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Form 8-K FORWARD AIR CORP For: Jul 21

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July 21, 2016 4:08 PM EDT



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549

________________________

FORM 8-K
______________
 

CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 21, 2016 (July 21, 2016)

 
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)

 
Registrant's telephone number, including area code: (423) 636-7000

 
Not Applicable
(Former name or former address, if changed since last report)

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 





SECTION 2.  FINANCIAL INFORMATION.
 
Item 2.02.  Results of Operations and Financial Condition.
 
Attached as Exhibit 99.1 and incorporated herein by reference is a copy of a press release, dated July 21, 2016, announcing the financial results of Forward Air Corporation for the three and six months ended June 30, 2016.

Also, attached as Exhibit 99.2 are certain historical operating statistics for each quarter ended from March 31, 2014 through June 30, 2016.

In addition, attached as Exhibit 99.3 are summary segment statement of operations for each quarter ended from March 31, 2014 through June 30, 2016. These statement of operations reflect the new segment reporting structure implemented during the first quarter of 2016.

SECTION 9.  FINANCIAL STATEMENTS AND EXHIBITS.
 
Item 9.01.  Financial Statements and Exhibits.
 
(d) Exhibits. The following exhibits are being furnished as part of this 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





  SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 
 
 
FORWARD AIR CORPORATION
Date: July 21, 2016
 
By: 
/s/ Michael J. Morris
 
 
 
Michael J. Morris
Chief Financial Officer, Senior Vice President and Treasurer

 
 


 

 




EXHIBIT INDEX
 
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





NEWS RELEASE
FORWARD AIR CORPORATION REPORTS
SECOND QUARTER 2016 RESULTS AND
QUARTERLY CASH DIVIDEND


GREENEVILLE, Tenn.- (BUSINESS WIRE) - July 21, 2016 - Forward Air Corporation (NASDAQ: FWRD) today reported operating results for the three and six months ended June 30, 2016.

Operating revenue for the quarter ended June 30, 2016 decreased 4.4% to $238.6 million from $249.7 million for the same quarter in 2015. Loss from operations was $14.3 million, which includes a one-time non-cash charge of $42.4 million primarily resulting from intangible asset impairments related to the Company’s TQI acquisition. This loss compares to income from operations of $19.9 million in the prior-year quarter. Net loss during the period was $10.1 million compared to net income of $11.8 million in the second quarter of 2015. Net loss per share for the second quarter of 2016 was $0.33 compared to net income per diluted share of $0.38 in the prior-year quarter. Net of tax effects, the TQI impairment charge accounted for $27.4 million or $0.90 per diluted share of the second quarter of 2016 net loss.

During its customary second quarter evaluation of goodwill and intangibles, the Company determined that the fair values of its TQI goodwill and other intangibles were below their carrying values. In accordance with GAAP, the Company recorded the aforementioned charge. This one-time non-cash charge has no impact on the Company’s business operations, liquidity, credit facilities or compliance with existing debt covenants.

Income from operations, adjusted to exclude the $42.4 million impairment charge in the second quarter of 2016 and $6.9 million in Towne deal and integration costs in the second quarter of 2015, increased to $28.1 million for the second quarter of 2016 from $26.8 million for the second quarter of 2015.  Adjusted net income increased to $17.3 million during the second quarter of 2016 from $16.0 million in the prior-year quarter. Similarly, adjusted earnings per diluted share for the second quarter of 2016 increased to $0.57 compared with $0.51 in the prior-year quarter.

A tabular reconciliation detailing the adjustments made to arrive at the adjusted financial results set forth above from financial results determined in accordance with United States generally accepted accounting principles is contained in the financial summary statements attached to this press release.

Bruce A. Campbell, Chairman, President, and CEO, commenting on the second quarter results said, “Our Expedited LTL group posted an 82.8 operating ratio for the quarter, reflecting better overall linehaul pricing and outstanding operating efficiencies as we realize the benefits of the Towne integration. Within our Truckload Expedited business segment, TLX performed well while TQI, without regard to the impairment charge, continues to make slow albeit steady progress. While our Intermodal group was able to adjust to a macro driven decline in revenue and largely maintain its relative profitability, our Pool segment posted a slight net loss addressing its second quarter revenue growth.”

Commenting further, Mr. Campbell said, “In spite of a sluggish economic outlook, we feel that we are well positioned going into the second half of the year. In the meantime, any incremental pick up in freight volumes should be meaningful to the bottom line.”

In closing Mr. Campbell said, “As always I would like to thank all of our employees and independent contractors for the hard work that made these results possible. With their ongoing support and commitment, our team looks forward to bringing continued value to our shareholders.”





Commenting on the Company’s third quarter guidance, Michael J. Morris, Senior Vice President and CFO, said, “Reflecting the outlook Bruce mentioned in his commentary, we expect third quarter year-over-year revenue growth to be in the range of 1% to 5%. We expect adjusted income per diluted share for the third quarter of 2016 to be between $0.61 and $0.65 per share compared to an adjusted $0.58 per share in the third quarter of 2015. Included in this range is an estimated $0.03 per share negative impact from lower fuel surcharges.”

On July 21, 2016, 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 22, 2016, and is expected to be paid on September 6, 2016.

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.

Also, on July 21, 2016, our Board of Directors approved a stock repurchase authorization for up to three million shares of the Company’s common stock. In connection with this action, the board canceled the Company’s 2014 share repurchase authorization. The amount and timing of any repurchases under the Company’s new repurchase authorization will be at such prices as determined by management of the Company. Repurchases of common stock may also be made under a Rule 10b5-1 plan, which would permit common stock to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. Share repurchases may be commenced or suspended from time to time for any reason. The Company currently has approximately 30,020,187 shares outstanding.

Year to date through July 2016, the Company has returned approximately $37.3 million to shareholders by paying approximately $7.3 million in dividends and repurchasing approximately $30.0 million of common stock.

Review of Financial Results

Forward Air will hold a conference call to discuss second quarter 2016 results on Friday, July 22, 2016 at 9:00 a.m. EDT. The Company's conference call will be available online at www.forwardair.com or by dialing (800) 230-1059. 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's services can be classified into four segments: Expedited LTL, Expedited Truckload Services (“TLX”), Intermodal and Pool Distribution.

In our Expedited LTL segment, we provide time-definite transportation services to the North American deferred air freight market. Our Expedited LTL service operates a comprehensive national network for the time-definite surface transportation of expedited ground freight. The Expedited LTL service offers customers local pick-up and delivery and scheduled surface transportation of cargo as a cost effective, reliable alternative to air transportation. Expedited LTL’s other services include shipment consolidation and deconsolidation, warehousing, customs brokerage, and other handling. The Expedited LTL segment primarily provides its transportation services through a network of terminals located at or near airports in the United States and Canada.

In our TLX segment we provide expedited truckload brokerage, dedicated fleet services and maximum security and temperature-controlled logistics services. We are able to expedite this service by utilizing a dedicated fleet of team owner operators, some team company drivers as well as third-party transportation providers. The TLX segment provides full truckload service in the United States and Canada.

In our Intermodal segment, we provide container and intermodal drayage services primarily within the Midwest region of the United States. Drayage is essentially the first and last mile of the movement of an intermodal container. We are providing this service both to and from ports and rail heads. Our Intermodal segment also provides dedicated contract and Container Freight Station (“CFS”) warehouse and handling services. Today our Intermodal segment operates primarily in the Midwest but through acquisition as well as green-field start-ups we anticipate moving into other geographies within the United States.

In our Pool Distribution segment, we provide pool distribution services throughout the Mid-Atlantic, Southeast, Midwest and Southwest continental United States. Pool Distribution involves managing high-frequency handling and distribution of time-sensitive product to numerous destinations in specific geographic regions. Our primary customers for this service are regional and nationwide distributors and retailers, such as mall, strip mall and outlet based retail chains.





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






Forward Air Corporation Reconciliation to U.S. GAAP

The Company believes that meaningful analysis of our financial performance in 2016 and 2015 requires an understanding of the factors underlying that performance, including an understanding of items that are not on-going and directly the result of our acquisition activity. We believe that excluding intangible asset impairment costs related to the TQI segment for the three and six months ended June 30, 2016 and integration costs related to Towne Air from our results for the three and six months ended June 30, 2015 will assist investors in understanding our core operating performance and allow for more accurate comparisons of results. As required by SEC rules, the tables below present, for the periods indicated, a reconciliation of our presented adjusted non-GAAP measures to the most directly comparable GAAP measures.

(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
 
$
—






Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding expected operating results, such as revenue growth and earnings, and guidance relating to income per diluted share for the second quarter.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: 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.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.


SOURCE: Forward Air Corporation

Forward Air Corporation
Michael J. Morris, 423-636-7175






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.
 
 





Forward Air Corporation
Summary Segment Results of Operations
(In thousands)
(Unaudited)

 
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






Forward Air Corporation
Summary Segment Results of Operations
(In thousands)
(Unaudited)

 
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






Forward Air Corporation
Summary Segment Results of Operations
(In thousands)
(Unaudited)

 
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






Forward Air Corporation
Summary Segment Results of Operations
(In thousands)
(Unaudited)

 
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






Forward Air Corporation
Summary Segment Results of Operations
(In thousands)
(Unaudited)

 
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






Forward Air Corporation
Summary Segment Results of Operations
(In thousands)
(Unaudited)

 
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






Forward Air Corporation
Summary Segment Results of Operations
(In thousands)
(Unaudited)

 
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






Forward Air Corporation
Summary Segment Results of Operations
(In thousands)
(Unaudited)

 
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






Forward Air Corporation
Summary Segment Results of Operations
(In thousands)
(Unaudited)

 
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






Forward Air Corporation
Summary Segment Results of Operations
(In thousands)
(Unaudited)

 
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
)




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