Forward Air Corporation (NASDAQ:FWRD) today reported results for the fourth quarter and year ended December 31, 2009.
Operating revenue for the quarter ended December 31, 2009 decreased 4.4% to $118.0 million from $123.4 million for the same quarter in 2008. Income from operations was $12.3 million, compared with $14.0 million for the fourth quarter of 2008, a decrease of 12.1%. As a percent of operating revenue, income from operations decreased to 10.4% from 11.3% for the same quarter last year. Net income during the period decreased by $1.9 million, or 22.9%, to $6.4 million from $8.3 million in the fourth quarter of 2008. Net income per diluted share for the fourth quarter of 2009 was $0.22 compared with $0.29 in the same quarter in 2008, a decrease of 24.1%.
Operating revenue for the year ended December 31, 2009 decreased 12.0% to $417.4 million from $474.4 million for the year ended December 31, 2008. Income from operations, which includes a first quarter non-cash, pre-tax charge of $7.2 million primarily for goodwill impairment related to the Company’s Forward Air Solutions segment, was $18.8 million, compared with $70.3 million in 2008. Including the impact of the goodwill impairment, the Company’s net income for the year ended December 31, 2009, was $9.9 million, compared with $42.5 million in 2008. Net income per diluted share for the year ended December 31, 2009 was $0.34 compared with $1.47 in 2008.
Bruce A. Campbell, Chairman, President, and CEO, said, “We are pleased with our fourth quarter results which provided an encouraging finish to a year of unprecedented challenges. This quarter’s performance validated the positive leverage and earnings power of our model as illustrated by our airport-to-airport segment generating $5.6 million of additional operating income on $14.9 million in additional operating revenue when compared to the third quarter of 2009. We were also pleased to see our Solutions segment return to being a solid earnings contributor despite the continuing struggles of the specialty retail sector.”
Commenting further, Mr. Campbell said, “Although we were encouraged by the trends that started at the end of the third quarter and which continued throughout the fourth quarter, we remain very cautious, yet optimistic, in our outlook for 2010. Our yield, while stabilized, continues to suffer from competitive pricing which we expect to continue until such time as capacity is taken out of the market or demand increases from an improved economy.”
In closing Mr. Campbell said, “I would be remiss if I didn’t acknowledge the significant contributions and sacrifices of our team of employees and independent contractors who managed to do more with less in 2009. We are all looking forward to taking lessons learned this past year and applying them in 2010 to produce the superior margins and returns our shareholders have come to expect from Forward Air.”
In commenting further on the fourth quarter, Rodney L. Bell, Senior Vice President and CFO, said “We produced very solid cash flows during the quarter with $19.5 million from operations compared with $21.2 in the fourth quarter of 2008. For the year, cash flow from operations was $50.2 million compared to $59.1 million last year. We increased our cash position during 2009 by $20.0 million to $42.0 million at year end.”
Commenting further, Mr. Bell said, “Assuming no changes in the current economic environment, we anticipate first quarter 2010 revenues to increase in the range of 6 to 10% over the prior year first quarter, and expect income per diluted share to be between $0.08 and $0.12 per share.”
Review of Financial Results
Forward Air will hold a conference call to discuss fourth quarter 2009 results on Tuesday, February 9, 2010 at 9:00 a.m. EST. The Company’s conference call will be available online at www.forwardair.com or by dialing 800-841-9385. A replay of the conference call will be available at www.forwardair.com beginning shortly after the completion of the live call.
About Forward Air Corporation
Forward Air Corporation operates two business segments, Forward Air, Inc. and Forward Air Solutions, Inc.
Forward Air, Inc. is a high-service-level contractor to the air cargo industry providing time-definite ground transportation services through a network of terminals located on or near major airports in 84 cities in the United States and Canada. It provides these services as a cost-effective alternative to air transportation of cargo that must be delivered at a specific time but is relatively less time-sensitive than traditional air freight or when air transportation is not economical.
Forward Air Solutions, Inc. is a provider of pool distribution services. Pool distribution involves the consolidation and shipment of several smaller less-than-truckload shipments to a common area or region. Once at the regional destination, the loads are deconsolidated, then grouped with other shipments with common delivery points, and delivered in a very precise, time-sensitive manner. Our pool distribution network consists of terminals and service locations in 19 cities within the Mid-Atlantic, Southeast, Midwest and Southwestern United States.
Forward Air Corporation | ||||||||||||||||
Consolidated Condensed Statements of Income | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended | Year ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Operating revenue: | ||||||||||||||||
Forward Air | ||||||||||||||||
Airport-to-airport | $ | 73,338 | $ | 77,713 | $ | 268,245 | $ | 334,860 | ||||||||
Logistics | 15,422 | 16,602 | 54,067 | 59,290 | ||||||||||||
Other | 6,100 | 6,669 | 23,076 | 25,133 | ||||||||||||
Forward Air Solutions | ||||||||||||||||
Pool distribution | 23,158 | 22,468 | 72,022 | 55,153 | ||||||||||||
Total operating revenue | 118,018 | 123,452 | 417,410 | 474,436 | ||||||||||||
Operating expenses: | ||||||||||||||||
Purchased transportation | ||||||||||||||||
Forward Air | ||||||||||||||||
Airport-to-airport | 30,509 | 30,358 | 112,516 | 128,785 | ||||||||||||
Logistics | 12,061 | 13,336 | 42,188 | 44,560 | ||||||||||||
Other | 1,553 | 1,500 | 5,234 | 6,425 | ||||||||||||
Forward Air Solutions | ||||||||||||||||
Pool distribution | 4,715 | 3,551 | 14,490 | 9,315 | ||||||||||||
Total purchased transportation | 48,838 | 48,745 | 174,428 | 189,085 | ||||||||||||
Salaries, wages and employee benefits | 31,735 | 32,149 | 118,568 | 116,504 | ||||||||||||
Operating leases | 6,853 | 7,485 | 27,294 | 24,403 | ||||||||||||
Depreciation and amortization | 5,035 | 4,785 | 19,722 | 16,615 | ||||||||||||
Insurance and claims | 2,735 | 2,409 | 9,719 | 8,099 | ||||||||||||
Fuel expense | 2,113 | 2,999 | 7,312 | 11,465 | ||||||||||||
Other operating expenses | 8,441 | 10,834 | 34,424 | 37,980 | ||||||||||||
Impairment of goodwill and other intangible assets | -- | -- | 7,157 | -- | ||||||||||||
Total operating expenses | 105,750 | 109,406 | 398,624 | 404,151 | ||||||||||||
Income from operations | 12,268 | 14,046 | 18,786 | 70,285 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (202 | ) | (396 | ) | (670 | ) | (1,236 | ) | ||||||||
Other, net | 20 | 37 | 69 | 362 | ||||||||||||
Total other expense | (182 | ) | (359 | ) | (601 | ) | (874 | ) | ||||||||
Income before income taxes | 12,086 | 13,687 | 18,185 | 69,411 | ||||||||||||
Income taxes | 5,658 | 5,350 | 8,239 | 26,869 | ||||||||||||
Net income | $ | 6,428 | $ | 8,337 | $ | 9,946 | $ | 42,542 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.22 | $ | 0.29 | $ | 0.34 | $ | 1.48 | ||||||||
Diluted | $ | 0.22 | $ | 0.29 | $ | 0.34 | $ | 1.47 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 28,943 | 28,889 | 28,928 | 28,808 | ||||||||||||
Diluted | 29,041 | 28,987 | 28,993 | 29,025 | ||||||||||||
Dividends per share: | $ | 0.07 | $ | 0.07 | $ | 0.28 | $ | 0.28 |
Forward Air Corporation | ||||||
Condensed Consolidated Balance Sheets | ||||||
(In thousands) | ||||||
(Unaudited) | ||||||
December 31, | December 31, | |||||
2009 | 2008(a) | |||||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 42,035 | $ | 22,093 | ||
Accounts receivable, net | 55,720 | 57,206 | ||||
Other current assets | 9,379 | 12,290 | ||||
Total current assets | 107,134 | 91,589 | ||||
Property and equipment | 204,716 | 186,377 | ||||
Less accumulated depreciation and amortization | 75,990 | 63,401 | ||||
Total property and equipment, net | 128,726 | 122,976 | ||||
Goodwill and other acquired intangibles: | ||||||
Goodwill | 43,332 | 50,230 | ||||
Other acquired intangibles, net | 35,849 | 40,708 | ||||
Total goodwill and other acquired intangibles | 79,181 | 90,938 | ||||
Other assets | 1,597 | 2,024 | ||||
Total assets | $ | 316,638 | $ | 307,527 | ||
Liabilities and Shareholders’ Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 10,333 | $ | 11,633 | ||
Accrued expenses | 18,295 | 12,927 | ||||
Current portion of debt and capital lease obligations | 919 | 1,602 | ||||
Total current liabilities | 29,547 | 26,162 | ||||
Debt and capital lease obligations, less current portion | 52,169 | 53,035 | ||||
Other long-term liabilities | 4,485 | 3,055 | ||||
Deferred income taxes | 5,786 | 8,841 | ||||
Shareholders’ equity: | ||||||
Common stock | 290 | 289 | ||||
Additional paid-in capital | 16,631 | 10,249 | ||||
Retained earnings | 207,730 | 205,896 | ||||
Total shareholders’ equity | 224,651 | 216,434 | ||||
Total liabilities and shareholders’ equity | $ | 316,638 | $ | 307,527 | ||
(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 | ||||||||
December 31, | December 31, | |||||||
2009 | 2008 | |||||||
Operating activities: | ||||||||
Net income | $ | 6,428 | $ | 8,337 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation and amortization | 5,035 | 4,785 | ||||||
Share-based compensation | 1,732 | 1,695 | ||||||
Gain on disposal of property and equipment | 7 | 135 | ||||||
Provision for loss on receivables | 14 | 658 | ||||||
Provision for revenue adjustments | 474 | 986 | ||||||
Deferred income taxes | (1,110 | ) | 516 | |||||
Tax expense for stock options exercised | 371 | 118 | ||||||
Changes in operating assets and liabilities, net of acquisitions | ||||||||
Accounts receivable | (3,214 | ) | 13,716 | |||||
Prepaid expenses and other current assets | 2,115 | (170 | ) | |||||
Accounts payable and accrued expenses | 7,620 | (9,715 | ) | |||||
Net cash provided by operating activities | 19,472 | 21,061 | ||||||
Investing activities: | ||||||||
Proceeds from disposal of property and equipment | 39 | 41 | ||||||
Purchases of property and equipment | (2,019 | ) | (14,019 | ) | ||||
Acquisition of businesses | -- | (267 | ) | |||||
Other | (33 | ) | 157 | |||||
Net cash used in investing activities | (2,013 | ) | (14,088 | ) | ||||
Financing activities: | ||||||||
Payments of debt and capital lease obligations | (386 | ) | (431 | ) | ||||
Payments of cash dividends | (2,028 | ) | (2,027 | ) | ||||
Common stock issued under employee stock purchase plan | 138 | 110 | ||||||
Cash settlement of share-based awards for minimum tax withholdings | (7 | ) | (5 | ) | ||||
Tax expense for stock options exercised | (371 | ) | (118 | ) | ||||
Net cash used in financing activities | (2,654 | ) | (2,471 | ) | ||||
Net increase in cash | 14,805 | 4,502 | ||||||
Cash at beginning of period | 27,230 | 17,591 | ||||||
Cash at end of period | $ | 42,035 | $ | 22,093 |
Forward Air Corporation | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Year ended | ||||||||
December 31, | December 31, | |||||||
2009 | 2008 | |||||||
Operating activities: | ||||||||
Net income | $ | 9,946 | $ | 42,542 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation and amortization | 19,722 | 16,615 | ||||||
Impairment of goodwill and other intangible assets | 7,157 | -- | ||||||
Share-based compensation | 6,754 | 6,267 | ||||||
(Gain) loss on disposal of property and equipment | (6 | ) | 171 | |||||
Provision for (recovery) loss on receivables | (60 | ) | 903 | |||||
Provision for revenue adjustments | 2,390 | 4,259 | ||||||
Deferred income taxes | (4,119 | ) | 1,151 | |||||
Tax expense (benefit) for stock options exercised | 370 | (1,030 | ) | |||||
Changes in operating assets and liabilities, net of acquisitions | ||||||||
Accounts receivable | (844 | ) | (2,376 | ) | ||||
Prepaid expenses and other current assets | 548 | (2,102 | ) | |||||
Accounts payable and accrued expenses | 8,321 | (7,317 | ) | |||||
Net cash provided by operating activities | 50,179 | 59,083 | ||||||
Investing activities: | ||||||||
Proceeds from disposal of property and equipment | 270 | 87 | ||||||
Purchases of property and equipment | (20,847 | ) | (26,699 | ) | ||||
Acquisition of businesses | -- | (29,566 | ) | |||||
Other | 372 | (10 | ) | |||||
Net cash used in investing activities | (20,205 | ) | (56,188 | ) | ||||
Financing activities: | ||||||||
Payments of debt and capital lease obligations | (1,549 | ) | (1,603 | ) | ||||
Borrowings on line of credit | -- | 45,000 | ||||||
Payments on line of credit | -- | (25,000 | ) | |||||
Proceeds from exercise of stock options | 8 | 3,085 | ||||||
Payments of cash dividends | (8,109 | ) | (8,089 | ) | ||||
Common stock issued under employee stock purchase plan | 237 | 255 | ||||||
Cash settlement of share-based awards for minimum tax withholdings | (249 | ) | (389 | ) | ||||
Tax (expense) benefit for stock options exercised | (370 | ) | 1,030 | |||||
Net cash (used in) provided by financing activities | (10,032 | ) | 14,289 | |||||
Net increase in cash | 19,942 | 17,184 | ||||||
Cash at beginning of period | 22,093 | 4,909 | ||||||
Cash at end of period | $ | 42,035 | $ | 22,093 |
Forward Air Corporation | ||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||
December 31, | Percent of | December 31, | Percent of | Percent | ||||||||||||||||||
2009 | Revenue | 2008 | Revenue | Change | Change | |||||||||||||||||
Operating revenue | ||||||||||||||||||||||
Forward Air | $ | 95.1 | 80.6 | % | $ | 101.4 | 82.2 | % | $ | (6.3 | ) | (6.2 | ) | % | ||||||||
FASI | 23.3 | 19.7 | 22.5 | 18.2 | 0.8 | 3.6 | ||||||||||||||||
Intercompany Eliminations | (0.4 | ) | (0.3 | ) | (0.5 | ) | (0.4 | ) | 0.1 | (20.0 | ) | |||||||||||
Total | 118.0 | 100.0 | 123.4 | 100.0 | (5.4 | ) | (4.4 | ) | ||||||||||||||
Purchased transportation | ||||||||||||||||||||||
Forward Air | 44.2 | 46.5 | 45.3 | 44.7 | (1.1 | ) | (2.4 | ) | ||||||||||||||
FASI | 5.0 | 21.4 | 3.9 | 17.3 | 1.1 | 28.2 | ||||||||||||||||
Intercompany Eliminations | (0.4 | ) | 100.0 | (0.5 | ) | 100.0 | 0.1 | (20.0 | ) | |||||||||||||
Total | 48.8 | 41.4 | 48.7 | 39.5 | 0.1 | 0.2 | ||||||||||||||||
Salaries, wages and employee benefits | ||||||||||||||||||||||
Forward Air | 22.4 | 23.6 | 22.2 | 21.9 | 0.2 | 0.9 | ||||||||||||||||
FASI | 9.3 | 39.9 | 9.9 | 44.0 | (0.6 | ) | (6.1 | ) | ||||||||||||||
Total | 31.7 | 26.9 | 32.1 | 26.0 | (0.4 | ) | (1.2 | ) | ||||||||||||||
Operating leases | ||||||||||||||||||||||
Forward Air | 4.6 | 4.8 | 4.9 | 4.8 | (0.3 | ) | (6.1 | ) | ||||||||||||||
FASI | 2.3 | 9.9 | 2.6 | 11.6 | (0.3 | ) | (11.5 | ) | ||||||||||||||
Total | 6.9 | 5.8 | 7.5 | 6.1 | (0.6 | ) | (8.0 | ) | ||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||
Forward Air | 4.1 | 4.3 | 3.8 | 3.7 | 0.3 | 7.9 | ||||||||||||||||
FASI | 0.9 | 3.9 | 1.0 | 4.4 | (0.1 | ) | (10.0 | ) | ||||||||||||||
Total | 5.0 | 4.2 | 4.8 | 3.9 | 0.2 | 4.2 | ||||||||||||||||
Insurance and claims | ||||||||||||||||||||||
Forward Air | 2.1 | 2.2 | 2.2 | 2.2 | (0.1 | ) | (4.5 | ) | ||||||||||||||
FASI | 0.7 | 3.0 | 0.2 | 0.9 | 0.5 | 250.0 | ||||||||||||||||
Total | 2.8 | 2.4 | 2.4 | 2.0 | 0.4 | 16.7 | ||||||||||||||||
Fuel expense | ||||||||||||||||||||||
Forward Air | 0.8 | 0.8 | 1.0 | 1.0 | (0.2 | ) | (20.0 | ) | ||||||||||||||
FASI | 1.3 | 5.6 | 2.0 | 8.9 | (0.7 | ) | (35.0 | ) | ||||||||||||||
Total | 2.1 | 1.8 | 3.0 | 2.4 | (0.9 | ) | (30.0 | ) | ||||||||||||||
Other operating expenses | ||||||||||||||||||||||
Forward Air | 6.6 | 7.0 | 8.5 | 8.4 | (1.9 | ) | (22.4 | ) | ||||||||||||||
FASI | 1.8 | 7.7 | 2.4 | 10.7 | (0.6 | ) | (25.0 | ) | ||||||||||||||
Total | 8.4 | 7.1 | 10.9 | 8.8 | (2.5 | ) | (22.9 | ) | ||||||||||||||
Income from operations | ||||||||||||||||||||||
Forward Air | 10.3 | 10.8 | 13.5 | 13.3 | (3.2 | ) | (23.7 | ) | ||||||||||||||
FASI | 2.0 | 8.6 | 0.5 | 2.2 | 1.5 | 300.0 | ||||||||||||||||
Total | $ | 12.3 | 10.4 | % | $ | 14.0 | 11.3 | % | $ | (1.7 | ) | (12.1 | ) | % |
Forward Air Corporation | ||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||
(Unaudited | ||||||||||||||||||||||
Year ended | ||||||||||||||||||||||
December 31, | Percent of | December 31, | Percent of | Percent | ||||||||||||||||||
2009 | Revenue | 2008 | Revenue | Change | Change | |||||||||||||||||
Operating revenue | ||||||||||||||||||||||
Forward Air | $ | 346.3 | 83.0 | % | $ | 421.2 | 88.8 | % | $ | (74.9 | ) | (17.8 | ) | % | ||||||||
FASI | 72.5 | 17.4 | 55.3 | 11.6 | 17.2 | 31.1 | ||||||||||||||||
Intercompany Eliminations | (1.4 | ) | (0.4 | ) | (2.1 | ) | (0.4 | ) | 0.7 | (33.3 | ) | |||||||||||
Total | 417.4 | 100.0 | 474.4 | 100.0 | (57.0 | ) | (12.0 | ) | ||||||||||||||
Purchased transportation | ||||||||||||||||||||||
Forward Air | 160.3 | 46.3 | 179.9 | 42.7 | (19.6 | ) | (10.9 | ) | ||||||||||||||
FASI | 15.4 | 21.2 | 11.2 | 20.2 | 4.2 | 37.5 | ||||||||||||||||
Intercompany Eliminations | (1.3 | ) | 92.9 | (2.1 | ) | 100.0 | 0.8 | (38.1 | ) | |||||||||||||
Total | 174.4 | 41.8 | 189.0 | 39.9 | (14.6 | ) | (7.7 | ) | ||||||||||||||
Salaries, wages and employee benefits | ||||||||||||||||||||||
Forward Air | 85.5 | 24.7 | 92.5 | 22.0 | (7.0 | ) | (7.6 | ) | ||||||||||||||
FASI | 33.1 | 45.6 | 24.0 | 43.4 | 9.1 | 37.9 | ||||||||||||||||
Total | 118.6 | 28.4 | 116.5 | 24.6 | 2.1 | 1.8 | ||||||||||||||||
Operating leases | ||||||||||||||||||||||
Forward Air | 18.7 | 5.4 | 18.5 | 4.4 | 0.2 | 1.1 | ||||||||||||||||
FASI | 8.6 | 11.9 | 5.9 | 10.7 | 2.7 | 45.8 | ||||||||||||||||
Total | 27.3 | 6.5 | 24.4 | 5.1 | 2.9 | 11.9 | ||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||
Forward Air | 16.1 | 4.6 | 14.4 | 3.4 | 1.7 | 11.8 | ||||||||||||||||
FASI | 3.6 | 5.0 | 2.2 | 4.0 | 1.4 | 63.6 | ||||||||||||||||
Total | 19.7 | 4.7 | 16.6 | 3.5 | 3.1 | 18.7 | ||||||||||||||||
Insurance and claims | ||||||||||||||||||||||
Forward Air | 7.6 | 2.2 | 7.3 | 1.7 | 0.3 | 4.1 | ||||||||||||||||
FASI | 2.1 | 2.9 | 0.8 | 1.4 | 1.3 | 162.5 | ||||||||||||||||
Total | 9.7 | 2.3 | 8.1 | 1.7 | 1.6 | 19.8 | ||||||||||||||||
Fuel expense | ||||||||||||||||||||||
Forward Air | 3.1 | 0.9 | 5.8 | 1.4 | (2.7 | ) | (46.6 | ) | ||||||||||||||
FASI | 4.2 | 5.8 | 5.7 | 10.3 | (1.5 | ) | (26.3 | ) | ||||||||||||||
Total | 7.3 | 1.8 | 11.5 | 2.4 | (4.2 | ) | (36.5 | ) | ||||||||||||||
Other operating expenses | ||||||||||||||||||||||
Forward Air | 27.7 | 8.0 | 32.1 | 7.6 | (4.4 | ) | (13.7 | ) | ||||||||||||||
FASI | 6.8 | 9.4 | 5.9 | 10.7 | 0.9 | 15.3 | ||||||||||||||||
Intercompany Eliminations | (0.1 | ) | 7.1 | -- | -- | (0.1 | ) | 100.0 | ||||||||||||||
Total | 34.4 | 8.3 | 38.0 | 8.0 | (3.6 | ) | (9.5 | ) | ||||||||||||||
Impairment of goodwill and other intangible assets | ||||||||||||||||||||||
Forward Air | 0.2 | 0.1 | -- | -- | 0.2 | 100.0 | ||||||||||||||||
FASI | 7.0 | 9.6 | -- | -- | 7.0 | 100.0 | ||||||||||||||||
Total | 7.2 | 1.7 | -- | -- | 7.2 | 100.0 | ||||||||||||||||
Income (loss) from operations | ||||||||||||||||||||||
Forward Air | 27.1 | 7.8 | 70.7 | 16.8 | (43.6 | ) | (61.7 | ) | ||||||||||||||
FASI | (8.3 | ) | (11.4 | ) | (0.4 | ) | (0.7 | ) | (7.9 | ) | 1,975.0 | |||||||||||
Total | $ | 18.8 | 4.5 | % | $ | 70.3 | 14.8 | % | $ | (51.5 | ) | (73.3 | ) | % |
Forward Air Corporation | |||||||||||||||||||||||
Forward Air Inc. Operating Statistics | |||||||||||||||||||||||
Three months ended | Year ended | ||||||||||||||||||||||
December 31, | December 31, | Percent | December 31, | December 31, | Percent | ||||||||||||||||||
2009 | 2008 | Change | 2009 | 2008 | Change | ||||||||||||||||||
Operating ratio | 89.2 | % | 86.7 | % | (2.9 | ) | % | 92.2 | % | 83.2 | % | (10.8 | ) | % | |||||||||
Business days | 64.0 | 63.0 | 1.6% | 255.0 | 255.0 | -- | |||||||||||||||||
Business weeks | 12.8 | 12.6 | 1.6% | 51.0 | 51.0 | -- | |||||||||||||||||
Airport-to-airport: | |||||||||||||||||||||||
Tonnage | |||||||||||||||||||||||
Total pounds1 | 398,921 | 407,162 | (2.0 | ) | 1,452,969 | 1,743,963 | (16.7 | ) | |||||||||||||||
Average weekly pounds1 | 31,166 | 32,314 | (3.6 | ) | 28,490 | 34,195 | (16.7 | ) | |||||||||||||||
Linehaul shipments | |||||||||||||||||||||||
Total linehaul | 565,922 | 557,260 | 1.6 | 2,095,223 | 2,295,299 | (8.7 | ) | ||||||||||||||||
Average weekly | 44,213 | 44,227 | (0.1 | ) | 41,083 | 45,006 | (8.7 | ) | |||||||||||||||
Forward Air Complete shipments | 71,442 | 56,930 | 25.5 | 266,136 | 202,382 | 31.5 | |||||||||||||||||
As a percentage of linehaul shipments | 12.6 | % | 10.2 | % | 23.5 | 12.7 | % | 8.8 | % | 44.3 | |||||||||||||
Average linehaul shipment size | 705 | 731 | (3.5 | ) | 693 | 760 | (8.8 | ) | |||||||||||||||
Revenue per pound2 | |||||||||||||||||||||||
Linehaul yield | 15.84 | 16.52 | (3.5 | ) | 16.06 | 16.55 | (2.5 | ) | |||||||||||||||
Fuel surcharge impact | 0.96 | 1.43 | (2.5 | ) | 0.84 | 1.72 | (4.6 | ) | |||||||||||||||
Forward Air Complete impact | 1.62 | 1.21 | 2.1 | 1.60 | 1.01 | 3.1 | |||||||||||||||||
Total airport-to-airport yield | 18.42 | 19.16 | (3.9 | ) | 18.50 | 19.28 | (4.0 | ) | |||||||||||||||
Logistics: | |||||||||||||||||||||||
Miles | |||||||||||||||||||||||
Owner operator1 | 6,421 | 5,408 | 18.7 | 24,338 | 18,840 | 29.2 | |||||||||||||||||
Third party1 | 3,220 | 4,605 | (30.1 | ) | 9,929 | 15,660 | (36.6 | ) | |||||||||||||||
Total Miles | 9,641 | 10,013 | (3.7 | ) | 34,267 | 34,500 | (0.7 | ) | |||||||||||||||
Revenue per mile | $ | 1.62 | $ | 1.69 | (4.1 | ) | $ | 1.59 | $ | 1.74 | (8.6 | ) | |||||||||||
Cost per mile | $ | 1.25 | $ | 1.33 | (6.0 | ) | % | $ | 1.23 | $ | 1.29 | (4.7 | ) | % | |||||||||
1 - In thousands | |||||||||||||||||||||||
2 - In cents per pound; percentage change is expressed as a percent of total yield. | |||||||||||||||||||||||
Important Information
This press release contains “forward-looking statements,” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements other than historical information or statements of current condition and relate to future events or our future financial performance. Some forward-looking statements may be identified by use of such terms as “believes,” “anticipates,” “intends,” “plans,” “estimates,” “projects” or “expects.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The following is a list of factors, among others, that could cause actual results to differ materially from those contemplated by the forward-looking statements: economic factors such as recessions, inflation, higher interest rates and downturns in customer business cycles, our inability to maintain our historical growth rate because of a decreased volume of freight moving through our network or decreased average revenue per pound of freight moving through our network, increasing competition and pricing pressure, surplus inventories, loss of a major customer, the creditworthiness of our customers and their ability to pay for services rendered, our ability to secure terminal facilities in desirable locations at reasonable rates, the inability of our information systems to handle an increased volume of freight moving through our network, changes in fuel prices, claims for property damage, personal injuries or workers’ compensation, employment matters including rising health care costs, enforcement of and changes in governmental regulations, environmental and tax matters, the handling of hazardous materials, the availability and compensation of qualified independent owner-operators and freight handlers needed to serve our transportation needs and our inability to successfully integrate acquisitions. As a result of the foregoing, no assurance can be given as to future financial condition, cash flows or results of operations. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts:
Rodney L. Bell, 423-636-7000
rbell@forwardair.com