NEWS RELEASE

FORWARD AIR CORPORATION REPORTS
FOURTH QUARTER AND FISCAL 2014 RESULTS AND
QUARTERLY CASH DIVIDEND

GREENEVILLE, Tenn.-(BUSINESS WIRE) - February 10, 2015-Forward Air Corporation (NASDAQ:FWRD) today reported results for the fourth quarter and year ended December 31, 2014.

Operating revenue for the quarter ended December 31, 2014 increased 18.2% to $214.1 million from $181.1 million for the same quarter in 2013. Income from operations was $25.6 million, compared with $23.2 million for the fourth quarter of 2013, an increase of 10.3%. Net income per diluted share for the fourth quarter of 2014 was $0.55 compared with $0.50 in the same quarter of 2013.

Operating revenue for the year ended December 31, 2014 increased 19.7% to $781.0 million from $652.5 million for the year ended December 31, 2013. Income from operations was $96.4 million, compared with $84.4 million in 2013. Net income per diluted share for the year ended December 31, 2014 was $1.96 compared with $1.77 in 2013.

On February 10, 2015, our Board of Directors declared a quarterly cash dividend of $0.12 per share of common stock. The dividend is payable to shareholders of record at the close of business on March 12, 2015, and is expected to be paid on March 27, 2015.

This quarterly dividend is pursuant to a cash dividend policy approved by the Board of Directors, which anticipates a total annual dividend of $0.48 per share of common stock, payable in quarterly increments of $0.12 per share of common stock. The actual declaration of future cash dividends, and the establishment of record and payment dates, is subject to final determination by the Board of Directors each quarter after its review of the Company's financial performance.

About Forward Air Corporation

Forward Air Corporation operates three business segments, Forward Air, Inc., Forward Air Solutions, Inc. and Total Quality, Inc.

Forward Air, Inc. is a high-service-level contractor to the air cargo industry providing time-definite ground transportation services through a network of 88 terminals located on or near major airports in the United States and Canada. It provides these services as a cost-effective alternative to air transportation of cargo that must be delivered at a specific time but is relatively less time-sensitive than traditional air freight or when air transportation is not economical.

Forward Air Solutions, Inc. is a provider of pool distribution services. Pool distribution involves the consolidation and shipment of several smaller less-than-truckload shipments to a common area or region. Once at the regional destination, the loads are deconsolidated, then grouped with other shipments with common delivery points, and delivered in a very precise, time-sensitive manner. Our pool distribution network consists of 29 terminals within the mid-Atlantic, Southeast, Midwest and Southwestern United States.

Total Quality, Inc. utilizes industry-leading temperature-controlled equipment, 24-hour monitoring and tracking technology and layered security features to provide our customers with the highest level of service. In addition to our core pharmaceutical services, we provide brokerage transportation services. Headquartered in central Michigan, we service the United States, Canada and Mexico.

1





Forward Air Corporation
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
 
 
 
 
 
Three months ended
 
Year ended
 
December 31,
2014
 
December 31,
2013
 
December 31,
2014
 
December 31,
2013
Operating revenue
$
214,062

 
$
181,085

 
$
780,959

 
$
652,481

 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 

 
 

Purchased transportation
92,317

 
79,228

 
334,576

 
285,690

Salaries, wages and employee benefits
50,641

 
41,949

 
182,105

 
151,097

Operating leases
8,975

 
8,387

 
33,994

 
29,310

Depreciation and amortization
8,254

 
6,202

 
31,133

 
23,579

Insurance and claims
4,758

 
3,455

 
15,736

 
12,619

Fuel expense
5,158

 
4,610

 
20,148

 
15,145

Other operating expenses
18,324

 
14,051

 
66,861

 
50,686

Total operating expenses
188,427

 
157,882

 
684,553

 
568,126

Income from operations
25,635

 
23,203

 
96,406

 
84,355

 
 
 
 
 
 
 
 
Other income (expense):
 
 
 
 
 

 
 

Interest expense
(255
)
 
(131
)
 
(610
)
 
(532
)
Other, net
145

 
27

 
289

 
99

Total other expense
(110
)
 
(104
)
 
(321
)
 
(433
)
Income before income taxes
25,525

 
23,099

 
96,085

 
83,922

Income taxes
8,479

 
7,514

 
34,916

 
29,455

Net income
$
17,046

 
$
15,585

 
$
61,169

 
$
54,467

 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 

 
 

Basic
$
0.56

 
$
0.51

 
$
1.99

 
$
1.81

Diluted
$
0.55

 
$
0.50

 
$
1.96

 
$
1.77

Weighted average shares outstanding:
 
 
 
 
 

 
 

Basic
30,248

 
30,490

 
30,599

 
30,135

Diluted
30,804

 
31,129

 
31,132

 
30,762

 
 
 
 
 
 
 
 
Dividends per share:
$
0.12

 
$
0.10

 
$
0.48

 
$
0.40





2


Forward Air Corporation
Components of Consolidated Revenue and Purchased Transportation
(In thousands)
(Unaudited)
 
 
 
 
 
 
 
 
 

Three months ended

December 31,
Percent of

December 31,
Percent of


Percent

2014
Revenue

2013
Revenue

Change
Change
Operating Revenue








Forward Air








      Airport-to-airport
$
112,251

68.5
 %

$
104,073

78.8
 %

$
8,178

7.9
 %
      Logistics services








Expedited full truckload - TLX
21,097

12.9


19,179

14.5


1,918

10.0

Intermodal/drayage
16,160

9.9


1,322

1.0


14,838

1,122.4

Total Logistics services
37,257

22.8


20,501

15.5


16,756

81.7

      Other Forward Air services
14,290

8.7


7,514

5.7


6,776

90.2

Forward Air - Total revenue
163,798

76.5


132,088

72.9


31,710

24.0

TQI - Pharmaceutical services
12,053

5.6


13,297

7.3


(1,244
)
(9.4
)
Forward Air Solutions - Pool distribution
40,341

18.9


37,031

20.5


3,310

8.9

Intersegment eliminations
(2,130
)
(1.0
)

(1,331
)
(0.7
)

(799
)
60.0

Consolidated operating revenue
$
214,062

100.0
 %

$
181,085

100.0
 %

$
32,977

18.2
 %
 
 
 
 
 
 
 
 
 

Three months ended

December 31,
Percent of

December 31,
Percent of


Percent

2014
Revenue

2013
Revenue

Change
Change
Purchased Transportation








Forward Air








      Airport-to-airport
$
50,007

44.5
 %

$
44,277

42.5
 %

$
5,730

12.9
 %
      Logistics services








Expedited full truckload - TLX
16,348

77.5


14,640

76.3


1,708

11.7

Intermodal/drayage
5,866

36.3


794

60.1


5,072

638.8

Total Logistics services
22,214

59.6


15,434

75.3


6,780

43.9

      Other Forward Air services
3,743

26.2


2,273

30.3


1,470

64.7

Forward Air - Total purchased transportation
75,964

46.4


61,984

46.9


13,980

22.6

TQI - Pharmaceutical services
6,024

50.0


7,383

55.5


(1,359
)
(18.4
)
Forward Air Solutions - Pool distribution
11,920

29.5


10,871

29.4


1,049

9.6

Intersegment eliminations
(1,591
)
74.7


(1,010
)
75.9


(581
)
57.5

Consolidated purchased transportation
$
92,317

43.1
 %

$
79,228

43.8
 %

$
13,089

16.5
 %


3


Forward Air Corporation
Components of Consolidated Revenue and Purchased Transportation
(In thousands)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Year ended
 
December 31,
Percent of
 
December 31,
Percent of
 
 
Percent
 
2014
Revenue
 
2013
Revenue
 
Change
Change
Operating Revenue
 
 
 
 
 
 
 
 
Forward Air
 
 
 
 
 
 
 
 
      Airport-to-airport
$
429,399

70.1
 %
 
$
393,236

78.5
 %
 
$
36,163

9.2
%
      Logistics services
 
 
 
 
 
 
 
 
Expedited full truckload - TLX
77,679

12.7

 
74,398

14.8

 
3,281

4.4

Intermodal/drayage
55,306

9.0

 
5,123

1.0

 
50,183

979.6

Total Logistics services
132,985

21.7

 
79,521

15.8

 
53,464

67.2

      Other Forward Air services
49,953

8.2

 
28,311

5.7

 
21,642

76.4

Forward Air - Total revenue
612,337

78.4

 
501,068

76.8

 
111,269

22.2

TQI - Pharmaceutical services
48,824

6.3

 
41,842

6.4

 
6,982

16.7

Forward Air Solutions - Pool distribution
125,213

16.0

 
113,412

17.4

 
11,801

10.4

Intersegment eliminations
(5,415
)
(0.7
)
 
(3,841
)
(0.6
)
 
(1,574
)
41.0

Consolidated operating revenue
$
780,959

100.0
 %
 
$
652,481

100.0
 %
 
$
128,478

19.7
%
 
 
 
 
 
 
 
 
 
 
Year ended
 
December 31,
Percent of
 
December 31,
Percent of
 
 
Percent
 
2014
Revenue
 
2013
Revenue
 
Change
Change
Purchased Transportation
 
 
 
 
 
 
 
 
Forward Air
 
 
 
 
 
 
 
 
      Airport-to-airport
$
183,252

42.7
 %
 
$
163,284

41.5
 %
 
$
19,968

12.2
%
      Logistics services
 
 
 
 
 
 
 
 
Expedited full truckload - TLX
59,766

76.9

 
56,218

75.6

 
3,548

6.3

Intermodal/drayage
21,726

39.3

 
3,122

60.9

 
18,604

595.9

Total Logistics services
81,492

61.3

 
59,340

74.6

 
22,152

37.3

      Other Forward Air services
12,517

25.1

 
8,279

29.2

 
4,238

51.2

Forward Air - Total purchased transportation
277,261

45.3

 
230,903

46.1

 
46,358

20.1

TQI - Pharmaceutical services
24,722

50.6

 
23,218

55.5

 
1,504

6.5

Forward Air Solutions - Pool distribution
36,601

29.2

 
34,492

30.4

 
2,109

6.1

Intersegment eliminations
(4,008
)
74.0

 
(2,923
)
76.1

 
(1,085
)
37.1

Consolidated purchased transportation
$
334,576

42.8
 %
 
$
285,690

43.8
 %
 
$
48,886

17.1
%


4


Forward Air Corporation
Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
December 31,
2014
 
December 31,
 2013 (a)
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
41,429

 
$
127,367

Accounts receivable, net
95,326

 
76,500

Other current assets
13,200

 
16,493

Total current assets
149,955

 
220,360

 
 
 
 
Property and equipment
305,188

 
271,050

Less accumulated depreciation and amortization
132,699

 
116,287

Net property and equipment
172,489

 
154,763

Goodwill and other acquired intangibles:
 

 
 

Goodwill
144,412

 
88,496

Other acquired intangibles, net of accumulated amortization
72,705

 
40,110

Total net goodwill and other acquired intangibles
217,117

 
128,606

Other assets
2,244

 
2,540

Total assets
$
541,805

 
$
506,269

 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 

 
 

Current liabilities:
 

 
 

Accounts payable
$
20,572

 
$
16,267

Accrued expenses
22,583

 
18,275

Current portion of debt and capital lease obligations
276

 
69

Total current liabilities
43,431

 
34,611

 
 
 
 
Debt and capital lease obligations, less current portion
1,275

 
3

Other long-term liabilities
8,356

 
8,940

Deferred income taxes
25,180

 
26,850

Commitments and contingencies
 

 
 

Shareholders’ equity:
 

 
 

Common stock
303

 
305

Additional paid-in capital
130,107

 
107,726

Retained earnings
333,153

 
327,834

Total shareholders’ equity
463,563

 
435,865

Total liabilities and shareholders’ equity
$
541,805

 
$
506,269

 
 
 
 
(a) Taken from audited financial statements, which are not presented in their entirety.






5


Forward Air Corporation
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
 
 
 
 
Three months ended
 
December 31,
2014
 
December 31,
2013
Operating activities:
 
 
 
Net income
$
17,046

 
$
15,585

Adjustments to reconcile net income to net cash provided by operating activities
 
 
 
Depreciation and amortization
8,254

 
6,202

Gain on change in fair value of earn-out liability
—

 
(615
)
Share-based compensation
1,676

 
1,559

Loss on disposal of property and equipment
58

 
14

Provision for (recovery) loss on receivables
(202
)
 
189

Provision for revenue adjustments
569

 
826

Deferred income taxes
(4,750
)
 
198

Tax benefit for stock options exercised
(1,555
)
 
(500
)
Changes in operating assets and liabilities
 
 
 
Accounts receivable
4,164

 
5,709

Prepaid expenses and other current assets
1,117

 
1,360

Accounts payable and accrued expenses
190

 
(175
)
Net cash provided by operating activities
26,567

 
30,352

 
 
 
 
Investing activities:
 
 
 
Proceeds from disposal of property and equipment
365

 
308

Purchases of property and equipment
(2,386
)
 
(2,173
)
Acquisition of business
(5,824
)
 
—

Other
(51
)
 
(18
)
Net cash used in investing activities
(7,896
)
 
(1,883
)
 
 
 
 
Financing activities:
 
 
 
Payments of debt and capital lease obligations
(74
)
 
(24
)
Proceeds from exercise of stock options
152

 
3,136

Payments of cash dividends
(3,654
)
 
(3,070
)
Repurchase of common stock (repurchase program)
—

 
(354
)
Common stock issued under employee stock purchase plan
206

 
159

Tax benefit for stock options exercised
1,555

 
500

Net cash (used in) provided by financing activities
(1,815
)
 
347

Net increase in cash
16,856

 
28,816

Cash at beginning of period
24,573

 
98,551

Cash at end of period
$
41,429

 
$
127,367





6


Forward Air Corporation
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
Year ended
 
December 31,
2014
 
December 31,
2013
Operating activities:
 
 
 
Net income
$
61,169

 
$
54,467

Adjustments to reconcile net income to net cash provided by operating activities
 

 
 

Depreciation and amortization
31,133

 
23,579

Gain on change in fair value of earn-out liability
—

 
(615
)
Share-based compensation
6,681

 
6,178

Gain on disposal of property and equipment
(383
)
 
(454
)
Provision for loss on receivables
241

 
423

Provision for revenue adjustments
2,465

 
2,531

Deferred income taxes
(3,021
)
 
4,856

Tax benefit for stock options exercised
(2,109
)
 
(3,707
)
Changes in operating assets and liabilities, net of acquisition of business
 

 
 

Accounts receivable
(12,193
)
 
1,447

Prepaid expenses and other current assets
(280
)
 
(215
)
Accounts payable and accrued expenses
7,957

 
2,349

Net cash provided by operating activities
91,660

 
90,839

 
 
 
 
Investing activities:
 

 
 

Proceeds from disposal of property and equipment
1,947

 
1,973

Purchases of property and equipment
(39,487
)
 
(35,439
)
Acquisition of business, net of cash acquired
(90,172
)

(45,328
)
Other
2

 
(129
)
Net cash used in investing activities
(127,710
)
 
(78,923
)
 
 
 
 
Financing activities:
 

 
 

Payments of debt and capital lease obligations
(9,736
)
 
(20,375
)
Proceeds from exercise of stock options
13,235

 
33,002

Payments of cash dividends
(14,795
)
 
(12,141
)
Repurchase of common stock (repurchase program)
(39,972
)
 
(354
)
Common stock issued under employee stock purchase plan
354

 
296

Cash settlement of share-based awards for minimum tax withholdings
(1,083
)
 
(866
)
Tax benefit for stock options exercised
2,109

 
3,707

Net cash (used in) provided by financing activities
(49,888
)
 
3,269

Net (decrease) increase in cash
(85,938
)
 
15,185

Cash at beginning of year
127,367

 
112,182

Cash at end of year
$
41,429

 
$
127,367





7


Forward Air Corporation
Segment Information
(In millions)
(Unaudited)
 
 
 
Three months ended
 
December 31,
2014
 
Percent of
 
December 31,
2013
 
Percent of
 
 
 
Percent
 
 
Revenue
 
 
Revenue
 
Change
 
Change
Operating revenue
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
$
163.8

 
76.5
 %
 
$
132.1

 
72.9
 %
 
$
31.7

 
24.0
 %
      FASI
40.3

 
18.8

 
37.0

 
20.4

 
3.3

 
8.9

      TQI
12.1

 
5.7

 
13.3

 
7.4

 
(1.2
)
 
(9.0
)
      Intercompany eliminations
(2.1
)
 
(1.0
)
 
(1.3
)
 
(0.7
)
 
(0.8
)
 
61.5

            Total
214.1

 
100.0

 
181.1

 
100.0

 
33.0

 
18.2

 
 
 
 
 
 
 
 
 
 
 
 
Purchased transportation
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
76.0

 
46.4

 
62.0

 
46.9

 
14.0

 
22.6

      FASI
11.9

 
29.5

 
10.9

 
29.5

 
1.0

 
9.2

      TQI
6.0

 
49.6

 
7.3

 
54.9

 
(1.3
)
 
(17.8
)
      Intercompany eliminations
(1.6
)
 
76.2

 
(1.0
)
 
76.9

 
(0.6
)
 
60.0

            Total
92.3

 
43.1

 
79.2

 
43.7

 
13.1

 
16.5

 
 
 
 
 
 
 
 
 
 
 
 
Salaries, wages and employee benefits
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
35.5

 
21.7

 
27.4

 
20.7

 
8.1

 
29.6

      FASI
13.0

 
32.2

 
12.6

 
34.1

 
0.4

 
3.2

      TQI
2.1

 
17.3

 
1.9

 
14.3

 
0.2

 
10.5

            Total
50.6

 
23.6

 
41.9

 
23.2

 
8.7

 
20.8

 
 
 
 
 
 
 
 
 
 
 
 
Operating leases
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
6.5

 
4.0

 
5.4

 
4.1

 
1.1

 
20.4

      FASI
2.5

 
6.2

 
3.0

 
8.1

 
(0.5
)
 
(16.7
)
      TQI
—

 
—

 
—

 
—

 
—

 
—

            Total
9.0

 
4.2

 
8.4

 
4.6

 
0.6

 
7.1

 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
5.8

 
3.5

 
4.1

 
3.1

 
1.7

 
41.5

      FASI
1.6

 
4.0

 
1.3

 
3.5

 
0.3

 
23.1

      TQI
0.9

 
7.4

 
0.8

 
6.0

 
0.1

 
12.5

            Total
8.3

 
3.9

 
6.2

 
3.4

 
2.1

 
33.9

 
 
 
 
 
 
 
 
 
 
 
 
Insurance and claims
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
3.1

 
1.9

 
2.3

 
1.7

 
0.8

 
34.8

      FASI
1.4

 
3.5

 
1.0

 
2.7

 
0.4

 
40.0

      TQI
0.3

 
2.5

 
0.2

 
1.5

 
0.1

 
50.0

            Total
4.8

 
2.2

 
3.5

 
1.9

 
1.3

 
37.1

 
 
 
 
 
 
 
 
 
 
 
 
Fuel expense
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
2.1

 
1.3

 
1.0

 
0.8

 
1.1

 
110.0

      FASI
2.0

 
5.0

 
2.2

 
5.9

 
(0.2
)
 
(9.1
)
      TQI
1.1

 
9.1

 
1.4

 
10.5

 
(0.3
)
 
(21.4
)
            Total
5.2

 
2.4

 
4.6

 
2.6

 
0.6

 
13.0

 
 
 
 
 
 
 
 
 
 
 
 
Other operating expenses
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
13.5

 
8.2

 
10.1

 
7.7

 
3.4

 
33.7

      FASI
4.7

 
11.7

 
4.3

 
11.6

 
0.4

 
9.3

      TQI
0.6

 
5.0

 
—

 
—

 
0.6

 
100.0

      Intercompany eliminations
(0.5
)
 
23.8

 
(0.3
)
 
23.1

 
(0.2
)
 
66.7

            Total
18.3

 
8.6

 
14.1

 
7.8

 
4.2

 
29.8

 
 
 
 
 
 
 
 
 
 
 
 
Income from operations
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
21.3

 
13.0

 
19.8

 
15.0

 
1.5

 
7.6

      FASI
3.2

 
7.9

 
1.7

 
4.6

 
1.5

 
88.2

      TQI
1.1

 
9.1

 
1.7

 
12.8

 
(0.6
)
 
(35.3
)
            Total
$
25.6

 
12.0
 %
 
$
23.2

 
12.8
 %
 
$
2.4

 
10.3
 %



8


Forward Air Corporation
Segment Information
(In millions)
(Unaudited)
 
 
 
Year ended
 
December 31, 2014
 
Percent of
 
December 31, 2013
 
Percent of
 
 
 
Percent
 
 
Revenue
 
 
Revenue
 
Change
 
Change
Operating revenue
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
$
612.4

 
78.4
 %
 
$
501.1

 
76.8
 %
 
$
111.3

 
22.2
 %
      FASI
125.2

 
16.0

 
113.4

 
17.4

 
11.8

 
10.4

      TQI
48.8

 
6.3

 
41.8

 
6.4

 
7.0

 
16.7

      Intercompany eliminations
(5.4
)
 
(0.7
)
 
(3.8
)
 
(0.6
)
 
(1.6
)
 
42.1

            Total
781.0

 
100.0

 
652.5

 
100.0

 
128.5

 
19.7

 
 
 
 
 
 
 
 
 
 
 
 
Purchased transportation
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
277.3

 
45.3

 
230.9

 
46.1

 
46.4

 
20.1

      FASI
36.6

 
29.3

 
34.5

 
30.4

 
2.1

 
6.1

      TQI
24.7

 
50.6

 
23.2

 
55.5

 
1.5

 
6.5

      Intercompany eliminations
(4.0
)
 
74.1

 
(2.9
)
 
76.3

 
(1.1
)
 
37.9

            Total
334.6

 
42.8

 
285.7

 
43.8

 
48.9

 
17.1

 
 
 
 
 
 
 
 
 
 
 
 
Salaries, wages and employee benefits
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
131.7

 
21.5

 
105.4

 
21.0

 
26.3

 
25.0

      FASI
42.0

 
33.5

 
39.3

 
34.7

 
2.7

 
6.9

      TQI
8.4

 
17.2

 
6.4

 
15.3

 
2.0

 
31.3

            Total
182.1

 
23.3

 
151.1

 
23.2

 
31.0

 
20.5

 
 
 
 
 
 
 
 
 
 
 
 
Operating leases
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
24.9

 
4.1

 
20.2

 
4.0

 
4.7

 
23.3

      FASI
9.0

 
7.2

 
9.0

 
7.9

 
—

 
—

      TQI
0.1

 
0.2

 
0.1

 
0.2

 
—

 
—

            Total
34.0

 
4.4

 
29.3

 
4.5

 
4.7

 
16.0

 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
21.7

 
3.5

 
16.2

 
3.2

 
5.5

 
34.0

      FASI
5.8

 
4.6

 
5.0

 
4.4

 
0.8

 
16.0

      TQI
3.6

 
7.4

 
2.4

 
5.8

 
1.2

 
50.0

            Total
31.1

 
4.0

 
23.6

 
3.6

 
7.5

 
31.8

 
 
 
 
 
 
 
 
 
 
 
 
Insurance and claims
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
11.8

 
1.9

 
8.7

 
1.8

 
3.1

 
35.6

      FASI
3.1

 
2.5

 
3.3

 
2.9

 
(0.2
)
 
(6.1
)
      TQI
0.8

 
1.7

 
0.5

 
1.2

 
0.3

 
60.0

            Total
15.7

 
2.0

 
12.5

 
1.9

 
3.2

 
25.6

 
 
 
 
 
 
 
 
 
 
 
 
Fuel expense
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
8.4

 
1.4

 
4.0

 
0.8

 
4.4

 
110.0

      FASI
7.3

 
5.8

 
7.0

 
6.2

 
0.3

 
4.3

      TQI
4.5

 
9.2

 
4.2

 
10.1

 
0.3

 
7.1

            Total
20.2

 
2.6

 
15.2

 
2.3

 
5.0

 
32.9

 
 
 
 
 
 
 
 
 
 
 
 
Other operating expenses
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
50.5

 
8.2

 
37.0

 
7.4

 
13.5

 
36.5

      FASI
15.4

 
12.3

 
13.2

 
11.6

 
2.2

 
16.7

      TQI
2.4

 
4.9

 
1.4

 
3.3

 
1.0

 
71.4

      Intercompany eliminations
(1.4
)
 
25.9

 
(0.9
)
 
23.7

 
(0.5
)
 
55.6

            Total
66.9

 
8.6

 
50.7

 
7.8

 
16.2

 
32.0

 
 
 
 
 
 
 
 
 
 
 
 
Income from operations
 
 
 
 
 
 
 
 
 
 
 
      Forward Air
86.1

 
14.1

 
78.7

 
15.7

 
7.4

 
9.4

      FASI
6.0

 
4.8

 
2.1

 
1.9

 
3.9

 
185.7

      TQI
4.3

 
8.8

 
3.6

 
8.6

 
0.7

 
19.4

            Total
$
96.4

 
12.3
 %
 
$
84.4

 
12.9
 %
 
$
12.0

 
14.2
 %



9


Forward Air Corporation
Forward Air Inc. Operating Statistics
 
 
 
 
 
 
 
Three months ended
 
December 31,
 
December 31,
 
Percent
 
2014
 
2013
 
Change
 
 
 
 
 
 
Operating ratio
87.0
%
 
85.0
%
 
2.4
 %
 
 
 
 
 
 
Business days
63.0

 
64.0

 
(1.6
)
Business weeks
12.6

 
12.8

 
(1.6
)
 
 
 
 
 
 
 
 
 
 
 
 
Airport-to-airport:
 
 
 
 
 
Tonnage
 
 
 
 
 
    Total pounds ¹
502,531

 
482,861

 
4.1

    Average weekly pounds ¹
39,883

 
37,724

 
5.7

 
 
 
 
 
 
Linehaul shipments
 
 
 
 
 
    Total linehaul
797,612

 
716,672

 
11.3

    Average weekly
63,303

 
55,990

 
13.1

 
 
 
 
 
 
Forward Air Complete shipments
135,252

 
122,735

 
10.2

As a percentage of linehaul shipments
17.0
%
 
17.1
%
 
(0.6
)
 
 
 
 
 
 
Average linehaul shipment size
630

 
674

 
(6.5
)
 
 
 
 
 
 
Revenue per pound ²
 
 
 
 
 
    Linehaul yield
$
17.75

 
$
17.00

 
3.5

    Fuel surcharge impact
1.74

 
1.75

 
—

    Forward Air Complete impact
2.85

 
2.80

 
0.2

Total airport-to-airport yield
$
22.34

 
$
21.55

 
3.7

 
 
 
 
 
 
 
 
 
 
 
 
Expedited full truckload - TLX:
 
 
 
 
 
Miles
 
 
 
 
 
    Owner operator ¹
5,919

 
8,001

 
(26.0
)
    Third party ¹
5,471

 
4,253

 
28.6

Total Miles
11,390

 
12,254

 
(7.1
)
 
 
 
 
 
 
Revenue per mile
$
1.85

 
$
1.57

 
17.8

 
 
 
 
 
 
Cost per mile
$
1.44

 
$
1.19

 
21.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
¹ - In thousands
 
 
 
 
 
² - In dollars per hundred pound; percentage change is expressed as a percent of total yield.




10


Forward Air Corporation
Forward Air Inc. Operating Statistics
 
 
 
 
 
 
 
Year ended
 
December 31,
 
December 31,
 
Percent
 
2014
 
2013
 
Change
 
 
 
 
 
 
Operating ratio
85.9
%
 
84.3
%
 
1.9
 %
 
 
 
 
 
 
Business days
254.0

 
255.0

 
(0.4
)
Business weeks
50.8

 
51.0

 
(0.4
)
 
 
 
 
 
 
 
 
 
 
 
 
Airport-to-airport:
 
 
 
 
 
Tonnage
 
 
 
 
 
    Total pounds ¹
1,902,218

 
1,803,243

 
5.5

    Average weekly pounds ¹
37,445

 
35,358

 
5.9

 
 
 
 
 
 
Linehaul shipments
 
 
 
 
 
    Total linehaul
2,925,257

 
2,755,271

 
6.2

    Average weekly
57,584

 
54,025

 
6.6

 
 
 
 
 
 
Forward Air Complete shipments
528,422

 
476,005

 
11.0

As a percentage of linehaul shipments
18.1
%
 
17.3
%
 
4.6

 
 
 
 
 
 
Average linehaul shipment size
650

 
654

 
(0.6
)
 
 
 
 
 
 
Revenue per pound ²
 
 
 
 
 
    Linehaul yield
$
17.61

 
$
17.06

 
2.5

    Fuel surcharge impact
1.93

 
1.87

 
0.3

    Forward Air Complete impact
3.03

 
2.88

 
0.7

Total airport-to-airport yield
$
22.57

 
$
21.81

 
3.5

 
 
 
 
 
 
 
 
 
 
 
 
Logistics:
 
 
 
 
 
Miles
 
 
 
 
 
    Owner operator ¹
26,208

 
34,401

 
(23.8
)
    Third party ¹
19,018

 
14,916

 
27.5

Total Miles
45,226

 
49,317

 
(8.3
)
 
 
 
 
 
 
Revenue per mile
$
1.72

 
$
1.51

 
13.9

 
 
 
 
 
 
Cost per mile
$
1.32

 
$
1.14

 
15.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
¹ - In thousands
 
 
 
 
 
² - In cents per pound; percentage change is expressed as a percent of total yield.




11


Important Information

This press release contains “forward-looking statements,” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements are statements other than historical information or statements of current condition and relate to future events or our future financial performance.  Some forward-looking statements may be identified by use of such terms as “believes,” “anticipates,” “intends,” “plans,” “estimates,” “projects” or “expects.”  Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  The following is a list of factors, among others, that could cause actual results to differ materially from those contemplated by the forward-looking statements: economic factors such as recessions, inflation, higher interest rates and downturns in customer business cycles, our inability to maintain our historical growth rate because of a decreased volume of freight moving through our network or decreased average revenue per pound of freight moving through our network, increasing competition and pricing pressure, surplus inventories, loss of a major customer, the creditworthiness of our customers and their ability to pay for services rendered, our ability to secure terminal facilities in desirable locations at reasonable rates, the inability of our information systems to handle an increased volume of freight moving through our network, changes in fuel prices, claims for property damage, personal injuries or workers' compensation, employment matters including rising health care costs, enforcement of and changes in governmental regulations, environmental and tax matters, the handling of hazardous materials, the availability and compensation of qualified independent owner-operators and freight handlers needed to serve our transportation needs and our inability to successfully integrate acquisitions.  As a result of the foregoing, no assurance can be given as to future financial condition, cash flows or results of operations. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

-END-

CONTACT:
Forward Air Corporation
Rodney L. Bell, 423-636-7000
rbell@forwardair.com



12