Forward Air(US:FWRD)2025-05-07 21:18Revenue Performance - Operating revenues increased by $71,468, or 13.2%, to $613,281 for the three months ended March 31, 2025, compared to $541,813 for the same period in 2024[79] - The Omni Logistics segment contributed an increase of $98,632 in operating revenues due to an additional twenty-four days included in 2025 compared to 2024[79] - The Expedited Freight segment experienced a revenue decline of $23,914, or 8.8%, to $249,381 for the three months ended March 31, 2025[78] - The Intermodal segment reported an increase in revenue of $6,200, or 11.0%, to $62,492 for the three months ended March 31, 2025[78] - Operating revenue for Omni Logistics increased by $98,632, or 43.9%, to $323,470 for the three months ended March 31, 2025, from $224,838 in 2024[96] Operating Expenses - Operating expenses rose by $973, or 0.2%, to $608,518 for the three months ended March 31, 2025, primarily due to an increase of $66,672 from the Omni Logistics segment[80] - Total operating expenses for the Expedited Freight segment decreased by $20,050, or 7.9%, to $233,747 for the three months ended March 31, 2025, compared to $253,797 in 2024[90] - Purchased transportation for Omni Logistics increased by $41,310, or 28.6%, to $185,734 for the three months ended March 31, 2025, from $144,424 in 2024[97] - Salaries, wages, and employee benefits for Omni Logistics increased by $8,008, or 16.4%, to $56,783 for the three months ended March 31, 2025, compared to $48,775 in 2024[98] - Other operating expenses for Omni Logistics increased by $2,755, or 12.6%, to $24,626 for the three months ended March 31, 2025, from $21,871 in 2024[99] Income and Loss - Income from operations increased by $70,495, or 107.2%, to $4,763 for the three months ended March 31, 2025, compared to a loss of $65,732 for the same period in 2024[81] - Net loss attributable to Forward Air decreased by $11,075, or 17.9%, to $50,637 for the three months ended March 31, 2025, compared to $61,712 for the same period in 2024[78] - Net loss decreased by $27,603, or 31.1%, to $61,191 for the three months ended March 31, 2025, compared to a loss of $88,794 for the same period in 2024[84] - Corporate operating loss decreased to $19,788 for the three months ended March 31, 2025, from $60,231 in the same period in 2024[108] Cash Flow and Capital Expenditures - Net cash provided by operating activities was $27,615 for the three months ended March 31, 2025, compared to a net cash used of $51,719 for the same period in 2024[110] - Capital expenditures for the three months ended March 31, 2025, were $11,906, compared to $4,970 for the same period in 2024[111] Strategic Initiatives - A comprehensive review of strategic alternatives has been initiated by the Board to maximize shareholder value, including potential sale or merger options[75] - The company continues to focus on optimizing density and yield management to enhance profitability amidst fluctuating economic conditions[65] - The company is actively monitoring macroeconomic conditions, including tariff impacts, which have affected freight demand and overall shipment volumes[74] Tax and Interest Expenses - Interest expense, net increased to $45,547 for the three months ended March 31, 2025, compared to $40,753 for the same period in 2024, primarily due to the Omni acquisition[82] - The effective tax rate for the three months ended March 31, 2025 was (47.1)%, a significant decrease from 17.1% for the same period in 2024, influenced by interest expense disallowances[83] Operational Metrics - Drayage shipments rose by 2.9% to 64,449, while drayage revenue per shipment increased by 7.4% to $883[102] - Purchased transportation expenses increased by $2,733, or 15.7%, to $20,176, representing 32.3% of operating revenues[103] - Salaries, wages, and employee benefits rose by $849, or 5.6%, to $15,931, accounting for 25.5% of operating revenues[104] - Operating leases increased by $1,086, or 23.1%, to $5,778, making up 9.2% of operating revenues[105] - Other operating expenses decreased by $496, or 8.4%, to $5,399, which was 8.6% of operating revenues[106] - Income from operations increased by $1,956, or 54.5%, to $5,542, representing 8.9% of operating revenues[107]