Exhibit

Operating revenue for the quarter ended March 31, 2018 increased 15.5% to $302.6 million from $262.0 million for the same quarter in 2017. Income from operations was $24.2 million, compared to $23.7 million in the prior year quarter. Net income during the period was $17.7 million compared to $14.6 million in the first quarter of 2017. Net income per diluted share for the first quarter of 2018 was $0.60 compared to $0.48 in the prior year quarter.

Bruce A. Campbell, President, and CEO, commenting on first quarter results said, “Our first quarter results were ahead of our guidance despite some adverse weather. Expedited LTL drove strong volume growth amid a tight Truckload market to deliver solid performance despite a higher use of brokered transportation. Truckload Premium Services also faced a higher use of brokered transportation as it continued adjusting its customer contracts to market rates. Our Intermodal group delivered broad-based growth that extended beyond its recently completed acquisitions. Pool Distribution had a solid quarter driven by volume growth and new business wins.”

Commenting on the Company’s second quarter 2018 guidance, Michael J. Morris, Senior Vice President and CFO, said, “We expect second quarter year-on-year revenue growth to be 16% to 20%. This revenue outlook contemplates our 2018 implementation of ASC 606, Revenue from Contracts with Customers, which now requires that we report fuel surcharge revenue on a gross basis. As such, our growth outlook reflects a comparison to our second quarter 2017 revenue which reported fuel surcharge on a net basis. After adjusting this prior year period to reflect fuel surcharge revenue on a gross basis, we expect our year-on-year revenue growth to be 9% to 13%. We expect net income per diluted share to be between $0.73 and $0.77 in the second quarter of 2018, compared to $0.65 in the prior year quarter. The prior year earnings per share for the second quarter of 2017 increased $0.01 per diluted share from the originally reported $0.64 per diluted share following the implementation of ASC 606.”

This quarterly dividend is pursuant to a cash dividend policy approved by the Board of Directors, which anticipates a total annual dividend of $0.60 per share of common stock, payable in quarterly increments of $0.15 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.

Forward Air keeps your business moving forward by providing services within four business segments: Expedited LTL (provides expedited regional, inter-regional and national LTL services, including local pick-up and delivery, shipment consolidation/deconsolidation, warehousing, and customs brokerage by utilizing a comprehensive national network of terminals); Truckload Premium Services (provides expedited truckload brokerage, dedicated fleet services, as well as high-security and temperature-controlled logistics services); Intermodal (provides first-and last-mile high-value drayage services both to and from seaports and railheads, dedicated contract and Container Freight Station warehouse and handling services); and Pool Distribution (provides high-frequency handling and distribution of time sensitive product to numerous destinations within a specific geographic region). For more information, visit our website at www.forwardaircorp.com.



Forward Air Corporation
Consolidated Statements of Comprehensive Income
(In thousands, except per share data)
(Unaudited)

	Three months ended
	March 31, 2018			March 31, 2017
				(As Adjusted)
Operating revenue:
Expedited LTL	$	169,944		$	148,765
Truckload Premium Services	46,094			47,088
Pool Distribution	42,671			38,801
Intermodal	48,568			28,907
Eliminations and other operations	(4,669		)	(1,515		)
Operating revenue	302,608			262,046

Operating expenses:
Purchased transportation	139,666			117,695
Salaries, wages and employee benefits	69,581			61,928
Operating leases	17,964			15,601
Depreciation and amortization	10,690			10,033
Insurance and claims	7,153			5,806
Fuel expense	5,554			3,680
Other operating expenses	27,765			23,560
Total operating expenses	278,373			238,303
Operating (loss) income:
Expedited LTL	20,773			18,928
Truckload Premium Services	(43		)	1,755
Pool Distribution	1,371			1,367
Intermodal	3,469			2,555
Other operations	(1,335		)	(862		)
Income from operations	24,235			23,743

Other income (expense):
Interest expense	(371		)	(282		)
Other, net	—			(26		)
Total other income (expense)	(371		)	(308		)
Income before income taxes	23,864			23,435
Income tax expense	6,123			8,854
Net income and comprehensive income	$	17,741		$	14,581

Net income per share:
Basic	$	0.60		$	0.48
Diluted	$	0.60		$	0.48

Dividends per share:	$	0.15		$	0.15



Expedited LTL Segment Information
(In millions)
(Unaudited)

	Three months ended
	March 31,		Percent of		March 31,		Percent of					Percent
	2018		Revenue		2017		Revenue		Change			Change
					(As Adjusted)
Operating revenue	$	169.9	100.0	%	$	148.8	100.0	%	$	21.1		14.2	%

Operating expenses:
Purchased transportation	78.4		46.2		63.1		42.4		15.3			24.2
Salaries, wages and employee benefits	37.7		22.2		34.9		23.5		2.8			8.0
Operating leases	9.9		5.8		9.2		6.2		0.7			7.6
Depreciation and amortization	5.5		3.2		5.6		3.8		(0.1		)	(1.8	)
Insurance and claims	3.2		1.9		2.9		1.9		0.3			10.3
Fuel expense	1.3		0.8		0.9		0.6		0.4			44.4
Other operating expenses	13.1		7.7		13.3		8.9		(0.2		)	(1.5	)
Total operating expenses	149.1		87.8		129.9		87.3		19.2			14.8
Income from operations	$	20.8	12.2	%	$	18.9	12.7	%	$	1.9		10.1	%



Expedited LTL Operating Statistics

	Three months ended
	March 31,		March 31,		Percent
	2018		2017		Change
			(As Adjusted)

Business days	64		64		—	%

Tonnage
Total pounds ¹	608,822		565,682		7.6
Pounds per day ¹	9,513		8,839		7.6

Shipments
Total shipments	970,820		901,636		7.7
Shipments per day	15,169		14,088		7.7
Total shipments with pickup and/or delivery	231,410		210,002		10.2

Revenue per hundredweight	$	25.18	$	24.01	4.9
Revenue per hundredweight, ex fuel	21.66		21.46		0.9

Revenue per shipment	158		151		4.6
Revenue per shipment, ex fuel	136		135		0.7

Weight per shipment	627		627		—	%

¹ - In thousands



Truckload Premium Services Segment Information
(In millions)
(Unaudited)

	Three months ended
	March 31,		Percent of		March 31,		Percent of					Percent
	2018		Revenue		2017		Revenue		Change			Change
					(As Adjusted)
Operating revenue	$	46.1	100.0	%	$	47.1	100.0	%	$	(1.0	)	(2.1	)%

Operating expenses:
Purchased transportation	34.8		75.5		34.6		73.4		0.2			0.6
Salaries, wages and employee benefits	5.1		11.1		5.2		11.0		(0.1		)	(1.9	)
Operating leases	0.2		0.4		0.1		0.2		0.1			100.0
Depreciation and amortization	1.8		3.9		1.5		3.2		0.3			20.0
Insurance and claims	1.0		2.2		1.1		2.3		(0.1		)	(9.1	)
Fuel expense	1.1		2.4		0.8		1.7		0.3			37.5
Other operating expenses	2.1		4.5		2.1		4.5		—			—
Total operating expenses	46.1		100.0		45.4		96.4		0.7			1.5
Income from operations	$	—	—	%	$	1.7	3.6	%	$	(1.7	)	(100.0	)%



Pool Distribution Segment Information
(In millions)
(Unaudited)

	Three months ended
	March 31,		Percent of		March 31,		Percent of					Percent
	2018		Revenue		2017		Revenue		Change			Change
					(As Adjusted)
Operating revenue	$	42.7	100.0	%	$	38.8	100.0	%	$	3.9		10.1	%

Operating expenses:
Purchased transportation	12.1		28.3		10.9		28.1		1.2			11.0
Salaries, wages and employee benefits	15.9		37.2		14.4		37.1		1.5			10.4
Operating leases	3.7		8.7		3.2		8.2		0.5			15.6
Depreciation and amortization	1.8		4.2		1.8		4.6		—			—
Insurance and claims	0.9		2.1		1.0		2.6		(0.1		)	(10.0	)
Fuel expense	1.6		3.8		1.2		3.1		0.4			33.3
Other operating expenses	5.3		12.4		4.9		12.6		0.4			8.2
Total operating expenses	41.3		96.7		37.4		96.4		3.9			10.4
Income from operations	$	1.4	3.3	%	$	1.4	3.6	%	$	—		—	%



Intermodal Segment Information
(In millions)
(Unaudited)

	Three months ended
	March 31,		Percent of		March 31,		Percent of				Percent
	2018		Revenue		2017		Revenue		Change		Change
					(As Adjusted)
Operating revenue	$	48.6	100.0	%	$	28.9	100.0	%	$	19.7	68.2	%

Operating expenses:
Purchased transportation	18.7		38.5		10.3		35.6		8.4		81.6
Salaries, wages and employee benefits	10.3		21.2		6.7		23.2		3.6		53.7
Operating leases	4.0		8.2		3.1		10.7		0.9		29.0
Depreciation and amortization	1.6		3.3		1.1		3.8		0.5		45.5
Insurance and claims	1.4		2.9		0.8		2.8		0.6		75.0
Fuel expense	1.6		3.3		0.7		2.4		0.9		128.6
Other operating expenses	7.5		15.4		3.6		12.5		3.9		108.3
Total operating expenses	45.1		92.8		26.3		91.0		18.8		71.5
Income from operations	$	3.5	7.2	%	$	2.6	9.0	%	$	0.9	34.6	%



Forward Air Corporation
Consolidated Balance Sheets
(In thousands)
(Unaudited)
	March 31, 2018		December 31, 2017
			(As Adjusted)
Assets
Current assets:
Cash and cash equivalents	$	12,735	$	3,893
Accounts receivable, net	146,191		147,948
Other current assets	11,147		15,807
Total current assets	170,073		167,648

Property and equipment	402,688		399,235
Less accumulated depreciation and amortization	199,088		193,123
Net property and equipment	203,600		206,112
Goodwill and other acquired intangibles:
Goodwill	191,671		191,671
Other acquired intangibles, net of accumulated amortization	108,938		111,247
Total goodwill and other acquired intangibles, net	300,609		302,918
Other assets	15,925		15,944
Total assets	$	690,207	$	692,622

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	30,004	$	30,723
Accrued expenses	35,976		35,069
Current portion of debt and capital lease obligations	351		359
Total current liabilities	66,331		66,151

Debt and capital lease obligations, less current portion	40,522		40,588
Other long-term liabilities	24,118		24,104
Deferred income taxes	32,793		29,080

Shareholders’ equity:
Common stock	290		295
Additional paid-in capital	197,607		195,346
Retained earnings	328,546		337,058
Total shareholders’ equity	526,443		532,699
Total liabilities and shareholders’ equity	$	690,207	$	692,622



Forward Air Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

	Three months ended
	March 31, 2018			March 31, 2017
				(As Adjusted)
Operating activities:
Net income	$	17,741		$	14,581
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	10,690			10,033
Share-based compensation	2,261			1,962
Loss on disposal of property and equipment	82			488
Provision for loss on receivables	134			22
Provision for revenue adjustments	817			718
Deferred income tax expense	3,713			131
Changes in operating assets and liabilities
Accounts receivable	805			(1,470		)
Prepaid expenses and other current assets	2,715			2,153
Income taxes	1,768			8,434
Accounts payable and accrued expenses	87			9
Net cash provided by operating activities	40,813			37,061

Investing activities:
Proceeds from disposal of property and equipment	644			790
Purchases of property and equipment	(6,221		)	(2,652		)
Other	(91		)	128
Net cash used in investing activities	(5,668		)	(1,734		)

Financing activities:
Payments of debt and capital lease obligations	(74		)	(27,857		)
Proceeds from senior credit facility	—			13,000
Proceeds from exercise of stock options	—			1,524
Payments of cash dividends	(4,413		)	(4,539		)
Repurchase of common stock (repurchase program)	(19,993		)	(9,996		)
Cash settlement of share-based awards for tax withholdings	(1,823		)	(1,635		)
Net cash used in financing activities	(26,303		)	(29,503		)
Net increase in cash	8,842			5,824
Cash at beginning of period	3,893			8,511
Cash at end of period	$	12,735		$	14,335



Forward Air Corporation
Additional Guidance Data
(In thousands, except per share data)
(Unaudited)

	Three months ended
Actual	March 31, 2018
Net income	$	17,741
Income allocated to participating securities	(145		)
Numerator for diluted income per share - net income	$	17,596

Fully diluted share count	29,480
Diluted earnings per share	$	0.60


Projected	Full year 2018
Projected tax rate	25.3		%

Projected year end fully diluted share count	28,800

Projected capital expenditures, net	$	46,500

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S.Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as:“anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,”“likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements included in this press release relate to expected second quarter 2018 revenue growth and net income per diluted shares as well as full year 2018 projected tax rate, fully diluted share count (before consideration of future share repurchase) and projected capital expenditures.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these 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, the creditworthiness of our customers and their ability to pay for services rendered, the availability and compensation of qualified independent owner-operators and freight handlers as well as contracted, third-party carriers needed to serve our customers’ transportation needs, the inability of our information systems to handle an increased volume of freight moving through our network, changes in fuel prices, our inability to maintain our historical growth rate because of a decreased volume of freight or decreased average revenue per pound of freight moving through our network, loss of a major customer, increasing competition and pricing pressure, our ability to secure terminal facilities in desirable locations at reasonable rates, our inability to successfully integrate acquisitions, claims for property damage, personal injuries or workers’ compensation, enforcement of and changes in governmental regulations, environmental and tax matters, insurance matters, the handling of hazardous materials and the risks described in our Annual Report on Form 10-K for the year ended December 31, 2017.



Truckload Premium Services Operating Statistics

	Three months ended
	March 31,			March 31,			Percent
	2018			2017			Change
				(As Adjusted)

Total Miles ¹	20,072			22,846			(12.1	)%
Empty Miles Percentage	9.5		%	10.2		%	(6.9	)
Tractors (avg)	329			408			(19.4	)
Miles per tractor per week	4,766			4,375			8.9

Revenue per mile	$	2.19		$	2.01		9.0
Cost per mile	$	1.81		$	1.60		13.1	%

¹ - In thousands



Pool Operating Statistics

	Three months ended
	March 31,		March 31,		Percent
	2018		2017		Change
			(As Adjusted)

Cartons¹	20,223		18,691		8.2	%
Revenue per Carton	$	2.11	$	2.08	1.4	%
Terminals	28		28		—	%

¹ In thousands



Intermodal Operating Statistics

	Three months ended
	March 31,		March 31,		Percent
	2018		2017		Change
			(As Adjusted)

Drayage shipments	73,671		34,754		112.0	%
Drayage revenue per Shipment	$	571	$	663	(13.9	)%
Number of Locations	19		13		46.2	%