GREENEVILLE, TN – Forward Air (NASDAQ:FWRD) Corporation (NASDAQ:FWRD), a company specializing in the arrangement of transportation of freight and cargo, disclosed today the departure of Mr. Chris Ruble, its President and Chief Operating Officer. The announcement comes during a challenging period for the company, with InvestingPro data showing significant stock price volatility over the past week and ongoing operational challenges, including a substantial debt burden.
According to the company's filing with the Securities and Exchange Commission, Mr. Ruble's exit is effective immediately and is classified as an "Involuntary Termination" under the company's Executive Severance and Change in Control Plan.
The termination agreement entitles Mr. Ruble to certain severance benefits, provided he signs and does not revoke a general release of claims. These benefits include a severance payment, healthcare assistance, and up to $20,000 allocated for outplacement services.
Mr. Ruble's departure also triggers the enforcement of restrictive covenants he agreed to on May 27, 2022. These covenants include a perpetual obligation to maintain the confidentiality of company information and trade secrets, as well as 18-month restrictions on competition, solicitation of employees and customers, and non-disparagement following his separation from the company.
The specifics of Mr. Ruble's severance and restrictive covenants are set to be further detailed in Forward Air's Annual Report on Form 10-K for the year ending December 31, 2024. This announcement is based on a press release statement and follows the company's procedural requirements as per the Securities Exchange Act of 1934.
Forward Air has not named a successor for Mr. Ruble as of this report. While analysts anticipate sales growth for the current year, InvestingPro indicates expectations of declining net income, highlighting the challenges ahead for the new leadership. The company's business address is located at 1915 Snapps Ferry Road, Building N, Greeneville, TN, with the central index key number 0000912728. For deeper insights into Forward Air's financial health and future prospects, investors can access comprehensive analysis and 11 additional ProTips through InvestingPro's detailed research reports.
In other recent news, Forward Air Corporation announced robust Q3 2024 revenue growth, reaching $656 million, a 92% increase from the previous year, largely attributed to 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 sales strategy starting January 2025.
The integration of Omni is progressing as planned, with the company expecting $75 million in annualized savings by early 2025. As part of their ongoing expansion, Forward Air opened a new warehouse in Miami, enhancing its logistics capabilities in Latin America. Despite these developments, Forward Air revised its full-year 2024 EBITDA guidance downward to $300-$310 million, citing a subdued macroeconomic environment.
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