Forward Air Corporation · NASDAQ:FWRD
Forward Air — Investor Presentation (May 2018)
25 slides from Forward Air's investor presentation, May 21, 2018
Slide 1: Investor Presentation May 2018
Investor Presentation May 2018 NASDAQ:FWRD www.ForwardAirCorp.com
Slide 2: Forward Looking Statements Disclosure
Forward Looking Statements Disclosure Today’s presentation and discussion will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “anticipates,” “intends,” “estimates,” or similar expressions are intended to identif
Slide 3: Asset-Light Freight & Logistics Company
Asset-Light Freight & Logistics Company EXPEDITED LTL TRUCKLOAD PREMIUM SERVICES • Comprehensive national network • Expedited Truckload brokerage • Provides expedited regional, inter-regional and national LTL services • Dedicated fleet services • Offers local pick-up and delivery, • Maximum security
Slide 4: Key Attributes
Key Attributes Deliver premium solutions: expedited, time-definite, service-sensitive Most comprehensive provider of wholesale transportation services in North America, serving Freight Forwarders, Airlines, 3PLs, etc. Operate an asset-light model utilizing independent owner-operators and third
Slide 5: Revenue Growth
Revenue Growth Consolidated Revenue 1,200 1,000 800 GAAP) - 600 400 $ millions millions $ (non 200 0 2010 2011 2012 2013 2014 2015* 2016 2017 Note: Historic revenue shown as non-GAAP since it does not reflect the implementation of ASC 606, Revenue from Contracts with Customers 12% annual revenue g
Slide 6: Operating Income Growth
Operating Income Growth Consolidated Operating Income 120 100 80 60 $ millions $ 40 20 0 2010 2011 2012 2013 2014 2015* 2016* 2017 11% annual EBIT growth since 2010 Organic as well as acquisitive growth Expedited LTL key contributor; Intermodal growing rapidly *Non-GAAP adjustment, see appendi
Slide 7: Addressable Market
Addressable Market ($ millions) LTM Business Unit Revenue TAM TAM Comments (non-GAAP) Expedited LTL 649 3,500 $1,500 traditional airport-to-airport + $2,000 3PL Truckload Premium Services 184 3,000 $1,500 expedited + $1,500 medical+refrigerated Intermodal 169 7,000 Midwest + SE region Pool Distribut
Slide 8: Management Team
Management Team Bruce Campbell • 28 years with Forward Air Chairman and CEO • Previous: Ryder Glenn Adelaar • 18 years with Forward Air SVP, Information Systems • Previous: Sabre/American Airlines Matt Casey • 1 year with Forward Air SVP Safety • Previous: Forest City Technologies, Panther Premium L
Slide 9: Revenue & Operating Income Mix
Revenue & Operating Income Mix Revenue: LTM Operating Income: LTM IM IM 15% 12% Pool 6% Pool TLS 14% 1% LTL 55% TLS 16% LTL 81% 9
Slide 10: Expedited LTL Highlights
Expedited LTL Highlights • Nationwide time-definite service • Pick-up and delivery covering 96% of continental US zip codes • Offer variety of freight management services (warehousing, dedicated final mile, consolidation/deconsolidation, etc.) Growth Areas Expedited LTL LTM • E-commerce solutions fo
Slide 11: Forward Air: Expedited LTL Network
Forward Air: Expedited LTL Network =“ conrorarion cp ° ° BRLO MLI @ nationarup Regional Hub Station
Slide 12: Truckload Premium Services Highlights
Truckload Premium Services Highlights • Premium services (expedited, time definite, high value, etc.) for premium rates • Dedicated owner-operator capacity drives competitive advantage • Flexible capacity from qualified third party transportation providers • Beneficial synergies through cross- utili
Slide 13: Intermodal Highlights
Intermodal Highlights • Premium intermodal drayage for forwarders, airlines and steamship lines • Branded as CST (Central States Trucking) • Growing Midwest, Southeast and Southwest footprint • Service partnerships with 20 of the top 100 importers • Offer dedicated contract and CFS Intermodal LTM wa
Slide 14: Intermodal Network
Intermodal Network | & ’@ Seattle f Minneapolis. 4 e A f ee Rs P Milwaukee \ ON r / a Chicago ® ‘Cleveland Paikegprie ° @ e/oliet columbus Rochelle ie Baltmore Indianapol Se e ° re (oakland Kansas City Cece peoxtolk ‘Nashville echeriog® Los Angeles ‘@ Memphis 2 ‘Aflanta Charleston - @ tae Savannah =
Slide 15: Pool Distribution Highlights
Pool Distribution Highlights • High-frequency handling and distribution of time-sensitive products to multiple destinations for multiple consignees (“pooled” final mile solution) • Branded as Forward Air Solutions • Mid-Atlantic, Midwest, Southeast and Southwest footprint • Leverages core competenci
Slide 16: Pool Distribution Network
Pool Distribution Network 16
Slide 17: Technology
Technology • Advanced technology is a cornerstone of every Forward Air business operation • Our technology priorities include: ‒ Extensive use of mobile and wireless technologies to drive operational efficiencies ‒ Real-time customer shipment visibility ‒ E-commerce links with our customers, drivers
Slide 18: Financial Overview
ForwardAir we — CORPORATION —— Financial Overview
Slide 19: Financial Overview
Financial Overview • Goal to deliver superior returns to shareholders through profitable organic growth and disciplined acquisitions • Commitment to return capital to shareholders through dividends and share repurchases LTM 2017 2016 † Revenue (non-GAAP) $ 1,156 M $ 1101 M $ 983 M Operating Income $
Slide 20: Revenue & Earnings History
Revenue & Earnings History Revenue (non-GAAP)† EBITDA EPS (CAGR = 12%) (CAGR = 11%) (CAGR = 15%) * * * + * * ++ ++ † Shown as non-GAAP since it does not reflect the full implementation of ASC 606, Revenue from Contracts with Customers * Non-GAAP adjustment, see appendix + Adjusted to exclude CST acq
Slide 21: Strong Cash Flow Generation
Strong Cash Flow Generation $140 $130 $120 $107 $100 $103 $91 $92 $80 $86 $77 $69 $60 ($ in millions) in ($ $54 $40 $40 $38 $39 $40 $34 $36 $20 $20 $20 $14 $0 2010 2011 2012 2013 2014 2015 2016 2017 LTM Net Capex Cash Flow From Operations 21
Slide 22: Value Proposition
Value Proposition Sustainable Revenue Growth Flexible Asset-Light Model Solid Capital Returns Proven Operating Leverage Strong Balance Sheet 22
Slide 23: Appendix
ForwardAir we — CORPORATION —— Appendix
Slide 24: Reconciliations
Reconciliations GAAP vs Non-GAAP Reconciliation Segment EBITDA Reconciliation GAAP Revenue Reconciliation LTM 2017 2016 2015 2014 2013 2012 2011 2010 GAAP Revenue 1,156.4 1,100.8 982.5 959.1 781.0 652.5 584.5 536.4 483.9 Expedited LTL LTM Towne Integration - - - 0.6 - - - - - GAAP Operating Income 9
Slide 25: Thank You For Your Time
Thank You For Your Time Investor Relations Contact: Mike Morris, CFO & Treasurer mmorris@forwardair.com (404) 362-8933