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Form 8-K FORWARD AIR CORP For: Oct 20

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October 20, 2016 4:11 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): October 20, 2016 (October 20, 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 October 20, 2016, announcing the financial results of Forward Air Corporation for the three and nine months ended September 30, 2016.

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

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

The information in this Item 2.02, including Exhibit 99.1, 99.2 and 99.3 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

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 October 20, 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: October 20, 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 October 20, 2016

No.
 
Exhibit
99.2
Forward Air Corporation Historical Operating Statistics

No.
 
Exhibit
99.3
2016 Summary Segment Statement of Operations





corplogo.jpg
NEWS RELEASE
FORWARD AIR CORPORATION REPORTS
THIRD QUARTER 2016 RESULTS


GREENEVILLE, Tenn.- (BUSINESS WIRE) - October 20, 2016 - Forward Air Corporation (NASDAQ: FWRD) today reported operating revenue, income from operations, net income and diluted earnings per share for the three and nine months ended September 30, 2016.

Operating revenue for the quarter ended September 30, 2016 increased 1.0% to $249.6 million from $247.1 million for the same quarter in 2015. Income from operations was $24.7 million, compared to $24.6 million in the prior-year quarter. Net income during the period was $11.9 million compared to $15.7 million in the third quarter of 2015. Net income per diluted share for the third quarter of 2016 was $0.39 compared to $0.50 in the prior-year quarter.

Third quarter income from operations of $24.7 million was not adjusted, and compares to adjusted income from operations of $28.5 million for the third quarter of 2015. Adjusted net income decreased to $15.5 million during the third quarter of 2016 from $17.0 million in the prior-year quarter. Similarly, adjusted earnings per diluted share for the third quarter of 2016 decreased to $0.51 compared to $0.54 in the prior-year quarter. A tabular reconciliation of non-GAAP financial measures to reported results prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) is contained in the financial summary statements attached to this press release.

Bruce A. Campbell, Chairman, President, and CEO, commenting on the third quarter results said, “Our third quarter results were in line with our revised guidance and reflected the impact of a sluggish economic environment. The Expedited LTL team did a good job managing costs and preserving margin despite soft volumes, which improved towards the end of the quarter. Expedited Truckload Services continued to grow its revenue, but it faced margin pressure due to loose truckload capacity. Our Intermodal group delivered solid revenue and operating income in a very challenging import market, while our Pool Distribution segment posted a slight revenue gain as it ramped up its recent new business wins.”

Commenting on the Company’s fourth quarter guidance, Michael J. Morris, Senior Vice President and CFO, said, “In light of the weak economic backdrop, and the fact that the fourth quarter of 2016 has one less operating day than the prior year quarter, we expect fourth quarter year-over-year revenue growth will be flat to down 4%. We expect net income per diluted share for the fourth quarter of 2016 to be between $0.37 and $0.41, compared to $0.75 in the prior-year quarter which included a $0.15 tax benefit. On an adjusted basis, we expect adjusted net income per diluted share to be between $0.53 and $0.57, compared to $0.61 in the prior-year quarter.”


Review of Financial Results

Forward Air will hold a conference call to discuss third quarter 2016 results on Friday, October 21, 2016 at 9:00 a.m. EDT. The Company’s conference call will be available online at www.forwardair.com or by dialing (800) 230-1074. 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 (“the Company”, “we”, “our”) services are classified into four principal reportable 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.

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
 
Nine months ended
 
September 30,
2016
 
September 30,
2015
 
September 30,
2016
 
September 30,
2015
Operating revenue:
 
 
 
 
 
 
 
Expedited LTL
$
144,337

 
$
149,212

 
$
423,410

 
$
427,277

Expedited Truckload
42,210

 
38,528

 
120,270

 
112,395

Pool Distribution
36,437

 
32,133

 
101,153

 
87,040

Intermodal
27,579

 
28,890

 
76,391

 
79,412

Eliminations and other operations
(1,011
)
 
(1,670
)
 
(3,487
)
 
(3,419
)
Operating revenue
249,552

 
247,093

 
717,737

 
702,705

 
 
 
 
 
 
 
 
Operating expenses:
 

 
 

 
 

 
 

Purchased transportation
105,039

 
104,434

 
300,783

 
301,253

Salaries, wages and employee benefits
60,161

 
59,025

 
175,857

 
174,815

Operating leases
16,215

 
17,072

 
44,684

 
51,105

Depreciation and amortization
9,399

 
9,399

 
28,409

 
27,601

Insurance and claims
7,170

 
5,161

 
19,213

 
16,531

Fuel expense
3,416

 
3,826

 
9,375

 
12,034

Other operating expenses
23,452

 
23,575

 
65,218

 
66,608

Impairment of goodwill, intangibles and other assets
—

 
—

 
42,442

 
—

Total operating expenses
224,852

 
222,492

 
685,981

 
649,947

Operating (loss) income:
 
 
 
 
 
 
 
Expedited LTL
21,014

 
21,594

 
63,026

 
57,275

Expedited Truckload
2,038

 
3,170

 
(36,679
)
 
10,521

Pool Distribution
66

 
555

 
(191
)
 
758

Intermodal
3,041

 
3,536

 
8,170

 
8,843

Other operations
(1,459
)
 
(4,254
)
 
(2,570
)
 
(24,639
)
Income from operations
24,700

 
24,601

 
31,756

 
52,758

 
 
 
 
 
 
 
 
Other income (expense):
 

 
 

 
 

 
 

Interest expense
(216
)
 
(554
)
 
(1,230
)
 
(1,489
)
Other, net
(4
)
 
10

 
(149
)
 
(127
)
Total other income (expense)
(220
)
 
(544
)
 
(1,379
)
 
(1,616
)
Income before income taxes
24,480

 
24,057

 
30,377

 
51,142

Income tax expense
12,549

 
8,370

 
15,413

 
18,795

Net income and comprehensive income
$
11,931

 
$
15,687

 
$
14,964

 
$
32,347

 
 
 
 
 
 
 
 
Net income per share:
 

 
 

 
 

 
 

Basic
$
0.39

 
$
0.51

 
$
0.49

 
$
1.04

Diluted
$
0.39

 
$
0.50

 
$
0.49

 
$
1.03

 
 
 
 
 
 
 
 
Dividends per share:
$
0.12

 
$
0.12

 
$
0.36

 
$
0.36






Expedited LTL Segment Information
(In millions)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
September 30,
 
Percent of
 
September 30,
 
Percent of
 
 
 
Percent
 
2016
 
Revenue
 
2015
 
Revenue
 
Change
 
Change
Operating revenue
$
144.3

 
100.0
%
 
$
149.2

 
100.0
%
 
$
(4.9
)
 
(3.3
)%
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Purchased transportation
56.3

 
39.0

 
61.7

 
41.4

 
(5.4
)
 
(8.8
)
Salaries, wages and employee benefits
33.8

 
23.4

 
35.7

 
23.9

 
(1.9
)
 
(5.3
)
Operating leases
9.0

 
6.2

 
8.4

 
5.6

 
0.6

 
7.1

Depreciation and amortization
5.5

 
3.8

 
5.4

 
3.6

 
0.1

 
1.9

Insurance and claims
3.9

 
2.7

 
2.6

 
1.7

 
1.3

 
50.0

Fuel expense
0.8

 
0.6

 
1.0

 
0.7

 
(0.2
)
 
(20.0
)
Other operating expenses
14.0

 
9.7

 
12.8

 
8.6

 
1.2

 
9.4

Total operating expenses
123.3

 
85.4

 
127.6

 
85.5

 
(4.3
)
 
(3.4
)
Income from operations
$
21.0

 
14.6
%
 
$
21.6

 
14.5
%
 
$
(0.6
)
 
(2.8
)%
Expedited LTL Operating Statistics
 
 
 
 
 
 
 
Three months ended
 
September 30,
 
September 30,
 
Percent
 
2016
 
2015
 
Change
 
 
 
 
 
 
Operating ratio
85.4
%
 
85.5
%
 
(0.1
)%
 
 
 
 
 
 
Business days
64.0

 
64.0

 
—

Business weeks
12.8

 
12.8

 
—

 
 
 
 
 
 
Expedited LTL:
 
 
 
 
 
Tonnage
 
 
 
 
 
    Total pounds ¹
588,929

 
617,066

 
(4.6
)
    Average weekly pounds ¹
46,010

 
48,208

 
(4.6
)
 
 
 
 
 
 
Linehaul shipments
 
 
 
 
 
    Total linehaul
909,787

 
952,720

 
(4.5
)
    Average weekly
71,077

 
74,431

 
(4.5
)
 
 
 
 
 
 
Forward Air Complete shipments
195,594

 
223,143

 
(12.3
)
As a percentage of linehaul shipments
21.5
%
 
23.4
%
 
(8.1
)
 
 
 
 
 
 
Average linehaul shipment size
647

 
648

 
(0.2
)
 
 
 
 
 
 
Revenue per pound 2
 
 
 
 
 
    Linehaul yield
$
17.71

 
$
17.07

 
3.0

    Fuel surcharge impact
1.06

 
1.16

 
(0.5
)
    Forward Air Complete impact
3.49

 
3.44

 
0.2

Total Expedited LTL yield
$
22.26

 
$
21.67

 
2.7
 %
 
 
 
 
 
 
¹ - In thousands
 
 
 
 
 
2 - In dollars per hundred pound; percentage change is expressed as a percent of total yield.





Expedited Truckload Services Segment Information
(In millions)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
September 30,
 
Percent of
 
September 30,
 
Percent of
 
 
 
Percent
 
2016
 
Revenue
 
2015
 
Revenue
 
Change
 
Change
Operating revenue
$
42.2

 
100.0
%
 
$
38.5

 
100.0
%
 
$
3.7

 
9.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Purchased transportation
29.7

 
70.4

 
25.5

 
66.2

 
4.2

 
16.5

Salaries, wages and employee benefits
4.9

 
11.6

 
4.7

 
12.2

 
0.2

 
4.3

Operating leases
0.1

 
0.2

 
0.2

 
0.5

 
(0.1
)
 
(50.0
)
Depreciation and amortization
1.5

 
3.6

 
1.6

 
4.2

 
(0.1
)
 
(6.3
)
Insurance and claims
1.1

 
2.6

 
0.8

 
2.1

 
0.3

 
37.5

Fuel expense
0.7

 
1.7

 
0.8

 
2.1

 
(0.1
)
 
(12.5
)
Other operating expenses
2.2

 
5.2

 
1.7

 
4.4

 
0.5

 
29.4

Total operating expenses
40.2

 
95.3

 
35.3

 
91.7

 
4.9

 
13.9

Income from operations
$
2.0

 
4.7
%
 
$
3.2

 
8.3
%
 
$
(1.2
)
 
(37.5
)%

Expedited Truckload Services Operating Statistics
 
 
 
Three months ended
 
September 30,
 
September 30,
 
Percent
 
2016
 
2015
 
Change
 
 
 
 
 
 
    Company driver 1
1,761

 
1,795

 
(1.9
)%
    Owner operator 1
13,125

 
10,614

 
23.7

    Third party 1
8,339

 
6,967

 
19.7

Total Miles
23,225

 
19,376

 
19.9

 
 
 
 
 
 
Revenue per mile
$
1.78

 
$
1.92

 
(7.3
)
 
 
 
 
 
 
Cost per mile
$
1.37

 
$
1.40

 
(2.1
)%
 
 
 
 
 
 
¹ - In thousands
 
 
 
 
 





Pool Distribution Segment Information
(In millions)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
September 30,
 
Percent of
 
September 30,
 
Percent of
 
 
 
Percent
 
2016
 
Revenue
 
2015
 
Revenue
 
Change
 
Change
Operating revenue
$
36.4

 
100.0
%
 
$
32.1

 
100.0
%
 
$
4.3

 
13.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Purchased transportation
10.1

 
27.7

 
8.8

 
27.4

 
1.3

 
14.8

Salaries, wages and employee benefits
14.4

 
39.6

 
12.2

 
38.0

 
2.2

 
18.0

Operating leases
3.3

 
9.1

 
2.6

 
8.1

 
0.7

 
26.9

Depreciation and amortization
1.4

 
3.8

 
1.4

 
4.4

 
—

 
—

Insurance and claims
1.0

 
2.7

 
0.9

 
2.8

 
0.1

 
11.1

Fuel expense
1.2

 
3.3

 
1.3

 
4.0

 
(0.1
)
 
(7.7
)
Other operating expenses
4.9

 
13.5

 
4.4

 
13.7

 
0.5

 
11.4

Total operating expenses
36.3

 
99.7

 
31.6

 
98.4

 
4.7

 
14.9

Income from operations
$
0.1

 
0.3
%
 
$
0.5

 
1.6
%
 
$
(0.4
)
 
(80.0
)%






Intermodal Segment Information
(In millions)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
September 30,
 
Percent of
 
September 30,
 
Percent of
 
 
 
Percent
 
2016
 
Revenue
 
2015
 
Revenue
 
Change
 
Change
Operating revenue
$
27.6

 
100.0
%
 
$
28.9

 
100.0
%
 
$
(1.3
)
 
(4.5
)%
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses:

 
 
 
 
 
 
 
 
 
 
Purchased transportation
9.7

 
35.1

 
9.4

 
32.5

 
0.3

 
3.2

Salaries, wages and employee benefits
6.6

 
23.9

 
6.2

 
21.5

 
0.4

 
6.5

Operating leases
3.3

 
12.0

 
3.3

 
11.4

 
—

 
—

Depreciation and amortization
1.0

 
3.6

 
1.0

 
3.5

 
—

 
—

Insurance and claims
0.8

 
2.9

 
0.7

 
2.4

 
0.1

 
14.3

Fuel expense
0.7

 
2.5

 
0.7

 
2.4

 
—

 
—

Other operating expenses
2.5

 
9.1

 
4.1

 
14.2

 
(1.6
)
 
(39.0
)
Total operating expenses
24.6

 
89.1

 
25.4

 
87.9

 
(0.8
)
 
(3.1
)
Income from operations
$
3.0

 
10.9
%
 
$
3.5

 
12.1
%
 
$
(0.5
)
 
(14.3
)%






Forward Air Corporation
Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
September 30,
2016
 
December 31, 2015 (a)
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
11,312

 
$
33,312

Accounts receivable, net
115,327

 
109,165

Other current assets
17,321

 
30,980

Total current assets
143,960

 
173,457

 
 
 
 
Property and equipment
369,582

 
343,147

Less accumulated depreciation and amortization
172,348

 
155,859

Net property and equipment
197,234

 
187,288

Goodwill and other acquired intangibles:
 

 
 

Goodwill
184,675

 
205,609

Other acquired intangibles, net of accumulated amortization
109,041

 
127,800

Total net goodwill and other acquired intangibles
293,716

 
333,409

Other assets
6,603

 
5,778

Total assets
$
641,513

 
$
699,932

 
 
 
 
Liabilities and Shareholders’ Equity
 

 
 

Current liabilities:
 

 
 

Accounts payable
$
18,415

 
$
23,334

Accrued expenses
30,843

 
29,823

Current portion of debt and capital lease obligations
41,866

 
55,887

Total current liabilities
91,124

 
109,044

 
 
 
 
Debt and capital lease obligations, less current portion
814

 
28,617

Other long-term liabilities
14,726

 
12,340

Deferred income taxes
39,007

 
39,876

 
 

 
 

Shareholders’ equity:
 

 
 

Common stock
303

 
305

Additional paid-in capital
174,450

 
160,855

Retained earnings
321,089

 
348,895

Total shareholders’ equity
495,842

 
510,055

Total liabilities and shareholders’ equity
$
641,513

 
$
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

September 30, 2016

September 30, 2015
Operating activities:



Net income
$
11,931


$
15,687

Adjustments to reconcile net income to net cash provided by operating activities
 



Depreciation and amortization
9,399


9,399

Share-based compensation
2,093


1,886

Loss on disposal of property and equipment
111


30

Provision for recovery on receivables
280


380

Provision for revenue adjustments
365


1,549

Deferred income tax (benefit) expense
(220
)

6,044

Excess tax benefit for stock options exercised
(50
)

—

Changes in operating assets and liabilities





Accounts receivable
(6,716
)

5,753

Prepaid expenses and other current assets
14,878


1,679

Accounts payable and accrued expenses
1,329


(3,654
)
Net cash provided by operating activities
33,400


38,753







Investing activities:





Proceeds from disposal of property and equipment
695


577

Purchases of property and equipment
(12,684
)

(6,579
)
Acquisition of business, net of cash acquired
(10,100
)

—

Other
(71
)

(33
)
Net cash used in investing activities
(22,160
)

(6,035
)






Financing activities:





Payments of debt and capital lease obligations
(13,942
)
 
(14,104
)
Proceeds from exercise of stock options
5,947

 
—

Payments of cash dividends
(3,653
)
 
(3,700
)
Repurchase of common stock (repurchase program)
(9,995
)
 
(9,996
)
Excess tax benefit for stock options exercised
50

 
—

Cash settlement of share-based awards for minimum tax withholdings
(14
)
 
(5
)
Net cash used in financing activities
(21,607
)

(27,805
)
Net (decrease) increase in cash
(10,367
)

4,913

Cash at beginning of period
21,679


42,531

Cash at end of period
$
11,312


$
47,444






Forward Air Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
 
 
Nine months ended
 
September 30, 2016
 
September 30, 2015
Operating activities:
 
 
 
Net income
$
14,964

 
$
32,347

Adjustments to reconcile net income to net cash provided by operating activities
 
 
 
Depreciation and amortization
28,409

 
27,601

Impairment of goodwill, intangible and other assets
42,442

 
—

Share-based compensation
6,204

 
5,562

Loss (gain) on disposal of property and equipment
201

 
(3
)
Provision for loss on receivables
268

 
463

Provision for revenue adjustments
1,570

 
3,391

Deferred income tax
661

 
5,546

Excess tax benefit for stock options exercised
(137
)
 
(2,365
)
Changes in operating assets and liabilities
 
 
 
Accounts receivable
(8,000
)
 
866

Other current assets
13,083

 
(1,531
)
Accounts payable and accrued expenses
(5,057
)
 
(14,562
)
Net cash provided by operating activities
94,608

 
57,315

 
 
 
 
Investing activities:
 
 
 
Proceeds from disposal of property and equipment
1,795

 
1,200

Purchases of property and equipment
(28,725
)
 
(18,541
)
Acquisition of business, net of cash acquired
(11,800
)
 
(61,878
)
Other
(673
)
 
(598
)
Net cash used in investing activities
(39,403
)
 
(79,817
)
 
 
 
 
Financing activities:
 
 
 
Proceeds from term loan
—

 
125,000

Payments of debt and capital lease obligations
(41,825
)
 
(87,367
)
Proceeds from exercise of stock options
7,041

 
11,351

Payments of cash dividends
(10,987
)
 
(11,133
)
Repurchase of common stock (repurchase program)
(29,986
)
 
(9,996
)
Common stock issued under employee stock purchase plan
215

 
228

Excess tax benefit for stock options exercised
137

 
2,365

Cash settlement of share-based awards for minimum tax withholdings
(1,800
)
 
(1,931
)
Net cash (used in) provided by financing activities
(77,205
)
 
28,517

Net (decrease) increase in cash
(22,000
)
 
6,015

Cash at beginning of period
33,312

 
41,429

Cash at end of period
$
11,312

 
$
47,444






Forward Air Corporation Reconciliation of U.S. GAAP and Non-GAAP Financial Measures

The Company reports its financial results in accordance with GAAP (also referred to herein as “reported”). However, the Company also uses “non-GAAP financial measures” that are derived on the basis of methodologies other than in accordance with GAAP. Specifically, the Company believes that meaningful analysis of its financial performance in 2016 and 2015 requires an understanding of the factors underlying that performance, including an understanding of items that are non-operational and related to our acquisition activity. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the Company’s performance.

This press release contains the following non-GAAP financial measures: adjusted income from operations, adjusted net income, adjusted earnings per diluted share, adjusted effective income tax rate and guidance with respect to adjusted net income per diluted share. These measures exclude intangible asset impairment costs and tax ramifications related to TQI for the three months ended September 30, 2016 and December 31, 2016, integration costs related to the acquisition of CLP Towne Inc. and tax benefits in 2015 from amending prior year returns from our results for all periods reconciled below for 2015. The Company believes that excluding these items will assist investors in understanding our core operating performance and allow for more accurate comparisons of results.

Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP. Our non-GAAP financial information does not represent a comprehensive basis of accounting. As required by the Securities and Exchange Act of 1933 and the rules and regulations promulgated thereunder, the tables below present, for the periods indicated, a reconciliation of our presented non-GAAP financial measures to the most directly comparable GAAP financial measures.
Forward Air Corporation
 
Reconciliation to U.S. GAAP
 
(In millions, except per share data)
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2016
 
Operating Income
Other, Net
Income before taxes
Income taxes
Effective tax rate
Net Income
Diluted earnings per share
Reported (GAAP)
$
24.7

$
(0.2
)
$
24.5

$
12.6

51.3
%
$
11.9

$
0.39

Items impacting comparability:
 
 
 
 
 
 
 
Impact of TQI impairment on income taxes
—

—

—

(3.6
)
14.3
%
3.6

0.12

After considering items (Non-GAAP)
$
24.7

$
(0.2
)
$
24.5

$
9.0

37.0
%
$
15.5

$
0.51

 
 
 
 
 
 
 
 
 
Three months ended September 30, 2015
 
Operating Income
Other, Net
Income before taxes
Income taxes
Effective tax rate
Net Income
Diluted earnings per share
Reported (GAAP)
$
24.6

$
(0.5
)
$
24.1

$
8.4

34.8
%
$
15.7

$
0.50

Items impacting comparability:
 
 
 
 
 
 
 
Certain tax matters 1
—

—

—

1.1

4.5
%
(1.1
)
(0.04
)
Integrations and deal costs
3.9

—

3.9

1.5

—

2.4

0.08

After considering items (Non-GAAP)
$
28.5

$
(0.5
)
$
28.0

$
11.0

39.3
%
$
17.0

$
0.54

 
 
 
 
 

 
 
1 - Certain tax matters related to technology-related permanent tax deductions in 2015 which were not identified as non-GAAP adjustments at that time, but which are adjusted here for consistency and comparison purposes.





Forward Air Corporation
 
Guidance Range
 
Reconciliation to U.S. GAAP
 
(In millions, except per share data)
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Three months ended December 31, 2015
 
Operating Income
Other, Net
Income before taxes
Income taxes
Effective tax rate
Net Income
Diluted earnings per share
Reported (GAAP)
$
29.0

$
(0.5
)
$
28.5

$
5.3

18.6
%
$
23.2

$
0.75

Items impacting comparability:
 
 
 
 
 
 
 
Certain tax matters 1
1.2

—

1.2

5.8

18.8
%
(4.6
)
(0.15
)
Integrations and deal costs
0.6

—

0.6

0.2

—

0.4

0.01

After considering items (Non-GAAP)
$
30.8

$
(0.5
)
$
30.3

$
11.3

37.4
%
$
19.0

$
0.61

 
 
 
 
 
 
 
 
1 - Certain tax matters related to technology-related permanent tax deductions in 2015 which were not identified as non-GAAP adjustments at that time, but which are adjusted here for consistency and comparison purposes.
 
 
 
 
 
 
 
 
 
Three months ended December 31, 2016 - Forecast
 
 
 
Income before taxes
Income taxes
Effective tax rate
Net Income
Diluted earnings per share
 
 
Low range of guidance (GAAP)
$
25.7

$
14.2

55.2
%
$
11.5

$
0.37

 
 
Items impacting comparability:
 
 
 
 
 
 
 
Impact of TQI impairment on income taxes
—

(4.7
)
18.2
%
4.7

0.16

 
 
Low range of guidance (Non-GAAP)
$
25.7

$
9.5

37.0
%
$
16.2

$
0.53

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended December 31, 2016 - Forecast
 
 
 
Income before taxes
Income taxes
Effective tax rate
Net Income
Diluted earnings per share
 
 
High range of guidance (GAAP)
$
28.0

$
15.2

54.4
%
$
12.8

$
0.41

 
 
Items impacting comparability:
 
 
 
 
 
 
 
Impact of TQI impairment on income taxes
—

(4.8
)
17.4
%
4.8

0.16

 
 
High range of guidance (Non-GAAP)
$
28.0

$
10.4

37.0
%
$
17.6

$
0.57

 
 






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, adjusted income per diluted share and adjusted effective tax rate for the fourth 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, our inability to successfully integrate acquisitions and the risks described in our Annual Report on Form 10-K for the year ended December 31, 2015.

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, 404-362-8933






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
September 30
Average
 
 
 
 
 
Expedited LTL
 
 
 
 
Average linehaul pounds per week (1)
 
 
 
 
   (in thousands)
44,041

47,346

46,010

45,799

Number of terminals - Company-operated
72

72

72

72

Number of terminals - agent
19

19

19

19

Number of terminals - total
91

91

91

91

Average tractors - Company
330

294

277

300

Average leased tractors - Company
62

30

30

41

Average leased straight trucks - Company
17

1

1

6

Average tractors - owner-operator
1,020

989

960

990

Average tractors - total
1,429

1,314

1,268

1,337

Average trailers
4,103

4,248

4,670

4,340

Average leased trailers
1,012

1,011

1,059

1,027

Average trailers - total
5,115

5,259

5,729

5,367

 
 
 
 
 
Pool Distribution
 
 
 
 
Number of terminals - Company-operated
20

19

19

19

Number of terminals - agent
9

9

9

9

Number of terminals - total
29

28

28

28

Average tractors - Company
64

67

67

66

Average leased tractors - Company
45

19

30

31

Average straight trucks & vans - Company
151

146

142

146

Average leased straight trucks - Company
23

72

78

58

Average tractors - owner-operator
91

84

84

86

Average straight trucks & vans - owner-operator
118

118

141

126

Average tractors - total
492

506

542

513

Average trailers
73

73

73

73

 
 
 
 
 
Truckload Expedited
 
 
 
 
Average tractors - Company
84

84

83

84

Average tractors - owner-operator
360

329

336

342

Average tractors - total
444

413

419

426

Average trailers
119

97

121

112

 
 
 
 
 
(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
$
149,212

 
$
38,528

 
$
32,133

 
$
28,890

 
$
(1,670
)
 
$
247,093

 
 
 
 
 
 
 
 
 
 
 
 
Purchased transportation
61,723

 
25,541

 
8,783

 
9,414

 
(1,027
)
 
104,434

Salaries, wages, and employee benefits
35,735

 
4,701

 
12,171

 
6,189

 
229

 
59,025

Operating leases
8,374

 
205

 
2,560

 
3,308

 
2,625

 
17,072

Depreciation and amortization
5,403

 
1,590

 
1,451

 
939

 
16

 
9,399

Insurance and claims
2,601

 
791

 
879

 
684

 
206

 
5,161

Fuel expense
1,001

 
783

 
1,315

 
727

 
—

 
3,826

Other operating expenses
12,781

 
1,747

 
4,419

 
4,093

 
535

 
23,575

Total operating expenses
127,618

 
35,358

 
31,578

 
25,354

 
2,584

 
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
$
149,748

 
$
40,936

 
$
42,954

 
$
24,881

 
$
(2,099
)
 
$
256,420

 
 
 
 
 
 
 
 
 
 
 
 
Purchased transportation
61,908

 
27,570

 
11,213

 
8,314

 
(1,489
)
 
107,516

Salaries, wages, and employee benefits
38,037

 
5,240

 
15,775

 
6,085

 
652

 
65,789

Operating leases
8,095

 
153

 
3,443

 
3,026

 
450

 
15,167

Depreciation and amortization
5,450

 
1,692

 
1,478

 
919

 
17

 
9,556

Insurance and claims
2,215

 
691

 
1,067

 
618

 
360

 
4,951

Fuel expense
881

 
774

 
1,532

 
682

 
—

 
3,869

Other operating expenses
11,582

 
2,049

 
5,045

 
2,131

 
(250
)
 
20,557

Total operating expenses
128,168

 
38,169

 
39,553

 
21,775

 
(260
)
 
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
)





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

 
Three months ended September 30, 2016
 
Expedited LTL
 
Truckload Expedited
 
Pool Distribution
 
Intermodal
 
Eliminations and other operations
 
Consolidated
Revenue
$
144,337

 
$
42,210

 
$
36,437

 
$
27,579

 
$
(1,011
)
 
$
249,552

 
 
 
 
 
 
 
 
 
 
 
 
Purchased transportation
56,332

 
29,754

 
10,087

 
9,708

 
(842
)
 
105,039

Salaries, wages, and employee benefits
33,752

 
4,860

 
14,387

 
6,574

 
588

 
60,161

Operating leases
8,995

 
87

 
3,274

 
3,263

 
596

 
16,215

Depreciation and amortization
5,470

 
1,470

 
1,472

 
987

 
—

 
9,399

Insurance and claims
3,948

 
1,078

 
1,020

 
793

 
331

 
7,170

Fuel expense
848

 
684

 
1,216

 
668

 
—

 
3,416

Other operating expenses
13,978

 
2,239

 
4,915

 
2,545

 
(225
)
 
23,452

Total operating expenses
123,323

 
40,172

 
36,371

 
24,538

 
448

 
224,852

Income from operations
$
21,014

 
$
2,038

 
$
66

 
$
3,041

 
$
(1,459
)
 
$
24,700





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