Forward Air Corporation | |||||||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||||||
Operating revenue | $ | 247,093 | $ | 201,477 | $ | 702,705 | $ | 566,897 | |||||||
Operating expenses: | |||||||||||||||
Purchased transportation | 104,434 | 85,874 | 301,253 | 242,259 | |||||||||||
Salaries, wages and employee benefits | 59,025 | 45,651 | 174,815 | 131,464 | |||||||||||
Operating leases | 17,072 | 8,503 | 51,105 | 25,019 | |||||||||||
Depreciation and amortization | 9,399 | 8,115 | 27,601 | 22,879 | |||||||||||
Insurance and claims | 5,161 | 3,747 | 16,531 | 10,978 | |||||||||||
Fuel expense | 3,826 | 5,012 | 12,034 | 14,990 | |||||||||||
Other operating expenses | 23,575 | 17,669 | 66,608 | 48,537 | |||||||||||
Total operating expenses | 222,492 | 174,571 | 649,947 | 496,126 | |||||||||||
Income from operations | 24,601 | 26,906 | 52,758 | 70,771 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (554 | ) | (172 | ) | (1,489 | ) | (355 | ) | |||||||
Other, net | 10 | (55 | ) | (127 | ) | 144 | |||||||||
Total other income (expense) | (544 | ) | (227 | ) | (1,616 | ) | (211 | ) | |||||||
Income before income taxes | 24,057 | 26,679 | 51,142 | 70,560 | |||||||||||
Income taxes | 8,370 | 9,935 | 18,795 | 26,437 | |||||||||||
Net income and comprehensive income | $ | 15,687 | $ | 16,744 | $ | 32,347 | $ | 44,123 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.51 | $ | 0.55 | $ | 1.04 | $ | 1.44 | |||||||
Diluted | $ | 0.50 | $ | 0.54 | $ | 1.03 | $ | 1.41 | |||||||
Dividends per share: | $ | 0.12 | $ | 0.12 | $ | 0.36 | $ | 0.36 |
Forward Air Corporation | |||||||||||||||||
Components of Consolidated Revenue and Purchased Transportation | |||||||||||||||||
(In millions) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three months ended | |||||||||||||||||
September 30, | Percent of | September 30, | Percent of | Percent | |||||||||||||
2015 | Revenue | 2014 | Revenue | Change | Change | ||||||||||||
Operating Revenue | |||||||||||||||||
Forward Air | |||||||||||||||||
Airport-to-airport | $ | 133.7 | 64.8 | % | $ | 111.4 | 69.6 | % | $ | 22.3 | 20.0 | % | |||||
Logistics services | |||||||||||||||||
Expedited full truckload - TLX | 28.3 | 13.7 | 20.0 | 12.5 | 8.3 | 41.5 | |||||||||||
Intermodal/drayage | 22.9 | 11.1 | 15.8 | 9.9 | 7.1 | 44.9 | |||||||||||
Total Logistics services | 51.2 | 24.8 | 35.8 | 22.4 | 15.4 | 43.0 | |||||||||||
Other Forward Air services | 21.4 | 10.4 | 12.9 | 8.0 | 8.5 | 65.9 | |||||||||||
Forward Air - Total revenue | 206.3 | 83.5 | 160.1 | 79.4 | 46.2 | 28.9 | |||||||||||
TQI - Pharmaceutical services | 10.2 | 4.1 | 12.0 | 6.0 | (1.8 | ) | (15.0 | ) | |||||||||
Forward Air Solutions - Pool distribution | 32.1 | 13.0 | 30.6 | 15.2 | 1.5 | 4.9 | |||||||||||
Intersegment eliminations | (1.5 | ) | (0.6 | ) | (1.2 | ) | (0.6 | ) | (0.3 | ) | 25.0 | ||||||
Consolidated operating revenue | $ | 247.1 | 100.0 | % | $ | 201.5 | 100.0 | % | $ | 45.6 | 22.6 | % | |||||
Three months ended | |||||||||||||||||
September 30, | Percent of | September 30, | Percent of | Percent | |||||||||||||
2015 | Revenue | 2014 | Revenue | Change | Change | ||||||||||||
Purchased Transportation | |||||||||||||||||
Forward Air | |||||||||||||||||
Airport-to-airport | $ | 56.9 | 42.6 | % | $ | 47.7 | 42.8 | % | $ | 9.2 | 19.3 | % | |||||
Logistics services | |||||||||||||||||
Expedited full truckload - TLX | 20.7 | 73.1 | 15.0 | 75.0 | 5.7 | 38.0 | |||||||||||
Intermodal/drayage | 8.3 | 36.2 | 6.0 | 38.0 | 2.3 | 38.3 | |||||||||||
Total Logistics services | 29.0 | 56.6 | 21.0 | 58.7 | 8.0 | 38.1 | |||||||||||
Other Forward Air services | 6.1 | 28.5 | 3.2 | 24.8 | 2.9 | 90.6 | |||||||||||
Forward Air - Total purchased transportation | 92.0 | 44.6 | 71.9 | 44.9 | 20.1 | 28.0 | |||||||||||
TQI - Pharmaceutical services | 4.6 | 45.1 | 6.0 | 50.0 | (1.4 | ) | (23.3 | ) | |||||||||
Forward Air Solutions - Pool distribution | 8.8 | 27.4 | 8.8 | 28.8 | — | — | |||||||||||
Intersegment eliminations | (1.0 | ) | 66.7 | (0.8 | ) | 66.7 | (0.2 | ) | 25.0 | ||||||||
Consolidated purchased transportation | $ | 104.4 | 42.2 | % | $ | 85.9 | 42.6 | % | $ | 18.5 | 21.5 | % |
Forward Air Corporation | |||||||||||||||||
Components of Consolidated Revenue and Purchased Transportation | |||||||||||||||||
(In millions) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Nine months ended | |||||||||||||||||
September 30, | Percent of | September 30, | Percent of | Percent | |||||||||||||
2015 | Revenue | 2014 | Revenue | Change | Change | ||||||||||||
Operating Revenue | |||||||||||||||||
Forward Air | |||||||||||||||||
Airport-to-airport | $ | 387.9 | 66.1 | % | $ | 317.1 | 70.7 | % | $ | 70.8 | 22.3 | % | |||||
Logistics services | |||||||||||||||||
Expedited full truckload - TLX | 79.1 | 13.5 | 56.6 | 12.6 | 22.5 | 39.8 | |||||||||||
Intermodal/drayage | 62.6 | 10.7 | 39.1 | 8.7 | 23.5 | 60.1 | |||||||||||
Total Logistics services | 141.7 | 24.2 | 95.7 | 21.3 | 46.0 | 48.1 | |||||||||||
Other Forward Air services | 56.8 | 9.7 | 35.7 | 8.0 | 21.1 | 59.1 | |||||||||||
Forward Air - Total revenue | 586.4 | 83.5 | 448.5 | 79.1 | 137.9 | 30.7 | |||||||||||
TQI - Pharmaceutical services | 33.3 | 4.7 | 36.8 | 6.5 | (3.5 | ) | (9.5 | ) | |||||||||
Forward Air Solutions - Pool distribution | 87.0 | 12.4 | 84.9 | 15.0 | 2.1 | 2.5 | |||||||||||
Intersegment eliminations | (4.0 | ) | (0.6 | ) | (3.3 | ) | (0.6 | ) | (0.7 | ) | 21.2 | ||||||
Consolidated operating revenue | $ | 702.7 | 100.0 | % | $ | 566.9 | 100.0 | % | $ | 135.8 | 24.0 | % | |||||
Nine months ended | |||||||||||||||||
September 30, | Percent of | September 30, | Percent of | Percent | |||||||||||||
2015 | Revenue | 2014 | Revenue | Change | Change | ||||||||||||
Purchased Transportation | |||||||||||||||||
Forward Air | |||||||||||||||||
Airport-to-airport | $ | 168.1 | 43.3 | % | $ | 133.2 | 42.0 | % | $ | 34.9 | 26.2 | % | |||||
Logistics services | |||||||||||||||||
Expedited full truckload - TLX | 57.2 | 72.3 | 43.4 | 76.7 | 13.8 | 31.8 | |||||||||||
Intermodal/drayage | 23.0 | 36.7 | 15.9 | 40.7 | 7.1 | 44.7 | |||||||||||
Total Logistics services | 80.2 | 56.6 | 59.3 | 62.0 | 20.9 | 35.2 | |||||||||||
Other Forward Air services | 16.3 | 28.7 | 8.8 | 24.6 | 7.5 | 85.2 | |||||||||||
Forward Air - Total purchased transportation | 264.6 | 45.1 | 201.3 | 44.9 | 63.3 | 31.4 | |||||||||||
TQI - Pharmaceutical services | 15.7 | 47.1 | 18.7 | 50.8 | (3.0 | ) | (16.0 | ) | |||||||||
Forward Air Solutions - Pool distribution | 23.8 | 27.4 | 24.6 | 29.0 | (0.8 | ) | (3.3 | ) | |||||||||
Intersegment eliminations | (2.8 | ) | 70.0 | (2.4 | ) | 72.7 | (0.4 | ) | 16.7 | ||||||||
Consolidated purchased transportation | $ | 301.3 | 42.9 | % | $ | 242.2 | 42.7 | % | $ | 59.1 | 24.4 | % |
Forward Air Corporation | |||||||
Consolidated Balance Sheets | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
September 30, 2015 | December 31, 2014 (a) | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 47,444 | $ | 41,429 | |||
Accounts receivable, net | 114,674 | 95,326 | |||||
Other current assets | 23,579 | 13,200 | |||||
Total current assets | 185,697 | 149,955 | |||||
Property and equipment | 322,681 | 305,188 | |||||
Less accumulated depreciation and amortization | 150,180 | 132,699 | |||||
Net property and equipment | 172,501 | 172,489 | |||||
Goodwill and other acquired intangibles: | |||||||
Goodwill | 206,899 | 144,412 | |||||
Other acquired intangibles, net of accumulated amortization | 130,531 | 72,705 | |||||
Total net goodwill and other acquired intangibles | 337,430 | 217,117 | |||||
Other assets | 3,037 | 2,244 | |||||
Total assets | $ | 698,665 | $ | 541,805 | |||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 27,435 | $ | 20,572 | |||
Accrued expenses | 29,691 | 22,583 | |||||
Current portion of debt and capital lease obligations | 55,898 | 276 | |||||
Total current liabilities | 113,024 | 43,431 | |||||
Debt and capital lease obligations, less current portion | 42,830 | 1,275 | |||||
Other long-term liabilities | 12,198 | 8,356 | |||||
Deferred income taxes | 38,257 | 25,180 | |||||
Shareholders’ equity: | |||||||
Common stock | 306 | 303 | |||||
Additional paid-in capital | 152,700 | 130,107 | |||||
Retained earnings | 339,350 | 333,153 | |||||
Total shareholders’ equity | 492,356 | 463,563 | |||||
Total liabilities and shareholders’ equity | $ | 698,665 | $ | 541,805 | |||
(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 | |||||||
September 30, 2015 | September 30, 2014 | ||||||
Operating activities: | |||||||
Net income | $ | 15,687 | $ | 16,744 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | 9,399 | 8,115 | |||||
Share-based compensation | 1,886 | 1,676 | |||||
Loss (gain) on disposal of property and equipment | 30 | (329 | ) | ||||
Provision for loss on receivables | 380 | 46 | |||||
Provision for revenue adjustments | 1,549 | 646 | |||||
Deferred income tax | 6,044 | 156 | |||||
Excess tax benefit for stock options exercised | — | 353 | |||||
Changes in operating assets and liabilities | |||||||
Accounts receivable | 5,753 | (3,148 | ) | ||||
Prepaid expenses and other current assets | 1,679 | 1,032 | |||||
Accounts payable and accrued expenses | (3,654 | ) | 587 | ||||
Net cash provided by operating activities | 38,753 | 25,878 | |||||
Investing activities: | |||||||
Proceeds from disposal of property and equipment | 577 | 1,120 | |||||
Purchases of property and equipment | (6,579 | ) | (3,681 | ) | |||
Acquisition of business, net of cash acquired | — | (1,350 | ) | ||||
Other | (33 | ) | 246 | ||||
Net cash used in investing activities | (6,035 | ) | (3,665 | ) | |||
Financing activities: | |||||||
Payments of debt and capital lease obligations | (14,104 | ) | (84 | ) | |||
Proceeds from exercise of stock options | — | 1,503 | |||||
Payments of cash dividends | (3,700 | ) | (3,662 | ) | |||
Repurchase of common stock (repurchase program) | (9,996 | ) | (19,987 | ) | |||
Cash settlement of share-based awards for minimum tax withholdings | (5 | ) | — | ||||
Excess tax benefit for stock options exercised | — | (353 | ) | ||||
Net cash used in financing activities | (27,805 | ) | (22,583 | ) | |||
Net increase (decrease) in cash | 4,913 | (370 | ) | ||||
Cash at beginning of period | 42,531 | 24,943 | |||||
Cash at end of period | $ | 47,444 | $ | 24,573 |
Forward Air Corporation | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
Nine months ended | |||||||
September 30, 2015 | September 30, 2014 | ||||||
Operating activities: | |||||||
Net income | $ | 32,347 | $ | 44,123 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | 27,601 | 22,879 | |||||
Share-based compensation | 5,562 | 5,005 | |||||
Gain on disposal of property and equipment | (3 | ) | (441 | ) | |||
Provision for loss (recovery) on receivables | 463 | (39 | ) | ||||
Provision for revenue adjustments | 3,391 | 1,896 | |||||
Deferred income tax | 5,546 | 1,729 | |||||
Excess tax benefit for stock options exercised | (2,365 | ) | (554 | ) | |||
Changes in operating assets and liabilities | |||||||
Accounts receivable | 866 | (15,875 | ) | ||||
Prepaid expenses and other current assets | (1,531 | ) | (1,397 | ) | |||
Accounts payable and accrued expenses | (14,562 | ) | 7,767 | ||||
Net cash provided by operating activities | 57,315 | 65,093 | |||||
Investing activities: | |||||||
Proceeds from disposal of property and equipment | 1,200 | 1,582 | |||||
Purchases of property and equipment | (18,541 | ) | (37,101 | ) | |||
Acquisition of business, net of cash acquired | (62,375 | ) | (84,348 | ) | |||
Other | (101 | ) | 53 | ||||
Net cash used in investing activities | (79,817 | ) | (119,814 | ) | |||
Financing activities: | |||||||
Proceeds from term loan | 125,000 | — | |||||
Payments of debt and capital lease obligations | (87,367 | ) | (9,662 | ) | |||
Proceeds from exercise of stock options | 11,351 | 13,083 | |||||
Payments of cash dividends | (11,133 | ) | (11,141 | ) | |||
Repurchase of common stock (repurchase program) | (9,996 | ) | (39,972 | ) | |||
Common stock issued under employee stock purchase plan | 228 | 148 | |||||
Cash settlement of share-based awards for minimum tax withholdings | (1,931 | ) | (1,083 | ) | |||
Excess tax benefit for stock options exercised | 2,365 | 554 | |||||
Net cash provided by (used in) financing activities | 28,517 | (48,073 | ) | ||||
Net increase (decrease) in cash | 6,015 | (102,794 | ) | ||||
Cash at beginning of period | 41,429 | 127,367 | |||||
Cash at end of period | $ | 47,444 | $ | 24,573 |
Three months ended | ||||||||||||||||||||
Forward Air | September 30, | Percent of | September 30, | Percent of | Percent | |||||||||||||||
2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | 206.3 | 83.5 | % | $ | 160.1 | 79.4 | % | $ | 46.2 | 28.9 | % | ||||||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | 92.0 | 44.6 | 71.9 | 44.9 | 20.1 | 28.0 | ||||||||||||||
Salaries, wages, and employee benefits | 44.5 | 21.6 | 33.1 | 20.7 | 11.4 | 34.4 | ||||||||||||||
Operating leases | 14.5 | 7.0 | 6.5 | 4.1 | 8.0 | 123.1 | ||||||||||||||
Depreciation and amortization | 6.9 | 3.4 | 5.7 | 3.6 | 1.2 | 21.1 | ||||||||||||||
Insurance and claims | 4.0 | 1.9 | 3.1 | 1.9 | 0.9 | 29.0 | ||||||||||||||
Fuel expense | 1.7 | 0.8 | 2.1 | 1.3 | (0.4 | ) | (19.0 | ) | ||||||||||||
Other operating expenses | 19.0 | 9.2 | 13.5 | 8.4 | 5.5 | 40.7 | ||||||||||||||
Income from operations | $ | 23.7 | 11.5 | % | $ | 24.2 | 15.1 | % | $ | (0.5 | ) | (2.1 | )% | |||||||
FASI | September 30, | Percent of | September 30, | Percent of | Percent | |||||||||||||||
2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | 32.1 | 13.0 | % | $ | 30.6 | 15.2 | % | $ | 1.5 | 4.9 | % | ||||||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | 8.8 | 27.4 | 8.8 | 28.8 | — | — | ||||||||||||||
Salaries, wages, and employee benefits | 12.2 | 38.0 | 10.4 | 34.0 | 1.8 | 17.3 | ||||||||||||||
Operating leases | 2.5 | 7.8 | 2.0 | 6.5 | 0.5 | 25.0 | ||||||||||||||
Depreciation and amortization | 1.5 | 4.7 | 1.5 | 4.9 | — | — | ||||||||||||||
Insurance and claims | 0.9 | 2.8 | 0.4 | 1.3 | 0.5 | 125.0 | ||||||||||||||
Fuel expense | 1.3 | 4.0 | 1.8 | 5.9 | (0.5 | ) | (27.8 | ) | ||||||||||||
Other operating expenses | 4.4 | 13.7 | 3.9 | 12.7 | 0.5 | 12.8 | ||||||||||||||
Income from operations | $ | 0.5 | 1.6 | % | $ | 1.8 | 5.9 | % | $ | (1.3 | ) | (72.2 | )% | |||||||
TQI | September 30, | Percent of | September 30, | Percent of | Percent | |||||||||||||||
2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | 10.2 | 4.1 | % | $ | 12.0 | 6.0 | % | $ | (1.8 | ) | (15.0 | )% | |||||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | 4.6 | 45.1 | 6.0 | 50.0 | (1.4 | ) | (23.3 | ) | ||||||||||||
Salaries, wages, and employee benefits | 2.4 | 23.5 | 2.2 | 18.3 | 0.2 | 9.1 | ||||||||||||||
Operating leases | — | — | — | — | — | — | ||||||||||||||
Depreciation and amortization | 1.0 | 9.8 | 0.9 | 7.5 | 0.1 | 11.1 | ||||||||||||||
Insurance and claims | 0.3 | 2.9 | 0.2 | 1.7 | 0.1 | 50.0 | ||||||||||||||
Fuel expense | 0.8 | 7.9 | 1.1 | 9.2 | (0.3 | ) | (27.3 | ) | ||||||||||||
Other operating expenses | 0.7 | 6.9 | 0.7 | 5.8 | — | — | ||||||||||||||
Income from operations | $ | 0.4 | 3.9 | % | $ | 0.9 | 7.5 | % | $ | (0.5 | ) | (55.6 | )% | |||||||
Intercompany Eliminations | September 30, | Percent of | September 30, | Percent of | Percent | |||||||||||||||
2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | (1.5 | ) | (0.6 | )% | $ | (1.2 | ) | (0.6 | )% | $ | (0.3 | ) | 25.0 | % | |||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | (1.0 | ) | 66.7 | (0.8 | ) | 66.7 | (0.2 | ) | 25.0 | |||||||||||
Other operating expenses | (0.5 | ) | 33.3 | (0.4 | ) | 33.3 | (0.1 | ) | 25.0 | |||||||||||
Income from operations | $ | — | — | % | $ | — | — | % | $ | — | — | % | ||||||||
Consolidated | September 30, | Percent of | September 30, | Percent of | Percent | |||||||||||||||
2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | 247.1 | 100.0 | % | $ | 201.5 | 100.0 | % | $ | 45.6 | 22.6 | % | ||||||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | 104.4 | 42.2 | 85.9 | 42.6 | 18.5 | 21.5 | ||||||||||||||
Salaries, wages, and employee benefits | 59.1 | 23.9 | 45.7 | 22.7 | 13.4 | 29.3 | ||||||||||||||
Operating leases | 17.0 | 6.9 | 8.5 | 4.2 | 8.5 | 100.0 | ||||||||||||||
Depreciation and amortization | 9.4 | 3.8 | 8.1 | 4.0 | 1.3 | 16.0 | ||||||||||||||
Insurance and claims | 5.2 | 2.1 | 3.7 | 1.9 | 1.5 | 40.5 | ||||||||||||||
Fuel expense | 3.8 | 1.5 | 5.0 | 2.5 | (1.2 | ) | (24.0 | ) | ||||||||||||
Other operating expenses | 23.6 | 9.6 | 17.7 | 8.8 | 5.9 | 33.3 | ||||||||||||||
Income from operations | $ | 24.6 | 10.0 | % | $ | 26.9 | 13.3 | % | $ | (2.3 | ) | (8.6 | )% |
Nine months ended | ||||||||||||||||||||
Forward Air | September 30, | Percent of | September 30, | Percent of | Percent | |||||||||||||||
2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | 586.4 | 83.5 | % | $ | 448.5 | 79.1 | % | $ | 137.9 | 30.7 | % | ||||||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | 264.6 | 45.1 | 201.3 | 44.9 | 63.3 | 31.4 | ||||||||||||||
Salaries, wages, and employee benefits | 134.8 | 23.0 | 96.1 | 21.4 | 38.7 | 40.3 | ||||||||||||||
Operating leases | 44.3 | 7.5 | 18.4 | 4.1 | 25.9 | 140.8 | ||||||||||||||
Depreciation and amortization | 20.1 | 3.4 | 16.0 | 3.6 | 4.1 | 25.6 | ||||||||||||||
Insurance and claims | 13.1 | 2.2 | 8.7 | 1.9 | 4.4 | 50.6 | ||||||||||||||
Fuel expense | 5.6 | 1.0 | 6.2 | 1.4 | (0.6 | ) | (9.7 | ) | ||||||||||||
Other operating expenses | 54.3 | 9.3 | 37.0 | 8.3 | 17.3 | 46.8 | ||||||||||||||
Income from operations | $ | 49.6 | 8.5 | % | $ | 64.8 | 14.4 | % | $ | (15.2 | ) | (23.5 | )% | |||||||
FASI | September 30, | Percent of | September 30, | Percent of | Percent | |||||||||||||||
2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | 87.0 | 12.4 | % | $ | 84.9 | 15.0 | % | $ | 2.1 | 2.5 | % | ||||||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | 23.8 | 27.4 | 24.6 | 29.0 | (0.8 | ) | (3.3 | ) | ||||||||||||
Salaries, wages, and employee benefits | 32.8 | 37.7 | 29.0 | 34.2 | 3.8 | 13.1 | ||||||||||||||
Operating leases | 6.8 | 7.8 | 6.5 | 7.7 | 0.3 | 4.6 | ||||||||||||||
Depreciation and amortization | 4.6 | 5.3 | 4.2 | 4.9 | 0.4 | 9.5 | ||||||||||||||
Insurance and claims | 2.7 | 3.1 | 1.8 | 2.1 | 0.9 | 50.0 | ||||||||||||||
Fuel expense | 3.9 | 4.5 | 5.3 | 6.2 | (1.4 | ) | (26.4 | ) | ||||||||||||
Other operating expenses | 11.6 | 13.3 | 10.7 | 12.6 | 0.9 | 8.4 | ||||||||||||||
Income from operations | $ | 0.8 | 0.9 | % | $ | 2.8 | 3.3 | % | $ | (2.0 | ) | (71.4 | )% | |||||||
TQI | September 30, | Percent of | September 30, | Percent of | Percent | |||||||||||||||
2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | 33.3 | 4.7 | % | $ | 36.8 | 6.5 | % | $ | (3.5 | ) | (9.5 | )% | |||||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | 15.7 | 47.2 | 18.7 | 50.8 | (3.0 | ) | (16.0 | ) | ||||||||||||
Salaries, wages, and employee benefits | 7.2 | 21.6 | 6.4 | 17.4 | 0.8 | 12.5 | ||||||||||||||
Operating leases | 0.1 | 0.3 | 0.1 | 0.3 | — | — | ||||||||||||||
Depreciation and amortization | 2.9 | 8.7 | 2.7 | 7.3 | 0.2 | 7.4 | ||||||||||||||
Insurance and claims | 0.7 | 2.1 | 0.5 | 1.4 | 0.2 | 40.0 | ||||||||||||||
Fuel expense | 2.6 | 7.8 | 3.5 | 9.5 | (0.9 | ) | (25.7 | ) | ||||||||||||
Other operating expenses | 1.8 | 5.4 | 1.7 | 4.6 | 0.1 | 5.9 | ||||||||||||||
Income from operations | $ | 2.3 | 6.9 | % | $ | 3.2 | 8.7 | % | $ | (0.9 | ) | (28.1 | )% | |||||||
Intercompany Eliminations | September 30, | Percent of | September 30, | Percent of | Percent | |||||||||||||||
2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | (4.0 | ) | (0.6 | )% | $ | (3.3 | ) | (0.6 | )% | $ | (0.7 | ) | 21.2 | % | |||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | (2.8 | ) | 70.0 | (2.4 | ) | 72.7 | (0.4 | ) | 16.7 | |||||||||||
Other operating expenses | (1.2 | ) | 30.0 | (0.9 | ) | 27.3 | (0.3 | ) | 33.3 | |||||||||||
Income from operations | $ | — | — | % | $ | — | — | % | $ | — | — | % | ||||||||
Consolidated | September 30, | Percent of | September 30, | Percent of | Percent | |||||||||||||||
2015 | Revenue | 2014 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | 702.7 | 100.0 | % | $ | 566.9 | 100.0 | % | $ | 135.8 | 24.0 | % | ||||||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | 301.3 | 42.9 | 242.2 | 42.7 | 59.1 | 24.4 | ||||||||||||||
Salaries, wages, and employee benefits | 174.8 | 24.9 | 131.5 | 23.2 | 43.3 | 32.9 | ||||||||||||||
Operating leases | 51.2 | 7.3 | 25.0 | 4.4 | 26.2 | 104.8 | ||||||||||||||
Depreciation and amortization | 27.6 | 3.9 | 22.9 | 4.0 | 4.7 | 20.5 | ||||||||||||||
Insurance and claims | 16.5 | 2.3 | 11.0 | 2.0 | 5.5 | 50.0 | ||||||||||||||
Fuel expense | 12.1 | 1.7 | 15.0 | 2.6 | (2.9 | ) | (19.3 | ) | ||||||||||||
Other operating expenses | 66.5 | 9.5 | 48.5 | 8.6 | 18.0 | 37.1 | ||||||||||||||
Income from operations | $ | 52.7 | 7.5 | % | $ | 70.8 | 12.5 | % | $ | (18.1 | ) | (25.6 | )% |
Forward Air Corporation | ||||||||||
Forward Air Inc. Operating Statistics | ||||||||||
Three months ended | ||||||||||
September 30, | September 30, | Percent | ||||||||
2015 | 2014 | Change | ||||||||
Operating ratio | 88.5 | % | 84.9 | % | 4.2 | % | ||||
Business days | 64.0 | 64.0 | — | |||||||
Business weeks | 12.8 | 12.8 | — | |||||||
Airport-to-airport: | ||||||||||
Tonnage | ||||||||||
Total pounds ¹ | 617,066 | 484,827 | 27.3 | |||||||
Average weekly pounds ¹ | 48,208 | 37,877 | 27.3 | |||||||
Linehaul shipments | ||||||||||
Total linehaul | 920,493 | 734,163 | 25.4 | |||||||
Average weekly | 71,914 | 57,356 | 25.4 | |||||||
Forward Air Complete shipments | 223,143 | 146,024 | 52.8 | |||||||
As a percentage of linehaul shipments | 24.2 | % | 19.9 | % | 21.6 | |||||
Average linehaul shipment size | 670 | 660 | 1.5 | |||||||
Revenue per pound ² | ||||||||||
Linehaul yield | $ | 17.07 | $ | 17.69 | (2.7 | ) | ||||
Fuel surcharge impact | 1.16 | 1.94 | (3.4 | ) | ||||||
Forward Air Complete impact | 3.44 | 3.35 | 0.4 | |||||||
Total airport-to-airport yield | $ | 21.67 | $ | 22.98 | (5.7 | ) | ||||
Expedited full truckload - TLX: | ||||||||||
Miles | ||||||||||
Owner operator ¹ | 9,933 | 6,391 | 55.4 | |||||||
Third party ¹ | 5,822 | 4,895 | 18.9 | |||||||
Total Miles | 15,755 | 11,286 | 39.6 | |||||||
Revenue per mile | $ | 1.80 | $ | 1.77 | 1.7 | |||||
Cost per mile | $ | 1.31 | $ | 1.33 | (1.5 | )% | ||||
¹ - In thousands | ||||||||||
² - In dollars per hundred pound; percentage change is expressed as a percent of total yield. |
Forward Air Corporation | ||||||||||
Forward Air Inc. Operating Statistics | ||||||||||
Nine months ended | ||||||||||
September 30, | September 30, | Percent | ||||||||
2015 | 2014 | Change | ||||||||
Operating ratio | 91.5 | % | 85.6 | % | 6.9 | % | ||||
Business days | 191.0 | 191.0 | — | |||||||
Business weeks | 38.2 | 38.2 | — | |||||||
Airport-to-airport: | ||||||||||
Tonnage | ||||||||||
Total pounds ¹ | 1,787,262 | 1,399,687 | 27.7 | |||||||
Average weekly pounds ¹ | 46,787 | 36,641 | 27.7 | |||||||
Linehaul shipments | ||||||||||
Total linehaul | 2,717,100 | 2,127,645 | 27.7 | |||||||
Average weekly | 71,128 | 55,698 | 27.7 | |||||||
Forward Air Complete shipments | 649,431 | 393,170 | 65.2 | |||||||
As a percentage of linehaul shipments | 23.9 | % | 18.5 | % | 29.2 | |||||
Average linehaul shipment size | 658 | 658 | — | |||||||
Revenue per pound ² | ||||||||||
Linehaul yield | $ | 17.28 | $ | 17.56 | (1.2 | ) | ||||
Fuel surcharge impact | 1.20 | 2.00 | (3.5 | ) | ||||||
Forward Air Complete impact | 3.22 | 3.10 | 0.5 | |||||||
Total airport-to-airport yield | $ | 21.70 | $ | 22.66 | (4.2 | ) | ||||
Expedited full truckload - TLX: | ||||||||||
Miles | ||||||||||
Owner operator ¹ | 24,011 | 20,288 | 18.4 | |||||||
Third party ¹ | 18,128 | 13,547 | 33.8 | |||||||
Total Miles | 42,139 | 33,835 | 24.5 | |||||||
Revenue per mile | $ | 1.88 | $ | 1.67 | 12.6 | |||||
Cost per mile | $ | 1.36 | $ | 1.28 | 6.3 | % | ||||
¹ - In thousands | ||||||||||
² - In dollars per hundred pound; percentage change is expressed as a percent of total yield. |
(In millions, except per share data) | ||||||||||||
(Unaudited) | ||||||||||||
Three months ended | ||||||||||||
Adjusted | ||||||||||||
September 30, 2015 (1) | Integration and Deal Costs | September 30, 2015 | ||||||||||
Income from operations | $ | 24.6 | $ | 3.9 | $ | 28.5 | ||||||
Net income | $ | 15.7 | $ | 2.4 | $ | 18.1 | ||||||
Weighted average diluted shares outstanding | 30,998 | 30,998 | 30,998 | |||||||||
Net income per share: | $ | 0.50 | $ | 0.08 | $ | 0.58 | ||||||
(1) - As reported in accordance with United States generally accepted accounting principles. | ||||||||||||
Three months ended | ||||||||||||
Adjusted | ||||||||||||
September 30, 2014 (1) | Integration and Deal Costs | September 30, 2014 | ||||||||||
Income from operations | $ | 26.7 | $ | — | $ | 26.7 | ||||||
Net income | $ | 16.7 | $ | — | $ | 16.7 | ||||||
Weighted average diluted shares outstanding | 30,932 | — | 30,932 | |||||||||
Net income per share: | $ | 0.54 | $ | — | $ | 0.54 | ||||||
(1) - As reported in accordance with United States generally accepted accounting principles. |
Forward Air Corporation | ||||||||||||
Reconciliation to U.S. GAAP | ||||||||||||
(In millions, except per share data) | ||||||||||||
(Unaudited) | ||||||||||||
Nine months ended | ||||||||||||
Adjusted | ||||||||||||
September 30, 2015 (1) | Integration and Deal Costs | September 30, 2015 | ||||||||||
Income from operations | $ | 52.7 | $ | 22.9 | $ | 75.6 | ||||||
Net income | $ | 32.3 | $ | 14.0 | $ | 46.3 | ||||||
Weighted average diluted shares outstanding | 31,084 | 31,084 | 31,084 | |||||||||
Net income per share: | $ | 1.03 | $ | 0.45 | $ | 1.49 | ||||||
(1) - As reported in accordance with United States generally accepted accounting principles. |
Nine months ended | ||||||||||||
Adjusted | ||||||||||||
September 30, 2014 (1) | Integration and Deal Costs | September 30, 2014 | ||||||||||
Income from operations | $ | 70.6 | $ | 0.9 | $ | 71.5 | ||||||
Net income | $ | 44.1 | $ | 0.6 | $ | 44.7 | ||||||
Weighted average diluted shares outstanding | 31,234 | 31,234 | 31,234 | |||||||||
Net income per share: | $ | 1.41 | $ | 0.02 | $ | 1.43 | ||||||
(1) - As reported in accordance with United States generally accepted accounting principles. |
Forward Air Corporation | |||||
Actual to Guidance EPS Bridge | |||||
Three months ended September 30, 2015 | |||||
(All EPS is diluted earnings per share) | |||||
Third quarter EPS as reported | $ | 0.500 | |||
Towne Air acquisition and integration costs | 0.080 | ||||
Adjusted EPS | 0.580 | ||||
Variances from guidance assumptions: | |||||
Technology tax deduction | (0.030 | ) | |||
FASI EPS contribution shortfall | 0.025 | ||||
TQI EPS contribution shortfall | 0.010 | ||||
Timing of cost reductions and pricing adjustments related to Towne | 0.015 | ||||
Detrimental difference in net fuel surcharge | 0.010 | ||||
Total variances from guidance assumptions | 0.030 | ||||
Adjusted EPS with variances added back | 0.610 | ||||
Mid-point of original third quarter guidance | 0.600 | ||||
Remaining positive EPS variance | $ | 0.010 |