Forward Air Corporation · NASDAQ:FWRD
Forward Air — Investor Presentation (February 2018)
25 slides from Forward Air's investor presentation, Feb 13, 2018
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. Operate an asset-light model utilizing independent owner-operators Provi
Slide 5: Revenue Growth
0 200 400 600 800 1,000 1,200 2010 2011 2012 2013 2014 2015* 2016 2017 $ m ill io n s ( n o n -GA A P ) Consolidated Revenue 5 Revenue Growth 12% annual revenue growth since 2010 Organic as well as acquisitive growth Expanded existing services and introduced new offerings (e.g., Intermodal) *A
Slide 6: Operating Income Growth
0 20 40 60 80 100 120 2010 2011 2012 2013 2014 2015* 2016* 2017 $ m ill io n s (n o n -GA A P ) Consolidated Operating Income 6 Operating Income Growth 11% annual EBIT growth since 2010 Organic as well as acquisitive growth Expedited LTL key contributor; Intermodal growing rapidly *Adjusted to
Slide 7: Addressable Market
7 Addressable Market Business Unit 2017 Revenue TAM TAM Comments Expedited LTL 620 3,500 $1,500 traditional airport-to-airport + $2,000 3PL Truckload Premium Services 179 3,000 $1,500 expedited + $1,500 medical+refrigerated Intermodal 149 7,000 Midwest + SE region Pool Distribution 164 4,000 $1,500
Slide 8: Revenue & Operating Income Mix
8 Revenue & Operating Income Mix LTL 56% TLS 16% Pool 15% IM 13% Revenue: 2017 LTL 79% TLS 4% Pool 6% IM 11% Operating Income: 2017
Slide 9: Expedited LTL Highlights
9 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 10: Expedited LTL Network
ponerse Expedited LTL Network SS“ Conrorarion @ national Hub Regional Hub Station
Slide 11: Truckload Premium Services Highlights
11 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 Expedite
Slide 12: Intermodal Highlights
12 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 2017 Revenue $ 149 M Operating Income $ 13 M EBITDA $ 19 M Owner
Slide 13: Intermodal Network
Intermodal Network © CsT Locations FA Multi-Service Locations
Slide 14: Pool Distribution Highlights
14 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 2017 Revenue $ 164 M
Slide 15: Pool Distribution Network
15 Pool Distribution Network
Slide 16: Technology
16 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 17: Financial Overview
Financial Overview
Slide 18: Financial Overview
18 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 *Adjusted to exclude Towne integration & deal costs (2015) †Adjusted to exclu
Slide 19: Revenue & Earnings History
19 Revenue & Earnings History Revenue (CAGR = 12%) EBITDA (CAGR = 11%) EPS (CAGR = 12%) *Adjusted to exclude CST acquisition costs (2014), Towne integration & deal costs (2015), technology related permanent tax deductions (2015), and impairment charge (2016) ‡Reported EPS of $2.89 less $0.53 impact
Slide 20: Strong Cash Flow Generation
20 Strong Cash Flow Generation $14 $20 $20 $34 $38 $39 $40 $36 $54 $77 $69 $91 $92 $86 $130 $103 $0 $20 $40 $60 $80 $100 $120 $140 2010 2011 2012 2013 2014 2015 2016 2017 ($ in mi llio ns ) Net Capex Cash Flow From Operations
Slide 21: Value Proposition
21 Value Proposition Sustainable Revenue Growth Flexible Asset-Light Model Solid Capital Returns Proven Operating Leverage Strong Balance Sheet
Slide 22: Appendix
Appendix
Slide 23: GAAP vs. Non GAAP Reconciliation
23 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 2017 Q4 2017 Q3 2017 Q2 2017 Q1 2017 2016 Q4 2016 Q3
Slide 24: Segment EBITDA Reconciliation
24 Segment EBITDA Reconciliation Non GAAP Adjustments include impairment charge Expedited LTL LTM 2017 Q4 2017 Q3 2017 Q2 2017 Q1 2017 2016 Q4 2016 Q3 2016 Q2 2016 Q1 2016 GAAP Operating Income 88.1 88.1 23.5 23.2 23.0 18.4 83.5 20.5 21.0 24.9 17.1 (+) Non GAAP Operating Income Adjustments - - - - -
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