Reports record fourth quarter revenue

Reaches agreement in principle for sale of Pool Distribution

Announces acquisition of Proficient Transport to bolster Intermodal Drayage offering

GREENEVILLE, Tenn–(BUSINESS WIRE)–Forward Air Corporation (NASDAQ:FWRD) (the “Company”, “we”, “our”, or “us”) today reported financial results for the three and twelve months ended December 31, 2020 as presented in the tables below on a continuing operations basis (Pool Distribution is being reported as a discontinued operation).

Tom Schmitt, Chairman, President and CEO, commenting on fourth quarter results from continuing operations said, “Our growth strategies drove our record fourth quarter revenue, which came in at the high end of our guidance range. Our business momentum improved during the quarter, and through November we were ahead of our internal forecasts. However, as previously disclosed, a December cyber attack temporarily interrupted our operations and impacted our results. Also, considering our strong growth in Final Mile – which has exceeded our expectations – we recorded an increase to an earn-out liability related to a prior acquisition. Excluding the impacts of these two discrete events, we would have exceeded the high end of our net income per diluted share guidance range.”

“Our organic growth has continued into the first quarter”, said Mr. Schmitt. “Through January, our LTL tonnage is up 10.9% and our LTL shipments are up 14.4% year-over-year, which will become even more accretive following our February 1st general rate increase. Volumes in our other modes have also started the year strong.”

“As we drive organic growth, we are also improving our inorganic growth momentum”, continued Mr. Schmitt. “During the fourth quarter, we closed our previously announced acquisitions of CLW Delivery and Value Logistics, which contributed to our Final Mile and Intermodal results. And today we are pleased to announce an agreement in principle to sell the Pool Distribution business to Ten Oaks Group, which is expected to close in the next two weeks for total consideration of $20 million, consisting of an $8 million upfront cash payment and up to a $12 million earn-out. We are also thrilled to announce that we entered into an agreement to purchase substantially all the assets of Proficient Transport for approximately $15 million. Proficient will strengthen our Intermodal footprint in key Midwest and Southern markets and is expected to contribute $23 million of revenue and $3 million of EBITDA on an annualized basis.”

In closing, Mr. Schmitt said, “As we end 2020, we want to welcome CLW Delivery, Value Logistics and Proficient Transport to the Forward Air family. I would also like to thank our employees and independent contractors for their remarkable efforts to serve our customers during such a difficult year.”

Regarding the Company’s first quarter 2021 continuing operations guidance, Michael J. Morris, CFO, said, “We expect first quarter year-over-year revenue growth of 11% to 15%. We expect net income per diluted share to be between $0.55 to $0.59, which includes approximately $0.07 of professional fees related to cyber security and shareholder engagement activities (which will be recorded in Other Operations). This compares to $0.41 in the first quarter of 2020.”

Continuing Operations

 

Three months ended

(in thousands, except per share data)

 

December 31,

2020

 

December 31,

2019

 

Change

 

Percent

Change

Operating revenue

 

$

350,341

 

 

$

319,656

 

 

$

30,685

 

 

9.6%

Income from operations

 

$

20,726

 

 

$

30,456

 

 

$

(9,730)

 

 

(31.9)%

Operating margin

 

5.9

%

 

9.5

%

 

(360)

bps

 

 

Net income from continuing operations

 

$

15,133

 

 

$

22,336

 

 

$

(7,203)

 

 

(32.2)%

Net income per diluted share

 

$

0.55

 

 

$

0.79

 

 

$

(0.24)

 

 

(30.4)%

Cash provided by operating activities

 

$

14,473

 

 

$

39,706

 

 

$

(25,233)

 

 

(63.5)%

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures: 1

 

 

 

 

 

 

 

 

EBITDA

 

$

29,929

 

 

$

39,320

 

 

$

(9,391)

 

 

(23.9)%

Free cash flow

 

$

11,642

 

 

$

39,450

 

 

$

(27,808)

 

 

(70.5)%

 

 

 

 

 

 

 

 

 

Continuing Operations

 

Twelve months ended

(in thousands, except per share data)

 

December 31,

2020

 

December 31,

2019

 

Change

 

Percent

Change

Operating revenue

 

$

1,269,573

 

 

$

1,215,187

 

 

$

54,386

 

 

4.5

%

Income from operations

 

$

73,924

 

 

$

112,416

 

 

$

(38,492)

 

 

(34.2)

%

Operating margin

 

5.8

%

 

9.3

%

 

(350)

bps

 

 

Net income from continuing operations

 

$

52,767

 

 

$

82,322

 

 

$

(29,555)

 

 

(35.9)

%

Net income per diluted share

 

$

1.89

 

 

$

2.87

 

 

$

(0.98)

 

 

(34.1)

%

Cash provided by operating activities

 

$

94,966

 

 

$

145,074

 

 

$

(50,108)

 

 

(34.5)

%

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures: 1

 

 

 

 

 

 

 

 

EBITDA

 

$

111,046

 

 

$

148,809

 

 

$

(37,763)

 

 

(25.4)

%

Free cash flow

 

$

77,111

 

 

$

125,728

 

 

$

(48,617)

 

 

(38.7)

%

 

 

 

 

 

 

 

 

 

1 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.

On February 2, 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 March 4, 2021 and is expected to be paid on March 19, 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.

On April 23, 2020, the Board approved a strategy to divest of the Pool Distribution business (“Pool”). 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 press release for all periods presented. In addition, Pool assets and liabilities are reflected as “held for sale” on the Consolidated Balance Sheets in this press release.

Review of Financial Results

Forward Air will hold a conference call to discuss fourth quarter 2020 results on Friday, February 12, 2021 at 9:00 a.m. EST. 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 (844) 867-6169, Access Code: 6464581.

A replay of the conference call will be available on the Investor Relations portion of the Company’s website at www.forwardaircorp.com, which the Company will use as a primary mechanism to communicate with 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 the Company.

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; final mile services, including delivery of heavy-bulky freight; truckload brokerage services, including dedicated fleet services, high-security and temperature-controlled logistics services; 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; and pool distribution services, including high-frequency handling and distribution of time sensitive product to numerous destinations within a specific geographic region. For more information, visit our website at www.forwardaircorp.com.

Forward Air Corporation

Consolidated Statements of Comprehensive Income

(In thousands, except per share data)

(Unaudited)

 

 

 

 

 

Three months ended

 

Year ended

 

December 31,

2020

 

December 31,
2019

 

December 31,
2020

 

December 31,

2019

 

 

 

(As Adjusted)

 

 

 

(As Adjusted)

Operating revenue:

 

 

 

 

 

 

 

Expedited Freight

$

299,500

 

 

$

265,879

 

 

$

1,072,301

 

 

$

1,000,934

 

Intermodal

51,767

 

 

54,710

 

 

199,603

 

 

217,711

 

Eliminations and other operations

(926)

 

 

(933)

 

 

(2,331)

 

 

(3,458)

 

Operating revenue

350,341

 

 

319,656

 

 

1,269,573

 

 

1,215,187

 

Operating expenses:

 

 

 

 

 

 

 

Purchased transportation

184,943

 

 

159,857

 

 

650,664

 

 

586,140

 

Salaries, wages and employee benefits

70,527

 

 

65,671

 

 

270,785

 

 

258,001

 

Operating leases

17,122

 

 

16,231

 

 

69,720

 

 

63,092

 

Depreciation and amortization

9,206

 

 

8,863

 

 

37,125

 

 

36,394

 

Insurance and claims

8,475

 

 

9,457

 

 

34,912

 

 

38,733

 

Fuel expense

2,919

 

 

4,540

 

 

12,166

 

 

17,759

 

Other operating expenses

36,423

 

 

24,581

 

 

120,277

 

 

102,652

 

Total operating expenses

329,615

 

 

289,200

 

 

1,195,649

 

 

1,102,771

 

Income (loss) from continuing operations

 

 

 

 

 

 

 

Expedited Freight

20,872

 

 

27,418

 

 

71,266

 

 

103,640

 

Intermodal

3,428

 

 

5,354

 

 

16,391

 

 

23,679

 

Other operations

(3,574)

 

 

(2,316)

 

 

(13,733)

 

 

(14,903)

 

Income from continuing operations

20,726

 

 

30,456

 

 

73,924

 

 

112,416

 

Other expense:

 

 

 

 

 

 

 

Interest expense

(1,206)

 

 

(795)

 

 

(4,561)

 

 

(2,711)

 

Other, net

(3)

 

 

1

 

 

(3)

 

 

(1)

 

Total other expense

(1,209)

 

 

(794)

 

 

(4,564)

 

 

(2,712)

 

Income before income taxes

19,517

 

 

29,662

 

 

69,360

 

 

109,704

 

Income tax expense

4,384

 

 

7,326

 

 

16,593

 

 

27,382

 

Net income from continuing operations

15,133

 

 

22,336

 

 

52,767

 

 

82,322

 

(Loss) income from discontinued operation, net of tax 1

(19,576)

 

 

1,832

 

 

(29,034)

 

 

4,777

 

Net (loss) income and comprehensive (loss) income

$

(4,443)

 

 

$

24,168

 

 

$

23,733

 

 

$

87,099

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

Basic net income (loss) per share:

 

 

 

 

 

 

 

Continuing operations

$

0.55

 

 

$

0.79

 

 

$

1.90

 

 

$

2.89

 

Discontinued operation 1

(0.72)

 

 

0.07

 

 

(1.05)

 

 

0.17

 

Net (loss) income per share 2

$

(0.17)

 

 

$

0.86

 

 

$

0.84

 

 

$

3.06

 

Diluted net income (loss) per share:

 

 

 

 

 

 

 

Continuing operations

$

0.55

 

 

$

0.79

 

 

$

1.89

 

 

$

2.87

 

Discontinued operation 1

(0.72)

 

 

0.07

 

 

(1.05)

 

 

0.17

 

Net (loss) income per share 2

$

(0.17)

 

 

$

0.85

 

 

$

0.84

 

 

$

3.04

 

 

 

 

 

 

 

 

 

Dividends per share:

$

0.21

 

 

$

0.18

 

 

$

0.75

 

 

$

0.72

 

1 2020 loss amounts include the impact of a $21.2 million after-tax non-cash impairment charge to reflect the estimated fair value of Pool Distribution’s net assets.

2 Rounding may impact summation of amounts.

 

Expedited Freight Segment Information

(In millions)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

December 31,

 

Percent of

 

December 31,

 

Percent of

 

 

 

Percent

 

2020 1

 

Revenue

 

2019

 

Revenue

 

Change

 

Change

 

 

 

 

 

(As Adjusted)

 

 

 

 

 

 

Operating revenue:

 

 

 

 

 

 

 

 

 

 

 

Network 2

$

170.0

 

 

56.8

%

 

$

172.1

 

 

64.7

%

 

$

(2.1)

 

 

(1.2)

%

Truckload

54.8

 

 

18.3

 

 

52.5

 

 

19.8

 

 

2.3

 

 

4.4

 

Final Mile

66.3

 

 

22.1

 

 

34.2

 

 

12.9

 

 

32.1

 

 

93.9

 

Other

8.4

 

 

2.8

 

 

7.0

 

 

2.6

 

 

1.4

 

 

20.0

 

Total operating revenue

299.5

 

 

100.0

 

 

265.8

 

 

100.0

 

 

33.7

 

 

12.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

167.2

 

 

55.8

 

 

141.1

 

 

53.1

 

 

26.1

 

 

18.5

 

Salaries, wages and employee benefits

58.4

 

 

19.5

 

 

51.8

 

 

19.5

 

 

6.6

 

 

12.7

 

Operating leases

13.3

 

 

4.4

 

 

12.0

 

 

4.5

 

 

1.3

 

 

10.8

 

Depreciation and amortization

6.8

 

 

2.3

 

 

6.2

 

 

2.4

 

 

0.6

 

 

9.7

 

Insurance and claims

5.9

 

 

2.0

 

 

6.6

 

 

2.5

 

 

(0.7)

 

 

(10.6)

 

Fuel expense

1.7

 

 

0.6

 

 

2.5

 

 

0.9

 

 

(0.8)

 

 

(32.0)

 

Other operating expenses

25.3

 

 

8.4

 

 

18.2

 

 

6.8

 

 

7.1

 

 

39.0

 

Total operating expenses

278.6

 

 

93.0

 

 

238.4

 

 

89.7

 

 

40.2

 

 

16.9

 

Income from operations

$

20.9

 

 

7.0

%

 

$

27.4

 

 

10.3

%

 

$

(6.5)

 

 

(23.7)

%

 

 

 

 

 

 

 

 

 

 

 

 

1 Includes revenues and operating expenses from the acquisition of Linn Star which was acquired in January 2020. Linn Star results are not included in the prior period.

2 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,

 

December 31,

 

Percent

 

2020

 

2019

 

Change

 

 

 

(As Adjusted)

 

 

 

 

 

 

 

 

Business days

64

 

 

64

 

 

%

 

 

 

 

 

 

Tonnage 1,2

 

 

 

 

 

Total pounds

641,370

 

 

642,092

 

 

(0.1)

 

Pounds per day

10,021

 

 

10,033

 

 

(0.1)

 

 

 

 

 

 

 

Shipments 1,2

 

 

 

 

 

Total shipments

1,052

 

 

1,069

 

 

(1.6)

 

Shipments per day

16.4

 

 

16.7

 

 

(1.8)

 

 

 

 

 

 

 

Weight per shipment

610

 

 

601

 

 

1.5

 

 

 

 

 

 

 

Revenue per hundredweight 3

$

26.65

 

 

$

27.02

 

 

(1.4)

 

Revenue per hundredweight, excluding fuel 3

$

23.23

 

 

$

22.72

 

 

2.2

 

 

 

 

 

 

 

Revenue per shipment 3

$

162

 

 

$

164

 

 

(1.2)

 

Revenue per shipment, excluding fuel 3

$

141

 

 

$

139

 

 

1.4

 

Network revenue from door-to-door shipments

as a percentage of network revenue 3,4

46.6

%

 

41.1

%

 

13.4

 

Network gross margin 5

49.6

%

 

53.8

%

 

(7.8)

%

 

 

 

 

 

 

1 In thousands.

 

 

 

 

 

2 Excludes accessorial, full 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.

5 Network revenue less Network purchased transportation as a percentage of Network revenue.

Intermodal Segment Information

(In millions)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

December 31,

 

Percent of

 

December 31,

 

Percent of

 

 

 

Percent

 

2020 1

 

Revenue

 

2019

 

Revenue

 

Change

 

Change

Operating revenue

$

51.8

 

 

100.0

%

 

$

54.7

 

 

100.0

%

 

$

(2.9)

 

 

(5.3)

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

18.4

 

 

35.6

 

 

19.3

 

 

35.3

 

 

(0.9)

 

 

(4.7)

 

Salaries, wages and employee benefits

12.4

 

 

23.9

 

 

13.6

 

 

24.9

 

 

(1.2)

 

 

(8.8)

 

Operating leases

3.9

 

 

7.5

 

 

4.2

 

 

7.7

 

 

(0.3)

 

 

(7.1)

 

Depreciation and amortization

2.4

 

 

4.6

 

 

2.7

 

 

4.9

 

 

(0.3)

 

 

(11.1)

 

Insurance and claims

2.1

 

 

4.1

 

 

1.7

 

 

3.1

 

 

0.4

 

 

23.5

 

Fuel expense

1.2

 

 

2.3

 

 

2.1

 

 

3.8

 

 

(0.9)

 

 

(42.9)

 

Other operating expenses

8.0

 

 

15.4

 

 

5.8

 

 

10.6

 

 

2.2

 

 

37.9

 

Total operating expenses

48.4

 

 

93.4

 

 

49.4

 

 

90.3

 

 

(1.0)

 

 

(2.0)

 

Income from operations

$

3.4

 

 

6.6

%

 

$

5.3

 

 

9.7

%

 

$

(1.9)

 

 

(35.8)

%

 

 

 

 

 

 

 

 

 

 

 

 

1 Includes revenues and operating expenses from the acquisition of OST, which was acquired in July 2019 and partially included in the prior period.

Intermodal Operating Statistics

 

 

 

Three months ended

 

December 31,

 

December 31,

 

Percent

 

2020

 

2019

 

Change

 

 

 

 

 

 

Drayage shipments

75,500

 

 

77,906

 

 

(3.1)

%

Drayage revenue per shipment

$

583

 

 

$

603

 

 

(3.3)

 

Number of locations

24

 

 

21

 

 

14.3

%

 

Forward Air Corporation

Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

December 31,
2020

 

December 31,
2019

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

40,254

 

 

$

64,749

 

Accounts receivable, net

156,490

 

 

136,214

 

Other current assets

31,780

 

 

20,403

 

Current assets held for sale

21,002

 

 

14,952

 

Total current assets

249,526

 

 

236,318

 

 

 

 

 

Property and equipment

380,519

 

 

373,571

 

Less accumulated depreciation and amortization

190,652

 

 

180,815

 

Net property and equipment

189,867

 

 

192,756

 

Operating lease right-of-use assets

123,338

 

 

105,170

 

Goodwill

244,982

 

 

215,699

 

Other acquired intangibles, net of accumulated amortization

145,032

 

 

124,857

 

Other assets

41,926

 

 

39,374

 

Noncurrent assets held for sale

53,097

 

 

76,704

 

Total assets

$

1,047,768

 

 

$

990,878

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

38,369

 

 

$

25,411

 

Accrued expenses

55,413

 

 

44,152

 

Current portion of contingent consideration

6,865

 

 

5,320

 

Current portion of debt and finance lease obligations

1,801

 

 

1,421

 

Current portion of operating lease liabilities

43,680

 

 

35,886

 

Current liabilities held for sale

25,924

 

 

24,974

 

Total current liabilities

172,052

 

 

137,164

 

 

 

 

 

Debt and finance lease obligations, less current portion

117,408

 

 

72,249

 

Operating lease liabilities, less current portion

80,346

 

 

69,678

 

Other long-term liabilities

54,129

 

 

56,448

 

Deferred income taxes

41,929

 

 

41,214

 

Noncurrent liabilities held for sale

34,575

 

 

36,943

 

 

 

 

 

Shareholders’ equity:

 

 

 

Common stock

273

 

 

279

 

Additional paid-in capital

242,916

 

 

226,869

 

Retained earnings

304,140

 

 

350,034

 

Total shareholders’ equity

547,329

 

 

577,182

 

Total liabilities and shareholders’ equity

$

1,047,768

 

 

$

990,878

 

 

Forward Air Corporation

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

 

 

Three months ended

 

December 31,
2020

 

December 31,
2019

Operating activities:

 

 

 

Net income from continuing operations

$

15,133

 

 

$

22,336

 

Adjustments to reconcile net income of continuing operations to net cash

provided by operating activities of continuing operations:

 

 

 

Depreciation and amortization

9,206

 

 

8,863

 

Change in fair value of earn-out liability

2,588

 

 

(923)

 

Share-based compensation expense

2,596

 

 

2,727

 

Other

(127)

 

 

(103)

 

Provision for revenue adjustments

1,779

 

 

1,100

 

Deferred income tax provision

(2,976)

 

 

1,208

 

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

 

 

 

Accounts receivable

(5,304)

 

 

4,431

 

Other current and noncurrent assets

(12,236)

 

 

4,732

 

Accounts payable and accrued expenses

3,814

 

 

(4,665)

 

Net cash provided by operating activities of continuing operations

14,473

 

 

39,706

 

 

 

 

 

Investing activities:

 

 

 

Proceeds from sale of property and equipment

998

 

 

968

 

Purchases of property and equipment

(3,829)

 

 

(1,224)

 

Purchase of businesses, net of cash acquired

(7,720)

 

 

 

Net cash used in investing activities of continuing operations

(10,551)

 

 

(256)

 

 

 

 

 

Financing activities:

 

 

 

Repayments of finance lease obligations

(364)

 

 

(418)

 

Proceeds from issuance of common stock upon stock option exercises

2,336

 

 

1,987

 

Payments of dividends to stockholders

(5,778)

 

 

(5,073)

 

Repurchases of common stock

 

 

(8,298)

 

Common stock issued under employee stock purchase plan

370

 

 

353

 

Payment of minimum tax withholdings on share-based awards

(64)

 

 

 

(Distributions to) contributions from subsidiary held for sale

(3,158)

 

 

1,924

 

Net cash used in financing activities of continuing operations

(6,658)

 

 

(9,525)

 

(Decrease) increase in cash and cash equivalents of continuing operations

(2,736)

 

 

29,925

 

 

 

 

 

Cash from discontinued operation:

 

 

 

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

(2,764)

 

 

4,039

 

Net cash used in investing activities of discontinued operation

(394)

 

 

(2,115)

 

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

3,158

 

 

(1,924)

 

(Decrease) increase in cash and cash equivalents

(2,736)

 

 

29,925

 

Cash and cash equivalents at beginning of period of continuing operations

42,990

 

 

34,824

 

Cash at beginning of period of discontinued operation

 

 

 

(Decrease) increase in cash and cash equivalents

(2,736)

 

 

29,925

 

Cash at beginning of period of discontinued operation

 

 

 

Cash and cash equivalents at end of period of continuing operations

$

40,254

 

 

$

64,749

 

 

Forward Air Corporation

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

Year ended

 

December 31,
2020

 

December 31,
2019

Operating activities:

 

 

 

Net income from continuing operations

$

52,767

 

 

$

82,322

 

Adjustments to reconcile net income of continuing operations to net cash

provided by operating activities of continuing operations:

 

 

 

Depreciation and amortization

37,125

 

 

36,394

 

Change in fair value of earn-out liability

379

 

 

(33)

 

Share-based compensation expense

10,448

 

 

11,263

 

Other

587

 

 

1,497

 

Provision for revenue adjustments

4,751

 

 

3,339

 

Deferred income tax provision

1,341

 

 

7,089

 

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

acquired companies:

 

 

 

Accounts receivable

(25,740)

 

 

653

 

Other current and noncurrent assets

(10,983)

 

 

(4,662)

 

Accounts payable and accrued expenses

24,291

 

 

7,212

 

Net cash provided by operating activities of continuing operations

94,966

 

 

145,074

 

 

 

 

 

Investing activities:

 

 

 

Proceeds from sale of property and equipment

2,413

 

 

2,661

 

Purchases of property and equipment

(20,268)

 

 

(22,007)

 

Purchase of businesses, net of cash acquired

(63,651)

 

 

(39,000)

 

Net cash used in investing activities of continuing operations

(81,506)

 

 

(58,346)

 

 

 

 

 

Financing activities:

 

 

 

Repayments of finance lease obligations

(893)

 

 

(946)

 

Proceeds from senior credit facility

65,000

 

 

20,000

 

Repayments of senior credit facility

(20,000)

 

 

 

Proceeds from issuance of common stock upon stock option exercises

4,237

 

 

4,050

 

Payment of earn-out liability

(5,284)

 

 

 

Payments of dividends to stockholders

(20,868)

 

 

(20,494)

 

Repurchases of common stock

(45,248)

 

 

(56,204)

 

Common stock issued under employee stock purchase plan

664

 

 

614

 

Payment of minimum tax withholdings on share-based awards

(3,508)

 

 

(3,032)

 

(Distributions to) contributions from subsidiary held for sale

(12,055)

 

 

8,376

 

Net cash used in financing activities of continuing operations

(37,955)

 

 

(47,636)

 

Net (decrease) increase in cash of continuing operations

(24,495)

 

 

39,092

 

 

 

 

 

Cash from discontinued operation:

 

 

 

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

(10,854)

 

 

13,945

 

Net cash used in investing activities of discontinued operation

(1,201)

 

 

(5,569)

 

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

12,055

 

 

(8,376)

 

(Decrease) increase in cash and cash equivalents

(24,495)

 

 

39,092

 

Cash and cash equivalents at beginning of period of continuing operations

64,749

 

 

25,657

 

Cash at beginning of period of discontinued operation

 

 

 

(Decrease) increase in cash and cash equivalents

(24,495)

 

 

39,092

 

Less: cash at beginning of period of discontinued operation

 

 

 

Cash and cash equivalents at end of period of continuing operations

$

40,254

 

 

$

64,749

 

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 in 2020 and 2019 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, 2020 and 2019, 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 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 stockholder value.

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.

Contacts

Forward Air Corporation

Michael J. Morris, 404-362-8933

mmorris@forwardair.com

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