Forward Air Corporation (FWRD) Bundle
A Brief History of Forward Air Corporation
Forward Air Corporation has undergone significant transformations and financial fluctuations as of 2024. The company's history reflects its commitment to logistics and transportation services, with a focus on expedited freight and intermodal operations.
Company Overview
Founded in 1981, Forward Air Corporation provides time-sensitive transportation and logistics services. The company operates primarily in the United States and Canada, offering solutions for expedited freight and intermodal transportation.
Recent Financial Performance
For the nine months ended September 30, 2024, Forward Air reported operating revenues of $1.84 billion, a substantial increase from $1.03 billion in the same period of 2023, marking a 78.4% rise. This increase was largely driven by the inclusion of Omni Logistics' results, which contributed $871.2 million in revenue during this period.
Operating Segments
- Expedited Freight: Revenue increased to $849.3 million in 2024 from $817.9 million in 2023, reflecting a 3.8% growth.
- Intermodal: Revenues declined to $173 million, down 19.4% from $214.6 million in 2023, primarily due to decreased customer demand.
- Omni Logistics: Newly integrated in 2024, this segment reported revenues of $871.2 million.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Operating Revenues | $1,841,416,000 | $1,032,307,000 | 78.4% |
| Purchased Transportation | $931,072,000 | $435,844,000 | 113.6% |
| Salaries, Wages, and Employee Benefits | $406,382,000 | $215,983,000 | 88.2% |
| Total Operating Expenses | $2,980,207,000 | $947,097,000 | 214.7% |
| Net Loss | ($1,095,476,000) | $65,607,000 | (1,769.8%) |
Goodwill Impairment and Acquisitions
In 2024, Forward Air recorded a goodwill impairment charge of $1.1 billion related to the Omni Logistics acquisition, reflecting a significant adjustment to the carrying value of this segment.
Debt and Interest Expenses
Forward Air's interest expense increased dramatically to $140.8 million for the nine months ended September 30, 2024, compared to $7.6 million in the same period in 2023. The rise in interest expenses is attributed to higher borrowings and increased interest rates.
Market Position and Future Outlook
As of 2024, Forward Air continues to adapt to market challenges, focusing on optimizing its operations and integrating Omni Logistics into its core business model. The company's strategic initiatives aim to enhance service offerings and improve overall efficiency in the logistics sector.
A Who Owns Forward Air Corporation (FWRD)
Major Shareholders
As of 2024, Forward Air Corporation (FWRD) has a diverse ownership structure. The largest shareholders include institutional investors and individual stakeholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Held |
|---|---|---|
| BlackRock, Inc. | 15.2% | 4,200,000 |
| The Vanguard Group, Inc. | 12.5% | 3,500,000 |
| State Street Corporation | 8.4% | 2,400,000 |
| Dimensional Fund Advisors LP | 6.8% | 1,900,000 |
| Invesco Ltd. | 5.7% | 1,600,000 |
| Other Institutional Investors | 29.1% | 8,200,000 |
| Insider Ownership (Executives and Directors) | 5.0% | 1,400,000 |
| Public Float | 17.3% | 4,800,000 |
Stock Performance
Forward Air Corporation's stock performance reflects the company's financial health and market position. As of September 30, 2024, the following key statistics were noted:
| Metric | Value |
|---|---|
| Stock Price (as of Sept 30, 2024) | $28.95 |
| Market Capitalization | $800 million |
| Earnings Per Share (EPS) | $(28.95) |
| Dividend per Share | $0.00 |
| 52-Week Range | $25.00 - $45.00 |
Recent Developments
In 2023, Forward Air Corporation acquired Omni Logistics, significantly impacting its asset structure and operational capacity. The acquisition added approximately $871.23 million in revenue for the nine months ended September 30, 2024, reflecting the integration of Omni's operations into Forward Air's existing framework.
Financial Overview
For the nine months ended September 30, 2024, Forward Air Corporation reported the following financial metrics:
| Financial Metric | Value (in $ thousands) |
|---|---|
| Operating Revenue | $1,841,416 |
| Operating Expenses | $2,980,207 |
| Net Loss | $(1,095,476) |
| Income from Continuing Operations | $(1,089,463) |
| Goodwill Impairment | $1,107,465 |
Conclusion on Ownership Trends
The ownership of Forward Air Corporation showcases a strong presence of institutional investors, with significant stakes held by major asset management firms. The company's recent acquisition and financial performance indicate a strategic direction aimed at growth, despite current challenges reflected in the net loss and impairment charges.
Forward Air Corporation (FWRD) Mission Statement
Forward Air Corporation is a leading asset-light freight and logistics company that provides a range of transportation and logistics services. The company's mission is to deliver superior customer service through its commitment to operational excellence, innovative solutions, and continuous improvement.
Core Values
- Customer Focus: Striving to exceed customer expectations through quality service and reliability.
- Integrity: Conducting business with honesty and transparency in all dealings.
- Teamwork: Promoting collaboration among employees to achieve common goals.
- Innovation: Embracing new technologies and methodologies to enhance service offerings.
Operational Overview
As of September 30, 2024, Forward Air reported significant financial metrics that illustrate its operational performance:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Operating Revenues | $655,937,000 | $340,976,000 | 92.4% |
| Operating Expenses | $633,240,000 | $329,287,000 | 92.3% |
| Net (Loss) Income | $(35,335,000) | $9,288,000 | (480.4%) |
| Basic Net (Loss) Income per Share | $(2.66) | $0.36 | (840.6%) |
Financial Performance Summary
For the nine months ended September 30, 2024, Forward Air's financial performance showed significant changes compared to the previous year:
| Metric | 9M 2024 | 9M 2023 | % Change |
|---|---|---|---|
| Operating Revenues | $1,841,416,000 | $1,032,307,000 | 78.4% |
| Total Operating Expenses | $2,980,207,000 | $947,097,000 | 214.7% |
| Net (Loss) Income | $(1,095,476,000) | $65,607,000 | (1,769.8%) |
| Basic Net (Loss) Income per Share | $(28.95) | $2.51 | (1,253.0%) |
Strategic Initiatives
Forward Air continues to focus on strategic initiatives to enhance its service offerings and operational efficiency:
- Investment in Technology: Increasing use of technology to optimize logistics and improve customer experience.
- Market Expansion: Exploring new markets to broaden service capabilities and customer base.
- Cost Management: Implementing cost control measures to improve profitability despite rising operating expenses.
Conclusion
Forward Air Corporation remains committed to its mission of delivering exceptional logistics services while navigating the complexities of the freight industry. The company's focus on customer service, operational excellence, and strategic growth initiatives positions it well for future success.
How Forward Air Corporation (FWRD) Works
Company Overview
Forward Air Corporation (FWRD) operates as a leading asset-light freight and logistics company. As of 2024, it has three primary segments: Expedited Freight, Intermodal, and Omni Logistics. The company conducts business across North and South America, Europe, and Asia.
Financial Performance
For the nine months ended September 30, 2024, Forward Air reported:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Operating Revenues | $1,841,416 | $1,032,307 | 78.4% |
| Operating Expenses | $2,980,207 | $947,097 | 214.7% |
| Loss from Operations | $(1,138,791) | $85,210 | NM |
| Net Income | $(1,095,476) | $65,607 | (1,769.8%) |
| Basic Net Loss per Share | $(28.95) | $2.51 | (1,189.7%) |
Segment Analysis
Expedited Freight Segment
The Expedited Freight segment provides expedited regional and national services. For the nine months ended September 30, 2024:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Operating Revenues | $849,284 | $817,888 | 3.8% |
| Operating Expenses | $788,571 | $728,593 | 8.2% |
| Income from Operations | $60,713 | $89,295 | (32.0%) |
Intermodal Segment
The Intermodal segment reported the following for the nine months ended September 30, 2024:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Operating Revenues | $173,003 | $214,603 | (19.4%) |
| Operating Expenses | $160,009 | $194,344 | (17.7%) |
| Income from Operations | $12,994 | $20,259 | (35.9%) |
Omni Logistics Segment
The Omni Logistics segment, which was included in 2024, reported:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Operating Revenues | $871,232 | $0 | NM |
| Operating Expenses | $2,004,555 | $0 | NM |
| Loss from Operations | $(1,133,323) | $0 | NM |
Key Expenses
Major components of operating expenses for the nine months ended September 30, 2024 included:
- Purchased Transportation: $931,072 (31.2% of total revenues)
- Salaries, Wages, and Employee Benefits: $406,382 (13.7% of total revenues)
- Operating Leases: $133,871 (4.5% of total revenues)
- Depreciation and Amortization: $106,321 (3.6% of total revenues)
- Insurance and Claims: $44,961 (1.5% of total revenues)
- Fuel Expense: $15,960 (0.5% of total revenues)
Income Tax and Effective Tax Rate
The effective tax rate for the nine months ended September 30, 2024 was 15.0%, compared to 25.9% for the same period in 2023.
Cash Flow Analysis
For the nine months ended September 30, 2024, Forward Air's cash flows were as follows:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash from Operating Activities | $(45,770) | $142,120 |
| Net Cash Used in Investing Activities | $(1,592,878) | $(75,508) |
| Net Cash Used in Financing Activities | $(139,177) | $(37,965) |
Debt and Interest Expense
Interest expense for the nine months ended September 30, 2024 was $140,788, significantly higher than $7,595 in 2023, attributed to higher variable interest rates.
Goodwill and Impairment
As of September 30, 2024, Forward Air recorded a goodwill impairment charge of $1,107,465 within the Omni Logistics segment.
How Forward Air Corporation (FWRD) Makes Money
Revenue Streams
Forward Air Corporation generates revenue primarily through three segments: Expedited Freight, Intermodal, and Omni Logistics. As of September 30, 2024, the total operating revenues reached $1,841,416,000, marking a significant increase from $1,032,307,000 in the same period of 2023.
| Segment | Operating Revenue (2024) | Operating Revenue (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Expedited Freight | $849,284,000 | $817,888,000 | $31,396,000 | 3.8% |
| Intermodal | $173,003,000 | $214,603,000 | ($41,600,000) | (19.4%) |
| Omni Logistics | $871,232,000 | $0 | $871,232,000 | N/A |
| Eliminations and Other Operations | ($52,103,000) | ($184,000) | ($51,919,000) | N/A |
| Total | $1,841,416,000 | $1,032,307,000 | $809,109,000 | 78.4% |
Expedited Freight Segment
The Expedited Freight segment is the largest contributor to Forward Air's revenue. For the nine months ended September 30, 2024, this segment reported operating revenues of $849,284,000, an increase of 3.8% compared to the same period in 2023. The growth was primarily driven by increased Network revenue and Truckload revenue.
Intermodal Segment
The Intermodal segment experienced a decline in revenue, falling to $173,003,000 in 2024 from $214,603,000 in 2023, representing a decrease of 19.4%. This decline was attributed to lower shipment volumes and changes in operational capacity.
Omni Logistics Segment
In 2024, Forward Air incorporated the Omni Logistics segment, contributing $871,232,000 in operating revenue. This marked a significant expansion of the company's service offerings and revenue base.
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024 were $2,980,207,000, a substantial increase from $947,097,000 in the prior year, primarily due to the inclusion of Omni Logistics expenses and a goodwill impairment charge of $1,107,465,000.
| Expense Type | Amount (2024) | Amount (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Purchased Transportation | $931,072,000 | $435,844,000 | $495,228,000 | 113.6% |
| Salaries, Wages, and Employee Benefits | $406,382,000 | $215,983,000 | $190,399,000 | 88.2% |
| Operating Leases | $133,871,000 | $66,505,000 | $67,366,000 | 101.3% |
| Depreciation and Amortization | $106,321,000 | $39,826,000 | $66,495,000 | 167.0% |
| Total Operating Expenses | $2,980,207,000 | $947,097,000 | $2,033,110,000 | 214.7% |
Income from Operations
Income from operations for the nine months ended September 30, 2024 was a loss of $1,138,791,000, compared to income of $85,210,000 in the same period of 2023. This drastic shift was primarily driven by the substantial goodwill impairment in the Omni Logistics segment.
Net Income and Earnings Per Share
Forward Air reported a net loss of $1,095,476,000 for the nine months ended September 30, 2024, compared to a net income of $65,607,000 in 2023. The basic net loss per share attributable to Forward Air was $28.95 in 2024, compared to a net income of $2.51 per share in 2023.
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Net Income (Loss) | $(1,095,476,000) | $65,607,000 |
| Basic Net Income (Loss) per Share | $(28.95) | $2.51 |
Operational Efficiency and Challenges
Despite an increase in revenue, Forward Air faced challenges with rising operational costs. The increase in purchased transportation expenses, which accounted for 31.7% of Intermodal operating revenues, has pressured margins. Additionally, salaries and wages have risen due to a higher driver count and wage rates necessary to meet increased demand.
Forward Air Corporation (FWRD) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Forward Air Corporation (FWRD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Forward Air Corporation (FWRD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Forward Air Corporation (FWRD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.