Forward Air Corporation | |||||||||||||||
Consolidated Statements of Income | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Year ended | ||||||||||||||
December 31, 2011 | December 31, 2010 | December 31, 2011 | December 31, 2010 | ||||||||||||
Operating revenue: | |||||||||||||||
Forward Air | |||||||||||||||
Airport-to-airport | $ | 95,024 | $ | 87,245 | $ | 361,630 | $ | 321,702 | |||||||
Logistics | 21,485 | 17,147 | 74,394 | 64,935 | |||||||||||
Other | 7,116 | 6,386 | 27,640 | 25,130 | |||||||||||
Forward Air Solutions | |||||||||||||||
Pool distribution | 24,634 | 22,532 | 72,738 | 72,172 | |||||||||||
Total operating revenue | 148,259 | 133,310 | 536,402 | 483,939 | |||||||||||
Operating expenses: | |||||||||||||||
Purchased transportation | |||||||||||||||
Forward Air | |||||||||||||||
Airport-to-airport | 38,294 | 34,959 | 142,705 | 129,111 | |||||||||||
Logistics | 16,045 | 13,445 | 56,259 | 50,225 | |||||||||||
Other | 1,752 | 1,476 | 6,681 | 6,288 | |||||||||||
Forward Air Solutions | |||||||||||||||
Pool distribution | 6,288 | 5,123 | 17,355 | 15,747 | |||||||||||
Total purchased transportation | 62,379 | 55,003 | 223,000 | 201,371 | |||||||||||
Salaries, wages and employee benefits | 35,315 | 33,426 | 130,651 | 129,108 | |||||||||||
Operating leases | 7,039 | 6,864 | 27,122 | 26,252 | |||||||||||
Depreciation and amortization | 5,259 | 5,167 | 20,993 | 20,450 | |||||||||||
Insurance and claims | 2,658 | 2,442 | 8,798 | 8,425 | |||||||||||
Fuel expense | 2,683 | 2,409 | 10,041 | 8,461 | |||||||||||
Other operating expenses | 9,297 | 9,321 | 38,687 | 36,133 | |||||||||||
Total operating expenses | 124,630 | 114,632 | 459,292 | 430,200 | |||||||||||
Income from operations | 23,629 | 18,678 | 77,110 | 53,739 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (151 | ) | (173 | ) | (619 | ) | (730 | ) | |||||||
Other, net | 16 | 53 | 74 | 90 | |||||||||||
Total other expense | (135 | ) | (120 | ) | (545 | ) | (640 | ) | |||||||
Income before income taxes | 23,494 | 18,558 | 76,565 | 53,099 | |||||||||||
Income taxes | 9,045 | 6,741 | 29,366 | 21,063 | |||||||||||
Net income | $ | 14,449 | $ | 11,817 | $ | 47,199 | $ | 32,036 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.51 | $ | 0.41 | $ | 1.62 | $ | 1.11 | |||||||
Diluted | $ | 0.50 | $ | 0.41 | $ | 1.60 | $ | 1.10 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 28,502 | 29,010 | 29,052 | 28,984 | |||||||||||
Diluted | 28,968 | 29,174 | 29,435 | 29,111 | |||||||||||
Dividends per share: | $ | 0.07 | $ | 0.07 | $ | 0.28 | $ | 0.28 |
Forward Air Corporation | |||||||
Consolidated Balance Sheets | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
December 31, 2011 | December 31, 2010 (a) | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 58,801 | $ | 74,504 | |||
Accounts receivable, net | 70,922 | 62,763 | |||||
Other current assets | 9,994 | 8,696 | |||||
Total current assets | 139,717 | 145,963 | |||||
Property and equipment | 223,135 | 213,704 | |||||
Less accumulated depreciation and amortization | 93,267 | 87,272 | |||||
Net property and equipment | 129,868 | 126,432 | |||||
Goodwill and other acquired intangibles: | |||||||
Goodwill | 43,332 | 43,332 | |||||
Other acquired intangibles, net of accumulated amortization | 26,668 | 31,259 | |||||
Total net goodwill and other acquired intangibles | 70,000 | 74,591 | |||||
Other assets | 1,566 | 1,810 | |||||
Total assets | $ | 341,151 | $ | 348,796 | |||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 12,392 | $ | 10,687 | |||
Accrued expenses | 20,986 | 16,280 | |||||
Current portion of debt and capital lease obligations | 552 | 638 | |||||
Total current liabilities | 33,930 | 27,605 | |||||
Debt and capital lease obligations, less current portion | 333 | 50,883 | |||||
Other long-term liabilities | 8,860 | 8,106 | |||||
Deferred income taxes | 11,126 | 6,116 | |||||
Commitments and contingencies | |||||||
Shareholders’ equity: | |||||||
Common stock | 285 | 290 | |||||
Additional paid-in capital | 16,121 | 24,300 | |||||
Retained earnings | 270,496 | 231,496 | |||||
Total shareholders’ equity | 286,902 | 256,086 | |||||
Total liabilities and shareholders’ equity | $ | 341,151 | $ | 348,796 | |||
(a) Taken from audited financial statements, which are not presented in their entirety. |
Forward Air Corporation | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
Three months ended | |||||||
December 31, 2011 | December 31, 2010 | ||||||
Operating activities: | |||||||
Net income | $ | 14,449 | $ | 11,817 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | 5,259 | 5,167 | |||||
Share-based compensation | 1,514 | 1,397 | |||||
(Gain) loss on disposal of property and equipment | (6 | ) | 78 | ||||
Provision for recovery on receivables | (234 | ) | (254 | ) | |||
Provision for revenue adjustments | 471 | 127 | |||||
Deferred income taxes | (931 | ) | 3,060 | ||||
Tax benefit for stock options exercised | (515 | ) | (166 | ) | |||
Changes in operating assets and liabilities | |||||||
Accounts receivable | (1,585 | ) | (198 | ) | |||
Prepaid expenses and other current assets | 71 | 989 | |||||
Accounts payable and accrued expenses | 3,636 | (5,883 | ) | ||||
Net cash provided by operating activities | 22,129 | 16,134 | |||||
Investing activities: | |||||||
Proceeds from disposal of property and equipment | 270 | 69 | |||||
Purchases of property and equipment | (924 | ) | (3,259 | ) | |||
Other | (38 | ) | (224 | ) | |||
Net cash used in investing activities | (692 | ) | (3,414 | ) | |||
Financing activities: | |||||||
Payments of debt and capital lease obligations | (149 | ) | (173 | ) | |||
Payments on line of credit | (50,000 | ) | — | ||||
Proceeds from exercise of stock options | 3,225 | 501 | |||||
Payments of cash dividends | (2,007 | ) | (2,033 | ) | |||
Repurchase of common stock (repurchase program) | (1,807 | ) | — | ||||
Common stock issued under employee stock purchase plan | 120 | 104 | |||||
Tax benefit for stock options exercised | 515 | 166 | |||||
Net cash used in financing activities | (50,103 | ) | (1,435 | ) | |||
Net (decrease) increase in cash | (28,666 | ) | 11,285 | ||||
Cash at beginning of period | 87,467 | 63,219 | |||||
Cash at end of period | $ | 58,801 | $ | 74,504 |
Forward Air Corporation | |||||||
Consolidated Statements of Cash Flows | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
Year ended | |||||||
December 31, 2011 | December 31, 2010 | ||||||
Operating activities: | |||||||
Net income | $ | 47,199 | $ | 32,036 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | 20,993 | 20,450 | |||||
Share-based compensation | 5,971 | 6,284 | |||||
Gain on disposal of property and equipment | (82 | ) | (570 | ) | |||
Provision for recovery on receivables | (217 | ) | (52 | ) | |||
Provision for revenue adjustments | 1,951 | 1,589 | |||||
Deferred income taxes | 5,148 | 1,436 | |||||
Tax benefit for stock options exercised | (747 | ) | (194 | ) | |||
Changes in operating assets and liabilities | |||||||
Accounts receivable | (9,893 | ) | (8,580 | ) | |||
Prepaid expenses and other current assets | (1,757 | ) | (40 | ) | |||
Accounts payable and accrued expenses | 8,393 | 3,022 | |||||
Income taxes | — | (1,386 | ) | ||||
Net cash provided by operating activities | 76,959 | 53,995 | |||||
Investing activities: | |||||||
Proceeds from disposal of property and equipment | 1,267 | 1,482 | |||||
Purchases of property and equipment | (21,216 | ) | (15,148 | ) | |||
Other | 278 | (224 | ) | ||||
Net cash used in investing activities | (19,671 | ) | (13,890 | ) | |||
Financing activities: | |||||||
Payments of debt and capital lease obligations | (637 | ) | (895 | ) | |||
Payments on line of credit | (50,000 | ) | — | ||||
Proceeds from exercise of stock options | 10,946 | 991 | |||||
Payments of cash dividends | (8,194 | ) | (8,121 | ) | |||
Repurchase of common stock (repurchase program) | (26,101 | ) | — | ||||
Common stock issued under employee stock purchase plan | 248 | 195 | |||||
Tax benefit for stock options exercised | 747 | 194 | |||||
Net cash used in financing activities | (72,991 | ) | (7,636 | ) | |||
Net (decrease) increase in cash | (15,703 | ) | 32,469 | ||||
Cash at beginning of year | 74,504 | 42,035 | |||||
Cash at end of year | $ | 58,801 | $ | 74,504 |
Forward Air Corporation | ||||||||||||||||||||
Segment Information | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended | ||||||||||||||||||||
December 31, 2011 | Percent of | December 31, 2010 | Percent of | Percent | ||||||||||||||||
Revenue | Revenue | Change | Change | |||||||||||||||||
Operating revenue | ||||||||||||||||||||
Forward Air | $ | 123.9 | 83.6 | % | $ | 111.1 | 83.3 | % | $ | 12.8 | 11.5 | % | ||||||||
FASI | 24.8 | 16.7 | 22.6 | 17.0 | 2.2 | 9.7 | ||||||||||||||
Intercompany eliminations | (0.5 | ) | (0.3 | ) | (0.4 | ) | (0.3 | ) | (0.1 | ) | 25.0 | |||||||||
Total | 148.2 | 100.0 | 133.3 | 100.0 | 14.9 | 11.2 | ||||||||||||||
Purchased transportation | ||||||||||||||||||||
Forward Air | 56.3 | 45.4 | 49.9 | 44.9 | 6.4 | 12.8 | ||||||||||||||
FASI | 6.5 | 26.2 | 5.5 | 24.3 | 1.0 | 18.2 | ||||||||||||||
Intercompany eliminations | (0.4 | ) | 80.0 | (0.4 | ) | 100.0 | — | — | ||||||||||||
Total | 62.4 | 42.1 | 55.0 | 41.3 | 7.4 | 13.5 | ||||||||||||||
Salaries, wages and employee benefits | ||||||||||||||||||||
Forward Air | 26.2 | 21.1 | 24.9 | 22.4 | 1.3 | 5.2 | ||||||||||||||
FASI | 9.1 | 36.7 | 8.5 | 37.6 | 0.6 | 7.1 | ||||||||||||||
Total | 35.3 | 23.8 | 33.4 | 25.0 | 1.9 | 5.7 | ||||||||||||||
Operating leases | ||||||||||||||||||||
Forward Air | 4.9 | 4.0 | 5.0 | 4.5 | (0.1 | ) | (2.0 | ) | ||||||||||||
FASI | 2.1 | 8.5 | 1.9 | 8.4 | 0.2 | 10.5 | ||||||||||||||
Total | 7.0 | 4.7 | 6.9 | 5.2 | 0.1 | 1.4 | ||||||||||||||
Depreciation and amortization | ||||||||||||||||||||
Forward Air | 4.2 | 3.4 | 4.2 | 3.8 | — | — | ||||||||||||||
FASI | 1.1 | 4.4 | 1.0 | 4.4 | 0.1 | 10.0 | ||||||||||||||
Total | 5.3 | 3.6 | 5.2 | 3.9 | 0.1 | 1.9 | ||||||||||||||
Insurance and claims | ||||||||||||||||||||
Forward Air | 2.3 | 1.9 | 1.6 | 1.4 | 0.7 | 43.8 | ||||||||||||||
FASI | 0.3 | 1.2 | 0.8 | 3.6 | (0.5 | ) | (62.5 | ) | ||||||||||||
Total | 2.6 | 1.8 | 2.4 | 1.8 | 0.2 | 8.3 | ||||||||||||||
Fuel expense | ||||||||||||||||||||
Forward Air | 1.1 | 0.9 | 1.0 | 0.9 | 0.1 | 10.0 | ||||||||||||||
FASI | 1.6 | 6.4 | 1.4 | 6.2 | 0.2 | 14.3 | ||||||||||||||
Total | 2.7 | 1.8 | 2.4 | 1.8 | 0.3 | 12.5 | ||||||||||||||
Other operating expenses | ||||||||||||||||||||
Forward Air | 7.7 | 6.2 | 7.6 | 6.9 | 0.1 | 1.3 | ||||||||||||||
FASI | 1.7 | 6.9 | 1.7 | 7.5 | — | — | ||||||||||||||
Intercompany eliminations | (0.1 | ) | 20.0 | — | — | (0.1 | ) | 100.0 | ||||||||||||
Total | 9.3 | 6.3 | 9.3 | 7.0 | — | — | ||||||||||||||
Income from operations | ||||||||||||||||||||
Forward Air | 21.2 | 17.1 | 16.9 | 15.2 | 4.3 | 25.4 | ||||||||||||||
FASI | 2.4 | 9.7 | 1.8 | 8.0 | 0.6 | 33.3 | ||||||||||||||
Total | $ | 23.6 | 15.9 | % | $ | 18.7 | 14.0 | % | $ | 4.9 | 26.2 | % | ||||||||
Forward Air Corporation | ||||||||||||||||||||
Segment Information | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Year ended | ||||||||||||||||||||
December 31, 2011 | Percent of | December 31, 2010 | Percent of | Percent | ||||||||||||||||
Revenue | Revenue | Change | Change | |||||||||||||||||
Operating revenue | ||||||||||||||||||||
Forward Air | $ | 464.5 | 86.6 | % | $ | 412.9 | 85.3 | % | $ | 51.6 | 12.5 | % | ||||||||
FASI | 73.2 | 13.6 | 72.5 | 15.0 | 0.7 | 1.0 | ||||||||||||||
Intercompany eliminations | (1.3 | ) | (0.2 | ) | (1.5 | ) | (0.3 | ) | 0.2 | (13.3 | ) | |||||||||
Total | 536.4 | 100.0 | 483.9 | 100.0 | 52.5 | 10.8 | ||||||||||||||
Purchased transportation | ||||||||||||||||||||
Forward Air | 206.0 | 44.4 | 185.8 | 45.0 | 20.2 | 10.9 | ||||||||||||||
FASI | 18.2 | 24.9 | 16.9 | 23.3 | 1.3 | 7.7 | ||||||||||||||
Intercompany eliminations | (1.2 | ) | 92.3 | (1.3 | ) | 86.7 | 0.1 | (7.7 | ) | |||||||||||
Total | 223.0 | 41.6 | 201.4 | 41.6 | 21.6 | 10.7 | ||||||||||||||
Salaries, wages and employee benefits | ||||||||||||||||||||
Forward Air | 101.3 | 21.8 | 98.3 | 23.8 | 3.0 | 3.1 | ||||||||||||||
FASI | 29.4 | 40.2 | 30.8 | 42.5 | (1.4 | ) | (4.5 | ) | ||||||||||||
Total | 130.7 | 24.4 | 129.1 | 26.7 | 1.6 | 1.2 | ||||||||||||||
Operating leases | ||||||||||||||||||||
Forward Air | 19.7 | 4.2 | 18.6 | 4.5 | 1.1 | 5.9 | ||||||||||||||
FASI | 7.4 | 10.1 | 7.7 | 10.6 | (0.3 | ) | (3.9 | ) | ||||||||||||
Total | 27.1 | 5.0 | 26.3 | 5.4 | 0.8 | 3.0 | ||||||||||||||
Depreciation and amortization | ||||||||||||||||||||
Forward Air | 16.8 | 3.6 | 16.5 | 4.0 | 0.3 | 1.8 | ||||||||||||||
FASI | 4.2 | 5.7 | 3.9 | 5.4 | 0.3 | 7.7 | ||||||||||||||
Total | 21.0 | 3.9 | 20.4 | 4.2 | 0.6 | 2.9 | ||||||||||||||
Insurance and claims | ||||||||||||||||||||
Forward Air | 7.2 | 1.6 | 6.2 | 1.5 | 1.0 | 16.1 | ||||||||||||||
FASI | 1.6 | 2.2 | 2.2 | 3.0 | (0.6 | ) | (27.3 | ) | ||||||||||||
Total | 8.8 | 1.6 | 8.4 | 1.7 | 0.4 | 4.8 | ||||||||||||||
Fuel expense | ||||||||||||||||||||
Forward Air | 4.4 | 0.9 | 3.8 | 0.9 | 0.6 | 15.8 | ||||||||||||||
FASI | 5.6 | 7.6 | 4.7 | 6.5 | 0.9 | 19.1 | ||||||||||||||
Total | 10.0 | 1.9 | 8.5 | 1.8 | 1.5 | 17.6 | ||||||||||||||
Other operating expenses | ||||||||||||||||||||
Forward Air | 32.6 | 7.0 | 29.8 | 7.2 | 2.8 | 9.4 | ||||||||||||||
FASI | 6.2 | 8.5 | 6.5 | 9.0 | (0.3 | ) | (4.6 | ) | ||||||||||||
Intercompany eliminations | (0.1 | ) | 7.7 | (0.2 | ) | 13.3 | 0.1 | (50.0 | ) | |||||||||||
Total | 38.7 | 7.2 | 36.1 | 7.5 | 2.6 | 7.2 | ||||||||||||||
Income (loss) from operations | ||||||||||||||||||||
Forward Air | 76.5 | 16.5 | 53.9 | 13.1 | 22.6 | 41.9 | ||||||||||||||
FASI | 0.6 | 0.8 | (0.2 | ) | (0.3 | ) | 0.8 | (400.0 | ) | |||||||||||
Total | $ | 77.1 | 14.4 | % | $ | 53.7 | 11.1 | % | $ | 23.4 | 43.6 | % |
Forward Air Corporation | ||||||||||
Forward Air Inc. Operating Statistics | ||||||||||
Three months ended | ||||||||||
December 31, | December 31, | Percent | ||||||||
2011 | 2010 | Change | ||||||||
Operating ratio | 82.9 | % | 84.8 | % | (2.2 | )% | ||||
Business days | 63.0 | 63.0 | — | |||||||
Business weeks | 12.6 | 12.6 | — | |||||||
Airport-to-airport: | ||||||||||
Tonnage | ||||||||||
Total pounds ¹ | 458,773 | 437,977 | 4.7 | |||||||
Average weekly pounds ¹ | 36,411 | 34,760 | 4.7 | |||||||
Linehaul shipments | ||||||||||
Total linehaul | 649,152 | 623,211 | 4.2 | |||||||
Average weekly | 51,520 | 49,461 | 4.2 | |||||||
Forward Air Complete shipments | 104,143 | 85,917 | 21.2 | |||||||
As a percentage of linehaul shipments | 16.0 | % | 13.8 | % | 15.9 | |||||
Average linehaul shipment size | 707 | 703 | 0.6 | |||||||
Revenue per pound ² | ||||||||||
Linehaul yield | $ | 16.83 | $ | 16.70 | 0.6 | |||||
Fuel surcharge impact | 1.67 | 1.28 | 2.0 | |||||||
Forward Air Complete impact | 2.25 | 1.97 | 1.4 | |||||||
Total airport-to-airport yield | $ | 20.75 | $ | 19.95 | 4.0 | |||||
Logistics: | ||||||||||
Miles | ||||||||||
Owner operator ¹ | 8,472 | 7,179 | 18.0 | |||||||
Third party ¹ | 4,093 | 3,617 | 13.2 | |||||||
Total Miles | 12,565 | 10,796 | 16.4 | |||||||
Revenue per mile | $ | 1.71 | $ | 1.61 | 6.2 | |||||
Cost per mile | $ | 1.28 | $ | 1.25 | 2.4 | % | ||||
¹ - In thousands | ||||||||||
² - In cents per 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 | ||||||||
2011 | 2010 | Change | ||||||||
Operating ratio | 83.5 | % | 86.9 | % | (3.9 | )% | ||||
Business days | 255.0 | 254.0 | 0.4 | |||||||
Business weeks | 51.0 | 50.8 | 0.4 | |||||||
Airport-to-airport: | ||||||||||
Tonnage | ||||||||||
Total pounds ¹ | 1,735,409 | 1,655,075 | 4.9 | |||||||
Average weekly pounds ¹ | 34,028 | 32,580 | 4.4 | |||||||
Linehaul shipments | ||||||||||
Total linehaul | 2,419,350 | 2,308,468 | 4.8 | |||||||
Average weekly | 47,438 | 45,442 | 4.4 | |||||||
Forward Air Complete shipments | 374,116 | 314,203 | 19.1 | |||||||
As a percentage of linehaul shipments | 15.5 | % | 13.6 | % | 14.0 | |||||
Average linehaul shipment size | 717 | 717 | — | |||||||
Revenue per pound ² | ||||||||||
Linehaul yield | $ | 16.80 | $ | 16.40 | 2.1 | |||||
Fuel surcharge impact | 1.80 | 1.21 | 3.0 | |||||||
Forward Air Complete impact | 2.27 | 1.86 | 2.1 | |||||||
Total airport-to-airport yield | $ | 20.87 | $ | 19.47 | 7.2 | |||||
Logistics: | ||||||||||
Miles | ||||||||||
Owner operator ¹ | 30,885 | 27,086 | 14.0 | |||||||
Third party ¹ | 13,798 | 12,943 | 6.6 | |||||||
Total Miles | 44,683 | 40,029 | 11.6 | |||||||
Revenue per mile | $ | 1.67 | $ | 1.64 | 1.8 | |||||
Cost per mile | $ | 1.26 | $ | 1.25 | 0.8 | % | ||||
¹ - In thousands | ||||||||||
² - In cents per pound; percentage change is expressed as a percent of total yield. |