FORWARD AIR CORPORATION
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(Exact name of registrant as specified in its charter)
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Tennessee
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000-22490
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62-1120025
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(I.R.S. Employer
Identification No.)
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430 Airport Road
Greeneville, Tennessee
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37745
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(Address of principal executive offices)
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(Zip Code)
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Not Applicable
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(Former name or former address, if changed since last report)
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No.
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Exhibit
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99.1
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Press Release of Forward Air Corporation dated April 20, 2011
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FORWARD AIR CORPORATION
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Date: April 20, 2011
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By:
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/s/ Rodney L. Bell
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Rodney L. Bell
Chief Financial Officer, Senior Vice President and Treasurer
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No.
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Exhibit
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99.1
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Press Release of Forward Air Corporation dated April 20, 2011
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Condensed Consolidated Statements of Operations
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(In thousands, except per share data)
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(Unaudited)
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Three months ended
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|||||||
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March 31,
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March 31,
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|||||
2011
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2010
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||||||
Operating revenue:
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|||||||
Forward Air
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Airport-to-airport
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$ | 82,147 | $ | 70,888 | |||
Logistics
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16,494 | 13,855 | |||||
Other
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6,403 | 5,875 | |||||
Forward Air Solutions
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Pool distribution
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15,157 | 16,359 | |||||
Total operating revenue
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120,201 | 106,977 | |||||
Operating expenses:
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Purchased transportation
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|||||||
Forward Air
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Airport-to-airport
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32,593 | 28,799 | |||||
Logistics
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12,799 | 10,768 | |||||
Other
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1,473 | 1,492 | |||||
Forward Air Solutions
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Pool distribution
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3,457 | 3,442 | |||||
Total purchased transportation
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50,322 | 44,501 | |||||
Salaries, wages and employee benefits
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30,495 | 30,670 | |||||
Operating leases
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6,706 | 6,629 | |||||
Depreciation and amortization
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5,082 | 4,949 | |||||
Insurance and claims
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2,175 | 2,331 | |||||
Fuel expense
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2,388 | 2,058 | |||||
Other operating expenses
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9,747 | 9,784 | |||||
Total operating expenses
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106,915 | 100,922 | |||||
Income from operations
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13,286 | 6,055 | |||||
Other income (expense):
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|||||||
Interest expense
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(195 | ) | (185 | ) | |||
Other, net
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16 | 30 | |||||
Total other expense
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(179 | ) | (155 | ) | |||
Income before income taxes
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13,107 | 5,900 | |||||
Income taxes
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5,238 | 2,481 | |||||
Net income
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$ | 7,869 | $ | 3,419 | |||
Net income per share:
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|||||||
Basic
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$ | 0.27 | $ | 0.12 | |||
Diluted
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$ | 0.27 | $ | 0.12 | |||
Weighted average shares outstanding:
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|||||||
Basic
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29,135 | 28,951 | |||||
Diluted
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29,371 | 29,074 | |||||
Dividends per share:
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$ | 0.07 | $ | 0.07 |
Condensed Consolidated Balance Sheets
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(In thousands)
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(Unaudited)
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March 31,
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December 31,
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||||
2011
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2010 (a)
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Assets
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Current assets:
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Cash
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$ | 85,681 | $ | 74,504 | |
Accounts receivable, net
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68,387 | 62,763 | |||
Other current assets
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9,541 | 8,696 | |||
Total current assets
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163,609 | 145,963 | |||
Property and equipment
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217,560 | 213,704 | |||
Less accumulated depreciation and amortization
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88,033 | 87,272 | |||
Total property and equipment, net
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129,527 | 126,432 | |||
Goodwill and other acquired intangibles:
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Goodwill
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43,332 | 43,332 | |||
Other acquired intangibles, net
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30,111 | 31,259 | |||
Total goodwill and other acquired intangibles
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73,443 | 74,591 | |||
Other assets
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1,523 | 1,810 | |||
Total assets
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$ | 368,102 | $ | 348,796 | |
Liabilities and Shareholders’ Equity
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Current liabilities:
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Accounts payable
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$ | 11,804 | $ | 10,687 | |
Accrued expenses
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21,900 | 16,280 | |||
Current portion of debt and capital lease obligations
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603 | 638 | |||
Total current liabilities
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34,307 | 27,605 | |||
Debt and capital lease obligations, less current portion
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50,747 | 50,883 | |||
Other long-term liabilities
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8,371 | 8,106 | |||
Deferred income taxes
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6,408 | 6,116 | |||
Shareholders’ equity:
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Common stock
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292 | 290 | |||
Additional paid-in capital
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30,668 | 24,300 | |||
Retained earnings
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237,309 | 231,496 | |||
Total shareholders’ equity
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268,269 | 256,086 | |||
Total liabilities and shareholders’ equity
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$ | 368,102 | $ | 348,796 |
Condensed Consolidated Statements of Cash Flows
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(In thousands)
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(Unaudited)
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Three months ended
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March 31,
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March 31,
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2011
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2010
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Operating activities:
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Net income
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$ | 7,869 | $ | 3,419 | |||
Adjustments to reconcile net income to net cash provided by operating activities
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Depreciation and amortization
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5,082 | 4,949 | |||||
Share-based compensation
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1,443 | 1,763 | |||||
Loss on disposal of property and equipment
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21 | 1 | |||||
Provision for (recovery) loss on receivables
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(50 | ) | 90 | ||||
Provision for revenue adjustments
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484 | 423 | |||||
Deferred income taxes
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20 | (873 | ) | ||||
Tax benefit for stock options exercised
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(88 | ) | (4 | ) | |||
Changes in operating assets and liabilities
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Accounts receivable
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(6,058 | ) | (3,218 | ) | |||
Prepaid expenses and other current assets
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(881 | ) | 1,786 | ||||
Accounts payable and accrued expenses
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7,377 | 1,856 | |||||
Net cash provided by operating activities
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15,219 | 10,192 | |||||
Investing activities:
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Proceeds from disposal of property and equipment
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279 | 20 | |||||
Purchases of property and equipment
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(7,329 | ) | (5,426 | ) | |||
Other
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308 | 39 | |||||
Net cash used in investing activities
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(6,742 | ) | (5,367 | ) | |||
Financing activities:
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Payments of debt and capital lease obligations
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(171 | ) | (261 | ) | |||
Proceeds from exercise of stock options
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4,838 | 38 | |||||
Payments of cash dividends
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(2,055 | ) | (2,029 | ) | |||
Tax benefit for stock options exercised
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88 | 4 | |||||
Net cash provided by (used in) financing activities
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2,700 | (2,248 | ) | ||||
Net increase in cash
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11,177 | 2,577 | |||||
Cash at beginning of period
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74,504 | 42,035 | |||||
Cash at end of period
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$ | 85,681 | $ | 44,612 |
Forward Air Corporation
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Segment Information
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(In millions)
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(Unaudited)
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Three months ended
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March 31,
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Percent of
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March 31,
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Percent of
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Percent
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2011
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Revenue
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2010
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Revenue
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Change
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Change
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Operating revenue
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Forward Air
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$ | 105.2 | 87.5 | % | $ | 90.9 | 85.0 | % | $ | 14.3 | 15.7 | % | ||||||||
FASI
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15.2 | 12.6 | 16.4 | 15.3 | (1.2 | ) | (7.3 | ) | ||||||||||||
Intercompany Eliminations
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(0.2 | ) | (0.1 | ) | (0.3 | ) | (0.3 | ) | 0.1 | (33.3 | ) | |||||||||
Total
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120.2 | 100.0 | 107.0 | 100.0 | 13.2 | 12.3 | ||||||||||||||
Purchased transportation
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Forward Air
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46.9 | 44.6 | 41.1 | 45.2 | 5.8 | 14.1 | ||||||||||||||
FASI
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3.6 | 23.7 | 3.7 | 22.6 | (0.1 | ) | (2.7 | ) | ||||||||||||
Intercompany Eliminations
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(0.2 | ) | 100.0 | (0.3 | ) | 100.0 | 0.1 | (33.3 | ) | |||||||||||
Total
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50.3 | 41.8 | 44.5 | 41.6 | 5.8 | 13.0 | ||||||||||||||
Salaries, wages and employee benefits
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Forward Air
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23.9 | 22.7 | 23.4 | 25.7 | 0.5 | 2.1 | ||||||||||||||
FASI
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6.6 | 43.4 | 7.3 | 44.5 | (0.7 | ) | (9.6 | ) | ||||||||||||
Total
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30.5 | 25.4 | 30.7 | 28.7 | (0.2 | ) | (0.7 | ) | ||||||||||||
Operating leases
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Forward Air
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4.9 | 4.7 | 4.5 | 5.0 | 0.4 | 8.9 | ||||||||||||||
FASI
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1.8 | 11.8 | 2.1 | 12.8 | (0.3 | ) | (14.3 | ) | ||||||||||||
Total
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6.7 | 5.6 | 6.6 | 6.2 | 0.1 | 1.5 | ||||||||||||||
Depreciation and amortization
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Forward Air
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4.1 | 3.9 | 4.0 | 4.4 | 0.1 | 2.5 | ||||||||||||||
FASI
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1.0 | 6.6 | 0.9 | 5.5 | 0.1 | 11.1 | ||||||||||||||
Total
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5.1 | 4.2 | 4.9 | 4.6 | 0.2 | 4.1 | ||||||||||||||
Insurance and claims
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Forward Air
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1.6 | 1.5 | 1.8 | 2.0 | (0.2 | ) | (11.1 | ) | ||||||||||||
FASI
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0.6 | 3.9 | 0.5 | 3.0 | 0.1 | 20.0 | ||||||||||||||
Total
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2.2 | 1.8 | 2.3 | 2.1 | (0.1 | ) | (4.3 | ) | ||||||||||||
Fuel expense
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Forward Air
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1.1 | 1.0 | 0.9 | 1.0 | 0.2 | 22.2 | ||||||||||||||
FASI
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1.3 | 8.6 | 1.2 | 7.3 | 0.1 | 8.3 | ||||||||||||||
Total
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2.4 | 2.0 | 2.1 | 2.0 | 0.3 | 14.3 | ||||||||||||||
Other operating expenses
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Forward Air
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8.4 | 8.0 | 8.0 | 8.8 | 0.4 | 5.0 | ||||||||||||||
FASI
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1.3 | 8.6 | 1.8 | 11.0 | (0.5 | ) | (27.8 | ) | ||||||||||||
Total
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9.7 | 8.1 | 9.8 | 9.1 | (0.1 | ) | (1.0 | ) | ||||||||||||
Income (loss) from operations
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Forward Air
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14.3 | 13.6 | 7.2 | 7.9 | 7.1 | 98.6 | ||||||||||||||
FASI
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(1.0 | ) | (6.6 | ) | (1.1 | ) | (6.7 | ) | 0.1 | (9.1 | ) | |||||||||
Total
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$ | 13.3 | 11.1 | % | $ | 6.1 | 5.7 | % | $ | 7.2 | 118.0 | % |
Forward Air Inc. Operating Statistics
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Three months ended
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March 31,
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March 31,
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Percent
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2011
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2010
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Change
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Operating ratio
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86.4 | % | 92.1 | % | (6.2 | ) | % | ||||
Business days
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64.0 | 63.0 | 1.6 | ||||||||
Business weeks
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12.8 | 12.6 | 1.6 | ||||||||
Airport-to-airport:
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Tonnage
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Total pounds ¹
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400,558 | 378,625 | 5.8 | ||||||||
Average weekly pounds ¹
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31,294 | 30,050 | 4.1 | ||||||||
Linehaul shipments
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Total linehaul
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572,456 | 546,313 | 4.8 | ||||||||
Average weekly
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44,723 | 43,358 | 3.1 | ||||||||
Forward Air Complete shipments
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83,006 | 69,106 | 20.1 | ||||||||
As a percentage of linehaul shipments
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14.5 | % | 12.6 | % | 15.1 | ||||||
Average linehaul shipment size
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700 | 693 | 1.0 | ||||||||
Revenue per pound ²
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Linehaul yield
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$ | 16.69 | $ | 15.93 | 4.1 | ||||||
Fuel surcharge impact
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1.66 | 1.09 | 3.0 | ||||||||
Forward Air Complete impact
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2.18 | 1.74 | 2.3 | ||||||||
Total airport-to-airport yield
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$ | 20.53 | $ | 18.76 | 9.4 | ||||||
Logistics:
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Miles
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Owner operator ¹
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6,980 | 5,937 | 17.6 | ||||||||
Third party ¹
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3,259 | 2,738 | 19.0 | ||||||||
Total Miles
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10,239 | 8,675 | 18.0 | ||||||||
Revenue per mile
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$ | 1.62 | $ | 1.61 | 0.6 | ||||||
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Cost per mile
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$ | 1.25 | $ | 1.24 | 0.8 | % | |||||
¹ - In thousands
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² - In cents per pound; percentage change is expressed as a percent of total yield.
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