07/29/2021 | Press release | Distributed by Public on 07/29/2021 15:48
Continuing Operations | Three Months Ended | |||||||
(in thousands, except per share data) | June 30, 2021 |
June 30, 20201
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Change | Percent Change | ||||
Operating revenue | $ | 420,671 | $ | 281,678 | $ | 138,993 | 49.3 | % |
Income from operations | $ | 42,124 | $ | 13,914 | $ | 28,210 | 202.7% | |
Operating margin | 10.0 | % | 4.9 | % | 510 bps | |||
Net income | $ | 30,677 | $ | 9,225 | $ | 21,452 | 232.5 | % |
Net income per diluted share | $ | 1.11 | $ | 0.33 | $ | 0.78 | 236.4 | % |
Cash provided by operating activities | $ | 22,748 | $ | 29,101 | $ | (6,353) | (21.8) | % |
Non-GAAP Financial Measures: 2
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EBITDA | $ | 51,538 | $ | 23,327 | $ | 28,211 | 120.9 | % |
Free cash flow | $ | 17,517 | $ | 17,806 | $ | (289) | (1.6) | % |
1 Results for the three months ended June 30, 2020 include several non-recurring items including a $2.1 million gain from changes in fair value on an earn-out due to the timing of expected new business wins, partially offset by $1.0 million of severance and $0.7 million in reserves for customers negatively impacted by COVID-19.
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2 EBITDA and free cash flow are non-GAAP financial measures and reconciliations of these non-GAAP financial measures are provided in the below financial tables.
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Continuing Operations | Six Months Ended | |||||||
(in thousands, except per share data) |
June 30, 20211
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June 30, 20202
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Change | Percent Change | ||||
Operating revenue | $ | 782,873 | $ | 587,235 | $ | 195,638 | 33.3 | % |
Income from operations | $ | 64,848 | $ | 29,687 | $ | 35,161 | 118.4 | % |
Operating margin | 8.3 | % | 5.1 | % | 320 bps | |||
Net income | $ | 47,391 | $ | 20,641 | $ | 26,750 | 129.6 | % |
Net income per diluted share | $ | 1.71 | $ | 0.72 | $ | 0.99 | 137.5 | % |
Cash provided by operating activities | $ | 39,661 | $ | 59,929 | $ | (20,268) | (33.8) | % |
Non-GAAP Financial Measures: 3
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EBITDA | $ | 83,499 | $ | 48,434 | $ | 35,065 | 72.4 | % |
Free cash flow | $ | 32,400 | $ | 46,703 | $ | (14,303) | (30.6) | % |
1 Results for the six months ended June 30, 2021 includes a $7.0 million charge for professional fees related to cyber security and shareholder engagement activities.
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2 Results for the six months ended June 30, 2020 include several non-recurring items including a $2.7 million gain from changes in fair value on an earn-out due to the timing of expected new business wins, partially offset by $1.0 million of severance and $0.7 million in reserves for customers negatively impacted by COVID-19.
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3 EBITDA and free cash flow are non-GAAP financial measures and reconciliations of these non-GAAP financial measures are provided in the below financial tables.
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Forward Air Corporation | ||||||||
Condensed Consolidated Statements of Comprehensive Income | ||||||||
(Unaudited, in thousands, except per share data) | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, 2021 |
June 30, 2020 |
June 30, 2021 |
June 30, 2020 |
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Operating revenue: | ||||||||
Expedited Freight | $ | 351,735 | $ | 235,658 | $ | 655,921 | $ | 489,287 |
Intermodal | 69,133 | 46,428 | 127,647 | 98,888 | ||||
Eliminations and other operations | (197) | (408) | (695) | (940) | ||||
Operating revenue | 420,671 | 281,678 | 782,873 | 587,235 | ||||
Operating expenses: | ||||||||
Purchased transportation | 215,217 | 142,069 | 399,825 | 292,667 | ||||
Salaries, wages and employee benefits | 84,641 | 63,772 | 159,538 | 133,331 | ||||
Operating leases | 20,370 | 17,387 | 39,537 | 35,271 | ||||
Depreciation and amortization | 9,414 | 9,413 | 18,651 | 18,747 | ||||
Insurance and claims | 10,891 | 7,722 | 20,632 | 17,766 | ||||
Fuel expense | 4,059 | 2,519 | 7,761 | 6,532 | ||||
Other operating expenses | 33,955 | 24,882 | 72,081 | 53,234 | ||||
Total operating expenses | 378,547 | 267,764 | 718,025 | 557,548 | ||||
Income (loss) from continuing operations: | ||||||||
Expedited Freight | 34,688 | 11,753 | 59,218 | 26,933 | ||||
Intermodal | 8,386 | 4,413 | 12,895 | 8,126 | ||||
Other Operations | (950) | (2,252) | (7,265) | (5,372) | ||||
Income from continuing operations | 42,124 | 13,914 | 64,848 | 29,687 | ||||
Other expense: | ||||||||
Interest expense | (1,323) | (1,198) | (2,488) | (2,051) | ||||
Total other expense | (1,323) | (1,198) | (2,488) | (2,051) | ||||
Income before income taxes | 40,801 | 12,716 | 62,360 | 27,636 | ||||
Income tax expense | 10,124 | 3,491 | 14,969 | 6,995 | ||||
Net income from continuing operations | 30,677 | 9,225 | 47,391 | 20,641 | ||||
Loss from discontinued operation, net of tax | - | (6,071) | (5,533) | (9,112) | ||||
Net income and comprehensive income | $ | 30,677 | $ | 3,154 | $ | 41,858 | $ | 11,529 |
Net income per share: | ||||||||
Basic net income (loss) per share | ||||||||
Continuing operations | $ | 1.12 | $ | 0.33 | $ | 1.72 | $ | 0.72 |
Discontinued operation | - | (0.22) | (0.20) | (0.31) | ||||
Net income per share | $ | 1.12 | $ | 0.11 | $ | 1.52 | $ | 0.41 |
Diluted net income (loss) per share | ||||||||
Continuing operations | $ | 1.11 | $ | 0.33 | $ | 1.71 | $ | 0.72 |
Discontinued operation | - | (0.22) | (0.20) | (0.32) | ||||
Net income per share | $ | 1.11 | $ | 0.11 | $ | 1.51 | $ | 0.40 |
Dividends per share | $ | 0.21 | $ | 0.18 | $ | 0.42 | $ | 0.36 |
Expedited Freight Segment Information | ||||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
June 30, 2021 |
Percent of Revenue |
June 30, 2020 |
Percent of Revenue | Change | Percent Change | |||||||
Operating revenue: | ||||||||||||
Network1
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$ | 210,088 | 59.7 | % | $ | 134,172 | 56.9 | % | $ | 75,916 | 56.6 | % |
Truckload | 56,968 | 16.2 | 41,855 | 17.8 | 15,113 | 36.1 | ||||||
Final Mile | 69,883 | 19.9 | 53,427 | 22.7 | 16,456 | 30.8 | ||||||
Other | 14,796 | 4.2 | 6,204 | 2.6 | 8,592 | 138.5 | ||||||
Total operating revenue | 351,735 | 100.0 | 235,658 | 100.0 | 116,077 | 49.3 | ||||||
Operating expenses: | ||||||||||||
Purchased transportation | 191,648 | 54.5 | 127,478 | 54.1 | 64,170 | 50.3 | ||||||
Salaries, wages and employee benefits | 67,560 | 19.2 | 50,508 | 21.4 | 17,052 | 33.8 | ||||||
Operating leases | 14,868 | 4.2 | 13,338 | 5.7 | 1,530 | 11.5 | ||||||
Depreciation and amortization | 6,779 | 1.9 | 6,740 | 2.9 | 39 | 0.6 | ||||||
Insurance and claims | 8,385 | 2.4 | 5,715 | 2.4 | 2,670 | 46.7 | ||||||
Fuel expense | 2,147 | 0.6 | 1,406 | 0.6 | 741 | 52.7 | ||||||
Other operating expenses | 25,660 | 7.3 | 18,720 | 7.9 | 6,940 | 37.1 | ||||||
Total operating expenses | 317,047 | 90.1 | 223,905 | 95.0 | 93,142 | 41.6 | ||||||
Income from operations | $ | 34,688 | 9.9 | % | $ | 11,753 | 5.0 | % | $ | 22,935 | 195.1 | % |
1Network revenue is comprised of all revenue, including linehaul, pickup and/or delivery, and fuel surcharge revenue, excluding accessorial, Truckload and Final Mile revenue.
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Expedited Freight Operating Statistics | |||||
Three Months Ended | |||||
June 30, 2021 |
June 30, 2020 |
Percent Change | |||
Business days | 64 | 64 | - | % | |
Tonnage 1,2
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Total pounds | 728,191 | 522,031 | 39.5 | ||
Pounds per day | 11,378 | 8,157 | 39.5 | ||
Shipments 1,2
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Total shipments | 1,096 | 963 | 13.8 | ||
Shipments per day | 17.1 | 15.0 | 14.0 | ||
Weight per shipment | 664 | 542 | 22.5 | ||
Revenue per hundredweight 3
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$ | 28.63 | $ | 26.32 | 8.8 |
Revenue per hundredweight, ex fuel 3
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$ | 24.68 | $ | 23.09 | 6.9 |
Revenue per shipment 3
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$ | 191.89 | $ | 139.30 | 37.8 |
Revenue per shipment, ex fuel 3
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$ | 165.62 | $ | 121.77 | 36.0 |
Network revenue from door-to-door shipments as a percentage of network revenue 3,4
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51.3 | % | 49.9 | % | 2.8 |
1 In thousands
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2 Excludes accessorial, Truckload and Final Mile products
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3 Includes intercompany revenue between the Network and Truckload revenue streams
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4 Door-to-door shipments include all shipments with a pickup and/or delivery
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Intermodal Segment Information | ||||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
June 30, 2021 |
Percent of Revenue |
June 30, 2020 |
Percent of Revenue | Change | Percent Change | |||||||
Operating revenue | $ | 69,133 | 100.0 | % | $ | 46,428 | 100.0 | % | $ | 22,705 | 48.9 | % |
Operating expenses: | ||||||||||||
Purchased transportation | 23,767 | 34.4 | 14,904 | 32.1 | 8,863 | 59.5 | ||||||
Salaries, wages and employee benefits | 16,230 | 23.5 | 11,728 | 25.3 | 4,502 | 38.4 | ||||||
Operating leases | 5,500 | 8.0 | 4,045 | 8.7 | 1,455 | 36.0 | ||||||
Depreciation and amortization | 2,612 | 3.8 | 2,648 | 5.7 | (36) | (1.4) | ||||||
Insurance and claims | 2,355 | 3.4 | 1,789 | 3.9 | 566 | 31.6 | ||||||
Fuel expense | 1,912 | 2.8 | 1,113 | 2.4 | 799 | 71.8 | ||||||
Other operating expenses | 8,371 | 12.1 | 5,788 | 12.5 | 2,583 | 44.6 | ||||||
Total operating expenses | 60,747 | 87.9 | 42,015 | 90.5 | 18,732 | 44.6 | ||||||
Income from operations | $ | 8,386 | 12.1 | % | $ | 4,413 | 9.5 | % | $ | 3,973 | 90.0 | % |
Intermodal Operating Statistics
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Three Months Ended | ||||||
June 30, 2021 |
June 30, 2020 |
Percent Change | ||||
Drayage shipments | 96,805 | 68,974 | 40.3 | % | ||
Drayage revenue per shipment | $ | 618 | $ | 556 | 11.2 | % |
Number of locations | 29 | 24 | 20.8 | % |
Forward Air Corporation | ||||
Condensed Consolidated Balance Sheets | ||||
(In thousands) | ||||
(Unaudited) | ||||
June 30, 2021 |
December 31, 2020 | |||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | $ | 50,844 | $ | 40,254 |
Accounts receivable, net | 209,187 | 156,490 | ||
Other receivables | 16,999 | - | ||
Other current assets | 19,982 | 28,150 | ||
Current assets held for sale | - | 21,002 | ||
Total current assets | 297,012 | 245,896 | ||
Property and equipment | 383,155 | 380,519 | ||
Less accumulated depreciation and amortization | 196,168 | 190,652 | ||
Total property and equipment, net | 186,987 | 189,867 | ||
Operating lease right-of-use assets | 148,651 | 123,338 | ||
Goodwill | 254,993 | 244,982 | ||
Other acquired intangibles, net of accumulated amortization | 145,813 | 145,032 | ||
Other assets | 48,385 | 45,181 | ||
Noncurrent assets held for sale | - | 53,097 | ||
Total assets | $ | 1,081,841 | $ | 1,047,393 |
Liabilities and Shareholders' Equity | ||||
Current liabilities: | ||||
Accounts payable | $ | 43,655 | $ | 38,371 |
Accrued expenses | 70,894 | 51,264 | ||
Other current liabilities | 6,813 | 10,580 | ||
Current portion of debt and finance lease obligations | 1,867 | 1,801 | ||
Current portion of operating lease liabilities | 46,042 | 43,680 | ||
Current liabilities held for sale | - | 25,924 | ||
Total current liabilities | 169,271 | 171,620 | ||
Debt and finance lease obligations, less current portion | 161,729 | 117,408 | ||
Operating lease liabilities, less current portion | 103,280 | 80,346 | ||
Other long-term liabilities | 55,741 | 54,129 | ||
Deferred income taxes | 41,471 | 41,986 | ||
Noncurrent liabilities held for sale | - | 34,575 | ||
Shareholders' equity: | ||||
Common stock | 271 | 273 | ||
Additional paid-in capital | 252,466 | 242,916 | ||
Retained earnings | 297,612 | 304,140 | ||
Total shareholders' equity | 550,349 | 547,329 | ||
Total liabilities and shareholders' equity | $ | 1,081,841 | $ | 1,047,393 |
Forward Air Corporation | ||||
Condensed Consolidated Statements of Cash Flows | ||||
(In thousands) | ||||
(Unaudited) | ||||
Three Months Ended | ||||
June 30, 2021 |
June 30, 2020 |
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Operating activities: | ||||
Net income from continuing operations | $ | 30,677 | $ | 9,225 |
Adjustments to reconcile net income of continuing operations to net cash provided by operating activities of continuing operations | ||||
Depreciation and amortization | 9,414 | 9,413 | ||
Change in fair value of earn-out liability | (337) | (2,108) | ||
Share-based compensation expense | 2,981 | 2,429 | ||
Provision for revenue adjustments | 1,748 | 745 | ||
Deferred income tax (benefit) expense | (67) | 3,443 | ||
Other | 97 | 962 | ||
Changes in operating assets and liabilities, net of effects from the purchase of acquired businesses: | ||||
Accounts receivable | (22,995) | (61) | ||
Other receivables | (152) | - | ||
Other current and noncurrent assets | (339) | (2,455) | ||
Accounts payable and accrued expenses | 1,721 | 7,508 | ||
Net cash provided by operating activities of continuing operations | 22,748 | 29,101 | ||
Investing activities: | ||||
Proceeds from sale of property and equipment | 649 | 268 | ||
Purchases of property and equipment | (5,880) | (11,563) | ||
Purchases of a business, net of cash acquired | (7,543) | - | ||
Net cash used in investing activities of continuing operations | (12,774) | (11,295) | ||
Financing activities: | ||||
Repayments of finance lease obligations | (487) | (340) | ||
Proceeds from revolving credit facility | 45,000 | - | ||
Payment of earn-out liability | - | (5,284) | ||
Proceeds from issuance of common stock upon stock option exercises | 1,423 | - | ||
Payments of dividends to stockholders | (5,768) | (5,037) | ||
Repurchases of common stock | (23,994) | - | ||
Proceeds from common stock issued under employee stock purchase plan | 388 | 294 | ||
Payment of minimum tax withholdings on share-based awards | (88) | (614) | ||
Contributions from (distributions to) subsidiary held for sale | - | (3,154) | ||
Net cash provided by (used in) financing activities from continuing operations | 16,474 | (14,135) | ||
Net increase in cash of continuing operations | 26,448 | 3,671 | ||
Cash from discontinued operation: | ||||
Net cash used in operating activities of discontinued operation | - | (3,010) | ||
Net cash provided by (used in) investing activities of discontinued operation | - | (144) | ||
Net cash (used in) provided by financing activities of discontinued operation | - | 3,154 | ||
Net increase in cash and cash equivalents | 26,448 | 3,671 | ||
Cash and cash equivalents at beginning of period of continuing operations | 24,396 | 77,245 | ||
Cash at beginning of period of discontinued operation | - | - | ||
Net increase in cash and cash equivalents | 26,448 | 3,671 | ||
Less: cash at end of period of discontinued operation | - | - | ||
Cash and cash equivalents at end of period of continuing operations | $ | 50,844 | $ | 80,916 |
Forward Air Corporation | ||||
Condensed Consolidated Statements of Cash Flows | ||||
(In thousands) | ||||
(Unaudited) | ||||
Six Months Ended | ||||
June 30, 2021 |
June 30, 2020 |
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Operating activities: | ||||
Net income from continuing operations | $ | 47,391 | $ | 20,641 |
Adjustments to reconcile net income of continuing operations to net cash provided by operating activities of continuing operations | ||||
Depreciation and amortization | 18,651 | 18,747 | ||
Change in fair value of earn-out liability | (385) | (2,702) | ||
Share-based compensation expense | 5,578 | 5,507 | ||
Provision for revenue adjustments | 3,525 | 1,787 | ||
Deferred income tax (benefit) expense | (572) | 4,668 | ||
Other | 189 | 697 | ||
Changes in operating assets and liabilities, net of effects from the purchase of acquired businesses: | ||||
Accounts receivable | (51,018) | 2,979 | ||
Other receivables | (13,491) | - | ||
Other current and noncurrent assets | 6,746 | (29) | ||
Accounts payable and accrued expenses | 23,047 | 7,634 | ||
Net cash provided by operating activities of continuing operations | 39,661 | 59,929 | ||
Investing activities: | ||||
Proceeds from sale of property and equipment | 1,314 | 988 | ||
Purchases of property and equipment | (8,575) | (14,214) | ||
Purchase of a business, net of cash acquired | (22,543) | (55,931) | ||
Net cash used in investing activities of continuing operations | (29,804) | (69,157) | ||
Financing activities: | ||||
Repayments of finance lease obligations | (954) | (676) | ||
Proceeds from revolving credit facility | 45,000 | 65,000 | ||
Payment of earn-out liability | - | (5,284) | ||
Proceeds from issuance of common stock upon stock option exercises | 3,570 | - | ||
Payments of dividends to stockholders | (11,565) | (10,087) | ||
Repurchases of common stock | (33,992) | (15,259) | ||
Proceeds from common stock issued under employee stock purchase plan | 388 | 294 | ||
Payment of minimum tax withholdings on share-based awards | (2,832) | (3,286) | ||
Contributions from (distributions to) subsidiary held for sale | 1,118 | (5,307) | ||
Net cash provided by financing activities from continuing operations | 733 | 25,395 | ||
Net increase in cash and cash equivalents of continuing operations | 10,590 | 16,167 | ||
Cash from discontinued operation: | ||||
Net cash used in operating activities of discontinued operation | (6,902) | (4,672) | ||
Net cash provided by (used in) investing activities of discontinued operation | 8,020 | (635) | ||
Net cash (used in) provided by financing activities of discontinued operation | (1,118) | 5,307 | ||
Net increase in cash and cash equivalents | 10,590 | 16,167 | ||
Cash and cash equivalents at beginning of period of continuing operations | 40,254 | 64,749 | ||
Cash at beginning of period of discontinued operation | - | - | ||
Net increase in cash and cash equivalents | 10,590 | 16,167 | ||
Less: cash at end of period of discontinued operation | - | - | ||
Cash and cash equivalents at end of period of continuing operations | $ | 50,844 | $ | 80,916 |
Three Months Ended | Six Months Ended | |||||||
Continuing Operations | June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | ||||
Net income | $ | 30,677 | $ | 9,225 | $ | 47,391 | $ | 20,641 |
Interest expense | 1,323 | 1,198 | 2,488 | 2,051 | ||||
Income tax expense | 10,124 | 3,491 | 14,969 | 6,995 | ||||
Depreciation and amortization | 9,414 | 9,413 | 18,651 | 18,747 | ||||
EBITDA | $ | 51,538 | $ | 23,327 | $ | 83,499 | $ | 48,434 |
Three Months Ended | Six Months Ended | |||||||
Continuing Operations | June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | ||||
Net cash provided by operating activities | $ | 22,748 | $ | 29,101 | $ | 39,661 | $ | 59,929 |
Proceeds from sale of property and equipment | 649 | 268 | 1,314 | 988 | ||||
Purchases of property and equipment | (5,880) | (11,563) | (8,575) | (14,214) | ||||
Free cash flow | $ | 17,517 | $ | 17,806 | $ | 32,400 | $ | 46,703 |
Three Months Ended | ||
Actual - Continuing Operations | June 30, 2021 | |
Net income from continuing operations | $ | 30,677 |
Income allocated to participating securities | (256) | |
Numerator for diluted income per share - net income | $ | 30,421 |
Weighted-average shares outstanding - diluted | 27,415 | |
Diluted net income per share | $ | 1.11 |
Projected | Full year 2021 | |
Projected tax rate - continuing operations | 24.8 | % |
Projected purchases of property and equipment, net of proceeds from sale of property and equipment1
|
$ | 43,000 |
1 Includes $23,500 for the Columbus, Ohio hub expansion
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Projected | December 31, 2021 | |
Projected weighted-average shares outstanding - diluted | 26,800 |