Forward Air Corporation | |||||||
Consolidated Statements of Comprehensive Income | |||||||
(In thousands, except per share data) | |||||||
(Unaudited) | |||||||
Three months ended | |||||||
March 31, 2019 | March 31, 2018 | ||||||
Operating revenue: | |||||||
Expedited LTL | $ | 178,553 | $ | 169,944 | |||
Intermodal | 54,115 | 48,568 | |||||
Truckload Premium Services | 45,667 | 46,094 | |||||
Pool Distribution | 45,185 | 42,671 | |||||
Eliminations and other operations | (2,049 | ) | (4,669 | ) | |||
Operating revenue | 321,471 | 302,608 | |||||
Operating expenses: | |||||||
Purchased transportation | 144,014 | 139,666 | |||||
Salaries, wages and employee benefits | 76,362 | 69,581 | |||||
Operating leases | 19,173 | 17,964 | |||||
Depreciation and amortization | 10,827 | 10,690 | |||||
Insurance and claims | 9,371 | 7,153 | |||||
Fuel expense | 5,608 | 5,554 | |||||
Other operating expenses | 31,382 | 27,765 | |||||
Total operating expenses | 296,737 | 278,373 | |||||
Income (loss) from operations: | |||||||
Expedited LTL | 19,547 | 20,773 | |||||
Intermodal | 6,181 | 3,469 | |||||
Truckload Premium Services | 841 | (43 | ) | ||||
Pool Distribution | 1,251 | 1,371 | |||||
Other operations | (3,086 | ) | (1,335 | ) | |||
Income from operations | 24,734 | 24,235 | |||||
Other expense: | |||||||
Interest expense | (575 | ) | (371 | ) | |||
Other, net | (1 | ) | — | ||||
Total other expense | (576 | ) | (371 | ) | |||
Income before income taxes | 24,158 | 23,864 | |||||
Income tax expense | 5,751 | 6,123 | |||||
Net income and comprehensive income | $ | 18,407 | $ | 17,741 | |||
Net income per share: | |||||||
Basic | $ | 0.64 | $ | 0.60 | |||
Diluted | $ | 0.64 | $ | 0.60 | |||
Dividends per share: | $ | 0.18 | $ | 0.15 |
Expedited LTL Segment Information | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended | ||||||||||||||||||||
March 31, | Percent of | March 31, | Percent of | Percent | ||||||||||||||||
2019 | Revenue | 2018 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | 178.6 | 100.0 | % | $ | 169.9 | 100.0 | % | $ | 8.7 | 5.1 | % | ||||||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | 79.6 | 44.6 | 78.4 | 46.2 | 1.2 | 1.5 | ||||||||||||||
Salaries, wages and employee benefits | 41.1 | 23.0 | 37.7 | 22.2 | 3.4 | 9.0 | ||||||||||||||
Operating leases | 10.9 | 6.1 | 9.9 | 5.8 | 1.0 | 10.1 | ||||||||||||||
Depreciation and amortization | 5.8 | 3.2 | 5.5 | 3.2 | 0.3 | 5.5 | ||||||||||||||
Insurance and claims | 3.9 | 2.2 | 3.2 | 1.9 | 0.7 | 21.9 | ||||||||||||||
Fuel expense | 1.8 | 1.0 | 1.3 | 0.8 | 0.5 | 38.5 | ||||||||||||||
Other operating expenses | 15.9 | 8.9 | 13.1 | 7.7 | 2.8 | 21.4 | ||||||||||||||
Total operating expenses | 159.0 | 89.0 | 149.1 | 87.8 | 9.9 | 6.6 | ||||||||||||||
Income from operations | $ | 19.6 | 11.0 | % | $ | 20.8 | 12.2 | % | $ | (1.2 | ) | (5.8 | )% |
Expedited LTL Operating Statistics | ||||||||||
Three months ended | ||||||||||
March 31, | March 31, | Percent | ||||||||
2019 | 2018 | Change | ||||||||
Business days | 63 | 64 | (1.6 | )% | ||||||
Tonnage | ||||||||||
Total pounds ¹ | 596,640 | 608,822 | (2.0 | ) | ||||||
Pounds per day ¹ | 9,470 | 9,513 | (0.5 | ) | ||||||
Shipments | ||||||||||
Total shipments ¹ | 929.6 | 970.8 | (4.2 | ) | ||||||
Shipments per day ¹ | 14.8 | 15.2 | (2.6 | ) | ||||||
Weight per shipment | 642 | 627 | 2.4 | |||||||
Revenue per hundredweight | $ | 26.78 | $ | 25.27 | 6.0 | |||||
Revenue per hundredweight, ex fuel | 22.74 | 21.75 | 4.6 | |||||||
Revenue per shipment | $ | 174 | $ | 161 | 8.1 | |||||
Revenue per shipment, ex fuel | 148 | 139 | 6.5 | |||||||
Network revenue from door-to-door shipments as a percentage of network revenue 2,3 | 38.3 | % | 34.1 | % | 12.3 | % | ||||
¹ In thousands | ||||||||||
2 Door-to-door shipments include all shipments with a pickup and/or delivery | ||||||||||
3 Network revenue is comprised of all revenue, including linehaul, pickup and/or delivery, and fuel surcharge revenue, excluding accessorial and final mile revenue |
Intermodal Segment Information | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended | ||||||||||||||||||||
March 31, | Percent of | March 31, | Percent of | Percent | ||||||||||||||||
2019 | Revenue | 2018 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | 54.1 | 100.0 | % | $ | 48.6 | 100.0 | % | $ | 5.5 | 11.3 | % | ||||||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | 18.4 | 34.0 | 18.7 | 38.5 | (0.3 | ) | (1.6 | ) | ||||||||||||
Salaries, wages and employee benefits | 12.7 | 23.5 | 10.3 | 21.2 | 2.4 | 23.3 | ||||||||||||||
Operating leases | 3.8 | 7.0 | 4.0 | 8.2 | (0.2 | ) | (5.0 | ) | ||||||||||||
Depreciation and amortization | 1.9 | 3.5 | 1.6 | 3.3 | 0.3 | 18.8 | ||||||||||||||
Insurance and claims | 1.4 | 2.6 | 1.4 | 2.9 | — | — | ||||||||||||||
Fuel expense | 1.6 | 3.0 | 1.6 | 3.3 | — | — | ||||||||||||||
Other operating expenses | 8.1 | 15.0 | 7.5 | 15.4 | 0.6 | 8.0 | ||||||||||||||
Total operating expenses | 47.9 | 88.5 | 45.1 | 92.8 | 2.8 | 6.2 | ||||||||||||||
Income from operations | $ | 6.2 | 11.5 | % | $ | 3.5 | 7.2 | % | $ | 2.7 | 77.1 | % |
Intermodal Operating Statistics | ||||||||||
Three months ended | ||||||||||
March 31, | March 31, | Percent | ||||||||
2019 | 2018 | Change | ||||||||
Drayage shipments | 75,607 | 73,671 | 2.6 | % | ||||||
Drayage revenue per shipment | $ | 625 | $ | 571 | 9.5 | |||||
Number of locations | 21 | 19 | 10.5 | % |
Truckload Premium Services Segment Information | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended | ||||||||||||||||||||
March 31, | Percent of | March 31, | Percent of | Percent | ||||||||||||||||
2019 | Revenue | 2018 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | 45.7 | 100.0 | % | $ | 46.1 | 100.0 | % | $ | (0.4 | ) | (0.9 | )% | |||||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | 34.5 | 75.5 | 34.8 | 75.5 | (0.3 | ) | (0.9 | ) | ||||||||||||
Salaries, wages and employee benefits | 4.6 | 10.1 | 5.1 | 11.1 | (0.5 | ) | (9.8 | ) | ||||||||||||
Operating leases | 0.1 | 0.2 | 0.2 | 0.4 | (0.1 | ) | (50.0 | ) | ||||||||||||
Depreciation and amortization | 1.6 | 3.5 | 1.8 | 3.9 | (0.2 | ) | (11.1 | ) | ||||||||||||
Insurance and claims | 1.0 | 2.2 | 1.0 | 2.2 | — | — | ||||||||||||||
Fuel expense | 0.7 | 1.5 | 1.1 | 2.4 | (0.4 | ) | (36.4 | ) | ||||||||||||
Other operating expenses | 2.3 | 5.0 | 2.1 | 4.5 | 0.2 | 9.5 | ||||||||||||||
Total operating expenses | 44.8 | 98.0 | 46.1 | 100.0 | (1.3 | ) | (2.8 | ) | ||||||||||||
Income from operations | $ | 0.9 | 2.0 | % | $ | — | — | % | $ | 0.9 | 100.0 | % |
Truckload Premium Services Operating Statistics | ||||||||||
Three months ended | ||||||||||
March 31, | March 31, | Percent | ||||||||
2019 | 2018 | Change | ||||||||
Total Miles ¹ | 18,757 | 20,072 | (6.6 | )% | ||||||
Empty Miles Percentage | 7.9 | % | 9.7 | % | (18.6 | ) | ||||
Tractors (avg) | 306 | 335 | (8.7 | ) | ||||||
Miles per tractor per week 2 | 1,932 | 2,229 | (13.3 | ) | ||||||
Revenue per mile | $ | 2.33 | $ | 2.19 | 6.4 | |||||
Cost per mile | $ | 1.86 | $ | 1.81 | 2.8 | % | ||||
¹ In thousands | ||||||||||
2 Calculated using Company-employed driver and owner-operator miles |
Pool Distribution Segment Information | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended | ||||||||||||||||||||
March 31, | Percent of | March 31, | Percent of | Percent | ||||||||||||||||
2019 | Revenue | 2018 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | 45.2 | 100.0 | % | $ | 42.7 | 100.0 | % | $ | 2.5 | 5.9 | % | ||||||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | 13.4 | 29.6 | 12.1 | 28.3 | 1.3 | 10.7 | ||||||||||||||
Salaries, wages and employee benefits | 16.7 | 36.9 | 15.9 | 37.2 | 0.8 | 5.0 | ||||||||||||||
Operating leases | 4.3 | 9.5 | 3.7 | 8.7 | 0.6 | 16.2 | ||||||||||||||
Depreciation and amortization | 1.6 | 3.5 | 1.8 | 4.2 | (0.2 | ) | (11.1 | ) | ||||||||||||
Insurance and claims | 1.2 | 2.7 | 0.9 | 2.1 | 0.3 | 33.3 | ||||||||||||||
Fuel expense | 1.5 | 3.3 | 1.6 | 3.8 | (0.1 | ) | (6.3 | ) | ||||||||||||
Other operating expenses | 5.2 | 11.5 | 5.3 | 12.4 | (0.1 | ) | (1.9 | ) | ||||||||||||
Total operating expenses | 43.9 | 97.1 | 41.3 | 96.7 | 2.6 | 6.3 | ||||||||||||||
Income from operations | $ | 1.3 | 2.9 | % | $ | 1.4 | 3.3 | % | $ | (0.1 | ) | (7.1 | )% |
Pool Operating Statistics | ||||||||||
Three months ended | ||||||||||
March 31, | March 31, | Percent | ||||||||
2019 | 2018 | Change | ||||||||
Cartons ¹ | 22,316 | 20,223 | 10.3 | % | ||||||
Revenue per carton | $ | 2.02 | $ | 2.11 | (4.3 | ) | ||||
Terminals | 28 | 28 | — | % | ||||||
¹ In thousands |
Forward Air Corporation | |||||||
Consolidated Balance Sheets | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
March 31, 2019 | December 31, 2018 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 42,165 | $ | 25,657 | |||
Accounts receivable, net | 150,623 | 156,359 | |||||
Other current assets | 9,283 | 19,066 | |||||
Total current assets | 202,071 | 201,082 | |||||
Property and equipment | 417,606 | 413,900 | |||||
Less accumulated depreciation and amortization | 210,750 | 204,005 | |||||
Total property and equipment, net | 206,856 | 209,895 | |||||
Operating lease right-of-use assets | 133,361 | — | |||||
Goodwill and other acquired intangibles: | |||||||
Goodwill | 199,092 | 199,092 | |||||
Other acquired intangibles, net of accumulated amortization | 111,150 | 113,661 | |||||
Total goodwill and other acquired intangibles, net | 310,242 | 312,753 | |||||
Other assets | 33,047 | 36,485 | |||||
Total assets | $ | 885,577 | $ | 760,215 | |||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 31,124 | $ | 34,630 | |||
Accrued expenses | 41,434 | 39,784 | |||||
Current portion of debt and finance lease obligations | 264 | 309 | |||||
Current portion of operating lease obligations | 43,824 | — | |||||
Total current liabilities | 116,646 | 74,723 | |||||
Debt and finance lease obligations, less current portion | 47,312 | 47,335 | |||||
Operating lease obligations, less current portion | 89,915 | — | |||||
Other long-term liabilities | 40,257 | 47,739 | |||||
Deferred income taxes | 38,010 | 37,174 | |||||
Shareholders’ equity: | |||||||
Common stock | 284 | 285 | |||||
Additional paid-in capital | 214,173 | 210,296 | |||||
Retained earnings | 338,980 | 342,663 | |||||
Total shareholders’ equity | 553,437 | 553,244 | |||||
Total liabilities and shareholders’ equity | $ | 885,577 | $ | 760,215 |
Forward Air Corporation | |||||||
Consolidated Statements of Cash Flows | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
Three months ended | |||||||
March 31, 2019 | March 31, 2018 | ||||||
Operating activities: | |||||||
Net income | $ | 18,407 | $ | 17,741 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | 10,827 | 10,690 | |||||
Share-based compensation | 3,047 | 2,261 | |||||
(Gain) loss on disposal of property and equipment | (61 | ) | 82 | ||||
Provision for loss on receivables | 629 | 134 | |||||
Provision for revenue adjustments | 540 | 817 | |||||
Deferred income tax expense | 836 | 3,713 | |||||
Changes in operating assets and liabilities | |||||||
Accounts receivable | 4,567 | 805 | |||||
Prepaid expenses and other current assets | 2,699 | 2,715 | |||||
Income taxes | 4,631 | 1,768 | |||||
Accounts payable and accrued expenses | (4,596 | ) | 87 | ||||
Net cash provided by operating activities | 41,526 | 40,813 | |||||
Investing activities: | |||||||
Proceeds from disposal of property and equipment | 407 | 644 | |||||
Purchases of property and equipment | (4,090 | ) | (6,221 | ) | |||
Other | (6 | ) | (91 | ) | |||
Net cash used in investing activities | (3,689 | ) | (5,668 | ) | |||
Financing activities: | |||||||
Payments of finance lease obligations | (68 | ) | (74 | ) | |||
Proceeds from exercise of stock options | 830 | — | |||||
Payments of cash dividends | (5,189 | ) | (4,413 | ) | |||
Repurchase of common stock (repurchase program) | (14,181 | ) | (19,993 | ) | |||
Cash settlement of share-based awards for tax withholdings | (2,721 | ) | (1,823 | ) | |||
Net cash used in financing activities | (21,329 | ) | (26,303 | ) | |||
Net increase in cash | 16,508 | 8,842 | |||||
Cash at beginning of period | 25,657 | 3,893 | |||||
Cash at end of period | $ | 42,165 | $ | 12,735 |
Forward Air Corporation | |||||||
Reconciliation to U.S. GAAP | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
Three months ended | |||||||
March 31, 2019 | March 31, 2018 | ||||||
Net income | $ | 18,407 | $ | 17,741 | |||
Interest expense | 575 | 371 | |||||
Income tax expense | 5,751 | 6,123 | |||||
Depreciation and amortization | 10,827 | 10,690 | |||||
EBITDA | $ | 35,560 | $ | 34,925 | |||
Three months ended | |||||||
March 31, 2019 | March 31, 2018 | ||||||
Net cash provided by operating activities | $ | 41,526 | $ | 40,813 | |||
Proceeds from disposal of property and equipment | 407 | 644 | |||||
Purchases of property and equipment | (4,090 | ) | (6,221 | ) | |||
Free cash flow | $ | 37,843 | $ | 35,236 |
Forward Air Corporation | |||
Additional Guidance Data | |||
(In thousands, except per share data) | |||
(Unaudited) | |||
Three months ended | |||
Actual | March 31, 2019 | ||
Net income | $ | 18,407 | |
Income allocated to participating securities | (208 | ) | |
Numerator for diluted income per share - net income | $ | 18,199 | |
Fully diluted share count | 28,648 | ||
Diluted earnings per share | $ | 0.64 | |
Projected | Full year 2019 | ||
Projected tax rate | 25.5 | % | |
Projected capital expenditures, net | $ | 34,000 | |
Projected | December 31, 2019 | ||
Projected year end fully diluted share count | 28,100 | ||