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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