Tennessee
|
|
62-1120025
|
(State or other jurisdiction of incorporation)
|
|
(I.R.S. Employer Identification No.)
|
430 Airport Road
Greeneville, Tennessee
|
|
37745
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large accelerated filer
x
|
Accelerated filer
o
|
Non-accelerated filer
o
|
Smaller reporting company
o
|
Table of Contents
|
||
|
|
|
Forward Air Corporation
|
||
|
|
|
|
|
Page
|
|
|
Number
|
Part I.
|
Financial Information
|
|
|
|
|
Item 1.
|
Financial Statements (Unaudited)
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Part II.
|
Other Information
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
Forward Air Corporation
|
|||||||||||||||
Condensed Consolidated Statements of Comprehensive Income
|
|||||||||||||||
(In thousands, except per share data)
|
|||||||||||||||
(Unaudited)
|
|||||||||||||||
|
|
|
|
||||||||||||
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
June 30,
2016 |
|
June 30,
2015 |
|
June 30,
2016 |
|
June 30,
2015 |
||||||||
Operating revenue
|
$
|
238,637
|
|
|
$
|
249,694
|
|
|
$
|
468,185
|
|
|
$
|
455,612
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|||||||
Purchased transportation
|
99,267
|
|
|
107,482
|
|
|
195,743
|
|
|
196,819
|
|
||||
Salaries, wages and employee benefits
|
57,018
|
|
|
61,886
|
|
|
115,695
|
|
|
115,789
|
|
||||
Operating leases
|
14,601
|
|
|
18,277
|
|
|
28,469
|
|
|
34,033
|
|
||||
Depreciation and amortization
|
9,341
|
|
|
9,519
|
|
|
19,009
|
|
|
18,202
|
|
||||
Insurance and claims
|
6,648
|
|
|
6,240
|
|
|
12,044
|
|
|
11,371
|
|
||||
Fuel expense
|
2,999
|
|
|
4,188
|
|
|
5,960
|
|
|
8,208
|
|
||||
Other operating expenses
|
20,669
|
|
|
22,194
|
|
|
41,766
|
|
|
43,033
|
|
||||
Impairment of goodwill, intangibles and other assets
|
42,442
|
|
|
—
|
|
|
42,442
|
|
|
—
|
|
||||
Total operating expenses
|
252,985
|
|
|
229,786
|
|
|
461,128
|
|
|
427,455
|
|
||||
(Loss) income from operations
|
(14,348
|
)
|
|
19,908
|
|
|
7,057
|
|
|
28,157
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|||||||
Interest expense
|
(461
|
)
|
|
(570
|
)
|
|
(1,015
|
)
|
|
(934
|
)
|
||||
Other, net
|
(117
|
)
|
|
(89
|
)
|
|
(145
|
)
|
|
(138
|
)
|
||||
Total other income (expense)
|
(578
|
)
|
|
(659
|
)
|
|
(1,160
|
)
|
|
(1,072
|
)
|
||||
(Loss) income before income taxes
|
(14,926
|
)
|
|
19,249
|
|
|
5,897
|
|
|
27,085
|
|
||||
Income tax (benefit) expense
|
(4,860
|
)
|
|
7,425
|
|
|
2,864
|
|
|
10,425
|
|
||||
Net (loss) income and comprehensive (loss) income
|
$
|
(10,066
|
)
|
|
$
|
11,824
|
|
|
$
|
3,033
|
|
|
$
|
16,660
|
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per share:
|
|
|
|
|
|
|
|
|
|||||||
Basic
|
$
|
(0.33
|
)
|
|
$
|
0.38
|
|
|
$
|
0.10
|
|
|
$
|
0.54
|
|
Diluted
|
$
|
(0.33
|
)
|
|
$
|
0.38
|
|
|
$
|
0.10
|
|
|
$
|
0.53
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends per share:
|
$
|
0.12
|
|
|
$
|
0.12
|
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
Forward Air Corporation
|
|||||||
Condensed Consolidated Statements of Cash Flows
|
|||||||
(In thousands)
|
|||||||
(Unaudited)
|
|||||||
|
|
||||||
|
Six months ended
|
||||||
|
June 30,
2016 |
|
June 30,
2015 |
||||
|
|
||||||
Operating activities:
|
|
|
|
||||
Net income
|
$
|
3,033
|
|
|
$
|
16,660
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
||||
Depreciation and amortization
|
19,009
|
|
|
18,202
|
|
||
Impairment of goodwill, intangible and other assets
|
42,442
|
|
|
—
|
|
||
Share-based compensation
|
4,111
|
|
|
3,676
|
|
||
Loss (gain) on disposal of property and equipment
|
90
|
|
|
(33
|
)
|
||
Provision for (recovery) loss on receivables
|
(12
|
)
|
|
83
|
|
||
Provision for revenue adjustments
|
1,205
|
|
|
1,842
|
|
||
Deferred income tax (benefit)
|
881
|
|
|
(498
|
)
|
||
Excess tax benefit for stock options exercised
|
(87
|
)
|
|
(2,365
|
)
|
||
Changes in operating assets and liabilities
|
|
|
|
||||
Accounts receivable
|
(1,284
|
)
|
|
(4,887
|
)
|
||
Other current assets
|
(1,796
|
)
|
|
(3,210
|
)
|
||
Accounts payable and accrued expenses
|
(6,386
|
)
|
|
(10,908
|
)
|
||
Net cash provided by operating activities
|
61,206
|
|
|
18,562
|
|
||
|
|
|
|
||||
Investing activities:
|
|
|
|
||||
Proceeds from disposal of property and equipment
|
1,100
|
|
|
623
|
|
||
Purchases of property and equipment
|
(16,040
|
)
|
|
(11,962
|
)
|
||
Acquisition of business, net of cash acquired
|
(1,700
|
)
|
|
(61,878
|
)
|
||
Other
|
(601
|
)
|
|
(565
|
)
|
||
Net cash used in investing activities
|
(17,241
|
)
|
|
(73,782
|
)
|
||
|
|
|
|
||||
Financing activities:
|
|
|
|
||||
Proceeds from term loan
|
—
|
|
|
125,000
|
|
||
Payments of debt and capital lease obligations
|
(27,883
|
)
|
|
(73,263
|
)
|
||
Proceeds from exercise of stock options
|
1,094
|
|
|
11,351
|
|
||
Payments of cash dividends
|
(7,334
|
)
|
|
(7,433
|
)
|
||
Repurchase of common stock (repurchase program)
|
(19,991
|
)
|
|
—
|
|
||
Common stock issued under employee stock purchase plan
|
215
|
|
|
228
|
|
||
Excess tax benefit for stock options exercised
|
87
|
|
|
2,365
|
|
||
Cash settlement of share-based awards for minimum tax withholdings
|
(1,786
|
)
|
|
(1,926
|
)
|
||
Net cash (used in) provided by financing activities
|
(55,598
|
)
|
|
56,322
|
|
||
Net (decrease) increase in cash
|
(11,633
|
)
|
|
1,102
|
|
||
Cash at beginning of period
|
33,312
|
|
|
41,429
|
|
||
Cash at end of period
|
$
|
21,679
|
|
|
$
|
42,531
|
|
|
Ace
|
|
Towne
|
||||
|
January 25, 2016
|
|
March 9, 2015
|
||||
Tangible assets:
|
|
|
|
|
|||
Accounts receivable
|
$
|
—
|
|
|
$
|
24,068
|
|
Prepaid expenses and other current assets
|
—
|
|
|
2,916
|
|
||
Property and equipment
|
—
|
|
|
2,095
|
|
||
Other assets
|
—
|
|
|
614
|
|
||
Total tangible assets
|
—
|
|
|
29,693
|
|
||
Intangible assets:
|
|
|
|
|
|||
Non-compete agreements
|
20
|
|
|
—
|
|
||
Customer relationships
|
772
|
|
|
66,000
|
|
||
Goodwill
|
908
|
|
|
59,666
|
|
||
Total intangible assets
|
1,700
|
|
|
125,666
|
|
||
Total assets acquired
|
1,700
|
|
|
155,359
|
|
||
|
|
|
|
||||
Liabilities assumed:
|
|
|
|
||||
Current liabilities
|
—
|
|
|
28,920
|
|
||
Other liabilities
|
—
|
|
|
3,886
|
|
||
Debt and capital lease obligations
|
—
|
|
|
59,544
|
|
||
Deferred income taxes
|
—
|
|
|
1,131
|
|
||
Total liabilities assumed
|
—
|
|
|
93,481
|
|
||
Net assets acquired
|
$
|
1,700
|
|
|
$
|
61,878
|
|
|
Useful Lives
|
||
|
Ace
|
|
Towne
|
Customer relationships
|
15 years
|
|
20 years
|
Non-compete agreements
|
5 years
|
|
-
|
|
Six months ended
|
|||||
|
June 30, 2016
|
June 30, 2015
|
||||
Operating revenue
|
$
|
468,185
|
|
$
|
489,839
|
|
Income from operations
|
7,057
|
|
25,850
|
|
||
Net income
|
3,033
|
|
14,181
|
|
||
Net income per share
|
|
|
||||
Basic
|
$
|
0.10
|
|
$
|
0.46
|
|
Diluted
|
$
|
0.10
|
|
$
|
0.46
|
|
|
Expedited LTL
|
|
Truckload Expedited
|
|
Pool Distribution
|
|
Intermodal
|
|
Total
|
||||||||||||||||||||||
|
|
Accumulated
|
|
|
Accumulated
|
|
|
Accumulated
|
|
|
Accumulated
|
|
|
||||||||||||||||||
|
Goodwill
|
Impairment
|
|
Goodwill
|
Impairment
|
|
Goodwill
|
Impairment
|
|
Goodwill
|
Impairment
|
|
Net
|
||||||||||||||||||
Beginning balance, December 31, 2015
|
$
|
99,123
|
|
$
|
—
|
|
|
$
|
45,164
|
|
$
|
—
|
|
|
$
|
12,359
|
|
$
|
(6,953
|
)
|
|
$
|
55,916
|
|
$
|
—
|
|
|
$
|
205,609
|
|
Ace Acquisition
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
908
|
|
—
|
|
|
908
|
|
|||||||||
TQI impairment
|
—
|
|
—
|
|
|
—
|
|
(25,686
|
)
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
(25,686
|
)
|
|||||||||
Adjustment to Towne acquisition
|
(1,530
|
)
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
(1,530
|
)
|
|||||||||
Ending balance, June 30, 2016
|
$
|
97,593
|
|
$
|
—
|
|
|
$
|
45,164
|
|
$
|
(25,686
|
)
|
|
$
|
12,359
|
|
$
|
(6,953
|
)
|
|
$
|
56,824
|
|
$
|
—
|
|
|
$
|
179,301
|
|
|
|
|
|
|
|
|
|
||||
|
Six months ended
|
||||||
|
June 30,
2016 |
|
June 30,
2015 |
||||
Expected dividend yield
|
1.0
|
%
|
|
1.0
|
%
|
||
Expected stock price volatility
|
29.0
|
%
|
|
33.9
|
%
|
||
Weighted average risk-free interest rate
|
1.3
|
%
|
|
1.6
|
%
|
||
Expected life of options (years)
|
6.0
|
|
|
6.1
|
|
||
Weighted average grant date fair value
|
$
|
12
|
|
|
$
|
16
|
|
|
Three months ended June 30, 2016
|
|||||||||||
|
|
|
|
|
|
|
Weighted-
|
|||||
|
|
|
Weighted-
|
|
Aggregate
|
|
Average
|
|||||
|
|
|
Average
|
|
Intrinsic
|
|
Remaining
|
|||||
|
Options
|
|
Exercise
|
|
Value
|
|
Contractual
|
|||||
|
(000)
|
|
Price
|
|
(000)
|
|
Term
|
|||||
Outstanding at March 31, 2016
|
868
|
|
|
$
|
34
|
|
|
|
|
|
||
Granted
|
—
|
|
|
—
|
|
|
|
|
|
|||
Exercised
|
(10
|
)
|
|
22
|
|
|
|
|
|
|||
Forfeited
|
(3
|
)
|
|
38
|
|
|
|
|
|
|||
Outstanding at June 30, 2016
|
855
|
|
|
$
|
34
|
|
|
$
|
9,014
|
|
|
3.1
|
Exercisable at June 30, 2016
|
623
|
|
|
$
|
30
|
|
|
$
|
9,097
|
|
|
2.0
|
|
Three months ended
|
||||||
|
June 30,
2016 |
|
June 30,
2015 |
||||
Share-based compensation for options
|
$
|
375
|
|
|
$
|
342
|
|
Tax benefit for option compensation
|
$
|
140
|
|
|
$
|
132
|
|
Unrecognized compensation cost for options, net of estimated forfeitures
|
$
|
2,414
|
|
|
$
|
2,266
|
|
Weighted average period over which unrecognized compensation will be recognized (years)
|
2.0
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Six months ended June 30, 2016
|
|||||||||||
|
|
|
|
|
|
|
Weighted-
|
|||||
|
|
|
Weighted-
|
|
Aggregate
|
|
Average
|
|||||
|
|
|
Average
|
|
Intrinsic
|
|
Remaining
|
|||||
|
Options
|
|
Exercise
|
|
Value
|
|
Contractual
|
|||||
|
(000)
|
|
Price
|
|
(000)
|
|
Term
|
|||||
Outstanding at December 31, 2015
|
786
|
|
|
$
|
32
|
|
|
|
|
|
||
Granted
|
122
|
|
|
44
|
|
|
|
|
|
|||
Exercised
|
(48
|
)
|
|
23
|
|
|
|
|
|
|||
Forfeited
|
(5
|
)
|
|
38
|
|
|
|
|
|
|||
Outstanding at June 30, 2016
|
855
|
|
|
$
|
34
|
|
|
$
|
9,014
|
|
|
3.1
|
Exercisable at June 30, 2016
|
623
|
|
|
$
|
30
|
|
|
$
|
9,097
|
|
|
2.0
|
|
|
|
|
||||
|
Six months ended
|
||||||
|
June 30,
2016 |
|
June 30,
2015 |
||||
Share-based compensation for options
|
$
|
723
|
|
|
$
|
678
|
|
Tax benefit for option compensation
|
$
|
269
|
|
|
$
|
261
|
|
Unrecognized compensation cost for options, net of estimated forfeitures
|
$
|
2,414
|
|
|
$
|
2,266
|
|
Weighted average period over which unrecognized compensation will be recognized (years)
|
2.0
|
|
|
|
|
Three months ended June 30, 2016
|
|||||||||
|
|
|
Weighted-
|
|
Aggregate
|
|||||
|
Non-vested
|
|
Average
|
|
Grant Date
|
|||||
|
Shares
|
|
Grant Date
|
|
Fair Value
|
|||||
|
(000)
|
|
Fair Value
|
|
(000)
|
|||||
Outstanding and non-vested at March 31, 2016
|
222
|
|
|
$
|
46
|
|
|
|
||
Granted
|
9
|
|
|
43
|
|
|
|
|||
Vested
|
(1
|
)
|
|
37
|
|
|
|
|||
Forfeited
|
(2
|
)
|
|
45
|
|
|
|
|||
Outstanding and non-vested at June 30, 2016
|
228
|
|
|
$
|
45
|
|
|
$
|
10,363
|
|
|
Three months ended
|
||||||
|
June 30,
2016 |
|
June 30,
2015 |
||||
Share-based compensation for non-vested shares
|
$
|
1,176
|
|
|
$
|
1,022
|
|
Tax benefit for non-vested share compensation
|
$
|
437
|
|
|
$
|
393
|
|
Unrecognized compensation cost for non-vested shares, net of estimated forfeitures
|
$
|
8,470
|
|
|
$
|
7,231
|
|
Weighted average period over which unrecognized compensation will be recognized (years)
|
2.1
|
|
|
|
|
|
|
|
|
|
|||||
|
Six months ended June 30, 2016
|
|||||||||
|
|
|
Weighted-
|
|
Aggregate
|
|||||
|
Non-vested
|
|
Average
|
|
Grant Date
|
|||||
|
Shares
|
|
Grant Date
|
|
Fair Value
|
|||||
|
(000)
|
|
Fair Value
|
|
(000)
|
|||||
Outstanding and non-vested at December 31, 2015
|
191
|
|
|
$
|
46
|
|
|
|
||
Granted
|
134
|
|
|
44
|
|
|
|
|||
Vested
|
(93
|
)
|
|
44
|
|
|
|
|||
Forfeited
|
(4
|
)
|
|
46
|
|
|
|
|||
Outstanding and non-vested at June 30, 2016
|
228
|
|
|
$
|
45
|
|
|
$
|
10,363
|
|
|
|
|
|
||||
|
Six months ended
|
||||||
|
June 30,
2016 |
|
June 30,
2015 |
||||
Share-based compensation for non-vested shares
|
$
|
2,258
|
|
|
$
|
2,010
|
|
Tax benefit for non-vested share compensation
|
$
|
840
|
|
|
$
|
772
|
|
Unrecognized compensation cost for non-vested shares, net of estimated forfeitures
|
$
|
8,470
|
|
|
$
|
7,231
|
|
Weighted average period over which unrecognized compensation will be recognized (years)
|
2.1
|
|
|
|
|
Six months ended
|
||||
|
June 30,
2016 |
|
June 30,
2015 |
||
Expected stock price volatility
|
22.3
|
%
|
|
23.5
|
%
|
Weighted average risk-free interest rate
|
0.8
|
%
|
|
1.0
|
%
|
|
Three months ended June 30, 2016
|
|||||||||
|
|
|
Weighted-
|
|
Aggregate
|
|||||
|
Performance
|
|
Average
|
|
Grant Date
|
|||||
|
Shares
|
|
Grant Date
|
|
Fair Value
|
|||||
|
(000)
|
|
Fair Value
|
|
(000)
|
|||||
Outstanding and non-vested at March 31, 2016
|
80
|
|
|
$
|
55
|
|
|
|
||
Granted
|
—
|
|
|
—
|
|
|
|
|||
Additional shares awarded based on performance
|
—
|
|
|
—
|
|
|
|
|||
Vested
|
—
|
|
|
—
|
|
|
|
|||
Outstanding and non-vested at June 30, 2016
|
80
|
|
|
$
|
55
|
|
|
$
|
4,373
|
|
|
Three months ended
|
||||||
|
June 30,
2016 |
|
June 30,
2015 |
||||
Share-based compensation for performance shares
|
$
|
363
|
|
|
$
|
333
|
|
Tax benefit for performance share compensation
|
$
|
135
|
|
|
$
|
128
|
|
Unrecognized compensation cost for performance shares, net of estimated forfeitures
|
$
|
2,442
|
|
|
$
|
2,399
|
|
Weighted average period over which unrecognized compensation will be recognized (years)
|
2.0
|
|
|
|
|
|
|
|
|
|
|||||
|
Six months ended June 30, 2016
|
|||||||||
|
|
|
Weighted-
|
|
Aggregate
|
|||||
|
Performance
|
|
Average
|
|
Grant Date
|
|||||
|
Shares
|
|
Grant Date
|
|
Fair Value
|
|||||
|
(000)
|
|
Fair Value
|
|
(000)
|
|||||
Outstanding and non-vested at December 31, 2015
|
77
|
|
|
$
|
52
|
|
|
|
||
Granted
|
29
|
|
|
49
|
|
|
|
|||
Additional shares awarded based on performance
|
7
|
|
|
40
|
|
|
|
|||
Vested
|
(33
|
)
|
|
40
|
|
|
|
|||
Outstanding and non-vested at June 30, 2016
|
80
|
|
|
$
|
55
|
|
|
$
|
4,373
|
|
|
|
|
|
||||
|
Six months ended
|
||||||
|
June 30,
2016 |
|
June 30,
2015 |
||||
Share-based compensation for performance shares
|
$
|
714
|
|
|
$
|
635
|
|
Tax benefit for performance share compensation
|
$
|
266
|
|
|
$
|
244
|
|
Unrecognized compensation cost for performance shares, net of estimated forfeitures
|
$
|
2,442
|
|
|
$
|
2,399
|
|
Weighted average period over which unrecognized compensation will be recognized (years)
|
2.0
|
|
|
|
|
Three months ended June 30, 2016
|
|||||||||
|
|
|
Weighted-
|
|
Aggregate
|
|||||
|
Non-vested
|
|
Average
|
|
Grant Date
|
|||||
|
Shares
|
|
Grant Date
|
|
Fair Value
|
|||||
|
(000)
|
|
Fair Value
|
|
(000)
|
|||||
Outstanding and non-vested at March 31, 2016
|
15
|
|
|
$
|
51
|
|
|
|
||
Granted
|
16
|
|
|
44
|
|
|
|
|||
Vested
|
(15
|
)
|
|
51
|
|
|
|
|||
Outstanding and non-vested at June 30, 2016
|
16
|
|
|
$
|
44
|
|
|
$
|
688
|
|
|
Three months ended
|
||||||
|
June 30,
2016 |
|
June 30,
2015 |
||||
Share-based compensation for non-vested shares
|
$
|
211
|
|
|
$
|
156
|
|
Tax benefit for non-vested share compensation
|
$
|
65
|
|
|
$
|
60
|
|
Unrecognized compensation cost for non-vested shares, net of estimated forfeitures
|
$
|
592
|
|
|
$
|
541
|
|
Weighted average period over which unrecognized compensation will be recognized (years)
|
0.9
|
|
|
|
|
|
|
|
|
|
|||||
|
Six months ended June 30, 2016
|
|||||||||
|
|
|
Weighted-
|
|
Aggregate
|
|||||
|
Non-vested
|
|
Average
|
|
Grant Date
|
|||||
|
Shares
|
|
Grant Date
|
|
Fair Value
|
|||||
|
(000)
|
|
Fair Value
|
|
(000)
|
|||||
Outstanding and non-vested at December 31, 2015
|
15
|
|
|
$
|
51
|
|
|
|
||
Granted
|
16
|
|
|
44
|
|
|
|
|||
Vested
|
(15
|
)
|
|
51
|
|
|
|
|||
Outstanding and non-vested at June 30, 2016
|
16
|
|
|
$
|
44
|
|
|
$
|
688
|
|
|
|
|
|
||||
|
Six months ended
|
||||||
|
June 30,
2016 |
|
June 30,
2015 |
||||
Share-based compensation for non-vested shares
|
$
|
382
|
|
|
$
|
316
|
|
Tax benefit for non-vested share compensation
|
$
|
135
|
|
|
$
|
122
|
|
Unrecognized compensation cost for non-vested shares, net of estimated forfeitures
|
$
|
592
|
|
|
$
|
541
|
|
Weighted average period over which unrecognized compensation will be recognized (years)
|
0.9
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
June 30,
2016 |
|
June 30,
2015 |
|
June 30, 2016
|
|
June 30, 2015
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
|
||||||||
Net income and comprehensive income
|
|
$
|
(10,066
|
)
|
|
$
|
11,824
|
|
|
$
|
3,033
|
|
|
$
|
16,660
|
|
Income allocated to participating securities
|
|
(28
|
)
|
|
(79
|
)
|
|
(55
|
)
|
|
(111
|
)
|
||||
Numerator for basic and diluted income per share - net income
|
|
$
|
(10,094
|
)
|
|
$
|
11,745
|
|
|
$
|
2,978
|
|
|
$
|
16,549
|
|
Denominator (in thousands):
|
|
|
|
|
|
|
|
|
|
|
||||||
Denominator for basic income per share - weighted-average shares
|
|
30,252
|
|
|
30,783
|
|
|
30,356
|
|
|
30,726
|
|
||||
Effect of dilutive stock options (in thousands)
|
|
—
|
|
|
291
|
|
|
169
|
|
|
327
|
|
||||
Effect of dilutive performance shares (in thousands)
|
|
—
|
|
|
30
|
|
|
32
|
|
|
35
|
|
||||
Denominator for diluted income per share - adjusted weighted-average shares
|
|
30,252
|
|
|
31,104
|
|
|
30,557
|
|
|
31,088
|
|
||||
Basic net income per share
|
|
$
|
(0.33
|
)
|
|
$
|
0.38
|
|
|
$
|
0.10
|
|
|
$
|
0.54
|
|
Diluted net income per share
|
|
$
|
(0.33
|
)
|
|
$
|
0.38
|
|
|
$
|
0.10
|
|
|
$
|
0.53
|
|
|
June 30,
2016 |
|
June 30,
2015 |
||
Anti-dilutive stock options (in thousands)
|
301
|
|
|
97
|
|
Anti-dilutive performance shares (in thousands)
|
23
|
|
|
21
|
|
Anti-dilutive non-vested shares and deferred stock units (in thousands)
|
—
|
|
|
—
|
|
Total anti-dilutive shares (in thousands)
|
324
|
|
|
118
|
|
|
|
June 30, 2016
|
||||||
|
|
Carrying Value
|
|
Fair Value
|
||||
Capital leases
|
|
$
|
1,240
|
|
|
$
|
1,307
|
|
|
|
Three months ended June 30, 2016
|
||||||||||||||||||||||
|
|
Expedited LTL
|
|
Truckload Expedited
|
|
Pool Distribution
|
|
Intermodal
|
|
Eliminations & other
|
|
Consolidated
|
||||||||||||
External revenues
|
|
$
|
143,916
|
|
|
$
|
39,232
|
|
|
$
|
31,365
|
|
|
$
|
24,124
|
|
|
$
|
—
|
|
|
$
|
238,637
|
|
Intersegment revenues
|
|
778
|
|
|
208
|
|
|
160
|
|
|
65
|
|
|
(1,211
|
)
|
|
—
|
|
||||||
Depreciation and amortization
|
|
5,278
|
|
|
1,724
|
|
|
1,464
|
|
|
875
|
|
|
—
|
|
|
9,341
|
|
||||||
Share-based compensation expense
|
|
1,842
|
|
|
111
|
|
|
86
|
|
|
120
|
|
|
—
|
|
|
2,159
|
|
||||||
Interest expense
|
|
444
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
|
|
|
461
|
|
||||||
Income from operations
|
|
24,921
|
|
|
(40,282
|
)
|
|
(371
|
)
|
|
2,757
|
|
|
(1,373
|
)
|
|
(14,348
|
)
|
||||||
Total assets
|
|
634,305
|
|
|
50,289
|
|
|
46,675
|
|
|
122,724
|
|
|
(209,566
|
)
|
|
644,427
|
|
||||||
Capital expenditures
|
|
10,493
|
|
|
1,771
|
|
|
1,009
|
|
|
79
|
|
|
—
|
|
|
13,352
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Three months ended June 30, 2015
|
||||||||||||||||||||||
|
|
Expedited LTL
|
|
Truckload Expedited
|
|
Pool Distribution
|
|
Intermodal
|
|
Eliminations & other
|
|
Consolidated
|
||||||||||||
External revenues
|
|
$
|
155,089
|
|
|
$
|
39,178
|
|
|
$
|
27,471
|
|
|
$
|
27,445
|
|
|
$
|
511
|
|
|
$
|
249,694
|
|
Intersegment revenues
|
|
769
|
|
|
217
|
|
|
213
|
|
|
49
|
|
|
(1,248
|
)
|
|
—
|
|
||||||
Depreciation and amortization
|
|
5,563
|
|
|
1,513
|
|
|
1,485
|
|
|
948
|
|
|
10
|
|
|
9,519
|
|
||||||
Share-based compensation expense
|
|
1,514
|
|
|
219
|
|
|
86
|
|
|
71
|
|
|
—
|
|
|
1,890
|
|
||||||
Interest expense
|
|
410
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
137
|
|
|
570
|
|
||||||
Income from operations
|
|
20,796
|
|
|
4,141
|
|
|
(13
|
)
|
|
3,318
|
|
|
(8,334
|
)
|
|
19,908
|
|
||||||
Total assets
|
|
660,473
|
|
|
89,930
|
|
|
45,334
|
|
|
113,216
|
|
|
(199,593
|
)
|
|
709,360
|
|
||||||
Capital expenditures
|
|
2,657
|
|
|
1,847
|
|
|
2,046
|
|
|
183
|
|
|
—
|
|
|
6,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Six months ended June 30, 2016
|
||||||||||||||||||||||
|
|
Expedited LTL
|
|
Truckload Expedited
|
|
Pool Distribution
|
|
Intermodal
|
|
Eliminations & other
|
|
Consolidated
|
||||||||||||
External revenues
|
|
$
|
277,439
|
|
|
$
|
77,648
|
|
|
$
|
64,421
|
|
|
$
|
48,677
|
|
|
$
|
—
|
|
|
$
|
468,185
|
|
Intersegment revenues
|
|
1,633
|
|
|
412
|
|
|
295
|
|
|
136
|
|
|
(2,476
|
)
|
|
—
|
|
||||||
Depreciation and amortization
|
|
10,808
|
|
|
3,473
|
|
|
2,962
|
|
|
1,766
|
|
|
—
|
|
|
19,009
|
|
||||||
Share-based compensation expense
|
|
3,567
|
|
|
161
|
|
|
167
|
|
|
216
|
|
|
—
|
|
|
4,111
|
|
||||||
Interest expense
|
|
961
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|
—
|
|
|
1,015
|
|
||||||
Income from operations
|
|
42,011
|
|
|
(38,717
|
)
|
|
(257
|
)
|
|
5,130
|
|
|
(1,110
|
)
|
|
7,057
|
|
||||||
Total assets
|
|
634,305
|
|
|
50,289
|
|
|
46,675
|
|
|
122,724
|
|
|
(209,566
|
)
|
|
644,427
|
|
||||||
Capital expenditures
|
|
12,571
|
|
|
1,784
|
|
|
1,554
|
|
|
131
|
|
|
—
|
|
|
16,040
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Six months ended June 30, 2015
|
||||||||||||||||||||||
|
|
Expedited LTL
|
|
Truckload Expedited
|
|
Pool Distribution
|
|
Intermodal
|
|
Eliminations & other
|
|
Consolidated
|
||||||||||||
External revenues
|
|
$
|
276,488
|
|
|
$
|
73,433
|
|
|
$
|
54,512
|
|
|
$
|
50,407
|
|
|
$
|
772
|
|
|
$
|
455,612
|
|
Intersegment revenues
|
|
1,577
|
|
|
434
|
|
|
396
|
|
|
114
|
|
|
(2,521
|
)
|
|
—
|
|
||||||
Depreciation and amortization
|
|
10,304
|
|
|
2,923
|
|
|
3,042
|
|
|
1,915
|
|
|
18
|
|
|
18,202
|
|
||||||
Share-based compensation expense
|
|
2,998
|
|
|
418
|
|
|
136
|
|
|
124
|
|
|
—
|
|
|
3,676
|
|
||||||
Interest expense
|
|
523
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
366
|
|
|
934
|
|
||||||
Income from operations
|
|
35,681
|
|
|
7,351
|
|
|
203
|
|
|
5,307
|
|
|
(20,385
|
)
|
|
28,157
|
|
||||||
Total assets
|
|
660,473
|
|
|
89,930
|
|
|
45,334
|
|
|
113,216
|
|
|
(199,593
|
)
|
|
709,360
|
|
||||||
Capital expenditures
|
|
5,351
|
|
|
4,089
|
|
|
2,236
|
|
|
286
|
|
|
—
|
|
|
11,962
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations.
|
|
Three months ended June 30
|
|||||||||||||
|
2016
|
|
2015
|
|
Change
|
|
Percent Change
|
|||||||
Operating revenue:
|
|
|
|
|
|
|
|
|||||||
Expedited LTL
|
$
|
144.7
|
|
|
$
|
155.8
|
|
|
$
|
(11.1
|
)
|
|
(7.1
|
)%
|
Truckload Expedited
|
39.4
|
|
|
39.4
|
|
|
—
|
|
|
—
|
|
|||
Pool Distribution
|
31.5
|
|
|
27.7
|
|
|
3.8
|
|
|
13.7
|
|
|||
Intermodal
|
24.2
|
|
|
27.5
|
|
|
(3.3
|
)
|
|
(12.0
|
)
|
|||
Eliminations and other operations
|
(1.2
|
)
|
|
(0.7
|
)
|
|
(0.5
|
)
|
|
71.4
|
|
|||
Operating revenue
|
238.6
|
|
|
249.7
|
|
|
(11.1
|
)
|
|
(4.4
|
)
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|||||||
Purchased transportation
|
99.3
|
|
|
107.5
|
|
|
(8.2
|
)
|
|
(7.6
|
)
|
|||
Salaries, wages, and employee benefits
|
57.0
|
|
|
61.9
|
|
|
(4.9
|
)
|
|
(7.9
|
)
|
|||
Operating leases
|
14.6
|
|
|
18.3
|
|
|
(3.7
|
)
|
|
(20.2
|
)
|
|||
Depreciation and amortization
|
9.3
|
|
|
9.5
|
|
|
(0.2
|
)
|
|
(2.1
|
)
|
|||
Insurance and claims
|
6.7
|
|
|
6.2
|
|
|
0.5
|
|
|
8.1
|
|
|||
Fuel expense
|
3.0
|
|
|
4.2
|
|
|
(1.2
|
)
|
|
(28.6
|
)
|
|||
Other operating expenses
|
20.7
|
|
|
22.2
|
|
|
(1.5
|
)
|
|
(6.8
|
)
|
|||
Impairment of goodwill, intangibles and other assets
|
42.4
|
|
|
—
|
|
|
42.4
|
|
|
100.0
|
|
|||
Total operating expenses
|
253.0
|
|
|
229.8
|
|
|
23.2
|
|
|
10.1
|
|
|||
Income (loss) from operations:
|
|
|
|
|
|
|
|
|||||||
Expedited LTL
|
24.9
|
|
|
20.8
|
|
|
4.1
|
|
|
19.7
|
|
|||
Truckload Expedited
|
(40.3
|
)
|
|
4.1
|
|
|
(44.4
|
)
|
|
NM
|
|
|||
Pool Distribution
|
(0.4
|
)
|
|
—
|
|
|
(0.4
|
)
|
|
(100.0
|
)
|
|||
Intermodal
|
2.8
|
|
|
3.3
|
|
|
(0.5
|
)
|
|
(15.2
|
)
|
|||
Other operations
|
(1.4
|
)
|
|
(8.3
|
)
|
|
6.9
|
|
|
(83.1
|
)
|
|||
Income (loss) from operations
|
(14.4
|
)
|
|
19.9
|
|
|
(34.3
|
)
|
|
(172.4
|
)
|
|||
Other expense:
|
|
|
|
|
|
|
|
|||||||
Interest expense
|
(0.4
|
)
|
|
(0.6
|
)
|
|
0.2
|
|
|
(33.3
|
)
|
|||
Other, net
|
(0.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|||
Total other expense
|
(0.5
|
)
|
|
(0.7
|
)
|
|
0.2
|
|
|
(28.6
|
)
|
|||
(Loss) income before income taxes
|
(14.9
|
)
|
|
19.2
|
|
|
(34.1
|
)
|
|
(177.6
|
)
|
|||
Income taxes
|
(4.8
|
)
|
|
7.4
|
|
|
(12.2
|
)
|
|
(164.9
|
)
|
|||
Net (loss) income
|
$
|
(10.1
|
)
|
|
$
|
11.8
|
|
|
$
|
(21.9
|
)
|
|
(185.6
|
)%
|
Expedited LTL Segment Information
|
||||||||||||||||||||
(In millions)
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three months ended
|
|||||||||||||||||||
|
June 30,
|
|
Percent of
|
|
June 30,
|
|
Percent of
|
|
|
|
Percent
|
|||||||||
|
2016
|
|
Revenue
|
|
2015
|
|
Revenue
|
|
Change
|
|
Change
|
|||||||||
Operating revenue
|
$
|
144.7
|
|
|
100.0
|
%
|
|
$
|
155.8
|
|
|
100.0
|
%
|
|
$
|
(11.1
|
)
|
|
(7.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Purchased transportation
|
55.8
|
|
|
38.6
|
|
|
66.0
|
|
|
42.4
|
|
|
(10.2
|
)
|
|
(15.5
|
)
|
|||
Salaries, wages and employee benefits
|
33.9
|
|
|
23.4
|
|
|
39.3
|
|
|
25.2
|
|
|
(5.4
|
)
|
|
(13.7
|
)
|
|||
Operating leases
|
8.5
|
|
|
5.9
|
|
|
8.4
|
|
|
5.4
|
|
|
0.1
|
|
|
1.2
|
|
|||
Depreciation and amortization
|
5.3
|
|
|
3.7
|
|
|
5.6
|
|
|
3.6
|
|
|
(0.3
|
)
|
|
(5.4
|
)
|
|||
Insurance and claims
|
3.4
|
|
|
2.3
|
|
|
2.4
|
|
|
1.5
|
|
|
1.0
|
|
|
41.7
|
|
|||
Fuel expense
|
0.8
|
|
|
0.5
|
|
|
1.1
|
|
|
0.7
|
|
|
(0.3
|
)
|
|
(27.3
|
)
|
|||
Other operating expenses
|
12.1
|
|
|
8.4
|
|
|
12.2
|
|
|
7.9
|
|
|
(0.1
|
)
|
|
(0.8
|
)
|
|||
Total operating expenses
|
119.8
|
|
|
82.8
|
|
|
135.0
|
|
|
86.7
|
|
|
(15.2
|
)
|
|
(11.3
|
)
|
|||
Income from operations
|
$
|
24.9
|
|
|
17.2
|
%
|
|
$
|
20.8
|
|
|
13.3
|
%
|
|
$
|
4.1
|
|
|
19.7
|
%
|
Truckload Expedited Services Segment Information
|
||||||||||||||||||||
(In millions)
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three months ended
|
|||||||||||||||||||
|
June 30,
|
|
Percent of
|
|
June 30,
|
|
Percent of
|
|
|
|
Percent
|
|||||||||
|
2016
|
|
Revenue
|
|
2015
|
|
Revenue
|
|
Change
|
|
Change
|
|||||||||
Operating revenue
|
$
|
39.4
|
|
|
100.0
|
%
|
|
$
|
39.4
|
|
|
100.0
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Purchased transportation
|
27.4
|
|
|
69.6
|
|
|
25.3
|
|
|
64.2
|
|
|
2.1
|
|
|
8.3
|
|
|||
Salaries, wages and employee benefits
|
4.5
|
|
|
11.4
|
|
|
4.7
|
|
|
11.9
|
|
|
(0.2
|
)
|
|
(4.3
|
)
|
|||
Operating leases
|
0.1
|
|
|
0.3
|
|
|
0.1
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|||
Depreciation and amortization
|
1.7
|
|
|
4.3
|
|
|
1.5
|
|
|
3.8
|
|
|
0.2
|
|
|
13.3
|
|
|||
Insurance and claims
|
1.0
|
|
|
2.5
|
|
|
0.9
|
|
|
2.3
|
|
|
0.1
|
|
|
11.1
|
|
|||
Fuel expense
|
0.6
|
|
|
1.5
|
|
|
0.9
|
|
|
2.3
|
|
|
(0.3
|
)
|
|
(33.3
|
)
|
|||
Other operating expenses
|
2.0
|
|
|
5.1
|
|
|
1.9
|
|
|
4.8
|
|
|
0.1
|
|
|
5.3
|
|
|||
Impairment of goodwill, intangibles and other assets
|
42.4
|
|
|
107.6
|
|
|
—
|
|
|
—
|
|
|
42.4
|
|
|
100.0
|
|
|||
Total operating expenses
|
79.7
|
|
|
202.3
|
|
|
35.3
|
|
|
89.6
|
|
|
44.4
|
|
|
125.8
|
|
|||
(Loss) income from operations
|
$
|
(40.3
|
)
|
|
(102.3
|
)%
|
|
$
|
4.1
|
|
|
10.4
|
%
|
|
$
|
(44.4
|
)
|
|
(1,082.9
|
)%
|
Intermodal Segment Information
|
||||||||||||||||||||
(In millions)
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three months ended
|
|||||||||||||||||||
|
June 30,
|
|
Percent of
|
|
June 30,
|
|
Percent of
|
|
|
|
Percent
|
|||||||||
|
2016
|
|
Revenue
|
|
2015
|
|
Revenue
|
|
Change
|
|
Change
|
|||||||||
Operating revenue
|
$
|
24.2
|
|
|
100.0
|
%
|
|
$
|
27.5
|
|
|
100.0
|
%
|
|
$
|
(3.3
|
)
|
|
(12.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Purchased transportation
|
8.4
|
|
|
34.7
|
|
|
9.0
|
|
|
32.7
|
|
|
(0.6
|
)
|
|
(6.7
|
)
|
|||
Salaries, wages and employee benefits
|
6.0
|
|
|
24.8
|
|
|
6.2
|
|
|
22.6
|
|
|
(0.2
|
)
|
|
(3.2
|
)
|
|||
Operating leases
|
2.9
|
|
|
12.0
|
|
|
2.9
|
|
|
10.5
|
|
|
—
|
|
|
—
|
|
|||
Depreciation and amortization
|
0.9
|
|
|
3.7
|
|
|
0.9
|
|
|
3.3
|
|
|
—
|
|
|
—
|
|
|||
Insurance and claims
|
0.5
|
|
|
2.0
|
|
|
0.7
|
|
|
2.5
|
|
|
(0.2
|
)
|
|
(28.6
|
)
|
|||
Fuel expense
|
0.6
|
|
|
2.5
|
|
|
0.9
|
|
|
3.3
|
|
|
(0.3
|
)
|
|
(33.3
|
)
|
|||
Other operating expenses
|
2.1
|
|
|
8.7
|
|
|
3.6
|
|
|
13.1
|
|
|
(1.5
|
)
|
|
(41.7
|
)
|
|||
Total operating expenses
|
21.4
|
|
|
88.4
|
|
|
24.2
|
|
|
88.0
|
|
|
(2.8
|
)
|
|
(11.6
|
)
|
|||
Income from operations
|
$
|
2.8
|
|
|
11.6
|
%
|
|
$
|
3.3
|
|
|
12.0
|
%
|
|
$
|
(0.5
|
)
|
|
(15.2
|
)%
|
|
Six months ended June 30
|
|||||||||||||
|
2016
|
|
2015
|
|
Change
|
|
Percent Change
|
|||||||
Operating revenue:
|
|
|
|
|
|
|
|
|||||||
Expedited LTL
|
$
|
279.1
|
|
|
$
|
278.1
|
|
|
$
|
1.0
|
|
|
0.4
|
%
|
Truckload Expedited
|
78.1
|
|
|
73.9
|
|
|
4.2
|
|
|
5.7
|
|
|||
Pool Distribution
|
64.7
|
|
|
54.9
|
|
|
9.8
|
|
|
17.9
|
|
|||
Intermodal
|
48.8
|
|
|
50.5
|
|
|
(1.7
|
)
|
|
(3.4
|
)
|
|||
Eliminations and other operations
|
(2.5
|
)
|
|
(1.8
|
)
|
|
(0.7
|
)
|
|
38.9
|
|
|||
Operating revenue
|
468.2
|
|
|
455.6
|
|
|
12.6
|
|
|
2.8
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|||||||
Purchased transportation
|
195.7
|
|
|
196.8
|
|
|
(1.1
|
)
|
|
(0.6
|
)
|
|||
Salaries, wages, and employee benefits
|
115.7
|
|
|
115.8
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|||
Operating leases
|
28.5
|
|
|
34.0
|
|
|
(5.5
|
)
|
|
(16.2
|
)
|
|||
Depreciation and amortization
|
19.0
|
|
|
18.2
|
|
|
0.8
|
|
|
4.4
|
|
|||
Insurance and claims
|
12.0
|
|
|
11.4
|
|
|
0.6
|
|
|
5.3
|
|
|||
Fuel expense
|
6.0
|
|
|
8.2
|
|
|
(2.2
|
)
|
|
(26.8
|
)
|
|||
Other operating expenses
|
41.8
|
|
|
43.0
|
|
|
(1.2
|
)
|
|
(2.8
|
)
|
|||
Impairment of goodwill, intangibles and other assets
|
42.4
|
|
|
—
|
|
|
42.4
|
|
|
100.0
|
|
|||
Total operating expenses
|
461.1
|
|
|
427.4
|
|
|
33.7
|
|
|
7.9
|
|
|||
Income (loss) from operations:
|
|
|
|
|
|
|
|
|||||||
Expedited LTL
|
42.0
|
|
|
35.7
|
|
|
6.3
|
|
|
17.6
|
|
|||
Truckload Expedited
|
(38.7
|
)
|
|
7.4
|
|
|
(46.1
|
)
|
|
NM
|
|
|||
Pool Distribution
|
(0.3
|
)
|
|
0.2
|
|
|
(0.5
|
)
|
|
(250.0
|
)
|
|||
Intermodal
|
5.1
|
|
|
5.3
|
|
|
(0.2
|
)
|
|
(3.8
|
)
|
|||
Other operations
|
(1.0
|
)
|
|
(20.4
|
)
|
|
19.4
|
|
|
(95.1
|
)
|
|||
Income (loss) from operations
|
7.1
|
|
|
28.2
|
|
|
(21.1
|
)
|
|
(74.8
|
)
|
|||
Other expense:
|
|
|
|
|
|
|
|
|||||||
Interest expense
|
(1.0
|
)
|
|
(0.9
|
)
|
|
(0.1
|
)
|
|
11.1
|
|
|||
Other, net
|
(0.2
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|||
Total other expense
|
(1.2
|
)
|
|
(1.1
|
)
|
|
(0.1
|
)
|
|
9.1
|
|
|||
(Loss) income before income taxes
|
5.9
|
|
|
27.1
|
|
|
(21.2
|
)
|
|
(78.2
|
)
|
|||
Income taxes
|
2.9
|
|
|
10.4
|
|
|
(7.5
|
)
|
|
(72.1
|
)
|
|||
Net (loss) income
|
$
|
3.0
|
|
|
$
|
16.7
|
|
|
$
|
(13.7
|
)
|
|
(82.0
|
)%
|
Expedited LTL Segment Information
|
||||||||||||||||||||
(In millions)
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Six months ended
|
|||||||||||||||||||
|
June 30,
|
|
Percent of
|
|
June 30,
|
|
Percent of
|
|
|
|
Percent
|
|||||||||
|
2016
|
|
Revenue
|
|
2015
|
|
Revenue
|
|
Change
|
|
Change
|
|||||||||
Operating revenue
|
$
|
279.1
|
|
|
100.0
|
%
|
|
$
|
278.1
|
|
|
100.0
|
%
|
|
$
|
1.0
|
|
|
0.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Purchased transportation
|
109.2
|
|
|
39.1
|
|
|
118.9
|
|
|
42.8
|
|
|
(9.7
|
)
|
|
(8.2
|
)
|
|||
Salaries, wages and employee benefits
|
68.8
|
|
|
24.7
|
|
|
69.6
|
|
|
25.0
|
|
|
(0.8
|
)
|
|
(1.1
|
)
|
|||
Operating leases
|
16.5
|
|
|
5.9
|
|
|
14.3
|
|
|
5.1
|
|
|
2.2
|
|
|
15.4
|
|
|||
Depreciation and amortization
|
10.8
|
|
|
3.9
|
|
|
10.3
|
|
|
3.7
|
|
|
0.5
|
|
|
4.9
|
|
|||
Insurance and claims
|
6.2
|
|
|
2.2
|
|
|
5.2
|
|
|
1.9
|
|
|
1.0
|
|
|
19.2
|
|
|||
Fuel expense
|
1.5
|
|
|
0.6
|
|
|
2.1
|
|
|
0.8
|
|
|
(0.6
|
)
|
|
(28.6
|
)
|
|||
Other operating expenses
|
24.1
|
|
|
8.6
|
|
|
22.0
|
|
|
7.9
|
|
|
2.1
|
|
|
9.5
|
|
|||
Total operating expenses
|
237.1
|
|
|
85.0
|
|
|
242.4
|
|
|
87.2
|
|
|
(5.3
|
)
|
|
(2.2
|
)
|
|||
Income from operations
|
$
|
42.0
|
|
|
15.0
|
%
|
|
$
|
35.7
|
|
|
12.8
|
%
|
|
$
|
6.3
|
|
|
17.6
|
%
|
Truckload Expedited Services Segment Information
|
||||||||||||||||||||
(In millions)
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Six months ended
|
|||||||||||||||||||
|
June 30,
|
|
Percent of
|
|
June 30,
|
|
Percent of
|
|
|
|
Percent
|
|||||||||
|
2016
|
|
Revenue
|
|
2015
|
|
Revenue
|
|
Change
|
|
Change
|
|||||||||
Operating revenue
|
$
|
78.1
|
|
|
100.0
|
%
|
|
$
|
73.9
|
|
|
100.0
|
%
|
|
$
|
4.2
|
|
|
5.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Purchased transportation
|
53.9
|
|
|
69.0
|
|
|
47.9
|
|
|
64.8
|
|
|
6.0
|
|
|
12.5
|
|
|||
Salaries, wages and employee benefits
|
9.5
|
|
|
12.2
|
|
|
9.1
|
|
|
12.3
|
|
|
0.4
|
|
|
4.4
|
|
|||
Operating leases
|
0.2
|
|
|
0.3
|
|
|
0.2
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|||
Depreciation and amortization
|
3.5
|
|
|
4.5
|
|
|
2.9
|
|
|
3.9
|
|
|
0.6
|
|
|
20.7
|
|
|||
Insurance and claims
|
1.9
|
|
|
2.4
|
|
|
1.4
|
|
|
1.9
|
|
|
0.5
|
|
|
35.7
|
|
|||
Fuel expense
|
1.2
|
|
|
1.5
|
|
|
1.8
|
|
|
2.5
|
|
|
(0.6
|
)
|
|
(33.3
|
)
|
|||
Other operating expenses
|
4.2
|
|
|
5.4
|
|
|
3.2
|
|
|
4.3
|
|
|
1.0
|
|
|
31.3
|
|
|||
Impairment of goodwill, intangibles and other assets
|
42.4
|
|
|
54.3
|
|
|
—
|
|
|
—
|
|
|
42.4
|
|
|
100.0
|
|
|||
Total operating expenses
|
116.8
|
|
|
149.6
|
|
|
66.5
|
|
|
90.0
|
|
|
50.3
|
|
|
75.6
|
|
|||
(Loss) income from operations
|
$
|
(38.7
|
)
|
|
(49.6
|
)%
|
|
$
|
7.4
|
|
|
10.0
|
%
|
|
$
|
(46.1
|
)
|
|
(623.0
|
)%
|
Pool Distribution Segment Information
|
||||||||||||||||||||
(In millions)
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Six months ended
|
|||||||||||||||||||
|
June 30,
|
|
Percent of
|
|
June 30,
|
|
Percent of
|
|
|
|
Percent
|
|||||||||
|
2016
|
|
Revenue
|
|
2015
|
|
Revenue
|
|
Change
|
|
Change
|
|||||||||
Operating revenue
|
$
|
64.7
|
|
|
100.0
|
%
|
|
$
|
54.9
|
|
|
100.0
|
%
|
|
$
|
9.8
|
|
|
17.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Purchased transportation
|
17.5
|
|
|
27.0
|
|
|
15.0
|
|
|
27.3
|
|
|
2.5
|
|
|
16.7
|
|
|||
Salaries, wages and employee benefits
|
24.7
|
|
|
38.2
|
|
|
20.7
|
|
|
37.7
|
|
|
4.0
|
|
|
19.3
|
|
|||
Operating leases
|
5.9
|
|
|
9.1
|
|
|
4.2
|
|
|
7.6
|
|
|
1.7
|
|
|
40.5
|
|
|||
Depreciation and amortization
|
3.0
|
|
|
4.7
|
|
|
3.0
|
|
|
5.5
|
|
|
—
|
|
|
—
|
|
|||
Insurance and claims
|
2.1
|
|
|
3.2
|
|
|
1.8
|
|
|
3.3
|
|
|
0.3
|
|
|
16.7
|
|
|||
Fuel expense
|
2.1
|
|
|
3.3
|
|
|
2.6
|
|
|
4.7
|
|
|
(0.5
|
)
|
|
(19.2
|
)
|
|||
Other operating expenses
|
9.7
|
|
|
15.0
|
|
|
7.4
|
|
|
13.5
|
|
|
2.3
|
|
|
31.1
|
|
|||
Total operating expenses
|
65.0
|
|
|
100.5
|
|
|
54.7
|
|
|
99.6
|
|
|
10.3
|
|
|
18.8
|
|
|||
(Loss) income from operations
|
$
|
(0.3
|
)
|
|
(0.5
|
)%
|
|
$
|
0.2
|
|
|
0.4
|
%
|
|
$
|
(0.5
|
)
|
|
(250.0
|
)%
|
Intermodal Segment Information
|
||||||||||||||||||||
(In millions)
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Six months ended
|
|||||||||||||||||||
|
June 30,
|
|
Percent of
|
|
June 30,
|
|
Percent of
|
|
|
|
Percent
|
|||||||||
|
2016
|
|
Revenue
|
|
2015
|
|
Revenue
|
|
Change
|
|
Change
|
|||||||||
Operating revenue
|
$
|
48.8
|
|
|
100.0
|
%
|
|
$
|
50.5
|
|
|
100.0
|
%
|
|
$
|
(1.7
|
)
|
|
(3.4
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Purchased transportation
|
16.8
|
|
|
34.4
|
|
|
16.0
|
|
|
31.7
|
|
|
0.8
|
|
|
5.0
|
|
|||
Salaries, wages and employee benefits
|
12.0
|
|
|
24.6
|
|
|
12.1
|
|
|
24.0
|
|
|
(0.1
|
)
|
|
(0.8
|
)
|
|||
Operating leases
|
6.0
|
|
|
12.3
|
|
|
5.4
|
|
|
10.7
|
|
|
0.6
|
|
|
11.1
|
|
|||
Depreciation and amortization
|
1.8
|
|
|
3.7
|
|
|
1.9
|
|
|
3.8
|
|
|
(0.1
|
)
|
|
(5.3
|
)
|
|||
Insurance and claims
|
1.4
|
|
|
2.9
|
|
|
1.3
|
|
|
2.5
|
|
|
0.1
|
|
|
7.7
|
|
|||
Fuel expense
|
1.1
|
|
|
2.2
|
|
|
1.8
|
|
|
3.5
|
|
|
(0.7
|
)
|
|
(38.9
|
)
|
|||
Other operating expenses
|
4.6
|
|
|
9.4
|
|
|
6.7
|
|
|
13.3
|
|
|
(2.1
|
)
|
|
(31.3
|
)
|
|||
Total operating expenses
|
43.7
|
|
|
89.5
|
|
|
45.2
|
|
|
89.5
|
|
|
(1.5
|
)
|
|
(3.3
|
)
|
|||
Income from operations
|
$
|
5.1
|
|
|
10.5
|
%
|
|
$
|
5.3
|
|
|
10.5
|
%
|
|
$
|
(0.2
|
)
|
|
(3.8
|
)%
|
|
LTL
|
|
Pool Distribution
|
|
TQI
|
|||
Discount rate
|
12.5
|
%
|
|
17.0
|
%
|
|
14.5
|
%
|
Long-term growth rate
|
5.0
|
%
|
|
5.0
|
%
|
|
4.0
|
%
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 4.
|
Controls and Procedures.
|
Item 1A.
|
Risk Factors.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds.
|
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Program
|
|
Maximum Number of Shares that May Yet Be Purchased Under the Program
|
|||||
April 1-30, 2016
|
|
221,441
|
|
|
$
|
45
|
|
|
221,441
|
|
|
241,232
|
|
May 1-31, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
June 1-30, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
|
221,441
|
|
|
$
|
45
|
|
|
221,441
|
|
|
241,232
|
|
Item 3.
|
Defaults Upon Senior Securities.
|
Item 4.
|
Mine Safety Disclosures.
|
Item 5.
|
Other Information.
|
Item 6.
|
Exhibits.
|
No.
|
|
Exhibit
|
3.1
|
|
Restated Charter of the registrant (incorporated herein by reference to Exhibit 3 to the registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 28, 1999 (File No. 0-22490))
|
3.2
|
|
Amended and Restated Bylaws of the registrant (incorporated herein by reference to Exhibit 3-1 to the registrant’s Current Report on Form 8-K filed with the Commission on July 6, 2009 (File No. 0-22490))
|
4.1
|
|
Form of Forward Air Corporation Common Stock Certificate (incorporated herein by reference to Exhibit 4.1 to the registrant’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1998, filed with the Securities and Exchange Commission on November 16, 1998 (File No. 0-22490))
|
10.1
|
|
Michael J. Morris Offer Letter dated as of May 24, 2016 (incorporated herein by reference to Exhibit 10.1 to the registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on May 26, 2016 (File No. 0-22490))
|
10.2
|
|
Form of Employee Restricted Share Agreement under the Registrant’s 2016 Omnibus Incentive Compensation Plan
|
31.1
|
|
Certification of Chief Executive Officer Pursuant to Exchange Act Rule 13a-14(a) (17 CFR 240.13a-14(a))
|
31.2
|
|
Certification of Chief Financial Officer Pursuant to Exchange Act Rule 13a-14(a) (17 CFR 240.13a-14(a))
|
32.1
|
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2
|
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
|
Forward Air Corporation
|
Date: July 27, 2016
|
By:
|
/s/ Michael J. Morris
|
|
|
Michael J. Morris
Chief Financial Officer, Senior Vice President and Treasurer
(Principal Financial Officer)
|
|
By:
|
/s/ Michael P. McLean
|
|
|
Michael P. McLean
Chief Accounting Officer, Vice President and Controller
(Principal Accounting Officer)
|
No.
|
|
Exhibit
|
3.1
|
|
Restated Charter of the registrant (incorporated herein by reference to Exhibit 3 to the registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 28, 1999 (File No. 0-22490))
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3.2
|
|
Amended and Restated Bylaws of the registrant (incorporated herein by reference to Exhibit 3-1 to the registrant’s Current Report on Form 8-K filed with the Commission on July 6, 2009 (File No. 0-22490))
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4.1
|
|
Form of Forward Air Corporation Common Stock Certificate (incorporated herein by reference to Exhibit 4.1 to the registrant’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1998, filed with the Securities and Exchange Commission on November 16, 1998 (File No. 0-22490))
|
10.1
|
|
Michael J. Morris Offer Letter dated as of May 24, 2016 (incorporated herein by reference to Exhibit 10.1 to the registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on May 26, 2016 (File No. 0-22490))
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10.2
|
|
Form of Employee Restricted Share Agreement under the Registrant’s 2016 Omnibus Incentive Compensation Plan
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31.1
|
|
Certification of Chief Executive Officer Pursuant to Exchange Act Rule 13a-14(a) (17 CFR 240.13a-14(a))
|
31.2
|
|
Certification of Chief Financial Officer Pursuant to Exchange Act Rule 13a-14(a) (17 CFR 240.13a-14(a))
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32.1
|
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2
|
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
Participant:
|
_________________________
|
Employee ID:
|
|
Grant Date:
|
________________
|
Grant No.:
|
|
Number of Award Shares:
|
[_______________],
subject to adjustment as provided by the Plan.
|
||
Vesting Schedule:
|
All of the Award Shares are nonvested and forfeitable as of the Grant Date. So long as your Service with the Company is continuous from the Grant Date through the applicable date upon which vesting is scheduled to occur, one‑third (1/3
rd
) of the Award Shares will vest and become nonforfeitable on each of the following dates: __________, 20__;
__________, 20__;
__________, 20__.
The Award Agreement provides additional details regarding vesting of the Award Shares.
|
||
Recoupment Policy:
|
The Award shall be subject to the terms and conditions of such policy on the recoupment of incentive compensation as shall be adopted by the Company to implement the requirements of Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
|
1.
|
The 83(b) Election is Irrevocable. The 83(b) Election is a voluntary election that is available to you. It is your decision whether to file an 83(b) Election.
|
2.
|
If you choose to make an 83(b) Election, the 83(b) Election Form must be filed with the Internal Revenue Service within 30 days of the Grant Date; no exceptions to this rule are made.
|
3.
|
If you choose to make an 83(b) Election, you must provide a copy of the 83(b) Election Form to the Corporate Secretary or other designated officer of the Company. This copy should be provided to the Company at the same time that you file your 83(b) Election Form with the Internal Revenue Service.
|
4.
|
In addition to making the filing under Item 2 above, you must attach a copy of your 83(b) Election Form to your tax return for the taxable year that includes the Grant Date.
|
5.
|
If you make an 83(b) Election and later forfeit the Award Shares, you will not be entitled to a refund of the taxes paid with respect to the gross income you recognized under the 83(b) Election.
|
6.
|
You must consult your personal tax advisor before making an 83(b) Election. The attached election forms are intended as samples only, they must be tailored to your circumstances and may not be relied upon without consultation with a personal tax advisor.
|
1
|
I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2016 of Forward Air Corporation;
|
2
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
Date: July 27, 2016
|
|
|
|
|
/s/ Bruce A. Campbell
|
|
|
Bruce A. Campbell
Chairman, President and Chief Executive Officer
|
1
|
I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2016 of Forward Air Corporation;
|
2
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
Date: July 27, 2016
|
|
|
|
|
/s/ Michael J. Morris
|
|
|
Michael J. Morris
Chief Financial Officer, Senior Vice President and Treasurer
|
1
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: July 27, 2016
|
|
|
/s/ Bruce A. Campbell
|
|
Bruce A. Campbell
Chairman, President and Chief Executive Officer
|
1
|
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2
|
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: July 27, 2016
|
|
|
/s/ Michael J. Morris
|
|
Michael J. Morris
Chief Financial Officer, Senior Vice President and Treasurer
|