Exhibit 99.1
Forward Air Corporation Reports Record Results for Second Quarter 2004
GREENEVILLE, Tenn.--(BUSINESS WIRE)--July 27, 2004--Forward Air
Corporation (Nasdaq/NM:FWRD):
-- Revenue Growth of 15.5%
-- Net Income Growth of 34.9%
-- Operating Margin of 19.6%
Forward Air Corporation (Nasdaq/NM:FWRD) today reported record
results for the second quarter ended June 30, 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 June 30, 2004 increased
15.5% to a record $68.4 million from $59.2 million for the same
quarter in 2003. Income from operations increased 34.0% to $13.4
million compared with $10.0 million in the prior-year quarter. As a
percent of operating revenue, income from operations increased 270
basis points to a record 19.6% versus 16.9% last year. Net income for
the second quarter of 2004 increased 34.9% to $8.5 million versus $6.3
million in the prior-year quarter. Diluted income per share for the
second quarter of 2004 grew 34.4% to $0.39 compared with $0.29 in the
prior-year quarter.
Operating revenue for the six months ended June 30, 2004 increased
14.6% to $132.7 million from $115.8 million for the same period in
2003. Income from operations increased 29.6% to $24.1 million compared
with $18.6 million in the prior-year period. As a percent of operating
revenue, income from operations increased 220 basis points to 18.2%
for the first six months of 2004 compared to 16.0% for the same period
in 2003. Net income for the first six months of 2004 increased 29.7%
to $15.3 million versus $11.8 million in the prior-year period.
Diluted income per share for the first six months of 2004 grew 29.6%
to $0.70 compared with $0.54 in the prior-year period.
Commenting on the Company's second quarter results, Bruce A.
Campbell, President and Chief Executive Officer, said "My
congratulations to the entire Forward Air team for delivering an
outstanding quarter. These results are indicative of the strength of
our people and our service offerings. During the quarter, we produced
the highest quarterly revenue figure in our history and achieved an
all time high operating margin of 19.6%. The airport-to-airport
network grew at nearly 15%, while logistics and accessorial revenue
increased by approximately 29% and 12%, respectively."
Review of Financial Results
Forward Air Corporation will hold a conference call to discuss
second quarter 2004 results on Wednesday, July 28, 2004, at 9:00 a.m.
EDT. The conference call will be available online at
www.forwardair.com or by dialing (888) 665-6553. 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 Six months ended
------------------ ------------------
6/30/04 6/30/03 6/30/04 6/30/03
------------------ ------------------
Operating revenue $68,410 $59,174 $132,713 $115,820
Operating expenses:
Purchased transportation 27,925 24,698 54,919 48,655
Salaries, wages and employee
benefits 15,110 13,424 29,783 26,422
Operating leases 3,191 3,289 6,453 6,375
Depreciation and amortization 1,696 1,775 3,395 3,552
Insurance and claims 1,827 1,308 3,249 2,632
Other operating expenses 5,257 4,663 10,776 9,596
------------------ ------------------
55,006 49,157 108,575 97,232
------------------ ------------------
Income from operations 13,404 10,017 24,138 18,588
Other income, net 208 143 371 268
------------------ ------------------
Pre-tax income 13,612 10,160 24,509 18,856
Income taxes 5,104 3,811 9,194 7,072
------------------ ------------------
Net income $8,508 $6,349 $15,315 $11,784
================== ==================
Income per share:
Basic $0.40 $0.30 $0.71 $0.55
Diluted $0.39 $0.29 $0.70 $0.54
Weighted average shares
outstanding:
Basic 21,497 21,276 21,503 21,251
Diluted 21,798 21,664 21,779 21,629
FORWARD AIR CORPORATION
Condensed Balance Sheet
(In thousands)
6/30/04 12/31/03
--------- ------------
Assets: Unaudited Audited (a)
Cash and short-term investments $99,866 $86,539
Other current assets 40,399 36,627
Property and equipment, net 32,770 32,912
Other assets 19,093 19,009
--------- ------------
Total assets $192,128 $175,087
--------- ------------
--------- ------------
Liabilities and shareholders' equity:
Current liabilities $20,919 $20,290
Long-term obligations 8,914 7,089
Shareholders' equity 162,295 147,708
--------- ------------
Total liabilities and shareholders' equity $192,128 $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, and
Section 21E of the Securities Exchange Act of 1934, as amended.
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