Condensed Consolidated Statements of Operations
|
|||||||
(In thousands, except per share data)
|
|||||||
(Unaudited)
|
|||||||
Three months ended
|
|||||||
|
March 31,
|
March 31,
|
|||||
2011
|
2010
|
||||||
Operating revenue:
|
|||||||
Forward Air
|
|||||||
Airport-to-airport
|
$ | 82,147 | $ | 70,888 | |||
Logistics
|
16,494 | 13,855 | |||||
Other
|
6,403 | 5,875 | |||||
Forward Air Solutions
|
|||||||
Pool distribution
|
15,157 | 16,359 | |||||
Total operating revenue
|
120,201 | 106,977 | |||||
Operating expenses:
|
|||||||
Purchased transportation
|
|||||||
Forward Air
|
|||||||
Airport-to-airport
|
32,593 | 28,799 | |||||
Logistics
|
12,799 | 10,768 | |||||
Other
|
1,473 | 1,492 | |||||
Forward Air Solutions
|
|||||||
Pool distribution
|
3,457 | 3,442 | |||||
Total purchased transportation
|
50,322 | 44,501 | |||||
Salaries, wages and employee benefits
|
30,495 | 30,670 | |||||
Operating leases
|
6,706 | 6,629 | |||||
Depreciation and amortization
|
5,082 | 4,949 | |||||
Insurance and claims
|
2,175 | 2,331 | |||||
Fuel expense
|
2,388 | 2,058 | |||||
Other operating expenses
|
9,747 | 9,784 | |||||
Total operating expenses
|
106,915 | 100,922 | |||||
Income from operations
|
13,286 | 6,055 | |||||
Other income (expense):
|
|||||||
Interest expense
|
(195 | ) | (185 | ) | |||
Other, net
|
16 | 30 | |||||
Total other expense
|
(179 | ) | (155 | ) | |||
Income before income taxes
|
13,107 | 5,900 | |||||
Income taxes
|
5,238 | 2,481 | |||||
Net income
|
$ | 7,869 | $ | 3,419 | |||
Net income per share:
|
|||||||
Basic
|
$ | 0.27 | $ | 0.12 | |||
Diluted
|
$ | 0.27 | $ | 0.12 | |||
Weighted average shares outstanding:
|
|||||||
Basic
|
29,135 | 28,951 | |||||
Diluted
|
29,371 | 29,074 | |||||
Dividends per share:
|
$ | 0.07 | $ | 0.07 |
Condensed Consolidated Balance Sheets
|
|||||
(In thousands)
|
|||||
(Unaudited)
|
|||||
March 31,
|
December 31,
|
||||
2011
|
2010 (a)
|
||||
Assets
|
|||||
Current assets:
|
|||||
Cash
|
$ | 85,681 | $ | 74,504 | |
Accounts receivable, net
|
68,387 | 62,763 | |||
Other current assets
|
9,541 | 8,696 | |||
Total current assets
|
163,609 | 145,963 | |||
Property and equipment
|
217,560 | 213,704 | |||
Less accumulated depreciation and amortization
|
88,033 | 87,272 | |||
Total property and equipment, net
|
129,527 | 126,432 | |||
Goodwill and other acquired intangibles:
|
|||||
Goodwill
|
43,332 | 43,332 | |||
Other acquired intangibles, net
|
30,111 | 31,259 | |||
Total goodwill and other acquired intangibles
|
73,443 | 74,591 | |||
Other assets
|
1,523 | 1,810 | |||
Total assets
|
$ | 368,102 | $ | 348,796 | |
Liabilities and Shareholders’ Equity
|
|||||
Current liabilities:
|
|||||
Accounts payable
|
$ | 11,804 | $ | 10,687 | |
Accrued expenses
|
21,900 | 16,280 | |||
Current portion of debt and capital lease obligations
|
603 | 638 | |||
Total current liabilities
|
34,307 | 27,605 | |||
Debt and capital lease obligations, less current portion
|
50,747 | 50,883 | |||
Other long-term liabilities
|
8,371 | 8,106 | |||
Deferred income taxes
|
6,408 | 6,116 | |||
Shareholders’ equity:
|
|||||
Common stock
|
292 | 290 | |||
Additional paid-in capital
|
30,668 | 24,300 | |||
Retained earnings
|
237,309 | 231,496 | |||
Total shareholders’ equity
|
268,269 | 256,086 | |||
Total liabilities and shareholders’ equity
|
$ | 368,102 | $ | 348,796 |
Condensed Consolidated Statements of Cash Flows
|
|||||||
(In thousands)
|
|||||||
(Unaudited)
|
|||||||
Three months ended
|
|||||||
March 31,
|
March 31,
|
||||||
2011
|
2010
|
||||||
Operating activities:
|
|||||||
Net income
|
$ | 7,869 | $ | 3,419 | |||
Adjustments to reconcile net income to net cash provided by operating activities
|
|||||||
Depreciation and amortization
|
5,082 | 4,949 | |||||
Share-based compensation
|
1,443 | 1,763 | |||||
Loss on disposal of property and equipment
|
21 | 1 | |||||
Provision for (recovery) loss on receivables
|
(50 | ) | 90 | ||||
Provision for revenue adjustments
|
484 | 423 | |||||
Deferred income taxes
|
20 | (873 | ) | ||||
Tax benefit for stock options exercised
|
(88 | ) | (4 | ) | |||
Changes in operating assets and liabilities
|
|||||||
Accounts receivable
|
(6,058 | ) | (3,218 | ) | |||
Prepaid expenses and other current assets
|
(881 | ) | 1,786 | ||||
Accounts payable and accrued expenses
|
7,377 | 1,856 | |||||
Net cash provided by operating activities
|
15,219 | 10,192 | |||||
Investing activities:
|
|||||||
Proceeds from disposal of property and equipment
|
279 | 20 | |||||
Purchases of property and equipment
|
(7,329 | ) | (5,426 | ) | |||
Other
|
308 | 39 | |||||
Net cash used in investing activities
|
(6,742 | ) | (5,367 | ) | |||
Financing activities:
|
|||||||
Payments of debt and capital lease obligations
|
(171 | ) | (261 | ) | |||
Proceeds from exercise of stock options
|
4,838 | 38 | |||||
Payments of cash dividends
|
(2,055 | ) | (2,029 | ) | |||
Tax benefit for stock options exercised
|
88 | 4 | |||||
Net cash provided by (used in) financing activities
|
2,700 | (2,248 | ) | ||||
Net increase in cash
|
11,177 | 2,577 | |||||
Cash at beginning of period
|
74,504 | 42,035 | |||||
Cash at end of period
|
$ | 85,681 | $ | 44,612 |
Forward Air Corporation
|
||||||||||||||||||||
Segment Information
|
||||||||||||||||||||
(In millions)
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
Three months ended
|
||||||||||||||||||||
March 31,
|
Percent of
|
March 31,
|
Percent of
|
Percent
|
||||||||||||||||
2011
|
Revenue
|
2010
|
Revenue
|
Change
|
Change
|
|||||||||||||||
Operating revenue
|
||||||||||||||||||||
Forward Air
|
$ | 105.2 | 87.5 | % | $ | 90.9 | 85.0 | % | $ | 14.3 | 15.7 | % | ||||||||
FASI
|
15.2 | 12.6 | 16.4 | 15.3 | (1.2 | ) | (7.3 | ) | ||||||||||||
Intercompany Eliminations
|
(0.2 | ) | (0.1 | ) | (0.3 | ) | (0.3 | ) | 0.1 | (33.3 | ) | |||||||||
Total
|
120.2 | 100.0 | 107.0 | 100.0 | 13.2 | 12.3 | ||||||||||||||
Purchased transportation
|
||||||||||||||||||||
Forward Air
|
46.9 | 44.6 | 41.1 | 45.2 | 5.8 | 14.1 | ||||||||||||||
FASI
|
3.6 | 23.7 | 3.7 | 22.6 | (0.1 | ) | (2.7 | ) | ||||||||||||
Intercompany Eliminations
|
(0.2 | ) | 100.0 | (0.3 | ) | 100.0 | 0.1 | (33.3 | ) | |||||||||||
Total
|
50.3 | 41.8 | 44.5 | 41.6 | 5.8 | 13.0 | ||||||||||||||
Salaries, wages and employee benefits
|
||||||||||||||||||||
Forward Air
|
23.9 | 22.7 | 23.4 | 25.7 | 0.5 | 2.1 | ||||||||||||||
FASI
|
6.6 | 43.4 | 7.3 | 44.5 | (0.7 | ) | (9.6 | ) | ||||||||||||
Total
|
30.5 | 25.4 | 30.7 | 28.7 | (0.2 | ) | (0.7 | ) | ||||||||||||
Operating leases
|
||||||||||||||||||||
Forward Air
|
4.9 | 4.7 | 4.5 | 5.0 | 0.4 | 8.9 | ||||||||||||||
FASI
|
1.8 | 11.8 | 2.1 | 12.8 | (0.3 | ) | (14.3 | ) | ||||||||||||
Total
|
6.7 | 5.6 | 6.6 | 6.2 | 0.1 | 1.5 | ||||||||||||||
Depreciation and amortization
|
||||||||||||||||||||
Forward Air
|
4.1 | 3.9 | 4.0 | 4.4 | 0.1 | 2.5 | ||||||||||||||
FASI
|
1.0 | 6.6 | 0.9 | 5.5 | 0.1 | 11.1 | ||||||||||||||
Total
|
5.1 | 4.2 | 4.9 | 4.6 | 0.2 | 4.1 | ||||||||||||||
Insurance and claims
|
||||||||||||||||||||
Forward Air
|
1.6 | 1.5 | 1.8 | 2.0 | (0.2 | ) | (11.1 | ) | ||||||||||||
FASI
|
0.6 | 3.9 | 0.5 | 3.0 | 0.1 | 20.0 | ||||||||||||||
Total
|
2.2 | 1.8 | 2.3 | 2.1 | (0.1 | ) | (4.3 | ) | ||||||||||||
Fuel expense
|
||||||||||||||||||||
Forward Air
|
1.1 | 1.0 | 0.9 | 1.0 | 0.2 | 22.2 | ||||||||||||||
FASI
|
1.3 | 8.6 | 1.2 | 7.3 | 0.1 | 8.3 | ||||||||||||||
Total
|
2.4 | 2.0 | 2.1 | 2.0 | 0.3 | 14.3 | ||||||||||||||
Other operating expenses
|
||||||||||||||||||||
Forward Air
|
8.4 | 8.0 | 8.0 | 8.8 | 0.4 | 5.0 | ||||||||||||||
FASI
|
1.3 | 8.6 | 1.8 | 11.0 | (0.5 | ) | (27.8 | ) | ||||||||||||
Total
|
9.7 | 8.1 | 9.8 | 9.1 | (0.1 | ) | (1.0 | ) | ||||||||||||
Income (loss) from operations
|
||||||||||||||||||||
Forward Air
|
14.3 | 13.6 | 7.2 | 7.9 | 7.1 | 98.6 | ||||||||||||||
FASI
|
(1.0 | ) | (6.6 | ) | (1.1 | ) | (6.7 | ) | 0.1 | (9.1 | ) | |||||||||
Total
|
$ | 13.3 | 11.1 | % | $ | 6.1 | 5.7 | % | $ | 7.2 | 118.0 | % |
Forward Air Inc. Operating Statistics
|
|||||||||||
Three months ended
|
|||||||||||
March 31,
|
March 31,
|
Percent
|
|||||||||
2011
|
2010
|
Change
|
|||||||||
Operating ratio
|
86.4 | % | 92.1 | % | (6.2 | ) | % | ||||
Business days
|
64.0 | 63.0 | 1.6 | ||||||||
Business weeks
|
12.8 | 12.6 | 1.6 | ||||||||
Airport-to-airport:
|
|||||||||||
Tonnage
|
|||||||||||
Total pounds ¹
|
400,558 | 378,625 | 5.8 | ||||||||
Average weekly pounds ¹
|
31,294 | 30,050 | 4.1 | ||||||||
Linehaul shipments
|
|||||||||||
Total linehaul
|
572,456 | 546,313 | 4.8 | ||||||||
Average weekly
|
44,723 | 43,358 | 3.1 | ||||||||
Forward Air Complete shipments
|
83,006 | 69,106 | 20.1 | ||||||||
As a percentage of linehaul shipments
|
14.5 | % | 12.6 | % | 15.1 | ||||||
Average linehaul shipment size
|
700 | 693 | 1.0 | ||||||||
Revenue per pound ²
|
|||||||||||
Linehaul yield
|
$ | 16.69 | $ | 15.93 | 4.1 | ||||||
Fuel surcharge impact
|
1.66 | 1.09 | 3.0 | ||||||||
Forward Air Complete impact
|
2.18 | 1.74 | 2.3 | ||||||||
Total airport-to-airport yield
|
$ | 20.53 | $ | 18.76 | 9.4 | ||||||
Logistics:
|
|||||||||||
Miles
|
|||||||||||
Owner operator ¹
|
6,980 | 5,937 | 17.6 | ||||||||
Third party ¹
|
3,259 | 2,738 | 19.0 | ||||||||
Total Miles
|
10,239 | 8,675 | 18.0 | ||||||||
Revenue per mile
|
$ | 1.62 | $ | 1.61 | 0.6 | ||||||
|
|||||||||||
Cost per mile
|
$ | 1.25 | $ | 1.24 | 0.8 | % | |||||
¹ - In thousands
|
|||||||||||
² - In cents per pound; percentage change is expressed as a percent of total yield.
|