Forward Air Corporation Changes Timing of Fourth Quarter 2023 Earnings Release to February 28

Rhea-AI Summary

Forward Air Corporation (NASDAQ: FWRD) provides an update on the repayment of term B loans and changes the date for its fourth quarter 2023 earnings release. The company plans to release its earnings on February 28 and hold a conference call on February 29 to discuss the results.

Insights

Financial Analyst

The amendment to Forward Air Corporation's credit agreement, which allows for a temporary increase in the maximum consolidated first lien net leverage ratio, is a strategic move that can impact the company's financial flexibility. By easing the financial covenant, Forward may have more leeway to manage its debt obligations, potentially supporting its investment in growth initiatives or acquisitions like the recent Omni deal. However, investors should closely monitor the company's leverage ratios and interest coverage to assess the risk of increased debt levels.

Repaying $80 million of the term B loans not only reduces the company's interest expenses but also improves its debt-to-equity ratio, which could be favorably perceived by the market. These actions might indicate that the company's cash flows are robust enough to handle its current debt load, which can be a positive signal for investors evaluating the company's financial health.

Market Research Analyst

The timing of Forward Air Corporation's earnings release and the subsequent conference call is a critical period when market participants pay close attention to the company's performance. The delay in the earnings release, as mentioned by Interim CEO Michael Hance, could lead to speculation among investors. It's essential to consider how the market has historically reacted to such postponements and the potential implications for the company's stock volatility in the short term.

Furthermore, the acquisition of Omni and the leadership changes are pivotal developments that stakeholders will be keen to understand in terms of strategic direction and expected synergies. These factors could significantly influence investor sentiment and the future valuation of the company.

Legal Expert

The amendment to the credit agreement and the repayment of the term B loans must comply with various regulatory requirements, as indicated by the filing of the Form 8-K with the Securities and Exchange Commission. It is important for investors to review such filings for insights into the terms of the amendment, any associated fees and the implications for Forward's financial obligations. Compliance with these regulatory disclosures is essential for maintaining transparency with investors and avoiding any legal complications that could arise from insufficient or misleading information.

Provides progress update on repayment of term B loans

GREENEVILLE, Tenn.--(BUSINESS WIRE)-- Forward Air Corporation (NASDAQ: FWRD) (“Forward” or “the Company”) today changed the date for the release of its fourth quarter 2023 earnings.

Forward plans to release its fourth quarter 2023 earnings after the market closes on Wednesday, February 28 and hold a conference call to discuss those results on the following day, Thursday, February 29 at 9:00 a.m. ET. The conference call will be available online on the Investor Relations portion of the Company’s website at ir.forwardaircorp.com, or by dialing (800) 579-2543, Conference ID: FWRDQ423.

“Following the close of the Omni acquisition and the recent leadership changes at Forward, we are changing the date of our fourth quarter earnings release by a week,” said Michael Hance, Interim Chief Executive Officer of Forward. “We are pleased to provide a progress update on the repayment of the term B loans and the amendment to our credit agreement to revise our financial performance covenant, positioning Forward for future growth and success.”

Forward entered into an amendment to its credit agreement, which temporarily increases the maximum consolidated first lien net leverage ratio permitted by the credit agreement’s financial performance covenant. Additional details can be found in the Form 8-K filed with the Securities and Exchange Commission on February 15, 2024. Prior to the amendment, $80 million aggregate principal amount of term B loans outstanding under the credit agreement was repaid, together with all accrued and unpaid interest thereon.

About Forward Air

Forward Air is a leading asset-light provider of transportation services across the United States, Canada and Mexico. We provide expedited less-than-truckload services, including local pick-up and delivery, shipment consolidation/deconsolidation, warehousing, and customs brokerage by utilizing a comprehensive national network of terminals. In addition, we offer truckload brokerage services, including dedicated fleet services, and intermodal, first- and last-mile, high-value drayage services, both to and from seaports and railheads, dedicated contract and Container Freight Station warehouse and handling services. We are more than a transportation company. Forward is a single resource for your shipping needs. www.forwardaircorp.com.

Cautionary Statement Regarding Forward-Looking Statements

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words such as “anticipate(s)”, “expect(s)”, “intend(s)”, “plan(s)”, “target(s)”, “project(s)”, “believe(s)”, “will”, “aim”, “would”, “seek(s)”, “estimate(s)” and similar expressions are intended to identify such forward-looking statements. These statements may reflect Forward’s expectations, beliefs, hopes, intentions or strategies regarding, among other things, the transactions contemplated under the Agreement and Plan of Merger, dated as of August 10, 2023 (as amended, the “Merger Agreement”; and such transactions, collectively with the other transactions contemplated by the other transaction agreements referred to in the Merger Agreement, the “Transactions”) between Forward, Omni Newco LLC, and the other parties thereto, the benefits and synergies of the Transactions and future opportunities for the combined company, as well as other statements that are other than historical fact, including, without limitation, management plans for future operations and performance.

Forward-looking statements are based on management’s current expectations, projections, estimates, assumptions and beliefs and are subject to a number of known and unknown risks, uncertainties and other factors that could lead to actual results materially different from those described in the forward-looking statements. Forward can give no assurance that its expectations will be attained. We caution readers that any such statements are based on currently available operational, financial and competitive information, and they should not place undue reliance on these forward-looking statements, which reflect management’s opinion only as of the date on which they were made. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause Forward’s actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, but without limitation: (i) the risk that the parties may be unable to achieve the expected strategic, financial and other benefits of the Transactions, including the realization of expected synergies and the achievement of deleveraging targets, within the expected time-frames or at all; (ii) the risk that the businesses will not be integrated successfully or that integration may be more difficult, time-consuming or costly than expected; (iii) the risk that operating costs, customer loss, management and employee retention and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater than expected; (iv) risks associated with Forward’s indebtedness, leverage and debt service obligations; (v) general economic and market conditions; (vi) the outcome of Forward’s management transitions; and (vii) the expected benefit of the composition of the Board and Forward’s governance practices to Forward’s long-term value creation potential and its drivers. These and other risks and uncertainties are more fully discussed in the risk factors identified in “Item 1A. Risk Factors” in Part I of Forward’s most recently filed Annual Report on Form 10-K, and as may be identified in Forward’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Except to the extent required by law, Forward expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Forward’s expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240216589660/en/

Elizabeth Volpe / Libby Lloyd

Brunswick Group

(212) 333 - 3810

ForwardAirCorporation@BrunswickGroup.com

Source: Forward Air Corporation

FAQ

When will Forward Air Corporation release its fourth quarter 2023 earnings?

Forward Air Corporation plans to release its fourth quarter 2023 earnings after the market closes on Wednesday, February 28.

What is the ticker symbol for Forward Air Corporation?

The ticker symbol for Forward Air Corporation is FWRD.

What is the conference call schedule for discussing the fourth quarter 2023 earnings?

The conference call to discuss the fourth quarter 2023 earnings will be held on Thursday, February 29 at 9:00 a.m. ET.

What amendment did Forward Air Corporation make to its credit agreement?

Forward Air Corporation entered into an amendment to its credit agreement, which temporarily increases the maximum consolidated first lien net leverage ratio permitted by the financial performance covenant.

What progress update did Forward Air Corporation provide?

Forward Air Corporation provided a progress update on the repayment of term B loans and the amendment to its credit agreement to revise the financial performance covenant.