Forward Air Provides Update on January 2024 Performance

Rhea-AI Summary

Forward Air Corporation (NASDAQ: FWRD) provided LTL Expedited Freight operating statistics for January 2024, showing a 9.8% increase in weight per shipment, a 9.2% increase in pounds per day, and a 1.9% increase in revenue per ton mile, excluding fuel. The Chairman and CEO, Tom Schmitt, highlighted the company's focus on increasing tonnage, refining freight quality, and maximizing revenue per shipment, along with the successful execution of operational synergies. The company plans to update the market on a comprehensive plan and key milestones in the coming weeks.

Market Research Analyst

The reported increase in weight per shipment and pounds per day by Forward Air Corporation signifies a robust growth in freight volume, which is a positive indicator of the company's operational performance. This growth could be attributed to an expansion in customer base or an increase in demand for expedited LTL (Less-Than-Truckload) shipping services. The improvement in revenue per ton mile suggests that the company is not only moving more freight but is also doing so more efficiently, potentially through better route management or pricing strategies.

Investors may view these metrics favorably as they reflect both top-line growth and operational efficiency. A consistent increase in these metrics over time often correlates with improved financial performance, which can drive stock value upward. It’s important to note that the exclusion of fuel from revenue per ton mile calculations provides a clearer picture of operational profitability, unaffected by volatile fuel costs.

Financial Analyst

The operational synergies mentioned by Tom Schmitt, particularly the integration of Omni linehaul, suggest Forward Air is successfully implementing strategic initiatives that could lead to cost savings and enhanced operational efficiency. The reference to operational synergies ahead of schedule indicates management's effectiveness in executing its business strategy, which could be a positive signal to investors regarding the company's future performance.

Moreover, the anticipation of a comprehensive plan and key milestones in the weeks ahead could imply that Forward Air is positioning itself for sustained growth. The market typically reacts to such forward-looking statements and as details emerge, they may have a material impact on the company's valuation. Stakeholders should monitor the upcoming announcements for insights into the company's strategic direction and potential implications for its long-term growth trajectory.

Logistics Industry Expert

The LTL sector is highly competitive and Forward Air's reported increases in key operational metrics indicate that it is outperforming industry norms, which often hover around low single-digit growth rates. The 20 percent year-over-year increase in pounds per day is particularly noteworthy and suggests significant market share gains or successful penetration into new markets.

It's also crucial to understand the impact of expedited freight services within the logistics industry. Expedited LTL is a niche but high-margin service that caters to time-sensitive shipments and Forward Air’s performance in this area could signal an overall uptick in economic activity or a shift in consumer expectations towards faster delivery times. The company's ability to refine freight quality likely reflects a strategic focus on this lucrative segment, which can lead to higher profitability.

GREENEVILLE, Tenn.--(BUSINESS WIRE)-- Forward Air Corporation (NASDAQ: FWRD) (“Forward”) today provided the following LTL Expedited Freight operating statistics for January 2024.

During this period, weight per shipment increased 9.8%, pounds per day also increased 9.2% compared to the same period last year. Finally, revenue per ton mile increased 1.9% over the same period last year, excluding fuel.

Tom Schmitt, Chairman and Chief Executive Officer of Forward, commented: "We continue to improve on the three metrics that matter most to us – increasing tonnage, refining freight quality and maximizing revenue per shipment. We have executed the first phase of the operational synergies ahead of schedule, folding Omni linehaul into the Forward Air network, which led to higher than 20 percent year over year pounds per day increase in the most recent week. We look forward to updating the market on a comprehensive plan and key milestones in the weeks ahead.”

About Forward Air

Forward Air is a leading asset-light provider of transportation services across the United States, Canada and Mexico. We provide expedited less-than-truckload services, including local pick-up and delivery, shipment consolidation/deconsolidation, warehousing, and customs brokerage by utilizing a comprehensive national network of terminals. In addition, we offer truckload brokerage services, including dedicated fleet services; and intermodal, first-and last-mile, high-value drayage services, both to and from seaports and railheads, dedicated contract and Container Freight Station warehouse and handling services. We are more than a transportation company. Forward is a single resource for your shipping needs. For more information, visit our website at www.forwardaircorp.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain statements that might be considered as forward-looking statements or predictions of future operations including with respect to Forward’s expectations regarding (i) its ability to continue to improve its key operational metrics and (ii) the risk that Forward may be unable to achieve the expected strategic, financial and other benefits of the acquisition of Omni Logistics, LLC, including the realization of expected synergies within the expected time-frames or at all. Such statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are based on management’s belief or interpretation of information currently available. These statements and assumptions involve certain risks and uncertainties including that Forward’s future performance is worse than anticipated. Actual events may also differ from these expectations as a result of the risks identified from time to time in our filings with the Securities and Exchange Commission. We assume no duty to update these statements as of any future date.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240205866299/en/

Forward Air Corporation

Brandon Hammer, 423-636-7173

bhammer@forwardair.com

Source: Forward Air Corporation

What are the LTL Expedited Freight operating statistics for January 2024 for Forward Air Corporation (NASDAQ: FWRD)?

The LTL Expedited Freight operating statistics for January 2024 for Forward Air Corporation (NASDAQ: FWRD) include a 9.8% increase in weight per shipment, a 9.2% increase in pounds per day, and a 1.9% increase in revenue per ton mile, excluding fuel.

Who is the Chairman and CEO of Forward Air Corporation (NASDAQ: FWRD)?

Tom Schmitt is the Chairman and CEO of Forward Air Corporation (NASDAQ: FWRD).

What operational synergies were executed ahead of schedule by Forward Air Corporation (NASDAQ: FWRD)?

Forward Air Corporation (NASDAQ: FWRD) executed the first phase of operational synergies ahead of schedule by folding Omni linehaul into the Forward Air network, leading to a higher than 20 percent year over year pounds per day increase in the most recent week.

What does Forward Air Corporation (NASDAQ: FWRD) plan to update the market on in the coming weeks?

Forward Air Corporation (NASDAQ: FWRD) plans to update the market on a comprehensive plan and key milestones in the coming weeks.