FORWARD AIR CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - 8-K - FORWARD AIR CORP	form8-kq32014earningsrelea.htm
EX-99.2 - EXHIBIT 99.2 - FORWARD AIR CORP	exhibit992q32014fahistoric.htm

NEWS RELEASE

FORWARD AIR CORPORATION REPORTS

THIRD QUARTER 2014 RESULTS AND

ANNOUNCES QUARTERLY CASH DIVIDEND

GREENEVILLE, Tenn.- (BUSINESS WIRE) - October 23, 2014 - Forward Air Corporation (NASDAQ:FWRD) today reported operating revenue, income from operations, net income and diluted earnings per share for the three and nine months ended September 30, 2014.

Operating revenue for the quarter ended September 30, 2014 increased 18.5% to $201.5 million from $170.0 million for the same quarter in 2013. Income from operations was $26.9 million, compared with $22.9 million in the prior-year quarter. As a percent of operating revenue, income from operations was 13.3%, compared with 13.5% in the same quarter last year. Net income during the period was $16.7 million compared to $14.2 million in the prior-year quarter. Net income per diluted share for the third quarter of 2014 was $0.54 compared with $0.46 in the prior-year quarter.

Operating revenue for the nine months ended September 30, 2014 increased 20.3% to $566.9 million from $471.4 million for the same period in 2013. Income from operations was $70.8 million, compared with $61.1 million in the prior-year period. As a percent of operating revenue, income from operations was 12.5%, compared with 13.0% in the same period last year. Net income during the period was $44.1 million compared to $38.9 million in the prior-year period. Net income per diluted share for the nine months ended September 30, 2014 was $1.41 compared with $1.27 in the prior-year period.

Bruce A. Campbell, Chairman, President, and CEO, commenting on the third quarter said, “We were pleased with our revenue and operating income performance across all of our business segments especially in light of the challenging capacity environment and its impact on our cost structure.”

Commenting on the Forward Air, Inc. (“FAI”) business segment, Mr. Campbell said, “FAI revenue continues to benefit from the acquisition of Central States Trucking Company (“CST”) along with strong year-over-year growth in our tonnage volumes and improving airport-to-airport pricing. These positive trends were partially offset by higher purchased transportation and recruiting costs resulting from our efforts to grow our fleet to keep pace with our increased shipping activity. CST contributed approximately $21.1 million of revenue and $2.5 million of operating income during the third quarter of 2014.”

Commenting on the Forward Air Solutions (“Solutions”) segment, Mr. Campbell said, “Solutions continues to show significant improvement in operating income driven primarily by the general rate increases initiated in the first quarter and excellent operating discipline. Compared to the prior-year quarter results, Solutions operating results improved over $0.4 million, or 50.0% incremental profitability.”

Addressing the Total Quality, Inc. (“TQI”) business segment, Mr. Campbell said, “Despite a lack of revenue growth, we continue to experience improvement in operating income as a percentage of revenue as a result of operating efficiencies initiated during 2014.”

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.”

Commenting on the Company's guidance for the fourth quarter, Rodney L. Bell, Senior Vice President and CFO said, “We anticipate that our fourth 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 $0.60 and $0.66 per share. This compares to $0.50 per share in the fourth quarter of 2013.”

On October 23, 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 November 21, 2014, and is expected to be paid on December 8, 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 third quarter 2014 results on Friday, October 24, 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						Nine months ended
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
Operating revenue	$	201,477		$	170,033		$	566,897		$	471,396

Operating expenses:
Purchased transportation	85,874			75,211			242,259			206,462
Salaries, wages and employee benefits	45,651			39,165			131,464			109,149
Operating leases	8,503			6,991			25,019			20,923
Depreciation and amortization	8,115			6,220			22,879			17,377
Insurance and claims	3,747			3,290			10,978			9,164
Fuel expense	5,012			3,871			14,990			10,535
Other operating expenses	17,669			12,428			48,537			36,634
Total operating expenses	174,571			147,176			496,126			410,244
Income from operations	26,906			22,857			70,771			61,152

Other income (expense):
Interest expense	(172		)	(145		)	(355		)	(401		)
Other, net	(55		)	27			144			72
Total other income (expense)	(227		)	(118		)	(211		)	(329		)
Income before income taxes	26,679			22,739			70,560			60,823
Income taxes	9,935			8,542			26,437			21,941
Net income and comprehensive income	$	16,744		$	14,197		$	44,123		$	38,882

Net income per share:
Basic	$	0.55		$	0.47		$	1.44		$	1.30
Diluted	$	0.54		$	0.46		$	1.41		$	1.27
Weighted average shares outstanding:
Basic	30,415			30,374			30,710			30,017
Diluted	30,932			30,986			31,234			30,677

Dividends per share:	$	0.12		$	0.10		$	0.36		$	0.30



Forward Air Corporation
Components of Consolidated Revenue and Purchased Transportation
(In thousands)
(Unaudited)

	Three months ended
	September 30,			Percent of		September 30,			Percent of					Percent
	2014			Revenue		2013			Revenue		Change			Change
Operating Revenue
Forward Air
Airport-to-airport	$	111,429		69.6	%	$	101,238		78.6	%	$	10,191		10.1	%
Logistics services
Expedited full truckload - TLX	19,955			12.5		19,138			14.9		817			4.3
Intermodal/drayage	15,799			9.9		1,090			0.8		14,709			1,349.4
Total Logistics services	35,754			22.4		20,228			15.7		15,526			76.8
Other Forward Air services	12,902			8.0		7,325			5.7		5,577			76.1
Forward Air - Total revenue	160,085			79.4		128,791			75.8		31,294			24.3
TQI - Pharmaceutical services	12,029			6.0		12,431			7.3		(402		)	(3.2	)
Forward Air Solutions - Pool distribution	30,615			15.2		29,827			17.5		788			2.6
Intersegment eliminations	(1,252		)	(0.6	)	(1,016		)	(0.6	)	(236		)	23.2
Consolidated operating revenue	$	201,477		100.0	%	$	170,033		100.0	%	$	31,444		18.5	%

	Three months ended
	September 30,			Percent of		September 30,			Percent of					Percent
	2014			Revenue		2013			Revenue		Change			Change
Purchased Transportation
Forward Air
Airport-to-airport	$	47,720		42.8	%	$	42,542		42.0	%	$	5,178		12.2	%
Logistics services
Expedited full truckload - TLX	15,048			75.4		14,545			76.0		503			3.5
Intermodal/drayage	5,966			37.8		708			65.0		5,258			742.7
Total Logistics services	21,014			58.8		15,253			75.4		5,761			37.8
Other Forward Air services	3,191			24.7		2,116			28.9		1,075			50.8
Forward Air - Total purchased transportation	71,925			44.9		59,911			46.5		12,014			20.1
TQI - Pharmaceutical services	6,018			50.0		6,921			55.7		(903		)	(13.0	)
Forward Air Solutions - Pool distribution	8,767			28.6		9,094			30.5		(327		)	(3.6	)
Intersegment eliminations	(836		)	66.8		(715		)	70.4		(121		)	16.9
Consolidated purchased transportation	$	85,874		42.6	%	$	75,211		44.2	%	$	10,663		14.2	%



Forward Air Corporation
Components of Consolidated Revenue and Purchased Transportation
(In thousands)
(Unaudited)

	Nine months ended
	September 30,			Percent of		September 30,			Percent of					Percent
	2014			Revenue		2013			Revenue		Change			Change
Operating Revenue
Forward Air
Airport-to-airport	$	317,147		70.7	%	$	289,163		78.4	%	$	27,984		9.7	%
Logistics services
Expedited full truckload - TLX	56,582			12.6		55,219			15.0		1,363			2.5
Intermodal/drayage	39,146			8.7		3,801			1.0		35,345			929.9
Total Logistics services	95,728			21.3		59,020			16.0		36,708			62.2
Other Forward Air services	35,663			8.0		20,797			5.6		14,866			71.5
Forward Air - Total revenue	448,538			79.1		368,980			78.3		79,558			21.6
TQI - Pharmaceutical services	36,771			6.5		28,545			6.1		8,226			28.8
Forward Air Solutions - Pool distribution	84,872			15.0		76,381			16.1		8,491			11.1
Intersegment eliminations	(3,284		)	(0.6	)	(2,510		)	(0.5	)	(774		)	30.8
Consolidated operating revenue	$	566,897		100.0	%	$	471,396		100.0	%	$	95,501		20.3	%

	Nine months ended
	September 30,			Percent of		September 30,			Percent of					Percent
	2014			Revenue		2013			Revenue		Change			Change
Purchased Transportation
Forward Air
Airport-to-airport	$	133,245		42.0	%	$	119,007		41.2	%	$	14,238		12.0	%
Logistics services
Expedited full truckload - TLX	43,419			76.7		41,579			75.3		1,840			4.4
Intermodal/drayage	15,859			40.5		2,328			61.2		13,531			581.2
Total Logistics services	59,278			61.9		43,907			74.4		15,371			35.0
Other Forward Air services	8,774			24.6		6,006			28.9		2,768			46.1
Forward Air - Total purchased transportation	201,297			44.9		168,920			45.8		32,377			19.2
TQI - Pharmaceutical services	18,698			50.8		15,835			55.5		2,863			18.1
Forward Air Solutions - Pool distribution	24,681			29.1		23,621			30.9		1,060			4.5
Intersegment eliminations	(2,417		)	73.6		(1,914		)	76.3		(503		)	26.3
Consolidated purchased transportation	$	242,259		42.7	%	$	206,462		43.8	%	$	35,797		17.3	%



Forward Air Corporation
Consolidated Balance Sheets
(In thousands)
(Unaudited)
	September 30, 2014		December 31, 2013 (a)
Assets
Current assets:
Cash and cash equivalents	$	24,573	$	127,367
Accounts receivable, net	100,016		76,500
Other current assets	14,057		16,493
Total current assets	138,646		220,360

Property and equipment	303,755		271,050
Less accumulated depreciation and amortization	127,259		116,287
Net property and equipment	176,496		154,763
Goodwill and other acquired intangibles:
Goodwill	140,678		88,496
Other acquired intangibles, net of accumulated amortization	71,778		40,110
Total net goodwill and other acquired intangibles	212,456		128,606
Other assets	2,347		2,540
Total assets	$	529,945	$	506,269

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	21,395	$	16,267
Accrued expenses	23,356		18,275
Current portion of debt and capital lease obligations	280		69
Total current liabilities	45,031		34,611

Debt and capital lease obligations, less current portion	1,346		3
Other long-term liabilities	8,148		8,940
Deferred income taxes	28,838		26,850

Shareholders’ equity:
Common stock	302		305
Additional paid-in capital	126,516		107,726
Retained earnings	319,764		327,834
Total shareholders’ equity	446,582		435,865
Total liabilities and shareholders’ equity	$	529,945	$	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
	September 30, 2014			September 30, 2013
Operating activities:
Net income	$	16,744		$	14,197
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	8,115			6,220
Share-based compensation	1,676			1,525
Gain on disposal of property and equipment	(329		)	(185		)
Provision for loss (recovery) on receivables	46			(56		)
Provision for revenue adjustments	646			579
Deferred income tax	156			1,722
Excess tax benefit for stock options exercised	353			(337		)
Changes in operating assets and liabilities
Accounts receivable	(3,148		)	(7,458		)
Prepaid expenses and other current assets	1,032			515
Accounts payable and accrued expenses	587			6,515
Net cash provided by operating activities	25,878			23,237

Investing activities:
Proceeds from disposal of property and equipment	1,120			617
Purchases of property and equipment	(3,681		)	(5,272		)
Acquisition of business, net of cash acquired	(1,350		)	—
Other	246			(51		)
Net cash used in investing activities	(3,665		)	(4,706		)

Financing activities:
Payments of debt and capital lease obligations	(84		)	(48		)
Proceeds from exercise of stock options	1,503			1,687
Payments of cash dividends	(3,662		)	(3,057		)
Repurchase of common stock (repurchase program)	(19,987		)	—
Excess tax benefit for stock options exercised	(353		)	337
Net cash used in financing activities	(22,583		)	(1,081		)
Net (decrease) increase in cash	(370		)	17,450
Cash at beginning of period	24,943			81,101
Cash at end of period	$	24,573		$	98,551



Forward Air Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

	Nine months ended
	September 30, 2014			September 30, 2013
Operating activities:
Net income	$	44,123		$	38,882
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	22,879			17,377
Share-based compensation	5,005			4,619
Gain on disposal of property and equipment	(441		)	(468		)
Provision for (recovery) loss on receivables	(39		)	234
Provision for revenue adjustments	1,896			1,705
Deferred income tax	1,729			4,658
Excess tax benefit for stock options exercised	(554		)	(3,207		)
Changes in operating assets and liabilities
Accounts receivable	(15,875		)	(4,262		)
Prepaid expenses and other current assets	(1,397		)	(1,575		)
Accounts payable and accrued expenses	7,767			2,524
Net cash provided by operating activities	65,093			60,487

Investing activities:
Proceeds from disposal of property and equipment	1,582			1,665
Purchases of property and equipment	(37,101		)	(33,266		)
Acquisition of business, net of cash acquired	(84,348		)	(45,328		)
Other	53			(111		)
Net cash used in investing activities	(119,814		)	(77,040		)

Financing activities:
Payments of debt and capital lease obligations	(9,662		)	(20,351		)
Proceeds from exercise of stock options	13,083			29,866
Payments of cash dividends	(11,141		)	(9,071		)
Repurchase of common stock (repurchase program)	(39,972		)	—
Common stock issued under employee stock purchase plan	148			137
Cash settlement of share-based awards for minimum tax withholdings	(1,083		)	(866		)
Excess tax benefit for stock options exercised	554			3,207
Net cash (used in) provided by financing activities	(48,073		)	2,922
Net decrease in cash	(102,794		)	(13,631		)
Cash at beginning of period	127,367			112,182
Cash at end of period	$	24,573		$	98,551



Forward Air Corporation
Segment Information
(In millions)
(Unaudited)
	Three months ended
	September 30,			Percent of		September 30,			Percent of					Percent
	2014			Revenue		2013			Revenue		Change			Change
Operating revenue
Forward Air	$	160.1		79.4	%	$	128.8		75.8	%	$	31.3		24.3	%
FASI	30.6			15.2		29.8			17.5		0.8			2.7
TQI	12.0			6.0		12.4			7.3		(0.4		)	(3.2	)
Intercompany eliminations	(1.2		)	(0.6	)	(1.0		)	(0.6	)	(0.2		)	20.0
Total	201.5			100.0		170.0			100.0		31.5			18.5

Purchased transportation
Forward Air	71.9			44.9		59.9			46.5		12.0			20.0
FASI	8.8			28.8		9.1			30.5		(0.3		)	(3.3	)
TQI	6.0			50.0		6.9			55.6		(0.9		)	(13.0	)
Intercompany eliminations	(0.8		)	66.7		(0.7		)	70.0		(0.1		)	14.3
Total	85.9			42.6		75.2			44.2		10.7			14.2

Salaries, wages and employee benefits
Forward Air	33.1			20.7		27.3			21.2		5.8			21.2
FASI	10.4			34.0		10.0			33.6		0.4			4.0
TQI	2.2			18.3		1.8			14.5		0.4			22.2
Total	45.7			22.7		39.1			23.0		6.6			16.9

Operating leases
Forward Air	6.5			4.1		4.9			3.8		1.6			32.7
FASI	2.0			6.5		2.1			7.0		(0.1		)	(4.8	)
TQI	—			—		—			—		—			—
Total	8.5			4.2		7.0			4.1		1.5			21.4

Depreciation and amortization
Forward Air	5.7			3.6		4.2			3.3		1.5			35.7
FASI	1.5			4.9		1.3			4.4		0.2			15.4
TQI	0.9			7.5		0.7			5.7		0.2			28.6
Total	8.1			4.0		6.2			3.7		1.9			30.6

Insurance and claims
Forward Air	3.1			1.9		2.3			1.8		0.8			34.8
FASI	0.4			1.3		0.8			2.7		(0.4		)	(50.0	)
TQI	0.2			1.7		0.2			1.6		—			—
Total	3.7			1.9		3.3			1.9		0.4			12.1

Fuel expense
Forward Air	2.1			1.3		0.9			0.7		1.2			133.3
FASI	1.8			5.9		1.7			5.7		0.1			5.9
TQI	1.1			9.2		1.3			10.5		(0.2		)	(15.4	)
Total	5.0			2.5		3.9			2.3		1.1			28.2

Other operating expenses
Forward Air	13.5			8.4		8.7			6.7		4.8			55.2
FASI	3.9			12.7		3.4			11.4		0.5			14.7
TQI	0.7			5.8		0.6			4.8		0.1			16.7
Intercompany eliminations	(0.4		)	33.3		(0.3		)	30.0		(0.1		)	33.3
Total	17.7			8.8		12.4			7.3		5.3			42.7

Income from operations
Forward Air	24.2			15.1		20.6			16.0		3.6			17.5
FASI	1.8			5.9		1.4			4.7		0.4			28.6
TQI	0.9			7.5		0.9			7.3		—			—
Total	$	26.9		13.3	%	$	22.9		13.5	%	$	4.0		17.5	%



Forward Air Corporation
Segment Information
(In millions)
(Unaudited)
	Nine months ended
	September 30,			Percent of		September 30,			Percent of					Percent
	2014			Revenue		2013			Revenue		Change			Change
Operating revenue
Forward Air	$	448.5		79.1	%	$	369.0		78.3	%	$	79.5		21.5	%
FASI	84.9			15.0		76.4			16.2		8.5			11.1
TQI	36.8			6.5		28.5			6.0		8.3			29.1
Intercompany eliminations	(3.3		)	(0.6	)	(2.5		)	(0.5	)	(0.8		)	32.0
Total	566.9			100.0		471.4			100.0		95.5			20.3

Purchased transportation
Forward Air	201.3			44.9		168.9			45.8		32.4			19.2
FASI	24.6			29.0		23.6			30.9		1.0			4.2
TQI	18.7			50.8		15.9			55.8		2.8			17.6
Intercompany eliminations	(2.4		)	72.7		(1.9		)	76.0		(0.5		)	26.3
Total	242.2			42.7		206.5			43.8		35.7			17.3

Salaries, wages and employee benefits
Forward Air	96.1			21.4		78.0			21.1		18.1			23.2
FASI	29.0			34.2		26.8			35.1		2.2			8.2
TQI	6.4			17.4		4.4			15.4		2.0			45.5
Total	131.5			23.2		109.2			23.2		22.3			20.4

Operating leases
Forward Air	18.4			4.1		14.9			4.0		3.5			23.5
FASI	6.5			7.7		5.9			7.7		0.6			10.2
TQI	0.1			0.3		0.1			0.4		—			—
Total	25.0			4.4		20.9			4.4		4.1			19.6

Depreciation and amortization
Forward Air	16.0			3.6		12.1			3.3		3.9			32.2
FASI	4.2			4.9		3.6			4.7		0.6			16.7
TQI	2.7			7.3		1.7			6.0		1.0			58.8
Total	22.9			4.0		17.4			3.7		5.5			31.6

Insurance and claims
Forward Air	8.7			1.9		6.5			1.8		2.2			33.8
FASI	1.8			2.1		2.3			3.0		(0.5		)	(21.7	)
TQI	0.5			1.4		0.4			1.4		0.1			25.0
Total	11.0			2.0		9.2			1.9		1.8			19.6

Fuel expense
Forward Air	6.2			1.4		2.9			0.8		3.3			113.8
FASI	5.3			6.2		4.8			6.3		0.5			10.4
TQI	3.5			9.5		2.8			9.8		0.7			25.0
Total	15.0			2.6		10.5			2.2		4.5			42.9

Other operating expenses
Forward Air	37.0			8.3		26.9			7.3		10.1			37.5
FASI	10.7			12.6		9.0			11.8		1.7			18.9
TQI	1.7			4.6		1.3			4.5		0.4			30.8
Intercompany eliminations	(0.9		)	27.3		(0.6		)	24.0		(0.3		)	50.0
Total	48.5			8.6		36.6			7.8		11.9			32.5

Income from operations
Forward Air	64.8			14.4		58.8			15.9		6.0			10.2
FASI	2.8			3.3		0.4			0.5		2.4			600.0
TQI	3.2			8.7		1.9			6.7		1.3			68.4
Total	$	70.8		12.5	%	$	61.1		13.0	%	$	9.7		15.9	%



Forward Air Corporation
Forward Air Inc. Operating Statistics

	Three months ended
	September 30,			September 30,			Percent
	2014			2013			Change

Operating ratio	84.9		%	84.0		%	1.1	%

Business days	64.0			64.0			—
Business weeks	12.8			12.8			—


Airport-to-airport:
Tonnage
Total pounds ¹	484,827			462,297			4.9
Average weekly pounds ¹	37,877			36,117			4.9

Linehaul shipments
Total linehaul	734,163			688,257			6.7
Average weekly	57,356			53,770			6.7

Forward Air Complete shipments	146,024			124,184			17.6
As a percentage of linehaul shipments	19.9		%	18.0		%	10.6

Average linehaul shipment size	660			672			(1.8	)

Revenue per pound ²
Linehaul yield	$	17.69		$	16.97		3.3
Fuel surcharge impact	1.94			1.85			0.4
Forward Air Complete impact	3.35			3.08			1.2
Total airport-to-airport yield	$	22.98		$	21.90		4.9


Expedited full truckload - TLX:
Miles
Owner operator ¹	6,391			8,915			(28.3	)
Third party ¹	4,895			3,815			28.3
Total Miles	11,286			12,730			(11.3	)

Revenue per mile	$	1.77		$	1.50		18.0

Cost per mile	$	1.33		$	1.14		16.7	%


¹ - In thousands
² - In dollars per hundred pound; percentage change is expressed as a percent of total yield.



Forward Air Corporation
Forward Air Inc. Operating Statistics

	Nine months ended
	September 30,			September 30,			Percent
	2014			2013			Change

Operating ratio	85.6		%	84.1		%	1.8	%

Business days	191.0			191.0			—
Business weeks	38.2			38.2			—


Airport-to-airport:
Tonnage
Total pounds ¹	1,399,687			1,320,382			6.0
Average weekly pounds ¹	36,641			34,565			6.0

Linehaul shipments
Total linehaul	2,127,645			2,038,599			4.4
Average weekly	55,698			53,366			4.4

Forward Air Complete shipments	393,170			353,270			11.3
As a percentage of linehaul shipments	18.5		%	17.3		%	6.9

Average linehaul shipment size	658			648			1.5

Revenue per pound ²
Linehaul yield	$	17.56		$	17.08		2.2
Fuel surcharge impact	2.00			1.92			0.4
Forward Air Complete impact	3.10			2.90			0.9
Total airport-to-airport yield	$	22.66		$	21.90		3.5


Expedited full truckload - TLX:
Miles
Owner operator ¹	20,288			26,399			(23.1	)
Third party ¹	13,547			10,663			27.0
Total Miles	33,835			37,062			(8.7	)

Revenue per mile	$	1.67		$	1.49		12.1

Cost per mile	$	1.28		$	1.12		14.3	%


¹ - In thousands
² - In dollars per hundred pound; percentage change is expressed as a percent of total yield.

Important Information

This press release contains “forward-looking statements,” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements other than historical information or statements of current condition and relate to future events or our future financial performance. Some forward-looking statements may be identified by use of such terms as “believes,” “anticipates,” “intends,” “plans,” “estimates,” “projects” or “expects.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The following is a list of factors, among others, that could cause actual results to differ materially from those contemplated by the forward-looking statements: economic factors such as recessions, inflation, higher interest rates and downturns in customer business cycles, our inability to maintain our historical growth rate because of a decreased volume of freight moving through our network or decreased average revenue per pound of freight moving through our network, increasing competition and pricing pressure, surplus inventories, loss of a major customer, the creditworthiness of our customers and their ability to pay for services rendered, our ability to secure terminal facilities in desirable locations at reasonable rates, the inability of our information systems to handle an increased volume of freight moving through our network, changes in fuel prices, claims for property damage, personal injuries or workers' compensation, employment matters including rising health care costs, enforcement of and changes in governmental regulations, environmental and tax matters, the handling of hazardous materials, the availability and compensation of qualified independent owner-operators and freight handlers needed to serve our transportation needs and our inability to successfully integrate acquisitions. As a result of the foregoing, no assurance can be given as to future financial condition, cash flows or results of operations. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

-END-

CONTACT:

Forward Air Corporation

Rodney L. Bell, 423-636-7000

rbell@forwardair.com

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