EXHIBIT 99.1
Forward Air Corporation Reports Record Third Quarter Results;
EPS up 41.4% on Revenue Growth of 18.8%
GREENEVILLE, Tenn.--(BUSINESS WIRE)--xx--Forward Air Corporation
(Nasdaq/NM:FWRD), recently chosen by Forbes Magazine as one of the "200 Best
Small Companies" for the sixth consecutive year, today reported record results
for the third quarter ended September 30, 2004. The Company is a leading
high-service-level contractor to the air cargo industry providing time-definite
service in the United States and Canada.
Operating revenue for the quarter ended September 30, 2004 increased 18.8%
to $71.9 million compared with $60.5 million for the same quarter in 2003.
Income from operations for the quarter increased 38.0% to $13.8 million from
$10.0 million in the prior-year quarter. Net income for the quarter increased
42.9% to $9.0 million from $6.3 million in the prior-year quarter. Diluted
income per share for the quarter was $0.41, an increase of 41.4%, compared with
$0.29 in the prior-year quarter.
Operating revenue for the nine months ended September 30, 2004 was $204.6
million compared with $176.3 million for the same period in 2003, an increase of
16.1%. Income from operations for the period was $37.9 million, an increase of
32.5%, compared with $28.6 million in the prior-year period. Net income for the
first nine months of 2004 was $24.3 million, an increase of 34.3%, compared with
$18.1 million in the prior-year period. Diluted income per share for the period
was $1.11, an increase of 32.1%, compared with $0.84 in the prior-year period.
Commenting on the Company's third quarter results, Bruce A. Campbell,
President and CEO said, "I am pleased to report another quarter of record
revenue and earnings results on behalf of all Forward Air employees and
independent contractors. We continue to have success in producing accelerating
revenue growth and driving improved bottom line results. Our operating margin of
19.2% in the third quarter of 2004 was the best third quarter in the Company's
history."
Review of Financial Results
Forward Air Corporation will hold a quarterly conference call to discuss
third quarter 2004 results on Wednesday, October 27, 2004, at 9:00 a.m. EDT. The
Company's 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 the
aforementioned website beginning shortly after completion of the live call.
FORWARD AIR CORPORATION
Condensed Statements of Income (Unaudited)
(In thousands, except per share data)
Three months ended Nine months ended
------------------ -----------------
9/30/04 9/30/03 9/30/04 9/30/03
------------------ -----------------
Operating revenue $71,905 $60,513 $204,618 $176,333
Operating expenses:
Purchased transportation 30,568 25,519 85,487 74,174
Salaries, wages and employee
benefits 15,609 13,464 45,392 39,886
Operating leases 3,279 3,250 9,731 9,625
Depreciation and amortization 1,692 1,888 5,088 5,440
Insurance and claims 1,297 1,508 4,546 4,140
Other operating expenses 5,653 4,865 16,428 14,461
------------------ -----------------
58,098 50,494 166,672 147,726
------------------ -----------------
Income from operations 13,807 10,019 37,946 28,607
Other income, net 291 107 661 375
------------------ -----------------
Pre-tax income 14,098 10,126 38,607 28,982
Income taxes 5,086 3,797 14,280 10,869
------------------ -----------------
$ 9,012 $ 6,329 $ 24,327 $ 18,113
================== ==================
Net income
Income per share:
Basic $ 0.42 $ 0.30 $ 1.13 $ 0.85
Diluted $ 0.41 $ 0.29 $ 1.11 $ 0.84
Weighted average shares
outstanding:
Basic 21,564 21,341 21,523 21,279
Diluted 21,992 21,782 21,925 21,671
FORWARD AIR CORPORATION
Condensed Balance Sheet
(In thousands)
9/30/04 12/31/03
--------- -----------
Assets: Unaudited Audited (a)
Cash and short-term investments $104,336 $ 86,539
Other current assets 46,264 36,627
Property and equipment, net 32,810 32,912
Other assets 17,846 19,009
--------- -----------
Total assets $201,256 $ 175,087
========= ===========
Liabilities and shareholders' equity:
Current liabilities $ 22,587 $ 20,290
Long-term obligations 9,762 7,089
Shareholders' equity 168,907 147,708
--------- -----------
Total liabilities and shareholders' equity $201,256 $ 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
Andrew C. Clarke, 423-636-7000
www.forwardair.com