Nevada
|
000-24960
|
88-0320154
|
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
400 Birmingham Hwy, Chattanooga, TN
|
37419 |
(Address of principal executive offices)
|
(Zip Code)
|
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
|
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
|
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
|
|
|
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
$0.01 Par Value Class A common stock |
CVLG
|
NASDAQ |
Emerging growth company ☐
|
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
|
Item 2.02
|
Results of Operations and Financial Condition.
|
|
On July 26, 2023, Covenant Logistics
Group, Inc., a Nevada corporation (the “Company”), issued a press release announcing its financial and operating results for the quarter ended June 30, 2023. A copy of the press release is attached to this report as Exhibit
99.1.
|
||
Item 9.01
|
Financial Statements and Exhibits.
|
|
(d)
|
Exhibits.
|
|
EXHIBIT
NUMBER
|
EXHIBIT DESCRIPTION
|
|
Covenant Logistics Group, Inc. press release dated July 26, 2023, announcing its financial and operating results for the quarter
ended June 30, 2023.
|
||
104
|
Cover Page Interactive Data File.
|
|
The information contained in Items 2.02 and 9.01 of this report and the exhibit hereto shall not be deemed “filed” for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as
shall be expressly set forth by specific reference in such a filing.
|
||
The information in Items 2.02,and
9.01 of this report and the exhibit hereto may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and such statements are subject to the
safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements are made based on the
current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results or events may differ from those anticipated by forward-looking statements. Please refer to
the italicized paragraph at the end of the attached press release and various disclosures by the Company in its press releases, stockholder reports, and filings with the Securities and Exchange Commission for information
concerning risks, uncertainties, and other factors that may affect future results.
|
COVENANT LOGISTICS GROUP, INC.
|
||
(Registrant)
|
||
Date: July 26, 2023
|
By:
|
/s/ James S. Grant
|
James S. Grant
|
||
Executive Vice President and Chief Financial Officer
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
($000s, except per share information)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Total Revenue
|
$
|
274,016
|
$
|
317,377
|
$
|
540,867
|
$
|
608,962
|
||||||||
Freight Revenue, Excludes Fuel Surcharge
|
$
|
243,704
|
$
|
266,856
|
$
|
477,126
|
$
|
524,470
|
||||||||
Operating Income
|
$
|
11,783
|
$
|
26,873
|
$
|
29,415
|
$
|
50,720
|
||||||||
Adjusted Operating Income (1)
|
$
|
16,235
|
$
|
28,349
|
$
|
28,860
|
$
|
52,784
|
||||||||
Operating Ratio
|
95.7
|
%
|
91.5
|
%
|
94.6
|
%
|
91.7
|
%
|
||||||||
Adjusted Operating Ratio (1)
|
93.3
|
%
|
89.4
|
%
|
94.0
|
%
|
89.9
|
%
|
||||||||
Net Income
|
$
|
12,293
|
$
|
24,526
|
$
|
28,928
|
$
|
46,693
|
||||||||
Adjusted Net Income (1)
|
$
|
14,443
|
$
|
25,617
|
$
|
27,208
|
$
|
48,216
|
||||||||
Earnings per Diluted Share
|
$
|
0.91
|
$
|
1.56
|
$
|
2.10
|
$
|
2.86
|
||||||||
Adjusted Earnings per Diluted Share (1)
|
$
|
1.07
|
$
|
1.63
|
$
|
2.00
|
$
|
2.96
|
(1)
|
Represents non-GAAP measures.
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
($000s, except statistical information)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Combined Truckload
|
||||||||||||||||
Total Revenue
|
$
|
185,267
|
$
|
218,410
|
$
|
366,407
|
$
|
406,154
|
||||||||
Freight Revenue, excludes Fuel Surcharge
|
$
|
155,234
|
$
|
168,216
|
$
|
303,252
|
$
|
322,240
|
||||||||
Operating Income
|
$
|
9,058
|
$
|
17,491
|
$
|
25,481
|
$
|
29,464
|
||||||||
Adj. Operating Income (1)
|
$
|
13,047
|
$
|
18,673
|
$
|
24,169
|
$
|
30,939
|
||||||||
Operating Ratio
|
95.1
|
%
|
92.0
|
%
|
93.0
|
%
|
92.7
|
%
|
||||||||
Adj. Operating Ratio (1)
|
91.6
|
%
|
88.9
|
%
|
92.0
|
%
|
90.4
|
%
|
||||||||
Average Freight Revenue per Tractor per Week
|
$
|
5,678
|
$
|
5,457
|
$
|
5,589
|
$
|
5,337
|
||||||||
Average Freight Revenue per Total Mile
|
$
|
2.32
|
$
|
2.45
|
$
|
2.35
|
$
|
2.41
|
||||||||
Average Miles per Tractor per Period
|
31,775
|
28,956
|
61,407
|
57,183
|
||||||||||||
Weighted Average Tractors for Period
|
2,103
|
2,371
|
2,099
|
2,335
|
||||||||||||
|
||||||||||||||||
Expedited
|
||||||||||||||||
Total Revenue
|
$
|
104,073
|
$
|
121,643
|
$
|
204,969
|
$
|
220,440
|
||||||||
Freight Revenue, excludes Fuel Surcharge
|
$
|
85,969
|
$
|
92,719
|
$
|
167,627
|
$
|
173,366
|
||||||||
Operating Income
|
$
|
5,815
|
$
|
14,610
|
$
|
15,091
|
$
|
23,941
|
||||||||
Adj. Operating Income (1)
|
$
|
7,953
|
$
|
15,499
|
$
|
15,334
|
$
|
24,830
|
||||||||
Operating Ratio
|
94.4
|
%
|
88.0
|
%
|
92.6
|
%
|
89.1
|
%
|
||||||||
Adj. Operating Ratio (1)
|
90.7
|
%
|
83.3
|
%
|
90.9
|
%
|
85.7
|
%
|
||||||||
Average Freight Revenue per Tractor per Week
|
$
|
7,734
|
$
|
7,872
|
$
|
7,587
|
$
|
7,567
|
||||||||
Average Freight Revenue per Total Mile
|
$
|
2.10
|
$
|
2.34
|
$
|
2.15
|
$
|
2.29
|
||||||||
Average Miles per Tractor per Period
|
47,840
|
43,702
|
91,122
|
85,368
|
||||||||||||
Weighted Average Tractors for Period
|
855
|
906
|
855
|
886
|
||||||||||||
|
||||||||||||||||
Dedicated
|
||||||||||||||||
Total Revenue
|
$
|
81,194
|
$
|
96,767
|
$
|
161,438
|
$
|
185,714
|
||||||||
Freight Revenue, excludes Fuel Surcharge
|
$
|
69,265
|
$
|
75,497
|
$
|
135,625
|
$
|
148,874
|
||||||||
Operating Income (Loss)
|
$
|
3,243
|
$
|
2,881
|
$
|
10,390
|
$
|
5,523
|
||||||||
Adj. Operating Income (1)
|
$
|
5,094
|
$
|
3,174
|
$
|
8,835
|
$
|
6,109
|
||||||||
Operating Ratio
|
96.0
|
%
|
97.0
|
%
|
93.6
|
%
|
97.0
|
%
|
||||||||
Adj. Operating Ratio (1)
|
92.6
|
%
|
95.8
|
%
|
93.5
|
%
|
95.9
|
%
|
||||||||
Average Freight Revenue per Tractor per Week
|
$
|
4,269
|
$
|
3,964
|
$
|
4,216
|
$
|
3,973
|
||||||||
Average Freight Revenue per Total Mile
|
$
|
2.67
|
$
|
2.60
|
$
|
2.66
|
$
|
2.57
|
||||||||
Average Miles per Tractor per Period
|
20,770
|
19,837
|
40,996
|
39,949
|
||||||||||||
Weighted Average Tractors for Period
|
1,248
|
1,465
|
1,244
|
1,449
|
(1)
|
Represents non-GAAP measures.
|
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||
($000s)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Freight Revenue
|
$
|
63,281
|
$
|
80,281
|
$
|
124,155
|
$
|
166,432
|
||||||||
Operating Income
|
$
|
1,945
|
$
|
8,627
|
$
|
3,163
|
$
|
19,458
|
||||||||
Adj. Operating Income (1)
|
$
|
2,070
|
$
|
8,662
|
$
|
3,323
|
$
|
19,529
|
||||||||
Operating Ratio
|
96.9
|
%
|
89.3
|
%
|
97.5
|
%
|
88.3
|
%
|
||||||||
Adj. Operating Ratio (1)
|
96.7
|
%
|
89.2
|
%
|
97.3
|
%
|
88.3
|
%
|
(1)
|
Represents non-GAAP measures.
|
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||
($000s)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Freight Revenue
|
$
|
25,189
|
$
|
18,359
|
$
|
49,719
|
$
|
35,798
|
||||||||
Operating Income
|
$
|
780
|
$
|
754
|
$
|
771
|
$
|
1,798
|
||||||||
Adj. Operating Income (1)
|
$
|
1,118
|
$
|
1,013
|
$
|
1,368
|
$
|
2,316
|
||||||||
Operating Ratio
|
96.9
|
%
|
96.0
|
%
|
98.5
|
%
|
95.1
|
%
|
||||||||
Adj. Operating Ratio (1)
|
95.6
|
%
|
94.5
|
%
|
97.2
|
%
|
93.5
|
%
|
(1)
|
Represents non-GAAP measures.
|
Covenant Logistics Group, Inc.
|
||||||||||||||||||||||||
Key Financial and Operating Statistics
|
||||||||||||||||||||||||
|
Income Statement Data
|
|||||||||||||||||||||||
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||
($s in 000s, except per share data)
|
2023
|
2022
|
% Change
|
2023
|
2022
|
% Change
|
||||||||||||||||||
Freight revenue
|
$
|
243,704
|
$
|
266,856
|
(8.7
|
%)
|
$
|
477,126
|
$
|
524,470
|
(9.0
|
%)
|
||||||||||||
Fuel surcharge revenue
|
30,312
|
50,521
|
(40.0
|
%)
|
63,741
|
84,492
|
(24.6
|
%)
|
||||||||||||||||
Total revenue
|
$
|
274,016
|
$
|
317,377
|
(13.7
|
%)
|
$
|
540,867
|
$
|
608,962
|
(11.2
|
%)
|
||||||||||||
Operating expenses:
|
||||||||||||||||||||||||
Salaries, wages, and related expenses
|
101,280
|
101,103
|
200,439
|
196,441
|
||||||||||||||||||||
Fuel expense
|
31,428
|
48,484
|
65,519
|
83,986
|
||||||||||||||||||||
Operations and maintenance
|
16,235
|
19,845
|
33,344
|
37,781
|
||||||||||||||||||||
Revenue equipment rentals and purchased transportation
|
67,983
|
81,677
|
130,999
|
165,338
|
||||||||||||||||||||
Operating taxes and licenses
|
3,317
|
2,740
|
6,780
|
5,480
|
||||||||||||||||||||
Insurance and claims
|
11,043
|
13,627
|
23,736
|
22,806
|
||||||||||||||||||||
Communications and utilities
|
1,215
|
1,214
|
2,499
|
2,384
|
||||||||||||||||||||
General supplies and expenses
|
12,775
|
8,281
|
26,395
|
17,215
|
||||||||||||||||||||
Depreciation and amortization
|
18,944
|
13,932
|
33,519
|
27,377
|
||||||||||||||||||||
Gain on disposition of property and equipment, net
|
(1,987
|
)
|
(399
|
)
|
(11,778
|
)
|
(566
|
)
|
||||||||||||||||
Total operating expenses
|
262,233
|
290,504
|
511,452
|
558,242
|
||||||||||||||||||||
Operating income
|
11,783
|
26,873
|
29,415
|
50,720
|
||||||||||||||||||||
Interest expense, net
|
2,124
|
766
|
2,893
|
1,321
|
||||||||||||||||||||
Income from equity method investment
|
(5,381
|
)
|
(7,076
|
)
|
(11,324
|
)
|
(13,861
|
)
|
||||||||||||||||
Income from continuing operations before income taxes
|
15,040
|
33,183
|
37,846
|
63,260
|
||||||||||||||||||||
Income tax expense
|
2,897
|
8,657
|
9,218
|
16,567
|
||||||||||||||||||||
Income from continuing operations
|
12,143
|
24,526
|
28,628
|
46,693
|
||||||||||||||||||||
Income from discontinued operations, net of tax
|
150
|
-
|
300
|
-
|
||||||||||||||||||||
Net income
|
$
|
12,293
|
$
|
24,526
|
$
|
28,928
|
$
|
46,693
|
||||||||||||||||
Basic earnings per share
|
||||||||||||||||||||||||
Income from continuing operations
|
$
|
0.94
|
$
|
1.58
|
$
|
2.18
|
$
|
2.91
|
||||||||||||||||
Income from discontinued operations
|
$
|
0.01
|
$
|
-
|
$
|
0.02
|
$
|
-
|
||||||||||||||||
Net income
|
$
|
0.95
|
$
|
1.58
|
$
|
2.20
|
$
|
2.91
|
||||||||||||||||
Diluted earnings per share
|
||||||||||||||||||||||||
Income from continuing operations
|
$
|
0.90
|
$
|
1.56
|
$
|
2.08
|
$
|
2.86
|
||||||||||||||||
Income from discontinued operations
|
$
|
0.01
|
$
|
-
|
$
|
0.02
|
$
|
-
|
||||||||||||||||
Net income
|
$
|
0.91
|
$
|
1.56
|
$
|
2.10
|
$
|
2.86
|
||||||||||||||||
Basic weighted average shares outstanding (000s)
|
12,939
|
15,514
|
13,150
|
16,058
|
||||||||||||||||||||
Diluted weighted average shares outstanding (000s)
|
13,574
|
15,761
|
13,766
|
16,321
|
|
Segment Freight Revenues
|
|||||||||||||||||||||||
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||
($s in 000's)
|
2023
|
2022
|
% Change
|
2023
|
2022
|
% Change
|
||||||||||||||||||
Expedited - Truckload
|
$
|
85,969
|
$
|
92,719
|
(7.3
|
%)
|
$
|
167,627
|
$
|
173,366
|
(3.3
|
%)
|
||||||||||||
Dedicated - Truckload
|
69,265
|
75,497
|
(8.3
|
%)
|
135,625
|
148,874
|
(8.9
|
%)
|
||||||||||||||||
Combined Truckload
|
155,234
|
168,216
|
(7.7
|
%)
|
303,252
|
322,240
|
(5.9
|
%)
|
||||||||||||||||
Managed Freight
|
63,281
|
80,281
|
(21.2
|
%)
|
124,155
|
166,432
|
(25.4
|
%)
|
||||||||||||||||
Warehousing
|
25,189
|
18,359
|
37.2
|
%
|
49,719
|
35,798
|
38.9
|
%
|
||||||||||||||||
Consolidated Freight Revenue
|
$
|
243,704
|
$
|
266,856
|
(8.7
|
%)
|
$
|
477,126
|
$
|
524,470
|
(9.0
|
%)
|
|
Truckload Operating Statistics
|
|||||||||||||||||||||||
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
2023
|
2022
|
% Change
|
2023
|
2022
|
% Change
|
||||||||||||||||||
Average freight revenue per loaded mile
|
$
|
2.64
|
$
|
2.77
|
(4.7
|
%)
|
$
|
2.67
|
$
|
2.73
|
(2.2
|
%)
|
||||||||||||
Average freight revenue per total mile
|
$
|
2.32
|
$
|
2.45
|
(5.3
|
%)
|
$
|
2.35
|
$
|
2.41
|
(2.5
|
%)
|
||||||||||||
Average freight revenue per tractor per week
|
$
|
5,678
|
$
|
5,457
|
4.0
|
%
|
$
|
5,589
|
$
|
5,337
|
4.7
|
%
|
||||||||||||
Average miles per tractor per period
|
31,775
|
28,956
|
9.7
|
%
|
61,407
|
57,183
|
7.4
|
%
|
||||||||||||||||
Weighted avg. tractors for period
|
2,103
|
2,371
|
(11.3
|
%)
|
2,099
|
2,335
|
(10.1
|
%)
|
||||||||||||||||
Tractors at end of period
|
2,132
|
2,358
|
(9.6
|
%)
|
2,132
|
2,358
|
(9.6
|
%
|
||||||||||||||||
Trailers at end of period
|
5,855
|
5,436
|
7.7
|
%
|
5,855
|
5,436
|
7.7
|
%
|
|
|
Selected Balance Sheet Data
|
|
|||||
($s in '000's, except per share data)
|
|
6/30/2023
|
|
|
12/31/2022
|
|
||
Total assets
|
|
$
|
871,819
|
|
|
$
|
796,545
|
|
Total stockholders' equity
|
|
$
|
379,664
|
|
|
$
|
377,128
|
|
Total indebtedness, comprised of total debt and finance leases, net of cash
|
|
$
|
187,227
|
|
|
$
|
46,356
|
|
Net Indebtedness to Capitalization Ratio
|
|
|
33.0
|
%
|
|
|
10.9
|
%
|
Leverage Ratio(1)
|
|
|
1.68
|
|
|
|
0.34
|
|
Tangible book value per end-of-quarter basic share
|
|
$
|
16.42
|
|
|
$
|
19.97
|
|
(1)
|
Leverage Ratio is calculated as ending total indebtedness, comprised of total debt and finance leases, net of cash, divided by the trailing twelve
months sum of operating income (loss), depreciation and amortization, and gain on disposition of property and equipment, net.
|
Covenant Logistics Group, Inc.
|
|||||||||||||||||||||||||
Non-GAAP Reconciliation (Unaudited)
|
|||||||||||||||||||||||||
Adjusted Operating Income and Adjusted Operating Ratio(1)
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|||||||||||||||||||
GAAP Presentation
|
|
2023
|
|
|
2022
|
|
|
bps Change
|
|
|
2023
|
|
|
2022
|
|
|
bps Change
|
|
|||||||
Total revenue
|
|
$
|
274,016
|
|
|
$
|
317,377
|
|
|
|
|
|
|
$
|
540,867
|
|
|
$
|
608,962
|
|
|
|
|
|
|
Total operating expenses
|
|
|
262,233
|
|
|
|
290,504
|
|
|
|
|
|
|
|
511,452
|
|
|
|
558,242
|
|
|
|
|
|
|
Operating income
|
|
$
|
11,783
|
|
|
$
|
26,873
|
|
|
|
|
|
|
$
|
29,415
|
|
|
$
|
50,720
|
|
|
|
|
|
|
Operating ratio
|
|
|
95.7
|
%
|
|
|
91.5
|
%
|
|
|
420
|
|
|
|
94.6
|
%
|
|
|
91.7
|
%
|
|
|
290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Presentation
|
|
2023
|
|
|
2022
|
|
|
bps Change
|
|
|
2023
|
|
|
2022
|
|
|
bps Change
|
|
|||||||
Total revenue
|
|
$
|
274,016
|
|
|
$
|
317,377
|
|
|
|
|
|
|
$
|
540,867
|
|
|
$
|
608,962
|
|
|
|
|
|
|
Fuel surcharge revenue
|
|
|
(30,312
|
)
|
|
|
(50,521
|
)
|
|
|
|
|
|
|
(63,741
|
)
|
|
|
(84,492
|
)
|
|
|
|
|
|
Freight revenue (total revenue, excluding fuel surcharge)
|
|
|
243,704
|
|
|
|
266,856
|
|
|
|
|
|
|
|
477,126
|
|
|
|
524,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
262,233
|
|
|
|
290,504
|
|
|
|
|
|
|
|
511,452
|
|
|
|
558,242
|
|
|
|
|
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel surcharge revenue
|
|
|
(30,312
|
)
|
|
|
(50,521
|
)
|
|
|
|
|
|
|
(63,741
|
)
|
|
|
(84,492
|
)
|
|
|
|
|
|
Amortization of intangibles (2)
|
|
|
(1,802
|
)
|
|
|
(1,476
|
)
|
|
|
|
|
|
|
(2,922
|
)
|
|
|
(2,064
|
)
|
|
|
|
|
|
Gain on disposal of terminals, net
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
7,627
|
|
|
|
-
|
|
|
|
|
|
|
Contingent consideration liability adjustment
|
|
|
(492
|
)
|
|
|
-
|
|
|
|
|
|
|
|
(1,992
|
)
|
|
|
-
|
|
|
|
|
|
|
Acquisition transaction costs and executive retirement bonus
|
|
|
(2,158
|
)
|
|
|
-
|
|
|
|
|
|
|
|
(2,158
|
)
|
|
|
-
|
|
|
|
|
|
|
Adjusted operating expenses
|
|
|
227,469
|
|
|
|
238,507
|
|
|
|
|
|
|
|
448,266
|
|
|
|
471,686
|
|
|
|
|
|
|
Adjusted operating income
|
|
|
16,235
|
|
|
|
28,349
|
|
|
|
|
|
|
|
28,860
|
|
|
|
52,784
|
|
|
|
|
|
|
Adjusted operating ratio
|
|
|
93.3
|
%
|
|
|
89.4
|
%
|
|
|
390
|
|
|
|
94.0
|
%
|
|
|
89.9
|
%
|
|
|
410
|
|
(1)
|
Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP operating income and operating ratio to consolidated non-GAAP adjusted operating
income and adjusted operating ratio.
|
(2)
|
"Amortization of intangibles" reflects the non-cash amortization expense relating to intangible assets.
|
(Dollars in thousands)
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
GAAP Presentation - Net income
|
$
|
12,293
|
$
|
24,526
|
$
|
28,928
|
$
|
46,693
|
||||||||
Adjusted for:
|
||||||||||||||||
Amortization of intangibles (2)
|
1,802
|
1,476
|
2,922
|
2,064
|
||||||||||||
Discontinued operations reversal of loss contingency (3)
|
(200
|
)
|
-
|
(400
|
)
|
-
|
||||||||||
Gain on disposal of terminals, net
|
-
|
-
|
(7,627
|
)
|
-
|
|||||||||||
Contingent consideration liability adjustment
|
492
|
-
|
1,992
|
-
|
||||||||||||
Acquisition transaction costs and executive retirement bonus
|
2,158
|
-
|
2,158
|
-
|
||||||||||||
Total adjustments before taxes
|
4,252
|
1,476
|
(955
|
)
|
2,064
|
|||||||||||
Provision for income tax expense at effective rate
|
(1,102
|
)
|
(385
|
)
|
235
|
(541
|
)
|
|||||||||
Tax effected adjustments
|
3,150
|
1,091
|
(720
|
)
|
1,523
|
|||||||||||
Tennessee works tax act
|
(1,000
|
)
|
-
|
(1,000
|
)
|
-
|
||||||||||
Non-GAAP Presentation - Adjusted net income
|
$
|
14,443
|
$
|
25,617
|
$
|
27,208
|
$
|
48,216
|
||||||||
|
||||||||||||||||
GAAP Presentation - Diluted earnings per share ("EPS")
|
$
|
0.91
|
$
|
1.56
|
$
|
2.10
|
$
|
2.86
|
||||||||
Adjusted for:
|
||||||||||||||||
Amortization of intangibles (2)
|
0.13
|
0.09
|
0.21
|
0.13
|
||||||||||||
Discontinued operations reversal of loss contingency(3)
|
(0.02
|
)
|
-
|
(0.03
|
)
|
-
|
||||||||||
Gain on sale of terminal, net
|
-
|
-
|
(0.54
|
)
|
-
|
|||||||||||
Contingent consideration liability adjustment
|
0.04
|
-
|
0.15
|
-
|
||||||||||||
Acquisition transaction costs and executive retirement bonus
|
0.16
|
-
|
0.16
|
-
|
||||||||||||
Total adjustments before taxes
|
0.31
|
0.09
|
(0.05
|
)
|
0.13
|
|||||||||||
Provision for income tax expense at effective rate
|
(0.08
|
)
|
(0.02
|
)
|
0.02
|
(0.03
|
)
|
|||||||||
Tax effected adjustments
|
0.16
|
0.07
|
(0.10
|
)
|
(0.03
|
)
|
||||||||||
Tennessee works tax act
|
(0.07
|
)
|
-
|
(0.07
|
)
|
-
|
||||||||||
Non-GAAP Presentation - Adjusted EPS
|
$
|
1.07
|
$
|
1.63
|
$
|
2.00
|
$
|
2.96
|
(1)
|
Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP net income to consolidated non-GAAP adjusted net income and
consolidated GAAP diluted earnings per share to non-GAAP consolidated Adjusted EPS.
|
(2)
|
"Amortization of intangibles" reflects the non-cash amortization expense relating to intangible assets.
|
(3)
|
"Discontinued Operations reversal of loss contingency" reflects the non-cash reversal of a previously recorded loss contingency that is no longer
considered probable. The original loss contingency was recorded in Q4 2020 as a result of our disposal of our former accounts receivable factoring segment, TFS.
|
Covenant Logistics Group, Inc
|
||||||||||||||||||||||||||||||||||||||||
Non-GAAP Reconciliation (Unaudited)
|
||||||||||||||||||||||||||||||||||||||||
Adjusted Operating Income and Adjusted Operating Ratio (1)
|
||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Three Months Ended June 30,
|
|||||||||||||||||||||||||||||||||||||||
GAAP Presentation
|
2023
|
2022
|
||||||||||||||||||||||||||||||||||||||
|
Expedited
|
Dedicated
|
Combined Truckload
|
Managed Freight
|
Warehousing
|
Expedited
|
Dedicated
|
Combined Truckload
|
Managed Freight
|
Warehousing
|
||||||||||||||||||||||||||||||
Total revenue
|
$
|
104,073
|
$
|
81,194
|
$
|
185,267
|
$
|
63,281
|
$
|
25,468
|
$
|
121,643
|
$
|
96,767
|
$
|
218,410
|
$
|
80,281
|
$
|
18,686
|
||||||||||||||||||||
Total operating expenses
|
98,258
|
77,951
|
$
|
176,209
|
$
|
61,336
|
24,688
|
107,033
|
93,886
|
200,919
|
71,654
|
17,932
|
||||||||||||||||||||||||||||
Operating income (loss)
|
$
|
5,815
|
$
|
3,243
|
$
|
9,058
|
$
|
1,945
|
$
|
780
|
$
|
14,610
|
$
|
2,881
|
$
|
17,491
|
$
|
8,627
|
$
|
754
|
||||||||||||||||||||
Operating ratio
|
94.4
|
%
|
96.0
|
%
|
95.1
|
%
|
96.9
|
%
|
96.9
|
%
|
88.0
|
%
|
97.0
|
%
|
92.0
|
%
|
89.3
|
%
|
96.0
|
%
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Non-GAAP Presentation
|
||||||||||||||||||||||||||||||||||||||||
Total revenue
|
$
|
104,073
|
$
|
81,194
|
$
|
185,267
|
$
|
63,281
|
$
|
25,468
|
$
|
121,643
|
$
|
96,767
|
$
|
218,410
|
$
|
80,281
|
$
|
18,686
|
||||||||||||||||||||
Fuel surcharge revenue
|
(18,104
|
)
|
(11,929
|
)
|
(30,033
|
)
|
-
|
(279
|
)
|
(28,924
|
)
|
(21,270
|
)
|
(50,194
|
)
|
-
|
(327
|
)
|
||||||||||||||||||||||
Freight revenue (total revenue, excluding fuel surcharge)
|
85,969
|
69,265
|
155,234
|
63,281
|
25,189
|
92,719
|
75,497
|
168,216
|
80,281
|
18,359
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Total operating expenses
|
98,258
|
77,951
|
176,209
|
61,336
|
24,688
|
107,033
|
93,886
|
200,919
|
71,654
|
17,932
|
||||||||||||||||||||||||||||||
Adjusted for:
|
||||||||||||||||||||||||||||||||||||||||
Fuel surcharge revenue
|
(18,104
|
)
|
(11,929
|
)
|
(30,033
|
)
|
-
|
(279
|
)
|
(28,924
|
)
|
(21,270
|
)
|
(50,194
|
)
|
-
|
(327
|
)
|
||||||||||||||||||||||
Amortization of intangibles (2)
|
(533
|
)
|
(975
|
)
|
(1,508
|
)
|
(35
|
)
|
(259
|
)
|
(889
|
)
|
(293
|
)
|
(1,182
|
)
|
(35
|
)
|
(259
|
)
|
||||||||||||||||||||
Contingent consideration liability adjustment
|
(492
|
)
|
-
|
(492
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||
Acquisition transaction costs and executive retirement bonus
|
(1,113
|
)
|
(876
|
)
|
(1,989
|
)
|
(90
|
)
|
(79
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Adjusted operating expenses
|
78,016
|
64,171
|
142,187
|
61,211
|
24,071
|
77,220
|
72,323
|
149,543
|
71,619
|
17,346
|
||||||||||||||||||||||||||||||
Adjusted operating income
|
7,953
|
5,094
|
13,047
|
2,070
|
1,118
|
15,499
|
3,174
|
18,673
|
8,662
|
1,013
|
||||||||||||||||||||||||||||||
Adjusted operating ratio
|
90.7
|
%
|
92.6
|
%
|
91.6
|
%
|
96.7
|
%
|
95.6
|
%
|
83.3
|
%
|
95.8
|
%
|
88.9
|
%
|
89.2
|
%
|
94.5
|
%
|
|
|
Six Months Ended June 30,
|
|
|||||||||||||||||||||||||||||||||||||
GAAP Presentation
|
|
2023
|
|
|
2022
|
|
||||||||||||||||||||||||||||||||||
|
|
Expedited
|
|
|
Dedicated
|
|
|
Combined Truckload
|
|
|
Managed Freight
|
|
|
Warehousing
|
|
|
Expedited
|
|
|
Dedicated
|
|
|
Combined Truckload
|
|
|
Managed Freight
|
|
|
Warehousing
|
|
||||||||||
Total revenue
|
|
$
|
204,969
|
|
|
$
|
161,438
|
|
|
$
|
366,407
|
|
|
$
|
124,155
|
|
|
$
|
50,305
|
|
|
$
|
220,440
|
|
|
$
|
185,714
|
|
|
$
|
406,154
|
|
|
$
|
166,432
|
|
|
$
|
36,376
|
|
Total operating expenses
|
|
|
189,878
|
|
|
$
|
151,048
|
|
|
$
|
340,926
|
|
|
$
|
120,992
|
|
|
$
|
49,534
|
|
|
$
|
196,499
|
|
|
$
|
180,191
|
|
|
$
|
376,690
|
|
|
$
|
146,974
|
|
|
$
|
34,578
|
|
Operating income (loss)
|
|
$
|
15,091
|
|
|
$
|
10,390
|
|
|
$
|
25,481
|
|
|
$
|
3,163
|
|
|
$
|
771
|
|
|
$
|
23,941
|
|
|
$
|
5,523
|
|
|
$
|
29,464
|
|
|
$
|
19,458
|
|
|
$
|
1,798
|
|
Operating ratio
|
|
|
92.6
|
%
|
|
|
93.6
|
%
|
|
|
93.0
|
%
|
|
|
97.5
|
%
|
|
|
98.5
|
%
|
|
|
89.1
|
%
|
|
|
97.0
|
%
|
|
|
92.7
|
%
|
|
|
88.3
|
%
|
|
|
95.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Presentation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
204,969
|
|
|
$
|
161,438
|
|
|
$
|
366,407
|
|
|
$
|
124,155
|
|
|
$
|
50,305
|
|
|
$
|
220,440
|
|
|
$
|
185,714
|
|
|
$
|
406,154
|
|
|
$
|
166,432
|
|
|
$
|
36,376
|
|
Fuel surcharge revenue
|
|
|
(37,342
|
)
|
|
|
(25,813
|
)
|
|
($
|
63,155
|
)
|
|
|
-
|
|
|
|
(586
|
)
|
|
|
(47,074
|
)
|
|
|
(36,840
|
)
|
|
|
(83,914
|
)
|
|
|
-
|
|
|
|
(578
|
)
|
Freight revenue (total revenue, excluding fuel surcharge)
|
|
|
167,627
|
|
|
|
135,625
|
|
|
|
303,252
|
|
|
|
124,155
|
|
|
|
49,719
|
|
|
|
173,366
|
|
|
|
148,874
|
|
|
|
322,240
|
|
|
|
166,432
|
|
|
|
35,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
189,878
|
|
|
|
151,048
|
|
|
|
340,926
|
|
|
|
120,992
|
|
|
|
49,534
|
|
|
|
196,499
|
|
|
|
180,191
|
|
|
|
376,690
|
|
|
|
146,974
|
|
|
|
34,578
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel surcharge revenue
|
|
|
(37,342
|
)
|
|
|
(25,813
|
)
|
|
|
(63,155
|
)
|
|
|
-
|
|
|
|
(586
|
)
|
|
|
(47,074
|
)
|
|
|
(36,840
|
)
|
|
|
(83,914
|
)
|
|
|
-
|
|
|
|
(578
|
)
|
Amortization of intangibles (2)
|
|
|
(1,066
|
)
|
|
|
(1,268
|
)
|
|
|
(2,334
|
)
|
|
|
(70
|
)
|
|
|
(518
|
)
|
|
|
(889
|
)
|
|
|
(586
|
)
|
|
|
(1,475
|
)
|
|
|
(71
|
)
|
|
|
(518
|
)
|
Gain on disposal of terminals, net
|
|
|
3,928
|
|
|
|
3,699
|
|
|
|
7,627
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Contingent consideration liability adjustment
|
|
|
(1,992
|
)
|
|
|
-
|
|
|
|
(1,992
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Acquisition transaction costs and executive retirement bonus
|
|
|
(1,113
|
)
|
|
|
(876
|
)
|
|
|
(1,989
|
)
|
|
|
(90
|
)
|
|
|
(79
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Adjusted operating expenses
|
|
|
152,293
|
|
|
|
126,790
|
|
|
|
279,083
|
|
|
|
120,832
|
|
|
|
48,351
|
|
|
|
148,536
|
|
|
|
142,765
|
|
|
|
291,301
|
|
|
|
146,903
|
|
|
|
33,482
|
|
Adjusted operating income
|
|
|
15,334
|
|
|
|
8,835
|
|
|
|
24,169
|
|
|
|
3,323
|
|
|
|
1,368
|
|
|
|
24,830
|
|
|
|
6,109
|
|
|
|
30,939
|
|
|
|
19,529
|
|
|
|
2,316
|
|
Adjusted operating ratio
|
|
|
90.9
|
%
|
|
|
93.5
|
%
|
|
|
92.0
|
%
|
|
|
97.3
|
%
|
|
|
97.2
|
%
|
|
|
85.7
|
%
|
|
|
95.9
|
%
|
|
|
90.4
|
%
|
|
|
88.3
|
%
|
|
|
93.5
|
%
|
(1)
|
Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP operating income and operating ratio to consolidated non-GAAP
adjusted operating income and adjusted operating ratio.
|
(2)
|
"Amortization of intangibles" reflects the non-cash amortization expense relating to intangible assets.
|