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Forward Air Corporation Reports First Quarter 2012 Results
Dépèche transmise le 19 avril 2012 par Business Wire
Forward Air Corporation Reports First Quarter 2012 Results
GREENEVILLE, Tenn.--(BUSINESS WIRE)--Forward Air Corporation (NASDAQ:FWRD) today reported revenue, operating income, net income and diluted earnings per share for the three months ended March 31, 2012.
“Our team delivered another solid operating performance achieving top line growth of 14% and impressive operating income and earnings growth of 26.3% and 29.6%, respectively.”
Operating revenue for the quarter ended March 31, 2012 increased 14.1% to $137.1 million from $120.2 million for the same quarter in 2011. Income from operations was $16.8 million, compared with $13.3 million in the prior-year quarter. As a percent of operating revenue, income from operations increased to 12.3% from 11.1% for the same quarter last year. Net income during the period increased to $10.3 million from $7.9 million in the prior-year quarter. Income per diluted share for the first quarter of 2012 was $0.35 compared with $0.27 in the prior-year quarter.
Bruce A. Campbell, Chairman, President, and CEO, commenting on the first quarter said, “Our team delivered another solid operating performance achieving top line growth of 14% and impressive operating income and earnings growth of 26.3% and 29.6%, respectively.”
Commenting further, Mr. Campbell said, “Within our Forward Air, Inc. business segment, we continued to experience strong demand for our airport-to-airport service offering which was nicely complemented by considerable revenue growth from both our Logistics group, as well as, from our Forward Air Complete pick-up and delivery product. In the first quarter, Logistics revenue grew over 29% while Complete revenues grew nearly 31% as we achieved a record 19.4% attachment rate to our linehaul shipments.”
Turning to the Forward Air Solutions business segment, Mr. Campbell said, “Solutions showed year-over-year improvement and generated a small profit in March. As we exit the historically most challenging quarter for this service offering, we anticipate continued improvement in our year-over-year results as a number of key initiatives, begun in the first quarter, are completed and fully implemented.”
In closing, Mr. Campbell said, “As always, I would like to thank the Forward Air team of employees and independent contractors for their dedication and hard work. Without them, these results would not have been possible.”
Commenting on the Company’s guidance for the second quarter, Rodney L. Bell, Senior Vice President and CFO said, “We anticipate that our second quarter 2012 revenues will increase in the range of 8% to 12% over the comparable 2011 period, and we expect income per diluted share to be between $0.43 and $0.47 per share. This compares to $0.40 per share in the second quarter of 2011.”
Review of Financial Results
Forward Air will hold a conference call to discuss first quarter 2012 results on Friday, April 20, 2012 at 9:00 a.m. EDT. The Company’s conference call will be available online at www.forwardair.com or by dialing 800-230-1951. 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 20 cities within the Mid-Atlantic, Southeast, Midwest and Southwestern United States.
Forward Air Corporation | ||||||||||
Consolidated Statements of Comprehensive Income |
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(In thousands, except per share data) | ||||||||||
(Unaudited) | ||||||||||
Three months ended | ||||||||||
March 31, |
March 31, |
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Operating revenue: | ||||||||||
Forward Air | ||||||||||
Airport-to-airport | $ | 90,627 | $ | 82,147 | ||||||
Logistics | 21,313 | 16,494 | ||||||||
Other | 6,202 | 6,403 | ||||||||
Forward Air Solutions | ||||||||||
Pool distribution | 18,939 | 15,157 | ||||||||
Total operating revenue | 137,081 | 120,201 | ||||||||
Operating expenses: | ||||||||||
Purchased transportation | ||||||||||
Forward Air | ||||||||||
Airport-to-airport | 36,758 | 32,593 | ||||||||
Logistics | 15,716 | 12,799 | ||||||||
Other | 1,598 | 1,473 | ||||||||
Forward Air Solutions | ||||||||||
Pool distribution | 5,126 | 3,457 | ||||||||
Total purchased transportation | 59,198 | 50,322 | ||||||||
Salaries, wages and employee benefits | 33,174 | 30,495 | ||||||||
Operating leases | 7,106 | 6,706 | ||||||||
Depreciation and amortization | 5,121 | 5,082 | ||||||||
Insurance and claims | 2,798 | 2,175 | ||||||||
Fuel expense | 2,541 | 2,388 | ||||||||
Other operating expenses | 10,354 | 9,747 | ||||||||
Total operating expenses | 120,292 | 106,915 | ||||||||
Income from operations | 16,789 | 13,286 | ||||||||
Other income (expense): | ||||||||||
Interest expense | (51 | ) | (195 | ) | ||||||
Other, net | 17 | 16 | ||||||||
Total other expense | (34 | ) | (179 | ) | ||||||
Income before income taxes | 16,755 | 13,107 | ||||||||
Income taxes | 6,482 | 5,238 | ||||||||
Net income and comprehensive income | $ | 10,273 | $ | 7,869 | ||||||
Net income per share: | ||||||||||
Basic | $ | 0.36 | $ | 0.27 | ||||||
Diluted | $ | 0.35 | $ | 0.27 | ||||||
Weighted average shares outstanding: | ||||||||||
Basic | 28,692 | 29,135 | ||||||||
Diluted | 29,363 | 29,371 | ||||||||
Dividends per share: | $ | 0.07 | $ | 0.07 | ||||||
Forward Air Corporation | ||||||||
Consolidated Balance Sheets | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
March 31, |
December 31, |
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Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 69,397 | $ | 58,801 | ||||
Accounts receivable, net | 75,376 | 70,922 | ||||||
Other current assets | 10,669 | 9,994 | ||||||
Total current assets | 155,442 | 139,717 | ||||||
Property and equipment | 235,138 | 223,135 | ||||||
Less accumulated depreciation and amortization | 96,531 | 93,267 | ||||||
Net property and equipment | 138,607 | 129,868 | ||||||
Goodwill and other acquired intangibles: | ||||||||
Goodwill | 43,332 | 43,332 | ||||||
Other acquired intangibles, net of accumulated amortization | 25,521 | 26,668 | ||||||
Total net goodwill and other acquired intangibles | 68,853 | 70,000 | ||||||
Other assets | 1,858 | 1,566 | ||||||
Total assets | $ | 364,760 | $ | 341,151 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 16,563 | $ | 12,392 | ||||
Accrued expenses | 23,163 | 20,986 | ||||||
Current portion of debt and capital lease obligations | 521 | 552 | ||||||
Total current liabilities | 40,247 | 33,930 | ||||||
Debt and capital lease obligations, less current portion | 228 | 333 | ||||||
Other long-term liabilities | 9,470 | 8,860 | ||||||
Deferred income taxes | 10,058 | 11,126 | ||||||
Shareholders’ equity: | ||||||||
Common stock | 289 | 285 | ||||||
Additional paid-in capital | 52,212 | 42,212 | ||||||
Retained earnings | 252,256 | 244,405 | ||||||
Total shareholders’ equity | 304,757 | 286,902 | ||||||
Total liabilities and shareholders’ equity | $ | 364,760 | $ | 341,151 | ||||
(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 | ||||||||||
March 31, |
March 31, |
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Operating activities: | ||||||||||
Net income | $ | 10,273 | $ | 7,869 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||
Depreciation and amortization | 5,121 | 5,082 | ||||||||
Share-based compensation | 1,606 | 1,443 | ||||||||
Loss on disposal of property and equipment | 196 | 21 | ||||||||
Provision for loss (recovery) on receivables | 110 | (50 | ) | |||||||
Provision for revenue adjustments | 427 | 484 | ||||||||
Deferred income taxes | (804 | ) | 20 | |||||||
Tax benefit for stock options exercised | (204 | ) | (88 | ) | ||||||
Changes in operating assets and liabilities | ||||||||||
Accounts receivable | (2,491 | ) | (6,058 | ) | ||||||
Prepaid expenses and other current assets | (925 | ) | (881 | ) | ||||||
Accounts payable and accrued expenses | 4,646 | 7,377 | ||||||||
Net cash provided by operating activities | 17,955 | 15,219 | ||||||||
Investing activities: | ||||||||||
Proceeds from disposal of property and equipment | 205 | 279 | ||||||||
Purchases of property and equipment | (13,098 | ) | (7,329 | ) | ||||||
Other | (306 | ) | 308 | |||||||
Net cash used in investing activities | (13,199 | ) | (6,742 | ) | ||||||
Financing activities: | ||||||||||
Payments of debt and capital lease obligations | (136 | ) | (171 | ) | ||||||
Proceeds from exercise of stock options | 8,192 | 4,838 | ||||||||
Payments of cash dividends | (2,034 | ) | (2,055 | ) | ||||||
Cash settlement of share-based awards for minimum tax withholdings | (386 | ) | — | |||||||
Tax benefit for stock options exercised | 204 | 88 | ||||||||
Net cash provided by financing activities | 5,840 | 2,700 | ||||||||
Net increase in cash | 10,596 | 11,177 | ||||||||
Cash at beginning of period | 58,801 | 74,504 | ||||||||
Cash at end of period | $ | 69,397 | $ | 85,681 | ||||||