CHATTANOOGA, Tenn., Oct. 23, 2024 (GLOBE NEWSWIRE) -- Covenant Logistics Group, Inc. (NYSE: CVLG) ("Covenant” or the "Company”) announced today financial and operating results for the third quarter ended September 30, 2024. The Company's conference call to discuss the quarter will be held at 10:00 A.M. Eastern Time on Thursday, October 24, 2024.
Chairman and Chief Executive Officer, David R. Parker, commented: "We are pleased to report third quarter earnings of $0.94 per diluted share and non-GAAP adjusted earnings of $1.09 per diluted share.
"Highlights of our third quarter's results include year over year freight revenue growth of 2.1%, operating income growth of 7.2%, and non-GAAP adjusted operating income growth of 8.3%. We were also pleased with a $36.6 million sequential reduction of our net indebtedness, composed of total debt and finance lease obligations, net of cash ("net indebtedness”), while improving the average age of our fleet by one month. Our core business continues to perform well despite the prolonged general freight market down cycle, as a result of capitalizing on new value-added commercial opportunities where available, allocating equipment investments toward more profitable operations, and controlling costs.
"Our 49% equity method investment with Transport Enterprise Leasing ("TEL”) contributed pre-tax net income of $4.0 million, or $0.22 per share, compared to $5.3 million, or $0.29 per share, in the 2023 quarter. The decrease in pre-tax net income for TEL was primarily a result of deterioration in the equipment market, suppressing gains on sale of used equipment, and increased interest expense associated with higher interest rates on equipment related debt.”
A summary of our third quarter financial performance:
| Three Months Ended
September 30, | Nine Months Ended September 30, | |||||||||||||||
| ($000s, except per share information) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Total Revenue | $ | 287,885 | $ | 288,721 | $ | 854,145 | $ | 829,588 | ||||||||
| Freight Revenue, Excludes Fuel Surcharge | $ | 258,599 | $ | 253,377 | $ | 762,796 | $ | 730,503 | ||||||||
| Operating Income | $ | 16,235 | $ | 15,141 | $ | 36,147 | $ | 44,556 | ||||||||
| Adjusted Operating Income (1) | $ | 19,327 | $ | 17,854 | $ | 52,797 | $ | 46,714 | ||||||||
| Operating Ratio | 94.4 | % | 94.8 | % | 95.8 | % | 94.6 | % | ||||||||
| Adjusted Operating Ratio (1) | 92.5 | % | 93.0 | % | 93.1 | % | 93.6 | % | ||||||||
| Net Income | $ | 13,033 | $ | 13,506 | $ | 29,202 | $ | 42,434 | ||||||||
| Adjusted Net Income (1) | $ | 15,224 | $ | 15,388 | $ | 41,297 | $ | 42,698 | ||||||||
| Earnings per Diluted Share | $ | 0.94 | $ | 0.99 | $ | 2.11 | $ | 3.09 | ||||||||
| Adjusted Earnings per Diluted Share (1) | $ | 1.09 | $ | 1.13 | $ | 2.98 | $ | 3.12 | ||||||||
| (1) Represents non-GAAP measures. | ||||||||||||||||
| Three Months Ended
September 30, | Nine Months Ended
September 30, | |||||||||||||||
| ($000s, except statistical information) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Combined Truckload | ||||||||||||||||
| Total Revenue | $ | 199,029 | $ | 193,661 | $ | 590,457 | $ | 560,068 | ||||||||
| Freight Revenue, excludes Fuel Surcharge | $ | 170,039 | $ | 158,625 | $ | 500,005 | $ | 461,877 | ||||||||
| Operating Income | $ | 11,896 | $ | 10,498 | $ | 22,201 | $ | 35,979 | ||||||||
| Adj. Operating Income (1) | $ | 14,464 | $ | 12,840 | $ | 37,281 | $ | 37,009 | ||||||||
| Operating Ratio | 94.0 | % | 94.6 | % | 96.2 | % | 93.6 | % | ||||||||
| Adj. Operating Ratio (1) | 91.5 | % | 91.9 | % | 92.5 | % | 92.0 | % | ||||||||
| Average Freight Revenue per Tractor per Week | $ | 5,637 | $ | 5,677 | $ | 5,672 | $ | 5,618 | ||||||||
| Average Freight Revenue per Total Mile | $ | 2.41 | $ | 2.33 | $ | 2.38 | $ | 2.34 | ||||||||
| Average Miles per Tractor per Period | 30,733 | 32,076 | 93,196 | 93,480 | ||||||||||||
| Weighted Average Tractors for Period | 2,295 | 2,126 | 2,252 | 2,108 | ||||||||||||
| Expedited | ||||||||||||||||
| Total Revenue | $ | 104,314 | $ | 113,419 | $ | 317,795 | $ | 318,388 | ||||||||
| Freight Revenue, excludes Fuel Surcharge | $ | 87,363 | $ | 91,689 | $ | 262,881 | $ | 259,316 | ||||||||
| Operating Income | $ | 6,467 | $ | 7,522 | $ | 16,019 | $ | 22,613 | ||||||||
| Adj. Operating Income (1) | $ | 7,000 | $ | 8,549 | $ | 17,619 | $ | 23,883 | ||||||||
| Operating Ratio | 93.8 | % | 93.4 | % | 95.0 | % | 92.9 | % | ||||||||
| Adj. Operating Ratio (1) | 92.0 | % | 90.7 | % | 93.3 | % | 90.8 | % | ||||||||
| Average Freight Revenue per Tractor per Week | $ | 7,452 | $ | 7,830 | $ | 7,454 | $ | 7,669 | ||||||||
| Average Freight Revenue per Total Mile | $ | 2.09 | $ | 2.12 | $ | 2.08 | $ | 2.14 | ||||||||
| Average Miles per Tractor per Period | 46,796 | 48,586 | 140,191 | 139,739 | ||||||||||||
| Weighted Average Tractors for Period | 892 | 891 | 901 | 867 | ||||||||||||
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