Forward Air Corporation | |||||||||||||||
Consolidated Statements of Income | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Year ended | ||||||||||||||
December 31, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | ||||||||||||
Operating revenue: | |||||||||||||||
Forward Air | |||||||||||||||
Airport-to-airport | $ | 100,691 | $ | 95,024 | $ | 390,697 | $ | 361,630 | |||||||
Logistics | 20,473 | 21,485 | 83,787 | 74,394 | |||||||||||
Other | 6,639 | 7,116 | 26,137 | 27,640 | |||||||||||
Forward Air Solutions | |||||||||||||||
Pool distribution | 27,722 | 24,634 | 83,825 | 72,738 | |||||||||||
Total operating revenue | 155,525 | 148,259 | 584,446 | 536,402 | |||||||||||
Operating expenses: | |||||||||||||||
Purchased transportation | |||||||||||||||
Forward Air | |||||||||||||||
Airport-to-airport | 40,519 | 38,294 | 160,065 | 142,705 | |||||||||||
Logistics | 15,447 | 16,045 | 63,203 | 56,259 | |||||||||||
Other | 1,989 | 1,752 | 7,241 | 6,681 | |||||||||||
Forward Air Solutions | |||||||||||||||
Pool distribution | 7,221 | 6,288 | 22,211 | 17,355 | |||||||||||
Total purchased transportation | 65,176 | 62,379 | 252,720 | 223,000 | |||||||||||
Salaries, wages and employee benefits | 37,597 | 35,315 | 135,006 | 130,651 | |||||||||||
Operating leases | 7,164 | 7,039 | 27,989 | 27,122 | |||||||||||
Depreciation and amortization | 5,081 | 5,259 | 21,021 | 20,993 | |||||||||||
Insurance and claims | 3,177 | 2,658 | 11,309 | 8,798 | |||||||||||
Fuel expense | 2,767 | 2,683 | 10,038 | 10,041 | |||||||||||
Other operating expenses | 10,529 | 9,297 | 42,831 | 38,687 | |||||||||||
Total operating expenses | 131,491 | 124,630 | 500,914 | 459,292 | |||||||||||
Income from operations | 24,034 | 23,629 | 83,532 | 77,110 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (150 | ) | (151 | ) | (391 | ) | (619 | ) | |||||||
Other, net | 20 | 16 | 14 | 74 | |||||||||||
Total other expense | (130 | ) | (135 | ) | (377 | ) | (545 | ) | |||||||
Income before income taxes | 23,904 | 23,494 | 83,155 | 76,565 | |||||||||||
Income taxes | 7,944 | 9,045 | 30,487 | 29,366 | |||||||||||
Net income | $ | 15,960 | $ | 14,449 | $ | 52,668 | $ | 47,199 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.55 | $ | 0.51 | $ | 1.82 | $ | 1.62 | |||||||
Diluted | $ | 0.54 | $ | 0.50 | $ | 1.78 | $ | 1.60 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 29,190 | 28,502 | 28,967 | 29,052 | |||||||||||
Diluted | 29,716 | 28,968 | 29,536 | 29,435 | |||||||||||
Dividends per share: | $ | 0.10 | $ | 0.07 | $ | 0.34 | $ | 0.28 |
Forward Air Corporation | |||||||
Consolidated Balance Sheets | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
December 31, 2012 | December 31, 2011 (a) | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 112,182 | $ | 58,801 | |||
Accounts receivable, net | 75,262 | 70,922 | |||||
Other current assets | 10,952 | 9,994 | |||||
Total current assets | 198,396 | 139,717 | |||||
Property and equipment | 239,138 | 223,135 | |||||
Less accumulated depreciation and amortization | 105,581 | 93,267 | |||||
Net property and equipment | 133,557 | 129,868 | |||||
Goodwill and other acquired intangibles: | |||||||
Goodwill | 43,332 | 43,332 | |||||
Other acquired intangibles, net of accumulated amortization | 22,102 | 26,668 | |||||
Total net goodwill and other acquired intangibles | 65,434 | 70,000 | |||||
Other assets | 1,800 | 1,566 | |||||
Total assets | $ | 399,187 | $ | 341,151 | |||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 11,168 | $ | 12,392 | |||
Accrued expenses | 16,476 | 20,986 | |||||
Current portion of debt and capital lease obligations | 276 | 552 | |||||
Total current liabilities | 27,920 | 33,930 | |||||
Debt and capital lease obligations, less current portion | 58 | 333 | |||||
Other long-term liabilities | 7,098 | 8,860 | |||||
Deferred income taxes | 12,440 | 11,126 | |||||
Commitments and contingencies | |||||||
Shareholders’ equity: | |||||||
Common stock | 292 | 285 | |||||
Additional paid-in capital | 64,644 | 42,212 | |||||
Retained earnings | 286,735 | 244,405 | |||||
Total shareholders’ equity | 351,671 | 286,902 | |||||
Total liabilities and shareholders’ equity | $ | 399,187 | $ | 341,151 | |||
(a) Taken from audited financial statements, which are not presented in their entirety. |
Forward Air Corporation | |||||||
Consolidated Statements of Cash Flows | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
Three months ended | |||||||
December 31, 2012 | December 31, 2011 | ||||||
Operating activities: | |||||||
Net income | $ | 15,960 | $ | 14,449 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | 5,081 | 5,259 | |||||
Share-based compensation | 1,500 | 1,514 | |||||
Loss (gain) on disposal of property and equipment | 59 | (6 | ) | ||||
Provision for recovery on receivables | (27 | ) | (234 | ) | |||
Provision for revenue adjustments | 586 | 471 | |||||
Deferred income taxes | (417 | ) | (931 | ) | |||
Tax benefit for stock options exercised | (31 | ) | (515 | ) | |||
Changes in operating assets and liabilities | |||||||
Accounts receivable | (943 | ) | (1,585 | ) | |||
Prepaid expenses and other current assets | 298 | 71 | |||||
Accounts payable and accrued expenses | 841 | 3,636 | |||||
Net cash provided by operating activities | 22,907 | 22,129 | |||||
Investing activities: | |||||||
Proceeds from disposal of property and equipment | 44 | 270 | |||||
Purchases of property and equipment | (854 | ) | (924 | ) | |||
Other | 4 | (38 | ) | ||||
Net cash used in investing activities | (806 | ) | (692 | ) | |||
Financing activities: | |||||||
Payments of debt and capital lease obligations | (140 | ) | (149 | ) | |||
Payments on line of credit | — | (50,000 | ) | ||||
Proceeds from exercise of stock options | — | 3,225 | |||||
Payments of cash dividends | (2,938 | ) | (2,007 | ) | |||
Repurchase of common stock (repurchase program) | — | (1,807 | ) | ||||
Common stock issued under employee stock purchase plan | 140 | 120 | |||||
Tax benefit for stock options exercised | 31 | 515 | |||||
Net cash used in financing activities | (2,907 | ) | (50,103 | ) | |||
Net increase (decrease) in cash | 19,194 | (28,666 | ) | ||||
Cash at beginning of period | 92,988 | 87,467 | |||||
Cash at end of period | $ | 112,182 | $ | 58,801 |
Forward Air Corporation | |||||||
Consolidated Statements of Cash Flows | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
Year ended | |||||||
December 31, 2012 | December 31, 2011 | ||||||
Operating activities: | |||||||
Net income | $ | 52,668 | $ | 47,199 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | 21,021 | 20,993 | |||||
Share-based compensation | 6,050 | 5,971 | |||||
Loss (gain) on disposal of property and equipment | 318 | (82 | ) | ||||
Provision for loss (recovery) on receivables | 199 | (217 | ) | ||||
Provision for revenue adjustments | 2,003 | 1,951 | |||||
Deferred income taxes | 2,043 | 5,148 | |||||
Tax benefit for stock options exercised | (385 | ) | (747 | ) | |||
Changes in operating assets and liabilities | |||||||
Accounts receivable | (6,542 | ) | (9,893 | ) | |||
Prepaid expenses and other current assets | (1,331 | ) | (1,757 | ) | |||
Accounts payable and accrued expenses | (7,458 | ) | 8,393 | ||||
Net cash provided by operating activities | 68,586 | 76,959 | |||||
Investing activities: | |||||||
Proceeds from disposal of property and equipment | 911 | 1,267 | |||||
Purchases of property and equipment | (21,353 | ) | (21,216 | ) | |||
Other | (263 | ) | 278 | ||||
Net cash used in investing activities | (20,705 | ) | (19,671 | ) | |||
Financing activities: | |||||||
Payments of debt and capital lease obligations | (551 | ) | (637 | ) | |||
Payments on line of credit | — | (50,000 | ) | ||||
Proceeds from exercise of stock options | 15,740 | 10,946 | |||||
Payments of cash dividends | (9,947 | ) | (8,194 | ) | |||
Repurchase of common stock (repurchase program) | — | (26,101 | ) | ||||
Common stock issued under employee stock purchase plan | 259 | 248 | |||||
Cash settlement of share-based awards for minimum tax withholdings | (386 | ) | — | ||||
Tax benefit for stock options exercised | 385 | 747 | |||||
Net cash provided by (used in) financing activities | 5,500 | (72,991 | ) | ||||
Net increase (decrease) in cash | 53,381 | (15,703 | ) | ||||
Cash at beginning of year | 58,801 | 74,504 | |||||
Cash at end of year | $ | 112,182 | $ | 58,801 |
Forward Air Corporation | ||||||||||||||||||||
Segment Information | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended | ||||||||||||||||||||
December 31, 2012 | Percent of | December 31, 2011 | Percent of | Percent | ||||||||||||||||
Revenue | Revenue | Change | Change | |||||||||||||||||
Operating revenue | ||||||||||||||||||||
Forward Air | $ | 128.4 | 82.6 | % | $ | 123.9 | 83.6 | % | $ | 4.5 | 3.6 | % | ||||||||
FASI | 27.9 | 17.9 | 24.8 | 16.7 | 3.1 | 12.5 | ||||||||||||||
Intercompany eliminations | (0.8 | ) | (0.5 | ) | (0.5 | ) | (0.3 | ) | (0.3 | ) | 60.0 | |||||||||
Total | 155.5 | 100.0 | 148.2 | 100.0 | 7.3 | 4.9 | ||||||||||||||
Purchased transportation | ||||||||||||||||||||
Forward Air | 58.1 | 45.3 | 56.3 | 45.4 | 1.8 | 3.2 | ||||||||||||||
FASI | 7.8 | 27.9 | 6.5 | 26.2 | 1.3 | 20.0 | ||||||||||||||
Intercompany eliminations | (0.7 | ) | 87.5 | (0.4 | ) | 80.0 | (0.3 | ) | 75.0 | |||||||||||
Total | 65.2 | 41.9 | 62.4 | 42.1 | 2.8 | 4.5 | ||||||||||||||
Salaries, wages and employee benefits | ||||||||||||||||||||
Forward Air | 27.7 | 21.6 | 26.2 | 21.1 | 1.5 | 5.7 | ||||||||||||||
FASI | 9.9 | 35.5 | 9.1 | 36.7 | 0.8 | 8.8 | ||||||||||||||
Total | 37.6 | 24.2 | 35.3 | 23.8 | 2.3 | 6.5 | ||||||||||||||
Operating leases | ||||||||||||||||||||
Forward Air | 5.2 | 4.1 | 4.9 | 4.0 | 0.3 | 6.1 | ||||||||||||||
FASI | 2.0 | 7.2 | 2.1 | 8.5 | (0.1 | ) | (4.8 | ) | ||||||||||||
Total | 7.2 | 4.6 | 7.0 | 4.7 | 0.2 | 2.9 | ||||||||||||||
Depreciation and amortization | ||||||||||||||||||||
Forward Air | 3.9 | 3.0 | 4.2 | 3.4 | (0.3 | ) | (7.1 | ) | ||||||||||||
FASI | 1.2 | 4.3 | 1.1 | 4.4 | 0.1 | 9.1 | ||||||||||||||
Total | 5.1 | 3.3 | 5.3 | 3.6 | (0.2 | ) | (3.8 | ) | ||||||||||||
Insurance and claims | ||||||||||||||||||||
Forward Air | 2.5 | 1.9 | 2.3 | 1.9 | 0.2 | 8.7 | ||||||||||||||
FASI | 0.7 | 2.5 | 0.3 | 1.2 | 0.4 | 133.3 | ||||||||||||||
Total | 3.2 | 2.1 | 2.6 | 1.8 | 0.6 | 23.1 | ||||||||||||||
Fuel expense | ||||||||||||||||||||
Forward Air | 1.0 | 0.8 | 1.1 | 0.9 | (0.1 | ) | (9.1 | ) | ||||||||||||
FASI | 1.7 | 6.1 | 1.6 | 6.4 | 0.1 | 6.3 | ||||||||||||||
Total | 2.7 | 1.7 | 2.7 | 1.8 | — | — | ||||||||||||||
Other operating expenses | ||||||||||||||||||||
Forward Air | 8.4 | 6.5 | 7.7 | 6.2 | 0.7 | 9.1 | ||||||||||||||
FASI | 2.2 | 7.9 | 1.7 | 6.9 | 0.5 | 29.4 | ||||||||||||||
Intercompany eliminations | (0.1 | ) | 12.5 | (0.1 | ) | 20.0 | — | — | ||||||||||||
Total | 10.5 | 6.8 | 9.3 | 6.3 | 1.2 | 12.9 | ||||||||||||||
Income from operations | ||||||||||||||||||||
Forward Air | 21.6 | 16.8 | 21.2 | 17.1 | 0.4 | 1.9 | ||||||||||||||
FASI | 2.4 | 8.6 | 2.4 | 9.7 | — | — | ||||||||||||||
Total | $ | 24.0 | 15.4 | % | $ | 23.6 | 15.9 | % | $ | 0.4 | 1.7 | % | ||||||||
Forward Air Corporation | ||||||||||||||||||||
Segment Information | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Year ended | ||||||||||||||||||||
December 31, 2012 | Percent of | December 31, 2011 | Percent of | Percent | ||||||||||||||||
Revenue | Revenue | Change | Change | |||||||||||||||||
Operating revenue | ||||||||||||||||||||
Forward Air | $ | 501.7 | 85.9 | % | $ | 464.5 | 86.6 | % | $ | 37.2 | 8.0 | % | ||||||||
FASI | 85.0 | 14.5 | 73.2 | 13.6 | 11.8 | 16.1 | ||||||||||||||
Intercompany eliminations | (2.3 | ) | (0.4 | ) | (1.3 | ) | (0.2 | ) | (1.0 | ) | 76.9 | |||||||||
Total | 584.4 | 100.0 | 536.4 | 100.0 | 48.0 | 8.9 | ||||||||||||||
Purchased transportation | ||||||||||||||||||||
Forward Air | 231.4 | 46.1 | 206.0 | 44.4 | 25.4 | 12.3 | ||||||||||||||
FASI | 23.3 | 27.4 | 18.2 | 24.9 | 5.1 | 28.0 | ||||||||||||||
Intercompany eliminations | (2.0 | ) | 87.0 | (1.2 | ) | 92.3 | (0.8 | ) | 66.7 | |||||||||||
Total | 252.7 | 43.3 | 223.0 | 41.6 | 29.7 | 13.3 | ||||||||||||||
Salaries, wages and employee benefits | ||||||||||||||||||||
Forward Air | 103.1 | 20.6 | 101.3 | 21.8 | 1.8 | 1.8 | ||||||||||||||
FASI | 31.9 | 37.5 | 29.4 | 40.2 | 2.5 | 8.5 | ||||||||||||||
Total | 135.0 | 23.1 | 130.7 | 24.4 | 4.3 | 3.3 | ||||||||||||||
Operating leases | ||||||||||||||||||||
Forward Air | 20.4 | 4.1 | 19.7 | 4.2 | 0.7 | 3.6 | ||||||||||||||
FASI | 7.6 | 9.0 | 7.4 | 10.1 | 0.2 | 2.7 | ||||||||||||||
Total | 28.0 | 4.8 | 27.1 | 5.0 | 0.9 | 3.3 | ||||||||||||||
Depreciation and amortization | ||||||||||||||||||||
Forward Air | 16.4 | 3.3 | 16.8 | 3.6 | (0.4 | ) | (2.4 | ) | ||||||||||||
FASI | 4.7 | 5.5 | 4.2 | 5.7 | 0.5 | 11.9 | ||||||||||||||
Total | 21.1 | 3.6 | 21.0 | 3.9 | 0.1 | 0.5 | ||||||||||||||
Insurance and claims | ||||||||||||||||||||
Forward Air | 8.9 | 1.8 | 7.2 | 1.6 | 1.7 | 23.6 | ||||||||||||||
FASI | 2.4 | 2.8 | 1.6 | 2.2 | 0.8 | 50.0 | ||||||||||||||
Total | 11.3 | 1.9 | 8.8 | 1.6 | 2.5 | 28.4 | ||||||||||||||
Fuel expense | ||||||||||||||||||||
Forward Air | 4.2 | 0.8 | 4.4 | 0.9 | (0.2 | ) | (4.5 | ) | ||||||||||||
FASI | 5.8 | 6.8 | 5.6 | 7.6 | 0.2 | 3.6 | ||||||||||||||
Total | 10.0 | 1.7 | 10.0 | 1.9 | — | — | ||||||||||||||
Other operating expenses | ||||||||||||||||||||
Forward Air | 35.8 | 7.1 | 32.6 | 7.0 | 3.2 | 9.8 | ||||||||||||||
FASI | 7.3 | 8.6 | 6.2 | 8.5 | 1.1 | 17.7 | ||||||||||||||
Intercompany eliminations | (0.3 | ) | 13.0 | (0.1 | ) | 7.7 | (0.2 | ) | 200.0 | |||||||||||
Total | 42.8 | 7.3 | 38.7 | 7.2 | 4.1 | 10.6 | ||||||||||||||
Income from operations | ||||||||||||||||||||
Forward Air | 81.5 | 16.2 | 76.5 | 16.5 | 5.0 | 6.5 | ||||||||||||||
FASI | 2.0 | 2.4 | 0.6 | 0.8 | 1.4 | 233.3 | ||||||||||||||
Total | $ | 83.5 | 14.3 | % | $ | 77.1 | 14.4 | % | $ | 6.4 | 8.3 | % |
Forward Air Corporation | ||||||||||
Forward Air Inc. Operating Statistics | ||||||||||
Three months ended | ||||||||||
December 31, | December 31, | Percent | ||||||||
2012 | 2011 | Change | ||||||||
Operating ratio | 83.2 | % | 82.9 | % | 0.4 | % | ||||
Business days | 64.0 | 63.0 | 1.6 | |||||||
Business weeks | 12.8 | 12.6 | 1.6 | |||||||
Airport-to-airport: | ||||||||||
Tonnage | ||||||||||
Total pounds ¹ | 456,007 | 458,773 | (0.6 | ) | ||||||
Average weekly pounds ¹ | 35,626 | 36,411 | (2.2 | ) | ||||||
Linehaul shipments | ||||||||||
Total linehaul | 727,274 | 649,152 | 12.0 | |||||||
Average weekly | 56,818 | 51,520 | 10.3 | |||||||
Forward Air Complete shipments | 135,680 | 104,143 | 30.3 | |||||||
As a percentage of linehaul shipments | 18.7 | % | 16.0 | % | 16.9 | |||||
Average linehaul shipment size | 627 | 707 | (11.3 | ) | ||||||
Revenue per pound ² | ||||||||||
Linehaul yield | $ | 17.41 | $ | 16.83 | 2.8 | |||||
Fuel surcharge impact | 1.95 | 1.67 | 1.3 | |||||||
Forward Air Complete impact | 2.74 | 2.25 | 2.4 | |||||||
Total airport-to-airport yield | $ | 22.10 | $ | 20.75 | 6.5 | |||||
Logistics: | ||||||||||
Miles | ||||||||||
Owner operator ¹ | 8,501 | 8,472 | 0.3 | |||||||
Third party ¹ | 4,152 | 4,093 | 1.4 | |||||||
Total Miles | 12,653 | 12,565 | 0.7 | |||||||
Revenue per mile | $ | 1.65 | $ | 1.71 | (3.5 | ) | ||||
Cost per mile | $ | 1.22 | $ | 1.28 | (4.7 | )% | ||||
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 | ||||||||
2012 | 2011 | Change | ||||||||
Operating ratio | 83.8 | % | 83.5 | % | 0.4 | % | ||||
Business days | 255.0 | 255.0 | — | |||||||
Business weeks | 51.0 | 51.0 | — | |||||||
Airport-to-airport: | ||||||||||
Tonnage | ||||||||||
Total pounds ¹ | 1,778,397 | 1,735,409 | 2.5 | |||||||
Average weekly pounds ¹ | 34,871 | 34,028 | 2.5 | |||||||
Linehaul shipments | ||||||||||
Total linehaul | 2,791,597 | 2,419,350 | 15.4 | |||||||
Average weekly | 54,737 | 47,438 | 15.4 | |||||||
Forward Air Complete shipments | 645,207 | 374,116 | 72.5 | |||||||
As a percentage of linehaul shipments | 23.1 | % | 15.5 | % | 49.0 | |||||
Average linehaul shipment size | 637 | 717 | (11.2 | ) | ||||||
Revenue per pound ² | ||||||||||
Linehaul yield | $ | 17.13 | $ | 16.80 | 1.6 | |||||
Fuel surcharge impact | 1.90 | 1.80 | 0.5 | |||||||
Forward Air Complete impact | 2.97 | 2.27 | 3.3 | |||||||
Total airport-to-airport yield | $ | 22.00 | $ | 20.87 | 5.4 | |||||
Logistics: | ||||||||||
Miles | ||||||||||
Owner operator ¹ | 35,091 | 30,885 | 13.6 | |||||||
Third party ¹ | 16,162 | 13,798 | 17.1 | |||||||
Total Miles | 51,253 | 44,683 | 14.7 | |||||||
Revenue per mile | $ | 1.64 | $ | 1.67 | (1.8 | ) | ||||
Cost per mile | $ | 1.24 | $ | 1.26 | (1.6 | )% | ||||
¹ - In thousands | ||||||||||
² - In cents per pound; percentage change is expressed as a percent of total yield. |