Exhibit 99.1
Forward Air Corporation Reports Record
Fourth Quarter and Fiscal Year 2003 Results
GREENEVILLE, Tenn.--(BUSINESS WIRE)--Feb. 9, 2004--Forward Air
Corporation (Nasdaq/NM:FWRD) today reported record results for the
fourth quarter and year ended December 31, 2003. The Company is a
leading high-service-level contractor to the air cargo industry
providing time-definite services in the United States and Canada.
Operating revenue for the quarter ended December 31, 2003
increased 9.8% to $65.2 million from $59.4 million for the same
quarter in 2002. Pre-tax income was $11.7 million, compared with $10.3
million in the prior-year quarter. Excluding items that were unusual
in nature, as discussed below, pre-tax income was $8.4 million in the
fourth quarter of 2002. Net income for the fourth quarter of 2003 was
$7.7 million compared with $6.8 million in the prior-year quarter
($5.6 million excluding unusual items). Diluted earnings per share
from operations for the fourth quarter of 2003 were $0.35 compared
with $0.31 in the prior-year quarter ($0.26 excluding unusual items).
Operating revenue for the year ended December 31, 2003 increased
6.8% to $241.5 million from $226.1 million in 2002. Pre-tax income for
2003 was $40.7 million compared with $34.2 million in the prior year.
Excluding items that were unusual in nature, pre-tax income was $32.3
million in 2002. Net income for 2003 was $25.8 million compared with
$21.6 million in the prior year ($20.4 million excluding unusual
items). Diluted earnings per share for 2003 were $1.19 compared with
$0.98 in 2002 ($0.92 excluding unusual items).
Fourth quarter and fiscal year 2002 earnings included the
following unusual items: pre-tax income of $1.3 million ($0.04
after-tax per diluted share) from a favorable litigation settlement
and pre-tax income of $1.3 million ($0.04 after-tax per diluted share)
from a favorable premium adjustment offset, in part, by net pre-tax
expense of $0.7 million ($0.02 after-tax per diluted share) relating
to real estate and financing activities.
Commenting on the Company's fourth quarter and year-end results,
Bruce A. Campbell, President and Chief Executive Officer, said "We are
proud to report record financial results for the fourth quarter and
fiscal 2003. During the quarter, we experienced strong demand for
services the Company provides, producing approximately 8% revenue
growth in our airport-to-airport offering and nearly 4% revenue growth
in our dedicated logistics business. The Company expanded its fourth
quarter operating margin to 17.8%, its highest level in three years,
by remaining focused on profitable growth."
Earnings Call Information
Forward Air Corporation will hold its quarterly conference call to
discuss third quarter results on Tuesday, February 10, 2004, 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, February 10, with the replay beginning shortly after the
completion of the live call. Additionally, interested parties may
participate in the call by dialing 877-461-2816.
FORWARD AIR CORPORATION
Condensed Statements of Income (Unaudited)
(In thousands, except per share data)
Three months ended Year ended
-------------------- --------------------
12/31/03 12/31/02 12/31/03 12/31/02
--------- --------- --------- ---------
Operating revenue $ 65,184 $ 59,373 $ 241,517 $ 226,072
Operating expenses:
Purchased
transportation 27,889 26,824 102,063 99,319
Salaries, wages and
employee benefits 14,382 13,195 54,267 50,368
Operating leases 3,477 3,259 13,102 12,250
Depreciation and
amortization 1,823 1,846 7,263 7,461
Insurance and claims 1,014 (249) 5,153 3,868
Other operating
expenses 5,023 5,257 19,487 20,069
--------- --------- --------- ---------
53,608 50,132 201,335 193,335
--------- --------- --------- ---------
Income from operations 11,576 9,241 40,182 32,737
Other income, net 153 1,037 529 1,421
--------- --------- --------- ---------
Pre-tax income 11,729 10,278 40,711 34,158
Income taxes 4,027 3,468 14,896 12,542
--------- --------- --------- ---------
Net income $ 7,702 $ 6,810 $ 25,815 $ 21,616
========= ========= ========= =========
Income per share:
Basic $ 0.36 $ 0.32 $ 1.21 $ 1.00
Diluted $ 0.35 $ 0.31 $ 1.19 $ 0.98
Weighted average shares
outstanding:
Basic 21,475 21,273 21,327 21,603
Diluted 21,821 21,633 21,707 22,070
FORWARD AIR CORPORATION
Condensed Balance Sheet
(In thousands)
12/31/03 12/31/02
--------- -----------
Assets: Unaudited Audited (a)
Cash and short-term investments $ 86,539 $ 53,916
Other current assets 36,627 34,858
Property and equipment, net 32,912 37,173
Other assets 19,009 19,564
--------- ---------
Total assets $ 175,087 $ 145,511
========= =========
Liabilities and shareholders' equity:
Current liabilities $ 20,290 $ 18,690
Long-term obligations 7,089 8,475
Shareholders' equity 147,708 118,346
--------- ---------
Total liabilities and shareholders' equity $ 175,087 $ 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, 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
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, Greeneville
Andrew C. Clarke, 423-636-7000