Forward Air Corp. (NASDAQ:FWRD) Q3 2018 Earnings Conference Call Transcript

Oct 25, 2018 • 09:00 am ET

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Forward Air Corp. (NASDAQ:FWRD) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and thank you for joining Forward Air Corporation's Third Quarter 2018 Earnings Release Conference Call. Before we begin, I'd like to point out that both the press release and webcast presentation for this call are accessible on the IR section of Forward Air's website at www.forwardaircorp.com. With us this morning are CEO, Tom Schmitt; and CFO, Mike Morris. By now, you should have received the press release announcing our third quarter 2018 results, which was furnished to the SEC on Form 8-K and on the wire yesterday after the market close.

(Forward-looking Cautionary Statements)

And now, I'd like to turn the call over to Tom Schmitt, CEO of Forward Air. Please go ahead.

Executive
Thomas Schmitt

Thank you, Lia, and good morning to all of you on the call. My name is Tom Schmitt, I recently became the CEO of Forward Air. And I can tell you, I'm pumped to be here. Since I joined in early September, I've been immersing myself in the culture, the operations of Forward Air, meeting our teams, going across the country, visiting our facilities and learning what makes this great, great company tick. I've been around this industry for 25 years, and I can tell you, I'm incredibly impressed by the capabilities, the commitment of our people and our underlying growth potential. Our core competencies in premium service offerings and our operational excellence position as well for both secular growth in Expedited and other value added segments as well as in new businesses. Forward Air has a lot of runway to go across the increasingly optimized supply chains of both retail e-commerce and the industrial complex.

What are we up to in the next few months? In the upcoming months, our leadership team will be focused on becoming an even larger asset light freight and logistics company. We have a terrific business model and a very, very solid core strategy, and we will be somewhat aspirational in our thinking about ways we can accelerate our growth. We will ask and answer the how high is up question and there's tons of untapped upside. We will review our portfolio to ensure we have the right offerings for the future. We will consider organic and inorganic investments to achieve our objectives with a careful focus on returns; results matter, and we will not confuse efforts with results. And along the way we'll also have some fun as a team of 5,000 plus teammates.

As a continuation of our strategy to grow Intermodal, we are pleased to announce the signing of a definitive agreement to acquire the assets of Southwest Freight Distributors for $16.25 million, that's a good example of our inorganic growth strategy in places where it matters. Southwest is a Dallas, Texas-based premium drayage provider. We expect the transaction will close in a few days, and we anticipate that Southwest will contribute about $20 million of revenue and $3 million of EBITDA on an annualized basis. I truly look forward to