Forward Air Corporation · NASDAQ:FWRD
Forward Air — Investor Presentation (May 2017)
20 slides from Forward Air's investor presentation, May 22, 2017
Slide 1: Investor Presentation
NASDAQ:FWRD www.ForwardAirCorp.com Investor Presentation
Slide 2: 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 identify these forward-looking statements. Th
Slide 3: Asset-Light Freight & Logistics Company
3 Asset-Light Freight & Logistics Company EXPEDITED LTL • Comprehensive national network • Provides expedited regional, inter-regional and national LTL services • Offers local pick-up and delivery, warehousing and other services • Terminal network located at or near airports in the US and Canada TRU
Slide 4: Key Attributes
4 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. Provide our customers with safe, superior service Operate an asset-light
Slide 5: Revenue & Operating Income Mix
5 Revenue & Operating Income Mix *Adjusted to exclude impairment charge LTL 57%TLS 17% Pool 15% IM 11% Revenue: LTM LTL 78% TLS* 7% Pool 5% IM 10% Op rating Income: LTM
Slide 6: Expedited LTL Highlights
6 Expedited LTL Highlights • Nationwide time-definite service, serving 8,100 lane segments and 90 cities each business day • Pick-up and delivery by zip code and/or zone covering 96% of continental US zip codes • Offer a variety of freight management services (warehousing, dedicated final mile, etc.
Slide 7: Expedited LTL Network
ponerse Expedited LTL Network SS“ Conrorarion @ national Hub Regional Hub Station
Slide 8: Truckload Premium Services Highlights
8 Truckload Premium Services Highlights • High level of service allows for premium rate per mile • Competitive advantage having dedicated owner-operator capacity • Quality third party transportation providers allow for flexible capacity • Beneficial synergies through cross-utilization with Expedited
Slide 9: Intermodal Highlights
9 Intermodal Highlights • Branded as CST (Central States Trucking) • 20 terminals serving Midwest, Southeast and Southwest regions* • Service partnership with 20 of the top 100 importers • Scalable platform for future growth Intermodal LTM Revenue $ 107 M Operating Income $ 11 M EBITDA $ 15 M Owner-
Slide 10: Pool Distribution Highlights
10 Pool Distribution Highlights • Branded as Forward Air Solutions • Terminal and service locations in 28 states • Leverages core competencies of Expedited LTL business • Current customer base is primarily specialty retail; pursuing customers in other verticals Pool Distribution LTM Revenue $ 153 M
Slide 11: Technology
11 Technology • Advanced technology is a cornerstone of every Forward Air business operation • Our technology priorities include: ‒ End-to-end customer visibility to every shipment we handle in every business unit ‒ Secure real-time transactions with customers and service providers using APIs and ED
Slide 12: Financial Overview
Financial Overview
Slide 13: Financial Overview
13 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 ‒ Recently increased dividend by 25% *Adjusted to exclude Towne integration &
Slide 14: Revenue & Earnings History
14 Revenue & Earnings History Revenue (CAGR = 13%) EBITDA (CAGR = 11%) EPS (CAGR = 11%) *Adjusted to exclude CST acquisition costs (2014), Towne integration & deal costs (2015), technology related permanent tax deductions (2015), and impairment charge (2016) $484 $536 $584 $653 $781 $959 $983 $1,000
Slide 15: Strong Cash Flow Generation
15 Strong Cash Flow Generation $14 $20 $20 $34 $38 $39 $40 $40 $54 $77 $69 $91 $92 $86 $130 $130 $0 $20 $40 $60 $80 $100 $120 $140 2010 2011 2012 2013 2014 2015 2016 LTM ($ in mi llio ns ) Net Capex Cash Flow From Operations
Slide 16: Value Proposition
16 Value Proposition Sustainable Revenue Growth Flexible Asset-Light Model Solid Capital Returns Proven Operating Leverage Strong Balance Sheet
Slide 17: Appendix
Appendix
Slide 18: GAAP vs. Non GAAP Reconciliation
18 GAAP vs. Non GAAP Reconciliation Non GAAP Adjustments include CST acquisition costs (2014), Towne integration & deal costs (2015), technology related permanent tax deductions (2015), and impairment charge (2016) GAAP Revenue Reconciliation LTM Q1 2017 2016 Q4 2016 Q3 2016 Q2 2016 Q1 2016 2015 201
Slide 19: Segment EBITDA Reconciliation
19 Segment EBITDA Reconciliation Non GAAP Adjustments include impairment charge Expedited LTL LTM Q1 2017 2016 Q4 2016 Q3 2016 Q2 2016 Q1 2016 GAAP Operating Income 84.8 18.4 83.5 20.5 21.0 24.9 17.1 (+) Non GAAP Operating Income Adjustments - - - - - - - (+) Depreciation & Amortization 21.5 5.1 21.
Slide 20: Thank You For Your Time
Thank You For Your Time Investor Relations Contact: Mike Morris, CFO & Treasurer mmorris@forwardair.com (404) 362-8933