Forward Air announced Monday that it has hired Jamie Pierson as interim chief financial officer effective immediately. Pierson replaces Rebecca Garbrick, who will remain on board during the transition.
Pierson has expertise in restructuring and strategic planning. He served two stints as chief financial officer at less-than-truckload carrier Yellow Corp. (OTC: YELLQ), formerly YRC Worldwide. He oversaw a debt restructuring and an equity raise during his first run with the company from 2011 to 2016. He was also there when it obtained a controversial $700 million COVID-relief loan from the U.S. Treasury in 2020.
Pierson made this statement, according to the House Select Subcommittee on the Coronavirus Crisis, when informing a private creditor that the company was getting the second tranche of a COVID-relief package: “While we had our hand in the cookie jar, we thought we would try to get a little ‘catch-up’ capex [capital expenditures] while we were at it.”
Yellow ultimately ceased operations and filed for bankruptcy last summer.
Pierson was most recently the chief financial officer at privately owned MV Transportation, which specializes in passenger transportation services.
Pierson’s consulting agreement with Forward Air will pay him $78,000 monthly and up to $10,000 in documented expenses per month without prior approval. He’s eligible for a performance bonus of $150,000 and a one-time payment of $250,000 if he’s not selected as the permanent chief financial officer but stays with the company through the transition of his successor.
“We are excited to have Jamie step in to lead, and provide strategic insight, to the finance team during this critical time,” said Forward’s new CEO, Shawn Stewart. “Jamie is a seasoned executive with extensive experience in transportation and logistics, which coupled with his demonstrated track record in several financial leadership positions, make him a valuable addition to the Forward team.”
Stewart took over in late April, succeeding Tom Schmitt, who departed from the company following investor pushback from the merger with Omni Logistics.
Pierson arrives at Forward Air (NASDAQ: FWRD) as the company navigates the integration of Omni Logistics along with the large debt burden (5.5 times debt-to-adjusted earnings before interest, taxes, depreciation and amortization) assumed in the transaction.
Forward recorded a net loss of nearly $89 million in the first quarter including deal-related and other one-off expenses. Excluding the costs, the company still lost $24 million. On the first-quarter call, management said it expects to keep from breaching its second-quarter debt covenant (6 times leverage) but wouldn’t commit to being cash-flow positive in the quarter.
The company will provide a full-year outlook when it reports second-quarter results. It is also looking to divest noncore assets. Pierson will likely help formulate strategy for both initiatives.
Forward has initiated a search for a permanent chief financial officer.
