Reports highest ever monthly net income in the month of June

Reports highest revenue and operating income for a quarter

Guides record third quarter revenue and net income per diluted share

GREENEVILLE, Tenn.–(BUSINESS WIRE)–Forward Air Corporation (NASDAQ:FWRD) (the “Company”, “we”, “our”, or “us”) today reported financial results for the three and six months ended June 30, 2021 as presented in the tables below on a continuing operations basis (Pool Distribution was previously reported as a discontinued operation).


Tom Schmitt, Chairman, President and CEO, commenting on second quarter results from continuing operations said, “Business momentum continued during the quarter culminating in the highest net income for the month of June. Our focus on our two rock star segments, Expedited Freight and Intermodal, as well as solid revenue management, drove our second quarter revenue, which exceeded the high end of our guidance range. Surgical collaboration with customers on selecting, handling, and pricing freight led to the highest operating income for a quarter. Net income per diluted share of $1.11 exceeded the high end of our $0.96 to $1.00 guidance range. I am very encouraged that in our second quarter we are better than in pre-pandemic 2019’s second quarter: better consolidated operating margins now. And bigger – our operating revenues are up almost 40% year-over-year. Additionally, we are working to bring back our customer’s events business in late 2021 and 2022.”

Mr. Schmitt continued, “We expect volumes in the third quarter 2021 to significantly exceed volumes for the same period of 2020. Through July, our volumes were strong year-over-year. We are guiding to a record third quarter revenue and net income per diluted share despite the impact of an investment in operational enhancements and to a lesser extent the typical slowdown in volumes in the third quarter as compared to the second quarter.”

In closing, Mr. Schmitt said, “In the second quarter, we achieved the highest revenue and operating income for a quarter in the history of the Company. I would like to thank all of our teammates for their hard work in helping to achieve this important milestone.”

Regarding the Company’s third quarter 2021 continuing operations guidance, Rebecca J. Garbrick, CFO, said, “We expect our year-over-year revenue growth will be 28% to 32%, and our net income per diluted share to be between $1.03 to $1.07, compared to $0.61 in the third quarter of 2020. The net income per diluted share outlook reflects a $0.03 per share impact from professional fees related to an operational improvement project (which will be recorded in Expedited Freight).”

Continuing Operations

 

Three Months Ended

(in thousands, except per share data)

 

June 30, 2021

 

June 30, 20201

 

Change

 

Percent Change

Operating revenue

 

$

420,671

 

 

$

281,678

 

 

$

138,993

 

 

49.3

%

Income from operations

 

$

42,124

 

 

$

13,914

 

 

$

28,210

 

 

202.7

%

Operating margin

 

10.0

%

 

4.9

%

 

510 bps

 

 

Net income

 

$

30,677

 

 

$

9,225

 

 

$

21,452

 

 

232.5

%

Net income per diluted share

 

$

1.11

 

 

$

0.33

 

 

$

0.78

 

 

236.4

%

Cash provided by operating activities

 

$

22,748

 

 

$

29,101

 

 

$

(6,353)

 

 

(21.8)

%

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures: 2

 

 

 

 

 

 

 

 

EBITDA

 

$

51,538

 

 

$

23,327

 

 

$

28,211

 

 

120.9

%

Free cash flow

 

$

17,517

 

 

$

17,806

 

 

$

(289)

 

 

(1.6)

%

 

 

 

 

 

 

 

 

 

1 Results for the three months ended June 30, 2020 include several non-recurring items including a $2.1 million gain from changes in fair value on an earn-out due to the timing of expected new business wins, partially offset by $1.0 million of severance and $0.7 million in reserves for customers negatively impacted by COVID-19.

2 EBITDA and free cash flow are non-GAAP financial measures and reconciliations of these non-GAAP financial measures are provided in the below financial tables.

Continuing Operations

 

Six Months Ended

(in thousands, except per share data)

 

June 30, 20211

 

June 30, 20202

 

Change

 

Percent Change

Operating revenue

 

$

782,873

 

 

$

587,235

 

 

$

195,638

 

 

33.3

%

Income from operations

 

$

64,848

 

 

$

29,687

 

 

$

35,161

 

 

118.4

%

Operating margin

 

8.3

%

 

5.1

%

 

320 bps

 

 

Net income

 

$

47,391

 

 

$

20,641

 

 

$

26,750

 

 

129.6

%

Net income per diluted share

 

$

1.71

 

 

$

0.72

 

 

$

0.99

 

 

137.5

%

Cash provided by operating activities

 

$

39,661

 

 

$

59,929

 

 

$

(20,268)

 

 

(33.8)

%

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures: 3

 

 

 

 

 

 

 

 

EBITDA

 

$

83,499

 

 

$

48,434

 

 

$

35,065

 

 

72.4

%

Free cash flow

 

$

32,400

 

 

$

46,703

 

 

$

(14,303)

 

 

(30.6)

%

 

 

 

 

 

 

 

 

 

1 Results for the six months ended June 30, 2021 includes a $7.0 million charge for professional fees related to cyber security and shareholder engagement activities.

2 Results for the six months ended June 30, 2020 include several non-recurring items including a $2.7 million gain from changes in fair value on an earn-out due to the timing of expected new business wins, partially offset by $1.0 million of severance and $0.7 million in reserves for customers negatively impacted by COVID-19.

3 EBITDA and free cash flow are non-GAAP financial measures and reconciliations of these non-GAAP financial measures are provided in the below financial tables.

On July 27, 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 August 20, 2021 and is expected to be paid on September 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 second quarter 2021 results on Friday, July 30, 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 (844) 867-6169, Access Code: 1588037.

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; 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

Condensed Consolidated Statements of Comprehensive Income

(Unaudited, in thousands, except per share data)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30,
2021

 

June 30,
2020

 

June 30,
2021

 

June 30,
2020

Operating revenue:

 

 

 

 

 

 

 

Expedited Freight

$

351,735

 

 

$

235,658

 

 

$

655,921

 

 

$

489,287

 

Intermodal

69,133

 

 

46,428

 

 

127,647

 

 

98,888

 

Eliminations and other operations

(197)

 

 

(408)

 

 

(695)

 

 

(940)

 

Operating revenue

420,671

 

 

281,678

 

 

782,873

 

 

587,235

 

Operating expenses:

 

 

 

 

 

 

 

Purchased transportation

215,217

 

 

142,069

 

 

399,825

 

 

292,667

 

Salaries, wages and employee benefits

84,641

 

 

63,772

 

 

159,538

 

 

133,331

 

Operating leases

20,370

 

 

17,387

 

 

39,537

 

 

35,271

 

Depreciation and amortization

9,414

 

 

9,413

 

 

18,651

 

 

18,747

 

Insurance and claims

10,891

 

 

7,722

 

 

20,632

 

 

17,766

 

Fuel expense

4,059

 

 

2,519

 

 

7,761

 

 

6,532

 

Other operating expenses

33,955

 

 

24,882

 

 

72,081

 

 

53,234

 

Total operating expenses

378,547

 

 

267,764

 

 

718,025

 

 

557,548

 

Income (loss) from continuing operations:

 

 

 

 

 

 

 

Expedited Freight

34,688

 

 

11,753

 

 

59,218

 

 

26,933

 

Intermodal

8,386

 

 

4,413

 

 

12,895

 

 

8,126

 

Other Operations

(950)

 

 

(2,252)

 

 

(7,265)

 

 

(5,372)

 

Income from continuing operations

42,124

 

 

13,914

 

 

64,848

 

 

29,687

 

Other expense:

 

 

 

 

 

 

 

Interest expense

(1,323)

 

 

(1,198)

 

 

(2,488)

 

 

(2,051)

 

Total other expense

(1,323)

 

 

(1,198)

 

 

(2,488)

 

 

(2,051)

 

Income before income taxes

40,801

 

 

12,716

 

 

62,360

 

 

27,636

 

Income tax expense

10,124

 

 

3,491

 

 

14,969

 

 

6,995

 

Net income from continuing operations

30,677

 

 

9,225

 

 

47,391

 

 

20,641

 

Loss from discontinued operation, net of tax

 

 

(6,071)

 

 

(5,533)

 

 

(9,112)

 

Net income and comprehensive income

$

30,677

 

 

$

3,154

 

 

$

41,858

 

 

$

11,529

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

Basic net income (loss) per share

 

 

 

 

 

 

 

Continuing operations

$

1.12

 

 

$

0.33

 

 

$

1.72

 

 

$

0.72

 

Discontinued operation

 

 

(0.22)

 

 

(0.20)

 

 

(0.31)

 

Net income per share

$

1.12

 

 

$

0.11

 

 

$

1.52

 

 

$

0.41

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share

 

 

 

 

 

 

 

Continuing operations

$

1.11

 

 

$

0.33

 

 

$

1.71

 

 

$

0.72

 

Discontinued operation

 

 

(0.22)

 

 

(0.20)

 

 

(0.32)

 

Net income per share

$

1.11

 

 

$

0.11

 

 

$

1.51

 

 

$

0.40

 

Dividends per share

$

0.21

 

 

$

0.18

 

 

$

0.42

 

 

$

0.36

 

 

 

 

 

 

 

 

 

Expedited Freight Segment Information

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

June 30,
2021

 

Percent of

Revenue

 

June 30,
2020

 

Percent of

Revenue

 

Change

 

Percent

Change

Operating revenue:

 

 

 

 

 

 

 

 

 

 

 

Network1

$

210,088

 

 

59.7

%

 

$

134,172

 

 

56.9

%

 

$

75,916

 

 

56.6

%

Truckload

56,968

 

 

16.2

 

 

41,855

 

 

17.8

 

 

15,113

 

 

36.1

 

Final Mile

69,883

 

 

19.9

 

 

53,427

 

 

22.7

 

 

16,456

 

 

30.8

 

Other

14,796

 

 

4.2

 

 

6,204

 

 

2.6

 

 

8,592

 

 

138.5

 

Total operating revenue

351,735

 

 

100.0

 

 

235,658

 

 

100.0

 

 

116,077

 

 

49.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

191,648

 

 

54.5

 

 

127,478

 

 

54.1

 

 

64,170

 

 

50.3

 

Salaries, wages and employee benefits

67,560

 

 

19.2

 

 

50,508

 

 

21.4

 

 

17,052

 

 

33.8

 

Operating leases

14,868

 

 

4.2

 

 

13,338

 

 

5.7

 

 

1,530

 

 

11.5

 

Depreciation and amortization

6,779

 

 

1.9

 

 

6,740

 

 

2.9

 

 

39

 

 

0.6

 

Insurance and claims

8,385

 

 

2.4

 

 

5,715

 

 

2.4

 

 

2,670

 

 

46.7

 

Fuel expense

2,147

 

 

0.6

 

 

1,406

 

 

0.6

 

 

741

 

 

52.7

 

Other operating expenses

25,660

 

 

7.3

 

 

18,720

 

 

7.9

 

 

6,940

 

 

37.1

 

Total operating expenses

317,047

 

 

90.1

 

 

223,905

 

 

95.0

 

 

93,142

 

 

41.6

 

Income from operations

$

34,688

 

 

9.9

%

 

$

11,753

 

 

5.0

%

 

$

22,935

 

 

195.1

%

 

 

 

 

 

 

 

 

 

 

 

 

1Network revenue is comprised of all revenue, including linehaul, pickup and/or delivery, and fuel surcharge revenue, excluding accessorial, Truckload and Final Mile revenue.

Expedited Freight Operating Statistics

 

 

 

Three Months Ended

 

June 30,
2021

 

June 30,
2020

 

Percent

Change

 

 

 

 

 

 

Business days

64

 

 

64

 

 

%

 

 

 

 

 

 

Tonnage 1,2

 

 

 

 

 

Total pounds

728,191

 

 

522,031

 

 

39.5

 

Pounds per day

11,378

 

 

8,157

 

 

39.5

 

 

 

 

 

 

 

Shipments 1,2

 

 

 

 

 

Total shipments

1,096

 

 

963

 

 

13.8

 

Shipments per day

17.1

 

 

15.0

 

 

14.0

 

 

 

 

 

 

 

Weight per shipment

664

 

 

542

 

 

22.5

 

 

 

 

 

 

 

Revenue per hundredweight 3

$

28.63

 

 

$

26.32

 

 

8.8

 

Revenue per hundredweight, ex fuel 3

$

24.68

 

 

$

23.09

 

 

6.9

 

 

 

 

 

 

 

Revenue per shipment 3

$

191.89

 

 

$

139.30

 

 

37.8

 

Revenue per shipment, ex fuel 3

$

165.62

 

 

$

121.77

 

 

36.0

 

 

 

 

 

 

 

Network revenue from door-to-door shipments as a percentage of network revenue 3,4

51.3

%

 

49.9

%

 

2.8

 

 

 

 

 

 

 

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

 

June 30,
2021

 

Percent of

Revenue

 

June 30,
2020

 

Percent of

Revenue

 

Change

 

Percent

Change

Operating revenue

$

69,133

 

 

100.0

%

 

$

46,428

 

 

100.0

%

 

$

22,705

 

 

48.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

23,767

 

 

34.4

 

 

14,904

 

 

32.1

 

 

8,863

 

 

59.5

 

Salaries, wages and employee benefits

16,230

 

 

23.5

 

 

11,728

 

 

25.3

 

 

4,502

 

 

38.4

 

Operating leases

5,500

 

 

8.0

 

 

4,045

 

 

8.7

 

 

1,455

 

 

36.0

 

Depreciation and amortization

2,612

 

 

3.8

 

 

2,648

 

 

5.7

 

 

(36)

 

 

(1.4)

 

Insurance and claims

2,355

 

 

3.4

 

 

1,789

 

 

3.9

 

 

566

 

 

31.6

 

Fuel expense

1,912

 

 

2.8

 

 

1,113

 

 

2.4

 

 

799

 

 

71.8

 

Other operating expenses

8,371

 

 

12.1

 

 

5,788

 

 

12.5

 

 

2,583

 

 

44.6

 

Total operating expenses

60,747

 

 

87.9

 

 

42,015

 

 

90.5

 

 

18,732

 

 

44.6

 

Income from operations

$

8,386

 

 

12.1

%

 

$

4,413

 

 

9.5

%

 

$

3,973

 

 

90.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Intermodal Operating Statistics

 

 

 

Three Months Ended

 

June 30,
2021

 

June 30,
2020

 

Percent

Change

 

 

 

 

 

 

Drayage shipments

96,805

 

 

68,974

 

 

40.3

%

Drayage revenue per shipment

$

618

 

 

$

556

 

 

11.2

%

Number of locations

29

 

 

24

 

 

20.8

%

 

Forward Air Corporation

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

June 30,
2021

 

December 31,

2020

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

50,844

 

 

$

40,254

 

Accounts receivable, net

209,187

 

 

156,490

 

Other receivables

16,999

 

 

 

Other current assets

19,982

 

 

28,150

 

Current assets held for sale

 

 

21,002

 

Total current assets

297,012

 

 

245,896

 

 

 

 

 

Property and equipment

383,155

 

 

380,519

 

Less accumulated depreciation and amortization

196,168

 

 

190,652

 

Total property and equipment, net

186,987

 

 

189,867

 

Operating lease right-of-use assets

148,651

 

 

123,338

 

Goodwill

254,993

 

 

244,982

 

Other acquired intangibles, net of accumulated amortization

145,813

 

 

145,032

 

Other assets

48,385

 

 

45,181

 

Noncurrent assets held for sale

 

 

53,097

 

Total assets

$

1,081,841

 

 

$

1,047,393

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

43,655

 

 

$

38,371

 

Accrued expenses

70,894

 

 

51,264

 

Other current liabilities

6,813

 

 

10,580

 

Current portion of debt and finance lease obligations

1,867

 

 

1,801

 

Current portion of operating lease liabilities

46,042

 

 

43,680

 

Current liabilities held for sale

 

 

25,924

 

Total current liabilities

169,271

 

 

171,620

 

 

 

 

 

Debt and finance lease obligations, less current portion

161,729

 

 

117,408

 

Operating lease liabilities, less current portion

103,280

 

 

80,346

 

Other long-term liabilities

55,741

 

 

54,129

 

Deferred income taxes

41,471

 

 

41,986

 

Noncurrent liabilities held for sale

 

 

34,575

 

 

 

 

 

Shareholders’ equity:

 

 

 

Common stock

271

 

 

273

 

Additional paid-in capital

252,466

 

 

242,916

 

Retained earnings

297,612

 

 

304,140

 

Total shareholders’ equity

550,349

 

 

547,329

 

Total liabilities and shareholders’ equity

$

1,081,841

 

 

$

1,047,393

 

Forward Air Corporation

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

Three Months Ended

 

June 30,
2021

 

June 30,
2020

Operating activities:

 

 

 

Net income from continuing operations

$

30,677

 

 

$

9,225

 

Adjustments to reconcile net income of continuing operations to net cash provided by operating activities of continuing operations

 

 

 

Depreciation and amortization

9,414

 

 

9,413

 

Change in fair value of earn-out liability

(337)

 

 

(2,108)

 

Share-based compensation expense

2,981

 

 

2,429

 

Provision for revenue adjustments

1,748

 

 

745

 

Deferred income tax (benefit) expense

(67)

 

 

3,443

 

Other

97

 

 

962

 

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

 

 

 

Accounts receivable

(22,995)

 

 

(61)

 

Other receivables

(152)

 

 

 

Other current and noncurrent assets

(339)

 

 

(2,455)

 

Accounts payable and accrued expenses

1,721

 

 

7,508

 

Net cash provided by operating activities of continuing operations

22,748

 

 

29,101

 

 

 

 

 

Investing activities:

 

 

 

Proceeds from sale of property and equipment

649

 

 

268

 

Purchases of property and equipment

(5,880)

 

 

(11,563)

 

Purchases of a business, net of cash acquired

(7,543)

 

 

 

Net cash used in investing activities of continuing operations

(12,774)

 

 

(11,295)

 

 

 

 

 

Financing activities:

 

 

 

Repayments of finance lease obligations

(487)

 

 

(340)

 

Proceeds from revolving credit facility

45,000

 

 

 

Payment of earn-out liability

 

 

(5,284)

 

Proceeds from issuance of common stock upon stock option exercises

1,423

 

 

 

Payments of dividends to stockholders

(5,768)

 

 

(5,037)

 

Repurchases of common stock

(23,994)

 

 

 

Proceeds from common stock issued under employee stock purchase plan

388

 

 

294

 

Payment of minimum tax withholdings on share-based awards

(88)

 

 

(614)

 

Contributions from (distributions to) subsidiary held for sale

 

 

(3,154)

 

Net cash provided by (used in) financing activities from continuing operations

16,474

 

 

(14,135)

 

Net increase in cash of continuing operations

26,448

 

 

3,671

 

 

 

 

 

Cash from discontinued operation:

 

 

 

Net cash used in operating activities of discontinued operation

 

 

(3,010)

 

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

 

 

(144)

 

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

 

 

3,154

 

Net increase in cash and cash equivalents

26,448

 

 

3,671

 

Cash and cash equivalents at beginning of period of continuing operations

24,396

 

 

77,245

 

Cash at beginning of period of discontinued operation

 

 

 

Net increase in cash and cash equivalents

26,448

 

 

3,671

 

Less: cash at end of period of discontinued operation

 

 

 

Cash and cash equivalents at end of period of continuing operations

$

50,844

 

 

$

80,916

 

Forward Air Corporation

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

Six Months Ended

 

June 30,
2021

 

June 30,
2020

Operating activities:

 

 

 

Net income from continuing operations

$

47,391

 

 

$

20,641

 

Adjustments to reconcile net income of continuing operations to net cash provided by operating activities of continuing operations

 

 

 

Depreciation and amortization

18,651

 

 

18,747

 

Change in fair value of earn-out liability

(385)

 

 

(2,702)

 

Share-based compensation expense

5,578

 

 

5,507

 

Provision for revenue adjustments

3,525

 

 

1,787

 

Deferred income tax (benefit) expense

(572)

 

 

4,668

 

Other

189

 

 

697

 

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

 

 

 

Accounts receivable

(51,018)

 

 

2,979

 

Other receivables

(13,491)

 

 

 

Other current and noncurrent assets

6,746

 

 

(29)

 

Accounts payable and accrued expenses

23,047

 

 

7,634

 

Net cash provided by operating activities of continuing operations

39,661

 

 

59,929

 

 

 

 

 

Investing activities:

 

 

 

Proceeds from sale of property and equipment

1,314

 

 

988

 

Purchases of property and equipment

(8,575)

 

 

(14,214)

 

Purchase of a business, net of cash acquired

(22,543)

 

 

(55,931)

 

Net cash used in investing activities of continuing operations

(29,804)

 

 

(69,157)

 

 

 

 

 

Financing activities:

 

 

 

Repayments of finance lease obligations

(954)

 

 

(676)

 

Proceeds from revolving credit facility

45,000

 

 

65,000

 

Payment of earn-out liability

 

 

(5,284)

 

Proceeds from issuance of common stock upon stock option exercises

3,570

 

 

 

Payments of dividends to stockholders

(11,565)

 

 

(10,087)

 

Repurchases of common stock

(33,992)

 

 

(15,259)

 

Proceeds from common stock issued under employee stock purchase plan

388

 

 

294

 

Payment of minimum tax withholdings on share-based awards

(2,832)

 

 

(3,286)

 

Contributions from (distributions to) subsidiary held for sale

1,118

 

 

(5,307)

 

Net cash provided by financing activities from continuing operations

733

 

 

25,395

 

Net increase in cash and cash equivalents of continuing operations

10,590

 

 

16,167

 

 

 

 

 

Cash from discontinued operation:

 

 

 

Net cash used in operating activities of discontinued operation

(6,902)

 

 

(4,672)

 

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

8,020

 

 

(635)

 

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

(1,118)

 

 

5,307

 

Net increase in cash and cash equivalents

10,590

 

 

16,167

 

Cash and cash equivalents at beginning of period of continuing operations

40,254

 

 

64,749

 

Cash at beginning of period of discontinued operation

 

 

 

Net increase in cash and cash equivalents

10,590

 

 

16,167

 

Less: cash at end of period of discontinued operation

 

 

 

Cash and cash equivalents at end of period of continuing operations

$

50,844

 

 

$

80,916

 

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 six months ended June 30, 2021 and 2020, 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. 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 six months ended June 30, 2021 and 2020 (in thousands):

 

 

Three Months Ended

 

Six Months Ended

 

Continuing Operations

 

June 30, 2021

 

June 30, 2020

 

June 30, 2021

 

June 30, 2020

 

Net income

 

$

30,677

 

 

$

9,225

 

 

$

47,391

 

 

$

20,641

 

 

Interest expense

 

1,323

 

 

1,198

 

 

2,488

 

 

2,051

 

 

Income tax expense

 

10,124

 

 

3,491

 

 

14,969

 

 

6,995

 

 

Depreciation and amortization

 

9,414

 

 

9,413

 

 

18,651

 

 

18,747

 

 

EBITDA

 

$

51,538

 

 

$

23,327

 

 

$

83,499

 

 

$

48,434

 

 

 

 

 

 

 

 

 

 

 

 

Contacts

Forward Air Corporation

Brandon Hammer, 423-636-7173

bhammer@forwardair.com

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