Exhibit 99.1
Forward Air Corporation Reports Record Second Quarter Results - EPS up over 20%
GREENEVILLE, Tenn.--(BUSINESS WIRE)--July 24, 2003--Forward Air
Corporation (Nasdaq/NM:FWRD) today reported results for the second
quarter ended June 30, 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.
Income from operations for the quarter ended June 30, 2003
increased 17.6% to $10.0 million, compared with $8.5 million in the
prior-year quarter. Operating revenue increased 5.0% to $59.2 million
from $56.4 million for the same quarter in 2002. As a percent of
operating revenue, operating income for the quarter increased to 16.9%
versus 15.1% in the same quarter last year. Net income increased 18.9%
to $6.3 million compared with $5.3 million in the prior-year quarter.
Diluted earnings per share for the second quarter of 2003 increased
20.8% to $0.29 compared with $0.24 in the prior-year quarter.
Income from operations for the six months ended June 30, 2003
increased 14.1% to $18.6 million, compared with $16.3 million in the
prior-year period. Operating revenue increased 5.9% to $115.8 million
from $109.3 million for the same period in 2002. As a percent of
operating revenue, operating income was 16.0% versus 14.9% in the same
period last year. Net income increased 15.7% to $11.8 million compared
with $10.2 million in the prior-year period. Diluted earnings per
share for the six months of 2003 increased 17.4% to $0.54 compared
with $0.46 in the prior-year period.
"Our revenue and earnings this quarter are the best we've produced
during any second quarter in our history, a result of the efforts of
our people. We continue to face a competitive environment and an
uncertain economy, but our focus remains the same - profitable growth.
Revenue from the airport-to-airport network grew 4.7%, driven by
increases in both tonnage and yield. Logistics revenue, however,
decreased by 2.6% as the Company eliminated business that did not meet
profit expectations," commented Bruce A. Campbell, President and Chief
Operating Officer.
Review of Financial Results
The Company will hold a conference call to discuss second quarter
results on Friday, July 25, 2003, at 9:00 a.m. EDT. Interested parties
may participate in the call by dialing (877) 461-2814. 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 Six months ended
------------------ ------------------
6/30/03 6/30/02 6/30/03 6/30/02
------------------ ------------------
Operating revenue $59,174 $56,355 $115,820 $109,252
Operating expenses:
Purchased transportation 24,698 24,418 48,655 46,783
Salaries, wages and employee
benefits 13,424 12,226 26,422 24,181
Operating leases 3,289 2,977 6,375 5,989
Depreciation and amortization 1,775 1,881 3,552 3,766
Insurance and claims 1,308 1,445 2,632 2,790
Other operating expenses 4,663 4,916 9,596 9,461
------------------ ------------------
49,157 47,863 97,232 92,970
------------------ ------------------
Income from operations 10,017 8,492 18,588 16,282
Other income, net 143 135 268 243
------------------ ------------------
Income before income taxes 10,160 8,627 18,856 16,525
Income taxes 3,811 3,278 7,072 6,280
------------------ ------------------
Net income $6,349 $5,349 $11,784 $10,245
================== ==================
Income per share:
Basic $0.30 $0.25 $0.55 $0.47
Diluted $0.29 $0.24 $0.54 $0.46
Weighted average shares
outstanding:
Basic 21,276 21,762 21,251 21,725
Diluted 21,664 22,295 21,629 22,290
FORWARD AIR CORPORATION
Condensed Balance Sheet
(In thousands)
6/30/03 12/31/02
-------- ---------
Assets: Unaudited Audited(a)
Cash and short-term investments $ 66,765 $ 53,916
Other current assets 36,031 34,858
Property and equipment, net 35,862 37,173
Other assets 19,286 19,564
-------- ---------
Total assets $157,944 $ 145,511
======== =========
Liabilities and shareholders' equity:
Current liabilities $ 17,277 $ 18,690
Long-term obligations 9,550 8,475
Shareholders' equity 131,117 118,346
-------- ---------
Total liabilities and shareholders' equity $157,944 $ 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