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美國
證券交易委員會
華盛頓特區20549
 
表格 10-Q

☒ 根據1934年證券交易法第13或15(d)條款的季度報告。
截止至本季度結束 2024年9月30日
或
☐ 根據1934年證券交易法第13或15(d)條款的過渡報告
委員會檔案號碼。 000-22490
logo.jpg
forward air corporation
（依憑章程所載的完整登記名稱）
田納西州62-1120025
（註冊地或其他註冊司法管轄區）（聯邦稅號）
1915 Snapps Ferry RoadN座大樓Greeneville田納西州37745
(總部辦公地址)（郵政編碼）
 
註冊者的電話號碼，包括區域號碼: (423) 636-7000
 
根據法案第12(b)條規定註冊的證券：
每種類別的名稱交易標的（s）每個註冊交易所的名稱
普通股，每股面值0.01美元FWRD納斯達克股票交易所 LLC

請勾選表示：（1）申報人在過去12個月內（或申報人在此期間需要提交此類報告的較短時間內，已提交了證券交易所法案第13條或第15(d)條規定的所有報告；並 （2）該申報人在過去90天內一直受到申報要求的約束。 
是 x否 ¨

請勾選是否在過去12個月內（或對於要求提交此類文件的較短期間）已遞交並張貼根據S-t法規第405條（本章第232.405條）要求提交的每個互動數據文件。
是 x無 ¨
 
請標註記是否登記者是大型加速遞交者、加速遞交者、非加速遞交者、較小的報告公司或新興成長型公司。請參閱「大型加速遞交者」、「加速遞交者」、「較小的報告公司」和「新興成長型公司」的定義。 “在《交易所法令》第120億2條中查看「大型加速遞交者」、「加速遞交者」、「較小的報告公司」和「新興成長型公司」的定義。
大型加速歸檔人x加速歸檔人¨非加速歸檔人¨小型報告公司☐新興成長型企業☐

如果該企業為新興成長型企業，請在是否選擇不使用證交法第13(a)條所提供之符合任何新的或修訂財務會計標準的延長過渡期的方格中打勾。 o

請在勾選區域指示登記者是否為殼公司（如在《交易所法》第120億2條中所定義）。
是 ¨ 否 x

截至2024年11月1日，申報人名下普通股0.01美元面值的流通股數為 28,954,411.


目錄
forward air corporation
   
  頁面
  數字
第一部分：基本報表 
   
項目 1。基本報表 
   
 
   
项目2。
   
项目3。
   
項目 4。
   
第二部分：其他資訊
   
項目 1。
   
项目2。
   
项目3。
   
項目 4。
第5項。
第6項。
   

2
目錄

參見第一部分以獲取我們的美國GAAP結果的其他詳細信息。財務資訊
  
項目 1。基本報表（未經查核）。
forward air corporation
縮短的合併財務報表
(未經審計，以千元為單位，股票及每股數量除外)
 2024年9月30日2023年12月31日
資產
流動資產:  
現金及現金等價物$136,616 $121,969 
受限現金及受限現金等價物1,540 39,604 
應收賬款，扣除$的損失准備2,782 2024年$2,206 2023年$
361,003 153,267 
其他應收款項1,695 5,408 
預付款項31,174 25,682 
其他流動資產13,053 1,098 
全部流動資產545,081 347,028 
非流動受限現金等價物— 1,790,500 
$281,636 2024年$250,185 2023年$
324,782 258,095 
營運租賃權使用資產355,139 111,552 
商譽716,071 278,706 
其他取得之無形資產，扣除累計攤銷額 $190,369 2024年$127,032 2023年$
1,033,352 134,789 
其他資產81,415 58,863 
資產總額$3,055,840 $2,979,533 
負債和股東權益 
流動負債：  
應付賬款$157,230 $45,430 
應計費用135,590 62,948 
其他流動負債49,571 71,727 
債務及財務租賃條款的流動部分16,741 12,645 
營運租賃負債的流動部分89,566 44,344 
流動負債合計448,698 237,094 
融資租賃負債扣除當期部分32,731 26,736 
長期負債，不含流動部分1,673,292 — 
存托的長期債務— 1,790,500 
營業租賃負債，扣除當前部分275,843 71,598 
應支付的稅務收款協議負債36,797 — 
其他長期負債42,423 47,144 
推延所得稅209,522 42,200 
股東權益:  
優先股，面額$0.01，授權股數為5,000,000股，發行且流通股數為截至2024年6月30日和2023年12月31日之184,668,188股和181,364,180股。0.01 股本額：授權股份 - 5,000,000; 無 2024年和2023年發行或流通的股份
— — 
優先股，B類，$0.01 股本額：授權股份 - 15,000發行並流通的股份 - 11,130 於2024年和 無 2023年$
— — 
0.010.01 股本額：授權股份 - 50,000,000發行並流通的股份 - 28,689,172 於2024年和 25,670,663 2023年$
287 257 
資本公積額額外增資528,255 283,684 
Retained (deficit) earnings(301,634)480,320 
累積其他全面損失(824)— 
福沃運輸股東權益總額226,084 764,261 
非控制權益110,450 — 
股東權益總額336,534 764,261 
總負債及股東權益$3,055,840 $2,979,533 
附註是簡明合併財務報表的一個重要組成部分。
3
目錄

    
forward air corporation
損益表及全面（損失）收益總表
(未經審核，以千為單位，每股金額除外)
 結束於三個月的期間
 2024年9月30日2023年9月30日
營業收入$655,937 $340,976 
營業費用： 
購買交通332,469 148,706 
薪資、工資和員工福利133,516 75,373 
營運租賃48,810 19,536 
折舊與攤提25,893 14,209 
保險和索賠17,382 12,969 
燃料費用4,855 5,845 
其他營業費用55,564 52,649 
商譽減損損失14,751 — 
營業費用總計633,240 329,287 
持續經營業務收入22,697 11,689 
其他收入和支出： 
利息費用，淨額(52,770)(2,655)
匯率期貨（虧損）利潤(2,812)— 
其他收入（費用），淨額(11)— 
其他總費用(55,593)(2,655)
（損失）稅前收入(32,896)9,034 
所得稅（損）益1,302 2,541 
持续经营中的净利潤（虧損）(34,198)6,493 
停止经营的净收益（虧損）（稅后淨額)(1,137)2,795 
淨（虧損）收益(35,335)9,288 
歸屬於非控制權益的凈利潤（損失）38,073 — 
歸屬于福沃運輸的净利潤（虧損）$(73,408)$9,288 
基本每股歸屬于福沃運輸的净利潤（虧損）
繼續營業$(2.62)$0.25 
已停業業項(0.04)0.11 
每股基本股份淨（虧損）收益$(2.66)$0.36 
屬於福沃運輸的每股稀釋淨（虧損）收益
繼續營業$(2.62)$0.25 
已停業業項(0.04)0.11 
每股稀釋淨（虧損）收益$(2.66)$0.36 
每股分紅派息$— $0.24 
淨（虧損）收益$(35,335)$9,288 
其他全面損益:
外匯轉換調整176 — 
綜合(虧損)收益(35,159)9,288 
歸屬於非控制權益的綜合損失38,073 — 
歸屬於福沃運輸的綜合收益
$(73,232)$9,288 


附註：附註是簡明綜合財務報表的重要組成部分
4
目錄

forward air corporation
損益表及全面（損失）收益總表
(未經審核，以千為單位，每股金額除外)
 九個月結束了
 2024年9月30日2023年9月30日
燃料幣銷售額$1,841,416 $1,032,307 
營業費用：
購買交通931,072 435,844 
薪資、工資和員工福利406,382 215,983 
營運租賃133,871 66,505 
折舊與攤提106,321 39,826 
保險和索賠44,961 38,988 
燃料費用15,960 16,733 
其他營業費用234,175 133,218 
商譽減損損失
1,107,465 — 
營業費用總計2,980,207 947,097 
（損失）持續營業收入
(1,138,791)85,210 
其他收入和支出：
利息費用，淨額(140,788)(7,595)
匯率期貨（虧損）利潤(1,912)— 
其他收入（費用），淨額38 — 
其他總費用(142,662)(7,595)
（損失）稅前收入(1,281,453)77,615 
所得稅（損）益(191,990)20,091 
持续经营中的净利潤（虧損）(1,089,463)57,524 
停止经营的净收益（虧損）（稅后淨額)(6,013)8,083 
淨（虧損）收益(1,095,476)65,607 
歸屬於非控制權益的凈利潤（損失）(314,923)— 
歸屬于福沃運輸的净利潤（虧損）$(780,553)$65,607 
基本每股歸屬于福沃運輸的净利潤（虧損）
繼續營業$(28.73)$2.20 
已停業業項(0.22)0.31 
每股基本股份淨（虧損）收益$(28.95)$2.51 
屬於福沃運輸的每股稀釋淨（虧損）收益
持續營運$(28.73)$2.19 
已停業業項(0.22)0.31 
每股稀釋淨（虧損）收益$(28.95)$2.50 
每股分紅派息$— $0.72 
淨（虧損）收益$(1,095,476)$65,607 
其他全面損益:
外匯轉換調整(824)— 
綜合(虧損)收益(1,096,300)65,607 
歸屬於非控制權益的綜合損失(314,923)— 
屬於福沃運輸的綜合（虧損）收益$(781,377)$65,607 

附註是簡明合併財務報表的一個重要組成部分。
5
目錄

forward air corporation
簡明合併現金流量量表
(未經審計，以千為單位)
 九個月結束了
 2024年9月30日2023年9月30日
 
營業活動：
持续经营中的净利潤（虧損）$(1,089,463)$57,524 
調整以協調持續營運業務的淨（虧損）收入與持續營運業務的淨現金（用於）提供的經營活動
折舊與攤提106,321 39,826 
商譽減損損失1,107,465 — 
股份報酬費用8,088 8,570 
營收調整準備2,761 4,026 
推遲所得稅（收益）費用(197,156)2,199 
其他4,296 (1,045)
營運資產和負債的變化，扣除收購企業影響的淨變化：
應收帳款(34,050)20,967 
其他應收款項6,159 — 
其他流動及非流動資產(18,215)3,609 
應付帳款和應計費用58,024 6,444 
持續營運的營業活動產生的營業活動之淨現金（流入）流出(45,770)142,120 
投資活動：
產銷土地及設備款項2,493 3,275 
購買不動產和設備(29,810)(22,080)
購買業務，除現金收購款項外(1,565,242)(56,703)
其他(319)— 
持续经营业务的投资活动产生的净现金流出(1,592,878)(75,508)
融資活動:
償還融資租賃義務(15,339)(6,840)
由信貸額度取得之收益— 45,000 
信貸設施的付款(80,000)(31,125)
發行債務成本支付(60,591)— 
支付應付出的責任(12,247)— 
向股東支付分紅派息— (18,798)
購回和退休股票— (93,811)
員工股票購買計劃下發行的普通股款項355 421 
支付基於股份獎勵計劃的最低稅款扣繳(1,572)(4,315)
來自持有待售子公司的捐款— 15,877 
持續營運中的籌資活動所用的淨現金(169,394)(93,591)
匯率變動對現金的影響138 — 
來自持續營運的現金、現金等價物、受限現金和受限現金等價物的減少(1,807,904)(26,979)
來自已停業業務的現金：
已停業業務的營業活動產生的淨現金（使用）(6,013)17,311 
已停業業務的投資活動中使用的淨現金— (1,338)
已停業業務的籌資活動中使用的淨現金— (15,973)
現金、現金等價物、受限現金和受限現金等價物的凈減少(1,813,917)(26,979)
持續營運期初的現金、現金等價物和受限現金等價物 1,952,073 45,822 
已停業業務期初的現金 — — 
現金、現金等價物、受限現金和受限現金等價物的凈減少(1,813,917)(26,979)
6
目錄

營運期末現金、現金等價物、受限制現金及受限制現金等價物$138,156 $18,843 
forward air corporation
簡明合併現金流量量表
(以千為單位)
九個月結束了
2024年9月30日2023年9月30日
現金、現金等價物、受限制現金及受限制現金等價物調解表:
現金及現金等價物$136,616 $18,843 
受限現金及受限現金等價物1,540 — 
現金及現金等價物總額、受限現金及受限現金等價物在現金流量表中顯示：$138,156 $18,843 
非現金交易：
依照融資租賃獲取的設備$10,976 $18,394 
 附註是簡明合併財務報表的一個重要組成部分。
7
目錄



forward air corporation
簡明合併股東權益陳述
(未經審計，以千為單位)
 普通股優先股 -
B類股份金額		優先股 -
C類股份金額		股本溢價資本額
資本		累積其他綜合損失
保留盈餘（赤字）
非控股權益
股東總計
股權
 股份金額股份金額股份金額
2023年12月31日餘額25,671 $257 — $— — $— $283,684 $— $480,320 $— $764,261 
淨損失— — — — — — — — (61,712)(27,082)(88,794)
外幣兌換價值變動 — — — — — — — (151)— — (151)
股份發行 - 收購700 7 4 — 1 — 223,425 — — 433,449 656,881 
股份報酬費用— — — — — — 1,567 — — — 1,567 
支付股份獎勵最低稅款扣繳(33)— — — — — — — (1,326)— (1,326)
發放以股份為基準的獎勵100 1 — — — — (1)— — — — 
2024年3月31日止結餘26,438 $265 4 $— 1 $— $508,675 $(151)$417,282 $406,367 $1,332,438 
淨損失— — — — — — — — (645,433)(325,914)(971,347)
外匯轉換調整— — — — — — — (849)— — (849)
員工股票購買計劃下發行的普通股21 — — — — — 355 — — — 355 
優先C系列轉換
1,210 12 8 — (1)— (12)— — — — 
股份報酬費用— — — — — — 3,620 — — — 3,620 
股份獎勵的發行30 — — — — — — — — — — 
2024年6月30日餘額27,699 $277 12 $— — $— $512,638 $(1,000)$(228,151)$80,453 364,217 
淨損失— — — — — — — — (73,408)38,073 (35,335)
外幣兌換調整— — — — — — — 176 — — 176 
員工認股計劃下發行的普通股— — — — — — — — — — — 
B系列 - 股份轉換967 10 (1)— — — 8,066 — — (8,076)— 
股份報酬費用— — — — — — 2,901 — — — 2,901 
支付股票獎勵最低稅款代扣(1)— — — — — — — (75)— (75)
稅收應收協議負債
— — — — — — 4,650 — — — 4,650 
發行股票獎勵24 — — — — — — — — — 
2024年9月30日結餘28,689 $287 11 $— — $— $528,255 $(824)$(301,634)$110,450 336,534 



8
目錄

 普通股額外的
實收資本
資本		保留收益
累積盈餘
總計
股東權益
股權
 股份金額
2022年12月31日結餘26,462 $265 $270,855 $436,124 $707,244 
凈利潤— — — 36,368 36,368 
股份報酬費用— — 3,149 — 3,149 
向股東支付分紅派息— — 4 (6,349)(6,345)
對基於股票獎勵的最低稅款扣繳進行支付(40)— — (4,292)(4,292)
購回並養老普通股(474)(5)— (50,486)(50,491)
發行基於股份的獎勵105 1 (1)— — 
2023年3月31日結束餘額26,053 $261 $274,007 $411,365 $685,633 
凈利潤— — — 19,951 19,951 
員工股票購買計劃下發行的普通股4 — 421 — 421 
股份報酬費用— — 3,160 — 3,160 
向股東發放分紅派息— — 5 (6,260)(6,255)
購回並養老普通股(285)(3)— (29,298)(29,301)
發行基於股票的獎勵14 — — — — 
2023年6月30日結餘25,786 $258 $277,593 $395,758 $673,609 
凈利潤— — — 9,288 9,288 
股票期權已行使— — — — — 
員工股票購買計劃下發行的普通股— — — — — 
股份報酬費用— — 3,043 — 3,043 
向股東支付分紅派息— — 4 (6,202)(6,198)
支付基於股票獎勵的最低稅額代扣— — — (23)(23)
普通股票回購和養老(124)(1)— (14,018)(14,019)
發行基於股份為獎勵的股票— — — — — 
截至2023年9月30日的結餘25,662 $257 $280,640 $384,803 $665,700 

附註是簡明合併財務報表的一個重要組成部分。
9
目錄
forward air corporation
基本報表註記
(未經審核，以千為單位，每股數據除外)
2024年9月30日

1.    業務描述及報告基礎

報表根據呈報基礎和合併原則編制。

forward air corporation及其子公司（“福沃運輸”或 the “公司”為一家領先的輕資產貨運與物流公司。該公司有 三 可報告的業務部門：加急貨運，聯運和全方位物流。該公司在北美，南美，歐洲和亞洲進行業務。

加急貨運部門提供加急區域、區域間和國家級的少於整貨車貨運（LTL）和整車服務。”加急貨運還為客戶提供當地提取和交貨，以及其他服務，包括貨物集中和拆分、倉儲、海關券商和其他處理服務。

換位運輸部門提供高價值的揚卸服務，將貨櫃運往和從海港和鐵路枢紐的第一和最后一英里。換位運輸還提供專用合同和貨櫃貨運站（“CFS）服務。”倉儲和裝卸服務。

Omni Logistics部門提供全方位的全球物流服務。服務包括空運和海運貨物整合和轉運、報關、倉儲和配送、時效確定的運輸服務以及其他供應鏈解決方案。

公司的簡明合併基本報表包括forward air corporation及其全資和控股的國內外子公司。合併時已終止企業間帳戶和交易。合併子公司中的非控制權益代表歸屬於公司的子公司的權益（淨資產）的部分，直接或間接地。非控制權益呈現為合併資產負債表中權益的獨立組成部分，而淨損失的呈現呈現可歸屬於控制權益和非控制權益的損失。

於 2023 年第四季，本公司持有權益於 二 歐姆尼紐科有限責任公司（「歐姆尼」）的全資子公司， GN 邦科有限公司和 GN 洛安科有限責任公司 被視為可變利益實體（「VIE」）。 VIE 是股票投資者沒有足夠的風險股權，以便實體獨立為其活動提供資金，或者作為集團，風險中的股權投資持有人缺乏權力透過投票或類似權利來指導實體最大影響其經濟表現的活動，或沒有義務承擔實體的預期損失或獲得實體預期剩餘回報的權利。如果報告實體是 VIE 的主要受益人，則需要合併 VIE。

對這些VIE進行評估，以判斷公司是否為主要受益人。該評估考慮了實體架構的設計和實體被設計創造和轉交的變動性、每方的相對權力，以及公司吸收損失或獲得實體剩餘回報的義務。公司認為，由於公司具有(i)指導最重大影響VIE經濟表現的活動的權力，以及(ii)吸收損失和有權獲得潛在重要收益的義務，應於2023年12月31日合併這些VIE。2024年1月25日（“結束日”），公司根據2023年8月10日生效的合併協議和計劃（“合併協議”）并由2024年1月22日的第1號修正（“修正合併協議”）完成了對Omni（“Omni收購”）的收購。這些VIE作為Omni收購的一部分收購，并于2024年1月25日合併進入公司的合併附屬公司。 請參考附錄4， 收購， 了解有關公司先前持有的VIE的其他披露。

10
目錄
forward air corporation
基本報表註記
(未經審核，以千為單位，每股數據除外)
2024年9月30日
公司的簡明綜合基本報表已按照美國通用會計準則（GAAP）編製，用於中期財務信息，並遵守證券交易委員會（“SEC”）的法規和規則。在管理層的意見中，隨附的未經審計的簡明綜合基本報表反映了所有調整，這些調整是正常反覆性質，必須正確呈現公司在所呈現期間的財務狀況、營業結果和現金流量。這些簡明綜合基本報表應與公司的經審計合併基本報表和附註一起閱讀，這些附註包含在截至2023年12月31日的公司年度報告Form 10-k中。中期期間的結果不一定代表全年結果。

外國貨幣

歸屬於外國業務的外幣金額已經換算為美元。資產和負債以期末匯率換算為美元，而收入和費用項目則按照期間內 prevailing 的平均匯率進行換算。翻譯調整已納入「綜合損益表」中的「累積其他綜合虧損」，並且由外幣交易產生的收益和損失則包含在「綜合損益表」中的損益。

受限現金

截至2024年9月30日，公司持有的限制性現金金額為$1,540 與一封信用證有關，該信用證擔保公司對於保險保障的潛在索賠風險所承擔的義務。

之前公佈的合併基本報表的無形更正

在公司2023財政年度合併基本報表發行後，公司發現在會計標準編碼（"ASC"）835「債務發行成本」的應用和某些應付款的截止處存在錯誤。 關於去年發行的債務 Omni收購，約$8,200 的債務發行成本已支出並未資本化。 改正此錯誤導致一項跨期調整，將其他營業費用減少$8,200，並抵銷$7,400 於2024年9月30日結束的三個月和九個月，將債務發行成本減少（長期債務減少）約$800 ，以及利息費用約$到期於2024年9月30日結束的九個月。此外，截至2024年9月30日的九個月也包括$3,200 為了將於2023年12月31日前已發生但未在2023年12月31日前計入的服務應付款項，而將其他營運費用的非當期調整金額增加。

此外，約有$47,400 的年初至今虧損被分配給非控制權益，該虧損與2024年6月30日止前三個月記錄的商譽減值有關。 一項更正導致非控制權益在2024年9月30日止三個月期間淨收入約為$38,000 。請參閱綜合綜合損益和綜合淨（虧損）收入匯總表。

公司根據ASC 250《會計變動和錯誤更正》的指引評估了上述更正的影響。 公司得出結論認為這些更正對先前發行的基本報表和截至2024年9月30日止三個月的基本報表均不重大。

2.     營收認證

當公司根據合同協議、提單（BOLs）和一般運價條款交貨滿足履行義務時，將確認營業收入。確認的營業收入金額是根據公司預計依照與客戶合約所提供的那些服務，預期將在未來收取的代價來衡量。當公司與客戶簽訂合同協議後即形成合同。在收款能力不確定的情況下，公司不確認營業收入，並延後確認，直到收款可能性確定或收到付款為止。

11
目錄
forward air corporation
基本報表註記
(未經審核，以千為單位，每股數據除外)
2024年9月30日
公司從運送貨物和提供相關服務中獲得營業收入。對於運送貨物的營業收入，按時間記錄，以配合客戶同時收到和消耗運輸服務的益處。因此，針對運輸貨物向客戶開具的營業收入在過渡期間內確認，因為履行對客戶的履行義務已滿足。公司根據提貨日期和交貨日期確定裝運貨物的過渡期間，如果交貨尚未在報告期內發生，則可估計。裝運貨物的過渡期間的確定以及截至特定報告日期完成了多少過渡期間，可能需要公司作出影響確認收益時間的判斷。對於提貨日期在一個報告期內，交貨日期在另一個報告期內的裝運貨物，公司將根據每個報告期內的相對過渡時間確認營業收入。根據在適用報告期結束時完成的總過渡時間的百分比，將在每個報告期基於已完成的過渡時間發生一部分將來要向客戶開具的總營業收入。在交付貨物或相關服務後，根據適用的付款條款向客戶開具帳單。相關服務是一個獨立的履行義務，包括附帶費用，如碼頭處理、貨物存儲、設備租金和海關券商。

營業收入根據業務類別進行分類，因為公司認為這樣最能表達營業收入和現金流的性質、時機和金額。對於所有業務板塊，公司都按照毛基礎記錄營業收入，因為公司在交易中是主要方，公司有權酌情判斷考慮金額的多寡。此外，公司有權選擇司機和其他供應商為客戶提供的服務。這些因素，包括在考慮金額方面的酌情權以及選擇司機和其他供應商，都支持按毛基礎確認的營業收入。

3.    已停業的控制項

根據先前披露，公司於2023年12月決定剥離末端里程業務，並在2023年12月20日完成了出售。因此，末端里程業務的經營結果在2023年9月30日結束的三個和九個月的簡明合併營運報表中以“(虧損)收入，稅後淨額”之標題呈現。支出了$6,013 於2024年9月30日結束的九個月中，涉及此處置的結算支付已經發生。
總結停止運作的財務資訊
2023年9月30日結束的三個月及九個月的繼續營運結果摘要，稅後淨額，在簡明綜合營運報表中歸為已停業營運。

 結束於三個月的期間九個月結束了
 2023年9月30日2023年9月30日
營業收入$72,471 $210,388 
營業費用：
購買交通42,060 121,782 
薪資、工資和員工福利12,786 38,382 
營運租賃3,126 9,589 
折舊與攤提1,297 3,828 
保險和索賠657 1,780 
燃料費用72 242 
其他營業費用8,669 23,782 
營業費用總計68,667 199,385 
停業營業收入稅前3,804 11,003 
所得稅支出1,009 2,920 
停止營業收入淨額，稅後$2,795 $8,083 

12
目錄
forward air corporation
基本報表註記
(未經審核，以千為單位，每股數據除外)
2024年9月30日
4.    併購

加速貨運獲取

在2023年1月，公司收購了Land Air Express, Inc.的某些資產。 （"Land Air"）價格爲$56,567Land Air總部位於肯塔基州的鮑林格林，提供多種少於整車運輸的服務，包括保證、標準、專屬、同日、緊急和提貨與交付，並在美國的超過 25 個服務站運營。收購Land Air預計將加速公司國家服務站的擴展，尤其是在美國中部地區，並戰略性地將公司定位爲更好地滿足客戶當前和未來的需求。此次收購是通過使用運營現金流和公司信用設施的收益來資助的。從收購之日起，Land Air的業績已包含在簡明合併基本報表中。相關的商譽已包含在公司的快速貨物報告可報告部門中。

收購Omni

2024年1月25日，公司根據經修訂的合併協議修訂的合併協議完成了全方位收購。Omni總部位於德克薩斯州達拉斯，是一家輕資產、高接觸度的物流和供應鏈管理公司，在高增長的終端市場擁有客戶關係。Omni爲在國內和國際上運營的美國客戶提供國內和國際貨運代理、配送服務、報關代理、配送和時效性貨運增值服務。根據經修訂的合併協議，通過涉及公司直接和間接子公司的一系列交易（合計，經修訂的合併協議和其中提及的其他交易協議所考慮的其他交易，即 「交易」），公司以 (a) 美元的合併價格收購了Omni100,499 現金（包括收購前的Omni成本約爲美元）80百萬) 和 (b) 14,015 按折算和交換方式計算的公司已發行普通股（「股權對價」）的股份，包括：(i) 1,910 普通股（其中 1,210 是在2024年6月3日舉行的2024年年度股東大會（「轉換批准」）上獲得公司股東批准後，在轉換C系列優先股時發行的；以及 (ii) 12,105 Opco B 類單位（定義見下文）和相應的 B 系列優先股（定義見下文），可兌換成普通股（其中 7,670 單位是在轉換獲得轉換批准後指定爲 「Opco 系列 C-2 優先單位」 的 Opco（定義見下文）的單位進行轉換後發放的。權益對價表示，截至2024年9月30日， 34按全面攤薄和交換後的公司已發行普通股的百分比。

在交易完成之前，公司進行了重組，根據重組，除其他事項外，公司將其所有運營資產貢獻給了新成立的子公司Clue Opco LLC（「Opco」）。Opco被結構爲一個傘形合夥C型公司，通過該公司，現有的Omni的直接及某些間接股權持有者（「Omni持有者」）以Opco指定的「B類單位」（「Opco B類單位」）和對應的B系列優先股單位的形式持有部分股權對價。從交割生效之日起，公司通過Opco運營其業務，Opco間接持有公司的所有資產和業務以及Omni。Opco受一份在交割時生效的修訂和重述的有限責任公司協議（「Opco LLCA」）的管理。

在交易結束時，公司、Opco、Omni持有人和其他某些方簽署了一份稅收應收協議（「稅收應收協議」），該協議規定了各方關於分享公司因交易所產生的某些稅收利益的協議。根據稅收應收協議，公司通常有義務支付給某些Omni持有人 83.5%（a）由於某些實際或視爲分配及根據Opco LLCA未來將Opco的單位兌換爲公司證券（或現金）而導致公司在Opco資產的稅基增加中實現的總稅收利益，（b）某些稅務目的上爲公司實體的某些Omni持有人的預先存在的稅收屬性，（c）公司從某些稅收分配中實現的稅收利益，這些稅收分配對應於需由某些Omni持有人確認的收入或收益項目，以及（d）根據稅收應收協議支付的其他稅收利益。

13
目錄
Forward Air Corporation
附註至簡明綜合財務報表
(未經審計，單位爲千，除每股數據外)
2024年9月30日
截至2023年12月31日，公司合併了GN Bondco, LLC (VIE)和GN Loanco, LLC (VIE)的活動，並在「非流動限制現金等價物」中記錄了票據（定義如下）和新定期貸款（定義如下）的收益，同時在「受託長期債務」中記錄了相應的長期債務。根據合併協議，公司代表GN Bondco, LLC和GN Loanco, LLC將適當的資金存入托管帳戶，以支付截止到閉盤時累積的利息。至2023年12月31日尚未支付的利息，其對應的金額在「限制現金等價物」和「應計費用」中記錄。此外，資金在託管期間，票據和新定期貸款的收益被投資於一種流動的短期工具。截止到2023年12月31日所賺取的利息應收款在「限制現金等價物」和「其他應收款」中記錄。

在交易結束時，保留在託管帳戶中的所有基金類型被釋放，前述的VIE被解散，收益分配給公司以完成交易。有關票據和新定期貸款的討論請見附註6，債務。

Omni收購使公司能夠爲客戶提供差異化的服務產品和擴展的地理覆蓋。此外，這些互補業務的結合使公司能夠爲客戶提供綜合的全球供應鏈解決方案，滿足他們最敏感的物流需求。與初步購買價格相關的商譽代表計劃中的運營協同效應、我們服務的地理覆蓋擴展和戰略市場定位。Omni的結果已被納入自收購日期起的壓縮合並基本報表中。相關的商譽已包含在Omni可報告的分部中，並且 不 預計可用於稅務抵扣。

轉讓的Omni對價

轉讓對價的收購日公允價值來源包括以下內容：
全能
現金$100,499 
稅收應收款協議下的負債13,270 
普通股32,795 
B系列優先股（每股發行對應的Opco B類單位）207,880 
C系列優先股56,713 
Opco C-2優先單位359,493 
消除Omni的債務1,543,003 
初步考慮已轉移$2,313,653 



14
目錄
前進航空公司
簡明合併財務報表附註
（未經審計，以千計，每股數據除外）
2024 年 9 月 30 日
已獲取資產和承擔負債的公允價值

截至收購日期，所獲得的資產和承擔的負債如下表所示：
土地與空氣全能
2023年1月31日2024年1月25日
有形資產：
現金$— $78,260 
應收賬款— 181,570 
物業和設備738 75,292 
其他資產— 35,639 
經營租賃使用權資產— 234,025 
總有形資產738 604,786 
無形資產：
客戶關係35,200 915,400 
不競爭協議— 23,400 
商標和其他— 23,100 
商譽20,629 1,544,830 
無形資產總額55,829 2,506,730 
獲得的總資產56,567 3,111,516 
假設的負債：
流動負債— 156,002 
融資租賃義務— 14,606 
經營租賃負債— 234,025 
其他負債— 643 
遞延所得稅— 392,587 
總負債— 797,863 
獲取的淨資產$56,567 $2,313,653 

所收購資產和承擔負債的估計公允價值，包括轉讓對價，基於公司在收購日期至本次申報日期的最佳估計和假設。作爲全方位收購的一部分，未被公司擁有的Opco的權益估值爲$433,449 在 2024年1月25日 並在簡明合併股東權益報表中披露。公司持續評估此次收購對其簡明合併基本報表的影響。尚未最終確定的收購會計的主要領域包括但不限於以下內容：(1)最終審查和評估所收購的有形和無形資產及負債（包括關鍵假設、輸入和估計）和(2)最終確定所收購的有形和無形資產及所承擔的負債。實際價值可能會有所不同（可能會有重大差異），當最終信息可用且與我們當前的估計不同的時候。我們相信截至目前收集的信息爲估算所收購資產和承擔負債的初步公允價值提供了合理依據。公司預計將在儘可能的情況下儘快最終確定評估，但不遲於收購日期的一年內。

15
目錄
Forward Air Corporation
附註至簡明綜合財務報表
(未經審計，單位爲千，除每股數據外)
2024年9月30日
在截至2024年9月30日的三個月中，公司記錄了衡量期調整，將客戶關係減少了美元147.3百萬，將非競爭協議減少美元19.1百萬，並減少 「商標和其他內容」 美元19.4百萬。由於收購資產的調整後收購日公允價值, 公司錄得增長 $185.8向認可的商譽捐贈百萬美元。計量期調整記錄在截至2024年9月30日的三個月的簡明合併財務報表中，旨在反映截至收購之日存在的事實和情況。該公司最初根據初步估計記錄了收購價格分配，在截至2024年9月30日的三個月中，進行了更新的估值。重新衡量無形資產的影響導致美元減少11.8截至2024年9月30日的三個月和九個月期間的攤銷費用爲百萬美元，在簡明合併運營報表和綜合（虧損）收益的折舊和攤銷中確認。

獲得的資產和承擔的負債的公允價值估算仍在等待多個項目的完成，預計將在財政年度的最後三個月內完成。

爲了 截至2024年9月30日的三個月和九個月, 公司記錄了$(549）和$71,393 與全方位收購相關的交易和整合費用。這些交易和整合費用在合併的財務報表中的「其他營業費用」中記錄。

截至收購日期，獲得的無形資產的初步估計有效使用壽命如下表所示：
預計有效使用年限
土地與空氣全能
客戶關係15 年14 年
不競爭協議—4 年
商標和其他—5 年

補充形式財務信息

下表表示作爲Omni從2023年1月1日起被納入公司合併財務結果的假設財務信息 自2023年1月1日起 (未經審計且以千爲單位):

截至九個月
2024年9月30日2023年9月30日
盈餘預測收入$1,923,416 $2,002,935 
持續運營的按慣例淨損失(1,155,014)(133,216)

該財務信息按假設進行調整，將淨虧損調整爲無形資產的攤銷和與Omni收購相關的資產公允價值調整，假設交易於2023年1月1日完成。
    

16
目錄
Forward Air Corporation
附註至簡明綜合財務報表
(未經審計，單位爲千，除每股數據外)
2024年9月30日
5.    商譽和無形資產

商譽

截至2024年9月30日的九個月期間，商譽賬面金額的變化總結如下：
加急貨運聯運全向物流合併
截至2023年12月31日的餘額$141,720 $136,986 $— $278,706 
收購— — 1,544,830 1,544,830 
資產減值— — (1,107,465)(1,107,465)
截至2024年9月30日的餘額$141,720 $136,986 $437,365 $716,071 

截至2024年9月30日，公司的全方位物流部門累計減值損失爲$1,107,465 公司的累計商譽減值還包括$25,686 與公司在2016年記錄的與卡車裝載服務報告單位相關的減值費用有關。卡車裝載服務報告單位在加急貨運報告可分部門內運營。

公司每年在6月30日對商譽進行減值測試，此外，還會在事件或情況表明報告單位的公允價值可能低於其賬面價值時進行測試。報告單位是一個運營部門或低於一個運營部門的一個層級，例如，組成部分。如果報告單位的公允價值低於其賬面價值，則報告單位的公允價值與賬面價值之間的差額將被確認作爲對報告單位商譽的減值。

公司截至2024年6月30日對所有報告單元進行了年度減值分析。對於加急貨運和多式聯運可報告細分市場的報告單元，我們進行了折現現金流（DCF）分析，這些報告單元的公允價值仍然超過賬面價值。

Omni申報單位的公允價值是使用DCF模型和上市公司指導方法計算的，每種方法的加權相同。在DCF模型下，報告單位的公允價值是估計的未來現金流的現值，基於計量日期的所有已知或已知信息。根據指導性上市公司方法，公允價值基於與申報單位具有相似運營和投資特徵的上市公司得出的市場倍數。DCF和上市公司指導方法的輸入均爲三級估值輸入。主要是由於公司普通股的市值在2024年第二季度下降，這是許多因素造成的，包括但不限於總體市場因素、信用評級下調和高管領導層變動，以及與合併後的企業相關的固有不確定性，Omni Logistics報告部門的公允價值被確定爲低於其賬面價值。因此，公司記錄的非現金減值費用爲美元1,092,714 在截至2024年6月30日的六個月中。由於截至2024年9月30日的三個月的計量期調整，額外增加了一美元14,751 記錄了商譽減值。截至2024年9月30日的九個月的累計商譽減值爲美元1,107,465。商譽減值支出記錄在簡明合併運營報表的商譽減值標題中。

此外，由於在Omni購買價格分配上進行的合格計量期調整尚未最終確定（見註釋4，收購），可能需要對商譽減值進行進一步調整。
17
目錄
Forward Air Corporation
附註至簡明綜合財務報表
(未經審計，單位爲千，除每股數據外)
2024年9月30日

其他無形資產

截至2024年9月30日的九個月內，所取得無形資產的賬面金額變動總結如下：

毛賬面金額
客戶關係1
競業禁止協議交易名稱總計
截至2023年12月31日的餘額$253,914 $6,407 $1,500 $261,821 
收購915,400 23,400 23,100 961,900 
截至2024年9月30日的餘額$1,169,314 $29,807 $24,600 $1,223,721 

累計攤銷
客戶關係1
競業禁止協議交易名稱總計
截至2023年12月31日的餘額$118,993 $6,539 $1,500 $127,032 
攤銷費用55,373 4,884 3,080 63,337 
截至2024年9月30日的餘額$174,366 $11,423 $4,580 $190,369 

1 截至2024年9月30日和2023年12月31日的賬面價值包含 o 百萬，截止到Cloud Light交易日期，其中16,501 的 累計減值。


18
目錄
Forward Air Corporation
附註至簡明綜合財務報表
(未經審計，單位爲千，除每股數據外)
2024年9月30日

6.    負債

截至2024年9月30日和2023年12月31日，長債務由以下部分組成：

2024年9月30日2023年12月31日
定期貸款，到期於2030年 1
$1,045,000 $— 
高級擔保債券，成熟於2031年 1
725,000 — 
債務發行折扣(55,601)— 
債務發行成本 2
(41,107)— 
長期債務總額$1,673,292 $— 
1 截至2023年12月31日，債務工具及相關收益已被合併，但根據與Omni收購的交割相關的託管協議受到限制。
2 債務發行成本爲$9,835 與循環信貸融資相關的費用記錄在其他資產中。

高級擔保票據

爲了融資Omni收購中應支付的現金對價的一部分以及與這項交易相關的費用和開支，GN Bondco, LLC，Omni的全資子公司（「保管發行人」和合並VIE）完成了一項私人發行，總金額爲$725,000 彙總本金金額的 9.5%優先擔保票據，2031年到期（「票據」）的交易，這一交易在 1933年證券法及其修正版本（「證券法」）下豁免註冊。截至2023年12月31日，票據被列入合併資產負債表上保管的長期債務。交易完成後，Opco承擔了保管發行人在票據下的義務。票據的年利率爲 9.5%，每年按半年度支付，支付時間爲每年4月15日和10月15日，從2024年4月15日開始。票據的發行價格爲面值的 98.0%，到期日爲2031年10月15日。票據是根據2023年10月2日保管發行人與美國銀行信託公司（國家協會）之間簽署的信託契約發行的，後者作爲受託人和票據擔保代理。

該債券以高級擔保的形式擔保，總代本金金額超過$100,000在2026年10月15日之前，Opco可以隨時以等於的贖回價格贖回部分或全部債券， 100.000%的本金金額，加上適用的「全額補償」溢價，以及到贖回日前的應計未付利息（如有）。在2026年10月15日或之後，Opco可以按以下價格贖回部分或全部債券（按本金的百分比表示），並且在每種情況下加上到贖回日前的應計未付利息（如有）：（a）在2026年10月15日開始的12個月期間內贖回的價格爲 104.750%；（b）在2027年10月15日開始的12個月期間內贖回的價格爲 102.375%；（c）在2028年10月15日或之後贖回的價格爲 100.000%。此外，在2026年10月15日之前，Opco可以贖回最多 40.000%的債券原始總本金金額，但不超過一項或多項股權融資的淨現金收益的金額，贖回價格等於 109.5%的本金金額，加上到贖回日前的應計未付利息（如有）。在發生「控制權變更」的情況下，Opco將被要求提供回購所有未償還本金金額的債券，購買價格爲 101.000該本金金額的百分比，加上截至回購日期（不包括當天）的應計和未支付利息（如有）。

高級擔保定期貸款設施

爲了爲Omni收購應付的部分現金對價以及與交易有關的成本和費用提供資金，Omni的全資子公司GN Loanco, LLC（「託管貸款借款人」 和合並後的VIE）於2023年12月19日與作爲行政代理人和抵押代理人和初始定期貸款貸款人的北卡羅來納州花旗銀行簽訂了信貸協議（「信貸協議」）。根據信貸協議，託管貸款借款人獲得了優先擔保定期B貸款，本金總額爲美元1,125,000 (「新定期貸款」) 和最多提取美元的能力400,000 根據信貸額度（「循環信貸額度」）。

19
目錄
Forward Air Corporation
附註至簡明綜合財務報表
(未經審計，單位爲千，除每股數據外)
2024年9月30日
新定期貸款的利息基於Opco的選擇，(a) SOFR加上適用的利差或(b) 基礎利率加上適用的利差。基礎利率等於以下最高的數值：(i) 央行利率；(ii) 超過隔夜聯邦資金利率的百分之X；以及(iii) 一個月期SOFR加上百分之Y。 0.50適用的利差對於定期SOFR貸款爲Z% 1.00而基礎利率貸款的適用利差爲A% 4.50新定期貸款需遵循每年B%的常規攤銷。 3.50新定期貸款按面值的C%發行，並將於2030年12月19日到期。 1.00 96.0

否 在Omni收購過程中，使用了循環信用額度下的借款。 循環信用額度將在2029年1月25日到期。根據Opco的選擇，循環信用額度下的貸款利息基於(a) SOFR加適用的利差或(b) 基礎利率加適用的利差。在2024年9月30日結束的財務季度合規證書送達之前，SOFR貸款的適用利差爲 4.25%，基礎利率貸款的適用利差爲 3.25%。之後，適用利差可以在 3.75%至 4.25%的SOFR貸款和來自 2.75%至 3.25% 針對基礎利率貸款，在每種情況下，取決於Opco的第一留置權淨槓桿比率，如信貸協議中所述。在Omni收購完成時，Opco承擔了託管貸款借款人在信貸協議下的義務，這些義務進一步得到了某些擔保人的擔保。Opco在信貸協議下的義務由公司及Opco現有和未來的國內子公司提供高級擔保（受常規例外情況的限制）。

2024年2月12日，Opco及信貸協議各方簽署了信貸協議的修正案第2號（「修正案第2號」），該修正案（a）通過暫時增加財務表現契約中的最大合併首要淨槓桿比率，來修改信貸協議， 4.50：1.00（信貸契約允許的最大合併首要淨槓桿比率爲(i) 6.00：1.00（2024年第二季度和第三季度），(ii) 5.50：1.00（2024年第四季度），(iii) 5.25：1.00（2025年第一季度），(iv) 5.00：1.00（2025年第二季度）和(v) 4.75：1.00（2025年第三季度），並且(b)將信貸協議下的循環信貸承諾從累計本金金額$400,000 減少至累計本金金額$340,000. 如果未滿足財務績效契約，公司將失去對循環信貸額的使用權限。修正案第2號還修訂了信貸協議的某些其他條款。

在修正案第2號生效之前，2024年2月12日，Opco償還了$80,000 根據信貸協議，未償還的新定期貸款的總本金金額，以及所有已累計和未支付的利息。

票據和循環信貸工具中包含約定，其中包括限制公司未經所需貸方批准的能力，從事某些合併、合併、資產出售、分紅派息和股票回購、投資與其他交易，或承擔超過商定閾值的留置權或債務，具體規定在信貸協議中。截至本報告日期，公司遵守上述約定。

20
目錄
Forward Air Corporation
附註至簡明綜合財務報表
(未經審計，單位爲千，除每股數據外)
2024年9月30日
截至 2024年9月30日 公司有 2024財年沒有記錄減值損失。 該循環信貸額度下有未償還借款。

前信貸設施

在2017年9月，公司簽訂了一份 五年 高級無擔保循環信貸額度（「信貸」），其最大累計本金金額爲$150,000，其中信用證的子額度爲$30,000 ，而循環貸款的子額度爲$30,000 。該信貸的到期日爲2022年9月29日。225,000在2020年4月，公司對該信貸進行了首次修訂，將最大累計本金金額增加至$25,000 。該信貸可增加至總本金最高爲$250,000 根據修訂的信貸協議的條款，須徵得貸方同意增加他們的承諾或新增貸方擴展此類承諾。2021年7月，公司與該設施簽署了第二次修訂，將到期日延長至2026年7月20日，並更改了該設施下可用的利率選項。2021年12月，公司與該設施簽署了第三次修訂，將可借貸金額增加至$450,000，包括一條$300,000 的循環信貸額度和一筆$150,000的定期貸款。根據第三次修訂，公司在定期貸款下借入了$150,000 並同時用收到的借款償還了循環信貸額度上的$150,000 。根據第三次修訂，該設施可以增加最多$75,000 ，最高總本金金額爲$525,000 根據修訂的信貸協議的條款，須徵得貸方同意增加他們的承諾或新增貸方擴展此類承諾。這些對設施的增加可以採取額外的循環信貸貸款、定期貸款或其組合的形式，並且以設施下沒有違約事件爲前提。

截至2023年12月31日，公司有 2024財年沒有記錄減值損失。 未償還的借款在該設施下。 否 在交易關閉前，該設施下的借款已被髮放。

信用證

公司與某方達成協議，發行了一封信用證，以保證公司在保險覆蓋範圍內面臨潛在索賠的義務。截至2023年12月31日和2024年9月30日，未償付的信用證總額爲$19,834 和$1,540，分別。在循環信貸設施下，未償付的信用證總額爲$17,688 截至2024年9月30日。

21
目錄
Forward Air Corporation
附註至簡明綜合財務報表
(未經審計，單位爲千，除每股數據外)
2024年9月30日

7.    每股淨（虧損）收入

普通股每股基本淨利潤是通過將淨利潤除以每個期間流通的普通股加權平均數量來計算的。限制性股票擁有不失效的分紅權，因此，在根據雙類方法計算普通股每股淨利潤時，限制性股票被視爲參與性證券。稀釋後每股淨利潤假設已發行期權的行使和業績股票獎勵的歸屬使用庫藏股法進行計算，當這些假設的影響稀釋時。

截至2024年和2023年9月30日的三個月和九個月，歸屬於福沃運輸的淨利潤及加權平均流通普通股的核對情況如下：
 三個月結束截至九個月
2024年9月30日2023年9月30日2024年9月30日2023年9月30日
分子：  
來自持續運營的淨（損失）收入$(72,271)$6,493 $(774,540)$57,524 
來自終止事件的淨（損失）利潤(1,137)2,795 (6,013)8,083 
歸屬於福沃運輸的淨（損失）利潤(73,408)9,288 (780,553)65,607 
來自持續事件的參與證券分配的收入— (40)— (313)
來自終止事件的參與證券分配的收入— (17)— (44)
參與證券分配的收入— (57)— (357)
持續事件基本和稀釋淨（損失）利潤每股的分子$(73,101)$6,453 $(775,347)$57,211 
終止事件基本和稀釋淨利潤每股的分子$(1,137)$2,778 $(6,013)$8,039 
分母：  
基本每股（虧損）淨利潤的分母 - 加權平均流通普通股股數27,941 25,697 26,983 25,995 
稀釋性股票期權和績效股票獎勵— 74 — 101 
稀釋每股（虧損）淨利潤的分母 - 加權平均流通普通股及普通股等效物股數27,941 25,771 26,983 26,096 
歸屬於福沃運輸的每股基本（虧損）淨利潤:
     持續經營$(2.62)$0.25 $(28.73)$2.20 
     終止經營(0.04)0.11 (0.22)0.31 
每股基本（虧損）淨利潤$(2.66)$0.36 $(28.95)$2.51 
歸屬於福沃運輸的稀釋每股（虧損）淨利潤:
繼續事件$(2.62)$0.25 $(28.73)$2.19 
已終止事件(0.04)0.11 (0.22)0.31 
每股攤薄損失淨利潤1
$(2.66)$0.36 $(28.95)$2.50 

1四捨五入可能影響金額的總和。

22
目錄
Forward Air Corporation
附註至簡明綜合財務報表
(未經審計，單位爲千，除每股數據外)
2024年9月30日
在截至2024年9月30日和2023年9月30日的三個月和九個月中，未計算在每股攤薄淨利潤中的股份數量如下，因爲這樣計算會導致股份稀釋效果相反：
三個月結束截至九個月
2024年9月30日2023年9月30日2024年9月30日2023年9月30日
反稀釋期權287 112 287 105 
反稀釋績效股份7 18 13 16 
反稀釋限制性股票和遞延股票單位166 72 166 61 
總反稀釋股票460 202 466 182 

8.    所得稅

公司作爲C公司納稅，並繳納聯邦和州所得稅。該公司唯一的重大稅收資產是Opco，這是一家有限責任公司，出於聯邦以及某些州和地方所得稅的目的作爲合夥企業徵稅。Opco 的淨應納稅所得額和相關稅收抵免（如果有）將轉交給其合作伙伴，幷包含在合作伙伴的納稅申報表中。公司在其簡明合併財務報表中未報告向非控股權持有人徵稅的收益的所得稅負擔。因此，公司的有效稅率與法定稅率存在重大差異。在截至2024年9月30日和2023年9月30日的九個月中，公司錄得的所得稅優惠爲美元191,990 以及 $ 的所得稅支出20,091，分別地。的有效稅率爲 15.0截至2024年9月30日的九個月的百分比與美國法定聯邦所得稅稅率21.0％不同，這主要是由於商譽減值費用、非控股權益（被扣除聯邦福利後的州所得稅和外國稅部分抵消）的稅收影響所致。的有效稅率爲 25.9截至2023年9月30日的九個月中，百分比與美國法定聯邦所得稅稅率21.0％不同，這主要是由於扣除聯邦福利後的州所得稅和不可扣除的高管薪酬的影響，部分被股票獎勵實現的超額稅收優惠所抵消。

公司確認來自不確定稅務立場的所得稅收益，而最終收益的實現是不確定的。截至2024年9月30日和2023年12月31日，公司有 $153 未確認的所得稅收益，所有這些如果被確認都將影響公司的有效稅率。截至2024年9月30日和2023年12月31日，公司已計提與未確認稅收益相關的利息和罰款 $82。除少數例外，公司不再受到稅務機關對2017年前的年度進行美國聯邦、州和地方或加拿大審查的限制。

公司還保持了一個估值備抵，以預留其州淨運營損失結轉的 $395當延期所得稅資產的某部分或全部未能實現的可能性大於50%時，會設立估值備抵。公司評估了其延期所得稅資產能否從預計的未來應稅所得和可用的稅務規劃策略中恢復。在進行此評估時，考慮了所有可用的證據，包括經濟環境以及合理的稅務規劃策略。公司相信，它在未來幾年實現剩餘的淨延期所得稅資產（淨額減去估值備抵）的可能性大於50%。

與Omni收購相關，公司與某些Omni持有人簽訂了稅收應收協議。截至2024年9月30日，公司記錄的稅收應收協議負債約爲$36,797經過考慮後，得出這樣的結論，即根據稅收應收協議期限內未來應稅收入的估計，稅收應收協議的支付是可能的。稅收應收協議負債的確定要求公司在估算交換日期的稅收屬性金額時做出判斷（例如，考慮到合夥企業稅務規則，在假設的資產銷售中公司將獲得的現金和交換時的收益或損失的分配）。根據稅收應收協議應支付的金額還會因多個因素而異，包括有效的稅率，以及Opco未來應稅收入的金額、性質和時間以及與受稅收應收協議約束的稅收屬性相關的遞延稅資產的稅收利益的預期實現，這可能導致對遞延稅資產記錄估值準備。如果被確定的其他應收稅屬性應付，可能在那個時候考慮額外的稅收應收協議負債。
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目錄
Forward Air Corporation
附註至簡明綜合財務報表
(未經審計，單位爲千，除每股數據外)
2024年9月30日

經濟合作與發展組織通過了新的全球最低稅收框架的模型規則，也被稱爲第二支柱，全球某些政府已經頒佈或正在頒佈考慮這些模型規則的立法。在截至2024年9月30日的三個月和九個月內，這些規則對我們的稅收沒有產生重大影響。

經濟合作與發展組織（「OECD」）持續提出各種倡議，包括第二支柱規則，其中包括引入15%的全球最低稅率。歐盟成員國同意實施OECD的第二支柱規則，實施日期爲2024年1月1日和2025年1月1日，對於指令的不同方面，大多數國家已經制定了相關立法。其他一些國家也在實施類似的立法。截止到2024年9月30日，根據我們在2024年1月1日生效的立法國家的業務情況，這些規則對我們的基本報表的影響不重大。隨着其他國家實施類似的立法和進一步的指導發佈，這種情況可能會改變。我們繼續密切關注監管動態，以評估可能的影響。

9.    金融工具的公允價值

公司根據用於評估資產或負債的假設，將其資產和負債分類爲三個級別之一。公平價值金融資產和負債的估計基於一種公平價值層級，該層級優先考慮用於衡量公平價值的估值技術的輸入。可觀察的輸入（最高級別）反映了從獨立來源獲得的市場數據，而不可觀察的輸入（最低級別）反映了內部開發的市場假設。根據此指導，公平價值的測量被分爲以下層級：

•第一級 - 在活躍市場上對相同資產或負債的報價。

•第二級 - 在活躍市場中相似資產或負債的報價；在不活躍市場中相同或相似資產或負債的報價；以及模型衍生的估值，其中所有重要輸入都是可觀察的或可以通過可觀察的市場數據進行驗證，適用於資產或負債的實質完整期限。

•Level 3 - Model-derived valuations in which one or more significant inputs are unobservable.

Assets and liabilities measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023 are summarized below:

As of September 30, 2024
Level 1Level 2Level 3Total
Liabilities under tax receivable agreement$— $— $36,797 $36,797 
As of December 31, 2023
Level 1Level 2Level 3Total
Liabilities under tax receivable agreement$— $— $— $— 

Cash, cash equivalents and restricted cash, accounts receivable, other receivables and accounts payable are valued at their carrying amounts in the Company’s Condensed Consolidated Balance Sheets, due to the immediate or short-term maturity of these financial instruments.

In connection with the Omni acquisition noted in Note 4 and the deal structure, Preferred B shares totaling 966,764 were converted into common stock during the quarter and as a result, Tax Receivable Agreement liability increased to $36.8 million from $13.3 million. See Note 8 for more information on the Tax Receivable Agreement.

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Table of Contents
Forward Air Corporation
Notes to Condensed Consolidated Financial Statements
(unaudited and in thousands, except per share data)
September 30, 2024
As of September 30, 2024, the estimated fair value of the Company’s finance lease obligation, based on current borrowing rates, was $48,097, compared to its carrying value of $49,472. As of December 31, 2023, the estimated fair value of the Company’s finance lease obligation, based on current borrowing rates, was $38,926, compared to its carrying value of $39,381.

The carrying value of the long-term debt approximates fair value based on the borrowing rates currently available for a loan with similar terms and average maturity.

10.    Shareholders’ Equity

Series B Preferred Stock

Pursuant to Articles of Amendment to the Restated Charter of the Company filed with the Secretary of State of the State of Tennessee at the Closing (the “Charter Amendment”), the Company established the terms of a new series of preferred stock of the Company designated as “Series B Preferred Stock” (the “Series B Preferred Stock”), and, at the Closing, certain Omni Holders received fractional units (the “Series B Preferred Units”) each representing one one-thousandth of a share of the Company Series B Preferred Stock. Each Series B Preferred Unit is, together with a corresponding Opco Class B Unit, exchangeable at the option of the holder thereof into one share of the Company’s common stock.

Holders of Series B Preferred Units and holders of the Company’s common stock will vote together as a single class on all matters to be voted on by the Company’s shareholders, subject to limited exceptions. Each holder of record of Series B Preferred Units is entitled to cast one vote for each such unit.

Pursuant to the Charter Amendment, the Series B Preferred Units have a liquidation preference of $0.01 per unit and are not entitled to receive any dividends independent of their corresponding Opco Class B Units. A Series B Preferred Unit and its corresponding Opco Class B Unit may only be transferred together as a single, combined unit.

Stock Repurchase Program

On February 5, 2019, the Board approved a stock repurchase plan authorizing the repurchase of up to 5,000 shares of the Company’s common stock (the “2019 Repurchase Plan”). The 2019 Repurchase Plan expires when the shares authorized for repurchase are exhausted or the 2019 Repurchase Plan is canceled.

During the nine months ended September 30, 2024, the Company did not repurchase any shares of common stock through open market transactions. During the nine months ended September 30, 2023, the Company repurchased through open market transactions 883 shares of common stock for $93,811, or an average of $106.21 per share. All shares received were retired upon receipt, and the excess of the purchase price over the par value per share was recorded to “Retained (Deficit) Earnings” in the Condensed Consolidated Balance Sheets.

As of September 30, 2024, the remaining shares permitted to be repurchased under the 2019 Repurchase Plan were approximately 1,349 shares.

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Table of Contents
Forward Air Corporation
Notes to Condensed Consolidated Financial Statements
(unaudited and in thousands, except per share data)
September 30, 2024

11.    Commitments and Contingencies

Contingencies

On September 26, 2023, Rodney Bell, Michael A. Roberts and Theresa Woods, (collectively, the "Plaintiffs"), three of our shareholders, filed a complaint against us and certain of its directors and officers in the Third District Chancery Court sitting in Greeneville, Tennessee (the "Shareholder Complaint"). The Shareholder Complaint alleges, among other things, that our shareholders have the right to vote on certain transactions contemplated by the Merger Agreement and sought an injunction against the consummation of the transaction until a shareholder vote was held. The court initially granted a temporary restraining order enjoining the transactions contemplated by the Merger Agreement but later dissolved it on October 25, 2023. Thereafter and as described below, on the Closing, the parties to the Amended Merger Agreement completed the Omni Acquisition. On May 2, 2024, Plaintiff Michael Roberts, together with the Cambria County Employees Retirement System filed a stipulation and proposed order seeking leave of court to file an amended class action complaint seeking damages, among other forms of relief. Upon receiving leave of the court, on May 15, 2024, the Plaintiffs filed the amended complaint. Like the earlier complaints, it challenges our determination not to subject the Omni Acquisition to a shareholder vote. We disagree with the allegations of the amended complaint and are in the process of defending the matter.

The Company is party to various legal claims and actions incidental to its business, including claims related to vehicle liability, workers’ compensation, property damage and employee medical benefits. The Company accrues for the uninsured portion of contingent losses from these and other pending claims when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. Based on the knowledge of the facts, the Company believes the resolution of claims and pending litigation, taking into account existing reserves, will not have a material adverse effect on the condensed consolidated financial statements. Moreover, the results of complex legal proceedings are difficult to predict, and the Company’s view of these matters may change in the future as the litigation and related events unfold.

Insurance coverage provides the Company with primary and excess coverage for claims related to vehicle liability, workers’ compensation, property damage and employee medical benefits.
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Table of Contents
Forward Air Corporation
Notes to Condensed Consolidated Financial Statements
(unaudited and in thousands, except per share data)
September 30, 2024
For vehicle liability, the Company retains a portion of the risk. Below is a summary of the Company’s risk retention on vehicle liability insurance coverage maintained by the Company up to $10,000 (in thousands):

Company
Risk Retention		FrequencyLayerPolicy Term
Expedited Freight¹
LTL business$5,000 Occurrence/Accident¹
$0 to $5,000
10/1/2023 to 10/1/2024
Truckload business$5,000 Occurrence/Accident¹
$0 to $5,000
10/1/2023 to 10/1/2024
LTL, Truckload and Intermodal businesses$5,000 Policy Term Aggregate²
$5,000 to $10,000
10/1/2023 to 10/1/2024
Intermodal$1,000 Occurrence/Accident¹
$0 to $1,000
10/1/2023 to 10/1/2024
¹ For each and every accident/incident, the Company is responsible for damages and defense up to these amounts, regardless of the number of claims associated with any accident/incident.
² During the Policy Term, the Company is responsible for damages and defense within the stated Layer up to the stated, aggregate amount of Risk Retention before insurance will continue.

Also, from time to time, when brokering freight, the Company may face claims for the “negligent selection” of outside, contracted carriers that are involved in accidents, and the Company maintains third-party liability insurance coverage with a $100 deductible per occurrence for most of its brokered services. The Company maintains workers’ compensation insurance with a self-insured retention of $500 per occurrence.

Insurance coverage in excess of the self-insured retention limit is an important part of the Company’s risk management process. The Company accrues for the costs of the uninsured portion of pending claims within the self-insured retention based on the nature and severity of individual claims and historical claims development trends. The Company believes the recorded reserves are sufficient for all incurred claims up to the self-insured retention limits, including an estimate for claims incurred but not reported. However, estimating the number and severity of claims, as well as related judgment or settlement amounts is inherently difficult, and the Company may fail to establish sufficient insurance reserves and adequately estimate for future insurance claims. Since the ultimate resolution of outstanding claims as well as claims incurred but not reported is uncertain, it is possible that the reserves recorded for these losses could change materially in the near term. Although, an estimate cannot be made of the range of additional loss that is at least reasonably possible.

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Table of Contents
Forward Air Corporation
Notes to Condensed Consolidated Financial Statements
(unaudited and in thousands, except per share data)
September 30, 2024
12.    Segment Reporting

The Company has three reportable segments: Expedited Freight, Intermodal and Omni Logistics. The Company evaluates segment performance based on income from operations. Segment results include intersegment revenues and shared costs.  Costs related to the corporate headquarters, shared services and shared assets, such as trailers, are allocated to each segment based on usage. Shared assets are not allocated to each segment, but rather the shared assets, such as trailers, are allocated to the Expedited Freight segment. Corporate includes revenues and expenses as well as assets that are not attributable to any of the Company’s reportable segments.

The accounting policies applied to each segment are the same as those described in the Summary of Significant Accounting Policies as disclosed in Note 1 to the Annual Report on Form 10-K for the year ended December 31, 2023, except for certain self-insurance loss reserves related to vehicle liability and workers’ compensation. Each segment is allocated an insurance premium and deductible that corresponds to the self-insured retention limit for that particular segment. Any self-insurance loss exposure beyond the deductible allocated to each segment is recorded in Corporate.

Segment results from operations for the three and nine months ended September 30, 2024 and 2023 are as follows:

 Three Months Ended September 30, 2024
 Expedited FreightIntermodalOmni LogisticsCorporateEliminationsConsolidated
External revenues$264,129 $57,270 $334,538 $— $— $655,937 
Intersegment revenues20,578 142 — — (20,720)— 
Depreciation9,029 2,020 3,346 — — 14,395 
Amortization1,452 2,562 7,484 — — 11,498 
Income (loss) from operations19,269 4,091 1,136 (1,799)— 22,697 
Purchases of property and equipment7,577 79 2,758 — — 10,414 
 Three Months Ended September 30, 2023
 Expedited FreightIntermodalOmni LogisticsCorporateEliminationsConsolidated
External revenues$278,841 $62,135 $— $— $— $340,976 
Intersegment revenues34 48 — — (82)— 
Depreciation8,018 2,626 — — — 10,644 
Amortization1,004 2,561 — — — 3,565 
Income (loss) from operations32,547 4,744 — (25,602)— 11,689 
Purchases of property and equipment5,223 21 — — — 5,244 

Revenue from the individual services within the Expedited Freight segment for the three and nine months ended September 30, 2024 and 2023 are as follows:

 Three Months EndedNine Months Ended
 September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Expedited Freight revenues:  
Network$217,289 $216,977 $655,116 $628,670 
Truckload43,635 38,800 125,368 120,976 
Other23,783 23,098 68,800 68,242 
Total$284,707 $278,875 $849,284 $817,888 

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Table of Contents
Forward Air Corporation
Notes to Condensed Consolidated Financial Statements
(unaudited and in thousands, except per share data)
September 30, 2024


 Nine Months Ended September 30, 2024
 Expedited FreightIntermodalOmni LogisticsCorporateEliminationsConsolidated
External revenues$797,483 $172,701 $871,232 $— $— $1,841,416 
Intersegment revenues51,801 302 — — (52,103)— 
Depreciation27,282 6,234 9,468 — — 42,984 
Amortization4,181 7,687 51,469 — — 63,337 
Income (loss) from operations60,713 12,994 (1,133,323)(79,175)— (1,138,791)
Purchases of property and equipment16,502 1,629 11,679 — — 29,810 
 Nine Months Ended September 30, 2023
 Expedited FreightIntermodalOmni LogisticsCorporateEliminationsConsolidated
External revenues$817,785 $214,522 $— $— $— $1,032,307 
Intersegment revenues103 81 — — (184)— 
Depreciation22,123 7,056 — — — 29,179 
Amortization2,964 7,683 — — — 10,647 
Income (loss) from operations89,295 20,259 — (24,344)— 85,210 
Purchases of property and equipment21,496 584 — — — 22,080 
Total Assets
As of September 30, 2024$674,896 $261,081 $1,971,503 $148,378 $(18)$3,055,840 
As of December 31, 2023661,270 270,421 — 2,047,901 (59)2,979,533 


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Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Overview
 
We are a leading asset-light freight provider of transportation services, including LTL, truckload and intermodal drayage services and freight brokerage and supply chain services across North and South America, Europe, and Asia. We offer premium services that typically require precision execution, such as expedited transit, delivery during tight time windows and special handling. We utilize an asset-light strategy to minimize our investments in equipment and facilities and to reduce our capital expenditures.

Our services are classified into three reportable segments: Expedited Freight, Intermodal and Omni Logistics.

Our Expedited Freight segment provides expedited regional, inter-regional and national LTL services. Expedited Freight also offers customers local pick-up and delivery and other services including truckload, shipment consolidation and deconsolidation, warehousing, customs brokerage and other handling. We plan to grow our LTL geographic footprint through greenfield start-ups as well as through acquisitions.

Our Intermodal segment provides first- and last-mile high value intermodal container drayage services both to and from seaports and railheads. Intermodal also offers dedicated contract and CFS warehouse and handling services, and in select locations, linehaul and LTL services. We plan to grow our Intermodal geographic footprint through acquisitions as well as through greenfield start-ups where no suitable acquisition is available.

Our Omni Logistics segment provides a full suite of global logistics services. Services include air and ocean freight consolidation and forwarding, customs brokerage, warehousing and distribution, time-definite transportation services and other supply chain solutions.

Our operations, particularly our network of hubs and terminals, represent substantial fixed costs. Consequently, our ability to increase our earnings depends in significant part on our ability to increase the amount of freight and the revenue per pound or shipment for the freight shipped or moved through our network. Additionally, our earnings depend on the growth of other services, such as LTL pickup and delivery, which will allow us to maintain revenue growth in a challenging freight environment. We continue to focus on creating synergies across our services, particularly with services offered in our Expedited Freight reportable segment. Synergistic opportunities include the ability to share resources, in particular our fleet resources.

We monitor and analyze a number of key operating statistics in order to manage our business and evaluate our financial and operating performance. These key operating statistics are defined below and are referred to throughout the discussion of the financial results of our Expedited Freight and Intermodal reportable segments. Our key operating statistics should not be interpreted as better measurements of our results than income from operations as determined under GAAP.

Within our Expedited Freight reportable segment, our primary revenue focus is to increase density, which is shipment and tonnage growth within our existing LTL network. Increases in density allow us to maximize our asset utilization and labor productivity, which we measure over many different functional areas of our operations including linehaul load factor and door pounds handled per hour. In addition to our focus on density and operating efficiencies, it is critical for us to obtain an appropriate yield, which is measured as revenue per hundredweight, on the shipments we handle to offset our cost inflation and support our ongoing investments in capacity and technology. Revenue per hundredweight is also a commonly-used indicator for general pricing trends in the LTL industry and can be influenced by many other factors, such as changes in fuel surcharges, weight per shipment and length of haul. Therefore, changes in revenue per hundredweight may not necessarily indicate actual changes in underlying base rates. We regularly monitor the components of our pricing, including base freight rates, accessorial charges and fuel surcharges. The fuel surcharge is generally designed to offset fluctuations in the cost of the petroleum-based products used in our operations and is indexed to diesel fuel prices published by the U.S. Department of Energy. The impact of fuel on our results of operations depends on the relationship between the applicable surcharge, the fuel efficiency of our Company drivers, and the load factor achieved by our operation. Fluctuations in fuel prices in either direction could have a positive or negative impact on our margins, particularly in our LTL business where the weight of a shipment subject to the fuel surcharge on a given trailer can vary materially. We believe our yield management process focused on account level profitability, and ongoing improvements in operating efficiencies, are both key components of our ability to grow profitably.

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The key operating statistics necessary to understand the operating results of our Expedited Freight reportable segment are described below in more detail:

Tonnage - Total weight of shipments in pounds. The level of freight tonnage is affected by economic cycles and conditions, customers’ business cycles, changes in customers’ business practices and capacity in the truckload market.

Weight Per Shipment - Total pounds divided by the number of shipments. Fluctuations in weight per shipment can indicate changes in the mix of freight we receive from our customers, as well as changes in the number of units included in a shipment. Generally, increases in weight per shipment indicate higher demand and overall increased economic activity. Changes in weight per shipment can also be influenced by shifts between LTL and other modes of transportation, such as truckload, in response to capacity, service and pricing issues. Fluctuations in weight per shipment generally have an inverse effect on our revenue per hundredweight, as a decrease in weight per shipment will typically cause an increase in revenue per hundredweight.

Revenue Per Hundredweight - Network revenue per every 100 pounds of shipment weight. Our LTL transportation services are generally priced based on weight, commodity, and distance. Our pricing policies are reflective of the services we provide, and can be influenced by competitive market conditions. Changes in the freight profile factors such as average shipment size, average length of haul, freight density, and customer and geographic mix can impact the revenue per hundredweight. Fuel surcharges and intercompany revenue between Network and Truckload are included in this measurement.

Revenue Per Shipment - Network revenue divided by the number of shipments. Fuel surcharges and intercompany revenue between Network and Truckload are included in this measurement.

Average Length of Haul - Total miles between origin and destination service centers for all shipments, with miles based on the size of shipments. Length of haul is used to analyze our tonnage and pricing trends for shipments with similar characteristics. Changes in length of haul generally have a direct effect on our revenue per hundredweight, as an increase in length of haul will typically cause an increase in revenue per hundredweight.

Within our Intermodal reportable segment, our primary revenue focus is to increase the number of shipments. The key operating statistic necessary to understand the operating results of our Intermodal reportable segment is described below in more detail:

Drayage Revenue Per Shipment - Intermodal revenue divided by the number of drayage shipments. Revenue derived from container freight station warehouse and handling, and linehaul and LTL services is excluded from this measurement. Fuel surcharges and accessorial charges are included in this measurement.

Trends and Developments

Economy

Our business is highly susceptible to changes in economic conditions. Our products and services are directly tied to the production and sale of goods and, more generally, to the global economy. Participants in the transportation industry have historically experienced cyclical fluctuations in financial results due to economic recessions, downturns in the business cycles of customers, volatility in the prices charged by third-party carriers, interest rate fluctuations and other U.S. and global macroeconomic developments. During economic downturns, reductions in overall demand for transportation services will likely reduce demand for our services and exert downward pressure on our rates and margins. In periods of strong economic growth, overall demand may exceed the available supply of transportation resources. While this may present an opportunity to increase economies of scale in our network and enhanced pricing and margins, these benefits may be lessened by increased network congestion and operating inefficiencies.


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Like other providers of freight transportation services, our business has been impacted by the macroeconomic conditions of the past year. International trade is influenced by many factors, including economic and political conditions in the United States and abroad, currency exchange rates, laws and policies relating to tariffs, trade restrictions and foreign investment. Periodically, governments consider a variety of changes to tariffs and impose trade restrictions. We cannot predict the outcome of changes in tariffs, or interpretations, and trade restrictions and the effects they will have on our business. Doing business in foreign locations also subjects us to a variety of risks and considerations not normally encountered by domestic enterprises. In addition to being influenced by governmental policies, our business may also be negatively affected by political developments and changes in government personnel or policies in the United States and other countries, as well as economic turbulence, political unrest and security concerns in the nations and on the trade shipping lanes in which we conduct business and the future impact that these events may have on international trade.

Our ability to provide services to our customers is highly dependent on good working relationships with a variety of entities, including airlines, ocean carrier lines and ground transportation providers. We consider our current working relationships with these entities strong and beneficial to the Company. However, changes in the financial stability and operating capabilities and capacity of asset-based carriers, capacity allotments available from carriers could affect our business in unpredictable ways. When the market experiences seasonal peaks or any sort of disruption, the carriers often increase their pricing suddenly. This carrier behavior creates pricing volatility that could impact our ability to maintain historical profitability.

The global economic and trade environments remain uncertain, including inflation remaining higher than historical levels, greater volatility in oil prices and high interest rates. Starting in the second quarter of 2022 and continuing through most of 2023, we saw a slowdown in the global economy and a softening of customer demand resulting in declines in rates. As demand remains soft, available transportation capacity continues to exceed demand. These conditions have continued to impact our rates negatively in 2024. We also expect that pricing volatility will continue as carriers adapt to lower demand, changing fuel prices, security risks and react to governmental trade policies and other regulations.

Fuel

We depend heavily upon the availability of adequate diesel fuel supplies, and recently, fuel availability and prices have fluctuated significantly. Fuel availability and prices can be impacted by factors beyond our control, such as natural or man made disasters, adverse weather conditions, political events, economic sanctions imposed against oil-producing countries or specific industry participants, disruptions or failure of technology or information systems, price and supply decisions by oil producing countries and cartels, terrorist activities, armed conflict, tariffs, sanctions, other changes to trade agreements and world supply and demand imbalance. Through our fuel surcharge programs, we have been able to mitigate the impact of fluctuations in fuel prices. Our fuel surcharge rates are set weekly based on the national average for fuel prices as published by the U.S. Department of Energy and our fuel surcharge table. In periods of changing fuel prices, our fuel surcharges vary by different degrees and may not fully offset fuel price fluctuations or may result in higher than expected increases in revenue. Fuel shortages, changes in fuel prices, and the potential volatility in fuel surcharge revenue may impact our results of operations and overall profitability. Fuel surcharge revenue as a percentage of operating revenues decreased to 9.2% for the quarter ended September 30, 2024 compared to 19.6% for the quarter ended September 30, 2023 as a result of the inclusion of Omni in the results for the quarter ended September 30, 2024.





32

Recent Events and Factors Affecting Comparability

Omni Acquisition

On January 25, 2024, we completed the Omni Acquisition pursuant to which we acquired Omni for a combination of
(a) $100,499 in cash (which includes pre-acquisition Omni costs of approximately $80 million) (b) 14,015 shares of common stock on an as-converted and as-exchanged basis consisting of: (i) 1,910 shares of common stock (of which 1,210 were issued upon conversion of the Series C Preferred Units upon the Conversion Approval) and (ii) 12,105 Opco Class B Units and corresponding Series B Preferred Units, which are exchangeable into shares of common stock (of which 7,670 units were issued upon conversion of the units of Opco designated as “Opco Series C-2 Preferred Units” upon the Conversion Approval).

See Note 4, Acquisitions, to our Condensed Consolidated Financial Statements for more information about our acquisitions.

Omni Logistics revenues and segment income from January 25, 2024 through September 30, 2024 are included in our condensed consolidated statements of comprehensive (loss) income for the three and nine months ended September 30, 2024. The changes in our results of operations for the three and nine months ended September 30, 2024 as compared to the three and nine months ended September 30, 2023 are primarily driven by the inclusion of the results of operations of Omni Logistics. The following table sets forth the financial data of our Omni Logistics segment for the three and nine months ended September 30, 2024 (unaudited and in thousands):

Three Months Ended
 September 30, 2024Percent of Revenue
Operating revenue$334,538 100.0 %
Operating expenses:
Purchased transportation194,853 58.2 
Salaries, wages and employee benefits55,151 16.5 
Operating leases27,586 8.2 
Depreciation and amortization10,830 3.2 
Insurance and claims3,488 1.0 
Fuel expense800 0.2 
Other operating expenses25,943 7.8 
Impairment of goodwill14,751 4.4 
Total operating expenses333,402 99.7 
Income from operations$1,136 0.3 %
33

Nine Months Ended
 September 30, 2024Percent of Revenue
Operating revenue$871,232 100.0 %
Operating expenses:
Purchased transportation517,951 59.5 
Salaries, wages and employee benefits161,462 18.5 
Operating leases73,464 8.4 
Depreciation and amortization60,937 7.0 
Insurance and claims8,386 1.0 
Fuel expense2,286 0.3 
Other operating expenses72,604 8.3 
Impairment of goodwill1,107,465 127.2 
Total operating expenses2,004,555 230.1 
Loss from operations$(1,133,323)(130.1)%

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Results from Operations

The following table sets forth our consolidated financial data for the three months ended September 30, 2024 and 2023 (unaudited and in thousands):

Three Months Ended
September 30, 2024September 30, 2023ChangePercent Change
Operating revenues:
Expedited Freight$284,707 $278,875 $5,832 2.1 %
Intermodal57,412 62,183 (4,771)(7.7)
Omni Logistics334,538 — 334,538 — 
Eliminations and other operations(20,720)(82)(20,638)NM
Operating revenues655,937 340,976 314,961 92.4 
Operating expenses:
Purchased transportation332,469 148,706 183,763 123.6 
Salaries, wages and employee benefits133,516 75,373 58,143 77.1 
Operating leases48,810 19,536 29,274 149.8 
Depreciation and amortization25,893 14,209 11,684 82.2 
Insurance and claims17,382 12,969 4,413 34.0 
Fuel expense4,855 5,845 (990)(16.9)
Other operating expenses55,564 52,649 2,915 5.5 
Impairment of goodwill14,751 — 14,751 — 
Total operating expenses633,240 329,287 303,953 92.3 
Income (loss) from continuing operations:
Expedited Freight19,269 32,547 (13,278)(40.8)
Intermodal4,091 4,744 (653)(13.8)
Omni Logistics1,136 — 1,136 — 
Other Operations(1,799)(25,602)23,803 (93.0)
Income from continuing operations22,697 11,689 11,008 94.2 
Other income and expenses:
Interest expense, net(52,770)(2,655)(50,115)1,887.6 
Foreign exchange (loss) gain(2,812)— (2,812)— 
Other income (expense), net(11)— (11)— 
Total other expense(55,593)(2,655)(52,938)1,993.9 
(Loss) income before income taxes(32,896)9,034 (41,930)(464.1)
Income tax (benefit) expense1,302 2,541 (1,239)(48.8)
Net (loss) income from continuing operations(34,198)6,493 (40,691)(626.7)
(Loss) income from discontinued operation, net of tax(1,137)2,795 (3,932)(140.7)
Net (loss) income(35,335)9,288 (44,623)(480.4)
Net income (loss) attributable to noncontrolling interest38,073 — 38,073 — 
Net (loss) income attributable to Forward Air$(73,408)$9,288 $(82,696)(890.4)%
NM=Not Meaningful

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Operating Revenues

Operating revenues increased $314,961, or 92.4%, to $655,937 for the three months ended September 30, 2024 compared to $340,976 for the three months ended September 30, 2023. The increase was primarily due to the inclusion of $334,538 from the Omni Logistics segment and an increase in our Expedited Freight segment of $5,832 due to increased Truckload revenue, offset by a decrease from our Intermodal segment of $4,771. The results for our reportable segments are discussed in detail in the following sections.

Operating Expenses
Operating expenses increased $303,953, or 92.3%, to $633,240 for the three months ended September 30, 2024 compared to $329,287 for the three months ended September 30, 2023. The increase was primarily due to the inclusion of the $333,402 of operating expenses from the Omni Logistics segment and a $19,110 increase in operating expenses from the Expedited Freight segment due to margin compression, partially offset by a $4,118 volume driven decrease in operating expenses from the Intermodal segment. Purchased transportation expense, given our asset-light model, is our largest expense which includes our independent contractor fleet owners and owner-operators, who lease their equipment to our motor carriers (“Leased Capacity Providers”), third-party motor carriers and capacity secured by transportation intermediaries, while Company-employed drivers are included in salaries, wages and employee benefits.
Income from Continuing Operations and Segment Operations
Income from operations decreased $11,008, or 94.2%, to a $22,697 loss for the three months ended September 30, 2024 compared to a $11,689 of income for the three months ended September 30, 2023. The decrease was primarily due to a decrease in Omni Logistics segment of $1,136, and Expedited Freight segment of $13,278.

Interest Expense, net

Interest expense, net was $52,770 for the three months ended September 30, 2024 compared to $2,655 for the three months ended September 30, 2023. The increase in interest expense was primarily due to higher borrowings outstanding during the third quarter of 2024 as compared to the same period in 2023 and an increase in the average interest rate. In connection with the Omni Acquisition, the outstanding borrowings remained steady in the third quarter of 2024. The weighted-average interest rate on the outstanding borrowings were 9.56% and 6.62% during the three months ended September 30, 2024 and 2023, respectively.

Income Taxes on a Continuing Basis

The effective tax rate for the three months ended September 30, 2024 was (4.0)% compared to 28.1% for the three months ended September 30, 2023. The effective tax rate varied from the statutory United States federal rate of 21% in the third quarter of 2024 primarily due to the cumulative effect of the noncontrolling interest, and to a lesser extent foreign earnings and state income taxes, net of the federal benefit.

Income from Discontinued Operations, net of Tax

Loss from discontinued operations, net of tax increased $3,932 or 140.7% to net loss of $1,137 for the three months ended September 30, 2024 compared to income of $2,795 for the same period in 2023. The increase was due to the final net working capital settlement following the sale of our Final Mile business in December 2023.
Net (Loss) Income

As a result of the foregoing factors, net income decreased $44,623, to a $35,335 loss for the three months ended September 30, 2024 compared to $9,288 income for the three months ended September 30, 2023.

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Expedited Freight - Three Months Ended September 30, 2024 compared to Three Months Ended September 30, 2023

The following table sets forth the financial data of our Expedited Freight segment for the three months ended September 30, 2024 and 2023 (unaudited and in thousands):

Three Months Ended
 September 30, 2024Percent of RevenueSeptember 30, 2023Percent of RevenueChangePercent Change
Operating revenues:
Network1
$217,289 76.3 %$216,977 77.8 %$312 0.1 %
Truckload43,635 15.3 38,800 13.9 4,835 12.5 
Other23,783 8.4 23,098 8.3 685 3.0 
Total operating revenues284,707 100.0 278,875 100.0 5,832 2.1 
Operating expenses:
Purchased transportation140,035 49.2 129,850 46.6 10,185 7.8 
Salaries, wages and employee benefits59,426 20.9 56,682 20.3 2,744 4.8 
Operating leases15,556 5.5 14,392 5.2 1,164 8.1 
Depreciation and amortization10,481 3.7 9,022 3.2 1,459 16.2 
Insurance and claims11,672 4.1 9,533 3.4 2,139 22.4 
Fuel expense2,113 0.7 2,954 1.1 (841)(28.5)
Other operating expenses26,155 9.1 23,895 8.5 2,260 9.5 
Total operating expenses265,438 93.2 246,328 88.3 19,110 7.8 
Income from operations$19,269 6.8 %$32,547 11.7 %$(13,278)(40.8)%
1 Network revenue is comprised of all revenue, including linehaul, pickup and/or delivery, and fuel surcharge revenue, excluding accessorial and Truckload revenue.



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Expedited Freight Operating Statistics
Three Months Ended
September 30, 2024September 30, 2023Percent Change
Business days64 63 1.6 %
Tonnage1,2
    Total pounds713,212 685,756 4.0 
    Pounds per day11,144 10,885 2.4 
Shipments1,2
    Total shipments831 835 (0.5)
    Shipments per day13.0 13.3 (2.3)
Weight per shipment858 821 4.5 
Revenue per hundredweight3
$30.47 $31.66 (3.8)
Revenue per hundredweight, ex fuel3
$24.09 $24.20 (0.5)
Revenue per shipment3
$261.55 $259.94 0.6 
Revenue per shipment, ex fuel3
$206.73 $198.71 4.0 
1 In thousands
2 Excludes accessorial and Truckload products
3 Includes intercompany revenue between the Network and Truckload revenue streams


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Operating Revenues
Expedited Freight operating revenues increased $5,832, or 2.1%, to $284,707 for the three months ended September 30, 2024 from $278,875 for the three months ended September 30, 2023. The increase was primarily due to increased Truckload revenue. Truckload revenue increased $4,835, primarily due to increased customer demand for our services as compared to the same period in 2023. Network revenue increased due to a 4.0% increase in pounds per day, offset by a 0.5% decrease in revenue per hundredweight excluding fuel as compared to the same period in 2023. The increase in tonnage reflects an increase in weight per shipment of 4.5% on 0.5% less shipments per day. The increase in weight per shipment was the result of more dense freight in our network driven by a change in the mix of freight in our network. Fuel surcharge revenue decreased $5,499, or 9.4% as a result of the higher tonnage in our Network as compared to the same period in 2023.
Purchased Transportation
Expedited Freight purchased transportation increased $10,185, or 7.8%, to $140,035 for the three months ended September 30, 2024 from $129,850 for the three months ended September 30, 2023. Purchased transportation was 49.2% of Expedited Freight operating revenues for the three months ended September 30, 2024 compared to 46.6% for the same period in 2023. Expedited Freight purchased transportation includes Leased Capacity Providers and third-party motor carriers and transportation intermediaries, while Company-employed drivers are included in salaries, wages and employee benefits. The increase in purchased transportation was primarily due to higher volumes in Network, and the change in the mix of freight capacity purchased from Leased Capacity Providers, third-party motor carriers and transportation intermediaries and Company-employed drivers for Truckload services. For the three months ended September 30, 2024, 63.5%, 33.1% and 3.4% of our freight capacity was purchased from Leased Capacity Providers, third-party motor carriers and transportation intermediaries and Company-employed drivers, respectively, for Network and Truckload. This compares to 62.4%, 32.5% and 5.1%, respectively, in the same period in 2023.
Salaries, Wages and Employee Benefits
Expedited Freight salaries, wages and employee benefits increased $2,744, or 4.8%, to $59,426 for the three months ended September 30, 2024 from $56,682 for the three months ended September 30, 2023. Salaries, wages and employee benefits were 20.9% of Expedited Freight operating revenues for the three months ended September 30, 2024 compared to 20.3% for the same period in 2023. The increase in salaries, wages and employee benefits expense was primarily due to higher salaries and wages as compared to the same period in 2023.
Operating Leases
Expedited Freight operating leases increased $1,164, or 8.1%, to $15,556 for the three months ended September 30, 2024 from $14,392 for the three months ended September 30, 2023.  Operating leases were 5.5% of Expedited Freight operating revenues for the three months ended September 30, 2024 compared to 5.2% for the same period in 2023. The increase in operating lease expense was primarily due to higher leasing costs associated lease renewals in the third quarter of 2024 as compared to the same period in 2023.
Depreciation and Amortization
Expedited Freight depreciation and amortization increased $1,459, or 16.2%, to $10,481 for the three months ended September 30, 2024 from $9,022 for the three months ended September 30, 2023. Depreciation and amortization was 3.7% of Expedited Freight operating revenues for the three months ended September 30, 2024 compared to 3.2% for the same period in 2023. The increase in depreciation and amortization expense was primarily as the result of purchasing and placing in service new equipment in the second half of 2023 and first half of 2024.
Insurance and Claims
Expedited Freight insurance and claims increased $2,139, or 22.4%, to $11,672 for the three months ended September 30, 2024 from $9,533 for the three months ended September 30, 2023.  Insurance and claims was 4.1% of Expedited Freight operating revenues for the three months ended September 30, 2024 compared to 3.4% for the same period in 2023. The increase in insurance and claims expense was primarily due to higher vehicle liability claims in the third quarter of 2024 as compared to the same period in 2023.
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Fuel Expense

Expedited Freight fuel expense decreased $841, or 28.5%, to $2,113 for the three months ended September 30, 2024 from $2,954 for the three months ended September 30, 2023.  Fuel expense was 0.7% of Expedited Freight operating revenues for the three months ended September 30, 2024 compared to 1.1% and for the same period in 2023.  Expedited Freight fuel expense decreased primarily from a 10.6% lower average price of fuel in the third quarter of 2024 as compared to the same period in 2023.
Other Operating Expenses
Expedited Freight other operating expenses increased $2,260, or 9.5%, to $26,155 for the three months ended September 30, 2024 from $23,895 for the three months ended September 30, 2023. Other operating expenses were 9.1% of Expedited Freight operating revenues for the three months ended September 30, 2024 compared to 8.5% for the same period in 2023. Other operating expenses include contract labor, equipment maintenance, facility expenses, legal and professional fees, and other over-the-road costs. The increase in other operating expenses was primarily due to an increase in software license and subscription fees, and utility and communication fees, partially offset by a decrease in supply parts,and professional fees, in the third quarter of 2024 as compared to the same period in 2023.
Income from Operations
Expedited Freight income from operations decreased $13,278, or 40.8%, to $19,269 for the three months ended September 30, 2024 compared to $32,547 for the three months ended September 30, 2023.  Income from operations was 6.8% of Expedited Freight operating revenues for the three months ended September 30, 2024 compared to 11.7% for the same period in 2023. The change was due primarily from a decrease in revenue per hundredweight without an offsetting decrease in purchased transportation costs for the three months ended September 30, 2024 compared to the same period in 2023.

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Intermodal - Three Months Ended September 30, 2024 compared to Three Months Ended September 30, 2023

The following table sets forth the financial data of our Intermodal segment for the three months ended September 30, 2024 and 2023 (unaudited and in thousands):

Three Months Ended
 September 30, 2024Percent of RevenueSeptember 30, 2023Percent of RevenueChangePercent Change
Operating revenues$57,412 100.0 %$62,183 100.0 %$(4,771)(7.7)%
Operating expenses:
Purchased transportation18,300 31.9 18,945 30.5 (645)(3.4)
Salaries, wages and employee benefits14,506 25.3 16,118 25.9 (1,612)(10.0)
Operating leases5,668 9.9 5,144 8.3 524 10.2 
Depreciation and amortization4,582 8.0 5,187 8.3 (605)(11.7)
Insurance and claims2,528 4.4 2,758 4.4 (230)(8.3)
Fuel expense1,942 3.4 2,892 4.7 (950)(32.8)
Other operating expenses5,795 10.0 6,395 10.3 (600)(9.4)
Total operating expenses53,321 92.9 57,439 92.4 (4,118)(7.2)
Income from operations$4,091 7.1 %$4,744 7.6 %$(653)(13.8)%

Intermodal Operating Statistics
Three Months Ended
September 30, 2024September 30, 2023Percent Change
Drayage shipments62,616 68,576 (8.7)%
Drayage revenue per shipment$824 $823 0.1 %



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Operating Revenues

Intermodal operating revenues decreased $4,771, or 7.7%, to $57,412 for the three months ended September 30, 2024 from $62,183 for the three months ended September 30, 2023. The decrease in operating revenues was primarily due to a 8.7% decrease in drayage shipments as compared to the same period in 2023. The decrease in drayage shipments, lower fuel and storage revenue, and lower accessorial revenues to support customers was primarily due to the challenged market conditions that led to decreased customer demand for our services in the third quarter of 2024 as compared to the same period in 2023.

Purchased Transportation

Intermodal purchased transportation decreased $645, or 3.4%, to $18,300 for the three months ended September 30, 2024 from $18,945 for the three months ended September 30, 2023. Purchased transportation was 31.9% of Intermodal operating revenues for the three months ended September 30, 2024 compared to 30.5% for the same period in 2023.  Intermodal purchased transportation includes Leased Capacity Providers and third-party motor carriers, while Company-employed drivers are included in salaries, wages and employee benefits. The increase in purchased transportation was primarily due to the change in the mix of freight capacity purchased from Leased Capacity Providers, third-party motor carriers and Company-employed drivers compared to the same period in 2023.

Salaries, Wages and Employee Benefits

Intermodal salaries, wages and employee benefits decreased $1,612, or 10.0%, to $14,506 for the three months ended September 30, 2024 compared to $16,118 for the three months ended September 30, 2023.  Salaries, wages and employee benefits were 25.3% of Intermodal operating revenues for the three months ended September 30, 2024 compared to 25.9% for the same period in 2023. The decrease in salaries, wages and employee benefits expense was primarily due to fewer Company-employed drivers and office employees in response to the lower volumes, as compared to the same period in 2023.

Operating Leases

Intermodal operating leases increased $524, or 10.2%, to $5,668 for the three months ended September 30, 2024 compared to $5,144 for the three months ended September 30, 2023.  Operating leases were 9.9% of Intermodal operating revenues for the three months ended September 30, 2024 compared to 8.3% for the same period in 2023. The increase in operating lease expense was primarily due to higher leasing costs associated lease renewals in the third quarter of 2024 as compared to the same period in 2023.

Depreciation and Amortization

Intermodal depreciation and amortization decreased $605, or 11.7%, to $4,582 for the three months ended September 30, 2024 from $5,187 for the three months ended September 30, 2023. Depreciation and amortization was 8.0% of Intermodal operating revenues for the three months ended September 30, 2024 compared to 8.3% for the same period in 2023. The decrease in depreciation and amortization expense was primarily due to the lower amount of depreciable equipment.

Fuel Expense

Intermodal fuel expense decreased $950, or 32.8%, to $1,942 for the three months ended September 30, 2024 from $2,892 for the three months ended September 30, 2023.  Fuel expense was 3.4% of Intermodal operating revenues for the three months ended September 30, 2024 compared to 4.7% for the same period in 2023. Intermodal fuel expense decreased due to lower volumes and a decrease in the average price of fuel as compared to the same period in 2023.

Other Operating Expenses

Intermodal other operating expenses decreased $600, or 9.4%, to $5,795 for the three months ended September 30, 2024 from $6,395 for the three months ended September 30, 2023.  Other operating expenses were 10.0% of Intermodal operating revenues for the three months ended September 30, 2024 compared to 10.3% for the same period in 2023. Other operating expenses include contract labor, equipment maintenance, facility expenses, legal and professional fees, and accessorial storage costs. The decrease in other operating expenses was primarily due to lower accessorial storage costs incurred as a result of decreased accessorial revenues in the third quarter of 2024 compared to the same period in 2023.
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Income from Operations

Intermodal income from operations decreased $653, or 13.8%, to $4,091 for the three months ended September 30, 2024 compared to $4,744 for the three months ended September 30, 2023.  Income from operations was 7.1% of Intermodal operating revenues for the three months ended September 30, 2024 compared to 7.6% for the same period in 2023.  The decrease in income from operations as a percentage of operating revenues was primarily due to higher rents as compared to revenues.

Other Operations - Three Months Ended September 30, 2024 compared to Three Months Ended September 30, 2023

Other operations included a $1,799 operating loss during the three months ended September 30, 2024 compared to $25,602 of operating loss during the three months ended September 30, 2023. The change in the operating loss was primarily due to $549 of professional fees incurred for transaction and integration costs in the third quarter of 2024 as compared to $22,371 in the third quarter of 2023 which included costs in connection with the Omni Acquisition, higher group health insurance claims, and higher reserves for vehicle liability claims.


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Results from Operations

The following table sets forth our consolidated financial data for the nine months ended September 30, 2024 and 2023 (unaudited and in thousands):

Nine Months Ended
September 30, 2024September 30, 2023ChangePercent Change
Operating revenues:
Expedited Freight$849,284 $817,888 $31,396 3.8 %
Intermodal173,003 214,603 (41,600)(19.4)
Omni Logistics871,232 — 871,232 — 
Eliminations and other operations(52,103)(184)(51,919)NM
Operating revenues1,841,416 1,032,307 809,109 78.4 
Operating expenses:
Purchased transportation931,072 435,844 495,228 113.6 
Salaries, wages, and employee benefits406,382 215,983 190,399 88.2 
Operating leases133,871 66,505 67,366 101.3 
Depreciation and amortization106,321 39,826 66,495 167.0 
Insurance and claims44,961 38,988 5,973 15.3 
Fuel expense15,960 16,733 (773)(4.6)
Other operating expenses234,175 133,218 100,957 75.8 
Impairment of goodwill1,107,465 — 1,107,465 — 
Total operating expenses2,980,207 947,097 2,033,110 214.7 
Income (loss) from operations:
Expedited Freight60,713 89,295 (28,582)(32.0)
Intermodal12,994 20,259 (7,265)(35.9)
Omni Logistics(1,133,323)— (1,133,323)— 
Other Operations(79,175)(24,344)(54,831)NM
(Loss) income from operations(1,138,791)85,210 (1,224,001)NM
Other expense:
Interest expense, net(140,788)(7,595)(133,193)1,753.7 
Foreign exchange loss(1,912)— (1,912)— 
Other income, net38 — 38 — 
Total other expense(142,662)(7,595)(135,067)1,778.4 
(Loss) income from operations before income taxes(1,281,453)77,615 (1,359,068)(1,751.0)
Income tax (benefit) expense(191,990)20,091 (212,081)(1,055.6)
Net income from continuing operations(1,089,463)57,524 (1,146,987)(1,993.9)
(Loss) income from discontinued operation, net of tax(6,013)8,083 (14,096)(174.4)
Net (loss) income (1,095,476)65,607 (1,161,083)(1,769.8)
Net loss attributable to noncontrolling interest(314,923)— (314,923)— 
Net (loss) income attributable to Forward Air$(780,553)$65,607 $(846,160)(1,289.7)%
NM=Not Meaningful


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Operating Revenues

Operating revenues increased $809,109, or 78.4% to $1,841,416 for the nine months ended September 30, 2024 compared to $1,032,307 for the nine months ended September 30, 2023. The increase was primarily due to the inclusion of $871,232 from the Omni Logistics segment and an increase in our Expedited Freight segment revenue of $31,396 due to increased Network revenue, offset by a decrease from our Intermodal segment of $41,600, The results for our reportable segments are discussed in detail in the following sections.

Operating Expenses
Operating expenses increased $2,033,110, or 214.7%, to $2,980,207 for the nine months ended September 30, 2024 compared to $947,097 for the nine months ended September 30, 2023. The increase was primarily due to the inclusion of the $2,004,555 of operating expenses from the Omni Logistics segment which includes a goodwill impairment charge of $1,107,465 and a $59,978 increase in operating expenses from the Expedited Freight segment, partially offset by a $34,335 decrease in operating expenses from the Intermodal segment.
Loss from Operations and Segment Operations

Loss from operations changed by $1,224,001, to $1,138,791 for the nine months ended September 30, 2024 compared to income of $85,210 for the nine months ended September 30, 2023. The loss was primarily driven by Omni Logistics segment of $1,133,323 as a result of a goodwill impairment charge of $1,107,465, Other Operations of $54,831, Expedited Freight segment of $28,582, and our Intermodal segment of $7,265.

Interest Expense, net

Interest expense, net was $140,788 for the nine months ended September 30, 2024 compared to $7,595 for the nine months ended September 30, 2023. The increase in interest expense was due to higher variable interest rates during the nine months ended September 30, 2024 on outstanding debt balances as compared to the same period in 2023. The weighted-average interest rate on the borrowings under the Revolving Credit Facility was 9.56% and 6.24% during the nine months ended September 30, 2024 and 2023, respectively.

Income Taxes on a Continuing basis

The effective tax rate for the nine months ended September 30, 2024 was 15.0% compared to a rate of 25.9% for the nine months ended September 30, 2023. The effective tax rate for the current nine months is much lower than historical rate due to the goodwill impairment charge in the current year.

(Loss) Income from Discontinued Operations, net of Tax

Loss from discontinued operations of $6,013, net of tax increased, resulted in an unfavorable change of $14,096 or 174% for the nine months ended September 30, 2024 compared to income of $8,083 during the same period in 2023. The loss was due to final net working capital settlement following the sale of our Final Mile business in December 2023.
Net (Loss) Income

As a result of the foregoing factors, net income decreased $1,161,083, or 1,769.8%, to a loss of $1,095,476 for the nine months ended September 30, 2024 compared to $65,607 income for the nine months ended September 30, 2023.

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Expedited Freight - Nine Months Ended September 30, 2024 compared to Nine Months Ended September 30, 2023

The following table sets forth the financial data of our Expedited Freight segment for the nine months ended September 30, 2024 and 2023:

Expedited Freight Segment Information
(unaudited and in thousands)
Nine Months Ended
 September 30, 2024Percent of RevenueSeptember 30, 2023Percent of RevenueChangePercent Change
Operating revenues:
Network 1
$655,116 77.1 %$628,670 76.9 %$26,446 4.2 %
Truckload125,368 14.8 120,976 14.8 4,392 3.6 
Other68,800 8.1 68,242 8.3 558 0.8 
Total operating revenues849,284 100.0 817,888 100.0 31,396 3.8 
Operating expenses:
Purchased transportation410,307 48.3 379,166 46.4 31,141 8.2 
Salaries, wages and employee benefits185,824 21.9 170,237 20.8 15,587 9.2 
Operating leases45,268 5.3 46,331 5.7 (1,063)(2.3)
Depreciation and amortization31,463 3.7 25,087 3.1 6,376 25.4 
Insurance and claims33,293 3.9 28,856 3.5 4,437 15.4 
Fuel expense7,128 0.8 7,978 1.0 (850)(10.7)
Other operating expenses75,288 9.0 70,938 8.6 4,350 6.1 
Total operating expenses788,571 92.9 728,593 89.1 59,978 8.2 
Income from operations$60,713 7.1 %$89,295 10.9 %$(28,582)(32.0)%
1 Network revenue is comprised of all revenue, including linehaul, pickup and/or delivery, and fuel surcharge revenue, excluding accessorial and Truckload revenue.

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Expedited Freight Operating Statistics
Nine Months Ended
September 30, 2024September 30, 2023Percent Change
Business days192 191 0.5 %
Tonnage 1,2
    Total pounds2,112,126 1,988,713 6.2 
    Pounds per day11,001 10,412 5.7 
Shipments 1,2
    Total shipments2,529 2,494 1.4 
    Shipments per day13.2 13.1 0.8 
Weight per shipment835 798 4.6 
Revenue per hundredweight 3
$31.03 $31.90 (2.7)
Revenue per hundredweight, ex fuel 3
$24.21 $24.65 (1.8)
Revenue per shipment 3
$259.13 $254.42 1.9 
Revenue per shipment, ex fuel 3
$202.16 $196.58 2.8 
1 In thousands
2 Excludes accessorial and Truckload products
3 Includes intercompany revenue between the Network and Truckload revenue streams

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Operating Revenues
Expedited Freight operating revenues increased $31,396, or 3.8%, to $849,284 for the nine months ended September 30, 2024 from $817,888 for the nine months ended September 30, 2023. The increase was driven by increased Network revenue and Truckload revenue. Network revenue increased due to a 6.2% increase in tonnage, offset by a 1.8% decrease in revenue per hundredweight ex fuel as compared to the same period in the prior year. The increase in tonnage reflects an increase in weight per shipment of 4.6% on 1.4% more shipments. The increase in shipments is due to higher demand for our services while the increase in weight per shipment was the result of more dense freight in our network driven by a change in the mix of services provided to customers. Truckload revenue increased $4,392, primarily due to increased customer demand for our services as compared to the same period in 2023. Higher tonnage, higher shipment count, and higher revenue per shipment contributed to the overall increase in operating revenues for the Expedited Freight segment.

Purchased Transportation
Expedited Freight purchased transportation increased $31,141, or 8.2%, to $410,307 for the nine months ended September 30, 2024 from $379,166 for the nine months ended September 30, 2023. Purchased transportation was 48.3% of Expedited Freight operating revenue for the nine months ended September 30, 2024 compared to 46.4% for the same period in 2023. Expedited Freight purchased transportation includes Leased Capacity Providers and third-party motor carriers and transportation intermediaries, while Company-employed drivers are included in salaries, wages and employee benefits. The increase in purchased transportation was primarily due to higher volumes in the Network and the change in the mix of freight capacity purchased from Leased Capacity Providers, third-party motor carriers and transportation intermediaries and Company-employed drivers for Network and Truckload services. For the nine months ended September 30, 2024, we purchased 63.8%, 33.2% and 4.0% of our freight capacity from Leased Capacity Providers, third-party motor carriers and transportation intermediaries and Company-employed drivers, respectively. This compares to 65.1%, 30.1% and 4.8% in the same period in 2023.
Salaries, Wages, and Employee Benefits
Expedited Freight salaries, wages and employee benefits increased $15,587, or 9.2%, to $185,824 for the nine months ended September 30, 2024 from $170,237 for the nine months ended September 30, 2023.  Salaries, wages and employee benefits were 21.9% of Expedited Freight operating revenues for the nine months ended September 30, 2024 compared to 20.8% for the same period in 2023.  The increase in salaries, wages and employee benefits expense was primarily due to higher Company-employed driver count in response to the higher volumes and an increase in salaries and wage rates compared to the same period in 2023.
Operating Leases
Expedited Freight operating leases decreased $1,063, or 2.3%, to $45,268 for the nine months ended September 30, 2024 from $46,331 for the nine months ended September 30, 2023.  Operating leases were 5.3% of Expedited Freight operating revenues for the nine months ended September 30, 2024 compared to 5.7% for the same period in 2023. The decrease in operating leases expense was primarily due to fewer equipment leases for the nine months ended September 30, 2024, as compared to the same period in 2023.
Depreciation and Amortization
Expedited Freight depreciation and amortization increased $6,376, or 25.4%, to $31,463 for the nine months ended September 30, 2024 from $25,087 for the nine months ended September 30, 2023.  Depreciation and amortization was 3.7% of Expedited Freight operating revenues for the nine months ended September 30, 2024 compared to 3.1% for the same period in 2023. The increase in depreciation and amortization expense was primarily the result of purchasing and placing in service new equipment in the second half of 2023 and first half of 2024.
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Insurance and Claims
Expedited Freight insurance and claims increased $4,437, or 15.4%, to $33,293 for the nine months ended September 30, 2024 from $28,856 for the nine months ended September 30, 2023.  Insurance and claims were 3.9% of Expedited Freight operating revenues for the nine months ended September 30, 2024 compared to 3.5% for the same period in 2023. The increase in insurance and claims expense was primarily due to an increase in equipment repair claims, vehicle liability and cargo claims, and insurance premiums, for the nine months ended September 30, 2024 as compared to the same period in 2023.
Other Operating Expenses
Expedited Freight other operating expenses increased $4,350, or 6.1%, to $75,288 for the nine months ended September 30, 2024 from $70,938 for the nine months ended September 30, 2023. Other operating expenses were 9.0% of Expedited Freight operating revenues for the nine months ended September 30, 2024 compared to 8.6% for the same period in 2023. Other operating expenses include contract labor, equipment maintenance, facility expenses, legal and professional fees, and other over-the-road costs. The increase in other operating expenses was primarily driven by an increase in software license and subscription fees and utilities and communications expenses, partially offset by a decrease in professional fees, maintenance and repair expense and supply parts, for nine months ended September 30, 2024 as compared to the same period in 2023.
Income from Operations
Expedited Freight income from operations decreased $28,582, or 32.0%, to $60,713 for the nine months ended September 30, 2024 compared to $89,295 for the nine months ended September 30, 2023.  Income from operations was 7.1% of Expedited Freight operating revenues for nine months ended September 30, 2024 compared to 10.9% for the same period in 2023. The decrease in income was primarily a result of 8.2% higher purchased transportation and wage and benefits expenses without sufficient increase in total operating revenue of 3.8% growth.
Intermodal - Nine Months Ended September 30, 2024 compared to Nine Months Ended September 30, 2023

The following table sets forth the financial data of our Intermodal segment for the nine months ended September 30, 2024 and 2023:

Intermodal Segment Information
(unaudited and in thousands)
Nine Months Ended
 September 30, 2024Percent of RevenueSeptember 30, 2023Percent of RevenueChangePercent Change
Operating revenue$173,003 100.0 %$214,603 100.0 %$(41,600)(19.4)%
Operating expenses:
Purchased transportation54,916 31.7 56,868 26.5 (1,952)(3.4)
Salaries, wages and employee benefits44,487 25.7 51,682 24.1 (7,195)(13.9)
Operating leases15,136 8.7 20,174 9.4 (5,038)(25.0)
Depreciation and amortization13,921 8.0 14,739 6.9 (818)(5.5)
Insurance and claims7,753 4.5 7,922 3.7 (169)(2.1)
Fuel expense6,546 3.8 8,756 4.1 (2,210)(25.2)
Other operating expenses17,250 10.1 34,203 15.9 (16,953)(49.6)
Total operating expenses160,009 92.5 194,344 90.6 (34,335)(17.7)
Income from operations$12,994 7.5 %$20,259 9.4 %$(7,265)(35.9)%

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Intermodal Operating Statistics
Nine Months Ended
September 30, 2024September 30, 2023Percent Change
Drayage shipments190,152 209,221 (9.1)%
Drayage revenue per shipment$824 $941 (12.4)%

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Operating Revenues

Intermodal operating revenues decreased $41,600, or 19.4%, to $173,003 for the nine months ended September 30, 2024 from $214,603 for the nine months ended September 30, 2023. The decrease in operating revenues was primarily due to a 9.1% decrease in drayage shipments and a decrease in drayage revenue per shipment of 12.4% as compared to the same period in 2023. The decrease in drayage shipments and lower accessorial revenue to support customers was primarily due to challenged market demand for our services driven by an extended weak freight environment for the nine months ended September 30, 2024 as compared to the same period in 2023.

Purchased Transportation

Intermodal purchased transportation decreased $1,952, or 3.4%, to $54,916 for the nine months ended September 30, 2024 from $56,868 for the nine months ended September 30, 2023.  Purchased transportation was 31.7% of Intermodal operating revenues for the nine months ended September 30, 2024 compared to 26.5% for the same period in 2023.  Intermodal purchased transportation includes Leased Capacity Providers and third-party motor carriers, while Company-employed drivers are included in salaries, wages and employee benefits. The decrease in purchased transportation was primarily due to fewer drayage shipments and the change in the mix of freight capacity purchased from Lease Capacity Providers, third-party motor carriers and Company-employed drivers compared to the same period in 2023.

Salaries, Wages, and Employee Benefits

Intermodal salaries, wages and employee benefits decreased $7,195, or 13.9%, to $44,487 for the nine months ended September 30, 2024 compared to $51,682 for the nine months ended September 30, 2023. Salaries, wages and employee benefits were 25.7% of Intermodal operating revenues for the nine months ended September 30, 2024 compared to 24.1% for the same period in 2023.  The decrease in salaries, wages and employee benefits expense was primarily due to fewer Company-employed drivers in response to lower volumes as compared to the same period in 2023.

Operating Leases

Intermodal operating leases decreased $5,038, or 25.0%, to $15,136 for the nine months ended September 30, 2024 from $20,174 for the nine months ended September 30, 2023.  Operating leases were 8.7% of Intermodal operating revenues for the nine months ended September 30, 2024 compared to 9.4% for the same period in 2023. The decrease in operating leases expense was primarily due to decreased equipment rental expense incurred to support the decreased accessorial revenues for the nine months ended September 30, 2024 as compared to the same period in 2023.

Depreciation and Amortization

Intermodal depreciation and amortization decreased $818, or 5.5%, to $13,921 for the nine months ended September 30, 2024 from $14,739 for the nine months ended September 30, 2023.  Depreciation and amortization was 8.0% of Intermodal operating revenues for the nine months ended September 30, 2023 compared to 6.9% for the same period in 2023. The decrease in depreciation and amortization expense was primarily due to minimal new asset additions during the period and some equipment disposals and assets having reached their full depreciable lives.

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Fuel Expense

Intermodal fuel expense decreased $2,210, or 25.2%, to $6,546 for the nine months ended September 30, 2024 from $8,756 for the nine months ended September 30, 2023. Fuel expense was 3.8% of Intermodal operating revenues for the nine months ended September 30, 2024 compared to 4.1% for the same period in 2023.  Intermodal fuel expense decreased due to fewer miles driven by Company-employed drivers and a decrease in the average price of fuel for the nine months ended September 30, 2024 as compared to the same period in 2023.

Other Operating Expenses

Intermodal other operating expenses decreased $16,953, or 49.6%, to $17,250 for the nine months ended September 30, 2024 compared to $34,203 for the nine months ended September 30, 2023.  Other operating expenses were 10.1% of Intermodal operating revenues for the nine months ended September 30, 2024 compared to 15.9% for the same period in 2023. Other operating expenses include contract labor, equipment maintenance, facility expenses, legal and professional fees, and accessorial storage costs. The decrease in other operating expenses was primarily driven by lower accessorial storage costs incurred to support the decreased accessorial revenues for the nine months ended September 30, 2024 as compared to the same period in 2023.

Income from Operations

Intermodal income from operations decreased by $7,265, or 35.9%, to $12,994 for the nine months ended September 30, 2024 compared to $20,259 for the nine months ended September 30, 2023.  Income from operations was 7.5% of Intermodal operating revenue for the nine months ended September 30, 2024 compared to 9.4% for the same period in 2023. The decrease in income from operations as a percentage of operating revenues was driven by 12.4% lower drayage revenue per shipment on 9.1% fewer drayage shipments and 1.90% higher overall operating expenses as a percentage of revenue for the nine month period ended September 30, 2024 as compared to the same period in 2023.

Other Operations - Nine Months Ended September 30, 2024 compared to Nine Months Ended September 30, 2023

Other operations included a $79,175 operating loss during the nine months ended September 30, 2024 compared to a $24,344 operating loss during the nine months ended September 30, 2023. The change in the operating loss was primarily driven by $71,393 of post-acquisition transaction and integration costs incurred in connection with the Omni Acquisition.

Critical Accounting Policies

The discussion and analysis of our financial condition and results of operations are based on our Condensed Consolidated Financial Statements, which have been prepared in conformity with GAAP. The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and expenses during the reporting period. On an ongoing basis, management evaluates estimates, including those related to allowance for doubtful accounts and revenue adjustments, deferred income taxes and uncertain tax positions, goodwill, other intangible and long-lived assets, and self-insurance loss reserves. Management bases these estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from those estimates under different assumptions or conditions. A description of critical accounting policies and related judgments and estimates that affect the preparation of the Condensed Consolidated Financial Statements is set forth in the Annual Report on Form 10-K for the year-ended December 31, 2023. The following supplements the 2023 Annual Form 10-K.

Goodwill

We test goodwill at the reporting unit level for impairment annually as of June 30 and on an interim basis when events occur or circumstances exist that carrying value may not be recoverable. We estimate the fair value of a reporting unit using a discounted cash flow (DCF), or as appropriate, a combination of the DCF and market approach known as the guideline public company approach. Under the DCF model, we calculate the fair value of a reporting unit under the present value of estimated cash flows. The significant assumptions in the DCF model primarily include, but are not limited to, forecast of annual revenue growth rates, annual operating income margin, and the terminal growth rate and the discount rate used to present value the cash flow projections. When determining these assumptions and preparing these estimates, we consider historical performance trends, and the reporting units underlying business and other market trends that may affect the reporting unit. The discount rate is based on the estimated weighted average cost of capital as of the test date of market participants in the industry in which the reporting unit operates. Under the guideline public company method, we estimate the fair value based upon market multiples of revenue and earnings derived from publicly traded companies with similar operating and investment characteristics as the reporting unit.
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Estimating the fair value of a reporting unit involves uncertainties because it requires management to develop numerous assumptions, including assumptions about the future growth and potential volatility in revenues and costs, capital expenditures, industry economic factors and future business strategy. Changes in projected revenue growth rates, projected operating income margins or estimated discount rates due to uncertain market conditions, loss of one or more key customers, changes in our strategy, changes in technology or other factors could negatively affect the fair value in one or more of our reporting units and result in a material impairment charge in the future.

To assess the reasonableness of the calculated fair values of our reporting units, we also compare the sum of the reporting units’ fair values to our market capitalization and calculate an implied control premium.

2024 Annual Goodwill Analysis

The annual test of goodwill was performed for each of the reporting units with goodwill balances as of June 30, 2024. To complete the Omni Logistics goodwill test, we determined the fair value of the reporting unit using the DCF model and a guideline public company approach with 50% of the value determined using the DCF and 50% of the value using the market approach. As a result of the annual test, we recorded goodwill impairment charges totaling $1,092,714 million which all related to our Omni Logistics reporting unit. This reporting unit was acquired on January 25, 2024. Primarily due to a decrease in the market value of the Company’s common stock during the second quarter of 2024, as a result of many factors including, but not limited to, general market factors, credit rating downgrades, and changes in executive leadership, and the inherent uncertainty associated with the combined enterprise, the Omni Logistics reporting unit’s fair value was determined to be less than its carrying value. As a result, the Company recorded a non-cash impairment charge of $1,092,714 during the six months ended June 30, 2024. Due to measurement period adjustments in the three months ended September 30, 2024, an additional $14,751 of goodwill impairment was recorded. The cumulative goodwill impairment through the nine months ended September 30, 2024 is $1,107,465. The goodwill impairment expense was recorded in the Impairment of goodwill caption on the Condensed Consolidated Statement of Operations. To complete the Omni Logistics goodwill test, we determined the fair value of the reporting unit using the DCF model and a guideline public company approach with 50% of the value determined using the DCF and 50% of the value using the market approach.

Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors. Purchase price allocation of Omni Logistics is not yet complete, and as a result, there can be no assurance that there will not be a material impairment charge in the future.

Finite-Lived Intangible Assets and Other Long-Lived Assets

The Company reviews its long-lived assets, which include intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The evaluation for recoverability is performed at a level where independent cash flows may be attributed to either an asset or asset group. The analysis differs from our goodwill impairment test in that an intangible or other long-lived asset is only deemed to have occurred if the sum of the forecasted undiscounted cash flows related to the assets being evaluated is less than the carrying value of the assets. If the forecasted net cash flows are less than the carrying value, then the assets are written down to estimated value. We did not identify any impairments of definite-lived assets in the three and nine months ended September 30, 2024 and 2023. Changes in the estimates of forecasted net cash flows may result in future asset impairments that could be material to our results of operations.

Liquidity and Capital Resources
 
We have historically financed our working capital needs, including capital expenditures, with available cash, cash flows from operations and borrowings under the Revolving Credit Facility. In the first quarter of 2024, our then existing credit facility was repaid and extinguished in tandem with the Omni Acquisition. We believe that availability of borrowings under the Revolving Credit Facility and our New Term Loans, together with available cash and internally generated funds, will be sufficient to support our working capital, capital expenditures and debt service requirements over the next twelve months. As previously disclosed and more fully described below and in Note 4, Acquisitions, to the Condensed Consolidated Financial Statements, we incurred significant indebtedness in connection with the Omni Acquisition. This substantial level of debt could have important consequences to our business, including, but not limited to the factors as more fully discussed in the risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2023, Item 1A, “Risk Factors” - “Risks Relating to our Indebtedness”. In addition, we frequently utilize operating leases to acquire revenue equipment.

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Senior Secured Notes
In order to finance a portion of the cash consideration payable for the Omni Acquisition and the costs and expenses incurred in connection therewith, GN Bondco, LLC, a Delaware limited liability company and wholly owned subsidiary of Omni (the “Escrow Issuer” and consolidated VIE at December 31, 2023) launched a private offering of $725,000 aggregate principal amount of the Notes, in a transaction exempt from registration under the Securities Act. Upon the closing of the Omni Acquisition, Opco assumed the Escrow Issuer’s obligations under the Notes. The Notes bear interest at a rate of 9.5% per annum, payable semiannually in cash in arrears on April 15 and October 15 of each year, commencing April 15, 2024. The Notes were issued at 98.0% of the face amount and will mature on October 15, 2031. The Notes were issued pursuant to an indenture, dated as of October 2, 2023, between the Escrow Issuer and U.S. Bank Trust Company, National Association, as trustee and notes collateral agent.

The Notes are guaranteed on a senior secured basis in an aggregate principal amount in excess of $100,000. Prior to October 15, 2026, Opco may redeem some or all of the Notes at any time and from time to time at a redemption price equal to 100.000% of the principal amount thereof plus the applicable “make-whole” premium, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. On or after October 15, 2026, Opco may redeem some or all of the Notes at the following prices (expressed as a percentage of principal), plus in each case accrued and unpaid interest, if any, to, but excluding, the redemption date: (a) in the case of a redemption occurring during the 12-month period commencing October 15, 2026, at a redemption price of 104.750%; (b) in the case of a redemption occurring during the 12-month period commencing on October 15, 2027, at a redemption price of 102.375%; and (c) in the case of a redemption occurring on or after October 15, 2028, at a redemption price of 100.000%. In addition, at any time prior to October 15, 2026, Opco may redeem up to 40.000% of the original aggregate principal amount of the Notes in an amount not to exceed the amount of net cash proceeds from one or more equity offerings at a redemption price equal to 109.5 % of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. Upon the occurrence of a “change of control”, Opco will be required to offer to repurchase all of the outstanding principal amount of the Notes at a purchase price of 101.000% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase.

Senior Secured Term Loan Facility
In order to finance a portion of the cash consideration payable for the Omni Acquisition and the costs and expenses incurred in connection therewith, GN Loanco, LLC, a Delaware limited liability company and wholly owned subsidiary of Omni (the “Escrow Loan Borrower” and consolidated VIE at December 31, 2023), entered into the Credit Agreement. Pursuant to the Credit Agreement, the Escrow Loan Borrower obtained the New Term Loans and the ability to draw down up to $400,000 under the Revolving Credit Facility. The New Term Loans bear interest based, at Opco’s election, on (a) SOFR plus an applicable margin or (b) the base rate plus an applicable margin. The base rate is equal the highest of the following: (i) the prime rate; (ii) 0.50% above the overnight federal funds rate; and (iii) the one-month SOFR plus 1.00%. The applicable margin for SOFR loans is 4.50% and the applicable margin for base rate loans is 3.50%. The New Term Loans are subject to customary amortization of 1.00% per year. The New Term Loans were issued at 96.0% of the face amount and will mature on December 19, 2030.

No borrowings under the Revolving Credit Facility were made in connection with the Omni Acquisition. The Revolving Credit Facility will mature on January 25, 2029. Loans made under the Revolving Credit Facility bear interest based, at Opco’s election, on (a) SOFR plus an applicable margin or (b) the base rate plus an applicable margin. Until delivery of a compliance certificate in respect of the fiscal quarter ending September 30, 2024, the applicable margin for SOFR loans is 4.25% and the applicable margin for base rate loans is 3.25%. Thereafter, the applicable margin can range from 3.75% to 4.25% for SOFR loans and from 2.75% to 3.25% for base rate loans, in each case depending on Opco’s first lien net leverage ratio, as set forth in the Credit Agreement. Upon the closing of the Omni Acquisition, Opco assumed the Escrow Loan Borrower’s obligations under the Credit Agreement, which were further secured by certain guarantors. Opco’s obligations under the Credit Agreement are guaranteed on a senior secured basis by us and each of Opco’s existing and future domestic subsidiaries (subject to customary exceptions).

On January 25, 2024, the date of the Omni Acquisition, both GN Bondco, LLC and GN Loanco, LLC ceased operations and their debt and related funds were transferred to Opco, a consolidated subsidiary of us.

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On February 12, 2024, Opco and the parties to the Credit Agreement entered into Amendment No. 2 to the Credit Agreement, which (a) modifies the financial performance covenant in the Credit Agreement by temporarily increasing the 4.50:1.00 maximum consolidated first lien net leverage ratio permitted by the covenant to (i) 6.00:1.00 (for the second and third quarters of 2024), (ii) 5.50:1.00 (for the fourth quarter of 2024), (iii) 5.25:1.00 (for the first quarter of 2025), (iv) 5.00:1.00 (for the second quarter of 2025) and (v) 4.75:1.00 (for the third quarter of 2025) and (b) reduces the revolving credit commitments available under the Credit Agreement from an aggregate principal amount of $400,000 to an aggregate principal amount of $340,000. Amendment No. 2 also amends certain other terms of the Credit Agreement in connection with the foregoing. Prior to the effectiveness of Amendment No. 2 on February 12, 2024, Opco repaid $80,000 aggregate principal amount of the New Term Loans outstanding under the Credit Agreement, together with all accrued and unpaid interest thereon.

Both the Notes and Revolving Credit Facility contain covenants that, among other things, restrict the ability of us, without the approval of the required lenders, to engage in certain mergers, consolidations, asset sales, dividends and stock repurchases, investments, and other transactions or to incur liens or indebtedness in excess of agreed thresholds, as set forth in the credit agreement. The Revolving Credit Facility’s terms also include a financial covenant which requires us to maintain a specific leverage ratio. As of the date of this report, we were in compliance with all aforementioned covenants.

Tax Receivable Agreement

In connection with the Omni Acquisition, we, Opco, Omni Holders and certain other parties entered into the Tax Receivable Agreement, which sets forth the agreement among the parties regarding the sharing of certain tax benefits realized by us as a result of the Omni Acquisition. Pursuant to the Tax Receivable Agreement, we are generally obligated to pay certain Omni Holders 83.5% of (a) the total tax benefit that we realize as a result of increases in tax basis in Opco’s assets resulting from certain actual or deemed distributions and the future exchange of units of Opco for shares of securities of us (or cash) pursuant to Opco’s operating agreement that became effective as of the Closing, (b) certain pre-existing tax attributes of certain Omni Holders that are corporate entities for tax purposes, (c) the tax benefits that we realize from certain tax allocations that correspond to items of income or gain required to be recognized by certain Omni Holders, and (d) other tax benefits attributable to payments under the Tax Receivable Agreement. Payment obligations under the Tax Receivable Agreement rank pari passu with all unsecured obligations but senior to any future tax receivable or similar agreement entered into by us.

The term of the Tax Receivable Agreement will continue until all such tax benefits have been utilized or expired unless we elect to terminate the Tax Receivable Agreement early (or it is terminated early due to a change of control or insolvency event with respect to us or a material breach by us of a material obligation under the Tax Receivable Agreement).

Upon such an early termination, we will be required to make a payment equal to the present value of the anticipated future payments to be made by it under the Tax Receivable Agreement (based upon certain assumptions and deemed events set forth in the Tax Receivable Agreement). In the event of a change of control, under certain circumstances, we may elect to pay the early termination payment over a period of 15 years, with the payments increased to reflect the time value of money.

Cash Flows

Continuing Operations

Net cash used in operating activities of continuing operations was $45,770 for the nine months ended September 30, 2024 compared to net cash provided by operating activities of $142,120 for the nine months ended September 30, 2023. The increase in net cash used in operating activities was primarily due to the change in net income from operations after consideration of non-cash items and the increase in accounts receivable and other current and noncurrent assets, partially offset by the change in accounts payable and accrued expenses.

Net cash used in investing activities was $1,592,878 for the nine months ended September 30, 2024 compared to $75,508 for the nine months ended September 30, 2023. Capital expenditures for the first nine months of 2024 were $29,810, which primarily related to the purchase of technology and operating equipment. Capital expenditures for the first nine months of 2023 were $22,080, which also primarily related to the purchase of technology and operating equipment. Investing activities of continuing operations for the first nine months of 2024 included the Omni Acquisition for a preliminary purchase price of $2,313,653, of which $1,565,242 was cash consideration and the remainder non-cash equity shares. Further, investing activities for the first nine months of 2023 included the acquisition of Land Air for a preliminary purchase price of $56,567.

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Net cash used in financing activities of continuing operations was $169,394 for the nine months ended September 30, 2024 compared to $93,591 for the nine months ended September 30, 2023. The change in the net cash used in financing activities of continuing operations was primarily due to the payment of debt issuance costs, payments on the New Term Loans, payment of finance lease obligations, and payment of an earn-out liability.

Discontinued Operation

Net cash used in operating activities of discontinued operation was $6,013 for the nine months ended September 30, 2024 compared to net cash provided by operating activities for discontinued operations of $17,311 for the nine months ended September 30, 2023. The change in net cash provided by operating activities of discontinued operation was primarily related to a decrease in net income of discontinued operation after consideration of non-cash items. The sale of Final Mile was completed on December 20, 2023.

Net cash used in investing activities of discontinued operation was $0 for the nine months ended September 30, 2024 compared to $1,338 for the nine months ended September 30, 2023. The change in the net cash used in investing activities of discontinued operation was due to the sale of Final Mile, which was completed on December 20, 2023.

Net cash used in financing activities of discontinued operation was $0 for the nine months ended September 30, 2024 compared to $15,973 for the nine months ended September 30, 2023.

Stock Repurchase Program

During the nine months ended September 30, 2024, we did not repurchase any shares of our common stock. During the nine months ended September 30, 2023, we repurchased 883 shares of our common stock for approximately $93,811, through open market transactions. All shares received were retired upon receipt, and the excess of the purchase price over the par value per share was recorded to “Retained (Deficit) Earnings” in our Condensed Consolidated Balance Sheets.

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Forward-Looking Statements

This report contains “forward-looking statements,” as defined in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are statements other than historical information or statements of current condition and relate to future events or our future financial performance. Some forward-looking statements may be identified by use of such terms as “believes,” “anticipates,” “intends,” “plans,” “estimates,” “projects” or “expects.” In this Form 10-Q, forward-looking statements include, but are not limited to, any statements regarding In this Form 10-Q, forward-looking statements include, but are not limited to, any statements regarding: (i) any projections of earnings, revenues, other financial items or related accounting treatment, or cost reduction measures, including any impact of the Omni Acquisition on our financial statements; (ii) future performance, including any expectations about our ability to increase shipments; (iii) our ability to maintain compliance with the covenants of our indebtedness instruments; (iv) our yield management process, any improvements in operating efficiencies and our ability to create synergies across our services; (v) fuel shortages, changes in fuel prices and volatility in fuel surcharge revenue, and the impact on our business; (vi) consumer demand and inventory levels, and the impact on freight volumes; (vii) future insurance, claims and litigation and any associated estimates or projections; (viii) our ability to accelerate the expansion of the Company’s terminal footprint; (ix) certain tax and accounting matters, including the impact on our financial statements and our ability realize remaining net deferred tax assets; (x) intended expansion through acquisitions or greenfield startups, and the impact of any such acquisition on our business; (xi) our ability to use key performance metrics to gauge growth strategies; (xii) future business, economic conditions or performance, as well as industry projections; (xiii) competition, including our specific advantages, the capabilities of our segments, including the integration of services and our geographic location; (xiv) expectations regarding plans, strategies, and objectives of management for future operations and (xv) any belief and any statements of assumptions underlying any of the foregoing.

Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The following is a list of factors, among others, that could cause actual results to differ materially from those contemplated by the forward-looking statements: economic factors such as recessions, inflation, higher interest rates and downturns in customer business cycles, the outcome and related impact of the Omni Acquisition, continued weakening of the freight environment, future debt and financing levels, the outcome of any legal proceedings related to the Omni Acquisition, our substantial indebtedness, our ability to manage our growth and ability to grow, in part, through acquisitions while being able to successfully integrate such acquisitions, our ability to secure terminal facilities in desirable locations at reasonable rates, more limited liquidity than expected which limits our ability to make key investments, the creditworthiness of our customers and their ability to pay for services rendered, our inability to maintain our historical growth rate because of a decreased volume of freight or decreased average revenue per pound of freight moving through our network, the availability and compensation of qualified Leased Capacity Providers and freight handlers as well as contracted, third-party motor carriers needed to serve our customers’ transportation needs, our inability to manage our information systems and inability of our information systems to handle an increased volume of freight moving through our network, the occurrence of cybersecurity risks and events, market acceptance of our service offerings, claims for property damage, personal injuries or workers’ compensation, enforcement of and changes in governmental regulations, environmental, tax, insurance and accounting matters, the handling of hazardous materials, changes in fuel prices, loss of a major customer, increasing competition and pricing pressure, our dependence on our senior management team and the potential effects of changes in employee status, seasonal trends, the occurrence of certain weather events, restrictions in our charter and bylaws, the cost of new equipment, the impact and efficacy of our disclosure controls and procedures, and the risks described in our Annual Report on Form 10-K for the year ended December 31, 2023. As a result of the foregoing, no assurance can be given as to future financial condition, cash flows or results of operations. We undertake no obligation to update or revise any forward­ looking statements, whether as a result of new information, future events or otherwise.
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Item 3.Quantitative and Qualitative Disclosures About Market Risk.

For quantitative and qualitative disclosures about market risks, see “Quantitative and Qualitative Disclosures about Market Risk” in Item 7A of Part II of our Annual Report on Form 10-K for the year ended December 31, 2023 and Item 3 of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. As of the first quarter of 2024, there were no material changes in our exposure to market risk.


Item 4.Controls and Procedures.

Disclosure Controls and Procedures

We maintain controls and procedures designed to ensure that we are able to collect the information required to be disclosed in the reports we file with the SEC, and to process, summarize and disclose this information within the time periods specified in the rules of the SEC. Based on an evaluation of our disclosure controls and procedures as of the end of the period covered by this report conducted by management, with the participation of the Chief Executive Officer and Chief Financial Officer, the Chief Executive Officer and Chief Financial Officer believe that these controls and procedures are effective to ensure that we are able to collect, process and disclose the information we are required to disclose in the reports we file with the SEC within the required time periods.

Changes in Internal Control

There has been no change in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Subsequent to the Omni Acquisition, we have begun integration and controls assessment activities. In accordance with the SEC’s published guidance, because we acquired these operations during the fiscal year, we plan to exclude these operations from our efforts to comply with Section 404 Rules for fiscal 2024.

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Part II.Other Information
  
Item 1.Legal Proceedings.

On September 26, 2023, Rodney Bell, Michael A. Roberts and Theresa Woods, (collectively, the "Plaintiffs"), three of our shareholders, filed a complaint against us and certain of its directors and officers in the Third District Chancery Court sitting in Greeneville, Tennessee (the "Shareholder Complaint"). The Shareholder Complaint alleges, among other things, that our shareholders have the right to vote on certain transactions contemplated by the Merger Agreement and sought an injunction against the consummation of the transaction until a shareholder vote was held. The court initially granted a temporary restraining order enjoining the transactions contemplated by the Merger Agreement but later dissolved it on October 25, 2023. Thereafter and as described below, on the Closing, the parties to the Amended Merger Agreement completed the Omni Acquisition. On May 2, 2024, Plaintiff Michael Roberts, together with the Cambria County Employees Retirement System filed a stipulation and proposed order seeking leave of court to file an amended class action complaint seeking damages, among other forms of relief. Upon receiving leave of the court, on May 15, 2024, the Plaintiffs filed the amended complaint. Like the earlier complaints, it challenges our determination not to subject the Omni Acquisition to a shareholder vote. We disagree with the allegations of the amended complaint and are in the process of defending the matter.

The Company is party to various legal claims and actions incidental to its business, including claims related to vehicle liability, workers’ compensation, property damage and employee medical benefits. The Company accrues for the uninsured portion of contingent losses from these and other pending claims when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. Based on the knowledge of the facts, the Company believes the resolution of claims and pending litigation, taking into account existing reserves, will not have a material adverse effect on the condensed consolidated financial statements. Moreover, the results of complex legal proceedings are difficult to predict, and the Company’s view of these matters may change in the future as the litigation and related events unfold. For information regarding our insurance program and legal proceedings, see Note 11, Commitments and Contingencies in the Notes to our Condensed Consolidated Financial Statements (unaudited) set forth in Part 1 of this report.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds.

Issuer Purchases of Equity Securities

The Company did not repurchase any of its equity securities during the three months ended September 30, 2024.

Item 3.Defaults Upon Senior Securities.

Not applicable.


Item 4.Mine Safety Disclosures.

Not applicable.


Item 5. Other Information.

Shareholder Proposals for the 2025 Annual Meeting of Shareholders

Our proxy statement for the 2024 Annual Meeting of Shareholders, which was filed with the Securities and Exchange Commission on May 20, 2024, contained an inconsistency solely related to the dates by which a shareholder must submit a shareholder proposal for consideration at the 2025 Annual Meeting of Shareholders, but which is not being considered for inclusion in the related proxy statement. In particular, in the case of the 2025 Annual Meeting of Shareholders, director nominations can be submitted by shareholders in accordance with the provisions of our Bylaws no earlier than February 3, 2025 and the deadline to submit nominations is March 5, 2025. Accordingly, the Company is hereby confirming the following with respect to shareholder proposals for the 2025 Annual Meeting of Shareholders:




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Shareholder Proposals for the 2025 Annual Meeting of Shareholders

Any proposal intended to be presented for action at the 2025 Annual Meeting of Shareholders by any shareholder of the Company must be received by the Secretary of the Company at its principal executive offices not later than February 3, 2025 in order for such proposal to be considered for inclusion in the Company’s Proxy Statement and form of proxy relating to its 2025 Annual Meeting of Shareholders. Nothing in this paragraph shall be deemed to require the Company to include any shareholder proposal which does not meet all the requirements for such inclusion established by Rule 14a-8 of the Exchange Act.

Any shareholder proposal must also meet all other requirements contained in our Bylaws, including the advance notice provisions. For other shareholder proposals (including director nominations) to be timely (but not considered for inclusion in the proxy statement for the 2025 Annual Meeting of Shareholders), a shareholder’s notice must be received by the Secretary of the Company between February 3, 2025 and March 5, 2025 and the proposal and the shareholder must comply with Rule 14a-4 under the Exchange Act. In the event that a shareholder proposal intended to be presented for action at the next annual meeting does not comply with the aforementioned requirements, the shareholder proposal will be excluded from the annual meeting.

Any shareholder proposal must also meet all other requirements contained in our Bylaws.

Rule 10b5-1 Trading Plans

During the three months ended September 30, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non Rule 10b5-1 trading arrangement” as each term is defined in Item 408(a) of Regulation S-K.





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Item 6.Exhibits.
No. Exhibit
3.1 
3.2 
3.3
*31.1 
*31.2 
*32.1 
*32.2 
101.INS 
The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
101.SCH XBRL Taxonomy Extension Schema 
101.CAL XBRL Taxonomy Extension Calculation Linkbase 
101.DEF XBRL Taxonomy Extension Definition Linkbase 
101.LAB XBRL Taxonomy Extension Label Linkbase 
101.PRE XBRL Taxonomy Extension Presentation Linkbase 
104Cover Page Interactive File (formatted in Inline XBRL and contained in Exhibit 101).

* Filed herewith
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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

  Forward Air Corporation
November 8, 2024By: /s/ Shawn Stewart
  Shawn Stewart
Chief Executive Officer
(Principal Executive Officer and Duly Authorized Officer)

  Forward Air Corporation
November 8, 2024By: /s/ Jamie Pierson
  Jamie Pierson
Chief Financial Officer
(Principal Financial Officer and Duly Authorized Officer)



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