All-time record quarterly reported revenue, income from operations and net income per diluted share

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, 2022 as presented in the tables below on a continuing operations basis.


Tom Schmitt, Chairman, President and CEO, commenting on second quarter results from continuing operations said, “I want to thank our teammates, independent contractors and business partners for the achievement of our most profitable quarter in the history of the Company. Second quarter revenue growth of 23% came in above the high end of our guidance range of 18% to 22% and our reported net income per diluted share of $2.04 exceeded the high end of our $1.59 to $1.61 guidance range. Our Grow Forward strategy of collaborating with our customers on selecting higher quality freight, pricing the freight appropriately and operating in a clean, safe network contributed to our strong financial performance. In the third quarter of the prior year, we completed a process to cleanse inefficient freight from our network. We have fully replaced the cleansed inefficient freight with higher quality freight, resulting in the same tonnage in the second quarter of 2022 as the prior year quarter with 14.5% higher weight per shipment and 39.8% higher revenue per shipment or 25.8% higher revenue per shipment even when excluding fuel.”

Mr. Schmitt continued, “Momentum continues in the first weeks of the third quarter with tonnage 3.0% higher than the same period of the prior year and strong revenue growth across all lines of business driven by continued growth strategies, strong demand for our services and higher fuel surcharges. With the shift to premium freight in our network, our business model today is more robust and resilient than in the past. We are therefore optimistic that we will exceed the previously announced 2022 net income per diluted share target of $6.30. Our revised 2022 net income per diluted share target is at least $7.00.”

In closing, Mr. Schmitt said, “We continue to execute on our commitment to return value to our shareholders. In the past five years, we have returned approximately $376.0 million to shareholders in the form of dividends and share repurchases. Our confidence in the growth potential of our business is reflected in the increase to our quarterly dividend and continued share repurchases in 2022.”

Regarding the Company’s third quarter 2022 continuing operations guidance, Rebecca J. Garbrick, CFO, said, “We expect our year-over-year revenue growth will be 20% to 24% and net income per diluted share to be between $1.88 to $1.92, compared to reported net income per diluted share of $1.12 and adjusted net income per diluted share of $1.14 in the third quarter of 2021.”

Continuing Operations

 

Three Months Ended

(in thousands, except per share data)

 

June 30,
2022

 

June 30,
2021

 

Change

 

Percent Change

Operating revenue

 

$

515,219

 

 

$

420,671

 

 

$

94,548

 

22.5

%

Income from operations

 

$

75,545

 

 

$

42,124

 

 

$

33,421

 

79.3

%

Operating margin

 

 

14.7

%

 

 

10.0

%

 

470 bps

Net income

 

$

55,430

 

 

$

30,677

 

 

$

24,753

 

80.7

%

Net income per diluted share

 

$

2.04

 

 

$

1.11

 

 

$

0.93

 

83.8

%

Cash provided by operating activities

 

$

50,334

 

 

$

22,748

 

 

$

27,586

 

121.3

%

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures: 1

 

 

 

 

 

 

 

 

Adjusted income from operations

 

$

75,545

 

 

$

41,787

 

 

$

33,758

 

80.8

%

Adjusted net income

 

$

55,430

 

 

$

30,424

 

 

$

25,006

 

82.2

%

Adjusted net income per diluted share

 

$

2.04

 

 

$

1.10

 

 

$

0.94

 

85.5

%

EBITDA

 

$

87,140

 

 

$

51,538

 

 

$

35,602

 

69.1

%

Free cash flow

 

$

41,825

 

 

$

17,517

 

 

$

24,308

 

138.8

%

 

 

 

 

 

 

 

 

 

1 Reconciliation of these non-GAAP financial measures are provided below the financial tables.

Continuing Operations

 

Six Months Ended

(in thousands, except per share data)

 

June 30,
2022

 

June 30,
2021

 

Change

 

Percent Change

Operating revenue

 

$

982,180

 

 

$

782,873

 

 

$

199,307

 

25.5

%

Income from operations

 

$

132,896

 

 

$

64,848

 

 

$

68,048

 

104.9

%

Operating margin

 

 

13.5

%

 

 

8.3

%

 

520 bps

Net income

 

$

98,116

 

 

$

47,391

 

 

$

50,725

 

107.0

%

Net income per diluted share

 

$

3.61

 

 

$

1.71

 

 

$

1.90

 

111.1

%

Cash provided by operating activities

 

$

112,820

 

 

$

39,661

 

 

$

73,159

 

184.5

%

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures: 1

 

 

 

 

 

 

 

 

Adjusted income from operations

 

$

132,602

 

 

$

71,418

 

 

$

61,184

 

85.7

%

Adjusted net income

 

$

97,896

 

 

$

52,384

 

 

$

45,512

 

86.9

%

Adjusted net income per diluted share

 

$

3.60

 

 

$

1.89

 

 

$

1.71

 

90.5

%

EBITDA

 

$

155,621

 

 

$

83,499

 

 

$

72,122

 

86.4

%

Free cash flow

 

$

94,914

 

 

$

32,400

 

 

$

62,514

 

192.9

%

 

 

 

 

 

 

 

 

 

1 Reconciliation of these non-GAAP financial measures are provided below the financial tables.

On July 26, 2022, 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 August 18, 2022 and is expected to be paid on September 8, 2022. 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 2022, 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 second quarter 2022 results on Thursday, July 28, 2022 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) 867-6163, Access Code: 4227639.

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 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. 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

 

Six Months Ended

 

June 30,
2022

 

June 30,
2021

 

June 30,
2022

 

June 30,
2021

Operating revenue:

 

 

 

 

 

 

 

Expedited Freight

$

408,857

 

 

$

351,735

 

 

$

785,448

 

 

$

655,921

 

Intermodal

 

106,411

 

 

 

69,133

 

 

 

196,851

 

 

 

127,647

 

Eliminations and other operations

 

(49

)

 

 

(197

)

 

 

(119

)

 

 

(695

)

Operating revenues

 

515,219

 

 

 

420,671

 

 

 

982,180

 

 

 

782,873

 

Operating expenses:

 

 

 

 

 

 

 

Purchased transportation

 

239,490

 

 

 

215,217

 

 

 

464,322

 

 

 

399,825

 

Salaries, wages and employee benefits

 

86,358

 

 

 

84,641

 

 

 

172,439

 

 

 

159,538

 

Operating leases

 

23,459

 

 

 

20,370

 

 

 

46,132

 

 

 

39,537

 

Depreciation and amortization

 

11,595

 

 

 

9,414

 

 

 

22,725

 

 

 

18,651

 

Insurance and claims

 

13,196

 

 

 

10,891

 

 

 

25,164

 

 

 

20,632

 

Fuel expense

 

8,314

 

 

 

4,059

 

 

 

14,179

 

 

 

7,761

 

Other operating expenses

 

57,262

 

 

 

33,955

 

 

 

104,323

 

 

 

72,081

 

Total operating expenses

 

439,674

 

 

 

378,547

 

 

 

849,284

 

 

 

718,025

 

Income (loss) from continuing operations:

 

 

 

 

 

 

 

Expedited Freight

 

63,107

 

 

 

34,688

 

 

 

110,787

 

 

 

59,218

 

Intermodal

 

15,249

 

 

 

8,386

 

 

 

26,395

 

 

 

12,895

 

Other Operations

 

(2,811

)

 

 

(950

)

 

 

(4,286

)

 

 

(7,265

)

Income from continuing operations

 

75,545

 

 

 

42,124

 

 

 

132,896

 

 

 

64,848

 

Other expense:

 

 

 

 

 

 

 

Interest expense

 

(1,193

)

 

 

(1,323

)

 

 

(1,977

)

 

 

(2,488

)

Total other expense

 

(1,193

)

 

 

(1,323

)

 

 

(1,977

)

 

 

(2,488

)

Income before income taxes

 

74,352

 

 

 

40,801

 

 

 

130,919

 

 

 

62,360

 

Income tax expense

 

18,922

 

 

 

10,124

 

 

 

32,803

 

 

 

14,969

 

Net income from continuing operations

 

55,430

 

 

 

30,677

 

 

 

98,116

 

 

 

47,391

 

Loss from discontinued operation, net of tax

 

 

 

 

 

 

 

 

 

 

(5,533

)

Net income and comprehensive income

$

55,430

 

 

$

30,677

 

 

$

98,116

 

 

$

41,858

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

Basic net income (loss) per share

 

 

 

 

 

 

 

Continuing operations

$

2.05

 

 

$

1.12

 

 

$

3.63

 

 

$

1.72

 

Discontinued operation

 

 

 

 

 

 

 

 

 

 

(0.20

)

Net income per basic share

$

2.05

 

 

$

1.12

 

 

$

3.63

 

 

$

1.52

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share

 

 

 

 

 

 

 

Continuing operations

$

2.04

 

 

$

1.11

 

 

$

3.61

 

 

$

1.71

 

Discontinued operation

 

 

 

 

 

 

 

 

 

 

(0.20

)

Net income per diluted share

$

2.04

 

 

$

1.11

 

 

$

3.61

 

 

$

1.51

 

Dividends per share

$

0.24

 

 

$

0.21

 

 

$

0.48

 

 

$

0.42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expedited Freight Segment Information

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

June 30,
2022

 

Percent of

Revenue

 

June 30,
2021

 

Percent of

Revenue

 

Change

 

Percent

Change

Operating revenue:

 

 

 

 

 

 

 

 

 

 

 

Network 1

$

263,425

 

64.4

%

 

$

210,088

 

59.7

%

 

$

53,337

 

 

25.4

%

Truckload

 

60,144

 

14.7

 

 

 

56,968

 

16.2

 

 

 

3,176

 

 

5.6

 

Final Mile

 

73,028

 

17.9

 

 

 

69,883

 

19.9

 

 

 

3,145

 

 

4.5

 

Other

 

12,260

 

3.0

 

 

 

14,796

 

4.2

 

 

 

(2,536

)

 

(17.1

)

Total operating revenue

 

408,857

 

100.0

 

 

 

351,735

 

100.0

 

 

 

57,122

 

 

16.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

212,575

 

52.0

 

 

 

191,648

 

54.5

 

 

 

20,927

 

 

10.9

 

Salaries, wages and employee benefits

 

69,497

 

17.0

 

 

 

67,560

 

19.2

 

 

 

1,937

 

 

2.9

 

Operating leases

 

15,933

 

3.9

 

 

 

14,868

 

4.2

 

 

 

1,065

 

 

7.2

 

Depreciation and amortization

 

7,817

 

1.9

 

 

 

6,779

 

1.9

 

 

 

1,038

 

 

15.3

 

Insurance and claims

 

8,311

 

2.0

 

 

 

8,385

 

2.4

 

 

 

(74

)

 

(0.9

)

Fuel expense

 

3,229

 

0.8

 

 

 

2,147

 

0.6

 

 

 

1,082

 

 

50.4

 

Other operating expenses

 

28,388

 

7.0

 

 

 

25,660

 

7.3

 

 

 

2,728

 

 

10.6

 

Total operating expenses

 

345,750

 

84.6

 

 

 

317,047

 

90.1

 

 

 

28,703

 

 

9.1

 

Income from operations

$

63,107

 

15.4

%

 

$

34,688

 

9.9

%

 

$

28,419

 

 

81.9

%

 

 

 

 

 

 

 

 

 

 

 

 

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

 

June 30,
2022

 

June 30,
2021

 

Percent Change

Business days

 

64

 

 

64

 

%

 

 

 

 

 

 

Tonnage 1,2

 

 

 

 

 

Total pounds

 

730,128

 

 

728,191

 

0.3

 

Pounds per day

 

11,408

 

 

11,378

 

0.3

 

 

 

 

 

 

 

Shipments 1,2

 

 

 

 

 

Total shipments

 

961

 

 

1,096

 

(12.3

)

Shipments per day

 

15.0

 

 

17.1

 

(12.3

)

 

 

 

 

 

 

Weight per shipment

 

760

 

 

664

 

14.5

 

 

 

 

 

 

 

Revenue per hundredweight 3

$

35.99

 

$

29.45

 

22.2

 

Revenue per hundredweight, ex fuel 3

$

27.13

 

$

24.68

 

9.9

 

 

 

 

 

 

 

Revenue per shipment 3

$

273.52

 

$

195.64

 

39.8

 

Revenue per shipment, ex fuel 3

$

206.21

 

$

163.97

 

25.8

 

 

 

 

 

 

 

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

 

June 30,
2022

 

Percent of

Revenue

 

June 30,
2021

 

Percent of

Revenue

 

Change

 

Percent

Change

Operating revenue

$

106,411

 

100.0

%

 

$

69,133

 

100.0

%

 

$

37,278

 

 

53.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

26,963

 

25.3

 

 

 

23,767

 

34.4

 

 

 

3,196

 

 

13.4

 

Salaries, wages and employee benefits

 

18,831

 

17.7

 

 

 

16,230

 

23.5

 

 

 

2,601

 

 

16.0

 

Operating leases

 

7,526

 

7.1

 

 

 

5,500

 

8.0

 

 

 

2,026

 

 

36.8

 

Depreciation and amortization

 

3,716

 

3.5

 

 

 

2,612

 

3.8

 

 

 

1,104

 

 

42.3

 

Insurance and claims

 

2,338

 

2.2

 

 

 

2,355

 

3.4

 

 

 

(17

)

 

(0.7

)

Fuel expense

 

5,084

 

4.8

 

 

 

1,912

 

2.8

 

 

 

3,172

 

 

165.9

 

Other operating expenses

 

26,704

 

25.1

 

 

 

8,371

 

12.1

 

 

 

18,333

 

 

219.0

 

Total operating expenses

 

91,162

 

85.7

 

 

 

60,747

 

87.9

 

 

 

30,415

 

 

50.1

 

Income from operations

$

15,249

 

14.3

%

 

$

8,386

 

12.1

%

 

$

6,863

 

 

81.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Intermodal Operating Statistics

 

 

 

Three Months Ended

 

June 30,
2022

 

June 30,
2021

 

Percent Change

Drayage shipments

 

92,786

 

 

96,805

 

(4.2

)%

Drayage revenue per shipment

$

979

 

$

618

 

58.4

%

Forward Air Corporation

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

June 30,
2022

 

December 31,
2021

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

47,386

 

$

37,316

Accounts receivable, net

 

246,006

 

 

208,085

Other receivables, net

 

104

 

 

8,097

Other current assets

 

22,260

 

 

29,309

Total current assets

 

315,756

 

 

282,807

 

 

 

 

Property and equipment, net

 

229,220

 

 

219,095

Operating lease right-of-use assets

 

154,277

 

 

148,198

Goodwill

 

287,597

 

 

266,752

Other acquired intangibles, net

 

160,216

 

 

154,717

Other assets

 

50,077

 

 

46,254

Total assets

$

1,197,143

 

$

1,117,823

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

42,058

 

$

44,837

Accrued expenses

 

64,355

 

 

61,621

Other current liabilities

 

4,044

 

 

4,614

Current portion of debt and finance lease obligations

 

7,505

 

 

6,088

Current portion of operating lease liabilities

 

49,498

 

 

47,532

Total current liabilities

 

167,460

 

 

164,692

 

 

 

 

Finance lease obligations, less current portion

 

10,759

 

 

9,571

Long-term debt, less current portion and debt issuance costs

 

147,279

 

 

155,466

Operating lease liabilities, less current portion

 

106,552

 

 

101,409

Other long-term liabilities

 

55,374

 

 

49,624

Deferred income taxes

 

45,369

 

 

43,407

 

 

 

 

Shareholders’ equity:

 

 

 

Preferred stock

 

 

 

Common stock

 

269

 

 

270

Additional paid-in capital

 

265,129

 

 

258,474

Retained earnings

 

398,952

 

 

334,910

Total shareholders’ equity

 

664,350

 

 

593,654

Total liabilities and shareholders’ equity

$

1,197,143

 

$

1,117,823

Forward Air Corporation

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

Three Months Ended

 

June 30,
2022

 

June 30,
2021

Operating activities:

 

 

 

Net income from continuing operations

$

55,430

 

 

$

30,677

 

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

 

 

 

Depreciation and amortization

 

11,595

 

 

 

9,414

 

Change in fair value of earn-out liability

 

 

 

 

(337

)

Share-based compensation expense

 

3,306

 

 

 

2,981

 

Provision for revenue adjustments

 

1,630

 

 

 

1,748

 

Deferred income tax expense (benefit)

 

319

 

 

 

(67

)

Other

 

1,251

 

 

 

97

 

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

 

 

 

Accounts receivable

 

(6,473

)

 

 

(22,995

)

Other receivables

 

3,484

 

 

 

(152

)

Other current and noncurrent assets

 

(9,900

)

 

 

(339

)

Accounts payable, accrued expenses and long-term liabilities

 

(10,308

)

 

 

1,721

 

Net cash provided by operating activities of continuing operations

 

50,334

 

 

 

22,748

 

 

 

 

 

Investing activities:

 

 

 

Proceeds from sale of property and equipment

 

256

 

 

 

649

 

Purchases of property and equipment

 

(8,765

)

 

 

(5,880

)

Purchases of a business, net of cash acquired

 

(40,433

)

 

 

(7,543

)

Net cash used in investing activities of continuing operations

 

(48,942

)

 

 

(12,774

)

 

 

 

 

Financing activities:

 

 

 

Repayments of finance lease obligations

 

(1,513

)

 

 

(487

)

Proceeds from credit facility

 

 

 

 

45,000

 

Payments on credit facility

 

(7,875

)

 

 

 

Payment of earn-out liability

 

(91

)

 

 

 

Proceeds from issuance of common stock upon stock option exercises

 

 

 

 

1,423

 

Payments of dividends to shareholders

 

(6,492

)

 

 

(5,768

)

Repurchases and retirement of common stock

 

 

 

 

(23,994

)

Proceeds from common stock issued under employee stock purchase plan

 

374

 

 

 

388

 

Payment of minimum tax withholdings on share-based awards

 

(39

)

 

 

(88

)

Contributions from subsidiary held for sale

 

 

 

 

 

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

 

(15,636

)

 

 

16,474

 

Net (decrease) increase in cash and cash equivalents of continuing operations

 

(14,244

)

 

 

26,448

 

 

 

 

 

Cash from discontinued operation:

 

 

 

Net cash used in operating activities of discontinued operation

 

 

 

 

 

Net cash provided by investing activities of discontinued operation

 

 

 

 

 

Net cash used in financing activities of discontinued operation

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

(14,244

)

 

 

26,448

 

Cash and cash equivalents at beginning of period of continuing operations

 

61,630

 

 

 

24,396

 

Cash at beginning of period of discontinued operation

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

(14,244

)

 

 

26,448

 

Less: cash at end of period of discontinued operation

 

 

 

 

 

Cash and cash equivalents at end of period of continuing operations

$

47,386

 

 

$

50,844

 

Forward Air Corporation

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

Six Months Ended

 

June 30,
2022

 

June 30,
2021

Operating activities:

 

 

 

Net income from continuing operations

$

98,116

 

 

$

47,391

 

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

 

 

 

Depreciation and amortization

 

22,725

 

 

 

18,651

 

Change in fair value of earn-out liability

 

(294

)

 

 

(385

)

Share-based compensation expense

 

6,067

 

 

 

5,578

 

Provision for revenue adjustments

 

2,934

 

 

 

3,525

 

Deferred income tax expense (benefit)

 

1,962

 

 

 

(572

)

Other

 

1,383

 

 

 

189

 

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

 

 

 

Accounts receivable

 

(36,751

)

 

 

(51,018

)

Other receivables

 

7,093

 

 

 

(13,491

)

Other current and noncurrent assets

 

3,918

 

 

 

6,746

 

Accounts payable, accrued expenses and other long-term liabilities

 

5,667

 

 

 

23,047

 

Net cash provided by operating activities of continuing operations

 

112,820

 

 

 

39,661

 

 

 

 

 

Investing activities:

 

 

 

Proceeds from sale of property and equipment

 

767

 

 

 

1,314

 

Purchases of property and equipment

 

(18,673

)

 

 

(8,575

)

Purchases of a business, net of cash acquired

 

(40,433

)

 

 

(22,543

)

Net cash used in investing activities of continuing operations

 

(58,339

)

 

 

(29,804

)

 

 

 

 

Financing activities:

 

 

 

Repayments of finance lease obligations

 

(2,583

)

 

 

(954

)

Proceeds from credit facility

 

 

 

 

45,000

 

Payments on credit facility

 

(8,250

)

 

 

 

Payment of earn-out liability

 

(91

)

 

 

 

Proceeds from issuance of common stock upon stock option exercises

 

206

 

 

 

3,570

 

Payments of dividends to shareholders

 

(12,994

)

 

 

(11,565

)

Repurchases and retirement of common stock

 

(17,780

)

 

 

(33,992

)

Proceeds from common stock issued under employee stock purchase plan

 

374

 

 

 

388

 

Payment of minimum tax withholdings on share-based awards

 

(3,293

)

 

 

(2,832

)

Contributions from subsidiary held for sale

 

 

 

 

1,118

 

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

 

(44,411

)

 

 

733

 

Net increase in cash and cash equivalents of continuing operations

 

10,070

 

 

 

10,590

 

 

 

 

 

Cash from discontinued operation:

 

 

 

Net cash used in operating activities of discontinued operation

 

 

 

 

(6,902

)

Net cash provided by investing activities of discontinued operation

 

 

 

 

8,020

 

Net cash used in financing activities of discontinued operation

 

 

 

 

(1,118

)

Net increase in cash and cash equivalents

 

10,070

 

 

 

10,590

 

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 in cash and cash equivalents

 

10,070

 

 

 

10,590

 

Less: cash at end of period of discontinued operation

 

 

 

 

 

Cash and cash equivalents at end of period of continuing operations

$

47,386

 

 

$

50,844

 

 

 

 

 

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, 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 six months ended June 30, 2022 and 2021 (in thousands):

 

 

Three Months Ended

 

Six Months Ended

Continuing Operations

 

June 30,
2022

 

June 30,
2021

 

June 30,
2022

 

June 30,
2021

Net income

 

$

55,430

 

$

30,677

 

$

98,116

 

$

47,391

Interest expense

 

 

1,193

 

 

1,323

 

 

1,977

 

 

2,488

Income tax expense

 

 

18,922

 

 

10,124

 

 

32,803

 

 

14,969

Depreciation and amortization

 

 

11,595

 

 

9,414

 

 

22,725

 

 

18,651

EBITDA

 

$

87,140

 

$

51,538

 

$

155,621

 

$

83,499

 

 

 

 

 

 

 

 

 

The following is a reconciliation of net cash provided by operating activities to free cash flow for the three and

Contacts

Forward Air Corporation

Brandon Hammer, 423-636-7173

bhammer@forwardair.com

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