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Forward Air Corporation Reports Second Quarter 2011 Results
Dépèche transmise le 20 juillet 2011 par Business Wire
Forward Air Corporation Reports Second Quarter 2011 Results
GREENEVILLE, Tenn.--(BUSINESS WIRE)--Forward Air Corporation (NASDAQ:FWRD) today reported revenue, operating income, net income and diluted earnings per share for the second quarter and six months ended June 30, 2011.
“We anticipate that our third quarter 2011 revenues will increase in the range of 6% to 10% over the comparable 2010 period, and we expect income per diluted share to be between $0.38 and $0.42 per share. This compares to $0.31 per share in the third quarter of 2010.”
Operating revenue for the quarter ended June 30, 2011 increased 8.3% to $132.2 million from $122.1 million for the same quarter in 2010. Income from operations was $19.9 million, compared with $13.5 million in the prior-year quarter. As a percent of operating revenue, income from operations increased to 15.1% from 11.1% for the same quarter last year. Net income during the period increased to $12.0 million from $7.9 million in the prior-year quarter. Income per diluted share for the second quarter of 2011 was $0.40 compared with $0.27 in the prior-year quarter.
Operating revenue for the six months ended June 30, 2011 increased 10.2% to $252.4 million from $229.1 million for the same period in 2010. Income from operations was $33.2 million, compared with $19.6 million in the prior-year period. As a percent of operating revenue, income from operations increased to 13.1% for the first six months of 2011 from 8.6% for the same period in 2010. Net income during the period was $19.8 million compared to $11.3 million in the prior-year period. Income per diluted share from operations for the first six months of 2011 was $0.67 compared with $0.39 in the prior-year period.
Bruce A. Campbell, Chairman, President, and CEO, commenting on the second quarter said, “We are pleased to announce that the hard work and dedication of our employees and independent contractors has once again produced outstanding quarterly results. In our core airport-to-airport business, our yield remained strong, which was driven in part by our June 6, 2011 general rate increase along with continued pricing discipline. Our tonnage volumes, while positive each month of the quarter, saw some periodic softness. This softness, which we view as a function of the macroeconomic environment, appears to be persisting somewhat into the third quarter.”
Commenting further, Mr. Campbell said, “Our Forward Air Solutions team continues to make steady progress by nearly cutting in half the $0.02 earnings per share deficit from a year ago. With a solid cost model and the full benefit of new business wins we fully expect Solutions to be a positive contributor to earnings in the third quarter.”
Also commenting on the quarter, Rodney L. Bell, Senior Vice President and CFO said, “On the strength of an impressive $17.3 million in cash provided by operating activities we were able to increase our cash balance by $10.4 million in the quarter. We ended the quarter with $96.1 million in cash, $50 million outstanding on our line of credit and $38.2 million of availability on our credit facility.”
Commenting on the Company’s guidance for the second quarter, Mr. Bell said, “We anticipate that our third quarter 2011 revenues will increase in the range of 6% to 10% over the comparable 2010 period, and we expect income per diluted share to be between $0.38 and $0.42 per share. This compares to $0.31 per share in the third quarter of 2010.”
Review of Financial Results
Forward Air will hold a conference call to discuss second quarter 2011 results on Thursday, July 21, 2011 at 9:00 a.m. EDT. The Company’s conference call will be available online at www.forwardair.com or by dialing 800.841.9385, pass code 15649968. 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 | ||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Operating revenue: | ||||||||||||||||
Forward Air | ||||||||||||||||
Airport-to-airport | $ | 91,493 | $ | 81,741 | $ | 173,640 | $ | 152,628 | ||||||||
Logistics | 18,005 | 17,160 | 34,500 | 31,015 | ||||||||||||
Other | 6,871 | 6,389 | 13,274 | 12,264 | ||||||||||||
Forward Air Solutions | ||||||||||||||||
Pool distribution | 15,823 | 16,842 | 30,980 | 33,201 | ||||||||||||
Total operating revenue | 132,192 | 122,132 | 252,394 | 229,108 | ||||||||||||
Operating expenses: | ||||||||||||||||
Purchased transportation | ||||||||||||||||
Forward Air | ||||||||||||||||
Airport-to-airport | 35,675 | 32,501 | 68,269 | 61,300 | ||||||||||||
Logistics | 13,373 | 13,071 | 26,173 | 23,839 | ||||||||||||
Other | 1,659 | 1,616 | 3,132 | 3,108 | ||||||||||||
Forward Air Solutions | ||||||||||||||||
Pool distribution | 3,502 | 3,503 | 6,958 | 6,945 | ||||||||||||
Total purchased transportation | 54,209 | 50,691 | 104,532 | 95,192 | ||||||||||||
Salaries, wages and employee benefits | 31,439 | 33,167 | 61,934 | 63,837 | ||||||||||||
Operating leases | 6,705 | 6,252 | 13,411 | 12,880 | ||||||||||||
Depreciation and amortization | 5,222 | 5,107 | 10,304 | 10,055 | ||||||||||||
Insurance and claims | 1,845 | 2,106 | 4,020 | 4,437 | ||||||||||||
Fuel expense | 2,564 | 2,044 | 4,952 | 4,102 | ||||||||||||
Other operating expenses | 10,332 | 9,263 | 20,079 | 19,048 | ||||||||||||
Total operating expenses | 112,316 | 108,630 | 219,232 | 209,551 | ||||||||||||
Income from operations | 19,876 | 13,502 | 33,162 | 19,557 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (141 | ) | (181 | ) | (336 | ) | (366 | ) | ||||||||
Other, net | 31 | (19 | ) | 47 | 11 | |||||||||||
Total other expense | (110 | ) | (200 | ) | (289 | ) | (355 | ) | ||||||||
Income before income taxes | 19,766 | 13,302 | 32,873 | 19,202 | ||||||||||||
Income taxes | 7,797 | 5,390 | 13,035 | 7,871 | ||||||||||||
Net income | $ | 11,969 | $ | 7,912 | $ | 19,838 | $ | 11,331 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.41 | $ | 0.27 | $ | 0.68 | $ | 0.39 | ||||||||
Diluted | $ | 0.40 | $ | 0.27 | $ | 0.67 | $ | 0.39 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 29,337 | 28,973 | 29,236 | 28,962 | ||||||||||||
Diluted | 29,851 | 29,119 | 29,618 | 29,093 | ||||||||||||
Dividends per share: | $ | 0.07 | $ | 0.07 | $ | 0.14 | $ | 0.14 | ||||||||
Forward Air Corporation | ||||||
Condensed Consolidated Balance Sheets | ||||||
(In thousands) | ||||||
(Unaudited) | ||||||
June 30, | December 31, | |||||
2011 | 2010 (a) | |||||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 96,119 | $ | 74,504 | ||
Accounts receivable, net | 69,779 | 62,763 | ||||
Other current assets | 10,053 | 8,696 | ||||
Total current assets | 175,951 | 145,963 | ||||
Property and equipment | 221,715 | 213,704 | ||||
Less accumulated depreciation and amortization | 88,517 | 87,272 | ||||
Total property and equipment, net | 133,198 | 126,432 | ||||
Goodwill and other acquired intangibles: | ||||||
Goodwill | 43,332 | 43,332 | ||||
Other acquired intangibles, net | 28,963 | 31,259 | ||||
Total goodwill and other acquired intangibles | 72,295 | 74,591 | ||||
Other assets | 1,535 | 1,810 | ||||
Total assets | $ | 382,979 | $ | 348,796 | ||
Liabilities and Shareholders’ Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 15,354 | $ | 10,687 | ||
Accrued expenses | 17,933 | 16,280 | ||||
Current portion of debt and capital lease obligations | 583 | 638 | ||||
Total current liabilities | 33,870 | 27,605 | ||||
Debt and capital lease obligations, less current portion | 50,611 | 50,883 | ||||
Other long-term liabilities | 7,782 | 8,106 | ||||
Deferred income taxes | 7,980 | 6,116 | ||||
Shareholders’ equity: | ||||||
Common stock | 294 | 290 | ||||
Additional paid-in capital | 35,231 | 24,300 | ||||
Retained earnings | 247,211 | 231,496 | ||||
Total shareholders’ equity | 282,736 | 256,086 | ||||
Total liabilities and shareholders’ equity | $ | 382,979 | $ | 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 | ||||||||
June 30, | June 30, | |||||||
2011 | 2010 | |||||||
Operating activities: | ||||||||
Net income | $ | 11,969 | $ | 7,912 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation and amortization | 5,222 | 5,107 | ||||||
Share-based compensation | 1,512 | 1,618 | ||||||
Gain on disposal of property and equipment | (21 | ) | (8 | ) | ||||
Provision for loss on receivables | 22 | 134 | ||||||
Provision for revenue adjustments | 449 | 414 | ||||||
Deferred income taxes | 1,919 | (791 | ) | |||||
Tax benefit for stock options exercised | (131 | ) | (5 | ) | ||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable | (1,863 | ) | (5,664 | ) | ||||
Prepaid expenses and other current assets | (864 | ) | (2,400 | ) | ||||
Accounts payable and accrued expenses | (874 | ) | 2,402 | |||||
Net cash provided by operating activities | 17,340 | 8,719 | ||||||
Investing activities: | ||||||||
Proceeds from disposal of property and equipment | 388 | 22 | ||||||
Purchases of property and equipment | (8,112 | ) | (3,313 | ) | ||||
Other | (7 | ) | (69 | ) | ||||
Net cash used in investing activities | (7,731 | ) | (3,360 | ) | ||||
Financing activities: | ||||||||
Payments of debt and capital lease obligations | (157 | ) | (229 | ) | ||||
Proceeds from exercise of stock options | 2,793 | 106 | ||||||
Payments of cash dividends | (2,066 | ) | (2,028 | ) | ||||
Common stock issued under employee stock purchase plan | 128 | 91 | ||||||
Tax benefit for stock options exercised | 131 | 5 | ||||||
Net cash provided by (used in) financing activities | 829 | (2,055 | ) | |||||
Net increase in cash | 10,438 | 3,304 | ||||||
Cash at beginning of period | 85,681 | 44,612 | ||||||
Cash at end of period | $ | 96,119 | $ | 47,916 | ||||
Forward Air Corporation | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Six Months Ended | ||||||||
June 30, | June 30, | |||||||
2011 | 2010 | |||||||
Operating activities: | ||||||||
Net income | $ | 19,838 | $ | 11,331 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation and amortization | 10,304 | 10,055 | ||||||
Share-based compensation | 2,955 | 3,381 | ||||||
Gain on disposal of property and equipment | -- | (7 | ) | |||||
Provision for (recovery) loss on receivables | (28 | ) | 224 | |||||
Provision for revenue adjustments | 933 | 837 | ||||||
Deferred income taxes | 1,939 | (1,664 | ) | |||||
Tax benefit for stock options exercised | (219 | ) | (9 | ) | ||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable | (7,921 | ) | (8,882 | ) | ||||
Prepaid expenses and other current assets | (1,745 | ) | (614 | ) | ||||
Accounts payable and accrued expenses | 6,503 | 4,259 | ||||||
Net cash provided by operating activities | 32,559 | 18,911 | ||||||
Investing activities: | ||||||||
Proceeds from disposal of property and equipment | 667 | 42 | ||||||
Purchases of property and equipment | (15,441 | ) | (8,739 | ) | ||||
Other | 301 | (30 | ) | |||||
Net cash used in investing activities | (14,473 | ) | (8,727 | ) | ||||
Financing activities: | ||||||||
Payments of debt and capital lease obligations | (328 | ) | (490 | ) | ||||
Proceeds from exercise of stock options | 7,631 | 144 | ||||||
Payments of cash dividends | (4,121 | ) | (4,057 | ) | ||||
Common stock issued under employee stock purchase plan | < |