Exhibit 99.1
Forward Air Corporation Reports Record
Third Quarter 2005 Results; 17.9% Revenue Growth; 22.0% Operating
Margin; 40.7% Fully Diluted EPS Growth
GREENEVILLE, Tenn.--(BUSINESS WIRE)--Oct. 25, 2005--Forward Air
Corporation (NASDAQ:FWRD) today reported record results for the third
quarter ended September 30, 2005.
Operating revenue for the quarter ended September 30, 2005
increased 17.9% to a record $84.8 million from $71.9 million for the
same quarter in 2004. Income from operations was $18.7 million,
compared with $13.8 million in the prior-year quarter, an increase of
35.5%. As a percent of operating revenue, income from operations
improved to 22.0% from 19.2% in 2004. Net income during the period
increased 34.4% to $12.1 million from $9.0 million in the prior-year
quarter. Diluted income per share from operations for the third
quarter of 2005 was $0.38 compared with $0.27 in the prior-year
quarter, an increase of 40.7%.
Operating revenue for the nine months ended September 30, 2005
increased 13.3% to $231.9 million from $204.6 million for the same
period in 2004. Income from operations was $48.8 million, compared
with $37.9 million in the prior-year period, an increase of 28.8%. As
a percent of operating revenue, income from operations improved to
21.1% for the first nine months of 2005 from 18.5% in 2004. Pre-tax
income for the period increased to $52.1 million from $38.6 million in
the previous period. Pre-tax income during the first nine months of
2005 includes a $1.4 million ($0.9 million after-tax or $0.03 per
diluted share) gain from a lawsuit settled during the second quarter.
Net income during the period increased 34.6% to $32.7 million from
$24.3 million in the prior-year period. Diluted income per share from
operations for the first nine months of 2005 was $1.00 compared with
$0.74 in the prior-year period, an increase of 35.1%.
Commenting on the Company's third quarter 2005 results, Bruce A.
Campbell, President and CEO, said, "Forward Air is pleased to report
another record quarter for our company, an uninterrupted trend that
began ten quarters ago. We continue to experience strong growth in the
airport-to-airport portion of our business with revenue increasing
over 20% in the third quarter. Our results, coupled with our recent
listing on Forbes magazine's annual listing of the "200 Best Small
Companies" in America for the seventh year in a row, demonstrate the
exceptional performance and customer-focus of our entire team."
Commenting further on the third quarter and nine-month period 2005
results, Andrew C. Clarke, Senior Vice President and CFO, said,
"During the third quarter, the Company completed its previously
authorized 3.0 million share buyback program by repurchasing
approximately 660,000 shares. Since inception, the Company spent $72.6
million on the stock buyback program."
Review of Financial Results
Forward Air will hold a quarterly conference call to discuss third
quarter 2005 results on Wednesday, October 26, 2005, at 9:00 a.m. EDT.
The Company's conference call will be available online at
www.forwardair.com or by dialing 800-841-9385. 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 81 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 air freight or when air transportation is not
economical.
FORWARD AIR CORPORATION
Condensed Statements of Income (Unaudited)
(In thousands, except per share data)
Three months ended Nine months ended
-------------------- -----------------------
9/30/05 9/30/04 (a) 9/30/05 9/30/04 (a)
-------------------- -----------------------
Operating revenue $84,841 $71,905 $231,861 $204,618
Operating expenses:
Purchased transportation 35,512 30,568 94,994 85,487
Salaries, wages and
employee benefits 17,486 15,609 49,305 45,392
Operating leases 3,448 3,279 10,159 9,731
Depreciation and
amortization 2,815 1,692 6,637 5,088
Insurance and claims 841 1,297 3,862 4,546
Other operating expenses 6,070 5,653 18,063 16,428
-------------------- -----------------------
Total operating expenses 66,172 58,098 183,020 166,672
-------------------- -----------------------
Income from operations 18,669 13,807 48,841 37,946
Other income, net 563 291 3,271 661
-------------------- -----------------------
Pre-tax income 19,232 14,098 52,112 38,607
Income taxes 7,167 5,086 19,400 14,280
-------------------- -----------------------
Net income $12,065 $ 9,012 $ 32,712 $24,327
==================== =======================
Income per share:
Basic $ 0.38 $ 0.28 $ 1.02 $ 0.75
Diluted $ 0.38 $ 0.27 $ 1.00 $ 0.74
Weighted average shares
outstanding:
Basic 31,353 32,346 32,031 32,285
Diluted 32,048 32,988 32,621 32,888
FORWARD AIR CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
9/30/05 12/31/04
----------- -----------
(Unaudited) Audited (b)
Assets:
Cash and short-term investments $ 78,331 $ 111,678
Other current assets 55,163 47,744
Property and equipment, net 37,331 37,286
Other assets 28,833 17,845
------------ ----------
Total assets $ 199,658 $ 214,553
============ ==========
Liabilities and Shareholders' Equity:
Current liabilities 27,715 25,657
Long-term obligations 7,072 7,893
Shareholders' equity 164,871 181,003
------------ ----------
Total liabilities and shareholders' equity $ 199,658 $ 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, Greeneville
Andrew C. Clarke, 423-636-7000
aclarke@forwardair.com