Two freight transportation providers, Forward Air and Hub Group, along with one of the nation’s largest truck dealers, Rush Enterprises, reported second quarter earnings Tuesday, all showing declines from slight to moderate.
Forward Air Corp. (FWRD) saw its net income fall to $11.8 million, or 38 cents per diluted share, compared to $17.2 million, or 55 cents per diluted share, from the same time a year ago.
This happened as total revenue increased 28.8% to $249 million for the Tennessee-based time-definite trucking and related logistics provider.
Forward Air says the second quarter includes approximately $6.9 million in deal and integration costs associated with the acquisition of the trucking company Towne Air.
This resulted in adjusted income from operations of $26.8 million, compared with $27.6 million in the prior-year quarter. Adjusted net income for the period was $16 million, or 51 cents per diluted share, compared to $17.2 million, or 55 cents per diluted share a year earlier.
Bruce A. Campbell, chairman, president, and CEO, said during the quarter the company achieved a $1 billion rate run, but said the company underestimated the time and cost of integrating Towne Air into Forward Air’s operations.
“We challenged our people to have the Towne integration completed prior to the end of the second quarter. At this time, we estimate that we are 85% to 90% there,” he said. “While the Towne acquisition will definitely be a contributor to our second half 2015 results, it is important to understand the real value comes in our 2016 results and beyond.”
Forward Air also issued third quarter guidance saying revenue will increase between 23% and 27% from 2014, while earnings per share, minus the Towne Air integration costs, should be between 58 cents and 62 cents per diluted share, compared to 54 cents in the third quarter of 2014.
There are more details on the Forward Air website.
The intermodal trucking company Hub Group Inc. (HUBG) reported a small drop in second quarter income, totaling $18.5 million for the second quarter compared to $18.7 million a year earlier.
Diluted earnings for both periods were 51 cents per share for the Illinois-based provider, while revenue increased 1% to $900 million.
Second quarter intermodal revenue increased 2% to $465 million. Truck brokerage revenue increased 8% to $93 million.
Second quarter Unyson Logistics revenue declined 8% to $128 million.
Revenue for Hub’s specialty trucking business, Mode Transportation, increased 1% to $234 million.
You can find more information on Hub Group’s website.
Mega-sized commercial truck dealer Rush Enterprises (RUSHB) saw net income slip to $19.6 million, or 48 cents per diluted share, in the second quarter of the year, compared to $19.8 million, or 49 cents per diluted share, the same time in 2014.
This happened as total revenue for the Texas-based company increased to $1.33 billion in the most recent quarter from $1.18 billion a year earlier.
"Moderate freight growth driven by general economic improvement contributed to our strong financial performance this quarter, and we outpaced the industry in Class 8 truck sales again, despite the decline in activity in the energy sector,” said W.M. "Rusty" Rush, chairman, CEO and president. “We also increased parts, service and body shop revenues compared to the second quarter of 2014."
During the quarter the company expanded the number of locations in its Rush Truck Centers network from 112 to 120.
Aftermarket services accounted for approximately 63% of the company's total gross profits. Parts, service and body shop revenue were up 6.7% compared to the second quarter of 2014, according to the company.
Rush's Class 8 truck sales increased 29% over the same time period, outpacing the industry and accounting for 6.8% of the U.S. Class 8 truck market.
Class 8 new truck sales this quarter were primarily the result of deliveries to large over-the-road fleets benefitting from a healthy economy, according to Rush. New and used stock truck sales also increased as a result of a large inventory of vehicles at its dealer locations.
Rush's Class 4-7 new truck sales accounted for 5.4% of the total U.S. market. Total U.S. Class 4-7 truck sales in the second quarter were 53,437 units, up 3% over the same time period in 2014.
Parts, service and body shop revenues were $353.3 million in the second quarter of 2015, compared to $331 million in the second quarter of 2014.
There is more information about the company’s financial performance on the Rush Enterprises website.