Forward Air Corporation Reports Second Quarter 2021 Results

Rhea-AI Summary

Forward Air Corporation (NASDAQ:FWRD) reported its highest quarterly revenue and operating income in history for Q2 2021. Operating revenue reached $420.7 million, a 49.3% increase year-over-year, with net income per diluted share of $1.11, exceeding guidance. The company anticipates a record Q3, projecting revenue growth of 28% to 32%. Operational challenges included a decline in cash provided by operating activities by 21.8% and a decrease in free cash flow by 1.6%. A dividend of $0.21 per share was declared, payable on September 9, 2021, with a total expected annual dividend of $0.84.

Positive

• Q2 2021 operating revenue of $420.7 million, up 49.3% year-over-year.
• Net income per diluted share of $1.11, exceeding guidance of $0.96 to $1.00.
• Operating income increased by 202.7% from the previous year.
• Projected Q3 2021 revenue growth of 28% to 32%.

Negative

• Cash provided by operating activities decreased by 21.8% in Q2 2021.
• Free cash flow fell by 1.6% compared to Q2 2020.

Forward Air Corporation (NASDAQ:FWRD) (the “Company”, “we”, “our”, or “us”) today reported financial results for the three and six months ended June 30, 2021 as presented in the tables below on a continuing operations basis (Pool Distribution was previously reported as a discontinued operation).

Forward Air Corporation reports highest revenue and operating income for a quarter. (Photo: Business Wire)

Tom Schmitt, Chairman, President and CEO, commenting on second quarter results from continuing operations said, “Business momentum continued during the quarter culminating in the highest net income for the month of June. Our focus on our two rock star segments, Expedited Freight and Intermodal, as well as solid revenue management, drove our second quarter revenue, which exceeded the high end of our guidance range. Surgical collaboration with customers on selecting, handling, and pricing freight led to the highest operating income for a quarter. Net income per diluted share of $1.11 exceeded the high end of our $0.96 to $1.00 guidance range. I am very encouraged that in our second quarter we are better than in pre-pandemic 2019’s second quarter: better consolidated operating margins now. And bigger - our operating revenues are up almost 40% year-over-year. Additionally, we are working to bring back our customer’s events business in late 2021 and 2022.”

Mr. Schmitt continued, “We expect volumes in the third quarter 2021 to significantly exceed volumes for the same period of 2020. Through July, our volumes were strong year-over-year. We are guiding to a record third quarter revenue and net income per diluted share despite the impact of an investment in operational enhancements and to a lesser extent the typical slowdown in volumes in the third quarter as compared to the second quarter.”

In closing, Mr. Schmitt said, “In the second quarter, we achieved the highest revenue and operating income for a quarter in the history of the Company. I would like to thank all of our teammates for their hard work in helping to achieve this important milestone.”

Regarding the Company’s third quarter 2021 continuing operations guidance, Rebecca J. Garbrick, CFO, said, “We expect our year-over-year revenue growth will be 28% to 32%, and our net income per diluted share to be between $1.03 to $1.07, compared to $0.61 in the third quarter of 2020. The net income per diluted share outlook reflects a $0.03 per share impact from professional fees related to an operational improvement project (which will be recorded in Expedited Freight).”

Continuing Operations		Three Months Ended
(in thousands, except per share data)		June 30, 2021				June 30, 20201				Change				Percent Change
Operating revenue		$	420,671			$	281,678			$	138,993			49.3	%
Income from operations		$	42,124			$	13,914			$	28,210			202.7	%
Operating margin		10.0		%		4.9		%		510 bps
Net income		$	30,677			$	9,225			$	21,452			232.5	%
Net income per diluted share		$	1.11			$	0.33			$	0.78			236.4	%
Cash provided by operating activities		$	22,748			$	29,101			$	(6,353)			(21.8)	%
Non-GAAP Financial Measures: 2
EBITDA		$	51,538			$	23,327			$	28,211			120.9	%
Free cash flow		$	17,517			$	17,806			$	(289)			(1.6)	%
1 Results for the three months ended June 30, 2020 include several non-recurring items including a $2.1 million gain from changes in fair value on an earn-out due to the timing of expected new business wins, partially offset by $1.0 million of severance and $0.7 million in reserves for customers negatively impacted by COVID-19.
2 EBITDA and free cash flow are non-GAAP financial measures and reconciliations of these non-GAAP financial measures are provided in the below financial tables.

Continuing Operations		Six Months Ended
(in thousands, except per share data)		June 30, 20211				June 30, 20202				Change				Percent Change
Operating revenue		$	782,873			$	587,235			$	195,638			33.3	%
Income from operations		$	64,848			$	29,687			$	35,161			118.4	%
Operating margin		8.3		%		5.1		%		320 bps
Net income		$	47,391			$	20,641			$	26,750			129.6	%
Net income per diluted share		$	1.71			$	0.72			$	0.99			137.5	%
Cash provided by operating activities		$	39,661			$	59,929			$	(20,268)			(33.8)	%
Non-GAAP Financial Measures: 3
EBITDA		$	83,499			$	48,434			$	35,065			72.4	%
Free cash flow		$	32,400			$	46,703			$	(14,303)			(30.6)	%
1 Results for the six months ended June 30, 2021 includes a $7.0 million charge for professional fees related to cyber security and shareholder engagement activities.
2 Results for the six months ended June 30, 2020 include several non-recurring items including a $2.7 million gain from changes in fair value on an earn-out due to the timing of expected new business wins, partially offset by $1.0 million of severance and $0.7 million in reserves for customers negatively impacted by COVID-19.
3 EBITDA and free cash flow are non-GAAP financial measures and reconciliations of these non-GAAP financial measures are provided in the below financial tables.

On July 27, 2021, our Board of Directors declared a quarterly cash dividend of $0.21 per share of common stock. The dividend is payable to shareholders of record at the close of business on August 20, 2021 and is expected to be paid on September 9, 2021. This quarterly dividend is made pursuant to a cash dividend policy approved by the Board of Directors, which anticipates a total annual dividend of $0.84 for the full year 2021, payable in quarterly increments of $0.21 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 and position.

The Board approved a strategy to divest the Pool Distribution business (“Pool”) on April 23, 2020, and the sale of Pool was completed on February 12, 2021. Accordingly, the results of operations and cash flows for Pool have been presented as a discontinued operation and have been excluded from continuing operations in this release for all periods presented. In addition, Pool assets and liabilities were reflected as “held for sale” on the Condensed Consolidated Balance Sheets in this press release for the prior period.

Review of Financial Results

Forward Air will hold a conference call to discuss second quarter 2021 results on Friday, July 30, 2021 at 9:00 a.m. EDT. The Company’s conference call will be available online on the Investor Relations portion of the Company’s website at www.forwardaircorp.com, or by dialing (844) 867-6169, Access Code: 1588037.

A replay of the conference call will be available on the Investor Relations portion of the Company’s website at www.forwardaircorp.com, which we use as a primary mechanism to communicate with our investors. Investors are urged to monitor the Investors Relations portion of the Company’s website to easily find or navigate to current and pertinent information about us.

About Forward Air Corporation

Forward Air is a leading asset-light freight and logistics company that provides services across the United States and Canada. We provide expedited less-than-truckload (“LTL”) services, including local pick-up and delivery, shipment consolidation/deconsolidation, warehousing, and customs brokerage by utilizing a comprehensive national network of terminals; final mile services, including delivery of heavy-bulky freight; truckload brokerage services, including dedicated fleet services, high-security and temperature-controlled logistics services; 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; and pool distribution services, including high-frequency handling and distribution of time sensitive product to numerous destinations within a specific geographic region. For more information, visit our website at www.forwardaircorp.com.

Forward Air Corporation
Condensed Consolidated Statements of Comprehensive Income
(Unaudited, in thousands, except per share data)
	Three Months Ended								Six Months Ended
	June 30, 2021				June 30, 2020				June 30, 2021				June 30, 2020
Operating revenue:
Expedited Freight	$	351,735			$	235,658			$	655,921			$	489,287
Intermodal	69,133				46,428				127,647				98,888
Eliminations and other operations	(197)				(408)				(695)				(940)
Operating revenue	420,671				281,678				782,873				587,235
Operating expenses:
Purchased transportation	215,217				142,069				399,825				292,667
Salaries, wages and employee benefits	84,641				63,772				159,538				133,331
Operating leases	20,370				17,387				39,537				35,271
Depreciation and amortization	9,414				9,413				18,651				18,747
Insurance and claims	10,891				7,722				20,632				17,766
Fuel expense	4,059				2,519				7,761				6,532
Other operating expenses	33,955				24,882				72,081				53,234
Total operating expenses	378,547				267,764				718,025				557,548
Income (loss) from continuing operations:
Expedited Freight	34,688				11,753				59,218				26,933
Intermodal	8,386				4,413				12,895				8,126
Other Operations	(950)				(2,252)				(7,265)				(5,372)
Income from continuing operations	42,124				13,914				64,848				29,687
Other expense:
Interest expense	(1,323)				(1,198)				(2,488)				(2,051)
Total other expense	(1,323)				(1,198)				(2,488)				(2,051)
Income before income taxes	40,801				12,716				62,360				27,636
Income tax expense	10,124				3,491				14,969				6,995
Net income from continuing operations	30,677				9,225				47,391				20,641
Loss from discontinued operation, net of tax	—				(6,071)				(5,533)				(9,112)
Net income and comprehensive income	$	30,677			$	3,154			$	41,858			$	11,529
Net income per share:
Basic net income (loss) per share
Continuing operations	$	1.12			$	0.33			$	1.72			$	0.72
Discontinued operation	—				(0.22)				(0.20)				(0.31)
Net income per share	$	1.12			$	0.11			$	1.52			$	0.41
Diluted net income (loss) per share
Continuing operations	$	1.11			$	0.33			$	1.71			$	0.72
Discontinued operation	—				(0.22)				(0.20)				(0.32)
Net income per share	$	1.11			$	0.11			$	1.51			$	0.40
Dividends per share	$	0.21			$	0.18			$	0.42			$	0.36

Expedited Freight Segment Information
(In thousands)
(Unaudited)
	Three Months Ended
	June 30, 2021				Percent of Revenue			June 30, 2020				Percent of Revenue			Change				Percent Change
Operating revenue:
Network1	$	210,088			59.7	%		$	134,172			56.9	%		$	75,916			56.6	%
Truckload	56,968				16.2			41,855				17.8			15,113				36.1
Final Mile	69,883				19.9			53,427				22.7			16,456				30.8
Other	14,796				4.2			6,204				2.6			8,592				138.5
Total operating revenue	351,735				100.0			235,658				100.0			116,077				49.3
Operating expenses:
Purchased transportation	191,648				54.5			127,478				54.1			64,170				50.3
Salaries, wages and employee benefits	67,560				19.2			50,508				21.4			17,052				33.8
Operating leases	14,868				4.2			13,338				5.7			1,530				11.5
Depreciation and amortization	6,779				1.9			6,740				2.9			39				0.6
Insurance and claims	8,385				2.4			5,715				2.4			2,670				46.7
Fuel expense	2,147				0.6			1,406				0.6			741				52.7
Other operating expenses	25,660				7.3			18,720				7.9			6,940				37.1
Total operating expenses	317,047				90.1			223,905				95.0			93,142				41.6
Income from operations	$	34,688			9.9	%		$	11,753			5.0	%		$	22,935			195.1	%
1Network revenue is comprised of all revenue, including linehaul, pickup and/or delivery, and fuel surcharge revenue, excluding accessorial, Truckload and Final Mile revenue.

Expedited Freight Operating Statistics
	Three Months Ended
	June 30, 2021				June 30, 2020				Percent Change
Business days	64				64				—	%
Tonnage 1,2
Total pounds	728,191				522,031				39.5
Pounds per day	11,378				8,157				39.5
Shipments 1,2
Total shipments	1,096				963				13.8
Shipments per day	17.1				15.0				14.0
Weight per shipment	664				542				22.5
Revenue per hundredweight 3	$	28.63			$	26.32			8.8
Revenue per hundredweight, ex fuel 3	$	24.68			$	23.09			6.9
Revenue per shipment 3	$	191.89			$	139.30			37.8
Revenue per shipment, ex fuel 3	$	165.62			$	121.77			36.0
Network revenue from door-to-door shipments as a percentage of network revenue 3,4	51.3		%		49.9		%		2.8
1 In thousands
2 Excludes accessorial, Truckload and Final Mile products
3 Includes intercompany revenue between the Network and Truckload revenue streams
4 Door-to-door shipments include all shipments with a pickup and/or delivery

Intermodal Segment Information
(In thousands)
(Unaudited)
	Three Months Ended
	June 30, 2021				Percent of Revenue			June 30, 2020				Percent of Revenue			Change				Percent Change
Operating revenue	$	69,133			100.0	%		$	46,428			100.0	%		$	22,705			48.9	%
Operating expenses:
Purchased transportation	23,767				34.4			14,904				32.1			8,863				59.5
Salaries, wages and employee benefits	16,230				23.5			11,728				25.3			4,502				38.4
Operating leases	5,500				8.0			4,045				8.7			1,455				36.0
Depreciation and amortization	2,612				3.8			2,648				5.7			(36)				(1.4)
Insurance and claims	2,355				3.4			1,789				3.9			566				31.6
Fuel expense	1,912				2.8			1,113				2.4			799				71.8
Other operating expenses	8,371				12.1			5,788				12.5			2,583				44.6
Total operating expenses	60,747				87.9			42,015				90.5			18,732				44.6
Income from operations	$	8,386			12.1	%		$	4,413			9.5	%		$	3,973			90.0	%

Intermodal Operating Statistics
	Three Months Ended
	June 30, 2021				June 30, 2020				Percent Change
Drayage shipments	96,805				68,974				40.3	%
Drayage revenue per shipment	$	618			$	556			11.2	%
Number of locations	29				24				20.8	%

Forward Air Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
	June 30, 2021				December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	50,844			$	40,254
Accounts receivable, net	209,187				156,490
Other receivables	16,999				—
Other current assets	19,982				28,150
Current assets held for sale	—				21,002
Total current assets	297,012				245,896
Property and equipment	383,155				380,519
Less accumulated depreciation and amortization	196,168				190,652
Total property and equipment, net	186,987				189,867
Operating lease right-of-use assets	148,651				123,338
Goodwill	254,993				244,982
Other acquired intangibles, net of accumulated amortization	145,813				145,032
Other assets	48,385				45,181
Noncurrent assets held for sale	—				53,097
Total assets	$	1,081,841			$	1,047,393
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	43,655			$	38,371
Accrued expenses	70,894				51,264
Other current liabilities	6,813				10,580
Current portion of debt and finance lease obligations	1,867				1,801
Current portion of operating lease liabilities	46,042				43,680
Current liabilities held for sale	—				25,924
Total current liabilities	169,271				171,620
Debt and finance lease obligations, less current portion	161,729				117,408
Operating lease liabilities, less current portion	103,280				80,346
Other long-term liabilities	55,741				54,129
Deferred income taxes	41,471				41,986
Noncurrent liabilities held for sale	—				34,575
Shareholders’ equity:
Common stock	271				273
Additional paid-in capital	252,466				242,916
Retained earnings	297,612				304,140
Total shareholders’ equity	550,349				547,329
Total liabilities and shareholders’ equity	$	1,081,841			$	1,047,393

Forward Air Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
	Three Months Ended
	June 30, 2021				June 30, 2020
Operating activities:
Net income from continuing operations	$	30,677			$	9,225
Adjustments to reconcile net income of continuing operations to net cash provided by operating activities of continuing operations
Depreciation and amortization	9,414				9,413
Change in fair value of earn-out liability	(337)				(2,108)
Share-based compensation expense	2,981				2,429
Provision for revenue adjustments	1,748				745
Deferred income tax (benefit) expense	(67)				3,443
Other	97				962
Changes in operating assets and liabilities, net of effects from the purchase of acquired businesses:
Accounts receivable	(22,995)				(61)
Other receivables	(152)				—
Other current and noncurrent assets	(339)				(2,455)
Accounts payable and accrued expenses	1,721				7,508
Net cash provided by operating activities of continuing operations	22,748				29,101
Investing activities:
Proceeds from sale of property and equipment	649				268
Purchases of property and equipment	(5,880)				(11,563)
Purchases of a business, net of cash acquired	(7,543)				—
Net cash used in investing activities of continuing operations	(12,774)				(11,295)
Financing activities:
Repayments of finance lease obligations	(487)				(340)
Proceeds from revolving credit facility	45,000				—
Payment of earn-out liability	—				(5,284)
Proceeds from issuance of common stock upon stock option exercises	1,423				—
Payments of dividends to stockholders	(5,768)				(5,037)
Repurchases of common stock	(23,994)				—
Proceeds from common stock issued under employee stock purchase plan	388				294
Payment of minimum tax withholdings on share-based awards	(88)				(614)
Contributions from (distributions to) subsidiary held for sale	—				(3,154)
Net cash provided by (used in) financing activities from continuing operations	16,474				(14,135)
Net increase in cash of continuing operations	26,448				3,671
Cash from discontinued operation:
Net cash used in operating activities of discontinued operation	—				(3,010)
Net cash provided by (used in) investing activities of discontinued operation	—				(144)
Net cash (used in) provided by financing activities of discontinued operation	—				3,154
Net increase in cash and cash equivalents	26,448				3,671
Cash and cash equivalents at beginning of period of continuing operations	24,396				77,245
Cash at beginning of period of discontinued operation	—				—
Net increase in cash and cash equivalents	26,448				3,671
Less: cash at end of period of discontinued operation	—				—
Cash and cash equivalents at end of period of continuing operations	$	50,844			$	80,916

Forward Air Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
	Six Months Ended
	June 30, 2021				June 30, 2020
Operating activities:
Net income from continuing operations	$	47,391			$	20,641
Adjustments to reconcile net income of continuing operations to net cash provided by operating activities of continuing operations
Depreciation and amortization	18,651				18,747
Change in fair value of earn-out liability	(385)				(2,702)
Share-based compensation expense	5,578				5,507
Provision for revenue adjustments	3,525				1,787
Deferred income tax (benefit) expense	(572)				4,668
Other	189				697
Changes in operating assets and liabilities, net of effects from the purchase of acquired businesses:
Accounts receivable	(51,018)				2,979
Other receivables	(13,491)				—
Other current and noncurrent assets	6,746				(29)
Accounts payable and accrued expenses	23,047				7,634
Net cash provided by operating activities of continuing operations	39,661				59,929
Investing activities:
Proceeds from sale of property and equipment	1,314				988
Purchases of property and equipment	(8,575)				(14,214)
Purchase of a business, net of cash acquired	(22,543)				(55,931)
Net cash used in investing activities of continuing operations	(29,804)				(69,157)
Financing activities:
Repayments of finance lease obligations	(954)				(676)
Proceeds from revolving credit facility	45,000				65,000
Payment of earn-out liability	—				(5,284)
Proceeds from issuance of common stock upon stock option exercises	3,570				—
Payments of dividends to stockholders	(11,565)				(10,087)
Repurchases of common stock	(33,992)				(15,259)
Proceeds from common stock issued under employee stock purchase plan	388				294
Payment of minimum tax withholdings on share-based awards	(2,832)				(3,286)
Contributions from (distributions to) subsidiary held for sale	1,118				(5,307)
Net cash provided by financing activities from continuing operations	733				25,395
Net increase in cash and cash equivalents of continuing operations	10,590				16,167
Cash from discontinued operation:
Net cash used in operating activities of discontinued operation	(6,902)				(4,672)
Net cash provided by (used in) investing activities of discontinued operation	8,020				(635)
Net cash (used in) provided by financing activities of discontinued operation	(1,118)				5,307
Net increase in cash and cash equivalents	10,590				16,167
Cash and cash equivalents at beginning of period of continuing operations	40,254				64,749
Cash at beginning of period of discontinued operation	—				—
Net increase in cash and cash equivalents	10,590				16,167
Less: cash at end of period of discontinued operation	—				—
Cash and cash equivalents at end of period of continuing operations	$	50,844			$	80,916

Forward Air Corporation Reconciliation of Non-GAAP Financial Measures

In this press release, the Company uses non-GAAP financial measures that are derived on the basis of methodologies other than in accordance with GAAP. The Company believes that meaningful analysis of its financial performance requires an understanding of the factors underlying that performance, including an understanding of items that are non-operational. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions as well as evaluating the Company’s performance.

For the three and six months ended June 30, 2021 and 2020, this press release contains the following non-GAAP financial measures: earnings before interest, taxes, depreciation and amortization (“EBITDA”) and free cash flow. All non-GAAP financial measures are presented on a continuing operations basis.

The Company believes that EBITDA from continuing operations improves comparability from period to period by removing the impact of its capital structure (interest and financing expenses), asset base (depreciation and amortization) and tax impacts. The Company believes that free cash flow from continuing operations is an important measure of its ability to repay maturing debt or fund other uses of capital that it believes will enhance stockholder value.

Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s financial results prepared in accordance with GAAP. Non-GAAP financial information does not represent a comprehensive basis of accounting. As required by the Securities and Exchange Act of 1933 and the rules and regulations promulgated thereunder, the Company has included, for the periods indicated, a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure.

The following is a reconciliation of net income from continuing operations to EBITDA from continuing operations for the three and six months ended June 30, 2021 and 2020 (in thousands):

		Three Months Ended								Six Months Ended
Continuing Operations		June 30, 2021				June 30, 2020				June 30, 2021				June 30, 2020
Net income		$	30,677			$	9,225			$	47,391			$	20,641
Interest expense		1,323				1,198				2,488				2,051
Income tax expense		10,124				3,491				14,969				6,995
Depreciation and amortization		9,414				9,413				18,651				18,747
EBITDA		$	51,538			$	23,327			$	83,499			$	48,434

The following is a reconciliation of net cash provided by operating activities of continuing operations to free cash flow from continuing operations for the three and six months ended June 30, 2021 and 2020 (in thousands):

	Three Months Ended								Six Months Ended
Continuing Operations	June 30, 2021				June 30, 2020				June 30, 2021				June 30, 2020
Net cash provided by operating activities	$	22,748			$	29,101			$	39,661			$	59,929
Proceeds from sale of property and equipment	649				268				1,314				988
Purchases of property and equipment	(5,880)				(11,563)				(8,575)				(14,214)
Free cash flow	$	17,517			$	17,806			$	32,400			$	46,703

The following information is provided to supplement this press release.

		Three Months Ended
Actual - Continuing Operations		June 30, 2021
Net income from continuing operations		$	30,677
Income allocated to participating securities		(256)
Numerator for diluted income per share - net income		$	30,421
Weighted-average shares outstanding - diluted		27,415
Diluted net income per share		$	1.11
Projected		Full year 2021
Projected tax rate - continuing operations		24.8		%
Projected purchases of property and equipment, net of proceeds from sale of property and equipment1		$	43,000
1 Includes $23,500 for the Columbus, Ohio hub expansion
Projected		December 31, 2021
Projected weighted-average shares outstanding - diluted		26,800

Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements included in this press release relate to expected third quarter 2021 revenue growth, net income per diluted share and volume, expectations regarding increased momentum in our business, and the future declaration of dividends.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these 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, the COVID-19 pandemic, our ability to manage our growth and ability to grow, in part, through acquisitions, while being able to successfully integrate such acquisitions, our ability to secure terminal facilities in desirable locations at reasonable rates, more limited liquidity than expected which limits our ability to make key investments, the creditworthiness of our customers and their ability to pay for services rendered, our inability to maintain our historical growth rate because of a decreased volume of freight or decreased average revenue per pound of freight moving through our network, the availability and compensation of qualified Leased Capacity Providers and freight handlers as well as contracted, third-party carriers needed to serve our customers’ transportation needs, our inability to manage our information systems and inability of our information systems to handle an increased volume of freight moving through our network, the occurrence of cybersecurity risks and events, market acceptance of our service offerings, claims for property damage, personal injuries or workers’ compensation, enforcement of and changes in governmental regulations, environmental, tax, insurance and accounting matters, the handling of hazardous materials, changes in fuel prices, loss of a major customer, increasing competition and pricing pressure, our dependence on our senior management team and the potential effects of changes in employee status, seasonal trends, the occurrence of certain weather events, restrictions in our charter and bylaws and the risks described in our Annual Report on Form 10-K for the year ended December 31, 2020.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

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FAQ

What were Forward Air's Q2 2021 financial results?

Forward Air reported Q2 2021 operating revenue of $420.7 million, a 49.3% increase year-over-year, with net income per diluted share of $1.11.

How much is the dividend declared by Forward Air for Q3 2021?

Forward Air declared a quarterly cash dividend of $0.21 per share, payable on September 9, 2021.

What is the expected revenue growth for Forward Air in Q3 2021?

Forward Air expects Q3 2021 revenue growth to be between 28% and 32% year-over-year.

How did Forward Air's operating income perform in Q2 2021?

In Q2 2021, Forward Air's operating income increased by 202.7% compared to the previous year.

What were the main financial challenges reported by Forward Air?

Forward Air faced a 21.8% decrease in cash provided by operating activities and a 1.6% decline in free cash flow in Q2 2021.