Exhibit 99.1
Forward Air Corporation Reports Record First Quarter 2005 Results
GREENEVILLE, Tenn.--(BUSINESS WIRE)--April 26, 2005--Forward Air
Corporation (NASDAQ:FWRD):
-- 8.1% Revenue Growth
-- 19.2% Operating Margin
-- 28.6% Fully Diluted EPS Growth
Forward Air Corporation (NASDAQ:FWRD) today reported record
results for the first quarter ended March 31, 2005.
Operating revenue for the quarter ended March 31, 2005 increased
8.1% to a record $69.5 million from $64.3 million for the same quarter
in 2004. Income from operations was $13.4 million, compared with $10.7
million in the prior-year quarter, an increase of 25.2%. As a percent
of operating revenue, income from operations expanded to 19.2% during
the quarter from 16.7% in 2004. Net income during the period increased
27.9% to $8.7 million from $6.8 million in the prior-year quarter.
Diluted income per share from operations for the first quarter of 2005
was $0.27 compared with $0.21 in the prior-year quarter, an increase
of 28.6%.
Commenting on the Company's first quarter 2005 results, Bruce A.
Campbell, President and CEO, said, "Congratulations to the Forward Air
team for their performance in the first quarter. Revenue growth was
led by 8.0% growth in our airport-to-airport network and more than
15.0% growth in our logistics business. Our people worked hard to
bring more income to the bottom line, which produced income per share
growth of nearly 29.0% and a record operating income margin of 19.2%.
We are encouraged by the positive yield trends we saw in our
airport-to-airport network primarily the result of a March 1 rate
increase. We believe this increase was an important step in
positioning us for the balance of 2005 and will allow us to focus 100%
of our energy on providing industry-leading service and value to our
customers."
Review of Financial Results
Forward Air will hold a quarterly conference call to discuss first
quarter 2005 results on Wednesday, April 27, 2005, at 9:00 a.m. EDT.
The Company's conference call will be available online at
www.forwardair.com or by dialing 800-474-8920. A replay of the
conference call will be available at www.forwardair.com beginning
shortly after the completion of the live call.
About Forward Air
Forward Air is a high-service-level contractor to the air cargo
industry providing time-definite ground transportation services
through a network of 80 terminals located on or near major airports in
the United States and Canada. The Company provides these services as a
cost-effective alternative to air transportation of cargo that must be
delivered at a specific time but is relatively less time-sensitive
than traditional airfreight or when air transportation is not
economical.
FORWARD AIR CORPORATION
Condensed Statements of Income (Unaudited)
(In thousands, except per share data)
Three months ended (a)
----------------------
3/31/05 3/31/04
----------------------
Operating revenue $69,533 $64,303
Operating expenses:
Purchased transportation 28,479 26,994
Salaries, wages and employee benefits 15,452 14,673
Operating leases 3,336 3,262
Depreciation and amortization 1,853 1,699
Insurance and claims 1,182 1,423
Other operating expenses 5,850 5,517
---------- ---------
Total operating expenses 56,152 53,568
---------- ---------
Income from operations 13,381 10,735
Other income, net 518 163
---------- ---------
Pre-tax income 13,899 10,898
Income taxes 5,206 4,090
---------- ---------
Net income $ 8,693 $ 6,808
========== =========
Income per share:
Basic $ 0.27 $ 0.21
Diluted $ 0.27 $ 0.21
Weighted average shares outstanding:
Basic 32,293 32,265
Diluted 32,729 32,822
FORWARD AIR CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
3/31/05 12/31/04
------------ ------------
(Unaudited) Audited (b)
Assets:
Cash and short-term investments $ 116,862 $ 111,678
Other current assets 42,828 47,744
Property and equipment, net 35,488 37,286
Other assets 17,857 17,845
------------ -----------
Total assets $ 213,035 $ 214,553
============ ===========
Liabilities and Shareholders' Equity:
Current liabilities 18,139 25,657
Long-term obligations 7,783 7,893
Shareholders' equity 187,113 181,003
------------ -----------
Total liabilities and shareholders' equity $ 213,035 $ 214,553
============ ===========
(a) Income per share has been restated to give effect to a
three-for-two stock split declared in February 2005.
(b) 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
aclarke@forwardair.com