These issues have resulted in the decimation of the Company’s margin and return profile. ![]() Reasons for Underperformance Remain Straight-forward.We believe continued underperformance at Forward Air is directly related to the combination of pursuing an ineffective capital allocation strategy focused on acquisitions of margin- and return-dilutive service offerings as well as poor operating discipline.Further, 1Q21 guidance at the mid-point implies ~25% increase in revenue (~$65M increase) over the two-year time period between 1Q19 and 1Q21 but only a ~5% increase in diluted EPS (~$0.04 increase), despite deploying ~$100 million on acquisitions during the time period. These results conclude a disastrous FY 2020 for the core business, which experienced substantial operating deleverage resulting in EBIT per ton/shipment declining ~35% from 2019 levels. The Company’s Core Expedited LTL operating ratio (“OR”) deteriorated ~200 bps year-over-year in the quarter. More troubling to us than the inaccuracies in its characterization of events is the fact that the Company seemingly fails to appreciate that any acceptable settlement would have to address the Company’s performance issues and the need to strengthen senior management.Īncora believes the following key items will resonate with shareholders as they evaluate the situation, each of which is discussed in greater detail in the accompanying letter included with this release. Niswonger – will help Forward Air return to producing best-in-class results from a margin and return perspective.Īncora remains open to reaching an amicable resolution with the Company however, we feel compelled to set the record straight following the Company’s mischaracterization of our settlement discussions. Ancora strongly believes that if elected, our four director nominees – James Chadwick, Andrew C. We believe recent results further confirm our stated view that a revamped strategy underpinned by a refreshed Board and strengthened management team is paramount to enhancing value for all shareholders. ![]() In our view, there continues to be a clear lack of operating discipline at the management level and ineffective oversight at the Board level. (together with its affiliates, “Ancora” or “we”), a significant shareholder of Forward Air Corporation (“Forward Air” or the “Company”) (NASDAQ:FWRD), which together with the other participants in its solicitation beneficially owns approximately 6.3% of the Company’s outstanding shares, today issued an open letter to shareholders commenting on the Company’s disappointing fourth quarter 2020 earnings report and addressing certain misleading statements made by the Company in its Februpress release.Īncora remains highly disappointed by the operating performance at Forward Air as reported results for 4Q20 and FY 2020, as well as guidance for 1Q21, can be characterized as substandard at best. ![]() CLEVELAND-( BUSINESS WIRE)-Ancora Holdings, Inc.
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