Exhibit 99.1
Forward Air Corporation Reports Diluted EPS up 14% and Net Income up
10% During First Quarter 2003
GREENEVILLE, Tenn.--(BUSINESS WIRE)--April 23, 2003--Forward Air
Corporation (Nasdaq/NM:FWRD) today reported results for the first
quarter ended March 31, 2003. The Company is a leading
high-service-level contractor to the air cargo industry providing
time-definite ground transportation services in the United States and
Canada.
Operating revenue for the quarter ended March 31, 2003 increased
7% to $56.6 million from $52.9 million for the same quarter in 2002.
Income from operations increased 10% to $8.6 million, compared with
$7.8 million in the prior-year quarter. As a percent of operating
revenue, income from operations was 15.1% versus 14.7% in the same
quarter last year. Net income increased 10% to $5.4 million compared
with $4.9 million in the prior-year quarter. Diluted earnings per
share for the first quarter of 2003 increased 14% to $0.25 compared
with $0.22 in the prior-year quarter.
Commenting on the Company's first quarter results, Bruce A.
Campbell, President and Chief Operating Officer, said "We are pleased
to report an increase in both revenue and earnings despite the
challenges encountered during the first quarter including an uncertain
economy and bad weather. Our people and our business model continue to
deliver first-class results. We are aggressively executing our
business plan. Our focus is on growing revenue profitably and
enhancing the operating leverage of the airport-to-airport system."
Review of Financial Results
The Company will hold a conference call to discuss first quarter
results on Thursday, April 24, 2003, at 9:00 a.m. EDT. Interested
parties may participate in the call by dialing 888/789-0089.
Additionally, the call is being webcast and can be accessed at Forward
Air's Internet site at www.forwardair.com.
FORWARD AIR CORPORATION
Condensed Statements of Income (Unaudited)
(In thousands, except per share data)
Three months ended
-----------------------
3/31/03 3/31/02
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Operating revenue $56,646 $52,898
Operating expenses:
Purchased transportation 23,957 22,364
Salaries, wages and employee benefits 12,998 11,956
Operating leases 3,086 3,011
Depreciation and amortization 1,777 1,886
Insurance and claims 1,324 1,345
Other operating expenses 4,933 4,546
----------- -----------
48,075 45,108
----------- -----------
Income from operations 8,571 7,790
Other income, net 125 108
----------- -----------
Pre-tax income 8,696 7,898
Income taxes 3,261 3,001
----------- -----------
Net income $5,435 $4,897
=========== ===========
Income per share:
Basic $0.26 $0.23
Diluted $0.25 $0.22
Weighted average shares outstanding:
Basic 21,227 21,686
Diluted 21,595 22,284
FORWARD AIR CORPORATION
Condensed Balance Sheet
(In thousands)
3/31/03 12/31/02
----------- -----------
Assets: Unaudited Audited (a)
Cash and short-term investments $59,098 $53,916
Other current assets 36,269 34,858
Property and equipment, net 36,063 37,173
Other assets 19,451 19,564
----------- -----------
Total assets $150,881 $145,511
=========== ===========
Liabilities and shareholders' equity:
Current liabilities $17,950 $18,690
Long-term obligations 8,963 8,475
Shareholders' equity 123,968 118,346
----------- -----------
Total liabilities and shareholders' equity $150,881 $145,511
=========== ===========
(a) Taken from audited financial statements, which are not
presented in their entirety.
Important Information
This press release 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, fears over the threat of, and actual occurrence of, war and
terrorism, the Company's inability to maintain its historical growth
rate because of a decreased volume of freight moving through the
Company's 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, employment matters
including rising health care costs, enforcement of and changes in
governmental regulations, environmental and tax matters, the handling
of hazardous materials, and the availability and compensation of
qualified independent owner-operators needed to serve the Company's
transportation needs. 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 press
release to reflect events or circumstances occurring after the date of
this press release or to reflect the occurrence of unanticipated
events.
CONTACT: Forward Air Corporation
Andrew C. Clarke, 423/636-7000
www.forwardair.com