Forward Air Corporation Reports Fourth Quarter 2016 Results and Quarterly Cash Dividend

GREENEVILLE, Tenn.--()--Forward Air Corporation (NASDAQ:FWRD) today reported operating revenue, income from operations, net income and diluted earnings per share for the fourth quarter and year ended December 31, 2016.

Operating revenue for the quarter ended December 31, 2016 increased 3.3% to $264.8 million from $256.4 million for the same quarter in 2015. Income from operations was $28.2 million, compared to $29.0 million in the prior year quarter. Net income during the period was $12.7 million compared to $23.2 million in the fourth quarter of 2015. Net income per diluted share for the fourth quarter of 2016 was $0.42 compared to $0.75 in the prior year quarter.

Fourth quarter income from operations of $28.2 million was not adjusted, and compares to adjusted income from operations of $30.8 million for the fourth quarter of 2015. Adjusted net income decreased to $17.7 million during the fourth quarter of 2016 from $19.0 million in the prior year quarter. Similarly, adjusted earnings per diluted share for the fourth quarter of 2016 decreased to $0.58 compared to $0.61 in the prior year quarter. A tabular reconciliation of non-GAAP financial measures to reported results prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) is contained in the financial summary statements attached to this press release.

Bruce A. Campbell, Chairman, President, and CEO, commenting on the fourth quarter results said, “Our fourth quarter results were slightly ahead of our guidance, which reflected one less operating day in the current year quarter. Our Expedited LTL group continued to improve its linehaul and dock efficiencies despite the seasonally busy fourth quarter. Truckload Premium Services grew its revenue but incurred higher broker utilization as it on-boarded new business. Our Intermodal group performed well amid margin pressure reflecting the integration of Triumph, while our Pool Distribution segment did a great job ramping up its recent new business wins.”

In closing Mr. Campbell said, “As we end 2016, I would like to thank all of our employees and independent contractors for their hard work during a sluggish year for freight. With the improvements we have made within each of our business units, we are well positioned for any pick-up in 2017 freight volumes.”

Commenting on the Company’s first quarter 2017 guidance, Michael J. Morris, Senior Vice President and CFO, said, “We expect first quarter year-on-year revenue growth to be up 4% to 8%. We expect net income per diluted share to be between $0.38 and $0.42, compared to $0.43 in the prior year quarter. We do not anticipate making any non-GAAP adjustments to our first quarter 2017 net income per diluted share results, nor were there any in the prior year quarter.” Supplemental 2017 guidance information is contained in the financial summary statements attached to this press release.

On February 7, 2017, our Board of Directors declared a quarterly cash dividend of $0.15 per share of common stock. The dividend is payable to shareholders of record at the close of business on March 9, 2017, and is expected to be paid on March 24, 2017.

This quarterly dividend is pursuant to a cash dividend policy approved by the Board of Directors, which anticipates a total annual dividend of $0.60 per share of common stock, payable in quarterly increments of $0.15 per share of common stock. The actual declaration of future cash dividends, and the establishment of record and payment dates, is subject to final determination by the Board of Directors each quarter after its review of the Company's financial performance.

Review of Financial Results

Forward Air will hold a conference call to discuss fourth quarter 2016 results on Thursday, February 9, 2017 at 9:00 a.m. EST. The Company's conference call will be available online at www.forwardaircorp.com or by dialing (800) 230-1074. A replay of the conference call will be available at www.forwardaircorp.com beginning shortly after the completion of the live call.

About Forward Air Corporation

Forward Air Corporation’s (“the Company”, “we”, “our”) services are classified into four principal reportable segments: Expedited LTL, Truckload Premium Services (“TLS”), Intermodal and Pool Distribution.

In our Expedited LTL segment, we provide time-definite transportation services to the North American deferred air freight market. Our Expedited LTL service operates a comprehensive national network for the time-definite surface transportation of expedited ground freight. The Expedited LTL service offers customers local pick-up and delivery and scheduled surface transportation of cargo as a cost effective, reliable alternative to air transportation. Expedited LTL’s other services include shipment consolidation and deconsolidation, warehousing, customs brokerage, and other handling. The Expedited LTL segment primarily provides its transportation services through a network of terminals located at or near airports in the United States and Canada.

In our TLS segment, we provide expedited truckload brokerage, dedicated fleet services and maximum security and temperature-controlled logistics services. We are able to expedite this service by utilizing a dedicated fleet of team owner operators, some team company drivers as well as third party transportation providers. The TLS segment provides full truckload service in the United States and Canada.

In our Intermodal segment, we provide container and intermodal drayage services primarily within the Midwest region of the United States. Drayage is essentially the first and last mile of the movement of an intermodal container. We are providing this service both to and from ports and rail heads. Our Intermodal segment also provides dedicated contract and Container Freight Station (“CFS”) warehouse and handling services.

In our Pool Distribution segment, we provide pool distribution services throughout the Mid-Atlantic, Southeast, Midwest and Southwest continental United States. Pool Distribution involves managing high-frequency handling and distribution of time-sensitive product to numerous destinations in specific geographic regions. Our primary customers for this service are regional and nationwide distributors and retailers, such as mall, strip mall and outlet based retail chains.

 
Forward Air Corporation
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
       
Three months ended Year ended
December 31,
2016
    December 31,
2015
December 31,
2016
    December 31,
2015
Operating revenue:
Expedited LTL $ 147,368 $ 149,748 $ 570,778 $ 577,026
Truckload Premium Services 44,003 40,937 164,272 153,331
Pool Distribution 47,507 42,954 148,661 129,995
Intermodal 27,279 24,881 103,671 104,292
Eliminations and other operations (1,364 ) (2,100 ) (4,852 ) (5,519 )
Operating revenue 264,793 256,420 982,530 959,125
 
Operating expenses:
Purchased transportation 112,572 107,516 413,355 408,769
Salaries, wages and employee benefits 66,145 65,789 242,002 240,604
Operating leases 15,808 15,167 60,492 66,272
Depreciation and amortization 9,801 9,556 38,210 37,157
Insurance and claims 6,180 4,951 25,392 21,483
Fuel expense 3,857 3,869 13,233 15,903
Other operating expenses 22,207 20,557 87,425 87,165
Impairment of goodwill, intangibles and other assets     42,442    
Total operating expenses 236,570   227,405   922,551   877,353  
Operating income (loss):
Expedited LTL 20,492 21,918 83,518 79,193
Truckload Premium Services 1,273 2,767 (35,405 ) 13,288
Pool Distribution 3,824 3,062 3,633 3,820
Intermodal 2,786 3,106 10,956 11,949
Other operations (152 ) (1,838 ) (2,723 ) (26,478 )
Income from operations 28,223 29,015 59,979 81,772
 
Other income (expense):
Interest expense (366 ) (558 ) (1,597 ) (2,047 )
Other, net 152   68   4   (58 )
Total other income (expense) (214 ) (490 ) (1,593 ) (2,105 )
Income before income taxes 28,009 28,525 58,386 79,667
Income tax expense 15,303   5,297   30,716   24,092  
Net income and comprehensive income $ 12,706   $ 23,228   $ 27,670   $ 55,575  
 
Net income per share:
Basic $ 0.42   $ 0.75   $ 0.91   $ 1.80  
Diluted $ 0.42   $ 0.75   $ 0.90   $ 1.78  
       
Dividends per share: $ 0.15   $ 0.12   $ 0.51   $ 0.48  
 
Expedited LTL Segment Information
(In millions)
(Unaudited)
                       
Three months ended
December 31, Percent of December 31, Percent of Percent
2016 Revenue 2015 Revenue   Change Change
Operating revenue $ 147.4 100.0 % $ 149.7 100.0 % $ (2.3 ) (1.5 )%
 
Operating expenses:
Purchased transportation 59.6 40.4 61.9 41.3 (2.3 ) (3.7 )
Salaries, wages and employee benefits 36.4 24.7 37.8 25.3 (1.4 ) (3.7 )
Operating leases 8.9 6.1 8.1 5.4 0.8 9.9
Depreciation and amortization 5.6 3.8 5.4 3.6 0.2 3.7
Insurance and claims 3.1 2.1 2.2 1.5 0.9 40.9
Fuel expense 0.9 0.6 0.9 0.6
Other operating expenses 12.4   8.4   11.5   7.7   0.9   7.8  
Total operating expenses 126.9   86.1   127.8   85.4   (0.9 ) (0.7 )
Income from operations $ 20.5   13.9 % $ 21.9   14.6 % $ (1.4 ) (6.4 )%
 
 
Expedited LTL Operating Statistics
           
Three months ended
December 31, December 31, Percent
2016 2015 Change
 
Operating ratio 86.1 % 85.4 % 0.8 %
 
Business days 63.0 64.0 (1.6 )
Business weeks 12.6 12.8 (1.6 )
 
Expedited LTL:
Tonnage

Total pounds 1

612,098 621,178 (1.5 )

Average weekly pounds 1

48,579 48,530 0.1
 
Linehaul shipments
Total linehaul 1,006,256 1,015,043 (0.9 )
Average weekly 79,862 79,300 0.7
 
Forward Air Complete shipments 202,452 198,894 1.8
As a percentage of linehaul shipments 20.1 % 19.6 % 2.6
 
Average linehaul shipment size 608 612 (0.7 )
 

Revenue per pound 2

Linehaul yield $ 17.40 $ 17.70 (1.4 )

Fuel surcharge

1.02 0.98 0.2

Forward Air Complete

3.45   3.22   1.1  
Total Expedited LTL yield $ 21.87   $ 21.90   (0.1 )%
 

1 - In thousands

2 - In dollars per hundred pound; percentage change is expressed as a percent of total yield.
 
 
Truckload Premium Services Segment Information
(In millions)
(Unaudited)
                       
Three months ended
December 31, Percent of December 31, Percent of Percent
2016 Revenue 2015 Revenue   Change Change
Operating revenue $ 44.0 100.0 % $ 40.9 100.0 % $ 3.1 7.6 %
 
Operating expenses:
Purchased transportation 31.7 72.1 27.6 67.5 4.1 14.9
Salaries, wages and employee benefits 4.9 11.1 5.2 12.7 (0.3 ) (5.8 )
Operating leases 0.1 0.2 0.1 0.2
Depreciation and amortization 1.5 3.4 1.7 4.2 (0.2 ) (11.8 )
Insurance and claims 1.9 4.3 0.7 1.7 1.2 171.4
Fuel expense 0.7 1.6 0.8 2.0 (0.1 ) (12.5 )
Other operating expenses 1.9   4.3   2.0   4.9     (0.1 ) (5.0 )
Total operating expenses 42.7   97.0   38.1   93.2     4.6   12.1  
Income from operations $ 1.3   3.0 % $ 2.8   6.8 % $ (1.5 ) (53.6 )%
 
Truckload Premium Services Operating Statistics
     
Three months ended
December 31,     December 31,     Percent
2016 2015 Change
 
Company driver 1 1,665 1,900 (12.4 )%
Owner operator 1 12,702 11,967 6.1
Third party 1 9,455   7,436   27.2  
Total Miles 23,822 21,303 11.8
 
Revenue per mile $ 1.80 $ 1.87 (3.7 )
 
Cost per mile $ 1.42 $ 1.40 1.4 %
 

1 - In thousands

 
Pool Distribution Segment Information
(In millions)
(Unaudited)
                       
Three months ended
December 31, Percent of December 31, Percent of Percent
2016   Revenue 2015   Revenue Change Change
Operating revenue $ 47.5 100.0 % $ 43.0 100.0 % $ 4.5 10.5 %
 
Operating expenses:
Purchased transportation 12.5 26.3 11.2 26.0 1.3 11.6
Salaries, wages and employee benefits 17.8 37.5 16.0 37.2 1.8 11.3
Operating leases 3.5 7.4 3.4 7.9 0.1 2.9
Depreciation and amortization 1.5 3.1 1.5 3.5
Insurance and claims 1.2 2.5 1.1 2.6 0.1 9.1
Fuel expense 1.6 3.4 1.5 3.5 0.1 6.7
Other operating expenses 5.6     11.8   5.2     12.1   0.4   7.7  
Total operating expenses 43.7     92.0   39.9     92.8   3.8   9.5  
Income from operations $ 3.8   8.0 % $ 3.1   7.2 % $ 0.7   22.6 %
 
Intermodal Segment Information
(In millions)
(Unaudited)
                       
Three months ended
December 31, Percent of December 31, Percent of Percent
2016   Revenue 2015   Revenue Change Change
Operating revenue $ 27.3 100.0 % $ 24.9 100.0 % $ 2.4 9.6 %
 
Operating expenses:
Purchased transportation 9.7 35.5 8.3 33.3 1.4 16.9
Salaries, wages and employee benefits 6.6 24.2 6.1 24.5 0.5 8.2
Operating leases 2.8 10.3 3.0 12.1 (0.2 ) (6.7 )
Depreciation and amortization 1.1 4.0 0.9 3.6 0.2 22.2
Insurance and claims 0.8 2.9 0.6 2.4 0.2 33.3
Fuel expense 0.7 2.6 0.7 2.8
Other operating expenses 2.8     10.3   2.2     8.8   0.6   27.3  
Total operating expenses 24.5     89.7   21.8     87.5   2.7   12.4  
Income from operations $ 2.8   10.3 % $ 3.1   12.5 % $ (0.3 ) (9.7 )%
 
Forward Air Corporation
Consolidated Balance Sheets
(In thousands)
(Unaudited)
    December 31,
2016
    December 31,

2015 (a)

Assets
Current assets:
Cash and cash equivalents $ 8,511 $ 33,312
Accounts receivable, net 116,602 109,165
Other current assets 11,157   30,980
Total current assets 136,270 173,457
 
Property and equipment 379,021 343,147
Less accumulated depreciation and amortization 178,816   155,859
Net property and equipment 200,205 187,288
Goodwill and other acquired intangibles:
Goodwill 184,675 205,609
Other acquired intangibles, net of accumulated amortization 106,650   127,800
Total net goodwill and other acquired intangibles 291,325 333,409
Other assets 13,491   5,778
Total assets $ 641,291   $ 699,932
 
 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable $ 18,012 $ 23,334
Accrued expenses 31,903 29,823
Current portion of debt and capital lease obligations 28,012   55,887
Total current liabilities 77,927 109,044
 
Debt and capital lease obligations, less current portion 725 28,617
Other long-term liabilities 21,699 12,340
Deferred income taxes 41,871 39,876
Shareholders’ equity:
Common stock 301 305
Additional paid-in capital 179,512 160,855
Retained earnings 319,256   348,895
Total shareholders’ equity 499,069   510,055
Total liabilities and shareholders’ equity $ 641,291   $ 699,932
 

(a) Taken from audited financial statements, which are not presented in their entirety and have been adjusted to reflect reclassifications associated with the early adoption of a new accounting standard.

 
Forward Air Corporation
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
       
Three months ended
December 31,
2016
December 31,
2015
Operating activities:
Net income $ 12,706 $ 23,228
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization 9,801 9,556
Share-based compensation 2,130 1,924
Loss (gain) on disposal of property and equipment 90 (178 )
Provision for recovery on receivables (10 ) (430 )
Provision for revenue adjustments 450 1,402
Deferred income taxes 2,864 8,985
Tax benefit for stock options exercised (1,595 ) (3,048 )
Changes in operating assets and liabilities
Accounts receivable (1,715 ) 4,537
Prepaid expenses and other assets 7,377 (12,274 )
Accounts payable and accrued expenses 3,644   (5,295 )
Net cash provided by operating activities 35,742 28,407
 
Investing activities:
Proceeds from disposal of property and equipment 134 520
Purchases of property and equipment (13,461 ) (21,954 )
Acquisition of business 497
Other 337   (164 )
Net cash used in investing activities (12,990 ) (21,101 )
 
Financing activities:
Payments of debt and capital lease obligations (13,943 ) (13,985 )
Proceeds from exercise of stock options 1,107 2,962
Payments of cash dividends (4,542 ) (3,688 )
Repurchase of common stock (repurchase program) (9,997 ) (9,996 )
Common stock issued under employee stock purchase plan 227 221
Tax benefit for stock options exercised 1,595   3,048  
Net cash used in by financing activities (25,553 ) (21,438 )
Net decrease in cash (2,801 ) (14,132 )
Cash at beginning of period 11,312   47,444  
Cash at end of period $ 8,511   $ 33,312  
 
Forward Air Corporation
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
    Year ended
December 31,
2016
    December 31,
2015
Operating activities:
Net income $ 27,670 $ 55,575
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization 38,210 37,157
Impairment of goodwill, intangible and other assets 42,442
Share-based compensation 8,334 7,486
Loss (gain) on disposal of property and equipment 291 (181 )
Provision for loss on receivables 258 33
Provision for revenue adjustments 2,020 4,793
Deferred income taxes 3,525 14,531
Tax benefit for stock options exercised (1,732 ) (5,413 )
Changes in operating assets and liabilities, net of acquisition of business
Accounts receivable (9,715 ) 5,403
Prepaid expenses and other assets 283 (1,378 )
Accounts payable and accrued expenses 18,764   (32,284 )
Net cash provided by operating activities 130,350 85,722
 
Investing activities:
Proceeds from disposal of property and equipment 1,929 1,720
Purchases of property and equipment (42,186 ) (40,495 )
Acquisition of business, net of cash acquired (11,800 ) (61,878 )
Other (336 ) (265 )
Net cash used in investing activities (52,393 ) (100,918 )
 
Financing activities:
Proceeds from term loan 125,000
Payments of debt and capital lease obligations (55,768 ) (101,352 )
Proceeds from exercise of stock options 8,148 14,313
Payments of cash dividends (15,529 ) (14,821 )
Repurchase of common stock (repurchase program) (39,983 ) (19,992 )
Common stock issued under employee stock purchase plan 442 449
Cash settlement of share-based awards for minimum tax withholdings (1,800 ) (1,931 )
Tax benefit for stock options exercised 1,732   5,413  
Net cash (used in) provided by financing activities (102,758 ) 7,079  
Net decrease in cash (24,801 ) (8,117 )
Cash at beginning of year 33,312   41,429  
Cash at end of year $ 8,511   $ 33,312  
 

Forward Air Corporation Reconciliation of U.S. GAAP and Non-GAAP Financial Measures

The Company reports its financial results in accordance with GAAP (also referred to herein as “reported”). However, the Company also uses “non-GAAP financial measures” that are derived on the basis of methodologies other than in accordance with GAAP. Specifically, the Company believes that meaningful analysis of its financial performance in 2016 and 2015 requires an understanding of the factors underlying that performance, including an understanding of items that are non-operational and related to our acquisition activity. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the Company’s performance.

This press release contains the following non-GAAP financial measures: adjusted income from operations, adjusted net income, adjusted earnings per diluted share, adjusted effective income tax rate and guidance with respect to adjusted net income per diluted share. These measures exclude intangible asset impairment costs and tax ramifications related to TQI for the three months and year ended December 31, 2016, integration costs related to the acquisition of CLP Towne Inc. and tax benefits in 2015 from amending prior year returns from our results for all periods reconciled below for 2015. The Company believes that excluding these items will assist investors in understanding our core operating performance and allow for more accurate comparisons of results.

Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP. Our non-GAAP financial information does not represent a comprehensive basis of accounting. As required by the Securities and Exchange Act of 1934 and the rules and regulations promulgated thereunder, the tables below present, for the periods indicated, a reconciliation of our presented non-GAAP financial measures to the most directly comparable GAAP financial measures.

   
Forward Air Corporation
Reconciliation to U.S. GAAP
(In millions, except per share data)
(Unaudited)
                                         
Three months ended December 31, 2016

Operating

Income

   

Other,

Net

   

Income

before

taxes

   

Income

taxes

   

Effective

tax rate

   

Net

Income

   

Diluted earnings

per share

Reported (GAAP) $ 28.2     $ (0.2 )     $ 28.0     $ 15.3     54.6 %     $ 12.7 $ 0.42
Items impacting comparability:
Impact of TQI impairment on income taxes                   (5.0 )     17.8 %     5.0       0.16  
After considering items (Non-GAAP) $ 28.2 $ (0.2 ) $ 28.0 $ 10.3 36.8 % $ 17.7 $ 0.58
                                     
Three months ended December 31, 2015

Operating

Income

   

Other,

Net

   

Income

before

taxes

   

Income

taxes

   

Effective

tax rate

   

Net

Income

   

Diluted

earnings

per share

Reported (GAAP) $ 29.0 $ (0.5 ) $ 28.5 $ 5.3 18.6 % $ 23.2 $ 0.75
Items impacting comparability:
Certain tax matters 1 1.2 1.2 5.8 18.8 % (4.6 ) (0.15 )
Integrations and deal costs 0.6             0.6       0.2       %     0.4       0.01  
After considering items (Non-GAAP) $ 30.8 $ (0.5 ) $ 30.3 $ 11.3 37.4 % $ 19.0 $ 0.61
 
1 - Certain tax matters related to technology-related permanent tax deductions in 2015 which were not identified as non-GAAP adjustments at that time, but which are adjusted here for consistency and comparison purposes.
   
Forward Air Corporation
Reconciliation to U.S. GAAP
(In millions, except per share data)
(Unaudited)
                                         
Year ended December 31, 2016

Operating

Income

   

Other,

Net

   

Income

before

taxes

   

Income

taxes

   

Effective

tax rate

   

Net

Income

   

Diluted

earnings

per share

Reported (GAAP) $ 60.0     $ (1.6 )     $ 58.4     $ 30.7     52.6 %     $ 27.7 $ 0.90
Items impacting comparability:
TQI impairment 42.4             42.4       6.4       15.8 %     36.0       1.18  
After considering items (Non-GAAP) $ 102.4 $ (1.6 ) $ 100.8 $ 37.1 36.8 % $ 63.7 $ 2.08
 
                                     
Year ended December 31, 2015

Operating

Income

   

Other,

Net

   

Income

before

taxes

   

Income

taxes

   

Effective

tax rate

   

Net

Income

   

Diluted

earnings

per share

Reported (GAAP) $ 81.8 $ (2.1 ) $ 79.7 $ 24.1 30.2 % $ 55.6 $ 1.78
Items impacting comparability:
Certain tax matters 1 1.2 1.2 6.9 7.2 % (5.7 ) (0.18 )
Integrations and deal costs 23.1       0.4       23.5       8.8       %     14.7       0.47  
After considering items (Non-GAAP) $ 106.1 $ (1.7 ) $ 104.4 $ 39.8 37.4 % $ 64.6 $ 2.07
 
1 - Certain tax matters related to technology-related permanent tax deductions in 2015 which were not identified as non-GAAP adjustments at that time, but which are adjusted here for consistency and comparison purposes.
 

The following table summarizes supplemental full year 2017 guidance information that management believes to be useful.

 
Forward Air Corporation
Additional Guidance Data
(In thousands)
(Unaudited)
   
2017
Projected tax rate 37.0 %
 
Projected year end fully diluted share count (before consideration of future share repurchases) 30,500
 
Projected capital expenditures, net $ 45,904
 

Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as:  “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods.  Examples of forward-looking statements include, among others, statements we make regarding expected operating results, such as revenue growth and earnings, and guidance relating to net income per diluted share for the first quarter, projected tax rate, diluted share count and capital expenditures for full year 2017, and anticipated total dividends in 2017.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: 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, our inability to successfully integrate acquisitions and the risks described in our Annual Report on Form 10-K for the year ended December 31, 2015.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Contacts

Forward Air Corporation
Michael J. Morris, 404-362-8933
mmorris@forwardair.com

Contacts

Forward Air Corporation
Michael J. Morris, 404-362-8933
mmorris@forwardair.com