Forward Air Corporation Reports Second Quarter 2023 Results

Challenging market conditions in intermodal and truckload brokerage

Positive momentum for less-than-truckload services

Precision execution of revenue growth strategies designed to win market share

GREENEVILLE, Tenn.--(BUSINESS WIRE)-- Forward Air Corporation (NASDAQ:FWRD) (the “Company”, “we”, “our”, or “us”) today reported financial results for the three and six months ended June 30, 2023 as presented in the tables below.

Tom Schmitt, Chairman, President and CEO, commenting on second quarter results said, “Weaker-than-expected demand for our intermodal and truckload brokerage services resulted in our reported net income per diluted share of $0.76 and adjusted net income per diluted share of $0.91 coming in below the low end of our $1.28 to $1.32 guidance range. Demand for intermodal and truckload brokerage capacity has been significantly impacted by the trough in the freight cycle. Furthermore, the challenging market conditions led to decreased customer demand for our accessorial services within the intermodal line of business. The softer than anticipated demand for intermodal and truckload services throughout the second quarter and the significant decrease in the price of diesel fuel resulted in a 22% decline in revenue on a consolidated basis, below the low end of our guidance range of minus 7% to 17%.”

Mr. Schmitt continued, “Despite the softer economic environment, we have seen momentum in the less-than-truckload service with a sequential improvement in pounds per day from (12%) in the first quarter over the same period in the prior year to (7%) in the second quarter over the same period in the prior year. The positive momentum continued in the month of July. In the current week, we are enjoying year-over-year growth of +7%. Precision execution of our revenue growth strategies led to the sequential growth trends and improvement in our revenue quality metrics. Weight per shipment increased from 770 pounds in the first quarter to 801 pounds in the second quarter and weight per piece increased 2.4% from the first quarter to the second quarter. We believe the continued execution of our revenue growth strategies, strong collaboration with customers on selecting, handling and pricing of higher quality freight, and planned network expansion with a target of opening 30 new terminals over the next five years positions us well to win market share over the long-term. We are seeing the benefits of our strategy work with the addition of six new terminals in the first six months of 2023 allowing us to better serve the needs of customers in new markets.”

In closing, Mr. Schmitt said, “We are committed to exceptional customer service which is reflected in our on-time performance of 99% and a cargo claims ratio of 0.1% during the second quarter. I am so proud of our teammates and independent contractors who make us the best in the LTL industry in damage-free, intact, on-time shipments. We are the most compelling choice for customers with shipments of consequence.”

Regarding the Company’s third quarter 2023 guidance, Rebecca J. Garbrick, CFO, said, “We expect our year-over-year revenue to decline 11% to 21% and adjusted net income per diluted share in the range of $1.12 to $1.16, compared to reported net income per diluted share of $1.93 in the third quarter of 2022.”

		Three Months Ended
(in thousands, except per share data)		June 30, 2023				June 30, 2022				Change				Percent Change
Operating revenue		$	402,182			$	515,219			$	(113,037	)		(21.9	)%
Income from operations		$	30,211			$	75,545			$	(45,334	)		(60.0	)%
Operating margin			7.5	%			14.7	%		(720) bps
Net income		$	19,951			$	55,430			$	(35,479	)		(64.0	)%
Net income per diluted share		$	0.76			$	2.04			$	(1.28	)		(62.7	)%
Cash provided by operating activities		$	63,573			$	50,334			$	13,239			26.3	%
Non-GAAP Financial Measures: 1
Adjusted income from operations		$	35,711			$	75,545			$	(39,834	)		(52.7	)%
Adjusted net income		$	23,923			$	55,430			$	(31,507	)		(56.8	)%
Adjusted net income per diluted share		$	0.91			$	2.04			$	(1.13	)		(55.4	)%
EBITDA		$	44,724			$	87,140			$	(42,416	)		(48.7	)%
Free cash flow		$	54,143			$	41,825			$	12,318			29.5	%
1 Reconciliation of these non-GAAP financial measures are provided below the financial tables.
		Six Months Ended
(in thousands, except per share data)		June 30, 2023				June 30, 2022				Change				Percent Change
Operating revenue		$	829,248			$	982,180			$	(152,932	)		(15.6	)%
Income from operations		$	80,720			$	132,896			$	(52,176	)		(39.3	)%
Operating margin			9.7	%			13.5	%		(380) bps
Net income		$	56,319			$	98,116			$	(41,797	)		(42.6	)%
Net income per diluted share		$	2.13			$	3.61			$	(1.48	)		(41.0	)%
Cash provided by operating activities		$	129,566			$	112,820			$	16,746			14.8	%
Non-GAAP Financial Measures: 1
Adjusted income from operations		$	86,220			$	132,602			$	(46,382	)		(35.0	)%
Adjusted net income		$	60,291			$	97,896			$	(37,605	)		(38.4	)%
Adjusted net income per diluted share		$	2.28			$	3.60			$	(1.32	)		(36.7	)%
EBITDA		$	108,868			$	155,621			$	(46,753	)		(30.0	)%
Free cash flow		$	115,162			$	94,914			$	20,248			21.3	%
1 Reconciliation of these non-GAAP financial measures are provided below the financial tables.

On July 25, 2023, our Board of Directors declared a quarterly cash dividend of $0.24 per share of common stock. The dividend is payable to shareholders of record at the close of business on August 17, 2023 and is expected to be paid on September 7, 2023. This quarterly dividend is made pursuant to a cash dividend policy approved by the Board of Directors, which anticipates a total annual dividend of $0.96 for the full year 2023, payable in quarterly increments of $0.24 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.

Review of Financial Results

Forward Air will hold a conference call to discuss second quarter 2023 results on Thursday, August 3, 2023 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 (877) 336-4440, Access Code: 6257043.

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 Investor 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 provider of transportation services across the United States, Canada and Mexico. 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. In addition, we offer final mile services, including delivery of heavy-bulky freight, 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. 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, 2023				June 30, 2022				June 30, 2023				June 30, 2022
Operating revenue:
Expedited Freight	$	337,996			$	408,857			$	676,930			$	785,448
Intermodal		64,251				106,411				152,420				196,851
Eliminations and other operations		(65	)			(49	)			(102	)			(119	)
Operating revenues		402,182				515,219				829,248				982,180
Operating expenses:
Purchased transportation		181,643				239,490				366,860				464,322
Salaries, wages and employee benefits		86,686				86,358				166,206				172,439
Operating leases		26,184				23,459				53,432				46,132
Depreciation and amortization		14,513				11,595				28,148				22,725
Insurance and claims		13,360				13,196				27,142				25,164
Fuel expense		5,274				8,314				11,058				14,179
Other operating expenses		44,311				57,262				95,682				104,323
Total operating expenses		371,971				439,674				748,528				849,284
Income (loss) from operations:
Expedited Freight		30,949				63,107				63,947				110,787
Intermodal		4,312				15,249				15,515				26,395
Other Operations		(5,050	)			(2,811	)			1,258				(4,286	)
Income from operations		30,211				75,545				80,720				132,896
Other expense:
Interest expense, net		(2,585	)			(1,193	)			(4,940	)			(1,977	)
Total other expense		(2,585	)			(1,193	)			(4,940	)			(1,977	)
Income before income taxes		27,626				74,352				75,780				130,919
Income tax expense		7,675				18,922				19,461				32,803
Net income and comprehensive income	$	19,951			$	55,430			$	56,319			$	98,116
Net income per share:
Basic	$	0.76			$	2.05			$	2.14			$	3.63
Diluted	$	0.76			$	2.04			$	2.13			$	3.61
Dividends per share:	$	0.24			$	0.24			$	0.48			$	0.48

Expedited Freight Segment Information
(In thousands)
(Unaudited)
	Three Months Ended
	June 30, 2023			Percent of Revenue			June 30, 2022			Percent of Revenue			Change				Percent Change
Operating revenue:
Network 1	$	205,762		60.9	%		$	251,872		61.6	%		$	(46,110	)		(18.3	)%
Truckload		40,432		12.0				60,144		14.7			$	(19,712	)		(32.8	)
Final Mile		68,560		20.3				73,028		17.9			$	(4,468	)		(6.1	)
Other		23,242		6.9				23,813		5.8			$	(571	)		(2.4	)
Total operating revenue		337,996		100.0				408,857		100.0			$	(70,861	)		(17.3	)
Operating expenses:
Purchased transportation		163,798		48.5				212,575		52.0			$	(48,777	)		(22.9	)
Salaries, wages and employee benefits		70,360		20.8				69,497		17.0			$	863			1.2
Operating leases		19,489		5.8				15,933		3.9			$	3,556			22.3
Depreciation and amortization		9,707		2.9				7,817		1.9			$	1,890			24.2
Insurance and claims		10,703		3.2				8,311		2.0			$	2,392			28.8
Fuel expense		2,583		0.8				3,229		0.8			$	(646	)		(20.0	)
Other operating expenses		30,407		9.0				28,388		7.0			$	2,019			7.1
Total operating expenses		307,047		90.8				345,750		84.6			$	(38,703	)		(11.2	)
Income from operations	$	30,949		9.2	%		$	63,107		15.4	%		$	(32,158	)		(51.0	)%
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, 2023			June 30, 2022			Percent Change
Business days		64			64		—	%
Tonnage 1,2
Total pounds		673,878			730,128		(7.7	)
Pounds per day		10,529			11,408		(7.7	)
Shipments 1,2
Total shipments		842			961		(12.4	)
Shipments per day		13.2			15.0		(12.0	)
Weight per shipment		801			760		5.4
Revenue per hundredweight 3	$	30.79		$	34.75		(11.4	)
Revenue per hundredweight, ex fuel 3	$	24.08		$	25.89		(7.0	)
Revenue per shipment 3	$	246.59		$	264.09		(6.6	)
Revenue per shipment, ex fuel 3	$	192.85		$	196.78		(2.0	)
1 In thousands
2 Excludes accessorial, Truckload and Final Mile products
3 Includes intercompany revenue between the Network and Truckload revenue streams

Intermodal Segment Information
(In thousands)
(Unaudited)
	Three Months Ended
	June 30, 2023			Percent of Revenue			June 30, 2022		Percent of Revenue			Change			Percent Change
Operating revenue	$	64,251		100.0	%		106,411		100.0	%		(42,160	)		(39.6	)%
Operating expenses:
Purchased transportation		17,909		27.9			26,963		25.3			(9,054	)		(33.6	)
Salaries, wages and employee benefits		16,650		25.9			18,831		17.7			(2,181	)		(11.6	)
Operating leases		6,695		10.4			7,526		7.1			(831	)		(11.0	)
Depreciation and amortization		4,806		7.5			3,716		3.5			1,090			29.3
Insurance and claims		2,815		4.4			2,338		2.2			477			20.4
Fuel expense		2,691		4.2			5,084		4.8			(2,393	)		(47.1	)
Other operating expenses		8,373		13.0			26,704		25.1			(18,331	)		(68.6	)
Total operating expenses		59,939		93.3			91,162		85.7			(31,223	)		(34.3	)
Income from operations		4,312		6.7	%		15,249		14.3	%		(10,937	)		(71.7	)%

Intermodal Operating Statistics
	Three Months Ended
	June 30, 2023			June 30, 2022			Percent Change
Drayage shipments		68,180			94,986		(28.2	)%
Drayage revenue per shipment	$	853		$	1,026		(16.9	)%

Forward Air Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
	June 30, 2023			December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	18,281		$	45,822
Accounts receivable, net		175,968			221,028
Other current assets		21,538			37,465
Total current assets		215,787			304,315
Property and equipment, net		260,663			249,080
Operating lease right-of-use assets		144,847			141,865
Goodwill		356,763			306,184
Other acquired intangibles, net		151,218			154,801
Other assets		55,295			51,831
Total assets	$	1,184,573		$	1,208,076
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	37,085		$	54,601
Accrued expenses		53,265			54,291
Other current liabilities		12,112			3,956
Current portion of debt and finance lease obligations		13,963			9,444
Current portion of operating lease liabilities		52,801			47,106
Total current liabilities		169,226			169,398
Finance lease obligations, less current portion		23,461			15,844
Long-term debt, less current portion and debt issuance costs		119,766			106,588
Operating lease liabilities, less current portion		96,799			98,865
Other long-term liabilities		48,437			59,044
Deferred income taxes		53,275			51,093
Shareholders’ equity:
Preferred stock		—			—
Common stock		258			265
Additional paid-in capital		277,593			270,855
Retained earnings		395,758			436,124
Total shareholders’ equity		673,609			707,244
Total liabilities and shareholders’ equity	$	1,184,573		$	1,208,076

Forward Air Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
	Three Months Ended
	June 30, 2023				June 30, 2022
Operating activities:
Net income from operations	$	19,951			$	55,430
Adjustments to reconcile net income of operations to net cash provided by operating activities of operations
Depreciation and amortization		14,513				11,595
Share-based compensation expense		3,160				3,306
Provision for revenue adjustments		3,372				1,630
Deferred income tax expense		325				319
Other		(132	)			1,251
Changes in operating assets and liabilities, net of effects from the purchase of acquired businesses:
Accounts receivable		21,630				(6,473	)
Other receivables		—				3,484
Other current and noncurrent assets		(299	)			(9,900	)
Accounts payable and accrued expenses		1,053				(10,308	)
Net cash provided by operating activities		63,573				50,334
Investing activities:
Proceeds from sale of property and equipment		1,356				256
Purchases of property and equipment		(10,786	)			(8,765	)
Purchases of a business, net of cash acquired		(136	)			(40,433	)
Net cash used in investing activities		(9,566	)			(48,942	)
Financing activities:
Repayments of finance lease obligations		(1,869	)			(1,513	)
Payments on credit facility		(30,750	)			(7,875	)
Payment of earn-out liability		—				(91	)
Payments of dividends to shareholders		(6,255	)			(6,492	)
Repurchases and retirement of common stock		(29,301	)			—
Proceeds from common stock issued under employee stock purchase plan		421				374
Payment of minimum tax withholdings on share-based awards		—				(39	)
Net cash used in financing activities		(67,754	)			(15,636	)
Net decrease in cash and cash equivalents		(13,747	)			(14,244	)
Cash and cash equivalents at beginning of period		32,028				61,630
Cash and cash equivalents at end of period	$	18,281			$	47,386

Forward Air Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
	Six Months Ended
	June 30, 2023				June 30, 2022
Operating activities:
Net income from operations	$	56,319			$	98,116
Adjustments to reconcile net income of operations to net cash provided by operating activities of operations
Depreciation and amortization		28,148				22,725
Change in fair value of earn-out liability		—				(294	)
Share-based compensation expense		6,309				6,067
Provision for revenue adjustments		5,529				2,934
Deferred income tax expense		2,182				1,962
Other		(432	)			1,383
Changes in operating assets and liabilities, net of effects from the purchase of acquired businesses:
Accounts receivable		38,299				(36,751	)
Other receivables		—				7,093
Other current and noncurrent assets		11,123				3,918
Accounts payable and accrued expenses		(17,911	)			5,667
Net cash provided by operating activities		129,566				112,820
Investing activities:
Proceeds from sale of property and equipment		3,171				767
Purchases of property and equipment		(17,575	)			(18,673	)
Purchase of a business, net of cash acquired		(56,703	)			(40,433	)
Net cash used in investing activities		(71,107	)			(58,339	)
Financing activities:
Repayments of finance lease obligations		(3,987	)			(2,583	)
Proceeds from credit facility		45,000				—
Payments on credit facility		(30,750	)			(8,250	)
Payment of earn-out liability		—				(91	)
Proceeds from issuance of common stock upon stock option exercises		—				206
Payments of dividends to shareholders		(12,600	)			(12,994	)
Repurchases and retirement of common stock		(79,792	)			(17,780	)
Proceeds from common stock issued under employee stock purchase plan		421				374
Payment of minimum tax withholdings on share-based awards		(4,292	)			(3,293	)
Net cash used in financing activities		(86,000	)			(44,411	)
Net (decrease) increase in cash and cash equivalents		(27,541	)			10,070
Cash and cash equivalents at beginning of period		45,822				37,316
Cash and cash equivalents at end of period	$	18,281			$	47,386

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, 2023 and 2022, this press release contains the following non-GAAP financial measures: earnings before interest, taxes, depreciation and amortization (“EBITDA”), free cash flow, adjusted income from operations, adjusted net income, and adjusted net income per diluted share.

The Company believes that EBITDA 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 is an important measure of its ability to repay maturing debt or fund other uses of capital that it believes will enhance shareholder value. The Company believes providing adjusted income from operations, net income and net income per share allows investors to compare Company performance consistently over various periods without regard to the impact of unusual, nonrecurring or nonoperational items.

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.

Due to the forward-looking nature of the third quarter 2023 guidance for adjusted net income per diluted share, the Company is unable to reconcile this non-GAAP measure to the most directly comparable GAAP measure because the comparable GAAP measure is not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be required for such reconciliation.

The following is a reconciliation of net income to EBITDA for the three and six months ended June 30, 2023 and 2022 (in thousands):

		Three Months Ended						Six Months Ended
		June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Net income		$	19,951		$	55,430		$	56,319		$	98,116
Interest expense			2,585			1,193			4,940			1,977
Income tax expense			7,675			18,922			19,461			32,803
Depreciation and amortization			14,513			11,595			28,148			22,725
EBITDA		$	44,724		$	87,140		$	108,868		$	155,621

The following is a reconciliation of net cash provided by operating activities to free cash flow for the three and six months ended June 30, 2023 and 2022 (in thousands):

		Three Months Ended								Six Months Ended
		June 30, 2023				June 30, 2022				June 30, 2023				June 30, 2022
Net cash provided by operating activities		$	63,573			$	50,334			$	129,566			$	112,820
Proceeds from sale of property and equipment			1,356				256				3,171				767
Purchases of property and equipment			(10,786	)			(8,765	)			(17,575	)			(18,673	)
Free cash flow		$	54,143			$	41,825			$	115,162			$	94,914

The following is a reconciliation of reported income from operations, net income, and net income per diluted share to adjusted income from operations, net income, and net income per diluted share for the three and six months ended June 30, 2023 and 2022 (in thousands, except net income per diluted share):

		Three Months Ended June 30, 2023									Three Months Ended June 30, 2022
		Income From Operations			Net Income1			Net Income Per Diluted Share1			Income From Operations				Net Income				Net Income Per Diluted Share
As Reported		$	30,211		$	19,951		$	0.76		$	75,545			$	55,430			$	2.04
Non-recurring strategic initiatives			5,500			3,972			0.15			—				—				—
As Adjusted		$	35,711		$	23,923		$	0.91		$	75,545			$	55,430			$	2.04
1 Net income and net income per diluted share amounts are based on the after-tax effect of each item. The income tax effect is calculated by applying the effective tax rate to the pre-tax amount. The total tax effect of the above item is $1,528.
		Six Months Ended June 30, 2023									Six Months Ended June 30, 2022
		Income From Operations			Net Income1			Net Income Per Diluted Share1			Income From Operations				Net Income2				Net Income Per Diluted Share2
As Reported		$	80,720		$	56,319		$	2.13		$	132,896			$	98,116			$	3.61
Non-recurring strategic initiatives			5,500			3,972			0.15			—				—				—
Change in the fair value of the earn-out liability			—			—			—			(294	)			(220	)			(0.01	)
As Adjusted		$	86,220		$	60,291		$	2.28		$	132,602			$	97,896			$	3.60
1 Net income and net income per diluted share amounts are based on the after-tax effect of each item. The income tax effect is calculated by applying the effective tax rate to the pre-tax amount. The total tax effect of the above item is $1,528.
2 Net income and net income per diluted share amounts are based on the after-tax effect of each item. The income tax effect is calculated by applying the effective tax rate to the pre-tax amount. The total tax effect of the above item is ($74).

The following information is provided to supplement this press release.

Actual		Three Months Ended June 30, 2023
Net income		$	19,951
Income allocated to participating securities			(121	)
Numerator for diluted net income per share - net income		$	19,830
Weighted-average common shares and common share equivalent outstanding - diluted			26,035
Diluted net income per share		$	0.76
Projected		Full year 2023
Projected tax rate			25.7	%
Projected purchases of property and equipment, net of proceeds from sale of property and equipment		$	37,000
Projected		December 31, 2023
Projected weighted-average common shares and common share equivalent outstanding - diluted			26,000

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 expectations of the Company as the freight recession abates, expectations regarding the performance of the Company’s LTL services, expectations regarding the impact of the Company’s revenue growth strategies, collaboration with customers and planned network expansion, expectations regarding the Company's third quarter 2023 guidance, including with respect to revenue and net income per diluted share, the future declaration of dividends and, the quarterly and full year 2023 anticipated dividends per share.

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, 2022.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230802068503/en/

Forward Air Corporation

Brandon Hammer, 423-636-7173

bhammer@forwardair.com

Source: Forward Air Corporation