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

GREENEVILLE, Tenn.--(BUSINESS WIRE)-- Forward Air Corporation (NAS: FWRD) today reported results for the fourth quarter and year ended December 31, 2012.

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 or by dialing 800-230-1059. A replay of the conference call will be available at 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 endedYear ended

December 31,


December 31,

December 31,


December 31,

Operating revenue:
Forward Air
Forward Air Solutions
Pool distribution27,722 24,634 83,825 72,738 
Total operating revenue155,525148,259584,446536,402
Operating expenses:
Purchased transportation
Forward Air
Forward Air Solutions
Pool distribution7,221 6,288 22,211 17,355 
Total purchased transportation65,17662,379252,720223,000
Salaries, wages and employee benefits37,59735,315135,006130,651
Operating leases7,1647,03927,98927,122
Depreciation and amortization5,0815,25921,02120,993
Insurance and claims3,1772,65811,3098,798
Fuel expense2,7672,68310,03810,041
Other operating expenses10,529 9,297 42,831 38,687 
Total operating expenses131,491 124,630 500,914 459,292 
Income from operations24,03423,62983,53277,110
Other income (expense):
Interest expense(150)(151)(391)(619)
Other, net20 16 14 74 
Total other expense(130)(135)(377)(545)
Income before income taxes23,90423,49483,15576,565
Income taxes7,944 9,045 30,487 29,366 
Net income$15,960 $14,449 $52,668 $47,199 
Net income per share:
Basic$0.55 $0.51 $1.82 $1.62 
Diluted$0.54 $0.50 $1.78 $1.60 
Weighted average shares outstanding:
Dividends per share:$0.10 $0.07 $0.34 $0.28 
Forward Air Corporation
Consolidated Balance Sheets
(In thousands)
  December 31,
  December 31,

2011 (a)

Current assets:
Cash and cash equivalents$112,182$58,801
Accounts receivable, net75,26270,922
Other current assets10,952 9,994
Total current assets198,396139,717
Property and equipment239,138223,135
Less accumulated depreciation and amortization105,581 93,267
Net property and equipment133,557129,868
Goodwill and other acquired intangibles:
Other acquired intangibles, net of accumulated amortization22,102 26,668
Total net goodwill and other acquired intangibles65,43470,000
Other assets1,800 1,566
Total assets$399,187 $341,151
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable$11,168$12,392
Accrued expenses16,47620,986
Current portion of debt and capital lease obligations276 552
Total current liabilities27,92033,930
Debt and capital lease obligations, less current portion58333
Other long-term liabilities7,0988,860
Deferred income taxes12,44011,126
Commitments and contingencies
Shareholders' equity:
Common stock292285
Additional paid-in capital64,64442,212
Retained earnings286,735 244,405
Total shareholders' equity351,671 286,902
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
(In thousands)
Three months ended

December 31,

December 31,

Operating activities:
Net income$15,960$14,449
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization5,0815,259
Share-based compensation1,5001,514
Loss (gain) on disposal of property and equipment59(6)
Provision for recovery on receivables(27)(234)
Provision for revenue adjustments586471
Deferred income taxes(417)(931)
Tax benefit for stock options exercised(31)(515)
Changes in operating assets and liabilities
Accounts receivable(943)(1,585)
Prepaid expenses and other current assets29871
Accounts payable and accrued expenses841 3,636 
Net cash provided by operating activities22,90722,129
Investing activities:
Proceeds from disposal of property and equipment44270
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