Exhibit 99.1 Forward Air Corporation Reports Record Second Quarter Results - EPS up over 20% GREENEVILLE, Tenn.--(BUSINESS WIRE)--July 24, 2003--Forward Air Corporation (Nasdaq/NM:FWRD) today reported results for the second quarter ended June 30, 2003. The Company is a leading high-service-level contractor to the air cargo industry providing time-definite ground transportation services in the United States and Canada. Income from operations for the quarter ended June 30, 2003 increased 17.6% to $10.0 million, compared with $8.5 million in the prior-year quarter. Operating revenue increased 5.0% to $59.2 million from $56.4 million for the same quarter in 2002. As a percent of operating revenue, operating income for the quarter increased to 16.9% versus 15.1% in the same quarter last year. Net income increased 18.9% to $6.3 million compared with $5.3 million in the prior-year quarter. Diluted earnings per share for the second quarter of 2003 increased 20.8% to $0.29 compared with $0.24 in the prior-year quarter. Income from operations for the six months ended June 30, 2003 increased 14.1% to $18.6 million, compared with $16.3 million in the prior-year period. Operating revenue increased 5.9% to $115.8 million from $109.3 million for the same period in 2002. As a percent of operating revenue, operating income was 16.0% versus 14.9% in the same period last year. Net income increased 15.7% to $11.8 million compared with $10.2 million in the prior-year period. Diluted earnings per share for the six months of 2003 increased 17.4% to $0.54 compared with $0.46 in the prior-year period. "Our revenue and earnings this quarter are the best we've produced during any second quarter in our history, a result of the efforts of our people. We continue to face a competitive environment and an uncertain economy, but our focus remains the same - profitable growth. Revenue from the airport-to-airport network grew 4.7%, driven by increases in both tonnage and yield. Logistics revenue, however, decreased by 2.6% as the Company eliminated business that did not meet profit expectations," commented Bruce A. Campbell, President and Chief Operating Officer. Review of Financial Results The Company will hold a conference call to discuss second quarter results on Friday, July 25, 2003, at 9:00 a.m. EDT. Interested parties may participate in the call by dialing (877) 461-2814. Additionally, the call is being webcast and can be accessed at Forward Air's Internet site at www.forwardair.com. FORWARD AIR CORPORATION Condensed Statements of Income (Unaudited) (In thousands, except per share data) Three months ended Six months ended ------------------ ------------------ 6/30/03 6/30/02 6/30/03 6/30/02 ------------------ ------------------ Operating revenue $59,174 $56,355 $115,820 $109,252 Operating expenses: Purchased transportation 24,698 24,418 48,655 46,783 Salaries, wages and employee benefits 13,424 12,226 26,422 24,181 Operating leases 3,289 2,977 6,375 5,989 Depreciation and amortization 1,775 1,881 3,552 3,766 Insurance and claims 1,308 1,445 2,632 2,790 Other operating expenses 4,663 4,916 9,596 9,461 ------------------ ------------------ 49,157 47,863 97,232 92,970 ------------------ ------------------ Income from operations 10,017 8,492 18,588 16,282 Other income, net 143 135 268 243 ------------------ ------------------ Income before income taxes 10,160 8,627 18,856 16,525 Income taxes 3,811 3,278 7,072 6,280 ------------------ ------------------ Net income $6,349 $5,349 $11,784 $10,245 ================== ================== Income per share: Basic $0.30 $0.25 $0.55 $0.47 Diluted $0.29 $0.24 $0.54 $0.46 Weighted average shares outstanding: Basic 21,276 21,762 21,251 21,725 Diluted 21,664 22,295 21,629 22,290 FORWARD AIR CORPORATION Condensed Balance Sheet (In thousands) 6/30/03 12/31/02 -------- --------- Assets: Unaudited Audited(a) Cash and short-term investments $ 66,765 $ 53,916 Other current assets 36,031 34,858 Property and equipment, net 35,862 37,173 Other assets 19,286 19,564 -------- --------- Total assets $157,944 $ 145,511 ======== ========= Liabilities and shareholders' equity: Current liabilities $ 17,277 $ 18,690 Long-term obligations 9,550 8,475 Shareholders' equity 131,117 118,346 -------- --------- Total liabilities and shareholders' equity $157,944 $ 145,511 ======== ========= (a) Taken from audited financial statements, which are not presented in their entirety. Important Information This press release contains statements with respect to the Company's beliefs and expectations of the outcomes of future events that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Written forward-looking statements may appear in documents filed with the Securities and Exchange Commission, in press releases and in reports to shareholders. Oral forward-looking statements may be made by the Company's executive officers and directors on behalf of the Company to the press, potential investors, securities analysts and others. The Private Securities Litigation Reform Act of 1995 contains a safe harbor for forward-looking statements. The Company relies on this safe harbor in making such disclosures. In connection with this safe harbor provision, the Company is hereby identifying important factors that could cause actual results to differ materially from those contained in any forward-looking statement made by or on behalf of the Company in this press release. Without limitation, factors that might cause such a difference include economic factors such as recessions, inflation, higher interest rates and downturns in customer business cycles, fears over the threat of, and actual occurrence of, war and terrorism, the Company's inability to maintain its historical growth rate because of a decreased volume of freight moving through the Company's network, increasing competition and pricing pressure, surplus inventories, loss of a major customer, the creditworthiness of the Company's customers and their ability to pay for services rendered, the Company's ability to secure terminal facilities in desirable locations at reasonable rates, the inability of the Company's information systems to handle an increased volume of freight moving through its network, changes in fuel prices, employment matters including rising health care costs, enforcement of and changes in governmental regulations, environmental and tax matters, the handling of hazardous materials, and the availability and compensation of qualified independent owner-operators needed to serve the Company's transportation needs. As a result of the foregoing, no assurance can be given as to future financial condition, cash flows, or results of operations. Forward-looking statements can be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," "projects," and similar expressions. The Company does not undertake any obligation to update or to release publicly any revisions to forward-looking statements contained in this press release to reflect events or circumstances occurring after the date of this press release or to reflect the occurrence of unanticipated events. CONTACT: Forward Air Corporation Andrew C. Clarke, 423-636-7000