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NEWS RELEASE

FORWARD AIR CORPORATION REPORTS THIRD QUARTER 2019 RESULTS
Reports record third quarter financial results, including revenue,
operating income, earnings per share and EBITDA

Reports record year-to-date financial results, including revenue,
earnings per share, cash from operating activities and free cash flow

GREENEVILLE, Tenn.- (BUSINESS WIRE) - October 24, 2019 - Forward Air Corporation (NASDAQ:FWRD) today reported financial results for the three and nine months ended September 30, 2019.
Revenue for the three months ended September 30, 2019 increased 9.1% to $361.7 million from $331.4 million for the same period of 2018. Income from operations was $30.7 million compared to $29.9 million in the prior year period. Net income during the three months ended September 30, 2019 was $22.2 million compared to $22.3 million in the same period of 2018. Net income per diluted share for the three months ended September 30, 2019 was $0.78 compared to $0.76 in the prior year period.
Revenue for the nine months ended September 30, 2019 increased 6.7% to $1,028.9 million from $964.3 million for the same period of 2018. Income from operations was $86.0 million compared to $87.0 million in the prior year period. Net income during the nine months ended September 30, 2019 was $62.9 million compared to $64.4 million for the same period of 2018. Net income per diluted share for the nine months ended September 30, 2019 was $2.19 compared to $2.18 for the same period of 2018.
For the three months ended September 30, 2019, the Company generated $46.0 million of cash flow from operations compared to $46.9 million for the same period in 2018. For the nine months ended September 30, 2019, the Company generated $117.7 million of cash flow from operations compared to $113.8 million for the same period of 2018.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") was $41.2 million for the three months ended September 30, 2019 compared to $40.2 million for the same period of 2018. Free cash flow was $36.3 million for the three months ended September 30, 2019 compared to $31.3 million in the prior year period.
EBITDA was $118.0 million for the nine months ended September 30, 2019 compared to $118.3 million for the same period of 2018. Free cash flow was $92.7 million for the nine months ended September 30, 2019 compared to $85.5 million in the prior year period.
EBITDA and free cash flow are non-GAAP financial measures and reconciliations of these non-GAAP financial measures are provided in the attached financial tables.
Tom Schmitt, Chairman, President and CEO, commenting on third quarter results said, “Our growth strategies drove our record third quarter results.  Consolidated revenues grew 9.1% while consolidated operating income grew 10.1% before considering the net impact of a $2.5 million increased vehicle reserve recorded during the quarter.”
Commenting on the Company’s third quarter results, Michael J. Morris, CFO, said, “Our third quarter earnings per share of $0.78 was at the high end of our guidance range, and reflected a $0.06 per share net impact of an increased vehicular reserve for unfavorable development of claims previously disclosed on June 21, 2019.”  Regarding the Company’s fourth quarter 2019 guidance, Mr. Morris said, “We expect fourth quarter year-on-year revenue growth to

1



be 6% to 10% and net income per diluted share to be between $0.90 and $0.94 in the fourth quarter of 2019. This compares to $0.95 in the fourth quarter of 2018, which benefited from a low book tax rate of 20.0%.”
On October 22, 2019, our Board of Directors declared a quarterly cash dividend of $0.18 per share of common stock.  The dividend is payable to shareholders of record at the close of business on November 21, 2019 and is expected to be paid on December 6, 2019.
This quarterly dividend is made pursuant to a cash dividend policy approved by the Board of Directors, which anticipates a total annual dividend of $0.72 for the full year 2019, payable in quarterly increments of $0.18 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 and position.


Review of Financial Results

Forward Air will hold a conference call to discuss third quarter 2019 results on Friday, October 25, 2019 at 9:00 a.m. EDT. The Company’s conference call will be available online on the Investor Relations portion of the Company’s website at www.forwardaircorp.com, where investors can easily find or navigate to pertinent information about us, or by dialing (800) 230-1059. A replay of the conference call will be available on the Investor Relations portion of the Company’s website at www.forwardaircorp.com beginning shortly after completion of the live call.

About Forward Air Corporation
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, final mile solutions and customs brokerage by utilizing a comprehensive national network of terminals); 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); Truckload Premium Services (provides expedited truckload brokerage, dedicated fleet services, as well as high-security and temperature-controlled logistics 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.

2


Forward Air Corporation
Consolidated Statements of Comprehensive Income
(In thousands, except per share data)
(Unaudited)
 
 
 
 
 
 
 
 
 
Three months ended
 
Nine months ended
 
September 30,
2019
 
September 30,
2018
 
September 30,
2019
 
September 30,
2018
Operating revenue:
 
 
 
 

 
 
Expedited LTL
$
210,060

 
$
188,507

 
$
594,336

 
$
551,342

Intermodal
58,347

 
50,545

 
163,000

 
148,275

Truckload Premium Services
45,458

 
47,942

 
137,239

 
142,982

Pool Distribution
50,962

 
47,280

 
141,952

 
133,256

Eliminations and other operations
(3,164
)
 
(2,899
)
 
(7,636
)
 
(11,530
)
Operating revenue
361,663

 
331,375

 
1,028,891

 
964,325

 
 
 
 
 
 
 
 
Operating expenses:
 

 
 

 
 

 
 

Purchased transportation
163,606

 
155,451

 
462,744

 
450,833

Salaries, wages and employee benefits
87,259

 
76,028

 
243,899

 
217,682

Operating leases
20,521

 
18,671

 
60,021

 
54,640

Depreciation and amortization
10,528

 
10,295

 
32,036

 
31,346

Insurance and claims
10,930

 
9,203

 
33,531

 
26,442

Fuel expense
6,105

 
5,634

 
17,642

 
16,786

Other operating expenses
32,025

 
26,214

 
93,045

 
79,612

Total operating expenses
330,974

 
301,496

 
942,918

 
877,341

Income (loss) from operations:
 
 
 
 
 
 
 
Expedited LTL
25,896

 
23,724

 
72,332

 
71,023

Intermodal
6,900

 
7,321

 
18,326

 
16,333

Truckload Premium Services
606

 
1,673

 
2,137

 
3,348

Pool Distribution
1,867

 
735

 
4,685

 
3,695

Other operations
(4,580
)
 
(3,574
)
 
(11,507
)
 
(7,415
)
Income from operations
30,689

 
29,879

 
85,973

 
86,984

 
 
 
 
 
 
 
 
Other expense:
 

 
 

 
 

 
 

Interest expense
(761
)
 
(472
)
 
(1,916
)
 
(1,327
)
Other, net
1

 
(1
)
 
(1
)
 
(2
)
Total other expense
(760
)
 
(473
)
 
(1,917
)
 
(1,329
)
Income before income taxes
29,929

 
29,406

 
84,056

 
85,655

Income tax expense
7,734

 
7,077

 
21,124

 
21,289

Net income and comprehensive income
$
22,195

 
$
22,329

 
$
62,932

 
$
64,366

 
 
 
 
 
 
 
 
Net income per share:
 

 
 

 
 

 
 

Basic
$
0.78

 
$
0.76

 
$
2.20

 
$
2.18

Diluted
$
0.78

 
$
0.76

 
$
2.19

 
$
2.18

 
 
 
 
 
 
 
 
Dividends per share:
$
0.18

 
$
0.15

 
$
0.54

 
$
0.45



3


Expedited LTL Segment Information
(In millions)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
September 30,
 
Percent of
 
September 30,
 
Percent of
 
 
 
Percent
 
2019
 
Revenue
 
2018
 
Revenue
 
Change
 
Change
Operating revenue
$
210.1

 
100.0
%
 
$
188.5

 
100.0
%
 
$
21.6

 
11.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses:

 
 
 
 
 
 
 
 
 
 
Purchased transportation
95.5

 
45.5

 
88.6

 
47.0

 
6.9

 
7.8

Salaries, wages and employee benefits
47.9


22.8


41.6


22.1


6.3


15.1

Operating leases
11.1


5.3


10.3


5.5


0.8


7.8

Depreciation and amortization
5.2

 
2.5

 
5.6

 
3.0

 
(0.4
)
 
(7.1
)
Insurance and claims
4.0

 
1.9

 
3.9

 
2.1

 
0.1

 
2.6

Fuel expense
1.8

 
0.9

 
1.6

 
0.8

 
0.2

 
12.5

Other operating expenses
18.7

 
8.9

 
13.2

 
7.0

 
5.5

 
41.7

Total operating expenses
184.2

 
87.7

 
164.8

 
87.4

 
19.4

 
11.8

Income from operations
$
25.9

 
12.3
%
 
$
23.7

 
12.6
%
 
$
2.2

 
9.3
 %
Expedited LTL Operating Statistics
 
 
 
 
 
 
 
Three months ended
 
September 30,
 
September 30,
 
Percent
 
2019
 
2018
 
Change
 
 
 
 
 
 
Business days
64

 
63

 
1.6
 %
 
 
 
 
 
 
Tonnage
 
 
 
 
 
    Total pounds ¹
613,812

 
636,831

 
(3.6
)
    Pounds per day ¹
9,591

 
10,108

 
(5.1
)
 
 
 
 
 
 
Shipments
 
 
 
 
 
    Total shipments ¹
977

 
1,003

 
(2.6
)
    Shipments per day ¹
15.3

 
15.9

 
(4.1
)
 
 
 
 
 
 
Weight per shipment
628

 
635

 
(1.1
)
 
 
 
 
 
 
Revenue per hundredweight
$
27.65

 
$
26.56

 
4.1

Revenue per hundredweight, ex fuel
23.23

 
22.31

 
4.1

 
 
 
 
 
 
Revenue per shipment
$
176

 
$
171

 
2.9

Revenue per shipment, ex fuel
148

 
144

 
2.8

 
 
 
 
 
 
Network revenue from door-to-door shipments as a percentage of network revenue 2,3
40.7
%
 
35.3
%
 
15.3
 %
 
 
 
 
 
 
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

4


Intermodal Segment Information
(In millions)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
September 30,
 
Percent of
 
September 30,
 
Percent of
 
 
 
Percent
 
2019
 
Revenue
 
2018
 
Revenue
 
Change
 
Change
Operating revenue
$
58.3

 
100.0
%
 
$
50.5

 
100.0
%
 
$
7.8

 
15.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses:

 
 
 

 
 
 
 
 
 
Purchased transportation
21.0

 
36.0

 
19.3

 
38.2

 
1.7

 
8.8

Salaries, wages and employee benefits
14.2

 
24.4

 
10.9

 
21.6

 
3.3

 
30.3

Operating leases
4.3

 
7.4

 
4.0

 
7.9

 
0.3

 
7.5

Depreciation and amortization
2.6

 
4.5

 
1.5

 
3.0

 
1.1

 
73.3

Insurance and claims
1.8

 
3.1

 
1.4

 
2.8

 
0.4

 
28.6

Fuel expense
2.2

 
3.8

 
1.6

 
3.2

 
0.6

 
37.5

Other operating expenses
5.3

 
9.1

 
4.5

 
8.9

 
0.8

 
17.8

Total operating expenses
51.4

 
88.2

 
43.2

 
85.5

 
8.2

 
19.0

Income from operations
$
6.9

 
11.8
%
 
$
7.3

 
14.5
%
 
$
(0.4
)
 
(5.5
)%

Intermodal Operating Statistics
 
 
 
Three months ended
 
September 30,
 
September 30,
 
Percent
 
2019
 
2018
 
Change
 
 
 
 
 
 
Drayage shipments
84,230

 
75,981

 
10.9
%
Drayage revenue per shipment
$
597

 
$
574

 
4.0

Number of locations
21

 
19

 
10.5
%


5


Truckload Premium Services Segment Information
(In millions)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
September 30,
 
Percent of
 
September 30,
 
Percent of
 
 
 
Percent
 
2019
 
Revenue
 
2018
 
Revenue
 
Change
 
Change
Operating revenue
$
45.5

 
100.0
%
 
$
47.9

 
100.0
%
 
$
(2.4
)
 
(5.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses:

 
 
 
 
 
 
 
 
 
 
Purchased transportation
34.5

 
75.8

 
35.8

 
74.7

 
(1.3
)
 
(3.6
)
Salaries, wages and employee benefits
4.3

 
9.5

 
4.7

 
9.8

 
(0.4
)
 
(8.5
)
Operating leases
0.4

 
0.9

 
0.1

 
0.2

 
0.3

 
300.0

Depreciation and amortization
1.2

 
2.6

 
1.5

 
3.1

 
(0.3
)
 
(20.0
)
Insurance and claims
1.3

 
2.9

 
1.2


2.5

 
0.1

 
8.3

Fuel expense
0.7

 
1.5

 
0.7

 
1.5

 

 

Other operating expenses
2.5

 
5.5

 
2.2

 
4.6

 
0.3

 
13.6

Total operating expenses
44.9

 
98.7

 
46.2

 
96.5

 
(1.3
)
 
(2.8
)
Income from operations
$
0.6

 
1.3
%
 
$
1.7

 
3.5
%
 
$
(1.1
)
 
(64.7
)%

Truckload Premium Services Operating Statistics
 
 
 
Three months ended
 
September 30,
 
September 30,
 
Percent
 
2019
 
2018
 
Change


 

 

Total Miles ¹
19,813

 
19,197

 
3.2
 %
Empty Miles Percentage
7.7
%
 
8.5
%
 
(9.4
)
Tractors (avg)
391

 
291

 
34.4

Miles per tractor per week 2
2,006

 
2,317

 
(13.4
)


 

 

Revenue per mile
$
2.21

 
$
2.37

 
(6.8
)
Cost per mile
$
1.79

 
$
1.88

 
(4.8
)%


 

 

¹ In thousands

 

 

2 Calculated using Company-employed driver and owner-operator miles


6


Pool Distribution Segment Information
(In millions)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
September 30,
 
Percent of
 
September 30,
 
Percent of
 
 
 
Percent
 
2019
 
Revenue
 
2018
 
Revenue
 
Change
 
Change
Operating revenue
$
51.0

 
100.0
%
 
$
47.3

 
100.0
%
 
$
3.7

 
7.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses:

 
 
 

 
 
 
 
 
 
Purchased transportation
15.5

 
30.4

 
14.3

 
30.2

 
1.2

 
8.4

Salaries, wages and employee benefits
19.0

 
37.3

 
17.5

 
37.0

 
1.5

 
8.6

Operating leases
4.7

 
9.2

 
4.2

 
8.9

 
0.5

 
11.9

Depreciation and amortization
1.5

 
2.9

 
1.7

 
3.6

 
(0.2
)
 
(11.8
)
Insurance and claims
1.3

 
2.5

 
1.3

 
2.7

 

 

Fuel expense
1.5

 
2.9

 
1.6

 
3.4

 
(0.1
)
 
(6.3
)
Other operating expenses
5.6

 
11.0

 
6.0

 
12.7

 
(0.4
)
 
(6.7
)
Total operating expenses
49.1

 
96.3

 
46.6

 
98.5

 
2.5

 
5.4

Income from operations
$
1.9

 
3.7
%
 
$
0.7

 
1.5
%
 
$
1.2

 
171.4
 %

Pool Operating Statistics
 
 
 
Three months ended
 
September 30,
 
September 30,
 
Percent
 
2019
 
2018
 
Change
 
 
 
 
 
 
Cartons ¹
25,692

 
22,218

 
15.6
 %
Revenue per carton
$
1.98

 
$
2.13

 
(7.0
)
Terminals
30

 
28

 
7.1
 %
 
 
 
 
 
 
¹ In thousands
 
 
 
 
 


7


Forward Air Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
September 30,
2019
 
December 31, 2018
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
34,824

 
$
25,657

Accounts receivable, net
157,494

 
156,359

Other current assets
23,393

 
19,066

Total current assets
215,711

 
201,082

 
 
 
 
Property and equipment
438,656

 
413,900

Less accumulated depreciation and amortization
217,813

 
204,005

Total property and equipment, net
220,843

 
209,895

Operating lease right-of-use assets
158,977

 

Goodwill and other acquired intangibles:
 

 
 

Goodwill
220,423

 
199,092

Other acquired intangibles, net of accumulated amortization
130,038

 
113,661

Total goodwill and other acquired intangibles, net
350,461

 
312,753

Other assets
34,641

 
36,485

Total assets
$
980,633

 
$
760,215

 
 
 
 
Liabilities and Shareholders’ Equity
 

 
 

Current liabilities:
 

 
 

Accounts payable
$
32,599

 
$
34,630

Accrued expenses
51,412

 
39,784

Other current liabilities
7,049

 

Current portion of debt and finance lease obligations
1,578

 
309

Current portion of operating lease obligations
47,137

 

Total current liabilities
139,775

 
74,723

 
 
 
 
Debt and finance lease obligations, less current portion
72,738

 
47,335

Operating lease obligations, less current portion
112,553

 

Other long-term liabilities
51,316

 
47,739

Deferred income taxes
43,106

 
37,174

 
 

 
 

Shareholders’ equity:
 

 
 

Common stock
279

 
285

Additional paid-in capital
221,629

 
210,296

Retained earnings
339,237

 
342,663

Total shareholders’ equity
561,145

 
553,244

Total liabilities and shareholders’ equity
$
980,633

 
$
760,215



8


Forward Air Corporation
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
 
 
Three months ended

September 30, 2019
 
September 30, 2018
Operating activities:

 

Net income
$
22,195

 
$
22,329

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


Depreciation and amortization
10,528

 
10,295

Change in fair value of earn-out liability
890

 
(455
)
Share-based compensation
2,762

 
2,847

Loss on disposal of property and equipment, net
1,098

 
120

Provision for loss (recovery) on receivables
197

 
(509
)
Provision for revenue adjustments
963

 
1,092

Deferred income tax expense
2,653

 
2,182

Changes in operating assets and liabilities


 


Accounts receivable
(3,939
)
 
3,345

Prepaid expenses and other current assets
511

 
(1,241
)
Income taxes
(374
)
 
(1,765
)
Accounts payable and accrued expenses
8,483

 
8,615

Net cash provided by operating activities
45,967

 
46,855




 


Investing activities:


 


Proceeds from disposal of property and equipment
829

 
1,150

Purchases of property and equipment
(10,504
)
 
(16,738
)
Acquisition of business, net of cash acquired
(12,000
)
 
(3,737
)
Other

 
(9
)
Net cash used in investing activities
(21,675
)
 
(19,334
)



 


Financing activities:


 


Payments of finance lease obligations
(391
)
 
(77
)
Proceeds from senior credit facility
10,000

 

Proceeds from exercise of stock options
785

 
2,570

Payments of cash dividends
(5,088
)
 
(4,385
)
Repurchase of common stock (repurchase program)
(9,289
)
 
(16,820
)
Cash settlement of share-based awards for tax withholdings
(262
)
 

Net cash used in financing activities
(4,245
)
 
(18,712
)
Net increase in cash
20,047

 
8,809

Cash at beginning of period
14,777

 
20,102

Cash at end of period
$
34,824

 
$
28,911



9


Forward Air Corporation
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
 
 
Nine months ended
 
September 30, 2019
 
September 30, 2018
Operating activities:
 
 
 
Net income
$
62,932

 
$
64,366

Adjustments to reconcile net income to net cash provided by operating activities
 
 
 
Depreciation and amortization
32,036

 
31,346

Change in fair value of earn-out liability
890

 
(455
)
Share-based compensation
9,006

 
7,525

Loss (gain) on disposal of property and equipment, net
1,010

 
(14
)
Provision for loss (recovery) on receivables
828

 
(52
)
Provision for revenue adjustments
2,243

 
2,921

Deferred income tax expense
5,931

 
6,676

Changes in operating assets and liabilities
 
 
 
Accounts receivable
(4,206
)
 
(3,386
)
Prepaid expenses and other current assets
(4,473
)
 
(4,880
)
Income taxes
(2,556
)
 
(3,193
)
Accounts payable and accrued expenses
14,090

 
12,991

Net cash provided by operating activities
117,731

 
113,845

 
 
 
 
Investing activities:
 
 
 
Proceeds from disposal of property and equipment
2,101

 
5,989

Purchases of property and equipment
(27,102
)
 
(34,344
)
Acquisition of business, net of cash acquired
(39,000
)
 
(3,737
)
Other

 
(356
)
Net cash used in investing activities
(64,001
)
 
(32,448
)
 
 
 
 
Financing activities:
 
 
 
Payments of finance lease obligations
(528
)
 
(228
)
Proceeds from senior credit facility
20,000

 

Proceeds from exercise of stock options
2,063

 
3,682

Payments of cash dividends
(15,421
)
 
(13,213
)
Repurchase of common stock (repurchase program)
(47,906
)
 
(44,985
)
Proceeds from common stock issued under employee stock purchase plan
261

 
237

Cash settlement of share-based awards for tax withholdings
(3,032
)
 
(1,872
)
Net cash used in financing activities
(44,563
)
 
(56,379
)
Net increase in cash
9,167

 
25,018

Cash at beginning of period
25,657

 
3,893

Cash at end of period
$
34,824

 
$
28,911



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Forward Air Corporation Reconciliation of U.S. GAAP and Non-GAAP Financial Measures

The Company reports its financial results in accordance with GAAP (also referred to herein as “reported”). However, the Company also uses “non-GAAP financial measures” that are derived on the basis of methodologies other than in accordance with GAAP. Specifically, the Company believes that meaningful analysis of its financial performance in 2019 and 2018 requires an understanding of the factors underlying that performance, including an understanding of items that are non-operational. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the Company’s performance.

This press release contains the following non-GAAP financial measures on a consolidated basis: earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the three and nine months ended September 30, 2019 and 2018; operating income growth before considering the net impact of increased vehicle reserve for the three months ended September 30, 2019; and free cash flow for the three and nine months ended September 30, 2019 and 2018. The Company believes that including these items will assist investors in understanding its core operating performance and allow for more accurate comparisons of results, as they eliminate the impact of investing activities.

The Company believes that EBITDA improves comparability from period to period by removing the impact of its capital structure (interest and financing expenses), asset base (depreciation and amortization), tax impacts and other adjustments as set out in the attached tables. The Company believes that excluding the increased vehicle reserve is useful to investors because it provides a view of the Company's operating income excluding the effects of a significant non-operation cost. The Company believes that free cash flow is an important measure of its ability to repay maturing debt or fund other uses of capital that it believes will enhance stockholder value.

Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP. Non-GAAP financial information does not represent a comprehensive basis of accounting. As required by the Securities and Exchange Act of 1933 and the rules and regulations promulgated thereunder, the tables below present, for the periods indicated, a reconciliation of the Company's presented non-GAAP financial measures to the most directly comparable GAAP financial measures.



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Forward Air Corporation
Reconciliation to U.S. GAAP
(In thousands)
(Unaudited)
 
 
 
 
 
Three months ended
 
Nine months ended
 
September 30, 2019

September 30, 2018
 
September 30, 2019
 
September 30, 2018
Net income
$
22,195

 
$
22,329

 
$
62,932

 
$
64,366

Interest expense and other, net
760

 
473

 
1,917

 
1,329

Income tax expense
7,734

 
7,077

 
21,124

 
21,289

Depreciation and amortization
10,528

 
10,295

 
32,036

 
31,346

EBITDA
$
41,217

 
$
40,174

 
$
118,009

 
$
118,330

 
 
 
 
 
 
 
 
 
Three months ended
 
Nine months ended
 
September 30, 2019

September 30, 2018
 
September 30, 2019
 
September 30, 2018
Net cash provided by operating activities
$
45,967

 
$
46,855

 
$
117,731

 
$
113,845

Proceeds from disposal of property and equipment
829

 
1,150

 
2,101

 
5,989

Purchases of property and equipment
(10,504
)
 
(16,738
)
 
(27,102
)
 
(34,344
)
Free cash flow
$
36,292

 
$
31,267

 
$
92,730

 
$
85,490





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The following table summarizes supplemental guidance information that management believes to be useful.

Forward Air Corporation
Additional Guidance Data
(In thousands, except per share data)
(Unaudited)
 
 
 
Three months ended
Actual
September 30, 2019
Net income
$
22,195

Income allocated to participating securities
(236
)
Numerator for diluted income per share - net income
$
21,959

 
 
Fully diluted share count
28,082

Diluted earnings per share
$
0.78

 
 
 
 
Projected
Full year 2019
Projected tax rate
25.5
%
 
 
Projected capital expenditures, net
$
30,500

 
 
Projected
December 31, 2019
Projected year end fully diluted share count
28,100

 
 


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Note Regarding Forward-Looking Statements

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 fourth quarter 2019 financial growth, including revenue growth and net income per diluted shares, full year 2019 projected tax rate, share count, capital expenditures and the declaration of dividends.

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, 2018.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

SOURCE: Forward Air Corporation

Forward Air Corporation
Michael J. Morris, 404-362-8933
mmorris@forwardair.com


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