Forward Air Profit Increases 24.6% in Second Quarter
July 23, 2014
Photo: Evan Lockridge
Forward Air has reported operating revenue for the quarter ended June 30, increased 21.3% to $193.9 million from $159.8 million for the same quarter in 2013.
Net income during the period was $17.2 million compared to $13.8 million in the prior-year quarter, a 24.6% increase, while income per diluted share for the second quarter of 2014 was 55 cents compared with 45 cents in the prior-year quarter.
Operating revenue for the six months ended June 30 increased 21.2% to $365.4 million from $301.4 million for the same period in 2013.
Net income during the period was $27.4 million compared to $24.7 million in the prior-year period, a 10.9% gain, while income per diluted share was 87 cents compared with 81 cents in the prior-year period.
“On the strength of a full quarter of revenue and results from Central States Trucking, which we acquired in February, improving year-over-year tonnage volumes and a full quarter benefit from our March general rate increase, FAI achieved record revenue and operating income during the second quarter of 2014,” said Bruce A. Campbell, chairman, president, and CEO. “CST contributed approximately $18.1 million of revenue and $2.3 million of operating income during the second quarter of 2014.”
He also said the company’s Forward Air Solutions segment was driven by a full quarter benefit from general rate increases initiated in the first quarter. Compared to the prior-year quarter results, its operating results improved over $1.2 million, or 600%.
“We anticipate that our third quarter 2014 [total] revenues will increase in the range of 18% to 22% over the comparable 2013 period,” said Rodney L. Bell, senior vice president and CFO. “We expect income per diluted share to be between 57 cents and 61 cents per share. This compares to 46 cents per share in the third quarter of 2013.”
On Tuesday the company’s board of directors declared a quarterly cash dividend of 12 cents per share of common stock, payable to shareholders of record at the close of business on August 21 and is expected to be paid on September 5.
Forward Air Corp. operates three business segments, Forward Air, Inc., which includes Central States Trucking, providing time-definite surface transportation and related logistics services to the North American expedited ground freight market; Forward Air Solutions, Inc. is a provider of pool distribution services; and Total Quality, Inc., which uses temperature controlled equipment and 24-hour monitoring and tracking, along with providing brokerage transportation services.
More information about the company’s financial performance can be found on the Forward Air website.