Forward Air Provides Mid-Quarter Update on First Quarter 2023 Performance
March 07 2023 - 4:05PM
Business Wire
Forward Air Corporation (NASDAQ: FWRD) (the “Company”,
“Forward”, “we”, “our”, or “us”) today provided the following key
Expedited Freight Operating statistics for the quarter-to-date
period through February 2023. Shipments per day decreased 6.7%,
revenue per hundredweight ex fuel increased 2.6%, while pounds per
day decreased 12.7% and weight per shipment decreased 6.5% over the
same period last year.
Tom Schmitt, Chairman, President and Chief Executive Officer of
Forward Air commented: "We entered the year seeing declines in
volumes. However, we have recently seen improving momentum in
volumes as we ended February and began March with a 6.2% decrease
in pounds vis-a-vis a record period last year.”
Mr. Schmitt further stated: “Our Grow Forward initiative, a
focus on high value freight, an efficient operating network,
strategic pricing discipline, and an expanded customer base, has
gained traction over the past three years. The Forward Force growth
initiatives and Forward Game Shape efficiency and cost management
initiatives, as discussed on the fourth quarter 2022 earnings call,
are underway as planned. Our Forward Force growth initiatives are
bolstered by externally validated research confirming our industry
leading on time and damage free shipments. This premium service is
reflected in our increased shipment quality. For the
quarter-to-date period through February 2023, our weight per piece
increased 13.4% and revenue per ton mile increased 9.0% over the
same period last year. We often talk about stretches in the live
events business, and we stretched in 2023 as shipments for our live
events business increased 12.7% in January as compared to the same
period last year. We also stretched with our Canadian business,
which is up 21.4% quarter-to-date through February 2023 as compared
to the same period last year. Under our Forward Game Shape
initiative, we reduced our headcount by more than 200 full time
employees, excluding the impact of recent acquisitions, over the
past three months, our outside miles continue to be below 5% and
all other cost management efforts including travel reduction are on
track.”
“We continue to target 2023 with higher net income per diluted
share than 2022 requiring precision execution of our Forward Force
and Forward Game Shape initiatives. The current slowdown in
business volumes has created a challenging environment for the
achievement of all our initiatives. We are, however, encouraged
based on our current sales pipeline that volumes will increase in
the second half of 2023.”
The Company’s expectations regarding the Company’s performance
in the first quarter and in any future period are based on
information available at the time of this release, and are subject
to changing conditions, many of which are outside of the Company’s
control.
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.
This press release may contain statements that might be
considered as forward-looking statements or predictions of future
operations including with respect to the Company’s expectations
regarding (i) its performance for the first quarter of 2023 and
fiscal year 2023, (ii) volumes in 2023 and (iii) performance of the
Company’s initiatives. Such statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and are based on management’s belief or interpretation
of information currently available. These statements and
assumptions involve certain risks and uncertainties including that
the Company’s performance in 2023 is worse than anticipated and
volumes do not increase in the second half of 2023. Actual events
may also differ from these expectations as a result of the risks
identified from time to time in our filings with the Securities and
Exchange Commission. We assume no duty to update these statements
as of any future date.
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version on businesswire.com: https://www.businesswire.com/news/home/20230307006007/en/
Forward Air Corporation Brandon Hammer, 423-636-7173
bhammer@forwardair.com
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