Forward Air Corporation Reports Second Quarter 2014 Results and Announces Quarterly Cash Dividend

  Forward Air Corporation Reports Second Quarter 2014 Results and Announces   Quarterly Cash Dividend  Business Wire  GREENEVILLE, Tenn. -- July 22, 2014  Forward Air Corporation (NASDAQ:FWRD) today reported operating revenue, operating income, net income and diluted earnings per share for the three and six months ended June30, 2014.  Operating revenue for the quarter ended June30, 2014 increased 21.3% to $193.9 million from $159.8 million for the same quarter in 2013. Income from operations was $27.6 million, compared with $22.5 million in the prior-year quarter. As a percent of operating revenue, income from operations was 14.2%, compared with 14.1% in the same quarter last year. Net income during the period was $17.2 million compared to $13.8 million in the prior-year quarter. Income per diluted share for the second quarter of 2014 was $0.55 compared with $0.45 in the prior-year quarter.  Operating revenue for the six months ended June30, 2014 increased 21.2% to $365.4 million from $301.4 million for the same period in 2013. Income from operations was $43.9 million, compared with $38.3 million in the prior-year period. As a percent of operating revenue, income from operations was 12.0%, compared with 12.7% in the same period last year. Net income during the period was $27.4 million compared to $24.7 million in the prior-year period. Income per diluted share for the six months ended June 30, 2014 was $0.87 compared with $0.81 in the prior-year period.  Bruce A. Campbell, Chairman, President, and CEO, commenting on the second quarter said, “We are pleased with this quarter’s revenue and operating income performance across all of our business segments. With the impact of the first quarter's severe winter weather behind us, we delivered strong revenue growth and a solid income performance for the quarter.”  Commenting on the Forward Air, Inc. (FAI) business segment, Mr. Campbell said, “On the strength of a full quarter of revenue and results from Central States Trucking Co. (CST), which we acquired in February, improving year-over-year tonnage volumes and a full quarter benefit from our March general rate increase, FAI achieved record revenue and operating income during the second quarter of 2014. CST contributed approximately $18.1 million of revenue and $2.3 million of operating income during the second quarter of 2014.”  Commenting on the Forward Air Solutions (Solutions) segment, Mr. Campbell said, “Driven by a full quarter benefit from general rate increases initiated in the first quarter, continued excellent operating discipline and solid revenue growth, Solutions produced operating income of approximately $1.0 million. Compared to the prior-year quarter results, Solutions operating results improved over $1.2 million, or 600.0%.”  Addressing the Total Quality, Inc. (TQI) business segment, Mr. Campbell said, “TQI experienced solid revenue growth and significant improvement in operating income as a result of pharmaceutical distribution opportunities that emerged during the second quarter and benefits derived from our new operating system implemented in the first quarter.”  In closing, Mr. Campbell said, “As always, I would like to thank the Forward Air team of employees and independent contractors for their dedication and hard work. This truly was a quarter that all our operating groups made a positive contribution to our overall results.”  Commenting on the Company's guidance for the third quarter, Rodney L. Bell, Senior Vice President and CFO said, “We anticipate that our third quarter 2014 revenues will increase in the range of 18% to 22% over the comparable 2013 period. We expect income per diluted share to be between $0.57 and $0.61 per share. This compares to $0.46 per share in the third quarter of 2013.”  On July 22, 2014, our Board of Directors declared a quarterly cash dividend of $0.12 per share of common stock. The dividend is payable to shareholders of record at the close of business on August 21, 2014, and is expected to be paid on September 5, 2014.  This quarterly dividend is pursuant to a cash dividend policy approved by the Board of Directors, which anticipates a total annual dividend of $0.48 per share of common stock, payable in quarterly increments of $0.12 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 second quarter 2014 results on Wednesday, July 23, 2014 at 9:00 a.m. EDT. The Company's conference call will be available online at www.forwardair.com or by dialing (800) 230-1092. 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 Corporation  Forward Air Corporation operates three business segments, Forward Air, Inc., Forward Air Solutions, Inc. and Total Quality, Inc.  Forward Air, Inc. is a leading provider of time-definite surface transportation and related logistics services to the North American expedited ground freight market. We offer our customers local pick-up and delivery (Forward Air Complete^SM) and scheduled surface transportation of cargo as a cost-effective, reliable alternative to air transportation. We transport 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. We also offer our customers an array of logistics and other services including: expedited full truckload (TLX); intermodal/drayage (Central States Trucking Co.); dedicated fleets; warehousing; customs brokerage; and shipment consolidation, deconsolidation and handling.  Forward Air Solutions, Inc. is a provider of pool distribution services. Pool distribution involves the consolidation and shipment of several smaller less-than-truckload shipments to a common area or region. Once at the regional destination, the loads are deconsolidated, then grouped with other shipments with common delivery points, and delivered in a very precise, time-sensitive manner. Our pool distribution network consists of 24 terminals within the mid-Atlantic, Southeast, Midwest and Southwestern United States.  Total Quality, Inc. utilizes industry-leading temperature-controlled equipment, 24-hour monitoring and tracking technology and layered security features to provide our customers with the highest level of service. In addition to our core pharmaceutical services, we provide brokerage transportation services. Headquartered in central Michigan, we service the United States, Canada and Mexico.   Forward Air Corporation Consolidated Statements of Comprehensive Income (In thousands, except per share data) (Unaudited)                                                                                    Three months ended              Six months ended                      June 30,      June 30,        June 30,        June 30,                      2014            2013            2014            2013 Operating            $ 193,852       $ 159,804       $ 365,420       $ 301,364 revenue                                                                                 Operating expenses: Purchased            82,834          70,253            156,385         131,252 transportation Salaries, wages and            44,391          36,031            85,813          69,983 employee benefits Operating            8,165           6,888             16,516          13,932 leases Depreciation and                  7,751           5,971             14,764          11,157 amortization Insurance and        3,104           3,215             7,231           5,874 claims Fuel expense         5,172           3,656             9,977           6,664 Other operating            14,840         11,285          30,868        24,207   expenses Total operating            166,257        137,299         321,554       263,069  expenses Income from          27,595          22,505            43,866          38,295 operations                                                                                 Other income (expense): Interest             (101      )     (128      )       (183    )       (256    ) expense Other, net           112            14              198           45       Total other income               11             (114      )      15            (211    ) (expense) Income before        27,606          22,391            43,881          38,084 income taxes Income taxes         10,428         8,560           16,502        13,399   Net income and comprehensive        $ 17,178       $ 13,831       $ 27,379       $ 24,685   income                                                                                 Net income per share: Basic                $ 0.56         $ 0.46         $ 0.89         $ 0.83     Diluted              $ 0.55         $ 0.45         $ 0.87         $ 0.81     Weighted average shares outstanding: Basic                30,925          30,161            30,834          29,838 Diluted              31,408          30,736            31,364          30,477                                                                                 Dividends per        $ 0.12         $ 0.10         $ 0.24         $ 0.20     share:                                                                                                                                                  Forward Air Corporation Components of Consolidated Revenue and Purchased Transportation (In thousands) (Unaudited)                                                                                                              Three months ended                          June 30,        Percent     June 30,        Percent                      Percent                                          of                          of                          2014          Revenue     2013         Revenue       Change       Change Operating Revenue Forward Air Airport-to-airport       $ 107,983       70.0  %     $ 97,336        78.4  %       $ 10,647       10.9    % Logistics services Expedited full           19,167          12.4        18,581          15.0          586            3.2 truckload - TLX Intermodal/drayage       14,351       9.3        1,254        1.0          13,097      1,044.4  Total Logistics          33,518          21.7        19,835          16.0          13,683         69.0 services Other Forward Air        12,765       8.3        6,909        5.6          5,856       84.8     services Forward Air -            154,266      79.5       124,080      77.7         30,186      24.3     Total revenue TQI - Pharmaceutical           13,682          7.1         12,196          7.6           1,486          12.2 services Forward Air Solutions - Pool         26,935          13.9        24,300          15.2          2,635          10.8 distribution Intersegment             (1,031    )   (0.5  )     (772      )   (0.5  )       (259     )   33.5     eliminations Consolidated             $ 193,852    100.0 %     $ 159,804    100.0 %       $ 34,048    21.3    % operating revenue                                                                                                                                     Three months ended                          June 30,        Percent     June 30,        Percent                      Percent                                          of                          of                          2014          Revenue     2013         Revenue       Change       Change Purchased Transportation Forward Air Airport-to-airport       $ 44,776        41.5  %     $ 39,780        40.9  %       $ 4,996        12.6    % Logistics services Expedited full           14,695          76.7        13,816          74.4          879            6.4 truckload - TLX Intermodal/drayage       6,073        42.3       779          62.1         5,294       679.6    Total Logistics          20,768          62.0        14,595          73.6          6,173          42.3 services Other Forward Air        3,045        23.9       2,073        30.0         972         46.9     services Forward Air - Total purchased          68,589       44.5       56,448       45.5         12,141      21.5     transportation TQI - Pharmaceutical           7,229           52.8        6,690           54.9          539            8.1 services Forward Air Solutions - Pool         7,790           28.9        7,740           31.9          50             0.6 distribution Intersegment             (774      )   75.1       (625      )   81.0         (149     )   23.8     eliminations Consolidated purchased                $ 82,834     42.7  %     $ 70,253     44.0  %       $ 12,581    17.9    % transportation                                                                                                              Forward Air Corporation Components of Consolidated Revenue and Purchased Transportation (In thousands) (Unaudited)                                                                                                              Six months ended                          June 30,        Percent       June 30,        Percent                    Percent                                          of                            of                          2014          Revenue       2013         Revenue     Change       Change Operating Revenue Forward Air Airport-to-airport       $ 205,718       71.3  %       $ 187,925       78.2  %     $ 17,793       9.5   % Logistics services Expedited full           36,628          12.7          36,081          15.0        547            1.5 truckload - TLX Intermodal/drayage       23,346       8.1          2,711        1.1        20,635      761.2  Total Logistics          59,974          20.8          38,792          16.2        21,182         54.6 services Other Forward Air        22,761       7.9          13,472       5.6        9,289       69.0   services Forward Air -            288,453      78.9         240,189      79.7       48,264      20.1   Total revenue TQI - Pharmaceutical           24,743          6.8           16,114          5.3         8,629          53.5 services Forward Air Solutions - Pool         54,257          14.9          46,554          15.5        7,703          16.5 distribution Intersegment             (2,033    )   (0.6  )       (1,493    )   (0.5  )     (540     )   36.2   eliminations Consolidated             $ 365,420    100.0 %       $ 301,364    100.0 %     $ 64,056    21.3  % operating revenue                                                                                                                                   Six months ended                          June 30,        Percent       June 30,        Percent                    Percent                                          of                            of                          2014          Revenue       2013         Revenue     Change       Change Purchased Transportation Forward Air Airport-to-airport       $ 85,525        41.6  %       $ 76,465        40.7  %     $ 9,060        11.8  % Logistics services Expedited full           28,370          77.5          27,034          74.9        1,336          4.9 truckload - TLX Intermodal/drayage       9,893        42.4         1,620        59.8       8,273       510.7  Total Logistics          38,263          63.8          28,654          73.9        9,609          33.5 services Other Forward Air        5,584        24.5         3,890        28.9       1,694       43.5   services Forward Air - Total purchased          129,372      44.9         109,009      45.4       20,363      18.7   transportation TQI - Pharmaceutical           12,680          51.2          8,914           55.3        3,766          42.2 services Forward Air Solutions - Pool         15,914          29.3          14,527          31.2        1,387          9.5 distribution Intersegment             (1,581    )   77.8         (1,198    )   80.2       (383     )   32.0   eliminations Consolidated purchased                $ 156,385    42.8  %       $ 131,252    43.6  %     $ 25,133    19.1  % transportation                                                                                                            Forward Air Corporation Consolidated Balance Sheets (In thousands) (Unaudited)                                                 June 30,      December 31,                                                   2014            2013 (a) Assets Current assets: Cash and cash equivalents                         $ 24,943        $   127,367 Accounts receivable, net                          97,560          76,500 Other current assets                              14,655         16,493 Total current assets                              137,158         220,360                                                                    Property and equipment                            303,449         271,050 Less accumulated depreciation and                 124,068        116,287 amortization Net property and equipment                        179,381         154,763 Goodwill and other acquired intangibles: Goodwill                                          138,839         88,496 Other acquired intangibles, net of                74,560         40,110 accumulated amortization Total net goodwill and other acquired             213,399         128,606 intangibles Other assets                                      2,551          2,540 Total assets                                      $ 532,489      $   506,269                                                                    Liabilities and Shareholders’ Equity Current liabilities: Accounts payable                                  $ 21,421        $   16,267 Accrued expenses                                  21,956          18,275 Current portion of debt and capital lease         294            69 obligations Total current liabilities                         43,671          34,611                                                                    Debt and capital lease obligations, less          1,415           3 current portion Other long-term liabilities                       7,729           8,940 Deferred income taxes                             29,013          26,850                                                                    Shareholders’ equity: Common stock                                      306             305 Additional paid-in capital                        123,688         107,726 Retained earnings                                 326,667        327,834 Total shareholders’ equity                        450,661        435,865 Total liabilities and shareholders’ equity        $ 532,489      $   506,269                                                                    (a) Taken from audited financial statements, which are not presented in their entirety.    Forward Air Corporation Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)                                                                                                        Three months ended                                                      June 30,     June 30,                                                      2014           2013 Operating activities: Net income                                           $ 17,178       $ 13,831 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization                        7,751          5,971 Share-based compensation                             1,677          1,536 Gain on disposal of property and equipment           (128     )     (368     ) Provision for recovery on receivables                (127     )     (11      ) Provision for revenue adjustments                    609            627 Deferred income tax                                  1,441          2,086 Excess tax benefit for stock options exercised       (270     )     (632     ) Changes in operating assets and liabilities Accounts receivable                                  (4,234   )     1,185 Prepaid expenses and other current assets            (9,478   )     (1,360   ) Accounts payable and accrued expenses                4,764         (6,219   ) Net cash provided by operating activities            19,183         16,646                                                                               Investing activities: Proceeds from disposal of property and               383            884 equipment Purchases of property and equipment                  (13,872  )     (15,812  ) Acquisition of business, net of cash acquired        —              (109     ) Other                                                (133     )     (4       ) Net cash used in investing activities                (13,622  )     (15,041  )                                                                               Financing activities: Payments of debt and capital lease obligations       (87      )     (75      ) Proceeds from exercise of stock options              1,740          10,219 Payments of cash dividends                           (3,746   )     (3,047   ) Repurchase of common stock (repurchase               (19,985  )     — program) Common stock issued under employee stock             148            137 purchase plan Cash settlement of share-based awards for            (2       )     — minimum tax withholdings Excess tax benefit for stock options exercised       270           632       Net cash (used in) provided by financing             (21,662  )     7,866     activities Net (decrease) increase in cash                      (16,101  )     9,471 Cash at beginning of period                          41,044        71,630    Cash at end of period                                $ 24,943      $ 81,101                                                                                  Forward Air Corporation Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)                                                                                                        Six months ended                                                      June 30,     June 30,                                                      2014           2013 Operating activities: Net income                                           $ 27,379       $ 24,685 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization                        14,764         11,157 Share-based compensation                             3,329          3,094 Gain on disposal of property and equipment           (112     )     (283     ) Provision for (recovery) loss on receivables         (85      )     290 Provision for revenue adjustments                    1,250          1,126 Deferred income tax                                  1,573          2,936 Excess tax benefit for stock options exercised       (907     )     (2,870   ) Changes in operating assets and liabilities Accounts receivable                                  (12,727  )     3,196 Prepaid expenses and other current assets            (2,429   )     (2,090   ) Accounts payable and accrued expenses                7,180         (3,991   ) Net cash provided by operating activities            39,215         37,250                                                                               Investing activities: Proceeds from disposal of property and               462            1,048 equipment Purchases of property and equipment                  (33,420  )     (27,994  ) Acquisition of business, net of cash acquired        (82,998  )     (45,328  ) Other                                                (193     )     (60      ) Net cash used in investing activities                (116,149 )     (72,334  )                                                                               Financing activities: Payments of debt and capital lease obligations       (9,578   )     (20,303  ) Proceeds from exercise of stock options              11,580         28,179 Payments of cash dividends                           (7,479   )     (6,014   ) Repurchase of common stock (repurchase               (19,985  )     — program) Common stock issued under employee stock             148            137 purchase plan Cash settlement of share-based awards for            (1,083   )     (866     ) minimum tax withholdings Excess tax benefit for stock options exercised       907           2,870     Net cash (used in) provided by financing             (25,490  )     4,003     activities Net decrease in cash                                 (102,424 )     (31,081  ) Cash at beginning of period                          127,367       112,182   Cash at end of period                                $ 24,943      $ 81,101                                                                                  Forward Air Corporation Segment Information (In millions) (Unaudited)                    Three months ended                      June 30,    Percent   June 30,    Percent              Percent                                    of                        of                      2014          Revenue     2013          Revenue     Change       Change Operating revenue Forward Air          $ 154.3       79.5  %     $ 124.1       77.7  %     $ 30.2       24.3   % FASI                 26.9          13.9        24.3          15.2        2.6          10.7 TQI                  13.7          7.1         12.2          7.6         1.5          12.3 Intercompany         (1.0    )     (0.5  )     (0.8    )     (0.5  )     (0.2   )     25.0    eliminations Total                193.9        100.0      159.8        100.0      34.1        21.3                                                                                                  Purchased transportation Forward Air          68.6          44.5        56.5          45.5        12.1         21.4 FASI                 7.8           29.0        7.7           31.7        0.1          1.3 TQI                  7.2           52.5        6.7           54.9        0.5          7.5 Intercompany         (0.8    )     80.0       (0.6    )     75.0       (0.2   )     33.3    eliminations Total                82.8         42.7       70.3         44.0       12.5        17.8                                                                                                  Salaries, wages and employee benefits Forward Air          32.9          21.3        25.6          20.6        7.3          28.5 FASI                 9.3           34.6        8.5           35.0        0.8          9.4 TQI                  2.2          16.1       1.9          15.6       0.3         15.8    Total                44.4         22.9       36.0         22.5       8.4         23.3                                                                                                  Operating leases Forward Air          6.2           4.0         4.9           4.0         1.3          26.5 FASI                 2.0           7.4         1.9           7.8         0.1          5.3 TQI                  —            —          0.1          0.8        (0.1   )     (100.0 ) Total                8.2          4.2        6.9          4.3        1.3         18.8                                                                                                  Depreciation and amortization Forward Air          5.4           3.5         4.1           3.3         1.3          31.7 FASI                 1.4           5.2         1.2           4.9         0.2          16.7 TQI                  1.0          7.3        0.7          5.7        0.3         42.9    Total                7.8          4.0        6.0          3.8        1.8         30.0                                                                                                  Insurance and claims Forward Air          2.4           1.6         2.2           1.8         0.2          9.1 FASI                 0.5           1.9         0.8           3.3         (0.3   )     (37.5  ) TQI                  0.2          1.5        0.2          1.7        —           —       Total                3.1          1.6        3.2          2.0        (0.1   )     (3.1   )                                                                                               Fuel expense Forward Air          2.2           1.4         1.0           0.8         1.2          120.0 FASI                 1.8           6.7         1.5           6.2         0.3          20.0 TQI                  1.2          8.8        1.2          9.8        —           —       Total                5.2          2.7        3.7          2.3        1.5         40.5                                                                                                  Other operating expenses Forward Air          11.4          7.4         7.9           6.4         3.5          44.3 FASI                 3.1           11.5        2.9           11.9        0.2          6.9 TQI                  0.5           3.6         0.6           4.9         (0.1   )     (16.7  ) Intercompany         (0.2    )     20.0       (0.2    )     25.0       —           —       eliminations Total                14.8         7.7        11.2         7.0        3.6         32.1                                                                                                  Income from operations Forward Air          25.2          16.3        21.9          17.6        3.3          15.1 FASI                 1.0           3.7         (0.2    )     (0.8  )     1.2          (600.0 ) TQI                  1.4          10.2       0.8          6.6        0.6         75.0    Total                $ 27.6       14.2  %     $ 22.5       14.1  %     $ 5.1       22.7   %                                                                                                 Forward Air Corporation Segment Information (In millions) (Unaudited)                    Six months ended                      June 30,    Percent   June 30,    Percent              Percent                                    of                        of                      2014          Revenue     2013          Revenue     Change       Change Operating revenue Forward Air          $ 288.4       78.9  %     $ 240.2       79.7  %     $ 48.2       20.1   % FASI                 54.3          14.9        46.6          15.5        7.7          16.5 TQI                  24.7          6.8         16.1          5.3         8.6          53.4 Intercompany         (2.0    )     (0.6  )     (1.5    )     (0.5  )     (0.5   )     33.3    eliminations Total                365.4        100.0      301.4        100.0      64.0        21.2                                                                                                  Purchased transportation Forward Air          129.4         44.9        109.0         45.4        20.4         18.7 FASI                 15.9          29.3        14.5          31.1        1.4          9.7 TQI                  12.7          51.4        8.9           55.3        3.8          42.7 Intercompany         (1.6    )     80.0       (1.2    )     80.0       (0.4   )     33.3    eliminations Total                156.4        42.8       131.2        43.6       25.2        19.2                                                                                                  Salaries, wages and employee benefits Forward Air          63.0          21.8        50.7          21.1        12.3         24.3 FASI                 18.7          34.4        16.7          35.8        2.0          12.0 TQI                  4.1          16.6       2.6          16.1       1.5         57.7    Total                85.8         23.5       70.0         23.2       15.8        22.6                                                                                                  Operating leases Forward Air          12.0          4.2         10.0          4.2         2.0          20.0 FASI                 4.5           8.3         3.9           8.4         0.6          15.4 TQI                  —            —          0.1          0.6        (0.1   )     (100.0 ) Total                16.5         4.5        14.0         4.7        2.5         17.9                                                                                                  Depreciation and amortization Forward Air          10.3          3.6         7.9           3.3         2.4          30.4 FASI                 2.7           5.0         2.4           5.1         0.3          12.5 TQI                  1.7          6.9        0.9          5.6        0.8         88.9    Total                14.7         4.0        11.2         3.7        3.5         31.3                                                                                                  Insurance and claims Forward Air          5.5           1.9         4.1           1.7         1.4          34.1 FASI                 1.3           2.4         1.5           3.2         (0.2   )     (13.3  ) TQI                  0.4          1.6        0.2          1.3        0.2         100.0   Total                7.2          2.0        5.8          1.9        1.4         24.1                                                                                                  Fuel expense Forward Air          4.1           1.4         2.0           0.8         2.1          105.0 FASI                 3.5           6.5         3.1           6.7         0.4          12.9 TQI                  2.4          9.7        1.6          9.9        0.8         50.0    Total                10.0         2.7        6.7          2.2        3.3         49.3                                                                                                  Other operating expenses Forward Air          23.5          8.1         18.2          7.6         5.3          29.1 FASI                 6.7           12.3        5.5           11.8        1.2          21.8 TQI                  1.1           4.5         0.8           5.0         0.3          37.5 Intercompany         (0.4    )     20.0       (0.3    )     20.0       (0.1   )     33.3    eliminations Total                30.9         8.5        24.2         8.0        6.7         27.7                                                                                                  Income (loss) from operations Forward Air          40.6          14.1        38.3          15.9        2.3          6.0 FASI                 1.0           1.8         (1.0    )     (2.1  )     2.0          (200.0 ) TQI                  2.3          9.3        1.0          6.2        1.3         130.0   Total                $ 43.9       12.0  %     $ 38.3       12.7  %     $ 5.6       14.6   %                                                                                                 Forward Air Corporation Forward Air Inc. Operating Statistics                                                                                                            Three months ended                                            June 30,      June 30,      Percent                                            2014          2013          Change                                                                               Operating ratio                            83.7    %     82.4    %     1.6   %                                                                               Business days                              64.0          64.0          — Business weeks                             12.8          12.8          —                                                                                                                                                             Airport-to-airport: Tonnage Total pounds ¹                             473,146       452,171       4.6 Average weekly pounds ¹                    36,965        35,326        4.6                                                                               Linehaul shipments Total linehaul                             731,002       714,677       2.3 Average weekly                             57,110        55,834        2.3                                                                               Forward Air Complete shipments             139,572       115,001       21.4 As a percentage of linehaul                19.1    %     16.1    %     18.6 shipments                                                                               Average linehaul shipment size             647           633           2.2                                                                               Revenue per pound ² Linehaul yield                             $ 17.66       $ 16.98       3.2 Fuel surcharge impact                      2.03          1.87          0.7 Forward Air Complete impact                3.13         2.68         2.1    Total airport-to-airport yield             $ 22.82       $ 21.53       6.0                                                                                                                                                             Expedited full truckload - TLX: Miles Owner operator ¹                           6,930         9,147         (24.2 ) Third party ¹                              4,570        3,328        37.3   Total Miles                                11,500        12,475        (7.8  )                                                                               Revenue per mile                           $ 1.67        $ 1.49        12.1                                                                               Cost per mile                              $ 1.28        $ 1.11        15.3  %                                                                                                                                                             ¹ - In thousands ² - In cents per pound; percentage change is expressed as a percent of total yield.    Forward Air Corporation Forward Air Inc. Operating Statistics                                                                                                        Six months ended                                        June 30,        June 30,        Percent                                        2014            2013            Change                                                                               Operating ratio                        85.9      %     84.1      %     2.1   %                                                                               Business days                          127.0           127.0           — Business weeks                         25.4            25.4            —                                                                                                                                                             Airport-to-airport: Tonnage Total pounds ¹                         914,861         858,085         6.6 Average weekly pounds ¹                36,018          33,783          6.6                                                                               Linehaul shipments Total linehaul                         1,393,482       1,350,342       3.2 Average weekly                         54,861          53,163          3.2                                                                               Forward Air Complete shipments         247,146         229,086         7.9 As a percentage of linehaul            17.7      %     17.0      %     4.1 shipments                                                                               Average linehaul shipment size         657             635             3.5                                                                               Revenue per pound ² Linehaul yield                         $  17.49        $  17.14        1.6 Fuel surcharge impact                  2.03            1.95            0.4 Forward Air Complete impact            2.97           2.81           0.7    Total airport-to-airport yield         $  22.49        $  21.90        2.7                                                                                                                                                             Expedited full truckload - TLX: Miles Owner operator ¹                       13,898          17,484          (20.5 ) Third party ¹                          8,652          6,848          26.3   Total Miles                            22,550          24,332          (7.3  )                                                                               Revenue per mile                       $  1.62         $  1.48         9.5                                                                               Cost per mile                          $  1.26         $  1.11         13.5  %                                                                                                                                                             ¹ - In thousands ² - In cents per pound; percentage change is expressed as a percent of total yield.   Important Information  This press release contains “forward-looking statements,” as defined in Section27A of the Securities Act of 1933, as amended, and Section21E 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 Rodney L. Bell, 423-636-7000 rbell@forwardair.com  
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