Dépêches
Forward Air Corporation Reports Third Quarter 2011 Results
Dépèche transmise le 19 octobre 2011 par Business Wire
GREENEVILLE, Tenn.--(BUSINESS WIRE)--Forward Air Corporation (NASDAQ:FWRD) today reported revenue, operating income, net income and diluted earnings per share for the third quarter and nine months ended September 30, 2011.
“We are pleased to announce another quarter of outstanding operating performance. As compared to the third quarter of 2010, our nearly 12% increase in operating revenue translated to approximately 34% of incremental profit, once again demonstrating the significant leverage of our operating model.”
Operating revenue for the quarter ended September 30, 2011 increased 11.7% to $135.7 million from $121.5 million for the same quarter in 2010. Income from operations was $20.3 million for the third quarter of 2011, compared with $15.5 million in the prior-year quarter. As a percent of operating revenue, income from operations increased to 15.0% in the third quarter of 2011 from 12.8% for the same quarter last year. Net income during the third quarter of 2011 increased to $12.9 million from $8.9 million in the prior-year quarter. Income per diluted share for the third quarter of 2011 was $0.44 compared with $0.31 in the prior-year quarter.
Operating revenue for the nine months ended September 30, 2011 increased 10.7% to $388.1 million from $350.6 million for the same period in 2010. Income from operations was $53.5 million for the first nine months of 2011, compared with $35.1 million in the prior-year period. As a percent of operating revenue, income from operations increased to 13.8% for the nine months ended September 30, 2011 from 10.0% for the same period in 2010. Net income during the period was $32.8 million compared to $20.2 million in the prior-year period. Income per diluted share for the nine months ended September 30, 2011 was $1.11 compared with $0.69 in the prior-year period.
Bruce A. Campbell, Chairman, President, and CEO, commenting on the third quarter said, “We are pleased to announce another quarter of outstanding operating performance. As compared to the third quarter of 2010, our nearly 12% increase in operating revenue translated to approximately 34% of incremental profit, once again demonstrating the significant leverage of our operating model.”
Commenting further, Mr. Campbell said, “We started the quarter with some intermittent softness in network volumes. Over the course of the quarter, tonnage firmed up very nicely ending the quarter with system tonnage up 9.5% for the month of September as compared to September one year ago. We would characterize current volume trends as being moderately better than normal seasonality.”
In closing, Mr. Campbell said, “As always, I would like to express my gratitude for the ongoing efforts of our employees and independent contractors whose hard work made these results possible.”
Also commenting on the quarter, Rodney L. Bell, Senior Vice President and CFO said, “Cash for the quarter declined $8.7 million to $87.5 million. Cash flow from operations was an impressive $22.3 million in the third quarter of 2011 as compared to $19.0 million in the third quarter of 2010. Toward the end of the quarter, we took advantage of our undervalued stock price to repurchase 904,729 shares of our company stock for $24.3 million with an average share price of $26.88.”
Commenting further, Mr. Bell said, “Included in our third quarter results we booked an approximately $0.02 per share benefit related to federal income taxes. This resulted primarily from the reinstatement of an expired alternative energy tax credit related to our use of propane. The credit, covering 2010 and year to date through the third quarter 2011, was for approximately $0.6 million. We anticipate our fourth quarter 2011 tax rate to be approximately 39.5%.”
Commenting on the Company’s guidance for the fourth quarter, Mr. Bell said, “We anticipate that our fourth quarter 2011 revenues will increase in the range of 10% to 14% over the comparable 2010 period, and we expect income per diluted share to be between $0.47 and $0.51 per share. This compares to $0.41 per share in the fourth quarter of 2010.”
Review of Financial Results
Forward Air will hold a conference call to discuss third quarter 2011 results on Thursday, October 20, 2011 at 9:00 a.m. EDT. The Company’s conference call will be available online at www.forwardair.com or by dialing 800.230.1085. 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 85 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 | ||||||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three months ended | Nine months ended | |||||||||||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||
| Operating revenue: | ||||||||||||||||||||
| Forward Air | ||||||||||||||||||||
| Airport-to-airport | $ | 92,966 | $ | 81,828 | $ | 266,606 | $ | 234,456 | ||||||||||||
| Logistics | 18,409 | 16,774 | 52,909 | 47,789 | ||||||||||||||||
| Other | 7,250 | 6,481 | 20,524 | 18,745 | ||||||||||||||||
| Forward Air Solutions | ||||||||||||||||||||
| Pool distribution | 17,124 | 16,439 | 48,104 | 49,639 | ||||||||||||||||
| Total operating revenue | 135,749 | 121,522 | 388,143 | 350,629 | ||||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Purchased transportation | ||||||||||||||||||||
| Forward Air | ||||||||||||||||||||
| Airport-to-airport | 36,142 | 32,852 | 104,411 | 94,152 | ||||||||||||||||
| Logistics | 14,041 | 12,942 | 40,214 | 36,780 | ||||||||||||||||
| Other | 1,797 | 1,703 | 4,929 | 4,811 | ||||||||||||||||
| Forward Air Solutions | ||||||||||||||||||||
| Pool distribution | 4,109 | 3,680 | 11,067 | 10,625 | ||||||||||||||||
| Total purchased transportation | 56,089 | 51,177 | 160,621 | 146,368 | ||||||||||||||||
| Salaries, wages and employee benefits | 33,402 | 31,845 | 95,336 | 95,682 | ||||||||||||||||
| Operating leases | 6,672 | 6,508 | 20,083 | 19,388 | ||||||||||||||||
| Depreciation and amortization | 5,429 | 5,228 | 15,734 | 15,283 | ||||||||||||||||
| Insurance and claims | 2,120 | 1,546 | 6,140 | 5,983 | ||||||||||||||||
| Fuel expense | 2,406 | 1,949 | 7,357 | 6,051 | ||||||||||||||||
| Other operating expenses | 9,311 | 7,764 | 29,390 | 26,813 | ||||||||||||||||
| Total operating expenses | 115,429 | 106,017 | 334,661 | 315,568 | ||||||||||||||||
| Income from operations | 20,320 | 15,505 | 53,482 | 35,061 | ||||||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Interest expense | (131 | ) | (191 | ) | (468 | ) | (557 | ) | ||||||||||||
| Other, net | 10 | 26 | 57 | 38 | ||||||||||||||||
| Total other expense | (121 | ) | (165 | ) | (411 | ) | (519 | ) | ||||||||||||
| Income before income taxes | 20,199 | 15,340 | 53,071 | 34,542 | ||||||||||||||||
| Income taxes | 7,287 | 6,452 | 20,321 | 14,323 | ||||||||||||||||
| Net income | $ | 12,912 | $ | 8,888 | $ | 32,750 | $ | 20,219 | ||||||||||||
| Net income per share: | ||||||||||||||||||||
| Basic | $ | 0.44 | $ | 0.31 | $ | 1.12 | $ | 0.70 | ||||||||||||
| Diluted | $ | 0.44 | $ | 0.31 | $ | 1.11 | $ | 0.69 | ||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||
| Basic | 29,237 | 29,000 | 29,236 | 28,975 | ||||||||||||||||
| Diluted | 29,552 | 29,129 | 29,591 | 29,101 | ||||||||||||||||
| Dividends per share: | $ | 0.07 | $ | 0.07 | $ | 0.21 | $ | 0.21 | ||||||||||||
| Forward Air Corporation | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| September 30, | December 31, | |||||||
| 2011 | 2010 (a) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 87,467 | $ | 74,504 | ||||
| Accounts receivable, net | 69,574 | 62,763 | ||||||
| Other current assets | 11,836 | 8,696 | ||||||
| Total current assets | 168,877 | 145,963 | ||||||
| Property and equipment | 224,278 | 213,704 | ||||||
| Less accumulated depreciation and amortization | 91,023 | 87,272 | ||||||
| Total property and equipment, net | 133,255 | 126,432 | ||||||
| Goodwill and other acquired intangibles: | ||||||||
| Goodwill | 43,332 | 43,332 | ||||||
| Other acquired intangibles, net | 27,816 | 31,259 | ||||||
| Total goodwill and other acquired intangibles | 71,148 | 74,591 | ||||||
| Other assets | 1,533 | 1,810 | ||||||
| Total assets | $ | 374,813 | $ | 348,796 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 14,603 | $ | 10,687 | ||||
| Accrued expenses | 18,035 | 16,280 | ||||||
| Current portion of debt and capital lease obligations | 561 | 638 | ||||||
| Total current liabilities | 33,199 | 27,605 | ||||||
| Debt and capital lease obligations, less current portion | 50,473 | 50,883 | ||||||
| Other long-term liabilities | 8,079 | 8,106 | ||||||
| Deferred income taxes | 12,169 | 6,116 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock | 285 | 290 | ||||||
| Additional paid-in capital | 12,552 | 24,300 | ||||||
| Retained earnings | 258,056 | 231,496 | ||||||
| Total shareholders’ equity | 270,893 | 256,086 | ||||||
| Total liabilities and shareholders’ equity | $ | 374,813 | $ | 348,796 | ||||
|
(a) Taken from audited financial statements, which are not presented in their entirety. |
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| Forward Air Corporation | ||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||
| (In thousands) | ||||||||||
| (Unaudited) | ||||||||||
| Three months ended | ||||||||||
| September 30, | September 30, | |||||||||
| 2011 | 2010 | |||||||||
| Operating activities: | ||||||||||
| Net income | $ | 12,912 | $ | 8,888 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||
| Depreciation and amortization | 5,429 | 5,228 | ||||||||
| Share-based compensation | 1,502 | 1,506 | ||||||||
| Gain on disposal of property and equipment | (76 | ) | (641 | ) | ||||||
| Provision for loss (recovery) on receivables | 45 | (22 | ) | |||||||
| Provision for revenue adjustments | 547 | 625 | ||||||||
| Deferred income taxes | 4,140 | 40 | ||||||||
| Tax benefit for stock options exercised | (13 | ) | (19 | ) | ||||||
| Changes in operating assets and liabilities | ||||||||||
| Accounts receivable | (387 | ) | 500 | |||||||
| Prepaid expenses and other current assets | (82 | ) | (415 | ) | ||||||
| Accounts payable and accrued expenses | (1,746 | ) | 3,260 | |||||||
| Net cash provided by operating activities | 22,271 | 18,950 | ||||||||
| Investing activities: | ||||||||||
| Proceeds from disposal of property and equipment | 330 | 1,371 | ||||||||
| Purchases of property and equipment | (4,851 | ) | (3,150 | ) | ||||||
| Other | 15 | 30 | ||||||||
| Net cash used in investing activities | (4,506 | ) | (1,749 | ) | ||||||
| Financing activities: | ||||||||||
| Payments of debt and capital lease obligations | (160 | ) | (232 | ) | ||||||
| Proceeds from exercise of stock options | 90 | 346 | ||||||||
| Payments of cash dividends | (2,066 | ) | (2,031 | ) | ||||||
| Repurchase of common stock | (24,294 | ) | -- | |||||||
| Tax benefit for stock options exercised | 13 | 19 | ||||||||
| Net cash used in financing activities | (26,417 | ) | (1,898 | ) | ||||||
| Net (decrease) increase in cash | (8,652 | ) | 15,303 | |||||||
| Cash at beginning of period | 96,119 | 47,916 | ||||||||
| Cash at end of period | $ | 87,467 | $ | 63,219 | ||||||
