Forward Air Corporation (FWRD) has reported 8.73 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $14.24 million, or $0.47 a share in the quarter, compared with $13.10 million, or $0.43 a share for the same period last year. Revenue during the quarter grew 7.59 percent to $246.98 million from $229.55 million in the previous year period. Total expenses were 90.61 percent of quarterly revenues, down from 90.68 percent for the same period last year. This has led to an improvement of 6 basis points in operating margin to 9.39 percent.
Operating income for the quarter was $23.19 million, compared with $21.40 million in the previous year period.
Bruce A. Campbell, Chairman, President, and Chief executive officer, commenting on the first quarter results said, "Our first quarter results were ahead of our guidance. Our Expedited LTL group drove strong volume growth towards the end of March and maintained its operating efficiencies to deliver a great quarter. Truckload Premium Services grew its revenue but incurred higher broker utilization as it recruited owner operators to support new business. Our Intermodal group performed well, continuing to benefit from the integration of Triumph while announcing the acquisition of Atlantic. Pool Distribution also had a great quarter driven by its recent new business wins and solid cost controls."
For the second-quarter 2017, Forward Air Corporation projects revenue to grow in the range of 6 percent to 10 percent and its diluted earnings per share to be in the range of $0.55 to $0.59 for the second-quarter.
Operating cash flow falls marginally
Forward Air Corporation has generated cash of $37.06 million from operating activities during the quarter, down 1.02 percent or $ 0.38 million, when compared with the last year period. The company has spent $1.73 million cash to meet investing activities during the quarter as against cash outgo of $4.21 million in the last year period. It has incurred net capital expenditure of $1.86 million on net basis during the quarter, down 26.49 percent or $0.67 million from year ago period.
The company has spent $29.50 million cash to carry out financing activities during the quarter as against cash outgo of $28.50 million in the last year period.
Cash and cash equivalents stood at $14.34 million as on Mar. 31, 2017, down 62.31 percent or $23.70 million from $38.04 million on Mar. 31, 2016.
Working capital increases sharply
Forward Air Corporation has recorded an increase in the working capital over the last year. It stood at $80.72 million as at Mar. 31, 2017, up 64.10 percent or $31.53 million from $49.19 million on Mar. 31, 2016. Current ratio was at 2.38 as on Mar. 31, 2017, up from 1.41 on Mar. 31, 2016.
Days sales outstanding were almost stable at 21 days for the quarter, when compared with the last year period.
Debt comes down significantly
Forward Air Corporation has recorded a decline in total debt over the last one year. It stood at $13.88 million as on Mar. 31, 2017, down 80.33 percent or $56.68 million from $70.56 million on Mar. 31, 2016. Total debt was 2.18 percent of total assets as on Mar. 31, 2017, compared with 10.24 percent on Mar. 31, 2016. Debt to equity ratio was at 0.03 as on Mar. 31, 2017, down from 0.14 as on Mar. 31, 2016. Interest coverage ratio improved to 82.23 for the quarter from 38.71 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
