1
Exhibit 99
NEWS RELEASE
Contact: Edward W. Cook
Chief Financial Officer
and Senior Vice President
(423) 636-7100
FORWARD AIR CORPORATION REPORTS 100% INCREASE IN
FIRST QUARTER 1999 EARNINGS PER SHARE
GREENEVILLE, Tenn. (April 15, 1999) -- 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 record
operating revenue and earnings relating to its first quarter 1999 results of
operations.
Operating revenue for the quarter ended March 31, 1999 increased to a record
$37.7 million compared with $28.9 million for the same quarter in 1998.
Operating income from continuing operations for the period was $5.5 million, an
increase of 96.4%, compared with $2.8 million in the prior-year quarter. Income
from continuing operations for the first quarter of 1999 was $3.1 million, an
increase of 93.8%, compared with $1.6 million in the prior-year quarter. Diluted
earnings per share from continuing operations for the first quarter of 1999 were
$.24, an increase of 100%, compared with $.12 in the prior-year quarter.
"Forward Air is pleased to confirm our preliminary report of an outstanding
first quarter," commented Bruce A. Campbell, President and Chief Operating
Officer. "The strong demand for our airport-to-airport service has accelerated
as a result of increased business from existing customers. These higher volumes
of shipments through our existing network have resulted in increased
efficiencies and improved margins."
This press release and statements made by the Company in reports to its
shareholders and public filings, as well as oral public statements by the
Company's representatives, may contain certain forward-looking information that
is subject to certain risks and uncertainties that could cause actual results to
differ materially from those projected. 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 due to a decreased volume of
freight moving through the Company's network, competition, surplus inventories,
loss of a major customer, the Company's lack of prior operating history as an
entity independent of the truckload operations, the ability of the Company's
information systems to handle increased volume of freight moving through its
network, and the availability and compensation of qualified independent
owner-operators to serve the Company's transportation needs. The Company
disclaims any intent or obligations to update these forward-looking statements.
-MORE-
2
FORWARD AIR CORPORATION REPORTS 100% INCREASE IN FIRST QUARTER 1999 EARNINGS PER
SHARE
Page 2
April 15, 1999
FORWARD AIR CORPORATION
CONDENSED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share data)
Three Months Ended
-----------------------
3/31/99 3/31/98
-------- --------
Operating revenue $ 37,728 $ 28,850
Operating expenses:
Purchased transportation 16,229 12,374
Salaries, wages and employee benefits 8,722 7,196
Operating leases 2,126 1,540
Depreciation and amortization 1,199 954
Insurance and claims 340 780
Other operating expenses 3,637 3,221
-------- --------
32,253 26,065
-------- --------
Income from operations 5,475 2,785
Other income (expense), net (414) (200)
-------- --------
Income from continuing
operations before income taxes 5,061 2,585
Income taxes 1,961 1,020
-------- --------
Income from continuing operations 3,100 1,565
Income from discontinued
operations, net of taxes -- 676
-------- --------
Net income $ 3,100 $ 2,241
======== ========
Income per share:
Basic
Income from continuing operations $ .25 $ .13
Income from discontinued operations -- .06
-------- --------
Net income $ .25 $ .19
======== ========
Diluted
Income from continuing operations $ .24 $ .12
Income from discontinued operations -- .06
-------- --------
Net income $ .24 $ .18
======== ========
Weighted average shares outstanding
Basic 12,629 12,152
Diluted 13,123 12,764
FORWARD AIR CORPORATION
OPERATING DATA (UNAUDITED)
Three Months Ended
-------------------
3/31/99 3/31/98
------- -------
Average system pounds per week (in thousands) 17,701 13,592
Number of Terminals:
Company 56 55
Agent 12 7
------ ------
Total 68 62
====== ======
Average Tractors:
Company 73 94
Owner-Operator 314 212
------ ------
Total 387 306
====== ======
Average Trailers 873 644
-END-