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Jun 30, 2020
Forward Air Q2 2020 Earnings Report
Reported profitable income from operations and positive operating and free cash flow. Business rebounded from April impact of COVID-19, with June continuing operations revenue and operating income above last year’s levels.
Key Takeaways
Forward Air Corporation reported a decrease in operating revenue and income from operations compared to the same quarter last year, but experienced a rebound in June with revenue and operating income exceeding the previous year's levels, after adjusting for one-time items. The company also reported positive operating and free cash flow.
Teams stepped up for customers, recovering from April lows with record service levels.
June's top and bottom lines exceeded last year's on a continuing operations basis.
Results include non-recurring items like a $2.1 million gain from fair value changes and offsets from severance and COVID-19 related reserves.
Pool Distribution is reported as a discontinued operation.
Revenue by Segment
Forward Guidance
The Company expects third quarter year-on-year revenue growth to be 1% to 5% and net income per diluted share to be between $0.40 and $0.44.
Positive Outlook
- Expect third quarter year-on-year revenue growth to be 1% to 5%
- Expect net income per diluted share to be between $0.40 and $0.44
- Board of Directors declared a quarterly cash dividend of $0.18 per share of common stock
- Total annual dividend of $0.72 for the full year 2020, payable in quarterly increments of $0.18 per share of common stock.
Challenges Ahead
- Prolonged impact of COVID-19 and actions taken to mitigate those impacts.
- Economic factors such as recessions, inflation, higher interest rates and downturns in customer business cycles.
- The creditworthiness of our customers and their ability to pay for services rendered
- More limited liquidity than expected which limits our ability to make key investments
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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