Forward Air Corporation · NASDAQ:FWRD
Forward Air — Q2 2024 Earnings Presentation
16 slides from Forward Air's earnings presentation, Aug 7, 2024
Slide 1: Forward Air 2Q24 Earnings Presentation
Forward Air 2Q24 Earnings Presentation August 7, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation 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,” “se
Slide 3: Agenda
AGENDA 01 02 2Q24 Highlights Integration Update03 04 Leverage and Liquidity Cash Flow 3 All figures throughout presentation in $ millions where applicable LTL KPIs Capital Allocation / Deleveraging Conclusion 06 07 05
Slide 4: 2Q24 Results Affected by Softness in Freight Cycle but Sequentially Improved
2Q24 Results Affected by Softness in Freight Cycle but Sequentially Improved ($3M) A DJ US TE D O P ER ATIN G IN CO ME ( 1) $81M CO NS O L IDAT ED E B ITD A ( 2) $445M L IQ UI DIT Y ( 3) 5.2x LTM CO V EN A NT NE T L E V E RA G E ( 2) 1. Non-GAAP financial measure. Reconciliations and other informati
Slide 5: Strong 2Q24 Performance Relative to 1Q24 Positions The Business Well For 2H
1. Pro Forma for Omni acquisition calculated in accordance with Article 11 of Regulation S-X. For more information, please see our 8-K filed on June 10, 2024 2. Non-GAAP financial measure. Please note that Consolidated EBITDA is calculated pursuant to our credit agreement Strong 2Q24 Performance Rel
Slide 6: Legacy Forward Air LTL Metrics Stable to Improving
12.8 13.1 13.3 13.4 12.9 13.6 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 ▪ 2Q24 weight per shipment of 821 pounds with a 2.5% YoY increase ▪ We have seen a mix shift to 3PLs and direct customers who consume primarily D2D services, which typically average higher weight per shipment than A2A moves ▪ 2Q24 revenue p
Slide 7: Omni Integration on Track
Omni Integration on Track 1Q24 Close Transaction $8.3M Cumulative ▪ Maintained service and corporate processes without interruption ▪ Shut down Omni’s linehaul operations and absorbed volume into FWRD’s network ▪ Began to execute facilities consolidation plan 2Q24 Action Items $22.9M Cumulative ▪ Ex
Slide 8: Continuous Improvement Culture
Continuous Improvement Culture 8 ▪ Right-sizing NewCo for combined back office and operations / network ▪ ~$20M of run-rate cost savings incremental to synergies expected by 2025, stemming from SG&A cost-cutting actions already taken ▪ Several synergy projects are establishing a base for more effici
Slide 9: Deleveraging Remains a Key Priority for Management
5.0x 5.2x Required Covenant Ratio 6.0x 1Q24 2Q24 1. Non-GAAP financial measure. Please note that is calculated pursuant to our credit agreement. 2. Includes Term Loan, Senior Secured Notes, and Revolving Credit Facility; excludes finance leases 3. Excludes foreign subsidiaries and restricted cash 4.
Slide 10: No Maturities Until December 2030
10 No Maturities Over Next 6 Years Key Commentary $1,045 $725 2024 2025 2026 2027 2028 2029 2030 2031 First Lien Term Loan Senior Secured Notes ▪ No material maturities within the next 6 years ▪ Plenty of time to effectuate integration and garner benefits of combination No Maturities Until December
Slide 11: Cash Consumption Continues to Moderate Through 2Q24
11 Cash Consumption Continues to Moderate Through 2Q24 1. Amounts exclude letters of credit restricted cash collateral Change in Unrestricted Cash (1) (1) Key Commentary 1• $37M interest payment on Senior Secured Notes, $9M interest payment on Term Loan B • Professional fees associated with Omni tra
Slide 12: Remain Committed to Previously Announced Capital Allocation Plan
Remain Committed to Previously Announced Capital Allocation Plan with a Focus on Improving Performance 12 Deleverage ▪ Deleveraging is a key priority, demonstrated by repayment of $80M of term loans in 1Q ▪ Actively reviewing portfolio to identify opportunities to dispose of any non-core assets ▪ Di
Slide 13: 2Q24 Summary – Integration and Cost Reductions Progressing and Performance Improving
13 2Q24 Summary – Integration and Cost Reductions Progressing and Performance Improving Completed transaction in 1Q24 Brought in new senior leadership in April and May Actioned cost reduction items in late 1Q24 and 2Q24 (i.e., this quarter) Continuing as an industry leader in on-time service and cla
Slide 14: C\Forward” Yomnilogistics
- C\Forward” Yomnilogistics
Slide 15: Consolidated EBITDA Reconciliation
Consolidated EBITDA Reconciliation 3Q23 4Q23 1Q24 2Q24 TTM (6/30/24) Net Income ($59) $30 ($159)(1) ($966) ($1,155) Business Dispositions (Final Mile) (2) (117) (0) (0) (120) Impairment Charge / Asset Write-Off - - - 1,093 1,093 Omni Merger Transaction Costs 36 61 96 2 195 Other (severance, retentio
Slide 16: Pro Forma Net Income Reconciliation
Pro Forma Net Income Reconciliation 1Q24 1Q 2024 Reported Net Income ($89) Standalone Omni (January 1 – January 24, 2024) Net Income (71) Pro Forma 1Q24 Net Income ($159) GAAP to Non-GAAP Reconciliation Adjusted Operating Income Reconciliation 2Q24 Loss from Continuing Operations ($1,096) Impairment