Exhibit 99.1 Forward Air Corporation Reports Record First Quarter 2005 Results GREENEVILLE, Tenn.--(BUSINESS WIRE)--April 26, 2005--Forward Air Corporation (NASDAQ:FWRD): -- 8.1% Revenue Growth -- 19.2% Operating Margin -- 28.6% Fully Diluted EPS Growth Forward Air Corporation (NASDAQ:FWRD) today reported record results for the first quarter ended March 31, 2005. Operating revenue for the quarter ended March 31, 2005 increased 8.1% to a record $69.5 million from $64.3 million for the same quarter in 2004. Income from operations was $13.4 million, compared with $10.7 million in the prior-year quarter, an increase of 25.2%. As a percent of operating revenue, income from operations expanded to 19.2% during the quarter from 16.7% in 2004. Net income during the period increased 27.9% to $8.7 million from $6.8 million in the prior-year quarter. Diluted income per share from operations for the first quarter of 2005 was $0.27 compared with $0.21 in the prior-year quarter, an increase of 28.6%. Commenting on the Company's first quarter 2005 results, Bruce A. Campbell, President and CEO, said, "Congratulations to the Forward Air team for their performance in the first quarter. Revenue growth was led by 8.0% growth in our airport-to-airport network and more than 15.0% growth in our logistics business. Our people worked hard to bring more income to the bottom line, which produced income per share growth of nearly 29.0% and a record operating income margin of 19.2%. We are encouraged by the positive yield trends we saw in our airport-to-airport network primarily the result of a March 1 rate increase. We believe this increase was an important step in positioning us for the balance of 2005 and will allow us to focus 100% of our energy on providing industry-leading service and value to our customers." Review of Financial Results Forward Air will hold a quarterly conference call to discuss first quarter 2005 results on Wednesday, April 27, 2005, at 9:00 a.m. EDT. The Company's conference call will be available online at www.forwardair.com or by dialing 800-474-8920. A replay of the conference call will be available at www.forwardair.com beginning shortly after the completion of the live call. About Forward Air Forward Air is a high-service-level contractor to the air cargo industry providing time-definite ground transportation services through a network of 80 terminals located on or near major airports in the United States and Canada. The Company provides these services as a cost-effective alternative to air transportation of cargo that must be delivered at a specific time but is relatively less time-sensitive than traditional airfreight or when air transportation is not economical. FORWARD AIR CORPORATION Condensed Statements of Income (Unaudited) (In thousands, except per share data) Three months ended (a) ---------------------- 3/31/05 3/31/04 ---------------------- Operating revenue $69,533 $64,303 Operating expenses: Purchased transportation 28,479 26,994 Salaries, wages and employee benefits 15,452 14,673 Operating leases 3,336 3,262 Depreciation and amortization 1,853 1,699 Insurance and claims 1,182 1,423 Other operating expenses 5,850 5,517 ---------- --------- Total operating expenses 56,152 53,568 ---------- --------- Income from operations 13,381 10,735 Other income, net 518 163 ---------- --------- Pre-tax income 13,899 10,898 Income taxes 5,206 4,090 ---------- --------- Net income $ 8,693 $ 6,808 ========== ========= Income per share: Basic $ 0.27 $ 0.21 Diluted $ 0.27 $ 0.21 Weighted average shares outstanding: Basic 32,293 32,265 Diluted 32,729 32,822 FORWARD AIR CORPORATION Condensed Consolidated Balance Sheets (In thousands) 3/31/05 12/31/04 ------------ ------------ (Unaudited) Audited (b) Assets: Cash and short-term investments $ 116,862 $ 111,678 Other current assets 42,828 47,744 Property and equipment, net 35,488 37,286 Other assets 17,857 17,845 ------------ ----------- Total assets $ 213,035 $ 214,553 ============ =========== Liabilities and Shareholders' Equity: Current liabilities 18,139 25,657 Long-term obligations 7,783 7,893 Shareholders' equity 187,113 181,003 ------------ ----------- Total liabilities and shareholders' equity $ 213,035 $ 214,553 ============ =========== (a) Income per share has been restated to give effect to a three-for-two stock split declared in February 2005. (b) Taken from audited financial statements, which are not presented in their entirety. Important Information This press release contains "forward-looking statements," as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements other than historical information or statements of current condition and relate to future events or our future financial performance. Some forward-looking statements may be identified by use of such terms as "believes," "anticipates," "intends," "plans," "estimates," "projects" or "expects." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such 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 inability to maintain our historical growth rate because of a decreased volume of freight moving through our network or decreased average revenue per pound of freight moving through our network, increasing competition and pricing pressure, surplus inventories, loss of a major customer, the creditworthiness of our customers and their ability to pay for services rendered, our ability to secure terminal facilities in desirable locations at reasonable rates, the inability of our information systems to handle an increased volume of freight moving through our network, changes in fuel prices, claims for property damage, personal injuries or workers' compensation, employment matters including rising health care costs, enforcement of and changes in governmental regulations, environmental and tax matters, the handling of hazardous materials, the availability and compensation of qualified independent owner-operators and freight handlers needed to serve our transportation needs and our inability to successfully integrate acquisitions. As a result of the foregoing, no assurance can be given as to future financial condition, cash flows or results of operations. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. CONTACT: Forward Air Corporation Andrew C. Clarke, 423-636-7000 aclarke@forwardair.com