Forward Air Corporation Reports Third Quarter 2014 Results and Announces Quarterly Cash Dividend

Forward Air Corporation (NASDAQ:FWRD) today reported operating revenue, income from operations, net income and diluted earnings per share for the three and nine months ended September 30, 2014.

Operating revenue for the quarter ended September 30, 2014 increased 18.5% to $201.5 million from $170.0 million for the same quarter in 2013. Income from operations was $26.9 million, compared with $22.9 million in the prior-year quarter. As a percent of operating revenue, income from operations was 13.3%, compared with 13.5% in the same quarter last year. Net income during the period was $16.7 million compared to $14.2 million in the prior-year quarter. Net income per diluted share for the third quarter of 2014 was $0.54 compared with $0.46 in the prior-year quarter.

Operating revenue for the nine months ended September 30, 2014 increased 20.3% to $566.9 million from $471.4 million for the same period in 2013. Income from operations was $70.8 million, compared with $61.1 million in the prior-year period. As a percent of operating revenue, income from operations was 12.5%, compared with 13.0% in the same period last year. Net income during the period was $44.1 million compared to $38.9 million in the prior-year period. Net income per diluted share for the nine months ended September 30, 2014 was $1.41 compared with $1.27 in the prior-year period.

Bruce A. Campbell, Chairman, President, and CEO, commenting on the third quarter said, “We were pleased with our revenue and operating income performance across all of our business segments especially in light of the challenging capacity environment and its impact on our cost structure.”

Commenting on the Forward Air, Inc. (“FAI”) business segment, Mr. Campbell said, “FAI revenue continues to benefit from the acquisition of Central States Trucking Company (‘CST’) along with strong year-over-year growth in our tonnage volumes and improving airport-to-airport pricing. These positive trends were partially offset by higher purchased transportation and recruiting costs resulting from our efforts to grow our fleet to keep pace with our increased shipping activity. CST contributed approximately $21.1 million of revenue and $2.5 million of operating income during the third quarter of 2014.”

Commenting on the Forward Air Solutions (“Solutions”) segment, Mr. Campbell said, “Solutions continues to show significant improvement in operating income driven primarily by the general rate increases initiated in the first quarter and excellent operating discipline. Compared to the prior-year quarter results, Solutions operating results improved over $0.4 million, or 50.0% incremental profitability.”

Addressing the Total Quality, Inc. (“TQI”) business segment, Mr. Campbell said, “Despite a lack of revenue growth, we continue to experience improvement in operating income as a percentage of revenue as a result of operating efficiencies initiated during 2014.”

In closing, Mr. Campbell said, “As always, I would like to thank the Forward Air team of employees and independent contractors for their dedication and hard work.”

Commenting on the Company’s guidance for the fourth quarter, Rodney L. Bell, Senior Vice President and CFO said, “We anticipate that our fourth quarter 2014 revenues will increase in the range of 18% to 22% over the comparable 2013 period. We expect income per diluted share to be between $0.60 and $0.66 per share. This compares to $0.50 per share in the fourth quarter of 2013.”

On October 23, 2014, our Board of Directors declared a quarterly cash dividend of $0.12 per share of common stock. The dividend is payable to shareholders of record at the close of business on November 21, 2014, and is expected to be paid on December 8, 2014.

This quarterly dividend is pursuant to a cash dividend policy approved by the Board of Directors, which anticipates a total annual dividend of $0.48 per share of common stock, payable in quarterly increments of $0.12 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.

Review of Financial Results

Forward Air will hold a conference call to discuss third quarter 2014 results on Friday, October 24, 2014 at 9:00 a.m. EDT. The Company’s conference call will be available online at www.forwardair.com or by dialing 800-230-1092. A replay of the conference call will be available at www.forwardair.com beginning shortly after the completion of the live call.

About Forward Air Corporation

Forward Air Corporation operates three business segments, Forward Air, Inc., Forward Air Solutions, Inc. and Total Quality, Inc.

Forward Air, Inc. is a leading provider of time-definite surface transportation and related logistics services to the North American expedited ground freight market. We offer our customers local pick-up and delivery (Forward Air CompleteSM) and scheduled surface transportation of cargo as a cost-effective, reliable alternative to air transportation. We transport cargo that must be delivered at a specific time but is relatively less time-sensitive than traditional air freight or when air transportation is not economical. We also offer our customers an array of logistics and other services including: expedited full truckload (TLX); intermodal/drayage (Central States Trucking Co.); dedicated fleets; warehousing; customs brokerage; and shipment consolidation, deconsolidation and handling.

Forward Air Solutions, Inc. is a provider of pool distribution services. Pool distribution involves the consolidation and shipment of several smaller less-than-truckload shipments to a common area or region. Once at the regional destination, the loads are deconsolidated, then grouped with other shipments with common delivery points, and delivered in a very precise, time-sensitive manner. Our pool distribution network consists of 24 terminals within the mid-Atlantic, Southeast, Midwest and Southwestern United States.

Total Quality, Inc. utilizes industry-leading temperature-controlled equipment, 24-hour monitoring and tracking technology and layered security features to provide our customers with the highest level of service. In addition to our core pharmaceutical services, we provide brokerage transportation services. Headquartered in central Michigan, we service the United States, Canada and Mexico.

Forward Air Corporation
Consolidated Statements of Comprehensive Income
(In thousands, except per share data)
(Unaudited)
Three months endedNine months ended

September 30,

2014

September 30,

2013

September 30,

2014

September 30,

2013

Operating revenue $ 201,477 $ 170,033 $ 566,897 $ 471,396
Operating expenses:
Purchased transportation 85,874 75,211 242,259 206,462
Salaries, wages and employee benefits 45,651 39,165 131,464 109,149
Operating leases 8,503 6,991 25,019 20,923
Depreciation and amortization 8,115 6,220 22,879 17,377
Insurance and claims 3,747 3,290 10,978 9,164
Fuel expense 5,012 3,871 14,990 10,535
Other operating expenses 17,669 12,428 48,537 36,634
Total operating expenses 174,571 147,176 496,126 410,244
Income from operations 26,906 22,857 70,771 61,152
Other income (expense):
Interest expense (172 ) (145 ) (355 ) (401 )
Other, net (55 ) 27 144 72
Total other income (expense) (227 ) (118 ) (211 ) (329 )
Income before income taxes 26,679 22,739 70,560 60,823
Income taxes 9,935 8,542 26,437 21,941
Net income and comprehensive income $ 16,744 $ 14,197 $ 44,123 $ 38,882
Net income per share:
Basic $ 0.55 $ 0.47 $ 1.44 $ 1.30
Diluted $ 0.54 $ 0.46 $ 1.41 $ 1.27
Weighted average shares outstanding:
Basic 30,415 30,374 30,710 30,017
Diluted 30,932 30,986 31,234 30,677
Dividends per share: $ 0.12 $ 0.10 $ 0.36 $ 0.30
Forward Air Corporation
Components of Consolidated Revenue and Purchased Transportation
(In thousands)
(Unaudited)
Three months ended
September 30,Percent ofSeptember 30,Percent ofPercent
2014Revenue2013RevenueChangeChange
Operating Revenue
Forward Air
Airport-to-airport $ 111,429 69.6 % $ 101,238 78.6 % $ 10,191 10.1 %
Logistics services
Expedited full truckload - TLX 19,955 12.5 19,138 14.9 817 4.3
Intermodal/drayage 15,799 9.9 1,090 0.8 14,709 1,349.4
Total Logistics services 35,754 22.4 20,228 15.7 15,526 76.8
Other Forward Air services 12,902 8.0 7,325 5.7 5,577 76.1
Forward Air - Total revenue 160,085 79.4 128,791 75.8 31,294 24.3
TQI - Pharmaceutical services 12,029 6.0 12,431 7.3 (402 ) (3.2 )
Forward Air Solutions - Pool distribution 30,615 15.2 29,827 17.5 788 2.6
Intersegment eliminations (1,252 ) (0.6 ) (1,016 ) (0.6 ) (236 ) 23.2
Consolidated operating revenue $ 201,477 100.0 % $ 170,033 100.0 % $ 31,444 18.5 %
Three months ended
September 30,Percent ofSeptember 30,Percent ofPercent
2014Revenue2013RevenueChangeChange
Purchased Transportation
Forward Air
Airport-to-airport $ 47,720 42.8 % $ 42,542 42.0 % $ 5,178 12.2 %
Logistics services
Expedited full truckload - TLX 15,048 75.4 14,545 76.0 503 3.5
Intermodal/drayage 5,966 37.8 708 65.0 5,258 742.7
Total Logistics services 21,014 58.8 15,253 75.4 5,761 37.8
Other Forward Air services 3,191 24.7 2,116 28.9 1,075 50.8
Forward Air - Total purchased transportation 71,925 44.9 59,911 46.5 12,014 20.1
TQI - Pharmaceutical services 6,018 50.0 6,921 55.7 (903 ) (13.0 )
Forward Air Solutions - Pool distribution 8,767 28.6 9,094 30.5 (327 ) (3.6 )
Intersegment eliminations (836 ) 66.8 (715 ) 70.4 (121 ) 16.9
Consolidated purchased transportation $ 85,874 42.6 % $ 75,211 44.2 % $ 10,663 14.2 %
Forward Air Corporation
Components of Consolidated Revenue and Purchased Transportation
(In thousands)
(Unaudited)
Nine months ended
September 30,Percent ofSeptember 30,Percent ofPercent
2014Revenue2013RevenueChangeChange
Operating Revenue
Forward Air
Airport-to-airport $ 317,147 70.7 % $ 289,163 78.4 % $ 27,984 9.7 %
Logistics services
Expedited full truckload - TLX 56,582 12.6 55,219 15.0 1,363 2.5
Intermodal/drayage 39,146 8.7 3,801 1.0 35,345 929.9
Total Logistics services 95,728 21.3 59,020 16.0 36,708 62.2
Other Forward Air services 35,663 8.0 20,797 5.6 14,866 71.5
Forward Air - Total revenue 448,538 79.1 368,980 78.3 79,558 21.6
TQI - Pharmaceutical services 36,771 6.5 28,545 6.1 8,226 28.8
Forward Air Solutions - Pool distribution 84,872 15.0 76,381 16.1 8,491 11.1
Intersegment eliminations (3,284 ) (0.6 ) (2,510 ) (0.5 ) (774 ) 30.8
Consolidated operating revenue $ 566,897 100.0 % $ 471,396 100.0 % $ 95,501 20.3 %
Nine months ended
September 30,Percent ofSeptember 30,Percent ofPercent
2014Revenue2013RevenueChangeChange
Purchased Transportation
Forward Air
Airport-to-airport $ 133,245 42.0 % $ 119,007 41.2 % $ 14,238 12.0 %
Logistics services
Expedited full truckload - TLX 43,419 76.7 41,579 75.3 1,840 4.4
Intermodal/drayage 15,859 40.5 2,328 61.2 13,531 581.2
Total Logistics services 59,278 61.9 43,907 74.4 15,371 35.0
Other Forward Air services 8,774 24.6 6,006 28.9 2,768 46.1
Forward Air - Total purchased transportation 201,297 44.9 168,920 45.8 32,377 19.2
TQI - Pharmaceutical services 18,698 50.8 15,835 55.5 2,863 18.1
Forward Air Solutions - Pool distribution 24,681 29.1 23,621 30.9 1,060 4.5
Intersegment eliminations (2,417 ) 73.6 (1,914 ) 76.3 (503 ) 26.3
Consolidated purchased transportation $ 242,259 42.7 % $ 206,462 43.8 % $ 35,797 17.3 %
Forward Air Corporation
Consolidated Balance Sheets
(In thousands)
(Unaudited)

September 30,

2014

December 31,

2013(a)

Assets
Current assets:
Cash and cash equivalents $ 24,573 $ 127,367
Accounts receivable, net 100,016 76,500
Other current assets 14,057 16,493
Total current assets 138,646 220,360
Property and equipment 303,755 271,050
Less accumulated depreciation and amortization 127,259 116,287
Net property and equipment 176,496 154,763
Goodwill and other acquired intangibles:
Goodwill 140,678 88,496
Other acquired intangibles, net of accumulated amortization 71,778 40,110
Total net goodwill and other acquired intangibles 212,456 128,606
Other assets 2,347 2,540
Total assets $ 529,945 $ 506,269
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable $ 21,395 $ 16,267
Accrued expenses 23,356 18,275
Current portion of debt and capital lease obligations 280 69
Total current liabilities 45,031 34,611
Debt and capital lease obligations, less current portion 1,346 3
Other long-term liabilities 8,148 8,940
Deferred income taxes 28,838 26,850
Shareholders’ equity:
Common stock 302 305
Additional paid-in capital 126,516 107,726
Retained earnings 319,764 327,834
Total shareholders’ equity 446,582 435,865
Total liabilities and shareholders’ equity $ 529,945 $ 506,269
(a) Taken from audited financial statements, which are not presented in their entirety.
Forward Air Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three months ended

September 30,

2014

September 30,

2013

Operating activities:
Net income $ 16,744 $ 14,197
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization 8,115 6,220
Share-based compensation 1,676 1,525
Gain on disposal of property and equipment (329 ) (185 )
Provision for loss (recovery) on receivables 46 (56 )
Provision for revenue adjustments 646 579
Deferred income tax 156 1,722
Excess tax benefit for stock options exercised 353 (337 )
Changes in operating assets and liabilities
Accounts receivable (3,148 ) (7,458 )
Prepaid expenses and other current assets 1,032 515
Accounts payable and accrued expenses 587 6,515
Net cash provided by operating activities 25,878 23,237
Investing activities:
Proceeds from disposal of property and equipment 1,120 617
Purchases of property and equipment (3,681 ) (5,272 )
Acquisition of business, net of cash acquired (1,350 )
Other 246 (51 )
Net cash used in investing activities (3,665 ) (4,706 )
Financing activities:
Payments of debt and capital lease obligations (84 ) (48 )
Proceeds from exercise of stock options 1,503 1,687
Payments of cash dividends (3,662 ) (3,057 )
Repurchase of common stock (repurchase program) (19,987 )
Excess tax benefit for stock options exercised (353 ) 337
Net cash used in financing activities (22,583 ) (1,081 )
Net (decrease) increase in cash (370 ) 17,450
Cash at beginning of period 24,943 81,101
Cash at end of period $ 24,573 $ 98,551
Forward Air Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine months ended

September 30,

2014

September 30,

2013

Operating activities:
Net income $ 44,123 $ 38,882
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization 22,879 17,377
Share-based compensation 5,005 4,619
Gain on disposal of property and equipment (441 ) (468 )
Provision for (recovery) loss on receivables (39 ) 234
Provision for revenue adjustments 1,896 1,705
Deferred income tax 1,729 4,658
Excess tax benefit for stock options exercised (554 ) (3,207 )
Changes in operating assets and liabilities
Accounts receivable (15,875 ) (4,262 )
Prepaid expenses and other current assets (1,397 ) (1,575 )
Accounts payable and accrued expenses 7,767 2,524
Net cash provided by operating activities 65,093 60,487
Investing activities:
Proceeds from disposal of property and equipment 1,582 1,665
Purchases of property and equipment (37,101 ) (33,266 )
Acquisition of business, net of cash acquired (84,348 ) (45,328 )
Other 53 (111 )
Net cash used in investing activities (119,814 ) (77,040 )
Financing activities:
Payments of debt and capital lease obligations (9,662 ) (20,351 )
Proceeds from exercise of stock options 13,083 29,866
Payments of cash dividends (11,141 ) (9,071 )
Repurchase of common stock (repurchase program) (39,972 )
Common stock issued under employee stock purchase plan 148 137
Cash settlement of share-based awards for minimum tax withholdings (1,083 ) (866 )
Excess tax benefit for stock options exercised 554 3,207
Net cash (used in) provided by financing activities (48,073 ) 2,922
Net decrease in cash (102,794 ) (13,631 )
Cash at beginning of period 127,367 112,182
Cash at end of period $ 24,573 $ 98,551
Forward Air Corporation
Segment Information
(In millions)
(Unaudited)
Three months ended
September 30,Percent ofSeptember 30,Percent ofPercent
2014Revenue2013RevenueChangeChange
Operating revenue
Forward Air $ 160.1 79.4 % $ 128.8 75.8 % $ 31.3 24.3 %
FASI 30.6 15.2 29.8 17.5 0.8 2.7
TQI 12.0 6.0 12.4 7.3 (0.4 ) (3.2 )
Intercompany eliminations (1.2 ) (0.6 ) (1.0 ) (0.6 ) (0.2 ) 20.0
Total 201.5 100.0 170.0 100.0 31.5 18.5
Purchased transportation
Forward Air 71.9 44.9 59.9 46.5 12.0 20.0
FASI 8.8 28.8 9.1 30.5 (0.3 ) (3.3 )
TQI 6.0 50.0 6.9 55.6 (0.9 ) (13.0 )
Intercompany eliminations (0.8 ) 66.7 (0.7 ) 70.0 (0.1 ) 14.3
Total 85.9 42.6 75.2 44.2 10.7 14.2
Salaries, wages and employee benefits
Forward Air 33.1 20.7 27.3 21.2 5.8 21.2
FASI 10.4 34.0 10.0 33.6 0.4 4.0
TQI 2.2 18.3 1.8 14.5 0.4 22.2
Total 45.7 22.7 39.1 23.0 6.6 16.9
Operating leases
Forward Air 6.5 4.1 4.9 3.8 1.6 32.7
FASI 2.0 6.5 2.1 7.0 (0.1 ) (4.8 )
TQI
Total 8.5 4.2 7.0 4.1 1.5 21.4
Depreciation and amortization
Forward Air 5.7 3.6 4.2 3.3 1.5 35.7
FASI 1.5 4.9 1.3 4.4 0.2 15.4
TQI 0.9 7.5 0.7 5.7 0.2 28.6
Total 8.1 4.0 6.2 3.7 1.9 30.6
Insurance and claims
Forward Air 3.1 1.9 2.3 1.8 0.8 34.8
FASI 0.4 1.3 0.8 2.7 (0.4 ) (50.0 )
TQI 0.2 1.7 0.2 1.6
Total 3.7 1.9 3.3 1.9 0.4 12.1
Fuel expense
Forward Air 2.1 1.3 0.9 0.7 1.2 133.3
FASI 1.8 5.9 1.7 5.7 0.1 5.9
TQI 1.1 9.2 1.3 10.5 (0.2 ) (15.4 )
Total 5.0 2.5 3.9 2.3 1.1 28.2
Other operating expenses
Forward Air 13.5 8.4 8.7 6.7 4.8 55.2
FASI 3.9 12.7 3.4 11.4 0.5 14.7
TQI 0.7 5.8 0.6 4.8 0.1 16.7
Intercompany eliminations (0.4 ) 33.3 (0.3 ) 30.0 (0.1 ) 33.3
Total 17.7 8.8 12.4 7.3 5.3 42.7
Income from operations
Forward Air 24.2 15.1 20.6 16.0 3.6 17.5
FASI 1.8 5.9 1.4 4.7 0.4 28.6
TQI 0.9 7.5 0.9 7.3
Total $ 26.9 13.3 % $ 22.9 13.5 % $ 4.0 17.5 %
Forward Air Corporation
Segment Information
(In millions)
(Unaudited)
Nine months ended
September 30,Percent ofSeptember 30,Percent ofPercent
2014Revenue2013RevenueChangeChange
Operating revenue
Forward Air $ 448.5 79.1 % $ 369.0 78.3 % $ 79.5 21.5 %
FASI 84.9 15.0 76.4 16.2 8.5 11.1
TQI 36.8 6.5 28.5 6.0 8.3 29.1
Intercompany eliminations (3.3 ) (0.6 ) (2.5 ) (0.5 ) (0.8 ) 32.0
Total 566.9 100.0 471.4 100.0 95.5 20.3
Purchased transportation
Forward Air 201.3 44.9 168.9 45.8 32.4 19.2
FASI 24.6 29.0 23.6 30.9 1.0 4.2
TQI 18.7 50.8 15.9 55.8 2.8 17.6
Intercompany eliminations (2.4 ) 72.7 (1.9 ) 76.0 (0.5 ) 26.3
Total 242.2 42.7 206.5 43.8 35.7 17.3
Salaries, wages and employee benefits
Forward Air 96.1 21.4 78.0 21.1 18.1 23.2
FASI 29.0 34.2 26.8 35.1 2.2 8.2
TQI 6.4 17.4 4.4 15.4 2.0 45.5
Total 131.5 23.2 109.2 23.2 22.3 20.4
Operating leases
Forward Air 18.4 4.1 14.9 4.0 3.5 23.5
FASI 6.5 7.7 5.9 7.7 0.6 10.2
TQI 0.1 0.3 0.1 0.4
Total 25.0 4.4 20.9 4.4 4.1 19.6
Depreciation and amortization
Forward Air 16.0 3.6 12.1 3.3 3.9 32.2
FASI 4.2 4.9 3.6 4.7 0.6 16.7
TQI 2.7 7.3 1.7 6.0 1.0 58.8
Total 22.9 4.0 17.4 3.7 5.5 31.6
Insurance and claims
Forward Air 8.7 1.9 6.5 1.8 2.2 33.8
FASI 1.8 2.1 2.3 3.0 (0.5 ) (21.7 )
TQI 0.5 1.4 0.4 1.4 0.1 25.0
Total 11.0 2.0 9.2 1.9 1.8 19.6
Fuel expense
Forward Air 6.2 1.4 2.9 0.8 3.3 113.8
FASI 5.3 6.2 4.8 6.3 0.5 10.4
TQI 3.5 9.5 2.8 9.8 0.7 25.0
Total 15.0 2.6 10.5 2.2 4.5 42.9
Other operating expenses
Forward Air 37.0 8.3 26.9 7.3 10.1 37.5
FASI 10.7 12.6 9.0 11.8 1.7 18.9
TQI 1.7 4.6 1.3 4.5 0.4 30.8
Intercompany eliminations (0.9 ) 27.3 (0.6 ) 24.0 (0.3 ) 50.0
Total 48.5 8.6 36.6 7.8 11.9 32.5
Income from operations
Forward Air 64.8 14.4 58.8 15.9 6.0 10.2
FASI 2.8 3.3 0.4 0.5 2.4 600.0
TQI 3.2 8.7 1.9 6.7 1.3 68.4
Total $ 70.8 12.5 % $ 61.1 13.0 % $ 9.7 15.9 %
Forward Air Corporation
Forward Air Inc. Operating Statistics
Three months ended
September 30,September 30,Percent
20142013Change
Operating ratio 84.9 % 84.0 % 1.1 %
Business days 64.0 64.0
Business weeks 12.8 12.8
Airport-to-airport:
Tonnage

Total pounds1

484,827 462,297 4.9

Average weekly pounds1

37,877 36,117 4.9
Linehaul shipments
Total linehaul 734,163 688,257 6.7
Average weekly 57,356 53,770 6.7
Forward Air Complete shipments 146,024 124,184 17.6
As a percentage of linehaul shipments 19.9 % 18.0 % 10.6
Average linehaul shipment size 660 672 (1.8 )

Revenue per pound2

Linehaul yield $ 17.69 $ 16.97 3.3
Fuel surcharge impact 1.94 1.85 0.4
Forward Air Complete impact 3.35 3.08 1.2
Total airport-to-airport yield $ 22.98 $ 21.90 4.9
Expedited full truckload - TLX:
Miles

Owner operator1

6,391 8,915 (28.3 )

Third party1

4,895 3,815 28.3
Total Miles 11,286 12,730 (11.3 )
Revenue per mile $ 1.77 $ 1.50 18.0
Cost per mile $ 1.33 $ 1.14 16.7 %

1 - In thousands

2 - In dollars per hundred pound; percentage change is expressed as a percent of total yield.

Forward Air Corporation
Forward Air Inc. Operating Statistics
Nine months ended
September 30,September 30,Percent
20142013Change
Operating ratio 85.6 % 84.1 % 1.8 %
Business days 191.0 191.0
Business weeks 38.2 38.2
Airport-to-airport:
Tonnage

Total pounds1

1,399,687 1,320,382 6.0

Average weekly pounds1

36,641 34,565 6.0
Linehaul shipments
Total linehaul 2,127,645 2,038,599 4.4
Average weekly 55,698 53,366 4.4
Forward Air Complete shipments 393,170 353,270 11.3
As a percentage of linehaul shipments 18.5 % 17.3 % 6.9
Average linehaul shipment size 658 648 1.5

Revenue per pound2

Linehaul yield $ 17.56 $ 17.08 2.2
Fuel surcharge impact 2.00 1.92 0.4
Forward Air Complete impact 3.10 2.90 0.9
Total airport-to-airport yield $ 22.66 $ 21.90 3.5
Expedited full truckload - TLX:
Miles

Owner operator1

20,288 26,399 (23.1 )

Third party1

13,547 10,663 27.0
Total Miles 33,835 37,062 (8.7 )
Revenue per mile $ 1.67 $ 1.49 12.1
Cost per mile $ 1.28 $ 1.12 14.3 %

1 - In thousands

2 - In dollars per hundred pound; percentage change is expressed as a percent of total yield.

Important Information

This press release contains “forward-looking statements,” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements other than historical information or statements of current condition and relate to future events or our future financial performance. Some forward-looking statements may be identified by use of such terms as “believes,” “anticipates,” “intends,” “plans,” “estimates,” “projects” or “expects.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such 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, our inability to maintain our historical growth rate because of a decreased volume of freight moving through our network or decreased average revenue per pound of freight moving through our network, increasing competition and pricing pressure, surplus inventories, loss of a major customer, the creditworthiness of our customers and their ability to pay for services rendered, our ability to secure terminal facilities in desirable locations at reasonable rates, the inability of our information systems to handle an increased volume of freight moving through our network, changes in fuel prices, claims for property damage, personal injuries or workers’ compensation, employment matters including rising health care costs, enforcement of and changes in governmental regulations, environmental and tax matters, the handling of hazardous materials, the availability and compensation of qualified independent owner-operators and freight handlers needed to serve our transportation needs and our inability to successfully integrate acquisitions. As a result of the foregoing, no assurance can be given as to future financial condition, cash flows or results of operations. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts:

Forward Air Corporation
Rodney L. Bell, 423-636-7000
rbell@forwardair.com

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