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NEWS RELEASE

FORWARD AIR CORPORATION REPORTS FOURTH QUARTER 2019 RESULTS

Reports record fourth quarter and full year revenue,
cash flow from operations and free cash flow

Creates new Expedited Freight segment to reflect continued integration of
the Company’s Expedited LTL, Truckload and Final Mile operations

GREENEVILLE, Tenn.- (BUSINESS WIRE) - February 6, 2020 - Forward Air Corporation (NASDAQ:FWRD) today reported financial results for the three and twelve months ended December 31, 2019.

Revenue for the three months ended December 31, 2019 increased 7.0% to $381.5 million from $356.6 million for the same period of 2018. Income from operations was $32.9 million compared to $35.0 million in the prior year period. Net income during the three months ended December 31, 2019 was $24.2 million compared to $27.7 million in the same period of 2018. Net income per diluted share for the three months ended December 31, 2019 was $0.85 compared to $0.95 in the same period of 2018.
Revenue for the year ended December 31, 2019 increased 6.8% to $1,410.4 million from $1,320.9 million for the same period in 2018. Income from operations was $118.8 million compared to $122.0 million in the prior year. Net income during the period was $87.1 million compared to $92.1 million in the same period of 2018. Net income per diluted share was $3.04 for the year ended December 31, 2019 compared to $3.12 in the same period of 2018.
For the three months ended December 31, 2019, the Company generated $43.7 million of cash flow from operations compared to $38.7 million for the same period of 2018. For the year ended December 31, 2019, the Company generated $161.5 million of cash flow from operations compared to $152.6 million for the same period of 2018.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") was $42.9 million for the three months ended December 31, 2019 compared to $45.9 million for the same period of 2018. Free cash flow was $41.4 million for the three months ended December 31, 2019 compared to $31.8 million for the same period of 2018.

EBITDA was $160.9 million for the year ended December 31, 2019 compared to $164.2 million for the same period of 2018. Free cash flow was $134.1 million for the year ended December 31, 2019 compared to $117.3 million in the same period of 2018.

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 fourth quarter results said, “Our growth strategies drove our record fourth quarter revenue. Macro headwinds amid a loose truckload market impacted our results. As we continue to on-board new revenue with precision execution we are well positioned for a pick-up in quality freight volumes.” 

In closing, Mr. Schmitt said, “As we end 2019, I would like to thank all of our employees and independent contractors who are helping us grow and strengthen our businesses and core support processes. The results of our efforts will show for many years to come.”

Michael J. Morris, CFO, commenting on the new Expedited Freight segment said, “Our new Expedited Freight segment consolidates the previous Truckload Premium Services segment into the previous Expedited LTL segment, which included Final Mile.  Since this consolidation results in a new segment with higher revenues and lower margins than

1


the previous Expedited LTL segment, we have enhanced our Expedited Freight disclosures to provide revenue and gross margin data for the financial statement user.”

Regarding the Company’s fourth quarter 2019 results, Mr. Morris said, “While our business units generated good growth, our fourth quarter earnings per share fell short of our $0.90 to $0.94 guidance range, driven by a soft macro environment that impacted our entire portfolio.”

Regarding the Company’s first quarter 2020 guidance, Mr. Morris said, “We expect significant Final Mile revenue growth following the January 12th closing of our previously announced Linn Star acquisition, which we expect will drive consolidated first quarter year-on-year revenue growth of 13% to 17%. We expect net income per diluted share to be between $0.58 and $0.62 in the first quarter of 2020, reflecting continued headwinds from a soft macro environment as well as higher insurance-related costs. This compares to $0.64 in the first quarter of 2020.”

On February 4, 2020, 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 March 5, 2020 and is expected to be paid on March 20, 2020.

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 2020, 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.

Review of Financial Results

Forward Air will hold a conference call to discuss fourth quarter 2019 results on Friday, February 7, 2020 at 9:00 a.m. EST. 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 (844) 767-5679, Access Code: 2062222. 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 three business segments: Expedited Freight (provides expedited regional, inter-regional and national LTL services, including local pick-up and delivery, final mile, truckload, shipment consolidation and deconsolidation, warehousing, customs brokerage and other handling); 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.


2


Forward Air Corporation
Consolidated Statements of Comprehensive Income
(In thousands, except per share data)
(Unaudited)
 
 
 
 
 
Three months ended
 
Year ended
 
December 31,
2019
 
December 31,
2018
 
December 31,
2019
 
December 31,
2018
 
 
 
(As Adjusted)
 
 
 
(As Adjusted)
Operating revenue:
 
 
 
 
 
 
 
Expedited Freight
$
262,292

 
$
244,515

 
$
988,757

 
$
931,124

Intermodal
54,710

 
52,730

 
217,711

 
201,006

Pool Distribution
65,436

 
60,861

 
207,389

 
194,117

Eliminations and other operations
(934
)
 
(1,545
)
 
(3,462
)
 
(5,361
)
Operating revenue
381,504

 
356,561

 
1,410,395

 
1,320,886

 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
Purchased transportation
176,263

 
162,804

 
639,007

 
613,636

Salaries, wages and employee benefits
91,264

 
82,548

 
335,163

 
300,230

Operating leases
21,988

 
21,036

 
82,010

 
75,677

Depreciation and amortization
10,073

 
10,837

 
42,109

 
42,183

Insurance and claims
11,909

 
8,738

 
45,440

 
35,180

Fuel expense
6,579

 
6,335

 
24,221

 
23,121

Other operating expenses
30,576

 
29,216

 
123,622

 
108,828

Total operating expenses
348,652

 
321,514

 
1,291,572

 
1,198,855

Income (loss) from operations
 
 
 
 
 
 
 
Expedited Freight
26,597

 
27,069

 
101,065

 
101,440

Intermodal
5,354

 
6,933

 
23,679

 
23,266

Pool Distribution
2,591

 
2,175

 
7,275

 
5,870

Other operations
(1,690
)
 
(1,130
)
 
(13,196
)
 
(8,545
)
Income from operations
32,852

 
35,047

 
118,823

 
122,031

 
 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
 
Interest expense
(795
)
 
(457
)
 
(2,711
)
 
(1,783
)
Other, net
(1
)
 
—

 
(1
)
 
(2
)
Total other expense
(796
)
 
(457
)
 
(2,712
)
 
(1,785
)
Income before income taxes
32,056

 
34,590

 
116,111

 
120,246

Income tax expense
7,888

 
6,906

 
29,012

 
28,195

Net income and comprehensive income
$
24,168

 
$
27,684

 
$
87,099

 
$
92,051

 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
Basic
$
0.86

 
$
0.95

 
$
3.06

 
$
3.14

Diluted
$
0.85

 
$
0.95

 
$
3.04

 
$
3.12

 
 
 
 
 
 
 
 
Dividends per share:
$
0.18

 
$
0.18

 
$
0.72

 
$
0.63




3


Expedited Freight Segment Information
(In millions)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
December 31,
 
Percent of
 
December 31,
 
Percent of
 
 
 
Percent
 
2019
 
Revenue
 
2018
 
Revenue
 
Change
 
Change
 
 
 
 
 
(As Adjusted)

 
 
 
 
 
 
Operating revenue:
 
 
 
 
 
 
 
 
 
 
 
Network 1
$
172.8

 
65.9
%
 
$
175.7

 
71.9
%
 
$
(2.9
)
 
(1.7
)%
Truckload
48.9

 
18.7

 
48.9

 
20.0

 
—

 
—

Final Mile
34.2

 
13.0

 
12.5

 
5.1

 
21.7

 
173.6

Other
6.4

 
2.4

 
7.4

 
3.0

 
(1.0
)
 
(13.5
)
Total operating revenue
262.3

 
100.0

 
244.5

 
100.0

 
17.8

 
7.3

 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Purchased transportation
138.5

 
52.8

 
125.7

 
51.4

 
12.8

 
10.2

Salaries, wages and employee benefits
51.8

 
19.7

 
47.9

 
19.6

 
3.9

 
8.1

Operating leases
12.0

 
4.6

 
11.1

 
4.5

 
0.9

 
8.1

Depreciation and amortization
6.2

 
2.4

 
7.4

 
3.0

 
(1.2
)
 
(16.2
)
Insurance and claims
6.5

 
2.5

 
5.0

 
2.0

 
1.5

 
30.0

Fuel expense
2.5

 
1.0

 
2.5

 
1.0

 
—

 
—

Other operating expenses
18.2

 
6.9

 
17.8

 
7.3

 
0.4

 
2.2

Total operating expenses
235.7

 
89.9

 
217.4

 
88.9

 
18.3

 
8.4

Income from operations
$
26.6

 
10.1
%
 
$
27.1

 
11.1
%
 
$
(0.5
)
 
(1.8
)%
 
 
 
 
 
 
 
 
 
 
 
 
1 Network revenue is comprised of all revenue, including linehaul, pickup and/or delivery, and fuel surcharge revenue, excluding accessorial, truckload and final mile revenue

4


Expedited Freight: LTL Operating Statistics
 
 
 
 
 
 
 
Three months ended
 
December 31,
 
December 31,
 
Percent
 
2019
 
2018
 
Change
 
 
 
(As Adjusted)
 
 
 
 
 
 
 
 
Business days
64

 
64

 
—
 %
 
 
 
 
 
 
Tonnage 1,2
 
 
 
 
 
    Total pounds
642,092

 
648,423

 
(1.0
)
    Pounds per day
10,033

 
10,132

 
(1.0
)
 
 
 
 
 
 
Shipments 1,2
 
 
 
 
 
    Total shipments
1,069

 
1,104

 
(3.2
)
    Shipments per day
16.7

 
17.3

 
(3.5
)
 
 
 
 
 
 
Weight per shipment
601

 
587

 
2.4

 
 
 
 
 
 
Revenue per hundredweight 3
$
27.02

 
$
26.81

 
0.8

Revenue per hundredweight, ex fuel 3
$
22.72

 
$
22.42

 
1.3

 
 
 
 
 
 
Revenue per shipment 3
$
164

 
$
160

 
2.5

Revenue per shipment, ex fuel 3
$
139

 
$
134

 
3.7

Network revenue from door-to-door shipments as a percentage of network revenue 3,4
41.1
%
 
35.6
%
 
15.4

Network gross margin 5
53.8
%
 
52.7
%
 
2.1
 %
 
 
 
 
 
 
1 In thousands
 
 
 
 
 
2 Excludes accessorial, full truckload and final mile products
3 Includes intercompany revenue between the Network and Truckload revenue streams
4 Door-to-door shipments include all shipments with a pickup and/or delivery
5 Network revenue less network purchased transportation as a percentage of network revenue



5


Intermodal Segment Information
(In millions)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
December 31,
 
Percent of
 
December 31,
 
Percent of
 
 
 
Percent
 
2019
 
Revenue
 
2018
 
Revenue
 
Change
 
Change
Operating revenue
$
54.7

 
100.0
%
 
$
52.7

 
100.0
%
 
$
2.0

 
3.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Purchased transportation
19.3

 
35.3

 
19.7

 
37.4

 
(0.4
)
 
(2.0
)
Salaries, wages and employee benefits
13.6

 
24.9

 
12.2

 
23.1

 
1.4

 
11.5

Operating leases
4.2

 
7.7

 
4.0

 
7.6

 
0.2

 
5.0

Depreciation and amortization
2.7

 
4.9

 
1.7

 
3.2

 
1.0

 
58.8

Insurance and claims
1.7

 
3.1

 
1.5

 
2.8

 
0.2

 
13.3

Fuel expense
2.1

 
3.8

 
1.7

 
3.2

 
0.4

 
23.5

Other operating expenses
5.8

 
10.6

 
5.0

 
9.5

 
0.8

 
16.0

Total operating expenses
49.4

 
90.3

 
45.8

 
86.9

 
3.6

 
7.9

Income from operations
$
5.3

 
9.7
%
 
$
6.9

 
13.1
%
 
$
(1.6
)
 
(23.2
)%

Intermodal Operating Statistics
 
 
 
Three months ended
 
December 31,
 
December 31,
 
Percent
 
2019
 
2018
 
Change
 
 
 
 
 
 
Drayage shipments
77,906

 
81,566

 
(4.5
)%
Drayage revenue per shipment
$
603

 
$
560

 
7.7

Number of locations
21

 
20

 
5.0
 %



6


Pool Distribution Segment Information
(In millions)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
December 31,
 
Percent of
 
December 31,
 
Percent of
 
 
 
Percent
 
2019
 
Revenue
 
2018
 
Revenue
 
Change
 
Change
Operating revenue
$
65.4

 
100.0
%
 
$
60.9

 
100.0
%
 
$
4.5

 
7.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Purchased transportation
19.0

 
29.1

 
18.5

 
30.4

 
0.5

 
2.7

Salaries, wages and employee benefits
26.2

 
40.1

 
22.2

 
36.5

 
4.0

 
18.0

Operating leases
5.8

 
8.9

 
6.0

 
9.9

 
(0.2
)
 
(3.3
)
Depreciation and amortization
1.3

 
2.0

 
1.7

 
2.8

 
(0.4
)
 
(23.5
)
Insurance and claims
2.2

 
3.4

 
1.4

 
2.3

 
0.8

 
57.1

Fuel expense
2.0

 
3.1

 
2.1

 
3.4

 
(0.1
)
 
(4.8
)
Other operating expenses
6.3

 
9.6

 
6.8

 
11.2

 
(0.5
)
 
(7.4
)
Total operating expenses
62.8

 
96.0

 
58.7

 
96.4

 
4.1

 
7.0

Income from operations
$
2.6

 
4.0
%
 
$
2.2

 
3.6
%
 
$
0.4

 
18.2
 %

Pool Operating Statistics
 
 
 
Three months ended
 
December 31,
 
December 31,
 
Percent
 
2019
 
2018
 
Change
 
 
 
 
 
 
Cartons ¹
33,563

 
30,435

 
10.3
 %
Revenue per carton
$
1.95

 
$
2.00

 
(2.5
)
Terminals
30

 
28

 
7.1
 %
 
 
 
 
 
 
¹ In thousands
 
 
 
 
 


7


Forward Air Corporation
Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
December 31,
2019
 
December 31,
 2018
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
64,749

 
$
25,657

Accounts receivable, net
150,197

 
156,359

Other current assets
21,372

 
19,066

Total current assets
236,318

 
201,082

 
 
 
 
Property and equipment
426,737

 
413,900

Less accumulated depreciation and amortization
213,706

 
204,005

Net property and equipment
213,031

 
209,895

Operating lease right-of-use assets
151,657

 
—

Goodwill and other acquired intangibles:
 

 
 

Goodwill
221,105

 
199,092

Other acquired intangibles, net of accumulated amortization
127,798

 
113,661

Total goodwill and other acquired intangibles, net
348,903

 
312,753

Other assets
40,969

 
36,485

Total assets
$
990,878

 
$
760,215

 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 

 
 

Current liabilities:
 

 
 

Accounts payable
$
29,986

 
$
34,630

Accrued expenses
49,822

 
39,784

Other current liabilities
5,320

 
—

Current portion of debt and finance lease obligations
1,421

 
309

Current portion of operating lease obligations
50,615

 
—

Total current liabilities
137,164

 
74,723

 
 
 
 
Debt and finance lease obligations, less current portion
72,249

 
47,335

Operating lease obligations, less current portion
101,525

 
—

Other long-term liabilities
58,816

 
47,739

Deferred income taxes
43,942

 
37,174


 

 
 

Shareholders’ equity:
 

 
 

Common stock
279

 
285

Additional paid-in capital
226,869

 
210,296

Retained earnings
350,034

 
342,663

Total shareholders’ equity
577,182

 
553,244

Total liabilities and shareholders’ equity
$
990,878

 
$
760,215



8


Forward Air Corporation
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
 
 
 
 
Three months ended
 
December 31,
2019
 
December 31,
2018
Operating activities:
 
 
 
Net income
$
24,168

 
$
27,684

Adjustments to reconcile net income to net cash provided by operating activities
 
 
 
Depreciation and amortization
10,073

 
10,837

Change in fair value of earn-out liability
(923
)
 
—

Share-based compensation
2,901

 
3,024

Loss (gain) on disposal of property and equipment
111

 
(157
)
Provision for (recovery) loss on receivables
(67
)
 
191

Provision for revenue adjustments
1,099

 
707

Deferred income tax
837

 
1,418

Changes in operating assets and liabilities
 
 
 
Accounts receivable
6,264

 
(8,792
)
Prepaid expenses and other assets
832

 
2,315

Income taxes
3,840

 
1,937

Accounts payable and accrued expenses
(5,390
)
 
(456
)
Net cash provided by operating activities
43,745

 
38,708

 
 
 
 
Investing activities:
 
 
 
Proceeds from disposal of property and equipment
1,193

 
1,070

Purchases of property and equipment
(3,564
)
 
(7,949
)
Acquisition of business
—

 
(16,250
)
Other
—

 
115

Net cash used in investing activities
(2,371
)
 
(23,014
)
 
 
 
 
Financing activities:
 
 
 
Payments of finance lease obligations
(418
)
 
(74
)
Proceeds from senior credit facility
—

 
7,000

Proceeds from exercise of stock options
1,987

 
239

Payments of cash dividends
(5,073
)
 
(5,214
)
Repurchase of common stock (repurchase program)
(8,298
)
 
(21,141
)
Common stock issued under employee stock purchase plan
353

 
242

Net cash used in by financing activities
(11,449
)
 
(18,948
)
Net increase (decrease) in cash
29,925

 
(3,254
)
Cash at beginning of period
34,824

 
28,911

Cash at end of period
$
64,749

 
$
25,657





9


Forward Air Corporation
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
Year ended
 
December 31,
2019
 
December 31,
2018
Operating activities:
 
 
 
Net income
$
87,099

 
$
92,051

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

 
 

Depreciation and amortization
42,109

 
42,183

Change in fair value of earn-out liability
(33
)
 
(455
)
Share-based compensation
11,907

 
10,549

Loss (gain) on disposal of property and equipment
1,121

 
(171
)
Provision for loss on receivables
761

 
139

Provision for revenue adjustments
3,342

 
3,628

Deferred income taxes
6,768

 
8,094

Changes in operating assets and liabilities
 

 
 

Accounts receivable
2,059

 
(12,178
)
Prepaid expenses and other assets
(3,641
)
 
(2,565
)
Income taxes
1,284

 
(1,256
)
Accounts payable and accrued expenses
8,700

 
12,535

Net cash provided by operating activities
161,476

 
152,554

 
 
 
 
Investing activities:
 

 
 

Proceeds from disposal of property and equipment
3,294

 
7,059

Purchases of property and equipment
(30,666
)
 
(42,293
)
Acquisition of business, net of cash acquired
(39,000
)

(19,987
)
Other
—

 
(242
)
Net cash used in investing activities
(66,372
)
 
(55,463
)
 
 
 
 
Financing activities:
 

 
 

Payments of finance lease obligations
(946
)
 
(302
)
Proceeds from senior credit facility
20,000

 
7,000

Proceeds from exercise of stock options
4,050

 
3,921

Payments of cash dividends
(20,494
)
 
(18,427
)
Repurchase of common stock (repurchase program)
(56,204
)
 
(66,126
)
Common stock issued under employee stock purchase plan
614

 
479

Cash settlement of share-based awards for tax withholdings
(3,032
)
 
(1,872
)
Net cash used in financing activities
(56,012
)
 
(75,327
)
Net increase in cash
39,092

 
21,764

Cash at beginning of year
25,657

 
3,893

Cash at end of year
$
64,749

 
$
25,657





10


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”) and free cash flow for the three months and year ended December 31, 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 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.

Forward Air Corporation
Reconciliation to U.S. GAAP
(In thousands)
(Unaudited)
 
 
 
 
 
Three months ended
 
Year ended
 
December 31, 2019
 
December 31, 2018
 
December 31, 2019
 
December 31, 2018
Net income
$
24,168

 
$
27,684

 
$
87,099

 
$
92,051

Interest expense
795

 
457

 
2,711

 
1,783

Income tax expense
7,888

 
6,906

 
29,012

 
28,195

Depreciation and amortization
10,073

 
10,837

 
42,109

 
42,183

EBITDA
$
42,924

 
$
45,884

 
$
160,931

 
$
164,212

 
 
 
 
 
 
 
 
 
Three months ended
 
Year ended
 
December 31, 2019
 
December 31, 2018
 
December 31, 2019
 
December 31, 2018
Net cash provided by operating activities
$
43,745

 
$
38,708

 
$
161,476

 
$
152,553

Proceeds from disposal of property and equipment
1,193

 
1,070

 
3,294

 
7,059

Purchases of property and equipment
(3,564
)
 
(7,949
)
 
(30,666
)
 
(42,293
)
Free cash flow
$
41,374

 
$
31,829

 
$
134,104

 
$
117,319



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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
December 31, 2019
Net income
$
24,168

Income allocated to participating securities
(254
)
Numerator for diluted income per share - net income
$
23,914

 
 
Fully diluted share count
28,005

Diluted earnings per share
$
0.85

 
 
 
 
Projected
Full year 2020
Projected tax rate
25.0
%
 
 
Projected capital expenditures, net
$
36,500

 
 
 
Three months ended
Projected
December 31, 2020
Projected year end fully diluted share count
27,500




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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 the effects of our business efforts, expected 2020 guidance, including first quarter 2020 revenue growth, first quarter 2020 net income per diluted shares, full year 2020 projected tax rate, fully diluted share count (before consideration of future share repurchase), projected capital expenditures, the future declaration of dividends and the quarterly and full year 2020 anticipated dividends per share.

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, our ability to manage our growth and ability to grow, in part, through acquisitions, while being able to successfully integrate such acquisitions, our inability to maintain our historical growth rate because of decreased volume of freight or decreased average revenue per pound of freight moving through our network, 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, our inability to manage our information systems and inability of our information systems to handle an increased volume of freight moving through our network, the occurrence of cybersecurity risks and events, market acceptance of our service offerings, claims for property damage, personal injuries or workers’ compensation, enforcement of and changes in governmental regulations, environmental, tax, insurance and accounting matters, the handling of hazardous materials, changes in fuel prices, loss of a major customer, increasing competition and pricing pressure, our dependence on our senior management team and the potential effects of changes in employee status, season trends, the occurrence of certain weather events, restrictions in our charter and bylaws, and the risks described in our Annual Report on Form 10-K for the year ended December 31, 2018 and quarterly reports on Form 10-Q filed thereafter.

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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