[FORWARD AIR CORPORATION LOGO]
NEWS RELEASE
Contact: Andrew C. Clarke
Chief Financial Officer
and Senior Vice President
(423) 636-7000
FORWARD AIR CORPORATION REPORTS THIRD QUARTER RESULTS
AND APPOINTMENT OF NEW CEO
- EPS UP 38.1% ON REVENUE GAINS OF 5.4%
- BRUCE CAMPBELL NAMED NEW CEO
- SCOTT NISWONGER TO CONTINUE AS CHAIRMAN
GREENEVILLE, Tenn. (October 27, 2003) -- Forward Air Corporation
(Nasdaq/NM:FWRD), a high-service-level contractor to the air cargo industry
providing time-definite service in the United States and Canada, today reported
results for the third quarter of 2003.
Income from operations for the quarter ended September 30, 2003 increased 38.9%
to $10.0 million from $7.2 million in the prior-year quarter. Operating revenue
for the period increased 5.4% to $60.5 million compared with $57.4 million for
the same quarter in 2002. Net income for the third quarter of 2003 increased
37.0% to $6.3 million from $4.6 million in the prior-year quarter. Diluted
earnings per share for the third quarter of 2003 were $0.29, an increase of
38.1% compared with $0.21 in the prior-year quarter.
Income from operations for the nine months ended September 30, 2003 was $28.6
million, an increase of 21.7%, compared with $23.5 million in the prior-year
period. Operating revenue for the period was $176.3 million compared with $166.7
million for the same period in 2002, an increase of 5.8%. Net income for the
first nine months of 2003 was $18.1 million, an increase of 22.3%, compared with
$14.8 million in the prior-year period. Diluted earnings per share for the first
nine months of 2003 were $0.84, an increase of 25.4%, compared with $0.67 in the
prior-year period.
Today, Forward Air also announced that Bruce Campbell, after 13 years with the
Company as Chief Operating Officer, has been named Chief Executive Officer.
Company founder Scott Niswonger will continue as the non-executive Chairman of
the Board.
Bruce A. Campbell, President and CEO stated, "We are pleased to report another
strong quarter during 2003. Through its continued focus on profitable growth and
cost controls, the Company was able to deliver greater earnings to the bottom
line than any other third quarter period in our history. Revenue from the
airport-to-airport network continued to grow at 5.3% during the quarter led by
improvements in average revenue per pound. Logistics revenue, while down 5.6%
during the quarter, did show improvement as the quarter progressed as we were
able to replace previously announced discontinued business with more profitable
revenue."
Forward Air Corporation Reports Third Quarter Results and Appointment of New CEO
October 27, 2003
Page 2
CAMPBELL NAMED NEW CEO; NISWONGER TO CONTINUE AS CHAIRMAN
At its meeting on October 27, the Board of Directors of Forward Air named Bruce
A. Campbell as the new CEO replacing Scott M. Niswonger, who will remain as the
non-executive Chairman of the Board. Commenting on the succession, Scott
Niswonger stated, "Forward Air has grown from an idea 13 years ago to a leading
provider of time-definite transportation to the air cargo industry recognized by
Forbes Magazine five years in a row as one of the "Best 200 Small Companies."
Bruce Campbell has played a critical role in our success and I believe his
leadership will allow the Company to expand its service offerings and
customers."
Bruce Campbell was named President in 1998 after serving as the Executive Vice
President and Chief Operating Officer since 1990 when he joined the Company.
EARNINGS CALL INFORMATION
Forward Air Corporation will hold its quarterly conference call to discuss third
quarter results on Tuesday, October 28, 2003, at 9:00 a.m. EST. The Company's
conference call will be available online at www.forwardair.com. The live webcast
will begin at 9:00 a.m. EST on Tuesday, October 28, with the replay beginning
shortly after the completion of the live call. Additionally, interested parties
may participate in the call by dialing (877) 888-7019.
Forward Air Corporation Reports Third Quarter Results and Appointment of New CEO
October 27, 2003
Page 3
FORWARD AIR CORPORATION
CONDENSED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share data)
Three months ended Nine months ended
-------------------- --------------------
9/30/03 9/30/02 9/30/03 9/30/02
-------- -------- -------- --------
Operating revenue $ 60,513 $ 57,447 $176,333 $166,699
Operating expenses:
Purchased transportation 25,519 25,712 74,174 72,494
Salaries, wages and employee
benefits 13,464 12,992 39,886 37,173
Operating leases 3,250 3,002 9,625 8,991
Depreciation and amortization 1,888 1,849 5,440 5,615
Insurance and claims 1,508 1,327 4,140 4,117
Other operating expenses 4,865 5,351 14,461 14,813
-------- -------- -------- --------
50,494 50,233 147,726 143,203
-------- -------- -------- --------
Income from operations 10,019 7,214 28,607 23,496
Other income, net 107 141 375 384
-------- -------- -------- --------
Income before income taxes 10,126 7,355 28,982 23,880
Income taxes 3,797 2,795 10,869 9,074
-------- -------- -------- --------
Net income $ 6,329 $ 4,560 $ 18,113 $ 14,806
======== ======== ======== ========
Income per share:
Basic $ 0.30 $ 0.21 $ 0.85 $ 0.69
Diluted $ 0.29 $ 0.21 $ 0.84 $ 0.67
Weighted average shares outstanding:
Basic 21,341 21,669 21,279 21,595
Diluted 21,782 22,084 21,671 22,221
FORWARD AIR CORPORATION
CONDENSED BALANCE SHEET
(In thousands)
9/30/03 12/31/02
--------- -----------
Assets: Unaudited Audited (a)
Cash and short-term investments $ 76,660 $ 53,916
Other current assets 36,552 34,858
Property and equipment, net 34,304 37,173
Other assets 19,121 19,564
-------- --------
Total assets $166,637 $145,511
======== ========
Liabilities and shareholders' equity:
Current liabilities $ 18,173 $ 18,690
Long-term obligations 10,090 8,475
Shareholders' equity 138,374 118,346
-------- --------
Total liabilities and shareholders' equity $166,637 $145,511
======== ========
(a) Taken from audited financial statements, which are not presented in their
entirety.
Forward Air Corporation Reports Third Quarter Results and Appointment of New CEO
October 27, 2003
Page 4
IMPORTANT INFORMATION
This report contains statements with respect to the Company's beliefs and
expectations of the outcomes of future events that are forward-looking
statements as defined in the Private Securities Litigation Reform Act of 1995.
Written forward-looking statements may appear in documents filed with the
Securities and Exchange Commission, in press releases and in reports to
shareholders. Oral forward-looking statements may be made by the Company's
executive officers and directors on behalf of the Company to the press,
potential investors, securities analysts and others. The Private Securities
Litigation Reform Act of 1995 contains a safe harbor for forward-looking
statements. The Company relies on this safe harbor in making such disclosures.
In connection with this safe harbor provision, the Company is hereby identifying
important factors that could cause actual results to differ materially from
those contained in any forward-looking statement made by or on behalf of the
Company in this press release. Without limitation, factors that might cause such
a difference include economic factors such as recessions, inflation, higher
interest rates and downturns in customer business cycles, the Company's
inability to maintain its historical growth rate because of a decreased volume
of freight moving through the Company's network or decreased average revenue per
pound of freight moving through the network, increasing competition and pricing
pressure, surplus inventories, loss of a major customer, the creditworthiness of
the Company's customers and their ability to pay for services rendered, the
Company's ability to secure terminal facilities in desirable locations at
reasonable rates, the inability of the Company's information systems to handle
an increased volume of freight moving through its 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 the Company's
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. Forward-looking statements can
be identified by words such as "expects," "anticipates," "intends," "plans,"
"believes," "estimates," "projects," and similar expressions. The Company does
not undertake any obligation to update or to release publicly any revisions to
forward-looking statements contained in this report to reflect events or
circumstances occurring after the date of this report or to reflect the
occurrence of unanticipated events.
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