Skip to main content

Forward Air Corporation Reports Second Quarter 2024 Results

Positive momentum despite softness in freight market

Continues to accelerate integration, synergy capture and cost elimination

Forward Air Corporation (NASDAQ:FWRD) (the “Company”, “we”, “our”, or “us”) today reported financial results for the three months ended June 30, 2024, as presented in the tables below on a continuing operations basis, with the Company’s former Final Mile business being reported as discontinued operations.

Shawn Stewart, Forward’s recently appointed Chief Executive Officer, said, “As a result of the Omni transaction, the combined company now has a unique platform to drive long-term growth through continued best in class domestic expedited and intermodal services and now global freight forwarding and contract logistics services. In our first full quarter as one company, we are beginning to see the power of the combination. We have recently closed several exciting sales wins, and operationally, we are laser-focused on capturing the previously announced synergies as well as other additional cost saving opportunities that were not previously identified. Our achievements in such a short period of time have only added to my confidence in our combined ability to build on the strengths of our legacy companies.”

Mr. Stewart continued, “I am thrilled to have Jamie Pierson on board as our Chief Financial Officer. Jamie has already made a significant impact at the company, especially to our finance organization's processes and reporting capabilities. I look forward to working alongside him as we chart a new course for the Company.”

Mr. Pierson said, “While we continue to face challenging market conditions, we experienced positive momentum as Consolidated EBITDA, a non-GAAP financial measure calculated pursuant to our credit agreement, increased from approximately $55 million in the first quarter of this year to $81 million in the second quarter. Our results demonstrate progress in our business, and we expect to see additional improvement as we continue to realize synergies associated with the transaction. This quarter, we realized approximately $14 million in cost synergy capture, in line with the original estimates and anticipate being at full run-rate savings earlier than previously anticipated. According to our revised integration plans, we believe that we will be operating at full run rate synergy levels by the end of the first quarter of 2025, and despite the noise of the integration and softness in the broader freight market, we believe that we will deliver somewhere between $310 to $325 million in Consolidated EBITDA for 2024.”

Mr. Stewart added, “Obviously, integrations of this size, magnitude and complexity do not progress in a linear fashion, and while the market at large remains uncertain, we believe in the power of the combined company and expect to demonstrate continued improvement in the quarters to come.”

 

 

Three Months Ended

(in thousands, except per share data)

 

June 30, 2024

 

June 30, 2023

 

Change

 

Percent Change

Operating revenue

 

$

643,666

 

 

$

333,622

 

 

$

310,044

 

 

92.9

%

(Loss) income from operations

 

$

(1,095,755

)

 

$

26,325

 

 

$

(1,122,080

)

 

(4,262.4

)%

Operating margin

 

 

(170.2

)%

 

 

7.9

%

 

(17,810) bps

Net (loss) income

 

$

(966,471

)

 

$

17,127

 

 

$

(983,598

)

 

(5,743.0

)%

Net (loss) income per diluted share

 

$

(23.29

)

 

$

0.65

 

 

$

(23.94

)

 

(3,683.1

)%

Cash (used in) provided by operating activities

 

$

(45,200

)

 

$

56,615

 

 

$

(101,815

)

 

(179.8

)%

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures: 1

 

 

 

 

 

 

 

 

Adjusted net income -consolidated EBITDA

 

$

81,325

 

 

$

101,688

 

 

$

(20,363

)

 

(20.0

)%

 

 

 

 

 

 

 

 

 

Free cash flow

 

$

(59,069

)

 

$

47,654

 

 

$

(106,723

)

 

(224.0

)%

 

 

 

 

 

 

 

 

 

1 Reconciliation of these non-GAAP financial measures are provided below the financial tables.

 

 

 

 

 

 

 

 

 

Review of Financial Results

Forward Air will hold a conference call to discuss second quarter 2024 results on Wednesday, August 7, 2024 at 4:30 p.m. ET. The Company's conference call will be available online on the Investor Relations portion of the Company's website at ir.forwardaircorp.com or by dialing (800) 343-4136, Access Code: FWRDQ224.

A replay of the conference call will be available on the Investor Relations portion of the Company’s website at www.forwardaircorp.com, which we use as a primary mechanism to communicate with our investors. Investors are urged to monitor the Investor Relations portion of the Company’s website to easily find or navigate to current and pertinent information about us.

About Forward Air Corporation

Forward Air is a leading asset-light provider of transportation services across the United States, Canada and Mexico. We provide expedited less-than-truckload services, including local pick-up and delivery, shipment consolidation/deconsolidation, warehousing, and customs brokerage by utilizing a comprehensive national network of terminals. In addition, we offer truckload brokerage services, including dedicated fleet services, and intermodal, first- and last-mile, high-value drayage services, both to and from seaports and railheads, dedicated contract and Container Freight Station warehouse and handling services. Forward also operates a full portfolio of multimodal solutions, both domestically and internationally, via Omni Logistics. Omni Logistics is a global provider of air, ocean and ground services for mission-critical freight. We are more than a transportation company. Forward is a single resource for your shipping needs. For more information, visit our website at www.forwardaircorp.com.

Forward Air Corporation

Condensed Consolidated Statements of Comprehensive (Loss) Income

(Unaudited, in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

Operating revenues:

 

 

 

 

 

 

 

Expedited Freight

$

291,282

 

 

$

269,436

 

 

$

564,577

 

 

$

539,013

 

Intermodal

 

59,299

 

 

 

64,251

 

 

 

115,591

 

 

 

152,420

 

Omni Logistics

 

311,856

 

 

 

 

 

 

536,694

 

 

 

 

Eliminations and other operations

 

(18,771

)

 

 

(65

)

 

 

(31,383

)

 

 

(102

)

Operating revenues

 

643,666

 

 

 

333,622

 

 

 

1,185,479

 

 

 

691,331

 

Operating expenses:

 

 

 

 

 

 

 

Purchased transportation

 

321,587

 

 

 

141,967

 

 

 

598,602

 

 

 

287,138

 

Salaries, wages and employee benefits

 

144,000

 

 

 

73,963

 

 

 

272,867

 

 

 

140,610

 

Operating leases

 

46,258

 

 

 

22,896

 

 

 

85,061

 

 

 

46,969

 

Depreciation and amortization

 

48,639

 

 

 

13,245

 

 

 

80,425

 

 

 

25,617

 

Insurance and claims

 

14,698

 

 

 

12,761

 

 

 

27,579

 

 

 

26,019

 

Fuel expense

 

5,859

 

 

 

5,202

 

 

 

11,105

 

 

 

10,888

 

Other operating expenses

 

65,666

 

 

 

37,263

 

 

 

178,613

 

 

 

80,569

 

Impairment of goodwill

 

1,092,714

 

 

 

 

 

 

1,092,714

 

 

 

 

Total operating expenses

 

1,739,421

 

 

 

307,297

 

 

 

2,346,966

 

 

 

617,810

 

Income (loss) from continuing operations:

 

 

 

 

 

 

 

Expedited Freight

 

21,946

 

 

 

27,063

 

 

 

41,444

 

 

 

56,748

 

Intermodal

 

5,317

 

 

 

4,312

 

 

 

8,903

 

 

 

15,515

 

Omni Logistics

 

(1,105,871

)

 

 

 

 

 

(1,134,456

)

 

 

 

Other Operations

 

(17,147

)

 

 

(5,050

)

 

 

(77,378

)

 

 

1,258

 

(Loss) income from continuing operations

 

(1,095,755

)

 

 

26,325

 

 

 

(1,161,487

)

 

 

73,521

 

Other expense:

 

 

 

 

 

 

 

Interest expense, net

 

(47,265

)

 

 

(2,585

)

 

 

(88,018

)

 

 

(4,940

)

Foreign exchange gain

 

1,567

 

 

 

 

 

 

899

 

 

 

 

Other income, net

 

40

 

 

 

 

 

 

49

 

 

 

 

Total other expense

 

(45,658

)

 

 

(2,585

)

 

 

(87,070

)

 

 

(4,940

)

(Loss) income before income taxes

 

(1,141,413

)

 

 

23,740

 

 

 

(1,248,557

)

 

 

68,581

 

Income tax (benefit) expense

 

(174,942

)

 

 

6,613

 

 

 

(193,292

)

 

 

17,550

 

Net (loss) income from continuing operations

 

(966,471

)

 

 

17,127

 

 

 

(1,055,265

)

 

 

51,031

 

(Loss) income from discontinued operation, net of tax

 

(4,876

)

 

 

2,824

 

 

 

(4,876

)

 

 

5,288

 

Net (loss) income

 

(971,347

)

 

 

19,951

 

 

$

(1,060,141

)

 

$

56,319

 

Net (loss) attributable to noncontrolling interest

 

(325,914

)

 

 

 

 

 

(352,996

)

 

 

 

Net (loss) income attributable to Forward Air

$

(645,433

)

 

$

19,951

 

 

$

(707,145

)

 

$

56,319

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

Basic net (loss) income per share

 

 

 

 

 

 

 

Continuing operations

$

(23.29

)

 

$

0.65

 

 

$

(27.53

)

 

$

1.94

 

Discontinued operation

 

(0.18

)

 

 

0.11

 

 

 

(0.18

)

 

 

0.20

 

Basic

$

(23.47

)

 

$

0.76

 

 

$

(27.71

)

 

$

2.14

 

 

 

 

 

 

 

 

 

Diluted net (loss) income per share

 

 

 

 

 

 

 

Continuing operations

$

(23.29

)

 

$

0.65

 

 

$

(27.53

)

 

$

1.93

 

Discontinued operation

 

(0.18

)

 

 

0.11

 

 

 

(0.18

)

 

 

0.20

 

Diluted

$

(23.47

)

 

$

0.76

 

 

$

(27.71

)

 

$

2.13

 

 

 

 

 

 

 

 

 

Dividends per share:

$

 

 

$

0.24

 

 

$

 

 

$

0.48

 

 

 

 

 

 

 

 

 

Net (loss) income

$

(971,347

)

 

$

19,951

 

 

$

(1,060,141

)

 

$

56,319

 

Other comprehensive (loss) income:

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

(849

)

 

 

 

 

 

(1,000

)

 

 

 

Comprehensive (loss) income

$

(972,196

)

 

$

19,951

 

 

$

(1,059,141

)

 

$

56,319

 

Expedited Freight Segment Information

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

June 30, 2024

 

Percent of Revenue

 

June 30, 2023

 

Percent of Revenue

 

Change

 

Percent Change

Operating revenues:

 

 

 

 

 

 

 

 

 

 

 

Network 1

$

223,334

 

76.7

%

 

$

205,762

 

76.4

%

 

$

17,572

 

 

8.5

%

Truckload

 

44,678

 

15.3

 

 

 

40,432

 

15.0

 

 

 

4,246

 

 

10.5

 

Other

 

23,270

 

8.0

 

 

 

23,242

 

8.6

 

 

 

28

 

 

0.1

 

Total operating revenues

 

291,282

 

100.0

 

 

 

269,436

 

100.0

 

 

 

21,846

 

 

8.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

142,512

 

48.9

 

 

 

124,122

 

46.1

 

 

 

18,390

 

 

14.8

 

Salaries, wages and employee benefits

 

63,845

 

21.9

 

 

 

57,637

 

21.4

 

 

 

6,208

 

 

10.8

 

Operating leases

 

14,730

 

5.1

 

 

 

16,201

 

6.0

 

 

 

(1,471

)

 

(9.1

)

Depreciation and amortization

 

10,692

 

3.7

 

 

 

8,439

 

3.1

 

 

 

2,253

 

 

26.7

 

Insurance and claims

 

10,969

 

3.8

 

 

 

10,104

 

3.8

 

 

 

865

 

 

8.6

 

Fuel expense

 

2,434

 

0.8

 

 

 

2,511

 

0.9

 

 

 

(77

)

 

(3.1

)

Other operating expenses

 

24,154

 

8.3

 

 

 

23,359

 

8.7

 

 

 

795

 

 

3.4

 

Total operating expenses

 

269,336

 

92.5

 

 

 

242,373

 

90.0

 

 

 

26,963

 

 

11.1

 

Income from operations

$

21,946

 

7.5

%

 

$

27,063

 

10.0

%

 

$

(5,117

)

 

(18.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

1 Network revenue is comprised of all revenue, including linehaul, pickup and/or delivery, and fuel surcharge revenue, excluding accessorial and Truckload revenue.

Expedited Freight Operating Statistics

 

 

 

Three Months Ended

 

June 30, 2024

 

June 30, 2023

 

Percent Change

 

 

 

 

 

 

Business days

 

64

 

 

64

 

%

 

 

 

 

 

 

Tonnage 1,2

 

 

 

 

 

Total pounds

 

713,919

 

 

673,878

 

5.9

 

Pounds per day

 

11,155

 

 

10,529

 

5.9

 

 

 

 

 

 

 

Shipments 1,2

 

 

 

 

 

Total shipments

 

870

 

 

842

 

1.4

 

Shipments per day

 

13.6

 

 

13.2

 

1.4

 

 

 

 

 

 

 

Weight per shipment

 

821

 

 

801

 

2.5

 

 

 

 

 

 

 

Revenue per hundredweight 3

$

31.29

 

$

30.79

 

1.6

 

Revenue per hundredweight, ex fuel 3

$

24.38

 

$

24.08

 

1.2

 

 

 

 

 

 

 

Revenue per shipment 3

$

256.80

 

$

246.59

 

4.1

 

Revenue per shipment, ex fuel 3

$

200.05

 

$

192.85

 

3.7

 

 

 

 

 

 

 

1 In thousands

2 Excludes accessorial and Truckload and products

3 Includes intercompany revenue between the Network and Truckload revenue streams

Intermodal Segment Information

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

June 30, 2024

 

Percent of Revenue

 

June 30, 2023

 

Percent of Revenue

 

Change

 

Percent Change

Operating revenue

$

59,299

 

100.0

%

 

$

64,251

 

100.0

%

 

$

(4,952

)

 

(7.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

19,173

 

32.3

 

 

 

17,909

 

27.9

 

 

 

1,264

 

 

7.1

 

Salaries, wages and employee benefits

 

14,899

 

25.1

 

 

 

16,650

 

25.9

 

 

 

(1,751

)

 

(10.5

)

Operating leases

 

4,776

 

8.1

 

 

 

6,695

 

10.4

 

 

 

(1,919

)

 

(28.7

)

Depreciation and amortization

 

4,712

 

7.9

 

 

 

4,806

 

7.5

 

 

 

(94

)

 

(2.0

)

Insurance and claims

 

2,619

 

4.4

 

 

 

2,815

 

4.4

 

 

 

(196

)

 

(7.0

)

Fuel expense

 

2,243

 

3.8

 

 

 

2,692

 

4.2

 

 

 

(449

)

 

(16.7

)

Other operating expenses

 

5,560

 

9.4

 

 

 

8,372

 

13.0

 

 

 

(2,812

)

 

(33.6

)

Total operating expenses

 

53,982

 

91.0

 

 

 

59,939

 

93.3

 

 

 

(5,957

)

 

(9.9

)

Income from operations

$

5,317

 

9.0

%

 

$

4,312

 

6.7

%

 

$

1,005

 

 

23.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Intermodal Operating Statistics

 

 

 

Three Months Ended

 

June 30, 2024

 

June 30, 2023

 

Percent Change

Drayage shipments

 

64,877

 

 

68,180

 

(4.8

)%

Drayage revenue per shipment

$

826

 

$

853

 

(3.2

)%

Omni Logistics Segment Information

(In thousands)

(Unaudited)

 

 

 

 

 

Three Months Ended

 

June 30, 2024

 

Percent of Revenue

Operating revenue

$

311,856

 

 

100.0

%

 

 

 

 

Operating expenses:

 

 

 

Purchased transportation

 

178,674

 

 

57.3

 

Salaries, wages and employee benefits

 

57,536

 

 

18.4

 

Operating leases

 

26,751

 

 

8.6

 

Depreciation and amortization

 

33,235

 

 

10.7

 

Insurance and claims

 

2,845

 

 

0.9

 

Fuel expense

 

1,182

 

 

0.4

 

Other operating expenses

 

24,790

 

 

7.9

 

Impairment of goodwill

 

1,092,714

 

 

350.4

 

Total operating expenses

 

1,417,727

 

 

454.6

 

Loss from operations

$

(1,105,871

)

 

(354.6

)%

 

 

 

 

Forward Air Corporation

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

June 30, 2024

 

December 31, 2023

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

84,886

 

 

$

121,969

Restricted cash and restricted cash equivalents

 

19,769

 

 

 

39,604

Accounts receivable, net

 

368,927

 

 

 

153,267

Other receivables

 

1,476

 

 

 

5,408

Prepaid expenses

 

39,186

 

 

 

25,682

Other current assets

 

44,379

 

 

 

1,098

Total current assets

 

558,623

 

 

 

347,028

 

 

 

 

Noncurrent restricted cash equivalents

 

 

 

 

1,790,500

Property and equipment

 

607,961

 

 

 

508,280

Less accumulated depreciation and amortization

 

279,027

 

 

 

250,185

Property and equipment, net

 

328,934

 

 

 

258,095

Operating lease right-of-use assets

 

323,821

 

 

 

111,552

Goodwill

 

545,380

 

 

 

278,706

Other acquired intangibles, net

 

1,230,699

 

 

 

134,789

Other assets

 

79,859

 

 

 

58,863

Total assets

$

3,067,316

 

 

$

2,979,533

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

143,455

 

 

$

45,430

Accrued expenses

 

117,431

 

 

 

62,948

Other current liabilities

 

53,064

 

 

 

71,727

Current portion of debt and finance lease obligations

 

16,875

 

 

 

12,645

Current portion of operating lease liabilities

 

89,188

 

 

 

44,344

Total current liabilities

 

420,013

 

 

 

237,094

 

 

 

 

Finance lease obligations, less current portion

 

34,957

 

 

 

26,736

Long-term debt, less current portion

 

1,677,315

 

 

 

Long-term debt held in escrow

 

 

 

 

1,790,500

Operating lease liabilities, less current portion

 

243,217

 

 

 

71,598

Liabilities under tax receivable agreement

 

13,270

 

 

 

Other long-term liabilities

 

43,126

 

 

 

47,144

Deferred income taxes

 

271,201

 

 

 

42,200

 

 

 

 

Shareholders' equity:

 

 

 

Preferred stock

 

 

 

 

Common stock

 

277

 

 

 

257

Additional paid-in capital

 

512,638

 

 

 

283,684

Retained earnings

 

(228,151

)

 

 

480,320

Accumulated other comprehensive loss

 

(1,000

)

 

 

Total Forward Air shareholders' equity

 

283,764

 

 

 

764,261

Noncontrolling interest

 

80,453

 

 

 

Total shareholders' equity

 

364,217

 

 

 

764,261

Total liabilities and shareholders' equity

$

3,067,316

 

 

$

2,979,533

Forward Air Corporation

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

Three Months Ended

 

June 30, 2024

 

June 30, 2023

Operating activities:

 

 

 

Net (loss) income from continuing operations

$

(966,471

)

 

$

17,127

 

Adjustments to reconcile net (loss) income of continuing operations to net cash (used in) provided by operating activities of continuing operations

 

 

 

Depreciation and amortization

 

48,639

 

 

 

13,244

 

Impairment of goodwill

 

1,092,714

 

 

 

 

Share-based compensation expense

 

3,620

 

 

 

2,890

 

Provision for revenue adjustments

 

1,121

 

 

 

1,714

 

Deferred income tax (benefit) expense

 

(166,549

)

 

 

325

 

Other

 

2,300

 

 

 

(642

)

Changes in operating assets and liabilities, net of effects from the purchase of acquired businesses:

 

 

 

Accounts receivable

 

(21,770

)

 

 

22,293

 

Other receivables

 

164

 

 

 

 

Other current and noncurrent assets

 

(49,528

)

 

 

(300

)

Accounts payable and accrued expenses

 

10,560

 

 

 

(36

)

Net cash (used in) provided by operating activities of continuing operations

 

(45,200

)

 

 

56,615

 

 

 

 

 

Investing activities:

 

 

 

Proceeds from sale of property and equipment

 

557

 

 

 

1,356

 

Purchases of property and equipment

 

(14,426

)

 

 

(10,317

)

Purchases of a business, net of cash acquired

 

 

 

 

(136

)

Other

 

(85

)

 

 

 

Net cash used in investing activities of continuing operations

 

(13,954

)

 

 

(9,097

)

 

 

 

 

Financing activities:

 

 

 

Repayments of finance lease obligations

 

(4,567

)

 

 

(1,837

)

Payments on credit facility

 

 

 

 

(30,750

)

Payments of dividends to shareholders

 

 

 

 

(6,255

)

Repurchases and retirement of common stock

 

 

 

 

(25,009

)

Proceeds from common stock issued under employee stock purchase plan

 

369

 

 

 

421

 

Payment of minimum tax withholdings on share-based awards

 

(33

)

 

 

(4,292

)

Contributions from subsidiary held for sale

 

 

 

 

6,457

 

Net cash used in financing activities of continuing operations

 

(4,231

)

 

 

(61,265

)

Effect of exchange rate changes on cash

 

646

 

 

 

 

Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents from continuing operations

 

(62,739

)

 

 

(13,747

)

 

 

 

 

Cash from discontinued operation:

 

 

 

Net cash (used in) provided by operating activities of discontinued operation

 

(4,876

)

 

 

6,958

 

Net cash used in investing activities of discontinued operation

 

 

 

 

(469

)

Net cash used in financing activities of discontinued operation

 

 

 

 

(6,489

)

Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents

 

(67,615

)

 

 

(13,747

)

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period of continuing operations

 

172,270

 

 

 

32,028

 

Cash at beginning of period of discontinued operation

 

 

 

 

 

Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents

 

(67,615

)

 

 

(13,747

)

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period of continuing operations

$

104,655

 

 

$

18,281

 

 

 

 

 

Forward Air Corporation

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

Six Months Ended

 

June 30, 2024

 

June 30, 2023

Operating activities:

 

 

 

Net (loss) income from operations

$

(1,055,265

)

 

$

51,031

 

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

 

 

 

Depreciation and amortization

 

80,425

 

 

 

25,617

 

Impairment of goodwill

 

1,092,714

 

 

 

 

Share-based compensation expense

 

5,187

 

 

 

5,796

 

Provision for revenue adjustments

 

2,159

 

 

 

2,812

 

Deferred income tax (benefit) expense

 

(163,604

)

 

 

2,182

 

Other

 

6,469

 

 

 

(1,733

)

Changes in operating assets and liabilities, net of effects from the purchase of acquired businesses:

 

 

 

Accounts receivable

 

(42,265

)

 

 

38,690

 

Other receivables

 

5,531

 

 

 

 

Other current and noncurrent assets

 

(56,637

)

 

 

10,609

 

Accounts payable and accrued expenses

 

28,362

 

 

 

(17,550

)

Net cash provided by operating activities

 

(96,924

)

 

 

117,454

 

 

 

 

 

Investing activities:

 

 

 

Proceeds from sale of property and equipment

 

1,406

 

 

 

3,171

 

Purchases of property and equipment

 

(19,396

)

 

 

(16,836

)

Purchase of a business, net of cash acquired

 

(1,565,242

)

 

 

(56,703

)

Other

 

(174

)

 

 

 

Net cash used in investing activities

 

(1,583,406

)

 

 

(70,368

)

 

 

 

 

Financing activities:

 

 

 

Repayments of finance lease obligations

 

(9,127

)

 

 

(3,923

)

Proceeds from credit facility

 

 

 

 

45,000

 

Payments on credit facility

 

(80,000

)

 

 

(30,750

)

Payment of debt issuance costs

 

(60,591

)

 

 

 

Payment of earn-out liability

 

(12,247

)

 

 

 

Payments of dividends to shareholders

 

 

 

 

(12,600

)

Repurchases and retirement of common stock

 

 

 

 

(79,792

)

Proceeds from common stock issued under employee stock purchase plan

 

369

 

 

 

421

 

Payment of minimum tax withholdings on share-based awards

 

(1,361

)

 

 

(4,292

)

Contributions from (distributions to) subsidiary held for sale

 

 

 

 

11,309

 

Net cash used in financing activities

 

(162,957

)

 

 

(74,627

)

Effect of exchange rate changes on cash

 

745

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

(1,842,542

)

 

 

(27,541

)

 

 

 

 

 

 

 

 

Cash from discontinued operation:

 

 

 

Net cash used in operating activities of discontinued operation

 

(4,876

)

 

 

12,112

 

Net cash provided by (used in) investing activities of discontinued operation

 

 

 

 

(739

)

Net cash (used in) provided by financing activities of discontinued operation

 

 

 

 

(11,373

)

Net increase (decrease) in cash and cash equivalents

 

(1,847,418

)

 

 

(27,541

)

Cash and cash equivalents at beginning of period

 

1,952,073

 

 

 

45,822

 

Cash and cash equivalents at end of period

$

104,655

 

 

$

18,281

 

Forward Air Corporation Reconciliation of Non-GAAP Financial Measures

In this press release, the Company includes financial measures that are derived on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States (GAAP). The Company believes that meaningful analysis of its financial performance requires an understanding of the factors underlying that performance, including an understanding of items that are non-operational. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions as well as evaluating the Company’s performance.

For the three months ended June 30, 2024 and 2023, this press release contains the following non-GAAP financial measures: earnings before interest, taxes, depreciation and amortization (“EBITDA”), and free cash flow.

All non-GAAP financial measures are presented on a continuing operations basis.

The Company believes that EBITDA improves comparability from period to period by removing the impact of its capital structure (interest and financing expenses), asset base (depreciation and amortization) and tax impacts. The Company believes that free cash flow is an important measure of its ability to repay maturing debt or fund other uses of capital that it believes will enhance shareholder value.

The Company is also providing Consolidated EBITDA calculated in accordance with our credit agreement as we believe it provides investors with important information regarding our financial condition and compliance with our obligations under our credit agreement.

Non-GAAP financial measures should be viewed in addition to, and not as an alternative to or substitute for, the Company’s financial results prepared in accordance with GAAP. The Company has included, for the periods indicated, a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure. Investors and other readers are encouraged to review the related U.S. GAAP financial measures and the reconciliations of the non-GAAP measures to their most directly comparable U.S. GAAP measures set forth below.

With respect to the 2024 Consolidated EBITDA guidance, please note that the Company is not providing a quantitative reconciliation of Consolidated EBITDA to Net Income because it is not available without unreasonable efforts. The Company does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliation, or to quantify the probable significance of these items. The adjustments required for any such reconciliation of the Company’s forward-looking non-GAAP financial measures cannot be accurately forecast by the Company, and therefore the reconciliation has been omitted.

The following is a reconciliation of net income to Consolidated EBITDA for the three and six months ended June 30, 2024 and 2023 (in thousands):

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

Net (loss) income

 

$

(966,471

)

 

$

17,127

 

$

(1,055,265

)

 

$

51,031

Interest expense

 

 

47,265

 

 

 

2,585

 

 

88,018

 

 

 

4,940

Income tax (benefit) expense

 

 

(174,942

)

 

 

6,613

 

 

(193,292

)

 

 

17,550

Depreciation and amortization

 

 

48,639

 

 

 

13,245

 

 

80,425

 

 

 

25,617

Reported EBITDA

 

 

(1,045,509

)

 

 

39,570

 

 

(1,080,114

)

 

 

99,138

Impairment of goodwill

 

 

1,092,714

 

 

 

 

 

1,092,714

 

 

 

Transaction and integration costs

 

 

10,018

 

 

 

5,500

 

 

71,942

 

 

 

5,500

Severance costs

 

 

4,029

 

 

 

113

 

 

11,585

 

 

 

161

Cost synergies

 

 

5,747

 

 

 

 

 

16,254

 

 

 

RIF cost savings

 

 

4,878

 

 

 

5,280

 

 

10,576

 

 

 

10,366

Other

 

 

9,448

 

 

 

2,353

 

 

12,926

 

 

 

4,115

Pro forma -Omni adjusted EBITDA

 

 

 

 

 

48,872

 

 

 

 

 

93,290

Consolidated EBITDA

 

$

81,325

 

 

$

101,688

 

$

135,883

 

 

$

212,570

 

 

 

 

The following is a reconciliation of net cash provided by operating activities to free cash flow for the three and six months ended June 30, 2024 and 2023 (in thousands):

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

Net cash (used in) provided by operating activities of continuing operations

 

$

(45,200

)

 

$

56,615

 

 

$

(96,924

)

 

$

117,454

 

Proceeds from sale of property and equipment

 

 

557

 

 

 

1,356

 

 

 

1,406

 

 

 

3,171

 

Purchases of property and equipment

 

 

(14,426

)

 

 

(10,317

)

 

 

(19,396

)

 

 

(16,836

)

Free cash flow

 

$

(59,069

)

 

$

47,654

 

 

$

(114,914

)

 

$

103,789

 

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. Forward-looking statements included in this press release relate to expectations regarding the Company’s long-term growth; ability to achieve and accelerate synergy capture and eliminate costs from our structure; expectations regarding the Company’s expedited freight business; ability to achieve the intended benefits of the acquisition of Omni Logistics, including any revenue and cost synergies; the Company’s expectations regarding the Company’s financial performance, including Consolidated EBITDA, and the impact it may have on the business and results of operations; and expectations regarding the Company's revenue growth strategies, including with respect to operational efficiency and cost control.

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 unduly rely on any of these 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, the Company's ability to achieve the expected strategic, financial and other benefits of the acquisition of Omni Logistics, including the realization of expected synergies and the achievement of deleveraging targets within the expected timeframes or at all, the risk that the businesses will not be integrated successfully or that integration may be more difficult, time-consuming or costly than expected, the risk that operating costs, customer loss, management and employee retention and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) as a result of the acquisition of Omni Logistics may be greater than expected, continued weakening of the freight environment, future debt and financing levels, our ability to deleverage, including, without limitation, through capital allocation or divestitures of non-core businesses, our ability to secure terminal facilities in desirable locations at reasonable rates, more limited liquidity than expected which limits our ability to make key investments, the creditworthiness of our customers and their ability to pay for services rendered, our inability to maintain our historical growth rate because of a decreased volume of freight or decreased average revenue per pound of freight moving through our network, the availability and compensation of qualified Leased Capacity Providers and freight handlers as well as contracted, third-party carriers needed to serve our customers’ transportation needs, our inability to manage our information systems and inability of our information systems to handle an increased volume of freight moving through our network, the occurrence of cybersecurity risks and events, market acceptance of our service offerings, claims for property damage, personal injuries or workers’ compensation, enforcement of and changes in governmental regulations, environmental, tax, insurance and accounting matters, the handling of hazardous materials, changes in fuel prices, loss of a major customer, increasing competition, and pricing pressure, our dependence on our senior management team and the potential effects of changes in employee status, seasonal trends, the occurrence of certain weather events, restrictions in our charter and bylaws and the risks described in our Annual Report on Form 10-K for the year ended December 31, 2023, and as may be identified in our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

We caution readers that any forward-looking statement made by us in this press release is based only on information currently available to us and they should not place undue reliance on these forward-looking statements, which reflect management's opinion 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 unless required by law.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.