Forward Air Corporation · NASDAQ:FWRD
Forward Air — Raymond James Conference 2022
23 slides from Forward Air's conference presentation, Mar 7, 2022
Slide 1: Forward to THE Best LTL Company
March 2022 | 1 Forward to THE Best LTL Company Raymond James Conference Orlando, Florida March 7, 2022
Slide 2: Forward-Looking Statements
March 2022 | 2 Forward-Looking Statements Certain statements contained in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on Forward Air Corporation’s (“Forward”) expectations, intentions and projections regard
Slide 3: The Next Great Value LTL Name to Own
March 2022 | 3 • Fastest high value LTL company in the U.S. • Commanding a 10-15% premium • 31% YoY revenue growth and +123% net income per diluted share growth from 2020 to 2021 for consolidated continuing operations • Huge upside: less than 10% market share of premium LTL • Optimized commercial ap
Slide 4: Premium LTL Shipping
March 2022 | 4 Premium LTL Shipping • Forward started with a simple idea: moving air freight on the ground. • Faster and better than regular LTL. Lower cost, more reliable and lower carbon footprint than Air Freight • Premium and Sustainable • Compared to air cargo: • More reliable & lower costs • L
Slide 5: Record Results and Financial Targets for 2023
March 2022 | 5 $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 $6.00 $6.50 $7.00 2020 2021 2023 Target $- $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 $2,750 2020 2021 2023 Target $ Millions $1.7 Billion Revenue from consolidated continuing operations (31% YoY
Slide 6: Operational Cleanse: better freight characteristics and capacity improvement
March 2022 | 6 Operational Cleanse: Leading to better freight characteristics and capacity improvement Week of June 14, 2021 Results Week of September 29, 2021 Billable Tonnage 57.3M Total Revenue $16.8M Average Weight per Shipment 676 lbs. Billable Tonnage 63.6M Total Revenue $19.6M Average Weight
Slide 7: Record number of surgical pricing actions
March 2022 | 7 Record number of surgical pricing actions in the last 16 months leading to highest revenue per linehaul ton mile in the company history Results Pricing Actions Date Estimated Annual Revenue Impact High Class Tariff Update 10/20 Single digit millions Class Fuel Surcharge Introduction 1
Slide 8: Freight selection, pricing practices and operational cleanse led to record results
March 2022 | 8 Optimized freight selection, best pricing practices and operational cleanse led to record results Results 2019 Grow Forward Growth Program Strategic Freight Selection Enhancing Enterprise Selling Potential Based Selling Operational Cleanse Cleansing of Bad Freight Improvement of Freig
Slide 9: With a virtuous cycle in action
March 2022 | 9 With a virtuous cycle in action Potential for Growth More Volume More Customers More Revenue per Shipment More Footprint Organic and Inorganic Terminal Expansion 10 Terminals last 2Y, Targeting 30 Terminals next 5Y Best pricing practices including GRI & dynamic pricing Surcharge Autom
Slide 10: We currently move only ~7% of the highest value loads
March 2022 | 10 We currently move only ~7% of the highest value loads—from medical devices to high tech, we believe there is huge untapped upside Potential for Growth Total TAM ~$86 Billion Premium LTL TAM ~$13 Billion FWRD Market Share ~7% We capture only a small fraction of our TAM and continue to
Slide 11: Pricing actions and GRI led to 33% YoY revenue per shipment growth
March 2022 | 11 Pricing actions and GRI led to 33% YoY revenue per shipment growth Potential for Growth 80 90 100 110 120 130 140 150 160 170 Rev/Shp FWRD Continuous Revenue Per Shipment expansion
Slide 12: We sell to intermediaries for large customers—and now SMB direct
March 2022 | 12 We sell to intermediaries for large customers—and now SMB direct as well Potential for Growth Customer Type Potential Customers Margins Revenue Growth Rate Forwarder & 3PL Thousands 75-95 OR* ~30% + Adding + Small & Medium Hundred thousands 65-75 OR* >100% Salesforce Dedicated SMB Sa
Slide 13: The Forward Network: over 200 locations
March 2022 | 13 The Forward Network is one of the most comprehensive in the industry, with over 200 locations in the U.S., Canada, and Mexico. • Targeting 30 new terminals in the next 5 years starting with large hubs in primary cities • Adding to network capacity by significantly expanding the LTL t
Slide 14: We are shareholder friendly on all core metrics
March 2022 | 14 We are shareholder friendly on all core metrics How are we operating? Strong Free Cash Flows Free Cash Flow increased to $88M in 2021 from $78M in 2020* Increased Dividend Raised the dividend four times over the last five years Share Repurchase Program Returned over $265M over the la
Slide 15: Complementary businesses to make LTL even stronger
March 2022 | 15 We have supporting complementary businesses to make LTL even stronger and benefit from synergies How are we operating? Stronger LTL Truckload Better balance of both fleets through leverage of Truckload and LTL customers Final Mile Integrated services and locations Intermodal Joint cu
Slide 16: Leading industry experts guiding us into the next generation
March 2022 | 16 Leading industry experts with over 160 years of combined experience guiding us into the next generation How are we operating? Matt Casey Senior Vice President, Safety Jay Tomasello Chief Technology Officer Katie Bishop Head of ESG Kyle Mitchin Chief People Officer Michael Hance Chief
Slide 17: Our values and principles
March 2022 | 17 1. We make our strategy real for everyone. We engage the entire organization in “Double Double.” 2. We operate as ONE. We remove silos and collaborate to identify and realize shared opportunities. 3. We look beyond our four walls. We learn from, and partner with, the best of the best
Slide 18: We believe in climate change
March 2022 | 18 We believe in climate change. We intend to become a 100% carbon neutral company by 2050. We believe in cleaner transportation and aim to have a fully electric/hydrogen fleet by 2035. We believe in safety and aim to be the safest LTL company for the years to come. We believe in fast t
Slide 19: Appendix
March 2022 | 19 Appendix
Slide 20: Reconciliation of GAAP to Non-GAAP Financial Measures
March 2022 | 20 Reconciliation of GAAP to Non-GAAP Financial Measures.
Slide 21: Reconciliation of GAAP to Non-GAAP Financial Measures
March 2022 | 21 Reconciliation of GAAP to Non-GAAP Financial Measures.
Slide 22: Reconciliation of GAAP to Non-GAAP Financial Measures
March 2022 | 22 Reconciliation of GAAP to Non-GAAP Financial Measures.
Slide 23: ( _ Forward
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