GREENEVILLE, Tenn. — Forward Air Corporation (FAC) has announced updates to certain previously released non-GAAP financial measures for the twelve-month period that ended March 31, to include adjustments to the previously released non-GAAP financial measures.
“We wanted to provide this adjustment to our first quarter reporting as part of the new leadership’s commitment to increased transparency,” said Chief Executive Officer Shawn Stewart.
When FAC released first quarter 2024 earnings on May 8, FAC made available to investors a conference call presentation to provide information intended to provide visibility into the FAC’s calculation of “Consolidated EBITDA” under its existing credit agreement for the last twelve months which ended March 31.
In the presentation, FAC calculated Consolidated EBITDA of $300 million, which included several one-time costs and pro forma adjustments related to the acquisition of Omni Logistics (Omni). After performing a thorough assessment of all available addbacks permitted under the credit agreement, FAC has revised its calculation of Consolidated EBITDA for that period approximately $324 million.
As a result, FAC’s revised Consolidated First Lien Net Leverage Ratio would have been 5.1x for the quarter ending March 31, compared to 5.5x as reported on May 8. Beginning with the fiscal quarter ending June 30, FAC is required to comply with a financial performance covenant under the credit agreement that sets a maximum Consolidated First Lien Net Leverage Ratio of 6.0x. In addition, it has taken further cost reduction actions that it believes will add approximately $20 million of incremental Consolidated EBITDA to FAC’s second quarter results.
“We are aggressively taking action to improve profitability, maximize synergy capture and drive our leadership in global supply chain and domestic transportation services so that we can create value for our customers, employees and shareholders,” said Stewart. “We are focused on execution and continue to be optimistic about the opportunities ahead and our long-term growth trajectory. We look forward to sharing more details on our progress on our second quarter earnings conference call.”
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
