Record fourth quarter and full year revenue,
operating income and net income per diluted share
Full year revenue growth of 18.7%, operating
margin expansion of 390 basis points and net income per diluted
share growth of 69.2%
Forward Air Corporation (NASDAQ:FWRD) (the “Company,” “we,”
“our,” or “us”) today reported financial results for the three and
twelve months ended December 31, 2022 as presented in the tables
below on a continuing operations basis.
Tom Schmitt, Chairman, President and CEO, commenting on fourth
quarter and full year 2022 results from continuing operations said,
“We had a record fourth quarter and a record year by a mile. For
that, I extend my thanks to our amazing employees, independent
contractors and business partners. However, we missed our own
guidance for the fourth quarter of 2022 with revenue growth of 5%
coming in below our guidance range of 7% to 11%, and reported net
income per diluted share of $1.60 and adjusted net income per
diluted share of $1.65 coming in below our guidance range of $1.98
to $2.02. We anticipated our continuing drive towards high value
freight to yield a sequentially better fourth quarter than third
quarter. We believe, however, the temporarily inflated inventory
levels caused shipment sizes to fall faster and steeper than both
we and our customers expected. As we mentioned in our mid-quarter
update, we saw an unexpected decrease in the size of shipments from
our customers with weight per shipment down more than 12%. As
shipments become more full we believe so will our volumes. These
headwinds led to a challenging fourth quarter and likely will
impact the first half of 2023 until inventory levels normalize.
“Despite contending with these challenges that we believe are
short-term in nature, we are growing new customers in our targeted
areas. We grew our LTL direct shipper customer count by more than
200% from fourth quarter of 2021 to fourth quarter of 2022 to over
200 direct shipper customers. Additionally, our core customers are
continuing to choose us, with the number of LTL shipments in the
fourth quarter of 2022 remaining stable given a slight 0.4% decline
in shipments as compared to the same period in the prior year. We
believe our service, that was recently validated by a third party
industry expert as being best in the LTL industry in damage-free,
intact, on-time shipments, continues to make us the most compelling
choice for customers with high value freight needs.
“Changes in our freight mix continue to showcase our precision
execution focus on high value freight. From 2021 to 2022,
industrial and electronics shipments are up over 50%, medical is up
almost 25% and live events business up by 120%. Our top four high
value verticals went from 18% of our freight mix in 2021 to 29% in
2022, resulting in fourth quarter of 2022 weight per piece up by
12.1% over the same period in the prior year. In addition to the
positive changes in our freight mix, our fourth quarter 2022
revenue per hundredweight is up by 13.1% including fuel surcharge
revenue and 3.8% excluding fuel surcharge revenue over the same
period in the prior year.”
Mr. Schmitt continued, “In addition to Forward Force, our
initiative to grow high-value freight, we implemented a cost
reduction initiative - which we call Forward Game Shape. We
instituted a hiring freeze (excluding impacts from the Land Air
Express acquisition, our employee headcount has decreased by more
than 100 employees over the past two months), limited travel to
essential only, and reduced our LTL outside miles to below 5%.”
In closing, Mr. Schmitt said, “We remain laser focused on
growing our high value freight with customers, both inorganically,
most recently with the Land Air Express acquisition, and
organically, by opening new terminals. On Monday, we opened our
third Chicago LTL terminal.
“All up, despite a challenging first half we continue to target
2023 net income per diluted share to beat 2022.”
Regarding the Company’s first quarter 2023 continuing operations
guidance, Rebecca J. Garbrick, CFO, said, “We expect our
year-over-year revenue will remain flat, with a range of up 2% to
down 4%, and net income per diluted share will be between $1.30 to
$1.34, compared to reported net income per diluted share of $1.57
in the first quarter of 2022.”
Continuing Operations
Three Months Ended
(in thousands, except per share
data)
December 31, 2022
December 31, 2021
Change
Percent Change
Operating revenue
$
481,200
$
459,929
$
21,271
4.6
%
Income from operations
$
61,415
$
51,977
$
9,438
18.2
%
Operating margin
12.8
%
11.3
%
150 bps
Net income
$
42,942
$
38,197
$
4,745
12.4
%
Net income per diluted share
$
1.60
$
1.40
$
0.20
14.3
%
Cash provided by operating activities
$
62,276
$
42,144
$
20,132
47.8
%
Non-GAAP Financial Measures: 1
Adjusted income from operations
$
63,449
$
51,866
$
11,583
22.3
%
Adjusted net income
$
44,402
$
38,114
$
6,288
16.5
%
Adjusted net income per diluted share
$
1.65
$
1.40
$
0.25
17.9
%
EBITDA
$
73,807
$
63,462
$
10,345
16.3
%
Free cash flow
$
47,897
$
26,354
$
21,543
81.7
%
1 Reconciliation of these non-GAAP
financial measures are provided below the financial tables.
Continuing Operations
Twelve Months Ended
(in thousands, except per share
data)
December 31, 2022
December 31, 2021
Change
Percent Change
Operating revenue
$
1,973,403
$
1,662,427
$
310,976
18.7
%
Income from operations
$
265,976
$
159,301
$
106,675
67.0
%
Operating margin
13.5
%
9.6
%
390 bps
Net income
$
193,191
$
116,091
$
77,100
66.4
%
Net income per diluted share
$
7.14
$
4.22
$
2.92
69.2
%
Cash provided by operating activities
$
259,090
$
124,896
$
134,194
107.4
%
Non-GAAP Financial Measures: 1
Adjusted income from operations
$
267,716
$
166,729
$
100,987
60.6
%
Adjusted net income
$
194,481
$
121,654
$
72,827
59.9
%
Adjusted net income per diluted share
$
7.18
$
4.43
$
2.75
62.1
%
EBITDA
$
313,362
$
198,853
$
114,509
57.6
%
Free cash flow
$
220,733
$
88,430
$
132,303
149.6
%
1 Reconciliation of these non-GAAP
financial measures are provided below the financial tables.
On February 7, 2023, our Board of Directors declared a quarterly
cash dividend of $0.24 per share of common stock. The dividend is
payable to shareholders of record at the close of business on March
2, 2023 and is expected to be paid on March 17, 2023.
This quarterly dividend is made pursuant to a cash dividend
policy approved by the Board of Directors, which anticipates a
total annual dividend of $0.96 for the full year 2023, payable in
quarterly increments of $0.24 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.
Review of Financial Results Forward Air will hold a
conference call to discuss fourth quarter 2022 results on Thursday,
February 9, 2023 at 9:00 a.m. ET. 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: 8042513.
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 provider of transportation services across the United
States, Canada and Mexico. 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. 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 Income
(Unaudited, in thousands,
except per share data)
Three Months Ended
Twelve Months Ended
December 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
Operating revenue:
Expedited Freight
$
372,807
$
376,792
$
1,553,890
$
1,374,270
Intermodal
108,446
83,394
419,718
289,214
Eliminations and other operations
(53
)
(257
)
(205
)
(1,057
)
Operating revenue
481,200
459,929
1,973,403
1,662,427
Operating expenses:
Purchased transportation
212,901
227,776
906,549
833,075
Salaries, wages and employee benefits
84,776
83,866
347,970
327,814
Operating leases
25,997
19,560
97,094
79,633
Depreciation and amortization
12,392
11,485
47,386
39,552
Insurance and claims
12,502
11,570
49,759
42,186
Fuel expense
6,632
4,809
27,583
17,027
Other operating expenses
64,585
48,886
231,086
163,839
Total operating expenses
419,785
407,952
1,707,427
1,503,126
Income (loss) from continuing
operations
Expedited Freight
43,877
45,467
210,968
139,321
Intermodal
13,869
8,510
56,874
30,117
Other operations
3,669
(2,000
)
(1,866
)
(10,137
)
Income from continuing operations
61,415
51,977
265,976
159,301
Other expense:
Interest expense
(1,617
)
(877
)
(5,138
)
(4,338
)
Other, net
—
—
—
—
Total other expense
(1,617
)
(877
)
(5,138
)
(4,338
)
Income before income taxes
59,798
51,100
260,838
154,963
Income tax expense
16,856
12,903
67,647
38,872
Net income from continuing operations
42,942
38,197
193,191
116,091
Income (Loss) from discontinued operation,
net of tax
—
2,268
—
(10,232
)
Net income and comprehensive income
$
42,942
$
40,465
$
193,191
$
105,859
Net income per share:
Basic net income (loss) per
share:
Continuing operations
$
1.61
$
1.41
$
7.17
$
4.25
Discontinued operation
—
0.08
—
(0.37
)
Net income per basic share1
$
1.61
$
1.49
$
7.17
$
3.87
Diluted net income (loss) per
share:
Continuing operations
$
1.60
$
1.40
$
7.14
$
4.22
Discontinued operation
—
0.08
—
(0.37
)
Net income per diluted share
$
1.60
$
1.48
$
7.14
$
3.85
Dividends per share:
$
0.24
$
0.21
$
0.96
$
0.84
1 Rounding may impact summation of
amounts.
Expedited Freight Segment
Information
(In thousands)
(Unaudited)
Three Months Ended
December 31,
2022
Percent of
Revenue
December 31,
2021
Percent of
Revenue
Change
Percent
Change
Operating revenue:
Network 1
$
221,763
59.5
%
$
226,218
60.0
%
$
(4,455
)
(2.0
)%
Truckload
50,320
13.5
60,026
15.9
(9,706
)
(16.2
)
Final Mile
78,161
21.0
71,706
19.0
6,455
9.0
Other
22,563
6.1
18,842
5.0
3,721
19.7
Total operating revenue
372,807
100.0
376,792
100.0
(3,985
)
(1.1
)
Operating expenses:
Purchased transportation
187,739
50.4
204,810
54.4
(17,071
)
(8.3
)
Salaries, wages and employee benefits
69,828
18.7
66,260
17.6
3,568
5.4
Operating leases
17,660
4.7
13,536
3.6
4,124
30.5
Depreciation and amortization
8,454
2.3
8,481
2.3
(27
)
(0.3
)
Insurance and claims
9,947
2.7
8,173
2.2
1,774
21.7
Fuel expense
2,837
0.8
2,387
0.6
450
18.9
Other operating expenses
32,465
8.7
27,678
7.3
4,787
17.3
Total operating expenses
328,930
88.2
331,325
87.9
(2,395
)
(0.7
)
Income from operations
$
43,877
11.8
%
$
45,467
12.1
%
$
(1,590
)
(3.5
)%
1 Network 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
December 31,
2022
December 31,
2021
Percent Change
Business days
63
63
—
%
Tonnage 1,2
Total pounds
648,012
744,725
(13.0
)
Pounds per day
10,286
11,821
(13.0
)
Shipments 1,2
Total shipments
885
889
(0.4
)
Shipments per day
14.0
14.1
(0.7
)
Weight per shipment
732
838
(12.6
)
Revenue per hundredweight 3
$
34.68
$
30.66
13.1
Revenue per hundredweight, ex fuel 3
$
26.07
$
25.11
3.8
Revenue per shipment 3
$
253.83
$
256.85
(1.2
)
Revenue per shipment, ex fuel 3
$
190.84
$
210.40
(9.3
)
1 In thousands.
2 Excludes accessorial, Truckload and
Final Mile products.
3 Includes intercompany revenue between
the Network and Truckload revenue streams.
Intermodal Segment
Information
(In thousands)
(Unaudited)
Three Months Ended
December 31,
2022
Percent of
Revenue
December 31,
2021
Percent of
Revenue
Change
Percent
Change
Operating revenue
$
108,446
100.0
%
$
83,394
100.0
%
$
25,052
30.0
%
Operating expenses:
Purchased transportation
25,215
23.3
23,221
27.8
1,994
8.6
Salaries, wages and employee benefits
18,695
17.2
17,711
21.2
984
5.6
Operating leases
8,337
7.7
6,024
7.2
2,313
38.4
Depreciation and amortization
3,938
3.6
2,983
3.6
955
32.0
Insurance and claims
2,448
2.3
2,385
2.9
63
2.6
Fuel expense
3,795
3.5
2,422
2.9
1,373
56.7
Other operating expenses
32,149
29.6
20,138
24.1
12,011
59.6
Total operating expenses
94,577
87.2
74,884
89.8
19,693
26.3
Income from operations
$
13,869
12.8
%
$
8,510
10.2
%
$
5,359
63.0
%
Intermodal Operating
Statistics
Three Months Ended
December 31,
2022
December 31,
2021
Percent
Change
Drayage shipments
74,532
91,113
(18.2
)%
Drayage revenue per shipment
$
1,288
$
777
65.8
%
Forward Air
Corporation
Condensed Consolidated Balance
Sheets
(In thousands)
(Unaudited)
December 31,
2022
December 31,
2021
Assets
Current assets:
Cash and cash equivalents
$
45,822
$
37,316
Accounts receivable, net
221,028
208,085
Other receivables, net
—
8,097
Other current assets
37,465
29,309
Total current assets
304,315
282,807
Property and equipment, net
249,080
219,095
Operating lease right-of-use assets
141,865
148,198
Goodwill
306,184
266,752
Other acquired intangibles, net
154,801
154,717
Other assets
51,831
46,254
Total assets
$
1,208,076
$
1,117,823
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
54,601
$
44,837
Accrued expenses
54,291
61,621
Other current liabilities
3,956
4,614
Current portion of debt and finance lease
obligations
9,444
6,088
Current portion of operating lease
liabilities
47,106
47,532
Total current liabilities
169,398
164,692
Finance lease obligations, less current
portion
15,844
9,571
Long-term debt, less current portion and
debt issuance costs
106,588
155,466
Operating lease liabilities, less current
portion
98,865
101,409
Other long-term liabilities
59,044
49,624
Deferred income taxes
51,093
43,407
Shareholders’ equity:
Preferred stock
—
—
Common stock
265
270
Additional paid-in capital
270,855
258,474
Retained earnings
436,124
334,910
Total shareholders’ equity
707,244
593,654
Total liabilities and shareholders’
equity
$
1,208,076
$
1,117,823
Forward Air
Corporation
Condensed Consolidated
Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
December 31,
2022
December 31,
2021
Operating activities:
Net income from continuing operations
$
42,942
$
38,197
Adjustments to reconcile net income of
continuing operations to net cash provided by operating activities
of continuing operations:
Depreciation and amortization
12,392
11,485
Change in fair value of earn-out
liability
—
(111
)
Share-based compensation expense
2,633
2,734
Provision for revenue adjustments
4,045
2,439
Deferred income tax expense
5,724
2,805
Other
(619
)
670
Changes in operating assets and
liabilities, net of effects from the purchase of acquired
companies:
Accounts receivable
24,044
(3,598
)
Other receivables
—
6,121
Other current and noncurrent assets
(19,686
)
(16,200
)
Accounts payable, accrued expenses and
other long-term liabilities
(9,199
)
(2,398
)
Net cash provided by operating activities
of continuing operations
62,276
42,144
Investing activities:
Proceeds from sale of property and
equipment
949
304
Purchases of property and equipment
(15,328
)
(16,094
)
Purchase of businesses, net of cash
acquired
(25,672
)
(36,813
)
Net cash used in investing activities of
continuing operations
(40,051
)
(52,603
)
Financing activities:
Proceeds from credit facility
—
150,000
Payments on credit facility
(375
)
(150,000
)
Repayments of finance lease
obligations
(1,845
)
(978
)
Payment of debt issuance costs
—
(363
)
Proceeds from issuance of common stock
upon stock option exercises
—
143
Payments of dividends to shareholders
(6,404
)
(5,706
)
Repurchases and retirement of common
stock
(14,997
)
—
Proceeds from common stock issued under
employee stock purchase plan
409
523
Payment of minimum tax withholdings on
share-based awards
(37
)
(41
)
Contributions from subsidiary held for
sale
—
2,267
Net cash used in financing activities of
continuing operations
(23,249
)
(4,155
)
Net decrease in cash of continuing
operations
(1,024
)
(14,614
)
Cash from discontinued
operation:
Net cash provided by operating activities
of discontinued operation
—
2,267
Net cash provided by investing activities
of discontinued operation
—
—
Net cash used in by financing activities
of discontinued operation
—
(2,267
)
Net decrease in cash and cash
equivalents
(1,024
)
(14,614
)
Cash and cash equivalents at beginning of
period of continuing operations
46,846
51,930
Cash at beginning of period of
discontinued operation
—
—
Net decrease in cash and cash
equivalents
(1,024
)
(14,614
)
Less: cash at end of period of
discontinued operation
—
—
Cash and cash equivalents at end of
period of continuing operations
$
45,822
$
37,316
Forward Air
Corporation
Condensed Consolidated
Statements of Cash Flows
(In thousands)
(Unaudited)
Year Ended
December 31,
2022
December 31,
2021
Operating activities:
Net income from continuing operations
$
193,191
$
116,091
Adjustments to reconcile net income of
continuing operations to net cash provided by operating activities
of continuing operations:
Depreciation and amortization
47,386
39,552
Change in fair value of earn-out
liability
(294
)
(496
)
Share-based compensation expense
11,376
10,913
Provision for revenue adjustments
11,347
7,943
Deferred income tax expense
7,686
1,421
Other
(202
)
1,076
Changes in operating assets and
liabilities, net of effects from the purchase of acquired
companies:
Accounts receivable
(19,128
)
(52,684
)
Other receivables
8,097
(8,097
)
Other current and noncurrent assets
(12,943
)
(8,002
)
Accounts payable, accrued expenses and
other long-term liabilities
12,574
17,179
Net cash provided by operating activities
of continuing operations
259,090
124,896
Investing activities:
Proceeds from sale of property and
equipment
2,372
2,643
Purchases of property and equipment
(40,729
)
(39,109
)
Purchase of businesses, net of cash
acquired
(66,105
)
(59,866
)
Net cash used in investing activities of
continuing operations
(104,462
)
(96,332
)
Financing activities:
Proceeds from credit facility
—
195,000
Payments on credit facility
(49,000
)
(150,000
)
Repayments of finance lease
obligations
(6,054
)
(2,423
)
Payment of debt issuance costs
—
(482
)
Proceeds from issuance of common stock
upon stock option exercises
206
3,706
Payment of earn-out liability
(91
)
(6,519
)
Payments of dividends to shareholders
(25,865
)
(22,976
)
Repurchases and retirement of common
stock
(62,771
)
(48,989
)
Proceeds from common stock issued under
employee stock purchase plan
783
911
Payment of minimum tax withholdings on
share-based awards
(3,330
)
(3,115
)
Contributions from subsidiary held for
sale
—
3,385
Net cash used in financing activities of
continuing operations
(146,122
)
(31,502
)
Net increase (decrease) in cash and cash
equivalents of continuing operations
8,506
(2,938
)
Cash from discontinued
operation:
Net cash used in operating activities of
discontinued operation
—
(4,635
)
Net cash provided by investing activities
of discontinued operation
—
8,020
Net cash used in financing activities of
discontinued operation
—
(3,385
)
Net increase (decrease) in cash and
cash equivalents
8,506
(2,938
)
Cash and cash equivalents at beginning of
period of continuing operations
37,316
40,254
Cash at beginning of period of
discontinued operation
—
—
Net increase (decrease) in cash and cash
equivalents
8,506
(2,938
)
Less: cash at end of period of
discontinued operation
—
—
Cash and cash equivalents at end of
period of continuing operations
$
45,822
$
37,316
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 twelve months ended December 31, 2022 and
2021, this press release contains the following non-GAAP financial
measures: earnings before interest, taxes, depreciation and
amortization (“EBITDA”), free cash flow, adjusted income from
continuing operations, adjusted net income, and adjusted net income
per diluted share. 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 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 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 to EBITDA for
the three and twelve months ended December 31, 2022 and 2021 (in
thousands):
Three Months Ended
Twelve Months Ended
Continuing Operations
December 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
Net income
$
42,942
$
38,197
$
193,191
$
116,091
Interest expense
1,617
877
5,138
4,338
Income tax expense
16,856
12,903
67,647
38,872
Depreciation and amortization
12,392
11,485
47,386
39,552
EBITDA
$
73,807
$
63,462
$
313,362
$
198,853
The following is a reconciliation of net cash provided by
operating activities to free cash flow for the three and twelve
months ended December 31, 2022 and 2021 (in thousands):
Three Months Ended
Twelve Months Ended
Continuing Operations
December 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
Net cash provided by operating
activities
$
62,276
$
42,144
$
259,090
$
124,896
Proceeds from sale of property and
equipment
949
304
2,372
2,643
Purchases of property and equipment
(15,328
)
(16,094
)
(40,729
)
(39,109
)
Free cash flow
$
47,897
$
26,354
$
220,733
$
88,430
The following is a reconciliation of reported income from
operations, net income, and net income per diluted share to
adjusted income from operations, net income, and net income per
diluted share for the three and twelve months ended December 31,
2022 and 2021 (in thousands, except net income per diluted
share):
Three Months Ended December
31, 2022
Three Months Ended December
31, 2021
Continuing Operations
Income From
Operations
Net
Income1
Net Income
Per Diluted
Share1
Income From
Operations
Net
Income2
Net Income
Per Diluted
Share2
As Reported
$
61,415
$
42,942
$
1.60
$
51,977
$
38,197
$
1.40
Vehicle liability reserve
1,500
1,077
0.04
—
—
—
Due diligence and integration costs
534
383
0.01
—
—
—
Change in the fair value of the earn-out
liability
—
—
—
(111
)
(83
)
—
As Adjusted
$
63,449
$
44,402
$
1.65
$
51,866
$
38,114
$
1.40
1 Net income and net income per diluted
share amounts are based on the after-tax effect of each item. The
income tax effect is calculated by applying the effective tax rate
to the pre-tax amount. The total tax effect of the above item is
$574.
2 Net income and net income per diluted
share amounts are based on the after-tax effect of each item. The
income tax effect is calculated by applying the effective tax rate
to the pre-tax amount. The total tax effect of the above item is
($28).
Twelve Months Ended December
31, 2022
Twelve Months Ended December
31, 2021
Continuing Operations
Income From
Operations
Net
Income1
Net Income
Per Diluted
Share1
Income From
Operations
Net
Income2
Net Income
Per Diluted
Share2
As Reported
$
265,976
$
193,191
$
7.14
$
159,301
$
116,091
$
4.22
Vehicle liability reserve
1,500
1,112
0.04
—
—
—
Due diligence and integration costs
534
396
0.01
—
—
—
Professional fees for an operational
improvement project
—
—
—
969
726
0.03
Professional fees for cybersecurity and
shareholder engagement activities
—
—
—
6,955
5,209
0.19
Change in the fair value of the earn-out
liability
(294
)
(218
)
(0.01
)
(496
)
(372
)
(0.01
)
As Adjusted
$
267,716
$
194,481
$
7.18
$
166,729
$
121,654
$
4.43
1 Net income and net income per diluted
share amounts are based on the after-tax effect of each item. The
income tax effect is calculated by applying the effective tax rate
to the pre-tax amount. The total tax effect of the above item is
$451.
2 Net income and net income per diluted
share amounts are based on the after-tax effect of each item. The
income tax effect is calculated by applying the effective tax rate
to the pre-tax amount. The total tax effects of the above items is
$1,864
The following information is provided to supplement this press
release.
Actual - Continuing Operations
Three Months Ended
December 31, 2022
Net income from continuing operations
$
42,942
Income allocated to participating
securities
(264
)
Numerator for diluted net income per share
- net income
$
42,678
Weighted-average common shares and common
share equivalent outstanding - diluted
26,701
Diluted net income per share
$
1.60
Projected
Full Year 2023
Projected tax rate - continuing
operations
25.7
%
Projected purchases of property and
equipment, net of proceeds from sale of property and equipment
$
37,000
Projected
December 31, 2023
Projected weighted-average common shares
and common share equivalent outstanding - diluted
25,800
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 the expected
organic growth and future performance of the Company, expectations
regarding the size of shipments of our customers and its impact on
the Company's volumes, expectations regarding Forward Game Shape,
the Company's ability to successfully grow high value freight,
expectations regarding the Company's net income per diluted share
for full year 2023, first quarter 2023 guidance, including with
respect to revenue and net income per diluted share, expectations
regarding full year 2023 targets, full year 2023 projected tax
rate, fully diluted share count (before consideration of future
share repurchase), projected capital expenditures, the future
declaration of dividends and, the quarterly and full year 2023
anticipated dividends per share.
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, 2021.
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/20230208005893/en/
Forward Air Corporation Brandon Hammer, 423-636-7173
bhammer@forwardair.com
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