Exhibit 99.1
Forward Air Corporation Reports Record Results During First Quarter 2004
GREENEVILLE, Tenn.--(BUSINESS WIRE)--April 27, 2004--Forward Air
Corporation (Nasdaq/NM:FWRD):
-- Revenue Growth of 13.6%
-- Net Income Growth of 25.9%
Forward Air Corporation (Nasdaq/NM:FWRD) today reported record
results for the first quarter ended March 31, 2004. 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, 2004 increased
13.6% to $64.3 million from $56.6 million for the same quarter in
2003. Pre-tax income increased 25.3% to $10.9 million compared with
$8.7 million in the prior-year quarter. Net income for the first
quarter of 2004 increased 25.9% to $6.8 million versus $5.4 million in
the prior-year quarter. Diluted earnings per share from operations for
the first quarter of 2004 grew 24.0% to $0.31 compared with $0.25 in
the prior-year quarter.
Commenting on the Company's first quarter results, Bruce A.
Campbell, President and Chief Executive Officer, said "We continue to
see strength in all areas of our business led by the impressive
efforts of the entire Forward Air team. The airport-to-airport network
delivered nearly 12.0% growth while our logistics and other revenue
grew by over 13.0% and 37.0%, respectively. Our focus on profitable
revenue growth helped drive net income up nearly 26.0% for the quarter
and produced a 160 basis point expansion in operating margins versus
last year."
Review of Financial Results
Forward Air Corporation will hold a conference call to discuss
first quarter 2004 results on Wednesday, April 28, 2004, at 9:00 a.m.
EDT. The conference call will be available online at
www.forwardair.com or by dialing 877-888-3490. A replay of the
conference call will be available at www.forwardair.com beginning
shortly after the completion of the live call.
FORWARD AIR CORPORATION
Condensed Statements of Income (Unaudited)
(In thousands, except per share data)
Three months ended
-------------------
3/31/04 3/31/03
--------- --------
Operating revenue $64,303 $56,646
Operating expenses:
Purchased transportation 26,994 23,957
Salaries, wages and employee benefits 14,673 12,998
Operating leases 3,262 3,086
Depreciation and amortization 1,699 1,777
Insurance and claims 1,423 1,324
Other operating expenses 5,517 4,933
--------- --------
53,568 48,075
--------- --------
Income from operations 10,735 8,571
Other income, net 163 125
--------- --------
Pre-tax income 10,898 8,696
Income taxes 4,090 3,261
--------- --------
Net income $6,808 $5,435
========= ========
Income per share:
Basic $0.32 $0.26
Diluted $0.31 $0.25
Weighted average shares outstanding:
Basic 21,510 21,227
Diluted 21,881 21,595
FORWARD AIR CORPORATION
Condensed Balance Sheet
(In thousands)
3/31/04 12/31/03
---------- ------------
Assets: Unaudited Audited (a)
Cash and short-term investments $93,349 $86,539
Other current assets 37,109 36,627
Property and equipment, net 34,169 32,912
Other assets 19,067 19,009
---------- ------------
Total assets $183,694 $175,087
========== ============
Liabilities and shareholders' equity:
Current liabilities $20,950 $20,290
Long-term obligations 7,899 7,089
Shareholders' equity 154,845 147,708
---------- ------------
Total liabilities and shareholders' equity $183,694 $175,087
========== ============
(a) Taken from audited financial statements, which are not presented
in their entirety.
Important Information
This press release contains "forward-looking statements," as
defined in Section 27A of the Securities Act of 1933, as amended (the
"Securities Act"), and Section 21E of the Securities Exchange Act of
1934, as amended (the "Exchange Act"). Forward-looking statements are
statements other than historical information or statements of current
condition and relate to future events or our future financial
performance. Some forward-looking statements may be identified by use
of such terms as "believes," "anticipates," "intends," "plans,"
"estimates," "projects" or "expects." Such forward-looking statements
involve known and unknown risks, uncertainties and other factors that
may cause our actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
The following is a list of factors, among others, that could cause
actual results to differ materially from those contemplated by the
forward-looking statements: economic factors such as recessions,
inflation, higher interest rates and downturns in customer business
cycles, our inability to maintain our historical growth rate because
of a decreased volume of freight moving through our network or
decreased average revenue per pound of freight moving through our
network, increasing competition and pricing pressure, surplus
inventories, loss of a major customer, the creditworthiness of our
customers and their ability to pay for services rendered, our ability
to secure terminal facilities in desirable locations at reasonable
rates, the inability of our information systems to handle an increased
volume of freight moving through our 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 our 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. We undertake no obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
CONTACT: Forward Air Corporation, Greeneville
Andrew C. Clarke, 423-636-7000