Forward Air Corporation · NASDAQ:FWRD
Forward Air — Q3 2024 Earnings Presentation
19 slides from Forward Air's earnings presentation, Nov 4, 2024
Slide 1: Forward Air 3Q24 Earnings Presentation
Forward Air 3Q24 Earnings Presentation November 4, 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 3Q24 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: 3Q24 Performance Steady Amidst Challenging Market Backdrop
3Q24 Performance Steady Amidst Challenging Market Backdrop $23M O P E R AT I N G I N C O ME $77M 11.7% margin C O N S O LI D AT E D E B I T D A ( 1 ) $460M L I Q U I D I T Y ( 2 ) 5.4x LT M C O V E N A N T N E T L E V E RA G E ( 1 ) 1. Non-GAAP financial measure. Please note that this is calculated
Slide 5: Revenue and Consolidated EBITDA & Margin
1. Transaction-adjusted 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 credit agreement Sequential improveme
Slide 6: Legacy Forward Air LTL Metrics Stable to Improving
Legacy Forward Air LTL Metrics Stable to Improving 6 Shipments per Day Weight per Shipment Revenue per Shipment Excluding Fuel In 000’s In pounds In $’s 3Q24 weight per shipment of 858 pounds with a 4.5% YoY increase Driven by strategic pricing decisions to target higher weight shipments (fewer
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: No Maturities Over Next Years
8 No Maturities Over Next 5 Years(1) 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 5 years(1) Long period of time to effectuate integration and transformation and garner benefits of combination
Slide 9: Deleveraging Remains a Key Priority for Management
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. Undrawn revolver balance 5. Totals may not foot
Slide 10: Remain Committed to Previously Announced Capital Allocation Plan
Remain Committed to Previously Announced Capital Allocation Plan with a Focus on Improving Performance 10 Deleverage Deleveraging is a key priority, demonstrated by $80M repayment of term loan in 1Q24 Actively reviewing portfolio to identify opportunities to dispose of any non-core assets Divi
Slide 11: Significant Increase of Unrestricted Cash in 3Q24
11 Significant Increase of Unrestricted Cash in 3Q24 1. Amounts exclude letters of credit restricted cash collateral Change in Unrestricted Cash (1) (1) Key Commentary 1• $27M Term Loan B interest payment • Professional fees associated with Omni transaction, integration, and other non- recurring ite
Slide 12: 3Q24 Summary
12 3Q24 Summary Integration and Cost Reductions Progressing Cash and Liquidity Increasing Completed transaction in 1Q24 Brought in new senior leadership in April and May Actioned cost reduction items in late 1Q24 and 2Q24 Continuing as an industry leader in on-time service and claims rates Transform
Slide 13: Appendix
Appendix (Aforward’ Y¥ Omni Logistics 5
Slide 14: Covenant Leverage Reconciliation
Covenant Leverage Reconciliation 14 1. Non-GAAP financial measure. Reconciliations and other information required by Regulation G can be found in the Appendix section of the presentation 2. Reversal of previously expensed debt issuance costs that were reversed and capitalized in 3Q24 3. Non-GAAP fin
Slide 15: Net Income to Consolidated EBITDA Reconciliation
1. Non-GAAP financial measure. Net Income to Consolidated EBITDA(1) Reconciliation 15 Consolidated EBITDA Reconciliation 4Q23 1Q24 2Q24 3Q24 Net (loss) income from continuing operations $3 ($89) ($966) ($34) Interest expense 24 41 47 53 Income tax (benefit) expense (6) (18) (175) 1 Depreciation and
Slide 16: FY2024 YTD Segment Performance – Omni Logistics
FY2024 YTD Segment Performance – Omni Logistics 16 1 1Q24 2Q24 3Q24 YTD FY24 Omni Logistics Operating revenue $225 $312 $335 $871 Operating expenses Purchased transportation 144 179 195 518 Salaries, wages, and employee benefits 49 58 55 161 Operating leases 19 27 28 73 Depreciation and amortization
Slide 17: FY2024 YTD Segment Performance – Expedited Freight
1Q24 2Q24 3Q24 YTD FY24 Expedited Freight Operating revenue $273 $291 $285 $849 Operating expenses Purchased transportation 128 143 140 410 Salaries, wages, and employee benefits 63 64 59 186 Operating leases 15 15 16 45 Depreciation and amortization 10 11 10 31 Insurance and claims 11 11 12 33 Fuel
Slide 18: FY2024 YTD Segment Performance – Intermodal
FY2024 YTD Segment Performance – Intermodal 18 1 1Q24 2Q24 3Q24 YTD FY24 Intermodal Operating revenue $56 $59 $57 $173 Operating expenses Purchased transportation 17 19 18 55 Salaries, wages, and employee benefits 15 15 15 44 Operating leases 5 5 6 15 Depreciation and amortization 5 5 5 14 Insurance
Slide 19: 1Q24 Pro Forma Net Income Reconciliation
1Q24Pro Forma Net Income Reconciliation ($89)1Q 2024 Reported Net Income (71)Standalone Omni (January 1 – January 24, 2024) Net Income ($159)Pro Forma 1Q24 Net Income GAAP to Non-GAAP Reconciliation