Forward Air Corporation Reports Fourth Quarter and Fiscal 2012 Results and Announces Quarterly Cash
Forward Air Corporation Reports Fourth Quarter and Fiscal 2012 Results and Announces Quarterly Cash Dividend
Operating revenue for the quarter ended December 31, 2012 increased 4.9% to $155.5 million from $148.2 million for the same quarter in 2011. Income from operations was $24.0 million, compared with $23.6 million for the fourth quarter of 2011, an increase of 1.7%. Net income per diluted share for the fourth quarter of 2012 was $0.54 compared with $0.50 in the same quarter of 2011, an increase of 8.0%.
Operating revenue for the year ended December 31, 2012 increased 8.9% to $584.4 million from $536.4 million for the year ended December 31, 2011. Income from operations was $83.5 million, compared with $77.1 million in 2011. Net income per diluted share for the year ended December 31, 2012 was $1.78 compared with $1.60 in 2011.
Bruce A. Campbell, Chairman, President and CEO, said, "Overall, we achieved the fourth quarter Forward Air, Inc. operating segment results that we anticipated." Commenting on the Forward Air Solutions business segment, Mr. Campbell said, "Over the course of 2012, we made good progress within our Solutions service offering. In the fourth quarter, we grew revenue 12.5% primarily on revenues from newly-won business. While the profitability from our new business wins is initially offset by the start-up costs associated with any new business launch, we are encouraged by how robust our new business pipeline looks for the first quarter."
In closing, Mr. Campbell said, "As always, I would like to acknowledge our employees and independent contractors. Their contributions were critical to our delivering another solid year for Forward Air and continued value to our shareholders."
In commenting on the Company's guidance for the first quarter, Rodney L. Bell, Senior Vice President and CFO said, "We anticipate our first quarter 2013 revenues will increase in the range of 5% to 8% over the comparable 2012 period, and we expect income per diluted share to be between $0.36 and $0.40 per share. This compares to $0.35 per share in the first quarter of 2012."
On February 8, 2013, our Board of Directors declared a quarterly cash dividend of $0.10 per share of common stock. The dividend is payable to shareholders of record at the close of business on March 8, 2013, and is expected to be paid on March 22, 2013.
This quarterly dividend is pursuant to a cash dividend policy approved by the Board of Directors, which anticipates a total annual dividend of $0.40 per share of common stock, payable in quarterly increments of $0.10 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 fourth quarter and year end 2012 results on Tuesday, February 12, 2013 at 9:00 a.m. EST. The Company's conference call will be available online at www.forwardair.com or by dialing 800-230-1059. 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 two business segments, Forward Air, Inc. and Forward Air Solutions, Inc.
Forward Air, Inc. is a high-service-level contractor to the air cargo industry providing time-definite ground transportation services through a network of terminals located on or near major airports in 87 cities in the United States and Canada. It provides these services as a cost-effective alternative to air transportation of 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.
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 terminals and service locations in 19 cities within the Mid-Atlantic, Southeast, Midwest and Southwestern United States.
|Forward Air Corporation|
|Consolidated Statements of Income|
|(In thousands, except per share data)|
|Three months ended||Year ended|
|Forward Air Solutions|
|Total operating revenue||155,525||148,259||584,446||536,402|
|Forward Air Solutions|
|Total purchased transportation||65,176||62,379||252,720||223,000|
|Salaries, wages and employee benefits||37,597||35,315||135,006||130,651|
|Depreciation and amortization||5,081||5,259||21,021||20,993|
|Insurance and claims||3,177||2,658||11,309||8,798|
|Other operating expenses||10,529||9,297||42,831||38,687|
|Total operating expenses||131,491||124,630||500,914||459,292|
|Income from operations||24,034||23,629||83,532||77,110|
|Other income (expense):|
|Total other expense||(130||)||(135||)||(377||)||(545||)|
|Income before income taxes||23,904||23,494||83,155||76,565|
|Net income per share:|
|Weighted average shares outstanding:|
|Dividends per share:||$||0.10||$||0.07||$||0.34||$||0.28|
|Forward Air Corporation|
|Consolidated Balance Sheets|
|Cash and cash equivalents||$||112,182||$||58,801|
|Accounts receivable, net||75,262||70,922|
|Other current assets||10,952||9,994|
|Total current assets||198,396||139,717|
|Property and equipment||239,138||223,135|
|Less accumulated depreciation and amortization||105,581||93,267|
|Net property and equipment||133,557||129,868|
|Goodwill and other acquired intangibles:|
|Other acquired intangibles, net of accumulated amortization||22,102||26,668|
|Total net goodwill and other acquired intangibles||65,434||70,000|
|Liabilities and Shareholders' Equity|
|Current portion of debt and capital lease obligations||276||552|
|Total current liabilities||27,920||33,930|
|Debt and capital lease obligations, less current portion||58||333|
|Other long-term liabilities||7,098||8,860|
|Deferred income taxes||12,440||11,126|
|Commitments and contingencies|
|Additional paid-in capital||64,644||42,212|
|Total shareholders' equity||351,671||286,902|
|Total liabilities and shareholders' equity||$||399,187||$||341,151|
|(a) Taken from audited financial statements, which are not presented in their entirety.|
|Forward Air Corporation|
|Consolidated Statements of Cash Flows|
|Three months ended|
|Adjustments to reconcile net income to net cash provided by operating activities|
|Depreciation and amortization||5,081||5,259|
|Loss (gain) on disposal of property and equipment||59||(6||)|
|Provision for recovery on receivables||(27||)||(234||)|
|Provision for revenue adjustments||586||471|
|Deferred income taxes||(417||)||(931||)|
|Tax benefit for stock options exercised||(31||)||(515||)|
|Changes in operating assets and liabilities|
|Prepaid expenses and other current assets||298||71|
|Accounts payable and accrued expenses||841||3,636|
|Net cash provided by operating activities||22,907||22,129|
|Proceeds from disposal of property and equipment||44||270||Read Full Story|