Greeneville, TN-based Forward Air Corp (NASDAQ:FWRD) disclosed today the upcoming departure of Chief People Officer Kyle Mitchin, effective November 22, 2024. The company stated that Mitchin's exit is classified as a termination without cause, aligning with the terms of an "Involuntary Termination" under the company's Severance Plan.
Mitchin, who has been with the company since May 27, 2022, will receive a severance package as per the Executive Severance and Change in Control Plan, provided he agrees to and does not revoke a general release of claims. The compensation includes a Severance Payment, Healthcare Assistance Payment, and up to $20,000 for outplacement services. Additionally, Mitchin will be paid $100,000 in installments following the terms of the release and waiver.
The severance agreement also enforces restrictive covenants that Mitchin agreed to, which include a perpetual obligation to maintain confidentiality of company information and trade secrets. He is also subject to non-competition, non-solicitation of employees and customers, and non-disparagement clauses for 18 months post-departure.
In other recent news, Forward Air Corporation reported a substantial increase in its Q3 2024 revenue, reaching $656 million, a 92% increase from the previous year, largely driven by the acquisition of Omni. However, the company's Expedited Freight segment underperformed due to a volume-focused pricing strategy. To address this, Eric Brandt, a seasoned logistics industry professional, has been appointed as the new Chief Commercial Officer, with a mandate to refine the company's sales strategy starting January 2025.
The integration of Omni is on track, with Forward Air expecting $75 million in annualized savings by early 2025. As part of their ongoing expansion, the company opened a new warehouse in Miami, enhancing its logistics capabilities in Latin America. Despite these positive developments, Forward Air revised its full-year 2024 EBITDA guidance downward to $300-$310 million, citing a subdued macroeconomic environment.
Changes in the company's board have also been announced, with Jerome Lorrain joining and Craig Carlock stepping down. These are among the recent developments at Forward Air Corporation. The company's financial stability is reflected in its improved liquidity, which stands at $460 million, and manageable net debt levels, indicating its preparedness to weather any economic uncertainties.
InvestingPro Insights
Forward Air Corp's recent organizational change comes amid a challenging financial landscape for the company. According to InvestingPro data, Forward Air is currently operating with a significant debt burden and may have trouble making interest payments on its debt. This financial strain is reflected in the company's negative earnings per share of -$29.19 for the last twelve months as of Q3 2024.
Despite these challenges, InvestingPro Tips indicate that analysts anticipate sales growth in the current year, with revenue growing by an impressive 68.69% in the last twelve months. This growth potential is further supported by the fact that two analysts have revised their earnings upwards for the upcoming period.
Investors should note that Forward Air has maintained dividend payments for 19 consecutive years, currently offering a dividend yield of 2.61%. This commitment to shareholder returns is particularly noteworthy given the company's recent financial performance.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Forward Air Corp, providing deeper insights into the company's financial health and market position.
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