Condensed
Consolidated Statements of Operations
|
|||||||
(In
thousands, except per share data)
|
|||||||
(Unaudited)
|
|||||||
Three
months ended
|
|||||||
|
March
31,
|
March
31,
|
|||||
2010
|
2009
|
||||||
Operating
revenue:
|
|||||||
Forward
Air
|
|||||||
Airport-to-airport
|
$ | 70,888 | $ | 63,055 | |||
Logistics
|
13,855 | 13,044 | |||||
Other
|
5,875 | 5,867 | |||||
Forward
Air Solutions
|
|||||||
Pool
distribution
|
16,359 | 14,650 | |||||
Total
operating revenue
|
106,977 | 96,616 | |||||
Operating
expenses:
|
|||||||
Purchased
transportation
|
|||||||
Forward
Air
|
|||||||
Airport-to-airport
|
28,799 | 26,153 | |||||
Logistics
|
10,768 | 10,279 | |||||
Other
|
1,492 | 1,064 | |||||
Forward
Air Solutions
|
|||||||
Pool
distribution
|
3,442 | 2,632 | |||||
Total
purchased transportation
|
44,501 | 40,128 | |||||
Salaries,
wages and employee benefits
|
30,670 | 29,056 | |||||
Operating
leases
|
6,629 | 6,989 | |||||
Depreciation
and amortization
|
4,949 | 4,858 | |||||
Insurance
and claims
|
2,331 | 2,716 | |||||
Fuel
expense
|
2,058 | 1,682 | |||||
Other
operating expenses
|
9,784 | 9,056 | |||||
Impairment
of goodwill and other intangible assets
|
-- | 7,157 | |||||
Total
operating expenses
|
100,922 | 101,642 | |||||
Income
(loss) from operations
|
6,055 | (5,026 | ) | ||||
Other
income (expense):
|
|||||||
Interest
expense
|
(185 | ) | (141 | ) | |||
Other,
net
|
30 | (22 | ) | ||||
Total
other expense
|
(155 | ) | (163 | ) | |||
Income
(loss) before income taxes
|
5,900 | (5,189 | ) | ||||
Income
taxes
|
2,481 | (2,085 | ) | ||||
Net
income (loss)
|
$ | 3,419 | $ | (3,104 | ) | ||
Net
income (loss) per share:
|
|||||||
Basic
|
$ | 0.12 | $ | (0.11 | ) | ||
Diluted
|
$ | 0.12 | $ | (0.11 | ) | ||
Weighted
average shares outstanding:
|
|||||||
Basic
|
28,951 | 28,906 | |||||
Diluted
|
29,074 | 28,906 | |||||
Dividends
per share:
|
$ | 0.07 | $ | 0.07 |
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 | ||||||
Diluted/weighted
average shares outstanding
|
28,906 | 28,963 | ||||||||
Net
(loss) income per share:
|
$ | (0.11 | ) | $ | 0.04 | |||||
(1) - As reported in
accordance with United States generally accepted accounting
principles.
|
Forward
Air Corporation
|
|||||
Condensed
Consolidated Balance Sheets
|
|||||
(In
thousands)
|
|||||
(Unaudited)
|
|||||
March
31,
|
December
31,
|
||||
2010
|
2009
(a)
|
||||
Assets
|
|||||
Current
assets:
|
|||||
Cash
|
$ | 44,612 | $ | 42,035 | |
Accounts
receivable, net
|
58,425 | 55,720 | |||
Other
current assets
|
7,688 | 9,471 | |||
Total
current assets
|
110,725 | 107,226 | |||
Property
and equipment
|
208,654 | 204,716 | |||
Less
accumulated depreciation and amortization
|
78,323 | 75,990 | |||
Total
property and equipment, net
|
130,331 | 128,726 | |||
Goodwill
and other acquired intangibles:
|
|||||
Goodwill
|
43,332 | 43,332 | |||
Other
acquired intangibles, net
|
34,701 | 35,849 | |||
Total
goodwill and other acquired intangibles
|
78,033 | 79,181 | |||
Other
assets
|
1,534 | 1,597 | |||
Total
assets
|
$ | 320,623 | $ | 316,730 | |
Liabilities
and Shareholders’ Equity
|
|||||
Current
liabilities:
|
|||||
Accounts
payable
|
$ | 9,837 | $ | 10,333 | |
Accrued
expenses
|
20,745 | 18,531 | |||
Current
portion of debt and capital lease obligations
|
835 | 919 | |||
Total
current liabilities
|
31,417 | 29,783 | |||
Debt
and capital lease obligations, less current portion
|
51,992 | 52,169 | |||
Other
long-term liabilities
|
4,623 | 4,485 | |||
Deferred
income taxes
|
4,889 | 5,786 | |||
Shareholders’
equity:
|
|||||
Common
stock
|
290 | 290 | |||
Additional
paid-in capital
|
18,436 | 16,631 | |||
Retained
earnings
|
208,976 | 207,586 | |||
Total
shareholders’ equity
|
227,702 | 224,507 | |||
Total
liabilities and shareholders’ equity
|
$ | 320,623 | $ | 316,730 |
Condensed
Consolidated Statements of Cash Flows
|
|||||||
(In
thousands)
|
|||||||
(Unaudited)
|
|||||||
Three
Months Ended
|
|||||||
March
31,
|
March
31,
|
||||||
2010
|
2009
|
||||||
Operating
activities:
|
|||||||
Net
income (loss)
|
$ | 3,419 | $ | (3,104 | ) | ||
Adjustments
to reconcile net income (loss) to net cash provided by operating
activities
|
|||||||
Depreciation
and amortization
|
4,949 | 4,858 | |||||
Impairment
of goodwill and other intangible assets
|
-- | 7,157 | |||||
Share-based
compensation
|
1,763 | 1,780 | |||||
Loss
on disposal of property and equipment
|
1 | 9 | |||||
Provision
for loss (recovery) on receivables
|
90 | (35 | ) | ||||
Provision
for revenue adjustments
|
423 | 794 | |||||
Deferred
income taxes
|
(873 | ) | (1,960 | ) | |||
Tax
benefit for stock options exercised
|
(4 | ) | -- | ||||
Changes
in operating assets and liabilities,
|
|||||||
Accounts
receivable
|
(3,218 | ) | 8,006 | ||||
Prepaid
expenses and other current assets
|
1,786 | 705 | |||||
Accounts
payable and accrued expenses
|
1,856 | (1,751 | ) | ||||
Net
cash provided by operating activities
|
10,192 | 16,459 | |||||
Investing
activities:
|
|||||||
Proceeds
from disposal of property and equipment
|
20 | 127 | |||||
Purchases
of property and equipment
|
(5,426 | ) | (4,737 | ) | |||
Other
|
39 | (112 | ) | ||||
Net
cash used in investing activities
|
(5,367 | ) | (4,722 | ) | |||
Financing
activities:
|
|||||||
Payments
of debt and capital lease obligations
|
(261 | ) | (336 | ) | |||
Proceeds
from exercise of stock options
|
38 | -- | |||||
Payments
of cash dividends
|
(2,029 | ) | (2,025 | ) | |||
Cash
settlement of share-based awards for minimum tax
withholdings
|
-- | (228 | ) | ||||
Tax
benefit for stock options exercised
|
4 | -- | |||||
Net
cash used in financing activities
|
(2,248 | ) | (2,589 | ) | |||
Net
increase in cash
|
2,577 | 9,148 | |||||
Cash
at beginning of period
|
42,035 | 22,093 | |||||
Cash
at end of period
|
$ | 44,612 | $ | 31,241 |
Forward
Air Corporation
|
||||||||||||||||||||||
Segment
Information
|
||||||||||||||||||||||
(In
millions)
|
||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||
Three
months ended
|
||||||||||||||||||||||
March
31,
|
Percent
of
|
March
31,
|
Percent
of
|
Percent
|
||||||||||||||||||
2010
|
Revenue
|
2009
|
Revenue
|
Change
|
Change
|
|||||||||||||||||
Operating
revenue
|
||||||||||||||||||||||
Forward
Air
|
$ | 90.9 | 85.0 | % | $ | 82.1 | 85.0 | % | $ | 8.8 | 10.7 | % | ||||||||||
FASI
|
16.4 | 15.3 | 14.8 | 15.3 | 1.6 | 10.8 | ||||||||||||||||
Intercompany
Eliminations
|
(0.3 | ) | (0.3 | ) | (0.3 | ) | (0.3 | ) | -- | -- | ||||||||||||
Total
|
107.0 | 100.0 | 96.6 | 100.0 | 10.4 | 10.8 | ||||||||||||||||
Purchased
transportation
|
||||||||||||||||||||||
Forward
Air
|
41.1 | 45.2 | 37.6 | 45.8 | 3.5 | 9.3 | ||||||||||||||||
FASI
|
3.7 | 22.6 | 2.8 | 19.0 | 0.9 | 32.1 | ||||||||||||||||
Intercompany
Eliminations
|
(0.3 | ) | 100.0 | (0.3 | ) | 100.0 | -- | -- | ||||||||||||||
Total
|
44.5 | 41.6 | 40.1 | 41.5 | 4.4 | 11.0 | ||||||||||||||||
Salaries,
wages and employee benefits
|
||||||||||||||||||||||
Forward
Air
|
23.4 | 25.7 | 21.5 | 26.2 | 1.9 | 8.8 | ||||||||||||||||
FASI
|
7.3 | 44.5 | 7.6 | 51.3 | (0.3 | ) | (3.9 | ) | ||||||||||||||
Total
|
30.7 | 28.7 | 29.1 | 30.1 | 1.6 | 5.5 | ||||||||||||||||
Operating
leases
|
||||||||||||||||||||||
Forward
Air
|
4.5 | 5.0 | 4.8 | 5.8 | (0.3 | ) | (6.3 | ) | ||||||||||||||
FASI
|
2.1 | 12.8 | 2.2 | 14.8 | (0.1 | ) | (4.5 | ) | ||||||||||||||
Total
|
6.6 | 6.2 | 7.0 | 7.2 | (0.4 | ) | (5.7 | ) | ||||||||||||||
Depreciation
and amortization
|
||||||||||||||||||||||
Forward
Air
|
4.0 | 4.4 | 3.9 | 4.8 | 0.1 | 2.6 | ||||||||||||||||
FASI
|
0.9 | 5.5 | 0.9 | 6.1 | -- | -- | ||||||||||||||||
Total
|
4.9 | 4.6 | 4.8 | 5.0 | 0.1 | 2.1 | ||||||||||||||||
Insurance
and claims
|
||||||||||||||||||||||
Forward
Air
|
1.8 | 2.0 | 2.2 | 2.7 | (0.4 | ) | (18.2 | ) | ||||||||||||||
FASI
|
0.5 | 3.0 | 0.5 | 3.4 | -- | -- | ||||||||||||||||
Total
|
2.3 | 2.1 | 2.7 | 2.8 | (0.4 | ) | (14.8 | ) | ||||||||||||||
Fuel
expense
|
||||||||||||||||||||||
Forward
Air
|
0.9 | 1.0 | 0.7 | 0.9 | 0.2 | 28.6 | ||||||||||||||||
FASI
|
1.2 | 7.3 | 1.0 | 6.8 | 0.2 | 20.0 | ||||||||||||||||
Total
|
2.1 | 2.0 | 1.7 | 1.8 | 0.4 | 23.5 | ||||||||||||||||
Other
operating expenses
|
||||||||||||||||||||||
Forward
Air
|
8.0 | 8.8 | 7.4 | 9.0 | 0.6 | 8.1 | ||||||||||||||||
FASI
|
1.8 | 11.0 | 1.6 | 10.8 | 0.2 | 12.5 | ||||||||||||||||
Total
|
9.8 | 9.1 | 9.0 | 9.3 | 0.8 | 8.9 | ||||||||||||||||
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 | ) | ||||||||||||||
Income
(loss) from operations
|
||||||||||||||||||||||
Forward
Air
|
7.2 | 7.9 | 3.8 | 4.6 | 3.4 | 89.5 | ||||||||||||||||
FASI
|
(1.1 | ) | (6.7 | ) | (8.8 | ) | (59.5 | ) | 7.7 | (87.5 | ) | |||||||||||
Total
|
$ | 6.1 | 5.7 | % | $ | (5.0 | ) | (5.2 | ) | % | $ | 11.1 | (222.0 | ) | % |
Forward
Air Inc. Operating Statistics
|
|||||||||||
Three
months ended
|
|||||||||||
March
31,
|
March
31,
|
Percent
|
|||||||||
2010
|
2009
|
Change
|
|||||||||
Operating
ratio
|
92.1 | % | 95.4 | % | (3.5 | ) | % | ||||
Business
days
|
63.0 | 63.0 | -- | ||||||||
Business
weeks
|
12.6 | 12.6 | -- | ||||||||
Airport-to-airport:
|
|||||||||||
Tonnage
|
|||||||||||
Total
pounds ¹
|
378,625 | 338,602 | 11.8 | ||||||||
Average
weekly pounds ¹
|
30,050 | 26,873 | 11.8 | ||||||||
Linehaul
shipments
|
|||||||||||
Total
linehaul
|
546,313 | 502,890 | 8.6 | ||||||||
Average
weekly
|
43,358 | 39,912 | 8.6 | ||||||||
Forward
Air Complete shipments
|
69,106 | 53,889 | 28.2 | ||||||||
As
a percentage of linehaul shipments
|
12.6 | % | 10.7 | % | 17.8 | ||||||
Average
linehaul shipment size
|
693 | 673 | 3.0 | ||||||||
Revenue
per pound ²
|
|||||||||||
Linehaul
yield
|
$ | 15.93 | $ | 16.61 | (3.6 | ) | |||||
Fuel
surcharge impact
|
1.09 | 0.73 | 1.9 | ||||||||
Forward
Air Complete impact
|
1.74 | 1.32 | 2.2 | ||||||||
Total
airport-to-airport yield
|
$ | 18.76 | $ | 18.66 | 0.5 | ||||||
Logistics:
|
|||||||||||
Miles
|
|||||||||||
Owner
operator ¹
|
5,937 | 5,594 | 6.1 | ||||||||
Third
party ¹
|
2,738 | 2,621 | 4.5 | ||||||||
Total
Miles
|
8,675 | 8,215 | 5.6 | ||||||||
Revenue
per mile
|
$ | 1.61 | $ | 1.61 | -- | ||||||
|
|||||||||||
Cost
per mile
|
$ | 1.24 | $ | 1.25 | (0.8 | ) | % | ||||
¹ -
In thousands
|
|||||||||||
² -
In cents per pound; percentage change is expressed as a percent of total
yield.
|