Slide 1: Forward Air Q1 Earnings and Business Update
Forward Air Q1 Earnings and Business Update May 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 3 Appendix Omni Integration Capital Structure & Allocation Update on Business Results
Slide 4: A Powerful Combination
A Powerful Combination 4 Category leader in expedited LTL and uniquely positioned to deliver integrated global supply chain solutions for our customers’ most service-sensitive logistics needs + Integrated Capabilities Customer Oriented Culture Superior Level of Service Significant Value Creation Opp
Slide 5: Omni Core Service Offerings
Omni Core Service Offerings 5 Omni is a leading 3PL providing customized logistics solutions for high-value, mission-critical freight for some of the industry’s most demanding customers Value-Added Warehousing and Distribution ✓Global warehousing, distribution and fulfillment solutions ✓ Free Trade
Slide 6: Forward Air Standalone
✓ Softer freight conditions persisted throughout 2023, leading to topline decline YoY ✓ However, precision execution of the revenue growth strategies led to an adjusted EBITDA margin expansion of 170bps from 2021(1) ✓ Brokerage revenue decreased 28.1% YoY in 2023 due to a decrease in loads and reven
Slide 7: Omni Standalone
Omni Standalone 7 ($ in millions) FY Revenue FY Adjusted EBITDA(1) FY Capital Expenditures Margin: 17.4% + % Margin Average % of Revenue: 1.1% + % of Revenue Growth trend impacted by 2023 freight recession Notes: 2019 figures are unadjusted (1) See Appendix for GAAP to non GAAP reconciliation $462 $
Slide 8: First Quarter 2024 Financial Results
First Quarter 2024 Financial Results 8 $542M Revenue $13M Adjusted Operating Income(1) $29M Adjusted EBITDA(1)(2) Notes: (1) See Appendix for GAAP to non GAAP reconciliation (2) Includes impact from “Other Operations” In spite of the protracted freight recession, the less-than-truckload line of busi
Slide 9: First Quarter 2024 Metrics
9 First Quarter 2024 Metrics April has seen an upward sequential trajectory month over month, positioning the business well for the year Expedited Freight Revenue $273M +1.4% Adjusted EBITDA(1) $30M (20.2%) % Margin 10.9% (290 bps) Intermodal Revenue $56M (36.2%) Adjusted EBITDA(1) $8M (48.5%) % Mar
Slide 10: Updated Omni Acquisition Cost Synergy Targets
Updated Omni Acquisition Cost Synergy Targets 10 Network Optimization (LTL Linehaul + LTL PUD) Facilities Consolidation SG&A and Other Technology Drayage / Brokerage Total Already Achieved $35.0 $6.7 $13.0 $0.6 - $55.4 Estimated Total Opportunity $40.5 $15.6 $11.3 $2.7 $3.5 $73.4 Estimated at Announ
Slide 11: Capital Structure Overview as of March 31, 2024
Capital Structure Overview as of March 31, 2024 11 Note: (1) Undrawn revolver balance (2) See Appendix for bank covenant leverage calculation No material maturities in next 5 years ▪ $1,045M of term loans mature in 2030 ▪ $725M of notes mature in 2031 ▪ Currently in compliance with bank covenants(2)
Slide 12: Capital Allocation Roadmap
Capital Allocation Roadmap 12 Capital Expenditures Debt Paydown Dividends & Share Repurchases Strategic M&A Asset light business model with capital expenditures expected to remain at 1 - 2% of revenues Deleveraging is a key priority, demonstrated by repayment of $80M of term loans in Q1 Dividends an
Slide 13: Appendix
Appendix 13
Slide 14: Forward Air Standalone Non-GAAP Reconciliation
Forward Air Standalone Non-GAAP Reconciliation 14 EBITDA Reconciliation 2023 2022 2021 2020 2019 Net Income $43 $179 $107 $37 $77 Interest expense 32 5 4 5 3 Income tax expense (benefit) 14 63 36 11 26 Depreciation and amortization 57 43 35 33 35 Reported EBITDA $146 $290 $182 $86 $141 Vehicle liabi
Slide 15: Omni Standalone Non-GAAP Reconciliation
Omni Standalone Non-GAAP Reconciliation 15 EBITDA Reconciliation 2023 2022 2021 2020 2019 Net Income ($243) $16 ($3) ($11) $25 Interest expense 165 102 45 20 20 Income tax expense (benefit) 5 6 5 2 1 Depreciation and amortization 65 56 35 12 11 Reported EBITDA ($8) $180 $83 $23 $58 Due diligence, in
Slide 16: Combined Company Non-GAAP Reconciliation
Combined Company Non-GAAP Reconciliation 16 EBITDA Reconciliation Q1 2024 Net Income (Loss) ($89) Interest expense 41 Income tax expense (benefit) (18) Depreciation and amortization 32 Reported EBITDA ($34) Transaction and integration costs 58 Severance 6 Adjusted EBITDA $29 Operating Income Reconci
Slide 17: Segment Level Non-GAAP Reconciliation
Segment Level Non-GAAP Reconciliation 17 Expedited Freight EBITDA Reconciliation Q1 2024 Q1 2023 Income from Operations $19 $30 Depreciation and amortization 10 8 Reported EBITDA $30 $37 Intermodal EBITDA Reconciliation Q1 2024 Q1 2023 Income from Operations $4 $11 Depreciation and amortization 5 5
Slide 18: Segment Level Non-GAAP Reconciliation (Cont'd)
Segment Level Non-GAAP Reconciliation (Cont’d) 18 Omni EBITDA Reconciliation Q1 2024(1) Q1 2023 Net Income ($86) ($56) Interest expense 13 38 Income tax expense (benefit) 2 1 Depreciation and amortization 6 16 Reported EBITDA ($65) ($0) Due diligence, integration and transaction costs 50 5 Other nor
Slide 19: Covenant Leverage Reconciliation
Covenant Leverage Reconciliation 19 EBITDA Reconciliation TTM (3/31/24) Reported EBITDA ($10) Due diligence, transaction and integration costs 222 Other normalization EBITDA adjustments 20 Other pro forma EBITDA adjustments 6 Share-based compensation 9 Severance 7 Change in fair value of contingent