Monday, surface transportation and logistics service provider Forward Air Corp. (FWRD), reported a swing to loss in the first-quarter, hurt by lower airport-to-airport revenues and impairment charges. The company also issued its second-quarter earnings per share guidance and revenue outlook.
The Greeneville, Tennessee-based company reported a first-quarter net loss of $3.10 million or $0.11 per share, compared to a profit of $10.01 million or $0.35 per share in the corresponding quarter last year. On average, ten analysts polled by Thomson Reuters estimated earnings of $0.05 per share for the quarter. Analysts' estimates typically exclude special items.
Excluding impairment charge, adjusted net income for the quarter was $1.18 million or $0.04 per share in the prior-year similar period.
The company reported a first-quarter impairment of goodwill and other intangible assets charge of $7.16 million compared to none in the comparable period of fiscal 2008.
Forward Air had a first-quarter income tax benefit of $2.09 million compared to income tax provision of $6.50 million in the similar period last year.
Total operating revenue for the quarter declined 10.5% to $96.62 million from $107.94 million in the first-quarter last year. Analysts estimated revenue of $93.53 million for the quarter.
Looking forward, the company expects second quarter earnings to be in the range of $0.06 to $0.12 per share. Analysts currently expect earnings of $0.15 per share for the quarter.
Forward Air also anticipates a year-over-year, quarterly decline in revenue in the range of 11.0% to 16.0%. Revenue estimates of analysts currently are at $110.57 million for the quarter.
Bruce Campbell, Chairman, President, and CEO said, "The unprecedented tonnage decline along with increased downward pressure on our yield driven by lower fuel surcharges as well as a highly competitive pricing environment has created extreme pressure on our airport-to-airport model."
Campbell pointed out that as anticipated, the company's pool distribution business segment was required to record an impairment charge in the quarter. He anticipates Forward Air Solutions segment to be a positive bottom line contributor in the near term.
The company indicated that it ended the quarter with over $31.2 million of cash, a $9.1 million increase from year-end. At March 31, 2009, Forward Air owed $50.0 million on line of credit with $40.3 million of availability.
Forward Air closed Monday's regular trading at $16.55, down $1.50 or 8.31%, on a volume of 312,469 shares on the Nasdaq. In after-hours, the stock gained 7 cents or 0.44% trading at $16.60.
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