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 | )% |
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 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 | % | $ | — | — | % |
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 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 | % |
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 | % |
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 | |