News Column

Forward Air Corporation Reports Second Quarter 2014 Results and Announces Quarterly Cash Dividend

July 22, 2014

GREENEVILLE, Tenn.--(BUSINESS WIRE)-- Forward Air Corporation (NASDAQ:FWRD) today reported operating revenue, operating income, net income and diluted earnings per share for the three and six months ended June 30, 2014.

Operating revenue for the quarter ended June 30, 2014 increased 21.3% to $193.9 million from $159.8 million for the same quarter in 2013. Income from operations was $27.6 million, compared with $22.5 million in the prior-year quarter. As a percent of operating revenue, income from operations was 14.2%, compared with 14.1% in the same quarter last year. Net income during the period was $17.2 million compared to $13.8 million in the prior-year quarter. Income per diluted share for the second quarter of 2014 was $0.55 compared with $0.45 in the prior-year quarter.

Operating revenue for the six months ended June 30, 2014 increased 21.2% to $365.4 million from $301.4 million for the same period in 2013. Income from operations was $43.9 million, compared with $38.3 million in the prior-year period. As a percent of operating revenue, income from operations was 12.0%, compared with 12.7% in the same period last year. Net income during the period was $27.4 million compared to $24.7 million in the prior-year period. Income per diluted share for the six months ended June 30, 2014 was $0.87 compared with $0.81 in the prior-year period.

Bruce A. Campbell, Chairman, President, and CEO, commenting on the second quarter said, “We are pleased with this quarter’s revenue and operating income performance across all of our business segments. With the impact of the first quarter's severe winter weather behind us, we delivered strong revenue growth and a solid income performance for the quarter.”

Commenting on the Forward Air, Inc. (FAI) business segment, Mr. Campbell said, “On the strength of a full quarter of revenue and results from Central States Trucking Co. (CST), which we acquired in February, improving year-over-year tonnage volumes and a full quarter benefit from our March general rate increase, FAI achieved record revenue and operating income during the second quarter of 2014. CST contributed approximately $18.1 million of revenue and $2.3 million of operating income during the second quarter of 2014.”

Commenting on the Forward Air Solutions (Solutions) segment, Mr. Campbell said, “Driven by a full quarter benefit from general rate increases initiated in the first quarter, continued excellent operating discipline and solid revenue growth, Solutions produced operating income of approximately $1.0 million. Compared to the prior-year quarter results, Solutions operating results improved over $1.2 million, or 600.0%.”

Addressing the Total Quality, Inc. (TQI) business segment, Mr. Campbell said, “TQI experienced solid revenue growth and significant improvement in operating income as a result of pharmaceutical distribution opportunities that emerged during the second quarter and benefits derived from our new operating system implemented in the first quarter.”

In closing, Mr. Campbell said, “As always, I would like to thank the Forward Air team of employees and independent contractors for their dedication and hard work. This truly was a quarter that all our operating groups made a positive contribution to our overall results.”

Commenting on the Company's guidance for the third quarter, Rodney L. Bell, Senior Vice President and CFO said, “We anticipate that our third quarter 2014 revenues will increase in the range of 18% to 22% over the comparable 2013 period. We expect income per diluted share to be between $0.57 and $0.61 per share. This compares to $0.46 per share in the third quarter of 2013.”

On July 22, 2014, our Board of Directors declared a quarterly cash dividend of $0.12 per share of common stock. The dividend is payable to shareholders of record at the close of business on August 21, 2014, and is expected to be paid on September 5, 2014.

This quarterly dividend is pursuant to a cash dividend policy approved by the Board of Directors, which anticipates a total annual dividend of $0.48 per share of common stock, payable in quarterly increments of $0.12 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 second quarter 2014 results on Wednesday, July 23, 2014 at 9:00 a.m. EDT. The Company's conference call will be available online at www.forwardair.com or by dialing (800) 230-1092. 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 Corporation

Forward Air Corporation operates three business segments, Forward Air, Inc., Forward Air Solutions, Inc. and Total Quality, Inc.

Forward Air, Inc. is a leading provider of time-definite surface transportation and related logistics services to the North American expedited ground freight market. We offer our customers local pick-up and delivery (Forward Air CompleteSM) and scheduled surface transportation of cargo as a cost-effective, reliable alternative to air transportation. We transport cargo that must be delivered at a specific time but is relatively less time-sensitive than traditional air freight or when air transportation is not economical. We also offer our customers an array of logistics and other services including: expedited full truckload (TLX); intermodal/drayage (Central States Trucking Co.); dedicated fleets; warehousing; customs brokerage; and shipment consolidation, deconsolidation and handling.

Forward Air Solutions, Inc. is a provider of pool distribution services. Pool distribution involves the consolidation and shipment of several smaller less-than-truckload shipments to a common area or region. Once at the regional destination, the loads are deconsolidated, then grouped with other shipments with common delivery points, and delivered in a very precise, time-sensitive manner. Our pool distribution network consists of 24 terminals within the mid-Atlantic, Southeast, Midwest and Southwestern United States.

Total Quality, Inc. utilizes industry-leading temperature-controlled equipment, 24-hour monitoring and tracking technology and layered security features to provide our customers with the highest level of service. In addition to our core pharmaceutical services, we provide brokerage transportation services. Headquartered in central Michigan, we service the United States, Canada and Mexico.

 
Forward Air Corporation
Consolidated Statements of Comprehensive Income
(In thousands, except per share data)
(Unaudited)
             
Three months endedSix months ended
June 30,

2014
    June 30,

2013
June 30,

2014
June 30,

2013
Operating revenue $ 193,852 $ 159,804

$

365,420

$

301,364

 
Operating expenses:
Purchased transportation 82,834 70,253 156,385 131,252
Salaries, wages and employee benefits 44,391 36,031 85,813 69,983
Operating leases 8,165 6,888 16,516 13,932
Depreciation and amortization 7,751 5,971 14,764 11,157
Insurance and claims 3,104 3,215 7,231 5,874
Fuel expense 5,172 3,656 9,977 6,664
Other operating expenses 14,840   11,285     30,868     24,207  
Total operating expenses 166,257   137,299     321,554     263,069  
Income from operations 27,595 22,505 43,866 38,295
 
Other income (expense):
Interest expense (101 ) (128 ) (183 ) (256 )
Other, net 112   14     198     45  
Total other income (expense) 11   (114 )   15     (211 )
Income before income taxes 27,606 22,391 43,881 38,084
Income taxes 10,428   8,560     16,502     13,399  
Net income and comprehensive income $ 17,178   $ 13,831   $ 27,379   $ 24,685  
 
Net income per share:
Basic $ 0.56   $ 0.46   $ 0.89   $ 0.83  
Diluted $ 0.55   $ 0.45   $ 0.87   $ 0.81  
Weighted average shares outstanding:
Basic 30,925 30,161 30,834 29,838
Diluted 31,408 30,736 31,364 30,477
 
Dividends per share: $ 0.12   $ 0.10   $ 0.24   $ 0.20  
 
 
Forward Air Corporation
Components of Consolidated Revenue and Purchased Transportation
(In thousands)
(Unaudited)
                           
Three months ended
June 30,Percent ofJune 30,Percent ofPercent
2014     Revenue2013       RevenueChange     Change
Operating Revenue
Forward Air
Airport-to-airport $ 107,983 70.0 % $ 97,336 78.4 % $ 10,647 10.9 %
Logistics services
Expedited full truckload - TLX 19,167 12.4 18,581 15.0 586 3.2
Intermodal/drayage 14,351       9.3   1,254       1.0   13,097       1,044.4  
Total Logistics services 33,518 21.7 19,835 16.0 13,683 69.0
Other Forward Air services 12,765       8.3   6,909       5.6   5,856       84.8  
Forward Air - Total revenue 154,266       79.5   124,080       77.7   30,186       24.3  
TQI - Pharmaceutical services 13,682 7.1 12,196 7.6 1,486 12.2
Forward Air Solutions - Pool distribution 26,935 13.9 24,300 15.2 2,635 10.8
Intersegment eliminations (1,031 )     (0.5 ) (772

)

 

 

(0.5 ) (259 )     33.5  
Consolidated operating revenue $ 193,852       100.0 % $ 159,804       100.0 % $ 34,048       21.3 %
 
Three months ended
June 30,Percent ofJune 30,Percent ofPercent
2014     Revenue2013       RevenueChange     Change
Purchased Transportation
Forward Air
Airport-to-airport $ 44,776 41.5 % $ 39,780 40.9 % $ 4,996 12.6 %
Logistics services
Expedited full truckload - TLX 14,695 76.7 13,816 74.4 879 6.4
Intermodal/drayage 6,073       42.3   779       62.1   5,294       679.6  
Total Logistics services 20,768 62.0 14,595 73.6 6,173 42.3
Other Forward Air services 3,045       23.9   2,073       30.0   972       46.9  
Forward Air - Total purchased transportation 68,589       44.5   56,448       45.5   12,141       21.5  
TQI - Pharmaceutical services 7,229 52.8 6,690 54.9 539 8.1
Forward Air Solutions - Pool distribution 7,790 28.9 7,740 31.9 50 0.6
Intersegment eliminations (774 )     75.1   (625

)

 

 

81.0   (149 )     23.8  
Consolidated purchased transportation $ 82,834       42.7 % $ 70,253       44.0 % $ 12,581       17.9 %
 
 
Forward Air Corporation
Components of Consolidated Revenue and Purchased Transportation
(In thousands)
(Unaudited)
                           
Six months ended
June 30,Percent ofJune 30,Percent ofPercent
2014     Revenue2013       RevenueChange     Change
Operating Revenue
Forward Air
Airport-to-airport $ 205,718 71.3 % $ 187,925 78.2 % $ 17,793 9.5 %
Logistics services
Expedited full truckload - TLX 36,628 12.7 36,081 15.0 547 1.5
Intermodal/drayage 23,346       8.1   2,711       1.1   20,635       761.2  
Total Logistics services 59,974 20.8 38,792 16.2 21,182 54.6
Other Forward Air services 22,761       7.9   13,472       5.6   9,289       69.0  
Forward Air - Total revenue 288,453       78.9   240,189       79.7   48,264       20.1  
TQI - Pharmaceutical services 24,743 6.8 16,114 5.3 8,629 53.5
Forward Air Solutions - Pool distribution 54,257 14.9 46,554 15.5 7,703 16.5
Intersegment eliminations (2,033 )     (0.6 ) (1,493 )     (0.5 ) (540 )     36.2  
Consolidated operating revenue $ 365,420       100.0 % $ 301,364       100.0 % $ 64,056       21.3 %
 
Six months ended
June 30,Percent ofJune 30,Percent ofPercent
2014     Revenue2013       RevenueChange     Change
Purchased Transportation
Forward Air
Airport-to-airport $ 85,525 41.6 % $ 76,465 40.7 % $ 9,060 11.8 %
Logistics services
Expedited full truckload - TLX 28,370 77.5 27,034 74.9 1,336 4.9
Intermodal/drayage 9,893       42.4   1,620       59.8   8,273       510.7  
Total Logistics services 38,263 63.8 28,654 73.9 9,609 33.5
Other Forward Air services 5,584       24.5   3,890       28.9   1,694       43.5  
Forward Air - Total purchased transportation 129,372       44.9   109,009       45.4   20,363       18.7  
TQI - Pharmaceutical services 12,680 51.2 8,914 55.3 3,766 42.2
Forward Air Solutions - Pool distribution 15,914 29.3 14,527 31.2 1,387 9.5
Intersegment eliminations (1,581 )     77.8   (1,198 )     80.2   (383 )     32.0  
Consolidated purchased transportation $ 156,385       42.8 % $ 131,252       43.6 % $ 25,133       19.1 %
 
 
Forward Air Corporation
Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
      June 30,

2014
   

December 31,

2013 (a)

Assets
Current assets:
Cash and cash equivalents $ 24,943 $ 127,367
Accounts receivable, net 97,560 76,500
Other current assets 14,655   16,493
Total current assets 137,158 220,360
 
Property and equipment 303,449 271,050
Less accumulated depreciation and amortization 124,068   116,287
Net property and equipment 179,381 154,763
Goodwill and other acquired intangibles:
Goodwill 138,839 88,496
Other acquired intangibles, net of accumulated amortization 74,560   40,110
Total net goodwill and other acquired intangibles 213,399 128,606
Other assets 2,551   2,540
Total assets $ 532,489   $ 506,269
 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable $ 21,421 $ 16,267
Accrued expenses 21,956 18,275
Current portion of debt and capital lease obligations 294   69
Total current liabilities 43,671 34,611
 
Debt and capital lease obligations, less current portion 1,415 3
Other long-term liabilities 7,729 8,940
Deferred income taxes 29,013 26,850
 
Shareholders’ equity:
Common stock 306 305
Additional paid-in capital 123,688 107,726
Retained earnings 326,667   327,834
Total shareholders’ equity 450,661   435,865
Total liabilities and shareholders’ equity $ 532,489   $ 506,269
 
(a) Taken from audited financial statements, which are not presented in their entirety.
 
 
Forward Air Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
     
Three months ended
June 30,

2014
   

June 30,

2013

Operating activities:
Net income $ 17,178 $ 13,831
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization 7,751 5,971
Share-based compensation 1,677 1,536
Gain on disposal of property and equipment (128 ) (368 )
Provision for recovery on receivables (127 ) (11 )
Provision for revenue adjustments 609 627
Deferred income tax 1,441 2,086
Excess tax benefit for stock options exercised (270 ) (632 )
Changes in operating assets and liabilities
Accounts receivable (4,234 ) 1,185
Prepaid expenses and other current assets (9,478 ) (1,360 )
Accounts payable and accrued expenses 4,764   (6,219 )
Net cash provided by operating activities 19,183 16,646
 
Investing activities:
Proceeds from disposal of property and equipment 383 884
Purchases of property and equipment (13,872 ) (15,812 )
Acquisition of business, net of cash acquired (109 )
Other (133 ) (4 )
Net cash used in investing activities (13,622 ) (15,041 )
 
Financing activities:
Payments of debt and capital lease obligations (87 ) (75 )
Proceeds from exercise of stock options 1,740 10,219
Payments of cash dividends (3,746 ) (3,047 )
Repurchase of common stock (repurchase program) (19,985 )
Common stock issued under employee stock purchase plan 148 137
Cash settlement of share-based awards for minimum tax withholdings (2 )
Excess tax benefit for stock options exercised 270   632  
Net cash (used in) provided by financing activities (21,662 ) 7,866  
Net (decrease) increase in cash (16,101 ) 9,471
Cash at beginning of period 41,044   71,630  
Cash at end of period $ 24,943   $ 81,101  
 
 
Forward Air Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
     
Six months ended
June 30,

2014
    June 30,

2013
Operating activities:
Net income $ 27,379 $ 24,685
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization 14,764 11,157
Share-based compensation 3,329 3,094
Gain on disposal of property and equipment (112 ) (283 )
Provision for (recovery) loss on receivables (85 ) 290
Provision for revenue adjustments 1,250 1,126
Deferred income tax 1,573 2,936
Excess tax benefit for stock options exercised (907 ) (2,870 )
Changes in operating assets and liabilities
Accounts receivable (12,727 ) 3,196
Prepaid expenses and other current assets (2,429 ) (2,090 )
Accounts payable and accrued expenses 7,180   (3,991 )
Net cash provided by operating activities 39,215 37,250
 
Investing activities:
Proceeds from disposal of property and equipment 462 1,048
Purchases of property and equipment (33,420 ) (27,994 )
Acquisition of business, net of cash acquired (82,998 ) (45,328 )
Other (193 ) (60 )
Net cash used in investing activities (116,149 ) (72,334 )
 
Financing activities:
Payments of debt and capital lease obligations (9,578 ) (20,303 )
Proceeds from exercise of stock options 11,580 28,179
Payments of cash dividends (7,479 ) (6,014 )
Repurchase of common stock (repurchase program) (19,985 )
Common stock issued under employee stock purchase plan 148 137
Cash settlement of share-based awards for minimum tax withholdings (1,083 ) (866 )
Excess tax benefit for stock options exercised 907   2,870  
Net cash (used in) provided by financing activities (25,490 ) 4,003  
Net decrease in cash (102,424 ) (31,081 )
Cash at beginning of period 127,367   112,182  
Cash at end of period $ 24,943   $ 81,101  
 
 
Forward Air Corporation
Segment Information
(In millions)
(Unaudited)
 
      Three months ended
June 30,     Percent of     June 30,     Percent of         Percent
2014Revenue2013RevenueChangeChange
Operating revenue
Forward Air $ 154.3 79.5 % $ 124.1 77.7 % $ 30.2 24.3 %
FASI 26.9 13.9 24.3 15.2 2.6 10.7
TQI 13.7 7.1 12.2 7.6 1.5 12.3
Intercompany eliminations (1.0 ) (0.5 ) (0.8 ) (0.5 ) (0.2 ) 25.0  
Total 193.9   100.0   159.8   100.0   34.1   21.3  
 
Purchased transportation
Forward Air 68.6 44.5 56.5 45.5 12.1 21.4
FASI 7.8 29.0 7.7 31.7 0.1 1.3
TQI 7.2 52.5 6.7 54.9 0.5 7.5
Intercompany eliminations (0.8 ) 80.0   (0.6 ) 75.0   (0.2 ) 33.3  
Total 82.8   42.7   70.3   44.0   12.5   17.8  
 
Salaries, wages and employee benefits
Forward Air 32.9 21.3 25.6 20.6 7.3 28.5
FASI 9.3 34.6 8.5 35.0 0.8 9.4
TQI 2.2   16.1   1.9   15.6   0.3   15.8  
Total 44.4   22.9   36.0   22.5   8.4   23.3  
 
Operating leases
Forward Air 6.2 4.0 4.9 4.0 1.3 26.5
FASI 2.0 7.4 1.9 7.8 0.1 5.3
TQI     0.1   0.8   (0.1 ) (100.0 )
Total 8.2   4.2   6.9   4.3   1.3   18.8  
 
Depreciation and amortization
Forward Air 5.4 3.5 4.1 3.3 1.3 31.7
FASI 1.4 5.2 1.2 4.9 0.2 16.7
TQI 1.0   7.3   0.7   5.7   0.3   42.9  
Total 7.8   4.0   6.0   3.8   1.8   30.0  
 
Insurance and claims
Forward Air 2.4 1.6 2.2 1.8 0.2 9.1
FASI 0.5 1.9 0.8 3.3 (0.3 ) (37.5 )
TQI 0.2   1.5   0.2   1.7      
Total 3.1   1.6   3.2   2.0   (0.1 ) (3.1 )
 
Fuel expense
Forward Air 2.2 1.4 1.0 0.8 1.2 120.0
FASI 1.8 6.7 1.5 6.2 0.3 20.0
TQI 1.2   8.8   1.2   9.8      
Total 5.2   2.7   3.7   2.3   1.5   40.5  
 
Other operating expenses
Forward Air 11.4 7.4 7.9 6.4 3.5 44.3
FASI 3.1 11.5 2.9 11.9 0.2 6.9
TQI 0.5 3.6 0.6 4.9 (0.1 ) (16.7 )
Intercompany eliminations (0.2 ) 20.0   (0.2 ) 25.0      
Total 14.8   7.7   11.2   7.0   3.6   32.1  
 
Income from operations
Forward Air 25.2 16.3 21.9 17.6 3.3 15.1
FASI 1.0 3.7 (0.2 ) (0.8 ) 1.2 (600.0 )
TQI 1.4   10.2   0.8   6.6   0.6   75.0  
Total $ 27.6   14.2 % $ 22.5   14.1 % $ 5.1   22.7 %
 
 
Forward Air Corporation
Segment Information
(In millions)
(Unaudited)
 
      Six months ended
June 30,     Percent of     June 30,     Percent of         Percent
2014Revenue2013RevenueChangeChange
Operating revenue
Forward Air $ 288.4 78.9 % $ 240.2 79.7 % $ 48.2 20.1 %
FASI 54.3 14.9 46.6 15.5 7.7 16.5
TQI 24.7 6.8 16.1 5.3 8.6 53.4
Intercompany eliminations (2.0 ) (0.6 ) (1.5 ) (0.5 ) (0.5 ) 33.3  
Total 365.4   100.0   301.4   100.0   64.0   21.2  
 
Purchased transportation
Forward Air 129.4 44.9 109.0 45.4 20.4 18.7
FASI 15.9 29.3 14.5 31.1 1.4 9.7
TQI 12.7 51.4 8.9 55.3 3.8 42.7
Intercompany eliminations (1.6 ) 80.0   (1.2 ) 80.0   (0.4 ) 33.3  
Total 156.4   42.8   131.2   43.6   25.2   19.2  
 
Salaries, wages and employee benefits
Forward Air 63.0 21.8 50.7 21.1 12.3 24.3
FASI 18.7 34.4 16.7 35.8 2.0 12.0
TQI 4.1   16.6   2.6   16.1   1.5   57.7  
Total 85.8   23.5   70.0   23.2   15.8   22.6  
 
Operating leases
Forward Air 12.0 4.2 10.0 4.2 2.0 20.0
FASI 4.5 8.3 3.9 8.4 0.6 15.4
TQI     0.1   0.6   (0.1 ) (100.0 )
Total 16.5   4.5   14.0   4.7   2.5   17.9  
 
Depreciation and amortization
Forward Air 10.3 3.6 7.9 3.3 2.4 30.4
FASI 2.7 5.0 2.4 5.1 0.3 12.5
TQI 1.7   6.9   0.9   5.6   0.8   88.9  
Total 14.7   4.0   11.2   3.7   3.5   31.3  
 
Insurance and claims
Forward Air 5.5 1.9 4.1 1.7 1.4 34.1
FASI 1.3 2.4 1.5 3.2 (0.2 ) (13.3 )
TQI 0.4   1.6   0.2   1.3   0.2   100.0  
Total 7.2   2.0   5.8   1.9   1.4   24.1  
 
Fuel expense
Forward Air 4.1 1.4 2.0 0.8 2.1 105.0
FASI 3.5 6.5 3.1 6.7 0.4 12.9
TQI 2.4   9.7   1.6   9.9   0.8   50.0  
Total 10.0   2.7   6.7   2.2   3.3   49.3  
 
Other operating expenses
Forward Air 23.5 8.1 18.2 7.6 5.3 29.1
FASI 6.7 12.3 5.5 11.8 1.2 21.8
TQI 1.1 4.5 0.8 5.0 0.3 37.5
Intercompany eliminations (0.4 ) 20.0   (0.3 ) 20.0   (0.1 ) 33.3  
Total 30.9   8.5   24.2   8.0   6.7   27.7  
 
Income (loss) from operations
Forward Air 40.6 14.1 38.3 15.9 2.3 6.0
FASI 1.0 1.8 (1.0 ) (2.1 ) 2.0 (200.0 )
TQI 2.3   9.3   1.0   6.2   1.3   130.0  
Total $ 43.9   12.0 % $ 38.3   12.7 % $ 5.6   14.6 %
 
 
Forward Air Corporation
Forward Air Inc. Operating Statistics
             
Three months ended
June 30,June 30,Percent
20142013Change
 
Operating ratio 83.7 % 82.4 % 1.6 %
 
Business days 64.0 64.0
Business weeks 12.8 12.8
 
 
Airport-to-airport:
Tonnage
Total pounds ¹ 473,146 452,171 4.6
Average weekly pounds ¹ 36,965 35,326 4.6
 
Linehaul shipments
Total linehaul 731,002 714,677 2.3
Average weekly 57,110 55,834 2.3
 
Forward Air Complete shipments 139,572 115,001 21.4
As a percentage of linehaul shipments 19.1 % 16.1 % 18.6
 
Average linehaul shipment size 647 633 2.2
 
Revenue per pound ²
Linehaul yield $ 17.66 $ 16.98 3.2
Fuel surcharge impact 2.03 1.87 0.7
Forward Air Complete impact 3.13   2.68   2.1  
Total airport-to-airport yield $ 22.82 $ 21.53 6.0
 
 
Expedited full truckload - TLX:
Miles

Owner operator ¹

6,930 9,147 (24.2 )
Third party ¹ 4,570   3,328   37.3  
Total Miles 11,500 12,475 (7.8 )
 
Revenue per mile $ 1.67 $ 1.49 12.1
 
Cost per mile $ 1.28 $ 1.11 15.3 %
 
 
¹ - In thousands
² - In cents per pound; percentage change is expressed as a percent of total yield.
 
 
Forward Air Corporation
Forward Air Inc. Operating Statistics
             
Six months ended
June 30,June 30,Percent
20142013Change
 
Operating ratio 85.9 % 84.1 % 2.1 %
 
Business days 127.0 127.0
Business weeks 25.4 25.4
 
 
Airport-to-airport:
Tonnage
Total pounds ¹ 914,861 858,085 6.6
Average weekly pounds ¹ 36,018 33,783 6.6
 
Linehaul shipments
Total linehaul 1,393,482 1,350,342 3.2
Average weekly 54,861 53,163 3.2
 
Forward Air Complete shipments 247,146 229,086 7.9
As a percentage of linehaul shipments 17.7 % 17.0 % 4.1
 
Average linehaul shipment size 657 635 3.5
 
Revenue per pound ²
Linehaul yield $ 17.49 $ 17.14 1.6
Fuel surcharge impact 2.03 1.95 0.4
Forward Air Complete impact 2.97   2.81   0.7  
Total airport-to-airport yield $ 22.49 $ 21.90 2.7
 
 
Expedited full truckload - TLX:
Miles
Owner operator ¹ 13,898 17,484 (20.5 )
Third party ¹ 8,652   6,848   26.3  
Total Miles 22,550 24,332 (7.3 )
 
Revenue per mile $ 1.62 $ 1.48 9.5
 
Cost per mile $ 1.26 $ 1.11 13.5 %
 
 
¹ - In thousands
² - In cents per pound; percentage change is expressed as a percent of total yield.
 


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.





Forward Air Corporation

Rodney L. Bell, 423-636-7000

rbell@forwardair.com

Source: Forward Air Corporation


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