The deferred airfreight transportation services and drayage provider attributed the loss primarily to one-time costs associated with its acquisition of TQI, which accounted for $27.4 million ($0.90 per diluted share) of the second quarter 2016 net loss.
Forward Air Corporation posted a net loss of $10.1 million in the second quarter 2016 compared with a net income of $11.8 million in the same 2015 period, according to the company’s most recent financial statements.
The deferred airfreight transportation services and drayage provider reported a net loss per share of $0.33 for the quarter compared with a net income per diluted share of $0.38 the previous year. Operating revenues for the quarter fell 4.4 percent year-over-year to $238.6 million.
Forward Air attributed the loss primarily to one-time costs associated with its March 2013 acquisition of TQI, which, net of tax effects, accounted for $27.4 million ($0.90 per diluted share) of the second quarter 2016 net loss. The company noted that the one-time non-cash charge has no impact on its business operations, liquidity, credit facilities or compliance with existing debt covenants.
In addition, the company’s board of directors declared a quarterly cash dividend of $0.12 per share of common stock, payable on Sept. 6, 2016 to shareholders of record at the close of business Aug. 22, 2016. The quarterly dividend was in line with previous annual dividends of $0.48 per share, subject to review each quarter depending on financial results, as determined by a cash dividend policy approved by the board of directors.
“Our Expedited LTL group posted an 82.8 operating ratio for the quarter, reflecting better overall linehaul pricing and outstanding operating efficiencies as we realize the benefits of the Towne integration,” Forward Air Chairman, President and CEO Bruce A. Campbell said of the results. “Within our Truckload Expedited business segment, TLX performed well while TQI, without regard to the impairment charge, continues to make slow albeit steady progress. While our Intermodal group was able to adjust to a macro driven decline in revenue and largely maintain its relative profitability, our Pool segment posted a slight net loss addressing its second quarter revenue growth.”
“In spite of a sluggish economic outlook, we feel that we are well positioned going into the second half of the year,” he added. “In the meantime, any incremental pick up in freight volumes should be meaningful to the bottom line.”
Looking forward to the third quarter, Senior Vice President and Chief Financial Officer Michael J. Morris said the company expects year-over-year revenue growth in the range of 1 percent to 5 percent and adjusted income per diluted share between $0.61 and $0.65 per share compared to $0.58 per share in third quarter 2015.
Forward Air posts $10.1m net loss in Q2 2016
