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Mar 31, 2020
Forward Air Q1 2020 Earnings Report
Reported record revenue for the first quarter, but income was impacted by COVID-19.
Key Takeaways
Forward Air Corporation reported a 6.5% increase in revenue for the three months ended March 31, 2020, reaching $342.5 million compared to $321.5 million in the same period in 2019. However, income from operations decreased to $11.7 million from $24.7 million, and net income declined to $8.4 million from $18.4 million in the prior year period, impacted by COVID-19.
First quarter revenue increased by 6.5% year-over-year, reaching a record $342.5 million.
Income from operations decreased to $11.7 million, compared to $24.7 million in the same period last year.
Net income was $8.4 million, a decrease from $18.4 million in the prior year period.
The company is enhancing liquidity and cost-control measures in response to COVID-19 impacts.
Revenue by Segment
Forward Guidance
Due to the uncertainty created by COVID-19, Forward Air is suspending quarterly guidance, but expects to remain free cash flow positive throughout 2020 and has taken significant steps to enhance financial flexibility.
Positive Outlook
- Expect to remain free cash flow positive throughout 2020.
- Increased cash balance of $104 million as of April 29th.
- $75 million of new availability on committed credit line.
- Total liquidity position of $179 million.
- Evaluating strategic options for Pool Distribution.
Challenges Ahead
- COVID-19 has impacted all modes due to exposure to non-essential freight.
- Volumes fell sharply in March and April.
- Visibility is limited.
- Cost reduction impacts will be more fully realized in the second quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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