Slide 1: Forward Air 4Q24 Earnings Presentation
Forward Air 4Q24 Earnings Presentation February 26, 2025
Slide 2: Statements & Disclaimers
2 Statements & Disclaimers 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,” “i
Slide 3: Agenda
AGENDA 01 02 4Q24 Highlights Integration Update03 04 Leverage and Liquidity Cash Flow 3 2024 Summary06 05 Full Year Results by Quarter 07 Appendix
Slide 4: 4Q24 Overall Performance Steady Despite Prolonged Softness in Freight Cycle
4Q24 Overall Performance Steady Despite Prolonged Softness in Freight Cycle $76M O P E R AT I N G I N C O M E $69M 10.9% margin C O N S O L I D AT E D E B I T D A ( 1 ) $382M L I Q U I D I T Y ( 2 ) 5.5x ~$59M cushion LT M C O V E N A N T N E T L E V E R A G E ( 1 ) 1. Non-GAAP financial measure. Ca
Slide 5: Consolidated Results by Quarter
$55 $81 $77 $63 $89 $86 $69 1Q24 2Q24 3Q24 4Q24 Consolidated Results by Quarter Revenue Consolidated EBITDA $ (2) & Consolidated EBITDA Margin % (2) 5 (1) (1) 1. Pro-forma adjusted to reflect the Omni acquisition calculated in accordance with Article 11 of Regulation S-X. As a result, this number di
Slide 6: Expedited Freight Segment Results by Quarter
Expedited Freight Segment Results by Quarter Segment Revenue 6 $273 $291 $285 $266 1Q24 2Q24 3Q24 4Q24 (1) 1. Segment totals do not include intercompany eliminations or corporate unallocated expenses. 2. Non-GAAP financial measure. Reconciliation provided in the Appendix on slide 17 Reported EBITDA7
Slide 7: Omni Logistics Segment Results by Quarter
Omni Logistics Segment Results by Quarter Segment Revenue 7 (1) 1. Segment totals do not include intercompany eliminations or corporate unallocated expenses. 2. Non-GAAP financial measure. Reconciliation provided in the Appendix on slide 18 $225 $312 $335 $326 1Q24 2Q24 3Q24 4Q24 Reported EBITDA $ (
Slide 8: Intermodal Segment Results by Quarter
Intermodal Segment Results by Quarter Segment Revenue 8 (1) 1. Segment totals do not include intercompany eliminations or corporate unallocated expenses. 2. Non-GAAP financial measure. Reconciliation provided in the Appendix on slide 19 $8 $10 $9 $10 14.6% 16.9% 15.1% 17.5% 1Q24 2Q24 3Q24 4Q24 $56 $
Slide 9: 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 10: No Long-Term Debt Maturities Until December 2030
$1,045 $725 2024 2025 2026 2027 2028 2029 2030 2031 Key Commentary First Lien Term Loan Senior Secured Notes ▪ No material maturities within the next 4 years ▪ Long period of time to effectuate integration and transformation and garner benefits of combination No Long-Term Debt Maturities Until Decem
Slide 11: Deleveraging Remains a Key Priority for Management
1Q24 2Q24 3Q24 4Q24 Term Loan B 1,045$ 1,045$ 1,045$ 1,045$ Senior Sec. Notes 725$ 725$ 725$ 725$ First Lien Debt (2) 1,770$ 1,770$ 1,770$ 1,770$ Net Cash (3) 136$ 68$ 122$ 86$ Net Debt 1,634$ 1,702$ 1,648$ 1,684$ Consolidated LTM EBITDA (1) 355$ 342$ 332$ 308$ Leverage Ratio 4.6x 5.0x 5.0x 5.5x $34
Slide 12: Amended Credit Facility Agreement – December 2024
Amended Credit Facility Agreement – December 2024 12 6.75x 6.75x 6.75x 6.75x 6.50x 6.25x 6.00x 5.75x 5.50x 5.50x5.50x 5.25x 5.00x 4.75x 4.50x 4.50x 4.50x 4.50x 4.50x 4.50x 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 Thereafter New Previous First Lien Net Leverage Covenant(1) 1. Calculated pursuant
Slide 13: Cash Flow: Unrestricted Cash Balance Bridge
$85 $81 $(22) $(27) $19 $137 $42 $(12) $(64) $2 $105 6/30 Unrestricted Cash Balance Operating Cash Flow Transaction & Integration Professional Fees Debt Service LC Release 9/30 Unrestricted Cash Balance Operating Cash Flow Transaction & Integration Professional Fees Debt Service LC Release 12/31 Unr
Slide 14: 2024 Summary
Completed transaction in 1Q24 Brought in new senior leadership beginning in April Continuing as an industry leader in on-time service and claims rates Transforming from separate legal entity driven organizations to a product, service and operations driven team with stronger back-office support, proc
Slide 15: Appendix
Appendix 15
Slide 16: Net Income to Consolidated EBITDA Reconciliation
1. Non-GAAP financial measure. 2. Totals may not foot due to rounding Net Income to Consolidated EBITDA Reconciliation 16 $ in millions Consolidated EBITDA Reconciliation 1Q24 2Q24 3Q24 4Q24 TTM (12/31/2024) Net (loss) income from continuing operations ($89) ($966) ($34) ($35) ($1,125) Interest expe
Slide 17: FY2024 Segment Performance – Expedited Freight
1Q24 2Q24 3Q24 4Q24 FY 2024 Expedited Freight Operating revenue $273 $291 $285 $266 $1,115 Operating expenses Purchased transportation 128 143 140 136 546 Salaries, wages, and employee benefits 63 64 59 57 242 Operating leases 15 15 16 18 64 Depreciation and amortization 10 11 10 10 41 Insurance and
Slide 18: FY2024 Segment Performance – Omni Logistics
1Q24 2Q24 3Q24 4Q24 FY 2024 Omni Logistics Operating revenue $225 $312 $335 $326 $1,197 Operating expenses Purchased transportation 144 179 195 183 701 Salaries, wages, and employee benefits 49 58 55 54 216 Operating leases 19 27 28 23 97 Depreciation and amortization 17 33 11 23 84 Insurance and cl
Slide 19: FY2024 Segment Performance – Intermodal
1Q24 2Q24 3Q24 4Q24 FY 2024 Intermodal Operating revenue $56 $59 $57 $60 $233 Operating expenses Purchased transportation 17 19 18 19 74 Salaries, wages, and employee benefits 15 15 15 14 59 Operating leases 5 5 6 6 22 Depreciation and amortization 5 5 5 5 18 Insurance and claims 3 3 3 2 10 Fuel exp
Slide 20: Legacy Forward Air LTL Operating Metrics
12.8 13.2 13.3 13.4 12.9 13.6 13.0 12.2 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 770 801 821 815 827 821 858 856 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 $198 $193 $199 $195 $200 $200 $207 $203 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Legacy Forward Air LTL Operating Metrics 20 Shipments per Day Weight