities:
|
|||||||
Proceeds
from disposal of property and equipment
|
127 | 4 | |||||
Purchases
of property and equipment
|
(4,737 | ) | (2,645 | ) | |||
Acquisition
of businesses
|
-- | (18,526 | ) | ||||
Other
|
(112 | ) | (49 | ) | |||
Net
cash used in investing activities
|
(4,722 | ) | (21,216 | ) | |||
Financing
activities:
|
|||||||
Payments
of debt and capital lease obligations
|
(336 | ) | (606 | ) | |||
Borrowings
on line of credit
|
-- | 20,000 | |||||
Payments
on line of credit
|
-- | (10,000 | ) | ||||
Proceeds
from exercise of stock options
|
-- | 956 | |||||
Payments
of cash dividends
|
(2,025 | ) | (2,013 | ) | |||
Cash
settlement of share-based awards for minimum tax
withholdings
|
(228 | ) | (362 | ) | |||
Tax
benefit for stock options exercised
|
-- | 725 | |||||
Net
cash (used in) provided by financing activities
|
(2,589 | ) | 8,700 | ||||
Net
increase (decrease) in cash
|
9,148 | (1,674 | ) | ||||
Cash
at beginning of period
|
22,093 | 4,909 | |||||
Cash
at end of period
|
$ | 31,241 | $ | 3,235 |
Forward
Air Corporation
|
||||||||||||||||||||||
Segment
Information
|
||||||||||||||||||||||
(In
millions)
|
||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||
Three
months ended
|
||||||||||||||||||||||
March
31,
|
Percent
of
|
March
31,
|
Percent
of
|
Percent
|
||||||||||||||||||
2009
|
Revenue
|
2008
|
Revenue
|
Change
|
Change
|
|||||||||||||||||
Operating
revenue
|
||||||||||||||||||||||
Forward
Air
|
$
|
82.1
|
85.0
|
%
|
$
|
100.3
|
93.0
|
%
|
$
|
(18.2
|
)
|
(18.1
|
)
|
%
|
||||||||
FASI
|
14.8
|
15.3
|
7.8
|
7.2
|
7.0
|
89.7
|
||||||||||||||||
Intercompany
Eliminations
|
(0.3
|
)
|
(0.3
|
)
|
(0.2
|
)
|
(0.2
|
)
|
(0.1
|
)
|
50.0
|
|||||||||||
Total
|
96.6
|
100.0
|
107.9
|
100.0
|
(11.3
|
)
|
(10.5
|
)
|
||||||||||||||
Purchased
transportation
|
||||||||||||||||||||||
Forward
Air
|
37.6
|
45.8
|
42.3
|
42.2
|
(4.7
|
)
|
(11.1
|
)
|
||||||||||||||
FASI
|
2.8
|
19.0
|
1.4
|
17.9
|
1.4
|
100.0
|
||||||||||||||||
Intercompany
Eliminations
|
(0.3
|
)
|
100.0
|
(0.2
|
)
|
100.0
|
(0.1
|
)
|
50.0
|
|||||||||||||
Total
|
40.1
|
41.5
|
43.5
|
40.3
|
(3.4
|
)
|
(7.8
|
)
|
||||||||||||||
Salaries,
wages and employee benefits
|
||||||||||||||||||||||
Forward
Air
|
21.5
|
26.2
|
22.6
|
22.5
|
(1.1
|
)
|
(4.9
|
)
|
||||||||||||||
FASI
|
7.6
|
51.3
|
3.8
|
48.7
|
3.8
|
100.0
|
||||||||||||||||
Total
|
29.1
|
30.1
|
26.4
|
24.5
|
2.7
|
10.2
|
||||||||||||||||
Operating
leases
|
||||||||||||||||||||||
Forward
Air
|
4.8
|
5.8
|
4.3
|
4.3
|
0.5
|
11.6
|
||||||||||||||||
FASI
|
2.2
|
14.8
|
0.5
|
6.4
|
1.7
|
340.0
|
||||||||||||||||
Total
|
7.0
|
7.2
|
4.8
|
4.5
|
2.2
|
45.8
|
||||||||||||||||
Depreciation
and amortization
|
||||||||||||||||||||||
Forward
Air
|
3.9
|
4.8
|
3.4
|
3.4
|
0.5
|
14.7
|
||||||||||||||||
FASI
|
0.9
|
6.1
|
0.3
|
3.8
|
0.6
|
200.0
|
||||||||||||||||
Total
|
4.8
|
5.0
|
3.7
|
3.4
|
1.1
|
29.7
|
||||||||||||||||
Insurance
and claims
|
||||||||||||||||||||||
Forward
Air
|
2.2
|
2.7
|
1.8
|
1.8
|
0.4
|
22.2
|
||||||||||||||||
FASI
|
0.5
|
3.4
|
0.5
|
6.4
|
--
|
--
|
||||||||||||||||
Total
|
2.7
|
2.8
|
2.3
|
2.1
|
0.4
|
17.4
|
||||||||||||||||
Fuel
expense
|
||||||||||||||||||||||
Forward
Air
|
0.7
|
0.9
|
1.3
|
1.3
|
(0.6
|
)
|
(46.2
|
)
|
||||||||||||||
FASI
|
1.0
|
6.8
|
0.8
|
10.3
|
0.2
|
25.0
|
||||||||||||||||
Total
|
1.7
|
1.8
|
2.1
|
1.9
|
(0.4
|
)
|
(19.0
|
)
|
||||||||||||||
Other
operating expenses
|
||||||||||||||||||||||
Forward
Air
|
7.4
|
9.0
|
7.4
|
7.4
|
--
|
--
|
||||||||||||||||
FASI
|
1.6
|
10.8
|
1.0
|
12.8
|
0.6
|
60.0
|
||||||||||||||||
Total
|
9.0
|
9.3
|
8.4
|
7.8
|
0.6
|
7.1
|
||||||||||||||||
Impairment
of goodwill and other intangible assets
|
||||||||||||||||||||||
Forward
Air
|
0.2
|
0.2
|
--
|
--
|
0.2
|
100.0
|
||||||||||||||||
FASI
|
7.0
|
47.3
|
--
|
--
|
7.0
|
100.0
|
||||||||||||||||
Total
|
7.2
|
7.5
|
--
|
--
|
7.2
|
100.0
|
||||||||||||||||
(Loss)
income from operations
|
||||||||||||||||||||||
Forward
Air
|
3.8
|
4.6
|
17.2
|
17.1
|
(13.4
|
)
|
(77.9
|
)
|
||||||||||||||
FASI
|
(8.8
|
)
|
(59.5
|
)
|
(0.5
|
)
|
(6.3
|
)
|
(8.3
|
)
|
1,660.0
|
|||||||||||
Total
|
$
|
(5.0
|
)
|
(5.2
|
)
|
%
|
$
|
16.7
|
15.5
|
%
|
$
|
(21.7
|
)
|
(129.9
|
)
|
%
|