Forward Air Corporation | |||||||
Consolidated Statements of Comprehensive Income | |||||||
(In thousands, except per share data) | |||||||
(Unaudited) | |||||||
Three months ended | |||||||
March 31, 2013 | March 31, 2012 | ||||||
Operating revenue: | |||||||
Airport-to-airport | $ | 90,376 | $ | 90,627 | |||
Logistics | 22,972 | 21,313 | |||||
Other | 6,142 | 6,202 | |||||
Pool distribution | 22,070 | 18,939 | |||||
Total operating revenue | 141,560 | 137,081 | |||||
Operating expenses: | |||||||
Purchased transportation | |||||||
Airport-to-airport | 36,559 | 36,758 | |||||
Logistics | 16,309 | 15,716 | |||||
Other | 1,735 | 1,598 | |||||
Pool distribution | 6,396 | 5,126 | |||||
Total purchased transportation | 60,999 | 59,198 | |||||
Salaries, wages and employee benefits | 33,952 | 33,174 | |||||
Operating leases | 7,044 | 7,106 | |||||
Depreciation and amortization | 5,186 | 5,121 | |||||
Insurance and claims | 2,660 | 2,798 | |||||
Fuel expense | 3,008 | 2,541 | |||||
Other operating expenses | 12,921 | 10,354 | |||||
Total operating expenses | 125,770 | 120,292 | |||||
Income from operations | 15,790 | 16,789 | |||||
Other income (expense): | |||||||
Interest expense | (128 | ) | (51 | ) | |||
Other, net | 32 | 17 | |||||
Total other expense | (96 | ) | (34 | ) | |||
Income before income taxes | 15,694 | 16,755 | |||||
Income taxes | 4,839 | 6,482 | |||||
Net income and comprehensive income | $ | 10,855 | $ | 10,273 | |||
Net income per share: | |||||||
Basic | $ | 0.37 | $ | 0.36 | |||
Diluted | $ | 0.36 | $ | 0.35 | |||
Weighted average shares outstanding: | |||||||
Basic | 29,511 | 28,692 | |||||
Diluted | 30,264 | 29,363 | |||||
Dividends per share: | $ | 0.10 | $ | 0.07 |
Forward Air Corporation | |||||||
Consolidated Balance Sheets | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
March 31, 2013 | December 31, 2012 (a) | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 71,630 | $ | 112,182 | |||
Accounts receivable, net | 78,092 | 75,262 | |||||
Other current assets | 14,796 | 10,952 | |||||
Total current assets | 164,518 | 198,396 | |||||
Property and equipment | 254,066 | 239,138 | |||||
Less accumulated depreciation and amortization | 107,439 | 105,581 | |||||
Net property and equipment | 146,627 | 133,557 | |||||
Goodwill and other acquired intangibles: | |||||||
Goodwill | 87,860 | 43,332 | |||||
Other acquired intangibles, net of accumulated amortization | 44,651 | 22,102 | |||||
Total net goodwill and other acquired intangibles | 132,511 | 65,434 | |||||
Other assets | 2,550 | 1,800 | |||||
Total assets | $ | 446,206 | $ | 399,187 | |||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 14,285 | $ | 11,168 | |||
Accrued expenses | 18,131 | 16,476 | |||||
Current portion of debt and capital lease obligations | 182 | 276 | |||||
Total current liabilities | 32,598 | 27,920 | |||||
Debt and capital lease obligations, less current portion | 37 | 58 | |||||
Other long-term liabilities | 9,138 | 7,098 | |||||
Deferred income taxes | 23,986 | 12,440 | |||||
Shareholders’ equity: | |||||||
Common stock | 300 | 292 | |||||
Additional paid-in capital | 86,393 | 64,644 | |||||
Retained earnings | 293,754 | 286,735 | |||||
Total shareholders’ equity | 380,447 | 351,671 | |||||
Total liabilities and shareholders’ equity | $ | 446,206 | $ | 399,187 | |||
(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 | |||||||
March 31, 2013 | March 31, 2012 | ||||||
Operating activities: | |||||||
Net income | $ | 10,855 | $ | 10,273 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | 5,186 | 5,121 | |||||
Share-based compensation | 1,557 | 1,606 | |||||
Loss on disposal of property and equipment | 85 | 196 | |||||
Provision for loss on receivables | 301 | 110 | |||||
Provision for revenue adjustments | 499 | 427 | |||||
Deferred income tax (benefit) | 850 | (804 | ) | ||||
Tax benefit for stock options exercised | (2,238 | ) | (204 | ) | |||
Changes in operating assets and liabilities | |||||||
Accounts receivable | 2,011 | (2,491 | ) | ||||
Prepaid expenses and other current assets | (730 | ) | (925 | ) | |||
Accounts payable and accrued expenses | 2,228 | 4,646 | |||||
Net cash provided by operating activities | 20,604 | 17,955 | |||||
Investing activities: | |||||||
Proceeds from disposal of property and equipment | 164 | 205 | |||||
Purchases of property and equipment | (12,182 | ) | (13,098 | ) | |||
Acquisition of business, net of cash acquired | (45,219 | ) | — | ||||
Other | (56 | ) | (306 | ) | |||
Net cash used in investing activities | (57,293 | ) | (13,199 | ) | |||
Financing activities: | |||||||
Payments of debt and capital lease obligations | (20,228 | ) | (136 | ) | |||
Proceeds from exercise of stock options | 17,960 | 8,192 | |||||
Payments of cash dividends | (2,967 | ) | (2,034 | ) | |||
Cash settlement of share-based awards for minimum tax withholdings | (866 | ) | (386 | ) | |||
Tax benefit for stock options exercised | 2,238 | 204 | |||||
Net cash (used in) provided by financing activities | (3,863 | ) | 5,840 | ||||
Net (decrease) increase in cash | (40,552 | ) | 10,596 | ||||
Cash at beginning of period | 112,182 | 58,801 | |||||
Cash at end of period | $ | 71,630 | $ | 69,397 |
Forward Air Corporation | ||||||||||||||||||||
Segment Information | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended | ||||||||||||||||||||
March 31, | Percent of | March 31, | Percent of | Percent | ||||||||||||||||
2013 | Revenue | 2012 | Revenue | Change | Change | |||||||||||||||
Operating revenue | ||||||||||||||||||||
Forward Air | $ | 116.1 | 82.0 | % | $ | 118.4 | 86.4 | % | $ | (2.3 | ) | (1.9 | )% | |||||||
FASI | 22.3 | 15.7 | 19.2 | 14.0 | 3.1 | 16.1 | ||||||||||||||
TQI | 3.9 | 2.8 | — | — | 3.9 | 100.0 | ||||||||||||||
Intercompany eliminations | (0.7 | ) | (0.5 | ) | (0.5 | ) | (0.4 | ) | (0.2 | ) | 40.0 | |||||||||
Total | 141.6 | 100.0 | 137.1 | 100.0 | 4.5 | 3.3 | ||||||||||||||
Purchased transportation | ||||||||||||||||||||
Forward Air | 52.6 | 45.3 | 54.3 | 45.9 | (1.7 | ) | (3.1 | ) | ||||||||||||
FASI | 6.8 | 30.5 | 5.3 | 27.6 | 1.5 | 28.3 | ||||||||||||||
TQI | 2.2 | 56.4 | — | — | 2.2 | 100.0 | ||||||||||||||
Intercompany eliminations | (0.6 | ) | 85.7 | (0.4 | ) | 80.0 | (0.2 | ) | 50.0 | |||||||||||
Total | 61.0 | 43.1 | 59.2 | 43.2 | 1.8 | 3.0 | ||||||||||||||
Salaries, wages and employee benefits | ||||||||||||||||||||
Forward Air | 25.1 | 21.6 | 25.7 | 21.7 | (0.6 | ) | (2.3 | ) | ||||||||||||
FASI | 8.2 | 36.8 | 7.5 | 39.1 | 0.7 | 9.3 | ||||||||||||||
TQI | 0.6 | 15.4 | — | — | 0.6 | 100.0 | ||||||||||||||
Total | 33.9 | 23.9 | 33.2 | 24.2 | 0.7 | 2.1 | ||||||||||||||
Operating leases | ||||||||||||||||||||
Forward Air | 5.1 | 4.4 | 5.1 | 4.3 | — | — | ||||||||||||||
FASI | 2.0 | 9.0 | 2.0 | 10.4 | — | — | ||||||||||||||
TQI | — | — | — | — | — | — | ||||||||||||||
Total | 7.1 | 5.0 | 7.1 | 5.2 | — | — | ||||||||||||||
Depreciation and amortization | ||||||||||||||||||||
Forward Air | 3.8 | 3.3 | 4.0 | 3.4 | (0.2 | ) | (5.0 | ) | ||||||||||||
FASI | 1.2 | 5.4 | 1.1 | 5.7 | 0.1 | 9.1 | ||||||||||||||
TQI | 0.2 | 5.1 | — | — | 0.2 | 100.0 | ||||||||||||||
Total | 5.2 | 3.7 | 5.1 | 3.7 | 0.1 | 2.0 | ||||||||||||||
Insurance and claims | ||||||||||||||||||||
Forward Air | 1.9 | 1.6 | 2.1 | 1.8 | (0.2 | ) | (9.5 | ) | ||||||||||||
FASI | 0.7 | 3.1 | 0.7 | 3.6 | — | — | ||||||||||||||
TQI | 0.1 | 2.6 | — | — | 0.1 | 100.0 | ||||||||||||||
Total | 2.7 | 1.9 | 2.8 | 2.0 | (0.1 | ) | (3.6 | ) | ||||||||||||
Fuel expense | ||||||||||||||||||||
Forward Air | 1.0 | 0.9 | 1.1 | 0.9 | (0.1 | ) | (9.1 | ) | ||||||||||||
FASI | 1.6 | 7.2 | 1.4 | 7.3 | 0.2 | 14.3 | ||||||||||||||
TQI | 0.4 | 10.3 | — | — | 0.4 | 100.0 | ||||||||||||||
Total | 3.0 | 2.1 | 2.5 | 1.8 | 0.5 | 20.0 | ||||||||||||||
Other operating expenses | ||||||||||||||||||||
Forward Air | 10.2 | 8.8 | 8.7 | 7.3 | 1.5 | 17.2 | ||||||||||||||
FASI | 2.6 | 11.6 | 1.8 | 9.4 | 0.8 | 44.4 | ||||||||||||||
TQI | 0.2 | 5.1 | — | — | 0.2 | 100.0 | ||||||||||||||
Intercompany eliminations | (0.1 | ) | 14.3 | (0.1 | ) | 20.0 | — | — | ||||||||||||
Total | 12.9 | 9.1 | 10.4 | 7.6 | 2.5 | 24.0 | ||||||||||||||
Income (loss) from operations | ||||||||||||||||||||
Forward Air | 16.4 | 14.1 | 17.4 | 14.7 | (1.0 | ) | (5.7 | ) | ||||||||||||
FASI | (0.8 | ) | (3.6 | ) | (0.6 | ) | (3.1 | ) | (0.2 | ) | 33.3 | |||||||||
TQI | 0.2 | 5.1 | — | — | 0.2 | 100.0 | ||||||||||||||
Total | $ | 15.8 | 11.2 | % | $ | 16.8 | 12.3 | % | $ | (1.0 | ) | (6.0 | )% |
Forward Air Corporation | ||||||||||
Forward Air Inc. Operating Statistics | ||||||||||
Three months ended | ||||||||||
March 31, | March 31, | Percent | ||||||||
2013 | 2012 | Change | ||||||||
Operating ratio | 85.9 | % | 85.3 | % | 0.7 | % | ||||
Business days | 63.0 | 64.0 | (1.6 | ) | ||||||
Business weeks | 12.6 | 12.8 | (1.6 | ) | ||||||
Airport-to-airport: | ||||||||||
Tonnage | ||||||||||
Total pounds ¹ | 405,914 | 422,139 | (3.8 | ) | ||||||
Average weekly pounds ¹ | 32,215 | 32,980 | (2.3 | ) | ||||||
Linehaul shipments | ||||||||||
Total linehaul | 635,665 | 637,438 | (0.3 | ) | ||||||
Average weekly | 50,450 | 49,800 | 1.3 | |||||||
Forward Air Complete shipments | 114,085 | 123,366 | (7.5 | ) | ||||||
As a percentage of linehaul shipments | 17.9 | % | 19.4 | % | (7.7 | ) | ||||
Average linehaul shipment size | 639 | 662 | (3.5 | ) | ||||||
Revenue per pound ² | ||||||||||
Linehaul yield | $ | 17.33 | $ | 16.89 | 2.0 | |||||
Fuel surcharge impact | 2.05 | 1.91 | 0.7 | |||||||
Forward Air Complete impact | 2.94 | 2.70 | 1.1 | |||||||
Total airport-to-airport yield | $ | 22.32 | $ | 21.50 | 3.8 | |||||
Logistics: | ||||||||||
Miles | ||||||||||
Owner operator ¹ | 8,337 | 8,920 | (6.5 | ) | ||||||
Third party ¹ | 3,520 | 3,687 | (4.5 | ) | ||||||
Total Miles | 11,857 | 12,607 | (5.9 | ) | ||||||
Revenue per mile | $ | 1.62 | $ | 1.69 | (4.1 | ) | ||||
Cost per mile | $ | 1.19 | $ | 1.25 | (4.8 | )% | ||||
¹ - In thousands | ||||||||||
² - In cents per pound; percentage change is expressed as a percent of total yield. |