FWRD - Earnings call transcript Q1 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Forward Air First Quarter 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Michael Hance, Chief Legal Officer.

Michael Hance

Good morning, and thank you, operator, and thanks, everyone, for joining the call today.

Before we jump in, I just wanted to take a moment to thank our teammates, customers and shareholders, many of whom are on the call today for the incredible support over the last several months as I served as Interim CEO. In particular, I want to acknowledge the employees and independent contractors and drivers who have been and continue to work tirelessly to provide best-in-class service to our customers and make this combination that we're working on the success.

you work. I what for so by hard your humbled do, am and grateful I'm you. Thank quarter, Last while you Forward to to told I through and provide CEO as work the was Omni. interim appropriate integration leadership the our continue that teams of my mandate promptly company and At same during phase our growth on the Board's top-quality CEO committee was dedicated next the a search to development. our focused time, identifying run the of the couldn't work outcome. is with done, more That personally be I pleased and

introduce The I'm Stewart a began of and has operational and our industry to drive confident Shawn thrilled you Forward track future successfully demonstrated to who delivering a growth, leader are conducted Forward's his this to inside of Shawn success. CEO and on advisers right profitability. excellence knows record is thorough and out tenure Board as search April the XX. and He

deeply personally know the commitment. As as Chief who our Forward company's my role I and cares an Legal hits that share teammates Shawn of the ensuring as Officer I'm veteran Secretary. XX-year ground return to to And about success, all I a same running committed

turbulence by and bumpy these have recognize I'll as that freight within the past months we few reiterating close our we company. navigated in market been

remarks Our united to me turn team and and Rebecca us, ahead. is all us that, confident Shawn runs numbers. please allow Shawn? it his that we energized for opportunities are before is through behind to With by the the over

Shawn Stewart

I But the new just a I the this critical about sure as I'm welcome let words provided couldn't warm excited that juncture. Monday. to Michael, and and my won't you've details call those thank role as I who at all encouragement you, you press seen more have ago, forward go more on be background Thank to me join week of my a say into assume release.

in global market moment and round the of you leverage we with others provide supply enhancing financial about to the paves services. become the our while to chain a results. new LTL leader way the going company for expedited Omni in capabilities to pass as Rebecca I'm addition The a best-in-class details to call our

been than except that say results not are that the rest going year. too Given indicative you from less weeks, speak X here to will us I'm to not I've of the what of much, see these

are and We headed from this up day. onward

I also keep is of want I share QX think the to to performance, context important the mind. view which my about company's in

impacted X Our headwinds. results by first really negatively tough were quarter

were freight in results weak generated these environment. a First,

these of challenging results know don't have I'm Omni of the that much probably riding the Second, to convinced on that to distraction roller else. reflect the the up leading coaster closing here, wasn't but the I coaster people aren't the roller a transaction. focused impact to you write circumstances by

months performance. leading closing, more Since forward that job think downs synergies, But of our great are ups behind to to a Michael think hear later. which now. distraction Thankfully, really done unrealistic the about it's us will the pushing capturing I and companies is X with you that have in and the and team QX reflected closing integrating

to start is mentioned, commit Ford's to but it I me I today, X talking about for numbers, As premature want things. to

opportunities focused significant structure. capture give but our are ready we to quarter, be will need call here. the at with second and on we the I synergy team, costs before First, you eliminate the I can days to time we a When believe talking earlier, about results different identifying show end more you significant in my are of bit are on are up as that said little back tell from targets, first improvement. I we headed that we accelerating I this from

to going in and financial expect our our are space with us category issues, a corresponding address aggressively results. leader I and to profitability urgently be fully We

our ensure communication. going are to are and we enhance Second, that investor to comprehensive communications our with we clear, data and transparent

to next with the steady over couple improvement expect flow you providing and in you quarters, the You information of that need see financial should want. information

of our with earnings commitments, my about full we and am release, will I and I'm opportunity. I guidance the Starting provide own things quarter And I information Forward Why I accepting path to like confident a did before year about our found diligence about. second excited these XXXX achievement. number that because

is people. this great of First, made organization

I've Forward During these pleased people quality first I've Omni and find legacy met to weeks And X on dedication the the been business. the and been of with that a throughout impressed job, change, our customer and share of the a people will service. growth. DNA strong these for not providing will commitment and excellent serve That common foundation quality as businesses I've our of

Second, can't I this stress enough.

this areas of Forward result success, long-term of now has unique its and current combination, very are As underperformance and a addressable. growth and platform an incredible for

we platform. have Omni In with business, about a of we cargo U.S. premium the core Remember, to claims Let's true to now X.XX%. best-in-class the LTL an on-time percentage LTL the of service network a the chain run in supply network. global talk our legacy ratio XX.X% add and network

the a capabilities, business of We a technology substantial company. combined from global are XXX see of were Fortune starting synergies to awarded Because we the of revenue our assets. recently of volume power these

the to are We contract finalizing we start expect and June. in now, business the

of to existing We from Also, sales gain advanced stages business new have similar we in wins pipeline. opportunities continue customers. our the

generate revenue we contract with renewed historical that its annualized As a an trends. example, our legacy XX of one Xx top will customers recently Forward an

first intermodal in about in of rest freight logos All the XX new added quarter. this the makes our tough the year. environment, optimistic me team Additionally, a

X channels. our strength of is point Another and attractive spanning our base broad customer distinct commercial

of to support. and customers Let to me pause thank your our for say all you business

including legacy porters, growth Under clear. my channels, X freight customers, we be and to remain in want Forward XPLs. to but plan committed leadership, to all I drive airlines We our

services to the grow them to premium continuing business. with to enable to committing are We provide LTL our them

that We since and have customers same to continue closing, provide we key will these commitment great with that honored service.

its has great with services Omni job Omni name around I for [indiscernible]. strong will customers one. warehouse review, diligence provides solutions them with a I record a track that value-added critical the providing of world. does my found and In

the are on We on quarter's by In high-level and will customers Those be trust us detailed naturally excited Forward. call. more are at I by is honored comments to next provide placed there thoughts, much like view, my initial [indiscernible]. about my

disclosure addressing will look additional forward progress updates so the soon now, providing on the press filed focus with and run made of through will the be integration. and energy performance this of update headway. quarter we year, we commitment you slides an the to as even Omni. me I our along more business Rebecca? on financial all update demonstrate some performance of that, to Rebecca integration Right and the provide turn it Rebecca let providing and our enhanced time. the make and With renewed my over to release Hopefully, to Omni far

Rebecca Garbrick

Thanks, good morning, everyone. and Shawn,

helpful. read Let's by but I'm certain fourth reference XXXX. start slide number to the by reviewing slides will quarter through when for not slide, by results going

story his to Before the remarks. earnings I Those quarter indicative point reiterate combined of XXXX. a of in numbers, the we the dive the made results power first Shawn about want for numbers our company. I don't believe full are the of what We tell expect potential that into do not remainder that

Let highlight some the me which already touched of a has on. why, reasons Shawn of few

first seasonal quarter the First, trends. year quarter worst the on based is the historical always of for business

Omni market by conditions impacted Next, challenging continue the of in lines quarter, particularly that Brokerage to these and be Truckload results throughout the businesses. persisted Intermodal,

The year. for a led since of conditions those challenging to we customer prior decreased seen market demand have pattern the quarter second the services, that

day our positive continue shipments first trends shipment X.X% in strategies quarter, period our and growth of last revenue the to in business same saw execute with growth of the growth over weight year. we X.X% As less-than-truckload per per we

have We levels positive revenue solid Forward which with experienced been growth. our for has customers, legacy retention

in saw on year fuel, in execute primarily quarter, excluding the and prior per the hundredweight, over first door-to-door solutions. The the the revenue revenue we business per hundredweight, decrease per excluding was mix our shift a we expansion in X.X% the shipment, period. revenue in fuel driven increase fuel the the excluding a as our of decline X.X% During by also

synergy the we our synergies our until and subsequent we results hand. end are $XXX by to impact, QX and $XXX cash revolver on expect at capacity reflect minimal March, of on standpoint, see million quarters fully a the in million end the liquidity Finally, realized had a of From increase a of steady XXXX. the

revolver. to do on We and liquidity, are draw need taking improve the not to foresee actions the all we

earnings quarter's of context We to call. deleveraging full sharing year guidance details to the forward our path about during second look our our XXXX more in

Before our that the would from are the Omni the XX in first quarter. quarter be I end we that through the look acquisition, results to at want closing of the out numbers, January results reflected of the point

Our $XXX first million, the driven year quarter prior year. partially by prior This of an million by to Expedited increase revenue segment, and our as segment. over million $XX of was offset segment of Freight $X or period by quarter incremental million $XXX increase in million XX% the $XXX incremental revenue of revenue from the an first million of by decline Intermodal our generated compared was $XXX generated our Omni

incremental segment $X loss and in EBITDA quarter XX% or loss million million Freight $XX prior in of a operations. as Our year. by decrease segment other and to EBITDA $X the adjusted EBITDA our of was first loss incremental in segment Omni in $X $XX of million, of incremental was million in our $X the loss million of million adjusted EBITDA an Intermodal $XX million of and Expedited the driven decline compared EBITDA This

$XX related Omni established in intangible substantial in quarter first price of amortization onetime million, to was the the a of adjusted We saw assets. operations XXXX. quarter from benefit excluding Acquisition $X other operating accrual of not A reversal purchase amortization XXXX, reported from of allocation an employees year. prior For the incentive $XX million for amortization million income benefit of the to plan compared similar the is acquisition in in first we XXXX. the an of of to the recorded

prior operation We excluding $X.XX to the compared per net loss reported of year. continuing of diluted acquisition on $X.XX a basis, share operations a income amortization share diluted net in continuing adjusted per basis on

flow cash operating for prior fourth $XX compared year to for million million positive negative a a was $XX quarter the period. Our the

quarter $XX the cash of operating Our included for transaction and integration of the first costs million. payment flow

We reoccur the the consider half the a transaction expected not of onetime the in onetime-only first year. to lower be costs that are the to costs these second We integration year and project only result of of costs. as in at our liquidity payment be half to of point a

increased approximately per shipment, same and over day period per to the business. of shipments ahead X% our year Looking increased X% line April, in our last excluding fuel, revenue less-than-truckload our

by Additionally, grew on consolidated March seasonality. that April contraction a shown from has basis, revenue sequentially period historically a X%, versus growth our based on to

announced to and the for serve in will X.X% we The rate increase rate environment went is rate The operating comparable in an our customers with in execution rising same general into capture continue increase was the enable precision expected costs February higher operating in increase and to with the costs. XXXX. XXXX effect us the December with than

these excited creation Now of some and context. business. helpful about which But Omni, Forward's received really outlined look X, value turning combination. for the what on X, what we're on integration And Slide is from opportunity we metrics Slide the is historical On the like hope together to emerging we at companies Omni. key

with pleased are the We on are making integration. progress we

targets August provided As to which have we deliver much in run very on the XX, XXXX. cost $XX will rate see the expect updated targets. you in line now call million of initial synergy XXXX, synergy by cost with We synergies full end of is Slide provided

the have $X of the and We $XX [ less initial with million volumes than million estimate type by LTL to associated synergies. due adjusted ]

basis. pleased first of we $XX delivered million quarter, to an million in to synergies $X.X the and report expect are already that on we've We annualized realize

$XX rest facilities SG&A, optimization, the of actions million area derive synergies to of network in the the expect and brokerage. We from of incremental technology consolidation,

the covenants our With first position, financial the that of to but capital will we the that with remain here, covenants again I as our credit realize have combined integration more outlined XX, highlight March $XXX than regards relevant I as million at our not will terms of Slide on the to Last will synergy quarter. we entity detail cost and of you quarter, see XX, in existing facilities, opportunities. focus continue into liquidity. had our we so We end go our headroom on bank as compliant of

of leverage undertaking committed of operations we we as to In are focus the priorities, of and intend allocation identify X.Xx entity deleverage. net XXXX. capital portfolio Key include our from realization generate a an to by to initiatives structure, are capital profitability We of already our end return combined cash potential of accelerated divestitures. on to synergies review cost derisking terms several the to and well steps the to the as

actively portfolio We take are monetize swift on reviewing to those plan our action assets. and to

that, comments now and operator the turn the With I'll back take to questions. call Operator? to

Operator

[Operator Instructions]

coming Chan is Bruce Stifel. First with from question

Andrew Baxter Cox

what relation what you Forward areas And Cox, Andrew early, be attainable very to in it's feel Bruce. is. square position, for what is can to on done mandate do diligence? found did take the did you to feel you Shawn, here organization? know get Why in improvement you those This want you we this at of up We bring to but you your your

Shawn Stewart

to the potential with you, looked past I companies I true obviously, when coming Andrew, the was the that, bumpiness Thank X for of of transaction. at that also question. of I this honest business. you, together, from great I my opportunity love be Well, the respected saw the And

secondly, And Andrew, love I challenge.

for, draw So that one be acquisition of it's the together can going I'm but know great and true about, a and extremely for this ready excited sure, challenge, I together. bring we to potential this

that's why took so the And opportunity. I

Andrew Baxter Cox

capable follow to debt give with if And be you Great, a Shawn. guys are you the one. how quarter. seeing We up may if creditors, covenants here. Rebecca, forward? know of quick I just wanted you're achieving to willing this could moving know look I the realm had response within any I runway But what just from you they to forward of much

Rebecca Garbrick

about reduction, looked quarter in come as terms XXXX. we Andrew, in Yes. we're our But we in question. profitability, full We've back we'll terms the thanks -- in give talked about, cost for for of of levers talked going pull to guidance divestitures. terms and second asset year of the

we on bank when within to is continue that of all at the we so And believe be which covenants. we'll look our table, that,

will and there no And us be back for our so with need go talk creditors. to

through We're levers, we that So covenant. confident of in terms will continuing on to in we having on focused have the place just now becomes plan in we us and the and Shawn very have from that board. that, headroom feel working -- until we've now those it believe maintenance help a

Operator

our we'll Susquehanna. take next And Majors question Bascome from with

Bascome Majors

bit [ little the a the any results did why? talk change and you the historical Ada figures you of learned out And of that? Can ] about Auto Omni anything of and

Rebecca Garbrick

great Bascome, question. Yes.

call. any that quarter earnings mentioned, earnings of about of it was have audit estimate In our our complete. talked the get we terms through to process fourth It not we -- from progress number changes the on our numbers from quarter fourth preliminary first preliminary was on call, as getting the that audit that We at did more in time.

Bascome Majors

call, on the a you yes, there. and And flow we quarterly of from see mean, noise -- but earnings last I the working talked deal in lot the the there's cash capital statement, can

several that? the On Are service call, that played X ownership. Now And relative of comfortable the much that you about cash How you're you talked flow months to breathing room out? being or for pretty last you first weeks has positive X have? debt do about in. how

Rebecca Garbrick

we X cash service what X Bascome, you're standpoint from to to a liquidity the talk Yes. able weeks being about of -- we we a bit debt. to did as generate right, and saw first

of quite a the bit quarter. about As talked we in earlier, as only cost first we have -- onetime had I

in additional second will and we at to there noise be normalization. year, costs of expect to quarter. We half we the second But some when onetime-only the be that are back we look the gone believe

are second think to free to And to good so and a behind that costs out just that about get pretty get strip positive, I think have feel that. the half we We do I onetime normalization. do costs, us only these of you onetime some once to cash we got flow those

Bascome Majors

at of of guide And the will second a compare I experienced you have you quarter how to but point, those they what magnitude don't this sense the know you onetime flow cash costs in as want do drag the and any last months? few to

Rebecca Garbrick

certainly I the the of ones coming are Yes. think but the not there the in the were of I closing second are acquisition -- right, we that think largest guiding you're quarter. to out first quarter,

the will into So they second quarter. them I and of down quarter, height think paper in are the the first

Bascome Majors

April about typically normal to negative. talked seasonality, being March You

that's So how give super direction. it's Could quantify headed are a we more range that, good you positive that hear just and here? in a seasonal to around

Rebecca Garbrick

Yes.

I think our know it's we positive. -- standpoint, that it's from

a back second year, was where year. March to noise of If April of in look in there you last some bit last was to quarter terms of the from market

So year. back there we conditions I where in say, market terms of little It's I probably terms to would are can this a where are. in of think you reference more, the normalization

like now a that of to between given market to this the favorable March and from as March same see April. sequential in April, we So terms growth are somewhat conditions those the

revenue we lot become of entities. so the the terms our as growth profitable of and between confidence that us gives ability, talked have capture And in synergy a X about, the and

Bascome Majors

that last point. me, for just And clarify to

or You different? has super that Or growth. month-over-month as revenue been that talked follow seasonal well? being profit the with operating income about Does shape

Rebecca Garbrick

of being be call on bottom to would costs. Yes. fixed speak in the able those is that that off terms one to Generally, We're just cover not in revenue. to a think this position line able for on up to revenue

in able be to revenue. the follow expect for call position on would this be the we're not to to profitability to But you the just generally address numbers. a So there

Operator

We'll Group take question from our with next Wolfe Research. Scott

Scott Group

morning. Good Rebecca. you, Shawn Nice and speak with to

The to that So -- there's you're one realized number. been date, $XX much just about different a million it sounds but synergies clarify, following. want to say Rebecca, I just like talking wasn't slides thing I of

So could that? clarify you just

Rebecca Garbrick

If Scott, numbers. through we of maybe question. of kind just good -- look to Yes, sure. slide, this at walk it's some these helpful I want to

is first So million recognized the in what That's the achieved. the rate. annualized million $X.X $XX We already in P&L our run quarter. we've

million in So that recorded is is the $X.X we first $XX be over the would quarter. what XX and months million the

we For be the Does of months year to this to $XX that million. that help XX expect of number first clarify? XXXX,

Scott Group

helpful. That's Yes.

So Omni guidance, think uptick do I know QX synergies positive we're not specific EBITDA in you the getting and you're talking but back gets given the as to about? ramp revenue

Rebecca Garbrick

we're focusing levers a going you being Yes. on for focused pull we on top the are -- and is profitability revenue on that really that QX, recognize cost give us, not in to mentioned, for combined that guidance Scott, to terms we structure. this we cost are structure the can entity, as the but align we growth, generating of for focusing and able priority

X I think as those well as synergies. between so And our

profitability structure but able cost levers we looking think generate between and are as that entity. to only I profitability, combined working think to at think the the I those the So for of growth, I be not all the revenue Omni, the well also for synergies, are actively as

Scott Group

Okay. a ask Maybe try little I'll to differently. it

of need the to in -- of So to -- covenant? obviously, add a there's and backs. stay QX do within that lot you generate within you in expect covenants, a lot under noise EBITDA How stay there's the said Xx stay the much you to

Rebecca Garbrick

but combined second and year the earnings we more have we're as not obviously we call, we the give to full Scott, on we guidance, when what potential -- but believe think the quarter projected to we the of be. out we entity I foresee you guidance Yes. give we'll going said, get

go calculation, we've the test the at time a quarter. the so for -- second second being covenant. those looking in the compliance to we earnings that numbers full headroom, allow on sharing is able our only we we And as and we'll And first the ahead, we will really have be that forward look That reminder, like there's to and to and revolver. quarter officially believe still to just look But headroom numbers year us the we'll financial as call. run guidance feel as run and have that we the more into next access we that feel about we

Scott Group

you then did commentary, March you to And -- sequential that Intermodal, Is -- where at the Omni, April seeing are improvement? everywhere? it that is Expedited, Okay. the see

Rebecca Garbrick

number, all consolidated Yes. That seen have was business. of a lines growth -- but that's a we in

Scott Group

Okay. just last And question. then maybe

today reporting you before. earnings the back the line Omni terms and revenue have its that new amortization, Is haven't has So of our models? and just something in think reported purchase the so way guys you which done this then I own is adding we for structure

Rebecca Garbrick

Yes.

business, with board, like. Shawn And may we're potentially not able now, reporting. think, fit to sees not our how terms views We're could evaluate or speak Scott, segments to not -- may as look of in he right certainly Shawn those I we're to on segment what that the going change.

I standpoint, going will to from back acquisition we add say an plan do forward. amortization that

you on in model. the think But may not think shift of I on or your this go-forward that in segments, a the depending views So how basis. reportable business Shawn I count can terms

Operator

Stephanie with Moore And take from question our Jefferies. next we'll

Stephanie Benjamin Moore

that and Shawn, you're the early comments of revenue synergy some seeing I to on touch captures made the you there. wanted opportunity about just that some

just maybe on from helm So and the you kind obviously, of bit could about [indiscernible] current the at place? some genesis little thoughts integration now in your talk you the synergies of customers of a demand those revenue synergies, and with

Shawn Stewart

Thank Stephanie. you,

it's potential when your not? or So legacy own they future, utilizing asset big you at you and on, decisions obviously, of do Omni what when a And is, look the at start people the here business important make piece. the Forward looking assets is I see have

how into network post pre there here the And utilizing Forward and so international segments we're how business, business. leveraging domestic our and network; major we X international leverage on moving the would say is I a of the two,

Stephanie Benjamin Moore

guess is of I'm you and maybe clarification, guess, for and but this point before, this best get tonnage or what break a that ways The Got normally, sense between taking maybe monthly seasonality out? April, said I you to just historical it. company -- total or that of one the that I trying March it.

Rebecca Garbrick

Yes.

just we I at think, our was is it said between pro and It earnings last on Stephanie, look you contraction. was a what in X year, basis release if that that companies. the forma was XX%, a

So pro that wasn't just on increase That basis. to us Omni number. forma that buying was a

last XX% growth year negative year. it's a this versus X% So

Stephanie Benjamin Moore

Got it. And then just, I guess, another one for me.

little You of color strategic talked more with a review. long-term or Can Omni the not might plan Expedited what the and helpful strategy? the of about be the think terms on might continued of give assets within the a combined businesses? not which focus on do portfolio legacy be us part you Any the color business entity there you in bit part of not

Michael Hance

is give plan beyond Michael. noncore that we really, are divest -- this assets Stephanie, Great that working can't but XXXX. we question. actioning specifics in we aggressively. that, plan And But to are a

Stephanie Benjamin Moore

all be can as will probably focused the that will X we you And on But get Okay. to That's me, in color being -- respects. That XXXX it. point, it we're think imagine, you be provide certainly helpful to -- got said, you I XXXX, in when for on report XQ. then lastly some when more will well as guidance you be helpful. And point, that be months XXXX at know at into we going some year.

potential entity a -- So the be what or multiyear maybe provide a any can kind or were maybe those of view the long-term announced? acquisition was long-term updating some original and least at the numbers update of chance combined that of provided when of

Rebecca Garbrick

give remarks investor in that transparency Yes. Stephanie, mentioned are as community. we Shawn the think looking I to to his

I will to through you And be time, XXXX. certainly to there view large correct. portion are that think could be the able of be opportunity us By for a we so longer-term an give because

see the the table. to to And we that not the with So right shareholder want community value it's combined understand better and entity. to we analyst certainly the view the give off

Operator

our We Christopher Kuhn with will take Benchmark. next from question

Christopher Kuhn

Shawn, welcome to Forward.

Shawn Stewart

sir. you, Thank

Christopher Kuhn

mean, Rebecca, that? year the I change, like last it historical from look have of maybe this gave presentation to you EBITDA the presentation you help didn't me think figures the I said might the but morning. just Can adjustments understand some you you have does

Rebecca Garbrick

Yes.

that to maybe, sure So Chris, I just understand. make

I think the of investor correct? we August gave presentation to you're referring back Is in presentation, the XXXX. in that --

Christopher Kuhn

Yes.

Rebecca Garbrick

so of reporting Yes. conform adjustments public more the a that presentation, non-GAAP a from excluded company. There's to with handful were only for just

And so there's forma It's and just were presentation forward. handful. just the is really a removed same. from that EBITDA exact a everything pro Otherwise, that adjustment carried

Christopher Kuhn

And $XX quarter. the backs that in there's million add to of EBITDA Okay. end,

more in I quarter-to-date You -- out can broke that just that so in $XX out but maybe a little costs, we the transaction know bit you for what's numbers can in maybe what's million, break there's understand there? number? that

Rebecca Garbrick

you to integration have cost severance then there. out transaction is into the costs largest in piece and as right. going is be have pointed and other of that's Yes, -- out, X broken The we $XX that million which, it's numbers, is the really the

this actions would And were integration then combined our be and So our severance this obviously, to costs in transaction P&L. the cost, reduction that enforced entity during incurred acquisition related anything that's that the quarter the taken. that's

with We consider And those. it's be costs. cost nonrecurring the those so to onetime associated only

Christopher Kuhn

Okay.

business And Okay. of LTL business expectations? how hurt know wondering I I that the in then mention or terms the just, Intermodal the the the did core business your you -- how did? But mention network just LTL during I'm on think, business Brokerage core did how you EBITDA. and did the call

Rebecca Garbrick

revenue of line saw in ex volume from from saw fuel, terms our certainly, called the less-than-truckload growth growth. from standpoint, as per core business, saw And some a Yes, some you've our business, of favorability an there. we shipment also certainly standpoint, we operating positive we tax

in sheets would the green throughout reflect business. a to the But in staggered of some GRI we That our did revenue line see less-than-truckload coming quarter.

feel first good we terms in quarter. the So about of really that

Christopher Kuhn

your Yes, expectations? based business, I'm about wondering break that the EBITDA just the just but don't know is -- out, you that I'm just to -- in I'm wondering core compared EBITDA. how I

Rebecca Garbrick

segment. positive positivity didn't We from about we're would the from -- stats, an reflect I break an freight the operating from EBITDA think seeing just We certainly Yes. -- what a the talked certainly, think, Expedited that I that on Chris, But out. standpoint. nature

Christopher Kuhn

your Okay. And hitting does the in markets and but you about feel then the in terms into persist of first just lastly, comfortable quarter, you the leverage synergy rest that reducing and targets? what weak being freight the year? of How the cost your do talked covenants

Rebecca Garbrick

Yes.

can speak those certainly, to So thinking about Chris, ahead covenants. what we Certainly, is can we're we control. as what

taking control costs. can we are out what so And

kind of the combined asset dispositions. of rightsizing control some And We the respects, cost can entity. kind so for right, in

revenue continuing a And difficult it grow now is, revenue But we've be as in the already It Shawn obviously, pointed board. out, a being will bit positive. on have then that's seen of this you April profitability. profitability We to environment. from from

that into see we head as all we so And of the second signs being as quarter. some good

Operator

[Operator Instructions]

our take question Chan We'll next with Stifel. Bruce from

Andrew Baxter Cox

attrition attrition things the plan then what Omni defend force? the been you sales to wanted force as what's just Last you material both can I the know what are there. customer do and said customer the some has guys like wanted address team? again. seeing It's any Omni And you the attrition sales what's of the weren't Andrew to you and force of Omni's the changed against and follow-up, to to on a at attrition. and just can anything sales side. also, And Shawn, on then attrition, I both customer quarter, side integrate that if bring

Michael Hance

is months. attrition mean continue then to his remarks, do answer. that pass looking great to our This continued the for Michael. with is over many had they're as attrition on doing that we them opening and interactions and and the committed past happy answers customers positive. to the Andrew, Shawn. start enables that. the it several to service I'm Shawn call same to us said pleased and that to And on still in I are provide report I've with win, customer I'll salespeople have to to them

how is are, tough this work are fully And of have for environment, sales that. winning customer grateful on attrition. and engaged our and a we of to sales the there with from side team, And commercial so integration a side, of and great and not sort on we seen ongoing. integrate and team, streams they that's as one we're respect sales in laser-focused to And working have part

at I I'll it. with into the think directing more that pass hear it on ahead, steering that. that in and now the Shawn, to you he'll speaking but and days Shawn be helm, And you'll mic And about

Shawn Stewart

Yes.

of not time the for you personally in I'd in your business question, thank growing spend transparency, majority and a involved this customers. if full with Look, to So like large my you're debt Andrew.

So of got the work of ahead lot the with quickly. venture optimal this get me of a to out obviously, to I've do team most

network. those next throughout interaction over this between their with the if solutions time But listening to to segment supply split combined we my I customers, with to direct to quarter sales confidence this and team what understanding will can time chain that continue will, you bring capsules, to give ensure we that

Michael Hance

I they over months. doing and and the if delivering justice dedicated am I'm the not sales how had closely because sitting Andrew, our service be to could you And several And great of I've back leaders with how with just with them to pleasure past our working tell are them can't that I customers. great jump I just impressed in.

been customer committed. so just I've from the because are kudos meetings our where so get people many in they

going that great the remarks, we're on. So great asset I a for said which our to in as foundation us think and that, people his something are is build Shawn for

just who I say folks you so the want to on And to call. specifically thank are that those and out again listening call

Operator

Tyler our from take will Brown next We James. Raymond with question

Patrick Brown

for EBITDA you that take so it pro calculation covenant. just quarters X it add the EBITDA Is synergies. debt -- of basically effectively So the I of last forma and rate just the the on Is run have correct? they then kind

Rebecca Garbrick

the On X Yes, and our give of that gave debt, would largest a formas reconciliation the the quarters we and the then -- months. we be transaction Tyler. which back, you're of diligence just for we XX add last in of in due our terms the did appendix, But trailing pro adjustments integration there's right costs.

right rate you're cost on then the the run of synergies. But

that's that wins our own realized It terms, correct. that million right. any we obviously implicit But P&L is -- that's adjusted within in achieved. So for $XX or we've the

Patrick Brown

Okay.

come half what forma and maybe you I Do applicable kind to for if QX calculation? very back hard chance was in at the So have bank different question pro the EBITDA second by way, of even Scott's of but it's another 'XX? because that do QX to the

Rebecca Garbrick

the a just XX trailing calculation bank's provided is We Yes. on -- months. the

be transparent of terms looked like. so And what in wanted that to we

trailing versus the provided quarters there. months so it between And out breaking to we XX get the

Patrick Brown

that March be flow I to Well, because based to in do flow that said flow again, you last is the burn. QX? commit call, positive operating here. implies cash quarter And comments, mean, was big a obviously, was the to Okay. can cash positive, you're you super having that? just on Or on ready I think going important cash not which February

Rebecca Garbrick

as to think don't assure really top But can Tyler, a you is ready a to is the priority are I you Yes. company. that I speak we -- this for QX. said, this

liquidity. focused on We very We're are on focused very deleveraging.

acknowledge as will cost only the lingering quarter some be expenses this We there onetime paid have to some second that we acquisition. in from are

once get a year, you the normalized more half of in second to environment. the But it's

talked $X.X the these about, that the of We yet the we year. our in quarter, we've that the in already believe that and first also half million is synergies second quarter there second for we've believe in come that P&L more to and proven

speak. -- programs So we we give reduction, about earnings are our on underway talked second those quarter some also, we We'll on you that clarity cost call. more as have the of as

provide earnings we're we're liquidity be what call. question, to viewing what the actions context sets as on flow in your we quarter able is, we're that up taking taking. you that's to how second us be that asked and to you our and be some that actions the and positive, are focus our that's working able to give could But hopefully, have about But all cash

Patrick Brown

couple more. Okay. A

out statement, cash that paid think for? flow on you the I also So a $XX was million What earn-out.

Rebecca Garbrick

between Yes, where split were in an QX. payable. legacy that's earned There earnout was section. down was the QX due and right. a acquisition -- we and It's was It and financing Omni

$XX that second of piece in it. you financing, be one that's the There'll the see the piece million down in a So quarter. second

Patrick Brown

Okay. Equal size.

Rebecca Garbrick

a portion larger quarter. portion It's smaller No, in it's was a A the second quarter. in the paid smaller. first

Patrick Brown

one, how the say, quarter. last I calc was, $XXX so done? cap calculation my just Am million that And It ] the able add like in leverage on this seems [ cash million. $XX is were Okay. you the ratio misunderstanding calculation, back the to I thought

Rebecca Garbrick

after we to domestic essentially which Tyler, further a add review, No. unrestricted our are able cash. cash, back is

long not because And our correct. tieback That's to portion the so of that netting able a larger is against take is balance it's cash It's why $XXX as to deduct. to we a sheet were debt. million as the restricted that

Operator

question And Susquehanna. next, we'll Bascome take with from Majors another

Bascome Majors

losing back go so lose Tyler of on lender second think frame as you're any versus last first Scott's we EBITDA quarter going the forward? of sequential even way number quarter year. at that look going Is to which to the challenging an can basis year, to be Just the to EBITDA, risk quarter for improvement there we the just about with the of of this and last trailing adjusted XQ will the lender second angle, year, obviously

Rebecca Garbrick

Yes.

again, we right second I drop will think, Bascome, we as into -- that off the move quarter. we you're

we right, off You're X drop will quarter.

both back I'll said believe first the of quarter that had, I that call, is of think year. it's the really kind of we to Shawn representative started the go just is for -- the as we've we remainder what have and kind don't I,

of And we think will think terms actions drop will off QX to misnomer second the And QX of while think do underway as things quarter, it's talked ahead so results. we have quarter, in about. -- we've are that all that that I we to believe I as you a that mentioned, we be reflective

that, And so we we'll believe be do compliance. in that with

And up quarter results. so our second off even of quarter dropping last with and picking

Bascome Majors

state from years, of -- that? Okay. a spent business about a quarters And, know days, the I sort that you was leverage career a kind owned not been that learned here time. and Shawn, maybe or then of Can you, you've months, leveraged by bit you for long you acquired crisis-type from experience little highly talk at but a

enable skill next what the load that will running And how you've years? for this Forward at has both create to cash led you situation managing And over a that Air? few a you business learned set and from equity here opportunity flow value challenging of here to debt while that, holders

Shawn Stewart

play and the really learned high I at of the to question. how It's you the you what just appreciate level, maybe win a the say, I good into time, a game you an defense is would playing win that don't don't not situation both offense. so positive. something Sure. bring I them game that's play that's same just

that And time, my approach we at those that to is this us be both same to need so take rate. and the are on to the of that of opportunity will focused situation optimal quickest being in here completely the we at

Operator

today's this conclude end have Call. Q&A time And your wonderful disconnect lines this that First day. a Earnings and Forward session, will at will Conference and Please our Air XXXX Quarter

Forward Air (FWRD) 9 May 242024 Q1 Earnings call transcript