Forward Air Corporation Reports First Quarter 2021 Results

Rhea-AI Summary

Forward Air Corporation (NASDAQ:FWRD) reported strong first quarter results for 2021, with revenue reaching $362.2 million, surpassing guidance. Net income per diluted share was $0.60, above expectations, despite a $0.26 total impact from cybersecurity fees and adverse weather. The company's LTL segment achieved a higher operating margin than during peak economy in 2018.

Looking ahead, second quarter revenue growth is projected at 35% to 40%, with net income per share expected between $0.96 to $1.00.

Positive

• Record first quarter revenue of $362.2 million, exceeding guidance.
• Net income per diluted share of $0.60, higher than expected.
• LTL business operating margin improved compared to March 2018.
• Projected revenue growth of 35% to 40% in Q2 2021.

Negative

• Cybersecurity and shareholder engagement fees were higher than anticipated, totaling approximately $0.20 per share.

Forward Air Corporation (NASDAQ:FWRD) (the “Company,” “we,” “our,” or “us”) today reported financial results for the three months ended March 31, 2021 as presented in the tables below on a continuing operations basis (Pool Distribution is being reported as a discontinued operation).

Tom Schmitt, Chairman, President and CEO, commenting on first quarter results from continuing operations said, “Our growth strategies drove our record first quarter revenue, which came in above the high end of our guidance range. Business momentum continued during the quarter and accelerated in March, when our LTL business achieved an operating margin higher than in March of peak economy year 2018.”

“Our net income per diluted share of $0.60 exceeded the high end of our guidance range. This guidance included approximately $0.07 of anticipated professional fees related to cybersecurity and shareholder engagement activities. However, during the first quarter these fees were approximately $0.20 (driven predominately by shareholder engagement activities that resulted in us entering into a cooperation agreement), all of which was recorded in Other Operations. We also experienced an estimated $0.06 impact in February from adverse weather (which had a $0.04 impact on our Expedited Freight segment and a $0.02 impact on our Intermodal segment). When adjusting for this approximate $0.26 total impact, we believe the underlying performance of our business during the first quarter greatly exceeded what we expected in our first quarter guidance.”

Regarding the Company’s second quarter 2021 continuing operations guidance, Mr. Schmitt said, “We expect our year-over-year revenue growth will be 35% to 40%, and our net income per diluted share to be between $0.96 to $1.00, compared to $0.33 in the second quarter of 2020 and, more meaningfully compared to $0.79 in the second quarter of 2018.”

In closing, Mr. Schmitt said, “The first quarter was all about a determined focus of the entire team. In the midst of a tight market and winter storms, our teammates and independent contractors went above and beyond to keep our customer commitments. We feel very strongly about our momentum which we will further enhance over the next few months and years. As the country continues its vaccine rollout, we will continue to bring back business together with our customers who were directly impacted by the pandemic such as cruise lines, conferences and trade shows.”

Continuing Operations		Three Months Ended
(in thousands, except per share data)		March 31, 20211				March 31, 2020				Change				Percent Change
Operating revenue		$	362,202			$	305,557			$	56,645			<

FAQ

What were Forward Air's first quarter financial results for 2021?

Forward Air reported a revenue of $362.2 million and a net income per diluted share of $0.60 for Q1 2021.

What is the projected revenue growth for Forward Air in the second quarter of 2021?

Forward Air expects a year-over-year revenue growth of 35% to 40% for Q2 2021.

How did adverse weather impact Forward Air's financial results?

Adverse weather had an estimated impact of approximately $0.06 on Forward Air's financial results in February.

What are Forward Air's expectations for net income per share in Q2 2021?

Forward Air anticipates net income per diluted share to be between $0.96 and $1.00 for Q2 2021.