Forward Air Corporation (FWRD) has reported 45.30 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $12.71 million, or $0.42 a share in the quarter, compared with $23.23 million, or $0.75 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $17.70 million, or $0.58 a share compared with $19 million or $0.61 a share, a year ago. 

Revenue during the quarter grew 3.27 percent to $264.79 million from $256.42 million in the previous year period. Total expenses were 89.34 percent of quarterly revenues, up from 88.68 percent for the same period last year. That has resulted in a contraction of 66 basis points in operating margin to 10.66 percent.

Operating income for the quarter was $28.22 million, compared with $29.02 million in the previous year period.

However, the adjusted operating income for the quarter stood at $28.20 million compared to $30.80 million in the prior year period.

Bruce A. Campbell, chairman, president, and chief executive officer, commenting on the fourth quarter results said, "Our fourth quarter results were slightly ahead of our guidance, which reflected one less operating day in the current year quarter. Our Expedited LTL group continued to improve its linehaul and dock efficiencies despite the seasonally busy fourth quarter. Truckload Premium Services grew its revenue but incurred higher broker utilization as it on-boarded new business. Our Intermodal group performed well amid margin pressure reflecting the integration of Triumph, while our Pool Distribution segment did a great job ramping up its recent new business wins."

For the first-quarter, Forward Air Corporation expects revenue to grow in the range of 4 percent to 8 percent. The company projects diluted earnings per share to be in the range of $0.38 to $0.42.    

The company has spent $52.39 million cash to meet investing activities during the year as against cash outgo of $100.92 million in the last year. It has incurred net capital expenditure of $40.26 million on net basis during the year, up 3.82 percent or $1.48 million from year ago.

The company has spent $102.76 million cash to carry out financing activities during the year as against cash inflow of $7.08 million in the last year period.

Cash and cash equivalents stood at $8.51 million as on Dec. 31, 2016, down 74.45 percent or $24.80 million from $33.31 million on Dec. 31, 2015.

Debt comes down significantly
Forward Air Corporation has recorded a decline in total debt over the last one year. It stood at $28.74 million as on Dec. 31, 2016, down 65.99 percent or $55.77 million from $84.50 million on Dec. 31, 2015. Interest coverage ratio improved to 77.11 for the quarter from 52 for the same period last year.