Forward Air Corporation Reports Second Quarter 2012 Results
Forward Air Corporation reported revenue, operating income, net income and diluted earnings per share for the second quarter and six months ended June 30, 2012.
Operating revenue for the quarter ended June 30, 2012 increased 12.2% to $148.3 million from $132.2 million for the same quarter in 2011. Income from operations was $23.1 million, compared with $19.9 million in the prior-year quarter. As a percent of operating revenue, income from operations increased to 15.6% from 15.1% for the same quarter last year. Net income during the period increased to $14.2 million from $12.0 million in the prior-year quarter. Income per diluted share for the second quarter of 2012 was $0.48 compared with $0.40 in the prior-year quarter.
Operating revenue for the six months ended June 30, 2012 increased 13.1% to $285.4 million from $252.4 million for the same period in 2011. Income from operations was $39.9 million, compared with $33.2 million in the prior-year period. As a percent of operating revenue, income from operations increased to 14.0% for the first six months of 2012 from 13.1% for the same period in 2011. Net income during the period was $24.4 million compared to $19.8 million in the prior-year period. Income per diluted share from operations for the first six months of 2012 was $0.83 compared with $0.67 in the prior-year period.
Bruce A. Campbell, Chairman, President, and CEO, commenting on the second quarter said, “As anticipated, we delivered a solid second quarter operation performance. Additionally, we continued to have strong demand for our Forward Air, Inc. service offerings, which, in turn, drove double digit revenue growth and produced a 20% increase in our income per diluted share.”
Commenting further, Mr. Campbell said, “Our recent positive yield trends did moderate during the quarter as we passed the June anniversary of our 2011 general rate increase and experienced a reduction in the benefit derived from net fuel surcharges as a result of lower diesel prices. We will implement our 2012 general rate increase effective September 2, 2012. The anticipated net benefit on airport to airport revenue is estimated to be approximately 3% on a monthly basis.”
Turning to the Forward Air Solutions business segment, Mr. Campbell said, “Over the course of the second quarter Solutions continued to steadily improve posting essentially a break-even compared to an operating loss of nearly half a million dollars in the second quarter of 2011. Our Solutions team is intensely focused on being profitable for the remainder of the year.”
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. Without them, these results would not have been possible.”
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 2012 revenues will increase in the range of 10% to 14% over the comparable 2011 period, and we expect income per diluted share to be between $0.47 and $0.51 per share. This compares to $0.44 per share in the third quarter of 2011.”
Forward Air will hold a conference call to discuss the second quarter 2012 results on Friday, July 20, 2012 at 9:00 a.m. EDT. The Company's conference call will be available on their website or by dialing 800-230-1059. A replay of the conference call will be available beginning shortly after the completion of the live call.