Achieves highest ever monthly net income for
the month of September
Reports record quarterly income from
operations and net income per diluted share
Guides record full year 2021 revenue and net
income per diluted share
Forward Air Corporation (NASDAQ:FWRD) (the “Company”, “we”,
“our”, or “us”) today reported financial results for the three and
nine months ended September 30, 2021 as presented in the tables
below on a continuing operations basis (Pool Distribution was
previously reported as a discontinued operation).
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the full release here:
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Forward Air Corporation Reports Third
Quarter 2021 Results (Photo: Business Wire)
Tom Schmitt, Chairman, President and CEO, commenting on third
quarter results from continuing operations said, “During the months
of July and August, we completed a process of cleansing our
inefficient freight and replacing with higher quality freight. Our
surgical collaboration with customers on selecting, handling, and
pricing freight led to the highest ever monthly net income for the
month of September with our less-than-truckload line of business
reporting record levels in weight per shipment and revenue per
shipment. Business momentum combined with the completion of our
cleanse process culminated in record quarterly reported income from
operations of $42.5 million and adjusted income from operations of
$43.4 million. Our record reported net income per diluted share of
$1.12 and adjusted net income per diluted share of $1.14 exceeded
the high end of our $1.03 to $1.07 guidance range. Our third
quarter revenue growth of 26% was slightly below the low end of our
guidance range of 28% to 32%.”
Mr. Schmitt continued, “I am very encouraged by the results in
the month of September, in particular the strong operating margin
expansion in the Expedited Freight segment. We expect volumes in
the fourth quarter 2021 to exceed volumes for the same period of
2020. Through October, our volumes were strong year-over-year. Our
guidance reflects a record full year 2021 revenue and net income
per diluted share. We fully expect our momentum to continue into
2022 and 2023. As we continue to execute upon our strategic
priorities, our full year 2023 targets include revenue of $2.0
billion to $2.6 billion and net income per diluted share of $6.30
to $6.70.”
In closing, Mr. Schmitt said, “In the third quarter, we achieved
the highest income from operations and net income per diluted share
for a quarter in the history of the Company. I would like to thank
all of our teammates and independent contractors for their hard
work in helping to achieve this important milestone.”
Regarding the Company’s fourth quarter 2021 continuing
operations guidance, Rebecca J. Garbrick, CFO, said, “We expect our
year-over-year revenue growth will be 23% to 27% and net income per
diluted share to be between $1.25 to $1.29, compared to reported
net income per diluted share of $0.55 and adjusted net income per
diluted share of $0.62 in the fourth quarter of 2020. Our full year
2021 net income per diluted share is expected to be between $4.08
to $4.12 and adjusted net income per diluted share to be between
$4.30 to $4.34, compared to reported net income per diluted share
of $1.89 and adjusted net income per diluted share of $1.99 in
2020.”
Continuing Operations
Three Months Ended
(in thousands, except per
share data)
September 30, 2021
September 30, 2020
Change
Percent Change
Operating revenue
$
419,625
$
331,997
$
87,628
26.4
%
Income from operations
$
42,476
$
23,510
$
18,966
80.7
%
Operating margin
10.1
%
7.1
%
300 bps
Net income
$
30,503
$
16,992
$
13,511
79.5
%
Net income per diluted share
$
1.12
$
0.61
$
0.51
83.6
%
Cash provided by operating activities
$
42,581
$
20,564
$
22,017
107.1
%
Non-GAAP Financial Measures: 1
Adjusted income from operations
$
43,445
$
25,810
$
17,635
68.3
%
Adjusted net income
$
31,215
$
18,752
$
12,463
66.5
%
Adjusted net income per diluted share
$
1.14
$
0.67
$
0.47
70.1
%
EBITDA
$
51,892
$
32,682
$
19,210
58.8
%
Free cash flow
$
29,166
$
18,766
$
10,400
55.4
%
1 Reconciliation of these non-GAAP
financial measures are provided below the financial tables.
Continuing Operations
Nine Months Ended
(in thousands, except per
share data)
September 30, 2021
September 30, 2020
Change
Percent Change
Operating revenue
$
1,202,498
$
919,232
$
283,266
30.8
%
Income from operations
$
107,324
$
53,198
$
54,126
101.7
%
Operating margin
8.9
%
5.8
%
310 bps
Net income
$
77,894
$
37,634
$
40,260
107.0
%
Net income per diluted share
$
2.83
$
1.35
$
1.48
109.6
%
Cash provided by operating activities
$
82,242
$
80,493
$
1,749
2.2
%
Non-GAAP Financial Measures: 1
Adjusted income from operations
$
115,248
$
54,343
$
60,905
112.1
%
Adjusted net income
$
83,837
$
38,498
$
45,339
117.8
%
Adjusted net income per diluted share
$
3.05
$
1.38
$
1.67
121.0
%
EBITDA
$
135,391
$
81,117
$
54,274
66.9
%
Free cash flow
$
61,566
$
65,469
$
(3,903
)
(6.0
)%
1 Reconciliation of these non-GAAP
financial measures are provided below the financial tables.
On October 26, 2021, our Board of Directors declared a quarterly
cash dividend of $0.21 per share of common stock. The dividend is
payable to shareholders of record at the close of business on
November 24, 2021 and is expected to be paid on December 9, 2021.
This quarterly dividend is made pursuant to a cash dividend policy
approved by the Board of Directors, which anticipates a total
annual dividend of $0.84 for the full year 2021, payable in
quarterly increments of $0.21 per share of common stock. The actual
declaration of future cash dividends, and the establishment of
record and payment dates, is subject to final determination by the
Board of Directors each quarter after its review of the Company’s
financial performance and position.
The Board approved a strategy to divest the Pool Distribution
business (“Pool”) on April 23, 2020, and the sale of Pool was
completed on February 12, 2021. Accordingly, the results of
operations and cash flows for Pool have been presented as a
discontinued operation and have been excluded from continuing
operations in this release for all periods presented. In addition,
Pool assets and liabilities were reflected as “held for sale” on
the Condensed Consolidated Balance Sheets in this press release for
the prior period.
Review of Financial Results
Forward Air will hold a conference call to discuss third quarter
2021 results on Thursday, October 28, 2021 at 9:00 a.m. EDT. The
Company’s conference call will be available online on the Investor
Relations portion of the Company’s website at www.forwardaircorp.com, or by dialing (877)
226-8189, Access Code: 2220892.
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 Investors 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 freight and logistics
company that provides services across the United States and Canada.
We provide expedited less-than-truckload (“LTL”) 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 final mile services, including delivery of
heavy-bulky freight, 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. For more information, visit our
website at www.forwardaircorp.com.
Forward Air
Corporation
Condensed Consolidated
Statements of Comprehensive Income
(Unaudited, in thousands,
except per share data)
Three Months Ended
Nine Months Ended
September 30,
2021
September 30,
2020
September 30,
2021
September 30,
2020
Operating revenue:
Expedited Freight
$
341,557
$
283,514
$
997,478
$
772,801
Intermodal
78,173
48,948
205,820
147,836
Eliminations and other operations
(105
)
(465
)
(800
)
(1,405
)
Operating revenues
419,625
331,997
1,202,498
919,232
Operating expenses:
Purchased transportation
205,474
173,054
605,299
465,721
Salaries, wages and employee benefits
84,410
66,927
243,948
200,258
Operating leases
20,536
17,327
60,073
52,598
Depreciation and amortization
9,416
9,172
28,067
27,919
Insurance and claims
9,984
8,671
30,616
26,437
Fuel expense
4,457
2,715
12,218
9,247
Other operating expenses
42,872
30,621
114,953
83,854
Total operating expenses
377,149
308,487
1,095,174
866,034
Income (loss) from continuing
operations:
Expedited Freight
34,636
23,461
93,854
50,394
Intermodal
8,712
4,837
21,607
12,963
Other Operations
(872
)
(4,788
)
(8,137
)
(10,159
)
Income from continuing operations
42,476
23,510
107,324
53,198
Other expense:
Interest expense
(973
)
(1,304
)
(3,461
)
(3,355
)
Total other expense
(973
)
(1,304
)
(3,461
)
(3,355
)
Income before income taxes
41,503
22,206
103,863
49,843
Income tax (benefit) expense
11,000
5,214
25,969
12,209
Net income from continuing operations
30,503
16,992
77,894
37,634
Loss from discontinued operation, net of
tax
(6,967
)
(345
)
(12,500
)
(9,458
)
Net income and comprehensive income
$
23,536
$
16,647
$
65,394
$
28,176
Net income per share:
Basic net income (loss) per
share
Continuing operations
$
1.12
$
0.61
$
2.84
$
1.35
Discontinued operation
(0.26
)
(0.01
)
(0.46
)
(0.34
)
Net income per basic share1
$
0.86
$
0.60
$
2.39
$
1.01
Diluted net income (loss) per
share
Continuing operations
$
1.12
$
0.61
$
2.83
$
1.35
Discontinued operation
(0.26
)
(0.01
)
(0.46
)
(0.34
)
Net income per diluted share
$
0.86
$
0.60
$
2.37
$
1.01
Dividends per share
$
0.21
$
0.18
$
0.63
$
0.54
1 Rounding may impact summation of
amounts.
Expedited Freight Segment
Information
(In thousands)
(Unaudited)
Three Months Ended
September 30,
2021
Percent of Revenue
September 30,
2020
Percent of Revenue
Change
Percent Change
Operating revenue:
Network 1
$
207,656
60.8
%
$
169,300
59.7
%
$
38,356
22.7
%
Truckload
53,651
15.7
49,836
17.6
3,815
7.7
Final Mile
71,355
20.9
56,994
20.1
14,361
25.2
Other
8,895
2.6
7,384
2.6
1,511
20.5
Total operating revenue
341,557
100.0
283,514
100.0
58,043
20.5
Operating expenses:
Purchased transportation
182,596
53.5
156,078
55.1
26,518
17.0
Salaries, wages and employee benefits
65,898
19.3
54,091
19.1
11,807
21.8
Operating leases
14,687
4.3
13,438
4.7
1,249
9.3
Depreciation and amortization
6,784
2.0
6,757
2.4
27
0.4
Insurance and claims
8,074
2.4
5,765
2.0
2,309
40.1
Fuel expense
2,225
0.7
1,544
0.5
681
44.1
Other operating expenses
26,657
7.8
22,380
7.9
4,277
19.1
Total operating expenses
306,921
89.9
260,053
91.7
46,868
18.0
Income from operations
$
34,636
10.1
%
$
23,461
8.3
%
$
11,175
47.6
%
1Network revenue is comprised of all
revenue, including linehaul, pickup and/or delivery, and fuel
surcharge revenue, excluding accessorial, Truckload and Final Mile
revenue.
Expedited Freight Operating
Statistics
Three Months Ended
September 30,
2021
September 30,
2020
Percent Change
Business days
64
64
—
%
Tonnage 1,2
Total pounds
687,816
636,194
8.1
Pounds per day
10,747
9,941
8.1
Shipments 1,2
Total shipments
845
1,018
(17.0
)
Shipments per day
13.2
15.9
(17.0
)
Weight per shipment
814
625
30.2
Revenue per hundredweight 3
$
29.01
$
26.84
8.1
Revenue per hundredweight, ex fuel 3
$
24.73
$
23.41
5.6
Revenue per shipment 3
$
240.27
$
166.09
44.7
Revenue per shipment, ex fuel 3
$
205.42
$
144.66
42.0
Network revenue from door-to-door
shipments as a percentage of network revenue 3,4
46.7
%
51.3
%
(9.0
)
1 In thousands
2 Excludes accessorial, Truckload and
Final Mile products
3 Includes intercompany revenue between
the Network and Truckload revenue streams
4 Door-to-door shipments include all
shipments with a pickup and/or delivery
Intermodal Segment
Information
(In thousands)
(Unaudited)
Three Months Ended
September 30,
2021
Percent of Revenue
September 30,
2020
Percent of Revenue
Change
Percent Change
Operating revenue
$
78,173
100.0
%
$
48,948
100.0
%
$
29,225
59.7
%
Operating expenses:
Purchased transportation
22,984
29.4
17,270
35.3
5,714
33.1
Salaries, wages and employee benefits
17,596
22.5
11,637
23.8
5,959
51.2
Operating leases
5,856
7.5
3,932
8.0
1,924
48.9
Depreciation and amortization
2,616
3.3
2,356
4.8
260
11.0
Insurance and claims
2,708
3.5
2,058
4.2
650
31.6
Fuel expense
2,231
2.9
1,171
2.4
1,060
90.5
Other operating expenses
15,470
19.8
5,687
11.6
9,783
172.0
Total operating expenses
69,461
88.9
44,111
90.1
25,350
57.5
Income from operations
$
8,712
11.1
%
$
4,837
9.9
%
$
3,875
80.1
%
Intermodal Operating
Statistics
Three Months Ended
September 30,
2021
September 30,
2020
Percent Change
Drayage shipments
91,774
74,506
23.2
%
Drayage revenue per shipment
$
723
$
562
28.6
%
Number of locations
29
24
20.8
%
Forward Air
Corporation
Condensed Consolidated Balance
Sheets
(In thousands)
(Unaudited)
September 30,
2021
December 31, 2020
Assets
Current assets:
Cash and cash equivalents
$
51,930
$
40,254
Accounts receivable, net
205,165
156,490
Other receivables
14,218
—
Other current assets
17,948
28,150
Current assets held for sale
—
21,002
Total current assets
289,261
245,896
Property and equipment
396,094
380,519
Less accumulated depreciation and
amortization
199,875
190,652
Total property and equipment, net
196,219
189,867
Operating lease right-of-use assets
142,623
123,338
Goodwill
254,776
244,982
Other acquired intangibles, net of
accumulated amortization
142,196
145,032
Other assets
45,433
45,181
Noncurrent assets held for sale
—
53,097
Total assets
$
1,070,508
$
1,047,393
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
42,885
$
38,371
Accrued expenses
67,732
51,264
Other current liabilities
—
10,580
Current portion of debt and finance lease
obligations
1,841
1,801
Current portion of operating lease
liabilities
46,008
43,680
Current liabilities held for sale
—
25,924
Total current liabilities
158,466
171,620
Debt and finance lease obligations, less
current portion
161,312
117,408
Operating lease liabilities, less current
portion
97,181
80,346
Other long-term liabilities
57,354
54,129
Deferred income taxes
40,659
41,986
Noncurrent liabilities held for sale
—
34,575
Shareholders’ equity:
Common stock
270
273
Additional paid-in capital
255,071
242,916
Retained earnings
300,195
304,140
Total shareholders’ equity
555,536
547,329
Total liabilities and shareholders’
equity
$
1,070,508
$
1,047,393
Forward Air
Corporation
Condensed Consolidated
Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
September 30,
2021
September 30,
2020
Operating activities:
Net income from continuing operations
$
30,503
$
16,992
Adjustments to reconcile net income of
continuing operations to net cash provided by operating activities
of continuing operations
Depreciation and amortization
9,416
9,172
Change in fair value of earn-out
liability
—
493
Share-based compensation expense
2,601
2,345
Provision for revenue adjustments
1,979
1,185
Deferred income tax benefit
(812
)
(351
)
Other
217
17
Changes in operating assets and
liabilities, net of effects from the purchase of acquired
businesses:
Accounts receivable
1,655
(23,415
)
Other receivables
(727
)
—
Other current and noncurrent assets
1,438
1,283
Accounts payable and accrued expenses
(3,689
)
12,843
Net cash provided by operating activities
of continuing operations
42,581
20,564
Investing activities:
Proceeds from sale of property and
equipment
1,025
427
Purchases of property and equipment
(14,440
)
(2,225
)
Purchases of a business, net of cash
acquired
—
—
Net cash used in investing activities of
continuing operations
(13,415
)
(1,798
)
Financing activities:
Repayments of finance lease
obligations
(492
)
147
Payments on revolving credit facility
—
(20,000
)
Payment of debt issuance costs
(119
)
—
Payment of earn-out liability
(6,519
)
—
Proceeds from issuance of common stock
upon stock option exercises
—
1,901
Payments of dividends to shareholders
(5,705
)
(5,003
)
Repurchases and retirement of common
stock
(14,997
)
(29,989
)
Proceeds from common stock issued under
employee stock purchase plan
—
—
Payment of minimum tax withholdings on
share-based awards
(248
)
(158
)
Contributions from (distributions to)
subsidiary held for sale
—
(3,590
)
Net cash used in financing activities from
continuing operations
(28,080
)
(56,692
)
Net increase (decrease) in cash of
continuing operations
1,086
(37,926
)
Cash from discontinued
operation:
Net cash used in operating activities of
discontinued operation
—
(3,418
)
Net cash used in investing activities of
discontinued operation
—
(172
)
Net cash provided by financing activities
of discontinued operation
—
3,590
Net increase (decrease) in cash and
cash equivalents
1,086
(37,926
)
Cash and cash equivalents at beginning of
period of continuing operations
50,844
80,916
Cash at beginning of period of
discontinued operation
—
—
Net increase (decrease) in cash and
cash equivalents
1,086
(37,926
)
Less: cash at end of period of
discontinued operation
—
—
Cash and cash equivalents at end of
period of continuing operations
$
51,930
$
42,990
Forward Air
Corporation
Condensed Consolidated
Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended
September 30,
2021
September 30,
2020
Operating activities:
Net income from continuing operations
$
77,894
$
37,634
Adjustments to reconcile net income of
continuing operations to net cash provided by operating activities
of continuing operations
Depreciation and amortization
28,067
27,919
Change in fair value of earn-out
liability
(385
)
(2,209
)
Share-based compensation expense
8,179
7,852
Provision for revenue adjustments
5,504
2,972
Deferred income tax (benefit) expense
(1,384
)
4,317
Other
406
714
Changes in operating assets and
liabilities, net of effects from the purchase of acquired
businesses:
Accounts receivable
(49,363
)
(20,436
)
Other receivables
(14,218
)
—
Other current and noncurrent assets
8,184
1,253
Accounts payable and accrued expenses
19,358
20,477
Net cash provided by operating activities
of continuing operations
82,242
80,493
Investing activities:
Proceeds from sale of property and
equipment
2,339
1,415
Purchases of property and equipment
(23,015
)
(16,439
)
Purchase of a business, net of cash
acquired
(22,543
)
(55,931
)
Net cash used in investing activities of
continuing operations
(43,219
)
(70,955
)
Financing activities:
Repayments of finance lease
obligations
(1,445
)
(529
)
Proceeds from revolving credit
facility
45,000
65,000
Payments on revolving credit facility
—
(20,000
)
Payment of debt issuance costs
(119
)
—
Payment of earn-out liability
(6,519
)
(5,284
)
Proceeds from issuance of common stock
upon stock option exercises
3,563
1,901
Payments of dividends to shareholders
(17,270
)
(15,090
)
Repurchases and retirement of common
stock
(48,989
)
(45,248
)
Proceeds from common stock issued under
employee stock purchase plan
388
294
Payment of minimum tax withholdings on
share-based awards
(3,074
)
(3,444
)
Contributions from (distributions to)
subsidiary held for sale
1,118
(8,897
)
Net cash used in financing activities from
continuing operations
(27,347
)
(31,297
)
Net increase (decrease) in cash and cash
equivalents of continuing operations
11,676
(21,759
)
Cash from discontinued
operation:
Net cash used in operating activities of
discontinued operation
(6,902
)
(8,090
)
Net cash provided by (used in) investing
activities of discontinued operation
8,020
(807
)
Net cash (used in) provided by financing
activities of discontinued operation
(1,118
)
8,897
Net increase (decrease) in cash and
cash equivalents
11,676
(21,759
)
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 (decrease) in cash and
cash equivalents
11,676
(21,759
)
Less: cash at end of period of
discontinued operation
—
—
Cash and cash equivalents at end of
period of continuing operations
$
51,930
$
42,990
Forward Air Corporation Reconciliation of Non-GAAP Financial
Measures
In this press release, the Company uses non-GAAP financial
measures that are derived on the basis of methodologies other than
in accordance with 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 and nine months ended September 30, 2021 and 2020,
this press release contains the following non-GAAP financial
measures: earnings before interest, taxes, depreciation and
amortization (“EBITDA”), free cash flow, and reported income from
continuing operations, net income, and net income per diluted share
to adjusted income from continuing operations, net income, and net
income per diluted share. All non-GAAP financial measures are
presented on a continuing operations basis.
The Company believes that EBITDA from continuing operations
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 from continuing operations 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 believes providing adjusted income from
operations, net income and net income per share allows investors to
compare Company performance consistently over various periods
without regard to the impact of these unusual, nonrecurring or
nonoperational items.
Non-GAAP financial measures should be viewed in addition to, and
not as an alternative for, the Company’s financial results prepared
in accordance with GAAP. Non-GAAP financial information does not
represent a comprehensive basis of accounting. As required by the
Securities and Exchange Act of 1933 and the rules and regulations
promulgated thereunder, the Company has included, for the periods
indicated, a reconciliation of the non-GAAP financial measure to
the most directly comparable GAAP financial measure.
The following is a reconciliation of net income from continuing
operations to EBITDA from continuing operations for the three and
nine months ended September 30, 2021 and 2020 (in thousands):
Three Months Ended
Nine Months Ended
Continuing Operations
September 30, 2021
September 30, 2020
September 30, 2021
September 30, 2020
Net income
$
30,503
$
16,992
$
77,894
$
37,634
Interest expense
973
1,304
3,461
3,355
Income tax expense
11,000
5,214
25,969
12,209
Depreciation and amortization
9,416
9,172
28,067
27,919
EBITDA
$
51,892
$
32,682
$
135,391
$
81,117
The following is a reconciliation of net cash provided by
operating activities of continuing operations to free cash flow
from continuing operations for the three and nine months ended
September 30, 2021 and 2020 (in thousands):
Three Months Ended
Nine Months Ended
Continuing Operations
September 30, 2021
September 30, 2020
September 30, 2021
September 30, 2020
Net cash provided by operating
activities
$
42,581
$
20,564
$
82,242
$
80,493
Proceeds from sale of property and
equipment
1,025
427
2,339
1,415
Purchases of property and equipment
(14,440
)
(2,225
)
(23,015
)
(16,439
)
Free cash flow
$
29,166
$
18,766
$
61,566
$
65,469
The following is a reconciliation of reported income from
continuing operations, net income, and net income per diluted share
from continuing operations to adjusted income from continuing
operations, net income, and net income per diluted share from
continuing operations for the three and nine months ended September
30, 2021 and 2020 (in thousands, except net income per diluted
share):
Three Months Ended September
30, 2021
Three Months Ended September
30, 2020
Continuing Operations
Income From Operations
Net Income1
Net Income Per Diluted
Share1,2
Income From Operations
Net Income1
Net Income Per Diluted
Share1
As Reported
$
42,476
$
30,503
$
1.12
$
23,510
$
16,992
$
0.61
Professional fees for an operational
improvement project
969
712
0.03
—
—
—
Reserve for a litigated contract
dispute
—
—
—
2,300
1,760
0.06
As Adjusted
$
43,445
$
31,215
$
1.14
$
25,810
$
18,752
$
0.67
1 Net income and net income per diluted
share amounts are after tax
2 Rounding may impact summation of
amounts.
Nine Months Ended September
30, 2021
Nine Months Ended September
30, 2020
Continuing Operations
Income From Operations
Net Income1
Net Income Per Diluted
Share1
Income From Operations
Net Income1
Net Income Per Diluted
Share1
As Reported
$
107,324
$
77,894
$
2.83
$
53,198
$
37,634
$
1.35
Professional fees for an operational
improvement project
969
727
0.03
—
—
—
Professional fees for cybersecurity and
shareholder engagement activities
6,955
5,216
0.19
—
—
—
Reserve for a litigated contract
dispute
—
—
—
2,300
1,736
0.06
Change in the fair value of the earn-out
liability
—
—
—
(2,152
)
(1,625
)
(0.06
)
Severance expenses
—
—
—
997
753
0.03
As Adjusted
$
115,248
$
83,837
$
3.05
$
54,343
$
38,498
$
1.38
1 Net income and net income per diluted
share amounts are after tax
The following is a reconciliation of targeted net income per
diluted share from continuing operations to adjusted targeted net
income per diluted share from continuing operations for the year
ended December 31, 2021:
Continuing Operations
Net Income Per Diluted
Share1
As targeted
$
4.08 - 4.12
Professional fees for an operational
improvement project2
0.03
Professional fees for cybersecurity and
shareholder engagement activities2
0.19
As adjusted targeted
$
4.30 - 4.34
1
Net income per diluted share is after
tax.
2
The above reconciliation reflects
adjustments to full year 2021 targeted net income per diluted share
from continuing operations based on expenses incurred during the
nine months ended September 30, 2021. Full year expenses could
differ based on future activity.
The following is reconciliation of reported net income per
diluted share from continuing operations to adjusted net income per
diluted share from continuing operations for the three months and
year ended December 31, 2020:
Net Income Per Diluted
Share1
Continuing Operations
Three Months Ended
December 31, 2020
Year Ended December 31,
2020
As reported
$
0.55
$
1.89
Reserve for a litigated contract
dispute
—
0.06
Change in the fair value of the earn-out
liability
0.07
0.01
Severance expenses
—
0.03
As adjusted
$
0.62
$
1.99
1
Net income per diluted share is after
tax.
The following information is provided to supplement this press
release.
Actual - Continuing Operations
Three Months Ended
September 30, 2021
Net income from continuing operations
$
30,503
Income allocated to participating
securities
(235)
Numerator for diluted income per share -
net income
$
30,268
Weighted-average shares outstanding -
diluted
27,144
Diluted net income per share
$
1.12
Projected
Full year 2021
Projected tax rate - continuing
operations
25.2
%
Projected purchases of property and
equipment, net of proceeds from sale of property and equipment1
$
39,000
1 Includes $22,000 for the Columbus, Ohio
hub expansion
Projected
December 31, 2021
Projected weighted-average shares
outstanding - diluted
27,300
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 expected fourth
quarter 2021 revenue, revenue growth, net income per diluted share,
adjusted net income per diluted share and volume, expectations
regarding continued momentum in our business into 2022 and 2023,
expectations regarding expansion of operating margins, and the
future of declaration of dividends.
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 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
COVID-19 pandemic, our ability to manage our growth and ability to
grow, in part, through acquisitions, while being able to
successfully integrate such acquisitions, 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, 2020.
Any forward-looking statement made by us in this press release
is based only on information currently available to us and speaks
only 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211027006187/en/
Forward Air Corporation Brandon Hammer, 423-636-7173
bhammer@forwardair.com
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