FORWARD AIR CORPORATION |
(Exact name of registrant as specified in its charter) |
Tennessee | 000-22490 | 62-1120025 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
430 Airport Road Greeneville, Tennessee | 37745 | |
(Address of principal executive offices) | (Zip Code) |
Not Applicable |
(Former name or former address, if changed since last report) |
No. | Exhibit | |
99.1 | Press Release of Forward Air Corporation dated July 21, 2016 |
No. | Exhibit | |
99.2 | Forward Air Corporation Historical Operating Statistics |
No. | Exhibit | |
99.3 | 2016 Summary Segment Statement of Operations |
FORWARD AIR CORPORATION | |||
Date: July 21, 2016 | By: | /s/ Michael J. Morris | |
Michael J. Morris Chief Financial Officer, Senior Vice President and Treasurer |
No. | Exhibit | |
99.1 | Press Release of Forward Air Corporation dated July 21, 2016 |
No. | Exhibit | |
99.2 | Forward Air Corporation Historical Operating Statistics |
No. | Exhibit | |
99.3 | 2016 Summary Segment Statement of Operations |
Forward Air Corporation | |||||||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Six months ended | ||||||||||||||
June 30, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||||
Operating revenue: | |||||||||||||||
Expedited LTL | $ | 144,693 | $ | 155,858 | $ | 279,072 | $ | 278,065 | |||||||
Truckload Expedited | 39,440 | 39,395 | 78,060 | 73,867 | |||||||||||
Pool Distribution | 31,525 | 27,684 | 64,716 | 54,908 | |||||||||||
Intermodal | 24,189 | 27,494 | 48,813 | 50,521 | |||||||||||
Eliminations and other operations | (1,210 | ) | (737 | ) | (2,476 | ) | (1,749 | ) | |||||||
Operating revenue | $ | 238,637 | $ | 249,694 | $ | 468,185 | $ | 455,612 | |||||||
Operating expenses: | |||||||||||||||
Purchased transportation | 99,267 | 107,482 | 195,743 | 196,819 | |||||||||||
Salaries, wages and employee benefits | 57,018 | 61,886 | 115,695 | 115,789 | |||||||||||
Operating leases | 14,601 | 18,277 | 28,469 | 34,033 | |||||||||||
Depreciation and amortization | 9,341 | 9,519 | 19,009 | 18,202 | |||||||||||
Insurance and claims | 6,648 | 6,240 | 12,044 | 11,371 | |||||||||||
Fuel expense | 2,999 | 4,188 | 5,960 | 8,208 | |||||||||||
Other operating expenses | 20,669 | 22,194 | 41,766 | 43,033 | |||||||||||
Impairment of goodwill, intangibles and other assets | 42,442 | — | 42,442 | — | |||||||||||
Total operating expenses | 252,985 | 229,786 | 461,128 | 427,455 | |||||||||||
Operating (loss) income: | |||||||||||||||
Expedited LTL | 24,921 | 20,796 | 42,011 | 35,681 | |||||||||||
Truckload Expedited | (40,282 | ) | 4,141 | (38,717 | ) | 7,351 | |||||||||
Pool Distribution | (371 | ) | (13 | ) | (257 | ) | 203 | ||||||||
Intermodal | 2,757 | 3,318 | 5,130 | 5,307 | |||||||||||
Other operations | (1,373 | ) | (8,334 | ) | (1,110 | ) | (20,385 | ) | |||||||
(Loss) income from operations | (14,348 | ) | 19,908 | 7,057 | 28,157 | ||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (461 | ) | (570 | ) | (1,015 | ) | (934 | ) | |||||||
Other, net | (117 | ) | (89 | ) | (145 | ) | (138 | ) | |||||||
Total other income (expense) | (578 | ) | (659 | ) | (1,160 | ) | (1,072 | ) | |||||||
(Loss) income before income taxes | (14,926 | ) | 19,249 | 5,897 | 27,085 | ||||||||||
Income tax (benefit) expense | (4,860 | ) | 7,425 | 2,864 | 10,425 | ||||||||||
Net (loss) income and comprehensive (loss) income | $ | (10,066 | ) | $ | 11,824 | $ | 3,033 | $ | 16,660 | ||||||
Net (loss) income per share: | |||||||||||||||
Basic | $ | (0.33 | ) | $ | 0.38 | $ | 0.10 | $ | 0.54 | ||||||
Diluted | $ | (0.33 | ) | $ | 0.38 | $ | 0.10 | $ | 0.53 | ||||||
Dividends per share: | $ | 0.12 | $ | 0.12 | $ | 0.24 | $ | 0.24 |
Expedited LTL Segment Information | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended | ||||||||||||||||||||
June 30, | Percent of | June 30, | Percent of | Percent | ||||||||||||||||
2016 | Revenue | 2015 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | 144.7 | 100.0 | % | $ | 155.8 | 100.0 | % | $ | (11.1 | ) | (7.1 | )% | |||||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | 55.8 | 38.6 | 66.0 | 42.4 | (10.2 | ) | (15.5 | ) | ||||||||||||
Salaries, wages and employee benefits | 33.9 | 23.4 | 39.3 | 25.2 | (5.4 | ) | (13.7 | ) | ||||||||||||
Operating leases | 8.5 | 5.9 | 8.4 | 5.4 | 0.1 | 1.2 | ||||||||||||||
Depreciation and amortization | 5.3 | 3.7 | 5.6 | 3.6 | (0.3 | ) | (5.4 | ) | ||||||||||||
Insurance and claims | 3.4 | 2.3 | 2.4 | 1.5 | 1.0 | 41.7 | ||||||||||||||
Fuel expense | 0.8 | 0.5 | 1.1 | 0.7 | (0.3 | ) | (27.3 | ) | ||||||||||||
Other operating expenses | 12.1 | 8.4 | 12.2 | 7.9 | (0.1 | ) | (0.8 | ) | ||||||||||||
Total operating expenses | 119.8 | 82.8 | 135.0 | 86.7 | (15.2 | ) | (11.3 | ) | ||||||||||||
Income from operations | $ | 24.9 | 17.2 | % | $ | 20.8 | 13.3 | % | $ | 4.1 | 19.7 | % |
Expedited LTL Operating Statistics | ||||||||||
Three months ended | ||||||||||
June 30, | June 30, | Percent | ||||||||
2016 | 2015 | Change | ||||||||
Operating ratio | 82.8 | % | 86.7 | % | (4.5 | )% | ||||
Business days | 64.0 | 64.0 | — | |||||||
Business weeks | 12.8 | 12.8 | — | |||||||
Expedited LTL: | ||||||||||
Tonnage | ||||||||||
Total pounds ¹ | 606,033 | 650,276 | (6.8 | ) | ||||||
Average weekly pounds ¹ | 47,346 | 50,803 | (6.8 | ) | ||||||
Linehaul shipments | ||||||||||
Total linehaul | 964,756 | 1,010,978 | (4.6 | ) | ||||||
Average weekly | 75,372 | 78,983 | (4.6 | ) | ||||||
Forward Air Complete shipments | 206,406 | 256,553 | (19.5 | ) | ||||||
As a percentage of linehaul shipments | 21.4 | % | 25.4 | % | (15.7 | ) | ||||
Average linehaul shipment size | 628 | 643 | (2.3 | ) | ||||||
Revenue per pound 2 | ||||||||||
Linehaul yield | $ | 17.58 | $ | 16.98 | 2.8 | |||||
Fuel surcharge impact | 0.94 | 1.20 | (1.2 | ) | ||||||
Forward Air Complete impact | 3.31 | 3.48 | (0.8 | ) | ||||||
Total Expedited LTL yield | $ | 21.83 | $ | 21.66 | 0.8 | % | ||||
¹ - In thousands | ||||||||||
2 - In dollars per hundred pound; percentage change is expressed as a percent of total yield. |
Truckload Expedited Segment Information | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended | ||||||||||||||||||||
June 30, | Percent of | June 30, | Percent of | Percent | ||||||||||||||||
2016 | Revenue | 2015 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | 39.4 | 100.0 | % | $ | 39.4 | 100.0 | % | $ | — | — | % | ||||||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | 27.4 | 69.6 | 25.3 | 64.2 | 2.1 | 8.3 | ||||||||||||||
Salaries, wages and employee benefits | 4.5 | 11.4 | 4.7 | 11.9 | (0.2 | ) | (4.3 | ) | ||||||||||||
Operating leases | 0.1 | 0.3 | 0.1 | 0.3 | — | — | ||||||||||||||
Depreciation and amortization | 1.7 | 4.3 | 1.5 | 3.8 | 0.2 | 13.3 | ||||||||||||||
Insurance and claims | 1.0 | 2.5 | 0.9 | 2.3 | 0.1 | 11.1 | ||||||||||||||
Fuel expense | 0.6 | 1.5 | 0.9 | 2.3 | (0.3 | ) | (33.3 | ) | ||||||||||||
Other operating expenses | 2.0 | 5.1 | 1.9 | 4.8 | 0.1 | 5.3 | ||||||||||||||
Impairment of goodwill, intangibles and other assets | 42.4 | 107.6 | — | — | 42.4 | 100.0 | ||||||||||||||
Total operating expenses | 79.7 | 202.3 | 35.3 | 89.6 | 44.4 | 125.8 | ||||||||||||||
(Loss) income from operations | $ | (40.3 | ) | (102.3 | )% | $ | 4.1 | 10.4 | % | $ | (44.4 | ) | (1,082.9 | )% |
Truckload Expedited Operating Statistics | ||||||||||
Three months ended | ||||||||||
June 30, | June 30, | Percent | ||||||||
2016 | 2015 | Change | ||||||||
Company driver 1 | 1,544 | 1,880 | (17.9 | ) | ||||||
Owner operator 1 | 12,563 | 8,722 | 44.0 | |||||||
Third party 1 | 7,491 | 7,600 | (1.4 | ) | ||||||
Total Miles | 21,598 | 18,202 | 18.7 | |||||||
Revenue per mile | $ | 1.77 | $ | 2.05 | (13.7 | ) | ||||
Cost per mile | $ | 1.34 | $ | 1.46 | (8.2 | )% | ||||
¹ - In thousands |
Pool Distribution Segment Information | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended | ||||||||||||||||||||
June 30, | Percent of | June 30, | Percent of | Percent | ||||||||||||||||
2016 | Revenue | 2015 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | 31.5 | 100.0 | % | $ | 27.7 | 100.0 | % | $ | 3.8 | 13.7 | % | ||||||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | 8.6 | 27.3 | 7.5 | 27.1 | 1.1 | 14.7 | ||||||||||||||
Salaries, wages and employee benefits | 11.9 | 37.8 | 10.6 | 38.3 | 1.3 | 12.3 | ||||||||||||||
Operating leases | 3.0 | 9.5 | 2.1 | 7.6 | 0.9 | 42.9 | ||||||||||||||
Depreciation and amortization | 1.5 | 4.8 | 1.5 | 5.4 | — | — | ||||||||||||||
Insurance and claims | 1.0 | 3.2 | 0.9 | 3.2 | 0.1 | 11.1 | ||||||||||||||
Fuel expense | 1.1 | 3.5 | 1.3 | 4.7 | (0.2 | ) | (15.4 | ) | ||||||||||||
Other operating expenses | 4.8 | 15.2 | 3.8 | 13.7 | 1.0 | 26.3 | ||||||||||||||
Total operating expenses | 31.9 | 101.3 | 27.7 | 100.0 | 4.2 | 15.2 | ||||||||||||||
Loss from operations | $ | (0.4 | ) | (1.3 | )% | $ | — | — | % | $ | (0.4 | ) | (100.0 | )% |
Intermodal Segment Information | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended | ||||||||||||||||||||
June 30, | Percent of | June 30, | Percent of | Percent | ||||||||||||||||
2016 | Revenue | 2015 | Revenue | Change | Change | |||||||||||||||
Operating revenue | $ | 24.2 | 100.0 | % | $ | 27.5 | 100.0 | % | $ | (3.3 | ) | (12.0 | )% | |||||||
Operating expenses: | ||||||||||||||||||||
Purchased transportation | 8.4 | 34.7 | 9.0 | 32.7 | (0.6 | ) | (6.7 | ) | ||||||||||||
Salaries, wages and employee benefits | 6.0 | 24.8 | 6.2 | 22.6 | (0.2 | ) | (3.2 | ) | ||||||||||||
Operating leases | 2.9 | 12.0 | 2.9 | 10.5 | — | — | ||||||||||||||
Depreciation and amortization | 0.9 | 3.7 | 0.9 | 3.3 | — | — | ||||||||||||||
Insurance and claims | 0.5 | 2.0 | 0.7 | 2.5 | (0.2 | ) | (28.6 | ) | ||||||||||||
Fuel expense | 0.6 | 2.5 | 0.9 | 3.3 | (0.3 | ) | (33.3 | ) | ||||||||||||
Other operating expenses | 2.1 | 8.7 | 3.6 | 13.1 | (1.5 | ) | (41.7 | ) | ||||||||||||
Total operating expenses | 21.4 | 88.4 | 24.2 | 88.0 | (2.8 | ) | (11.6 | ) | ||||||||||||
Income from operations | $ | 2.8 | 11.6 | % | $ | 3.3 | 12.0 | % | $ | (0.5 | ) | (15.2 | )% |
Forward Air Corporation | |||||||
Consolidated Balance Sheets | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
June 30, 2016 | December 31, 2015 (a) | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 21,679 | $ | 33,312 | |||
Accounts receivable, net | 109,256 | 109,165 | |||||
Other current assets | 32,696 | 30,980 | |||||
Total current assets | 163,631 | 173,457 | |||||
Property and equipment | 355,124 | 343,147 | |||||
Less accumulated depreciation and amortization | 166,868 | 155,859 | |||||
Net property and equipment | 188,256 | 187,288 | |||||
Goodwill and other acquired intangibles: | |||||||
Goodwill | 179,301 | 205,609 | |||||
Other acquired intangibles, net of accumulated amortization | 106,709 | 127,800 | |||||
Total net goodwill and other acquired intangibles | 286,010 | 333,409 | |||||
Other assets | 6,530 | 5,778 | |||||
Total assets | $ | 644,427 | $ | 699,932 | |||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 13,815 | $ | 23,334 | |||
Accrued expenses | 31,210 | 29,823 | |||||
Current portion of debt and capital lease obligations | 55,713 | 55,887 | |||||
Total current liabilities | 100,738 | 109,044 | |||||
Debt and capital lease obligations, less current portion | 909 | 28,617 | |||||
Other long-term liabilities | 14,071 | 12,340 | |||||
Deferred income taxes | 39,227 | 39,876 | |||||
Shareholders’ equity: | |||||||
Common stock | 302 | 305 | |||||
Additional paid-in capital | 166,363 | 160,855 | |||||
Retained earnings | 322,817 | 348,895 | |||||
Total shareholders’ equity | 489,482 | 510,055 | |||||
Total liabilities and shareholders’ equity | $ | 644,427 | $ | 699,932 | |||
(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, 2016 | June 30, 2015 | ||||||
Operating activities: | |||||||
Net (loss) income | $ | (10,066 | ) | $ | 11,824 | ||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | 9,341 | 9,519 | |||||
Impairment of goodwill, intangible and other assets | 42,442 | — | |||||
Share-based compensation | 2,159 | 1,890 | |||||
(Gain) loss on disposal of property and equipment | (3 | ) | 116 | ||||
Provision for recovery on receivables | 184 | 102 | |||||
Provision for revenue adjustments | 406 | 935 | |||||
Deferred income tax benefit | (4,150 | ) | (3,543 | ) | |||
Excess tax benefit for stock options exercised | (49 | ) | (36 | ) | |||
Changes in operating assets and liabilities | |||||||
Accounts receivable | (5,529 | ) | (2,556 | ) | |||
Prepaid expenses and other current assets | (7,052 | ) | (5,829 | ) | |||
Accounts payable and accrued expenses | (3,917 | ) | (1,319 | ) | |||
Net cash provided by operating activities | 23,766 | 11,103 | |||||
Investing activities: | |||||||
Proceeds from disposal of property and equipment | 945 | 41 | |||||
Purchases of property and equipment | (13,352 | ) | (6,733 | ) | |||
Acquisition of business, net of cash acquired | — | (52 | ) | ||||
Other | (623 | ) | 67 | ||||
Net cash used in investing activities | (13,030 | ) | (6,677 | ) | |||
Financing activities: | |||||||
Payments of debt and capital lease obligations | (13,914 | ) | (14,147 | ) | |||
Proceeds from exercise of stock options | 213 | 1,212 | |||||
Payments of cash dividends | (3,656 | ) | (3,719 | ) | |||
Repurchase of common stock (repurchase program) | (9,996 | ) | — | ||||
Common stock issued under employee stock purchase plan | 215 | 228 | |||||
Excess tax benefit for stock options exercised | 49 | 36 | |||||
Cash settlement of share-based awards for minimum tax withholdings | (5 | ) | — | ||||
Net cash used in financing activities | (27,094 | ) | (16,390 | ) | |||
Net decrease in cash | (16,358 | ) | (11,964 | ) | |||
Cash at beginning of period | 38,037 | 54,495 | |||||
Cash at end of period | $ | 21,679 | $ | 42,531 |
Forward Air Corporation | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
Six months ended | |||||||
June 30, 2016 | June 30, 2015 | ||||||
Operating activities: | |||||||
Net income | $ | 3,033 | $ | 16,660 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | 19,009 | 18,202 | |||||
Impairment of goodwill, intangible and other assets | 42,442 | — | |||||
Share-based compensation | 4,111 | 3,676 | |||||
Loss (gain) on disposal of property and equipment | 90 | (33 | ) | ||||
Provision for (recovery) loss on receivables | (12 | ) | 83 | ||||
Provision for revenue adjustments | 1,205 | 1,842 | |||||
Deferred income tax (benefit) | 881 | (498 | ) | ||||
Excess tax benefit for stock options exercised | (87 | ) | (2,365 | ) | |||
Changes in operating assets and liabilities | |||||||
Accounts receivable | (1,284 | ) | (4,887 | ) | |||
Other current assets | (1,796 | ) | (3,210 | ) | |||
Accounts payable and accrued expenses | (6,386 | ) | (10,908 | ) | |||
Net cash provided by operating activities | 61,206 | 18,562 | |||||
Investing activities: | |||||||
Proceeds from disposal of property and equipment | 1,100 | 623 | |||||
Purchases of property and equipment | (16,040 | ) | (11,962 | ) | |||
Acquisition of business, net of cash acquired | (1,700 | ) | (62,375 | ) | |||
Other | (601 | ) | (68 | ) | |||
Net cash used in investing activities | (17,241 | ) | (73,782 | ) | |||
Financing activities: | |||||||
Proceeds from term loan | — | 125,000 | |||||
Payments of debt and capital lease obligations | (27,883 | ) | (73,263 | ) | |||
Proceeds from exercise of stock options | 1,094 | 11,351 | |||||
Payments of cash dividends | (7,334 | ) | (7,433 | ) | |||
Repurchase of common stock (repurchase program) | (19,991 | ) | — | ||||
Common stock issued under employee stock purchase plan | 215 | 228 | |||||
Excess tax benefit for stock options exercised | 87 | 2,365 | |||||
Cash settlement of share-based awards for minimum tax withholdings | (1,786 | ) | (1,926 | ) | |||
Net cash (used in) provided by financing activities | (55,598 | ) | 56,322 | ||||
Net (decrease) increase in cash | (11,633 | ) | 1,102 | ||||
Cash at beginning of period | 33,312 | 41,429 | |||||
Cash at end of period | $ | 21,679 | $ | 42,531 |
(In millions, except per share data) | ||||||||||||
(Unaudited) | ||||||||||||
Three months ended | ||||||||||||
Non-GAAP | ||||||||||||
June 30, 2016 (1) | Impairment Charge | June 30, 2016 | ||||||||||
Income from operations | $ | (14.3 | ) | $ | 42.4 | $ | 28.1 | |||||
Net income | $ | (10.1 | ) | $ | 27.4 | $ | 17.3 | |||||
Weighted average diluted shares outstanding | 30,252 | 30,451 | 30,451 | |||||||||
Net income per share: | $ | (0.33 | ) | $ | 0.90 | $ | 0.57 | |||||
(1) - As reported in accordance with United States generally accepted accounting principles. | ||||||||||||
Three months ended | ||||||||||||
Non-GAAP | ||||||||||||
June 30, 2015 (1) | Integration and Deal Costs | June 30, 2015 | ||||||||||
Income from operations | $ | 19.9 | $ | 6.9 | $ | 26.8 | ||||||
Net income | $ | 11.8 | $ | 4.2 | $ | 16.0 | ||||||
Weighted average diluted shares outstanding | 31,104 | 31,104 | 31,104 | |||||||||
Net income per share: | $ | 0.38 | $ | 0.14 | $ | 0.51 | ||||||
(1) - As reported in accordance with United States generally accepted accounting principles. |
Forward Air Corporation | ||||||||||||
Reconciliation to U.S. GAAP | ||||||||||||
(In millions, except per share data) | ||||||||||||
(Unaudited) | ||||||||||||
Six months ended | ||||||||||||
Non-GAAP | ||||||||||||
June 30, 2016 (1) | Impairment Charge | June 30, 2016 | ||||||||||
Income from operations | $ | 7.1 | $ | 42.4 | $ | 49.5 | ||||||
Net income | $ | 3.0 | $ | 27.4 | $ | 30.4 | ||||||
Weighted average diluted shares outstanding | 30,356 | 30,557 | 30,557 | |||||||||
Net income per share: | $ | 0.10 | $ | 0.90 | $ | 0.99 | ||||||
(1) - As reported in accordance with United States generally accepted accounting principles. |
Six months ended | ||||||||||||
Non-GAAP | ||||||||||||
June 30, 2015 (1) | Integration and Deal Costs | June 30, 2015 | ||||||||||
Income from operations | $ | 28.2 | $ | 18.7 | $ | 46.9 | ||||||
Net income | $ | 16.7 | $ | 11.4 | $ | 28.1 | ||||||
Weighted average diluted shares outstanding | 31,088 | 31,088 | 31,088 | |||||||||
Net income per share: | $ | 0.53 | $ | 0.37 | $ | 0.90 | ||||||
(1) - As reported in accordance with United States generally accepted accounting principles. |
Forward Air Corporation | |||||
Actual to Guidance EPS Bridge | |||||
Three months ended June 30, 2016 | |||||
(All EPS is diluted earnings per share) | |||||
Second quarter EPS as reported | $ | (0.330 | ) | ||
Impairment of goodwill, intangibles and other assets | 0.900 | ||||
Adjusted EPS | 0.570 | ||||
Variances from guidance assumptions: | |||||
Pool Distribution operating deficiencies | 0.018 | ||||
Intermodal revenue shortfall | 0.018 | ||||
TLX Expedited revenue shortfall | 0.004 | ||||
Expedited LTL network efficiencies | (0.020 | ) | |||
Total variances from guidance assumptions | 0.020 | ||||
Adjusted EPS with variances added back | 0.590 | ||||
Mid-point of original first quarter guidance | 0.590 | ||||
Remaining positive EPS variance | $ | — |
Forward Air Corporation | ||||||||||
Historical Operating Data - Unaudited | ||||||||||
2014 | ||||||||||
March 31 | June 30 | September 30 | December 31 | Average | ||||||
Expedited LTL | ||||||||||
Average linehaul pounds per week (1) | ||||||||||
(in thousands) | 35,057 | 36,965 | 37,877 | 39,883 | 37,445 | |||||
Number of terminals - Company-operated | 66 | 66 | 66 | 66 | 66 | |||||
Number of terminals - agent | 22 | 22 | 22 | 22 | 22 | |||||
Number of terminals - total | 88 | 88 | 88 | 88 | 88 | |||||
Average tractors - Company | 230 | 222 | 217 | 210 | 220 | |||||
Average leased tractors - Company | 1 | 1 | 1 | 1 | 1 | |||||
Average leased straight trucks - Company | 1 | 1 | 1 | 1 | 1 | |||||
Average tractors - owner-operator | 753 | 789 | 781 | 769 | 773 | |||||
Average tractors - total | 985 | 1,013 | 1,000 | 981 | 995 | |||||
Average trailers | 3,114 | 3,481 | 3,479 | 3,479 | 3,388 | |||||
Pool Distribution | ||||||||||
Number of terminals - Company-operated | 19 | 19 | 19 | 21 | 20 | |||||
Number of terminals - agent | 5 | 5 | 5 | 8 | 6 | |||||
Number of terminals - total | 24 | 24 | 24 | 29 | 26 | |||||
Average tractors - Company | 57 | 57 | 60 | 61 | 59 | |||||
Average leased tractors - Company | 2 | — | 4 | 4 | 3 | |||||
Average straight trucks & vans - Company | 162 | 162 | 161 | 158 | 161 | |||||
Average leased straight trucks - Company | 21 | 18 | 17 | 16 | 18 | |||||
Average tractors - owner-operator | 88 | 82 | 84 | 85 | 85 | |||||
Average straight trucks & vans - owner-operator | 74 | 69 | 78 | 91 | 78 | |||||
Average tractors - total | 404 | 388 | 404 | 415 | 404 | |||||
Average trailers | 126 | 126 | 126 | 126 | 126 | |||||
Truckload Expedited | ||||||||||
Average tractors - Company | 77 | 77 | 74 | 70 | 75 | |||||
Average tractors - owner-operator | 194 | 171 | 169 | 161 | 174 | |||||
Average tractors - total | 271 | 248 | 243 | 231 | 248 | |||||
Average trailers | 92 | 114 | 119 | 119 | 111 | |||||
(1) Includes pounds associated with linehaul shipments only. |
Forward Air Corporation | ||||||||||
Historical Operating Data - Unaudited | ||||||||||
2015 | ||||||||||
March 31 | June 30 | September 30 | December 31 | Average | ||||||
Expedited LTL | ||||||||||
Average linehaul pounds per week (1) | ||||||||||
(in thousands) | 41,262 | 50,803 | 48,208 | 48,530 | 46,787 | |||||
Number of terminals - Company-operated | 74 | 74 | 73 | 72 | 74 | |||||
Number of terminals - agent | 17 | 17 | 17 | 19 | 17 | |||||
Number of terminals - total | 91 | 91 | 90 | 91 | 91 | |||||
Average tractors - Company | 307 | 271 | 265 | 332 | 294 | |||||
Average leased tractors - Company | 72 | 73 | 73 | 66 | 71 | |||||
Average leased straight trucks - Company | 22 | 22 | 22 | 19 | 21 | |||||
Average tractors - owner-operator | 1,344 | 1,145 | 1,090 | 1,030 | 1,152 | |||||
Average tractors - total | 1,745 | 1,511 | 1,450 | 1,447 | 1,538 | |||||
Average trailers | 3,731 | 3,669 | 3,660 | 3,924 | 3,746 | |||||
Average leased trailers | 1,057 | 1,012 | 1,015 | 1,089 | 1,043 | |||||
Average trailers - total | 4,788 | 4,681 | 4,675 | 5,013 | 4,789 | |||||
Pool Distribution | ||||||||||
Number of terminals - Company-operated | 19 | 20 | 20 | 20 | 20 | |||||
Number of terminals - agent | 10 | 9 | 9 | 9 | 9 | |||||
Number of terminals - total | 29 | 29 | 29 | 29 | 29 | |||||
Average tractors - Company | 65 | 62 | 62 | 64 | 63 | |||||
Average leased tractors - Company | — | — | 7 | 45 | 13 | |||||
Average straight trucks & vans - Company | 156 | 180 | 177 | 159 | 168 | |||||
Average leased straight trucks - Company | 15 | 16 | 24 | 23 | 20 | |||||
Average tractors - owner-operator | 91 | 87 | 82 | 104 | 91 | |||||
Average straight trucks & vans - owner-operator | 81 | 100 | 118 | 126 | 106 | |||||
Average tractors - total | 408 | 445 | 470 | 521 | 461 | |||||
Average trailers | 126 | 126 | 126 | 73 | 113 | |||||
Truckload Expedited | ||||||||||
Average tractors - Company | 83 | 72 | 84 | 84 | 81 | |||||
Average tractors - owner-operator | 242 | 298 | 378 | 395 | 328 | |||||
Average tractors - total | 325 | 370 | 462 | 479 | 409 | |||||
Average trailers | 96 | 122 | 122 | 119 | 115 | |||||
(1) Includes pounds associated with linehaul shipments only. |
Forward Air Corporation | ||||||
Historical Operating Data - Unaudited | ||||||
2016 | ||||||
March 31 | June 30 | Average | ||||
Expedited LTL | ||||||
Average linehaul pounds per week (1) | ||||||
(in thousands) | 44,041 | 47,346 | 45,694 | |||
Number of terminals - Company-operated | 72 | 72 | 72 | |||
Number of terminals - agent | 19 | 19 | 19 | |||
Number of terminals - total | 91 | 91 | 91 | |||
Average tractors - Company | 330 | 294 | 312 | |||
Average leased tractors - Company | 62 | 30 | 46 | |||
Average leased straight trucks - Company | 17 | 1 | 9 | |||
Average tractors - owner-operator | 1,020 | 989 | 1,005 | |||
Average tractors - total | 1,429 | 1,314 | 1,372 | |||
Average trailers | 4,103 | 4,248 | 4,176 | |||
Average leased trailers | 1,012 | 1,011 | 1,012 | |||
Average trailers - total | 5,115 | 5,259 | 5,188 | |||
Pool Distribution | ||||||
Number of terminals - Company-operated | 20 | 19 | 20 | |||
Number of terminals - agent | 9 | 9 | 9 | |||
Number of terminals - total | 29 | 28 | 29 | |||
Average tractors - Company | 64 | 67 | 66 | |||
Average leased tractors - Company | 45 | 19 | 32 | |||
Average straight trucks & vans - Company | 151 | 146 | 149 | |||
Average leased straight trucks - Company | 23 | 72 | 48 | |||
Average tractors - owner-operator | 91 | 84 | 88 | |||
Average straight trucks & vans - owner-operator | 118 | 118 | 118 | |||
Average tractors - total | 492 | 506 | 501 | |||
Average trailers | 73 | 73 | 73 | |||
Truckload Expedited | ||||||
Average tractors - Company | 84 | 84 | 84 | |||
Average tractors - owner-operator | 360 | 329 | 345 | |||
Average tractors - total | 444 | 413 | 429 | |||
Average trailers | 119 | 97 | 108 | |||
(1) Includes pounds associated with linehaul shipments only. |
Three months ended March 31, 2014 | |||||||||||||||||||||||
Expedited LTL | Truckload Expedited | Pool Distribution | Intermodal | Eliminations and other operations | Consolidated | ||||||||||||||||||
Revenue | $ | 104,324 | $ | 29,914 | $ | 25,926 | $ | 12,406 | $ | (1,001 | ) | $ | 171,569 | ||||||||||
Purchased transportation | 42,676 | 20,243 | 7,122 | 4,317 | (807 | ) | 73,551 | ||||||||||||||||
Salaries, wages, and employee benefits | 25,281 | 3,834 | 9,340 | 2,923 | 44 | 41,422 | |||||||||||||||||
Operating leases | 4,986 | 130 | 2,477 | 758 | — | 8,351 | |||||||||||||||||
Depreciation and amortization | 3,851 | 1,194 | 1,284 | 681 | 3 | 7,013 | |||||||||||||||||
Insurance and claims | 2,469 | 605 | 785 | 268 | — | 4,127 | |||||||||||||||||
Fuel expense | 1,108 | 1,155 | 1,755 | 788 | — | 4,806 | |||||||||||||||||
Other operating expenses | 8,734 | 1,351 | 3,565 | 2,558 | (180 | ) | 16,028 | ||||||||||||||||
Total operating expenses | 89,105 | 28,512 | 26,328 | 12,293 | (940 | ) | 155,298 | ||||||||||||||||
Income from operations | $ | 15,219 | $ | 1,402 | $ | (402 | ) | $ | 113 | $ | (61 | ) | $ | 16,271 |
Three months ended June 30, 2014 | |||||||||||||||||||||||
Expedited LTL | Truckload Expedited | Pool Distribution | Intermodal | Eliminations and other operations | Consolidated | ||||||||||||||||||
Revenue | $ | 115,213 | $ | 34,266 | $ | 25,390 | $ | 20,014 | $ | (1,031 | ) | $ | 193,852 | ||||||||||
Purchased transportation | 46,853 | 23,240 | 6,594 | 6,921 | (774 | ) | 82,834 | ||||||||||||||||
Salaries, wages, and employee benefits | 26,317 | 4,111 | 9,261 | 4,664 | 38 | 44,391 | |||||||||||||||||
Operating leases | 4,822 | 81 | 2,000 | 1,262 | — | 8,165 | |||||||||||||||||
Depreciation and amortization | 4,129 | 1,380 | 1,422 | 817 | 3 | 7,751 | |||||||||||||||||
Insurance and claims | 1,714 | 467 | 518 | 405 | — | 3,104 | |||||||||||||||||
Fuel expense | 1,059 | 1,195 | 1,754 | 1,164 | — | 5,172 | |||||||||||||||||
Other operating expenses | 8,182 | 1,356 | 3,160 | 2,387 | (245 | ) | 14,840 | ||||||||||||||||
Total operating expenses | 93,076 | 31,830 | 24,709 | 17,620 | (978 | ) | 166,257 | ||||||||||||||||
Income from operations | $ | 22,137 | $ | 2,436 | $ | 681 | $ | 2,394 | $ | (53 | ) | $ | 27,595 |
Three months ended September 30, 2014 | |||||||||||||||||||||||
Expedited LTL | Truckload Expedited | Pool Distribution | Intermodal | Eliminations and other operations | Consolidated | ||||||||||||||||||
Revenue | $ | 119,000 | $ | 33,728 | $ | 28,812 | $ | 21,189 | $ | (1,252 | ) | $ | 201,477 | ||||||||||
Purchased transportation | 49,873 | 22,475 | 7,482 | 6,880 | (836 | ) | 85,874 | ||||||||||||||||
Salaries, wages, and employee benefits | 26,208 | 4,105 | 10,295 | 5,008 | 35 | 45,651 | |||||||||||||||||
Operating leases | 4,976 | 70 | 2,007 | 1,450 | — | 8,503 | |||||||||||||||||
Depreciation and amortization | 4,358 | 1,400 | 1,470 | 884 | 3 | 8,115 | |||||||||||||||||
Insurance and claims | 2,278 | 472 | 451 | 546 | — | 3,747 | |||||||||||||||||
Fuel expense | 944 | 1,101 | 1,765 | 1,202 | — | 5,012 | |||||||||||||||||
Other operating expenses | 9,690 | 1,476 | 4,004 | 2,899 | (400 | ) | 17,669 | ||||||||||||||||
Total operating expenses | 98,327 | 31,099 | 27,474 | 18,869 | (1,198 | ) | 174,571 | ||||||||||||||||
Income from operations | $ | 20,673 | $ | 2,629 | $ | 1,338 | $ | 2,320 | $ | (54 | ) | $ | 26,906 |
Three months ended December 31, 2014 | |||||||||||||||||||||||
Expedited LTL | Truckload Expedited | Pool Distribution | Intermodal | Eliminations and other operations | Consolidated | ||||||||||||||||||
Revenue | $ | 120,364 | $ | 35,360 | $ | 38,130 | $ | 22,338 | $ | (2,130 | ) | $ | 214,062 | ||||||||||
Purchased transportation | 52,601 | 24,255 | 10,154 | 6,898 | (1,591 | ) | 92,317 | ||||||||||||||||
Salaries, wages, and employee benefits | 28,150 | 4,049 | 12,924 | 5,427 | 91 | 50,641 | |||||||||||||||||
Operating leases | 5,022 | 93 | 2,473 | 1,386 | 1 | 8,975 | |||||||||||||||||
Depreciation and amortization | 4,316 | 1,393 | 1,539 | 1,000 | 6 | 8,254 | |||||||||||||||||
Insurance and claims | 2,325 | 589 | 1,353 | 489 | 2 | 4,758 | |||||||||||||||||
Fuel expense | 944 | 1,023 | 2,021 | 1,170 | — | 5,158 | |||||||||||||||||
Other operating expenses | 9,280 | 1,437 | 4,742 | 3,368 | (503 | ) | 18,324 | ||||||||||||||||
Total operating expenses | 102,638 | 32,839 | 35,206 | 19,738 | (1,994 | ) | 188,427 | ||||||||||||||||
Income from operations | $ | 17,726 | $ | 2,521 | $ | 2,924 | $ | 2,600 | $ | (136 | ) | $ | 25,635 |
Three months ended March 31, 2015 | |||||||||||||||||||||||
Expedited LTL | Truckload Expedited | Pool Distribution | Intermodal | Eliminations and other operations | Consolidated | ||||||||||||||||||
Revenue | $ | 122,207 | $ | 34,472 | $ | 27,224 | $ | 23,027 | $ | (1,012 | ) | $ | 205,918 | ||||||||||
Purchased transportation | 52,853 | 22,614 | 7,469 | 7,063 | (662 | ) | 89,337 | ||||||||||||||||
Salaries, wages, and employee benefits | 30,322 | 4,423 | 10,100 | 5,934 | 3,124 | 53,903 | |||||||||||||||||
Operating leases | 5,918 | 92 | 2,086 | 2,528 | 5,132 | 15,756 | |||||||||||||||||
Depreciation and amortization | 4,741 | 1,410 | 1,557 | 967 | 9 | 8,684 | |||||||||||||||||
Insurance and claims | 2,820 | 539 | 875 | 586 | 310 | 5,130 | |||||||||||||||||
Fuel expense | 935 | 894 | 1,286 | 901 | 4 | 4,020 | |||||||||||||||||
Other operating expenses | 9,733 | 1,289 | 3,635 | 3,059 | 3,123 | 20,839 | |||||||||||||||||
Total operating expenses | 107,322 | 31,261 | 27,008 | 21,038 | 11,040 | 197,669 | |||||||||||||||||
Income from operations | $ | 14,885 | $ | 3,211 | $ | 216 | $ | 1,989 | $ | (12,052 | ) | $ | 8,249 |
Three months ended June 30, 2015 | |||||||||||||||||||||||
Expedited LTL | Truckload Expedited | Pool Distribution | Intermodal | Eliminations and other operations | Consolidated | ||||||||||||||||||
Revenue | $ | 155,858 | $ | 39,395 | $ | 27,684 | $ | 27,494 | $ | (737 | ) | $ | 249,694 | ||||||||||
Purchased transportation | 66,006 | 25,298 | 7,549 | 8,965 | (336 | ) | 107,482 | ||||||||||||||||
Salaries, wages, and employee benefits | 39,335 | 4,715 | 10,575 | 6,187 | 1,074 | 61,886 | |||||||||||||||||
Operating leases | 8,368 | 83 | 2,120 | 2,898 | 4,808 | 18,277 | |||||||||||||||||
Depreciation and amortization | 5,563 | 1,513 | 1,485 | 948 | 10 | 9,519 | |||||||||||||||||
Insurance and claims | 2,419 | 852 | 926 | 675 | 1,368 | 6,240 | |||||||||||||||||
Fuel expense | 1,134 | 895 | 1,284 | 869 | 6 | 4,188 | |||||||||||||||||
Other operating expenses | 12,237 | 1,898 | 3,758 | 3,634 | 667 | 22,194 | |||||||||||||||||
Total operating expenses | 135,062 | 35,254 | 27,697 | 24,176 | 7,597 | 229,786 | |||||||||||||||||
Income from operations | $ | 20,796 | $ | 4,141 | $ | (13 | ) | $ | 3,318 | $ | (8,334 | ) | $ | 19,908 |
Three months ended September 30, 2015 | |||||||||||||||||||||||
Expedited LTL | Truckload Expedited | Pool Distribution | Intermodal | Eliminations and other operations | Consolidated | ||||||||||||||||||
Revenue | $ | 149,114 | $ | 38,515 | $ | 32,126 | $ | 28,889 | $ | (1,551 | ) | $ | 247,093 | ||||||||||
Purchased transportation | 61,727 | 25,542 | 8,784 | 9,414 | (1,033 | ) | 104,434 | ||||||||||||||||
Salaries, wages, and employee benefits | 34,260 | 4,501 | 12,077 | 6,151 | 2,036 | 59,025 | |||||||||||||||||
Operating leases | 9,828 | 419 | 2,658 | 3,328 | 839 | 17,072 | |||||||||||||||||
Depreciation and amortization | 5,283 | 1,561 | 1,445 | 943 | 167 | 9,399 | |||||||||||||||||
Insurance and claims | 2,715 | 807 | 887 | 686 | 66 | 5,161 | |||||||||||||||||
Fuel expense | 1,001 | 783 | 1,314 | 727 | 1 | 3,826 | |||||||||||||||||
Other operating expenses | 12,706 | 1,732 | 4,406 | 4,104 | 627 | 23,575 | |||||||||||||||||
Total operating expenses | 127,520 | 35,345 | 31,571 | 25,353 | 2,703 | 222,492 | |||||||||||||||||
Income from operations | $ | 21,594 | $ | 3,170 | $ | 555 | $ | 3,536 | $ | (4,254 | ) | $ | 24,601 |
Three months ended December 31, 2015 | |||||||||||||||||||||||
Expedited LTL | Truckload Expedited | Pool Distribution | Intermodal | Eliminations and other operations | Consolidated | ||||||||||||||||||
Revenue | $ | 149,731 | $ | 40,936 | $ | 42,953 | $ | 24,881 | $ | (2,081 | ) | $ | 256,420 | ||||||||||
Purchased transportation | 61,908 | 27,570 | 11,213 | 8,314 | (1,489 | ) | 107,516 | ||||||||||||||||
Salaries, wages, and employee benefits | 37,568 | 5,222 | 15,778 | 6,059 | 1,162 | 65,789 | |||||||||||||||||
Operating leases | 8,410 | 197 | 3,463 | 3,030 | 67 | 15,167 | |||||||||||||||||
Depreciation and amortization | 5,407 | 1,671 | 1,476 | 923 | 79 | 9,556 | |||||||||||||||||
Insurance and claims | 2,467 | 726 | 1,083 | 621 | 54 | 4,951 | |||||||||||||||||
Fuel expense | 880 | 774 | 1,532 | 682 | 1 | 3,869 | |||||||||||||||||
Other operating expenses | 11,511 | 2,009 | 5,007 | 2,146 | (116 | ) | 20,557 | ||||||||||||||||
Total operating expenses | 128,151 | 38,169 | 39,552 | 21,775 | (242 | ) | 227,405 | ||||||||||||||||
Income from operations | $ | 21,580 | $ | 2,767 | $ | 3,401 | $ | 3,106 | $ | (1,839 | ) | $ | 29,015 |
Three months ended March 31, 2016 | |||||||||||||||||||||||
Expedited LTL | Truckload Expedited | Pool Distribution | Intermodal | Eliminations and other operations | Consolidated | ||||||||||||||||||
Revenue | $ | 134,379 | $ | 38,620 | $ | 33,192 | $ | 24,624 | $ | (1,266 | ) | $ | 229,549 | ||||||||||
Purchased transportation | 53,441 | 26,561 | 8,877 | 8,433 | (836 | ) | 96,476 | ||||||||||||||||
Salaries, wages, and employee benefits | 34,884 | 4,972 | 12,707 | 5,989 | 126 | 58,678 | |||||||||||||||||
Operating leases | 8,038 | 78 | 2,880 | 3,008 | (136 | ) | 13,868 | ||||||||||||||||
Depreciation and amortization | 5,531 | 1,750 | 1,497 | 890 | — | 9,668 | |||||||||||||||||
Insurance and claims | 2,768 | 865 | 1,165 | 868 | (271 | ) | 5,395 | ||||||||||||||||
Fuel expense | 720 | 626 | 1,022 | 593 | — | 2,961 | |||||||||||||||||
Other operating expenses | 11,913 | 2,203 | 4,930 | 2,471 | (419 | ) | 21,098 | ||||||||||||||||
Total operating expenses | 117,295 | 37,055 | 33,078 | 22,252 | (1,536 | ) | 208,144 | ||||||||||||||||
Income from operations | $ | 17,084 | $ | 1,565 | $ | 114 | $ | 2,372 | $ | 270 | $ | 21,405 |
Three months ended June 30, 2016 | |||||||||||||||||||||||
Expedited LTL | Truckload Expedited | Pool Distribution | Intermodal | Eliminations and other operations | Consolidated | ||||||||||||||||||
Revenue | $ | 144,693 | $ | 39,440 | $ | 31,525 | $ | 24,189 | $ | (1,210 | ) | $ | 238,637 | ||||||||||
Purchased transportation | 55,744 | 27,364 | 8,590 | 8,401 | (832 | ) | 99,267 | ||||||||||||||||
Salaries, wages, and employee benefits | 33,942 | 4,530 | 11,935 | 6,045 | 566 | 57,018 | |||||||||||||||||
Operating leases | 8,490 | 103 | 3,059 | 2,943 | 6 | 14,601 | |||||||||||||||||
Depreciation and amortization | 5,278 | 1,724 | 1,464 | 875 | — | 9,341 | |||||||||||||||||
Insurance and claims | 3,367 | 994 | 975 | 528 | 784 | 6,648 | |||||||||||||||||
Fuel expense | 814 | 565 | 1,073 | 547 | — | 2,999 | |||||||||||||||||
Other operating expenses | 12,137 | 2,000 | 4,800 | 2,093 | (361 | ) | 20,669 | ||||||||||||||||
Impairment of goodwill, intangibles and other assets | — | 42,442 | — | — | — | 42,442 | |||||||||||||||||
Total operating expenses | 119,772 | 79,722 | 31,896 | 21,432 | 163 | 252,985 | |||||||||||||||||
Income from operations | $ | 24,921 | $ | (40,282 | ) | $ | (371 | ) | $ | 2,757 | $ | (1,373 | ) | $ | (14,348 | ) |
&UP1SIM;V1E/2)#35E+(B!X;7!'.G1Y<&4](E!2
M3T-%4U,B('AM<$ &UP
M1SIC>6%N/2(P+C P,# P,"(@>&UP1SIM86=E;G1A/2(P+C P,# P,"(@>&UP
M1SIY96QL;W<](C N,# P,# P(B!X;7!'.F)L86-K/2(V.2XY.3DW,# B+SX-
M"@D)"0D)"0D)"3QR9&8Z;&D@>&UP1SIS=V%T8VA.86UE/2)#/3 @33TP(%D]
M,"!+/38P(B!X;7!'.FUO9&4](D--64LB('AM<$1C/Z9HJW2**M&!(H9X
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M^Z]UN;_\(_OCY_%>U?EK\I
]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[
MKW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=>]^Z]U[W[KW7O?NO=-
M6=S>*VUA,QN/.UL.-PFW\5D,WF