Forward Air Corp. (FWRD, Financial) filed Quarterly Report for the period ended 2012-06-30.
Forward Air Corporation has a market cap of $985.7 million; its shares were traded at around $33.73 with a P/E ratio of 19.2 and P/S ratio of 1.8. The dividend yield of Forward Air Corporation stocks is 0.8%. Forward Air Corporation had an annual average earning growth of 12.4% over the past 10 years. GuruFocus rated Forward Air Corporation the business predictability rank of 2.5-star.
Purchased transportation costs for our airport-to-airport network increased $7.2 million, or 20.2%, to $42.9 million for the three months ended June 30, 2012 from $35.7 million for the three months ended June 30, 2011. For the three months ended June 30, 2012, purchased transportation for our airport-to-airport network increased to 41.8% of airport-to-airport revenue from 39.0% for the same period in 2011. The $7.2 million increase is partially attributable to a 9.2% increase in miles driven by our network of owner-operators or third party transportation providers and a 2.6% increase in the cost per mile paid to our network of owner-operators or third party transportation providers. The increase in miles increased purchased transportation by $2.7 million while the higher cost per mile increased purchased transportation by $0.8 million. Miles driven by our network of owner-operators or third party transportation providers increased in conjunction with the tonnage increase discussed above as well as shifts in business mix. The cost per mile increase was attributable to higher utilization of more costly third party transportation providers as well as higher rates from third party transportation providers. The increased utilization of third party transportations providers was required to accommodate the increased tonnage volumes and shifts in business mix. The remaining increase was attributable to a $3.7 million increase in third party transportation costs associated with the higher Complete shipment volumes discussed above.
Purchased transportation costs for our logistics revenue increased $2.8 million, or 20.9%, to $16.2 million for the three months ended June 30, 2012 from $13.4 million for the three months ended June 30, 2011. For the three months ended June 30, 2012, logistics purchased transportation costs represented 76.8% of logistics revenue compared to 74.4% for the same period in 2011. The increase in logistics purchased transportation was mostly attributable to a $2.9 million, or 24.1%, increase in TLX purchased transportation. Miles driven to support our TLX revenue increased 21.8% while our TLX cost per mile increased approximately 1.9% during the three months ended June 30, 2012 compared to the same period in 2011. The increase in cost per mile was mostly attributable to higher rates from third party transportation providers. The increase in TLX purchased transportation was partially offset by $0.1 million decrease in various other non-mileage based costs, such as drayage services.
Forward Air operating revenue increased $27.2 million, or 12.3%, to $248.9 million from $221.7 million, accounting for 87.2% of consolidated operating revenue for the six months ended June 30, 2012 compared to 87.8% for the same period in 2011. Airport-to-airport revenue, which is the largest component of our consolidated operating revenue, increased $19.6 million, or 11.3%, to $193.4 million from $173.8 million, accounting for 77.7% of the segment s operating revenue during the six months ended June 30, 2012 compared to 78.4% for the same period in 2011. Increased tonnage and an increase in our base revenue per pound, excluding net fuel surcharge revenue and Complete revenue, accounted for $9.9 million of the increase in airport-to-airport revenue. Our airport-to-airport business is priced on a per pound basis and the average revenue per pound, excluding the impact of fuel surcharges and Complete, increased 1.6% for the six months ended June 30, 2012 versus the six months ended June 30, 2011. Tonnage that transited our network increased by 5.4% during the six months ended June 30, 2012 compared with the six months ended June 30, 2011. Average base revenue per pound increased as a result of a general rate increase that we implemented in June 2011. The remaining increase in airport-to-airport revenue is the result of increased net fuel surcharge revenue and revenue from our Complete pick-up and delivery service. Net fuel surcharge revenue increased $1.9 million, or 12.2%, during the six months ended June 30, 2012 as compared to the six months ended June 30, 2011 in response to increased fuel prices and overall business volumes. In addition, Complete revenue increased $7.8 million, or 42.1%, during the six months ended June 30, 2012 compared to the same period of 2011. The increase in Complete revenue is attributable to the overall increase in airport-to-airport shipping volumes as well as higher customer utilization of our Complete service.
Purchased transportation costs for our airport-to-airport network increased $11.5 million, or 16.8%, to $79.8 million for the six months ended June 30, 2012 from $68.3 million for the six months ended June 30, 2011. For the six months ended June 30, 2012, purchased transportation for our airport-to-airport network increased to 41.3% of airport-to-airport revenue from 39.3% for the same period in 2011. The $11.5 million increase is partially attributable to a 8.2% increase in miles driven by our network of owner-operators or third party transportation providers and a 2.3% increase in the cost per mile paid to our network of owner-operators or third party transportation providers. The increase in miles increased purchased transportation by $4.6 million while the higher cost per mile increased purchased transportation by $1.4 million. Miles driven by our network of owner-operators or third party transportation providers increased in conjunction with the tonnage increase discussed above as well as shifts in business mix. The cost per mile increase was attributable to higher utilization of more costly third party transportation providers as well as higher rates from third party transportation providers. The increased utilization of third party transportations providers was required to accommodate the increased tonnage volumes and shifts in business mix. The remaining increase was attributable to a $5.5 million increase in third party transportation costs associated with the higher Complete shipment volumes discussed above.
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Forward Air Corporation has a market cap of $985.7 million; its shares were traded at around $33.73 with a P/E ratio of 19.2 and P/S ratio of 1.8. The dividend yield of Forward Air Corporation stocks is 0.8%. Forward Air Corporation had an annual average earning growth of 12.4% over the past 10 years. GuruFocus rated Forward Air Corporation the business predictability rank of 2.5-star.
Highlight of Business Operations:
Forward Air operating revenue increased $14.0 million, or 12.0%, to $130.5 million from $116.5 million, accounting for 88.0% of consolidated operating revenue for the three months ended June 30, 2012 compared to 88.1% for the same period in 2011. Airport-to-airport revenue, which is the largest component of our consolidated operating revenue, increased $11.0 million, or 12.0%, to $102.6 million from $91.6 million, accounting for 78.6% of the segment s operating revenue during the three months ended June 30, 2012 and 2011. Increased tonnage and an increase in our base revenue per pound, excluding net fuel surcharge revenue and Complete revenue, accounted for $5.5 million of the increase in airport-to-airport revenue. Our airport-to-airport business is priced on a per pound basis and the average revenue per pound, excluding the impact of fuel surcharges and Complete, increased 2.0% for the three months ended June 30, 2012 versus the three months ended June 30, 2011. Tonnage that transited our network increased by 5.4% in the three months ended June 30, 2012 compared with the three months ended June 30, 2011. Average base revenue per pound increased as a result of a general rate increase that we implemented in June 2011. The remaining increase in airport-to-airport revenue is the result of increased net fuel surcharge revenue and revenue from our Complete pick-up and delivery service. Net fuel surcharge revenue increased $0.4 million, or 4.9%, during the three months ended June 30, 2012 as compared to the three months ended June 30, 2011 in response to the increase in overall business volumes. In addition, Complete revenue increased $5.1 million, or 52.2%, during the three months ended June 30, 2012 compared to the same period of 2011. The increase in Complete revenue is attributable to the overall increase in airport-to-airport shipping volumes as well as higher customer utilization of our Complete service.Purchased transportation costs for our airport-to-airport network increased $7.2 million, or 20.2%, to $42.9 million for the three months ended June 30, 2012 from $35.7 million for the three months ended June 30, 2011. For the three months ended June 30, 2012, purchased transportation for our airport-to-airport network increased to 41.8% of airport-to-airport revenue from 39.0% for the same period in 2011. The $7.2 million increase is partially attributable to a 9.2% increase in miles driven by our network of owner-operators or third party transportation providers and a 2.6% increase in the cost per mile paid to our network of owner-operators or third party transportation providers. The increase in miles increased purchased transportation by $2.7 million while the higher cost per mile increased purchased transportation by $0.8 million. Miles driven by our network of owner-operators or third party transportation providers increased in conjunction with the tonnage increase discussed above as well as shifts in business mix. The cost per mile increase was attributable to higher utilization of more costly third party transportation providers as well as higher rates from third party transportation providers. The increased utilization of third party transportations providers was required to accommodate the increased tonnage volumes and shifts in business mix. The remaining increase was attributable to a $3.7 million increase in third party transportation costs associated with the higher Complete shipment volumes discussed above.
Purchased transportation costs for our logistics revenue increased $2.8 million, or 20.9%, to $16.2 million for the three months ended June 30, 2012 from $13.4 million for the three months ended June 30, 2011. For the three months ended June 30, 2012, logistics purchased transportation costs represented 76.8% of logistics revenue compared to 74.4% for the same period in 2011. The increase in logistics purchased transportation was mostly attributable to a $2.9 million, or 24.1%, increase in TLX purchased transportation. Miles driven to support our TLX revenue increased 21.8% while our TLX cost per mile increased approximately 1.9% during the three months ended June 30, 2012 compared to the same period in 2011. The increase in cost per mile was mostly attributable to higher rates from third party transportation providers. The increase in TLX purchased transportation was partially offset by $0.1 million decrease in various other non-mileage based costs, such as drayage services.
Forward Air operating revenue increased $27.2 million, or 12.3%, to $248.9 million from $221.7 million, accounting for 87.2% of consolidated operating revenue for the six months ended June 30, 2012 compared to 87.8% for the same period in 2011. Airport-to-airport revenue, which is the largest component of our consolidated operating revenue, increased $19.6 million, or 11.3%, to $193.4 million from $173.8 million, accounting for 77.7% of the segment s operating revenue during the six months ended June 30, 2012 compared to 78.4% for the same period in 2011. Increased tonnage and an increase in our base revenue per pound, excluding net fuel surcharge revenue and Complete revenue, accounted for $9.9 million of the increase in airport-to-airport revenue. Our airport-to-airport business is priced on a per pound basis and the average revenue per pound, excluding the impact of fuel surcharges and Complete, increased 1.6% for the six months ended June 30, 2012 versus the six months ended June 30, 2011. Tonnage that transited our network increased by 5.4% during the six months ended June 30, 2012 compared with the six months ended June 30, 2011. Average base revenue per pound increased as a result of a general rate increase that we implemented in June 2011. The remaining increase in airport-to-airport revenue is the result of increased net fuel surcharge revenue and revenue from our Complete pick-up and delivery service. Net fuel surcharge revenue increased $1.9 million, or 12.2%, during the six months ended June 30, 2012 as compared to the six months ended June 30, 2011 in response to increased fuel prices and overall business volumes. In addition, Complete revenue increased $7.8 million, or 42.1%, during the six months ended June 30, 2012 compared to the same period of 2011. The increase in Complete revenue is attributable to the overall increase in airport-to-airport shipping volumes as well as higher customer utilization of our Complete service.
Purchased transportation costs for our airport-to-airport network increased $11.5 million, or 16.8%, to $79.8 million for the six months ended June 30, 2012 from $68.3 million for the six months ended June 30, 2011. For the six months ended June 30, 2012, purchased transportation for our airport-to-airport network increased to 41.3% of airport-to-airport revenue from 39.3% for the same period in 2011. The $11.5 million increase is partially attributable to a 8.2% increase in miles driven by our network of owner-operators or third party transportation providers and a 2.3% increase in the cost per mile paid to our network of owner-operators or third party transportation providers. The increase in miles increased purchased transportation by $4.6 million while the higher cost per mile increased purchased transportation by $1.4 million. Miles driven by our network of owner-operators or third party transportation providers increased in conjunction with the tonnage increase discussed above as well as shifts in business mix. The cost per mile increase was attributable to higher utilization of more costly third party transportation providers as well as higher rates from third party transportation providers. The increased utilization of third party transportations providers was required to accommodate the increased tonnage volumes and shifts in business mix. The remaining increase was attributable to a $5.5 million increase in third party transportation costs associated with the higher Complete shipment volumes discussed above.
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