Forward Air

Former Forward Air CEO Tom Schmitt joins Nikola

Zero-emissions truck manufacturer Nikola Corp. said it has hired former Forward Air CEO Tom Schmitt as its chief commercial officer. Schmitt’s February departure from Forward Air came shortly after the company closed on an ill-conceived merger with Omni Logistics.

Schmitt engineered the transaction, which pitted Forward as both capacity provider and competitor to some of its freight forwarding customers. The acquisition, which shareholders alleged subverted their consent, endured months of...

https://www.freightwaves.com/news/former-forward-air-ceo-tom-schmitt-joins-nikola

Activist investor urges Forward Air to go private

Activist investor Ancora Holdings Group is calling on Forward Air’s board to begin a strategic review and to engage with potential buyers. In an open letter to the company’s board, the group cited “overwhelmingly negative” total shareholder returns and “significant underperformance” in what it described as a “lost decade” for the expedited trucking company.

The Tuesday letter said the company could better cure its balance sheet and operational issues as a private entity, likely under the...

https://www.freightwaves.com/news/activist-investor-urges-forward-air-to-go-private

Forward Air investor flips to activist, may explore ‘strategic alternatives’

Private equity firm Clearlake Capital, which holds a 13.8% equity stake in Forward Air, said it may approach the company to discuss “strategic alternatives.” Last week, the investment firm changed its filing form with the Securities and Exchange Commission from passive interest to a version used by firms seeking to effect change.

The Santa Monica, California-based firm holds 3,825,000 of Forward’s (NASDAQ: FWRD) roughly 28 million outstanding shares, according to the filing. The group now joins...

https://www.freightwaves.com/news/forward-air-investor-flips-to-activist-may-explore-strategic-alternatives

Forward Air focuses on integration, revenue opportunities after Omni merger

Forward Air said it remains focused on the integration of Omni Logistics and the revenue synergies it can achieve as it is now operating a platform that includes freight forwarding and contract logistics along with its legacy expedited less-than-truckload and intermodal offerings.

The Greeneville, Tennessee-based company closed on the merger with Omni in January following a lengthy courtship as the deal was contested by shareholders and Forward itself searched for an exit path.

On its...

https://www.freightwaves.com/news/forward-air-focuses-on-integration-revenue-opportunities-after-omni-merger

Forward Air adds second former Yellow executive to financial team

Forward Air announced Wednesday that it has added another former Yellow Corp. employee to its financial leadership team. It also said that recently named interim Chief Financial Officer Jamie Pierson will continue in that role on a permanent basis.

James Faught has joined the Greeneville, Tennessee-based less-than-truckload provider effective Wednesday as chief accounting officer. Faught reunites with Pierson, who joined Forward (NASDAQ: FWRD) in May.

Pierson twice served as Yellow’s (OTC: YELLQ)...

https://www.freightwaves.com/news/forward-air-adds-second-former-yellow-executive-to-financial-team

Forward Air’s recalculated Q1 shows improved leverage ratio

Forward Air issued an update to first-quarter results, showing more breathing room to an upcoming debt covenant.

The company said “after performing a thorough assessment of all available addbacks permitted under the credit agreement,” its adjusted earnings before interest, taxes, depreciation and amortization increased from $300 million to $324 million for the 12-month period ended March 31. The new EBITDA number placed its net debt leverage ratio at 5.1 times versus the 5.5 times previously...

https://www.freightwaves.com/news/forward-airs-recalculated-q1-shows-improved-leverage-ratio

Forward Air cuts workforce as it navigates post-merger landscape

The dust continues to settle from numerous layoffs at Forward Air last week, multiple people familiar with the matter told FreightWaves. The sources said the job cuts range from clerical positions to the C-suite and include many sales and technology roles.

A representative for Forward was unable to confirm the total number of positions impacted but acknowledged the layoffs on Monday.

“As part of our previously announced efforts to improve Forward’s performance, we’ve made the difficult decision...

https://www.freightwaves.com/news/forward-air-cuts-workforce-as-it-navigates-post-merger-landscape

S&P cuts Forward Air debt rating again; 3 key agencies now at same low level

Just four months after it downgraded Forward Air’s debt rating, S&P Global Ratings has done it again.

Two downgrades in four months is viewed as unusually rapid and reflects not only the weak freight market but burdens unique to the less-than-truckload carrier.

Forward was cut to B+ by S&P Global in February. The latest move takes it down an additional notch to a B, which is five steps into non-investment-grade territory. There are 12 non-investment-grade ratings, with D for default at the...

https://www.freightwaves.com/news/sp-cuts-forward-air-debt-rating-again-3-key-agencies-now-at-same-low-level

Forward Air’s board rewarded for destroying shareholder value

By Satish Jindel

The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.

In 2023, Forward Air’s (NASDAQ: FWRD) stock traded at a high of $121 per share. Then the company announced an agreement to acquire Omni Logistics.

The press release had then-Chairman, President and CEO Tom Schmitt quoted as saying, “The combination of Omni with Forward creates a company positioned to achieve the full potential of our LTL business,...

https://www.freightwaves.com/news/forward-airs-board-rewarded-for-destroying-shareholder-value

Forward Air shareholders OK conversion of Omni’s shares to voting stock

Forward Air’s shareholders have approved the conversion of nonvoting preferred shares that were granted to Omni Logistics’ stakeholders as part of a merger between the two companies. That shareholder group, which mainly consists of Omni’s private equity backers, will now hold roughly 14 million shares, or 35% of the voting common equity.

A Tuesday filing with the Securities and Exchange Commission also showed that Forward’s (NASDAQ: FWRD) shareholders elected the 12-person slate of director...

https://www.freightwaves.com/news/forward-air-shareholders-ok-conversion-of-omnis-shares-to-voting-stock

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