CHATTANOOGA, Tenn., July 01, 2025 (GLOBE NEWSWIRE) -- Covenant Logistics Group, Inc. (NYSE: CVLG) announced its plans to release its second quarter earnings after 4:00 p.m. Eastern time on Wednesday, July 23, 2025. Covenant Logistics Group, Inc. will hold a live conference call to discuss its second quarter earnings release on Thursday, July 24, 2025, at 10:00 a.m. Eastern time. Individuals with questions may dial in at 877-550-1505 (U.S./Canada) and 0800-524-4760 (International). An audio replay will be av ...

Covenant Logistics Conference Call Summary Company Overview - **Company Name**: Covenant Logistics - **Ticker**: CVLG - **Market Cap**: $600 million - **Location**: Chattanooga, Tennessee - **Industry**: Logistics service provider - **Transformation**: Underwent significant operational transformation over the past several years [1][2] Core Points and Arguments Operational Transformation - Covenant Logistics has diversified its operations, moving from a predominantly long-haul transportation model to a more integrated supply chain approach [3][4] - The company made a pivotal acquisition in 2018 of Landair, which expanded its capabilities into dedicated and warehousing services [5] - The strategic plan initiated in 2019 aimed to challenge existing operational norms and improve efficiency [6][7] Financial Performance - The company reduced its leverage from 3.7 times EBITDA to 0.2 times during the pandemic, showcasing effective management and strategic execution [7][9] - Covenant has been actively repurchasing shares, buying back approximately 25% of the public float over a twelve-month period [9][10] - The company generates $70 to $80 million in free cash flow annually after maintenance CapEx and dividends [11] Business Model Shift - Transitioned from a 100% asset-based model to approximately 65% asset-based and 35% asset-light, with a goal of reaching a 50/50 split in the next three to five years [11][12] - The company has improved operational efficiency, achieving higher returns with fewer trucks; currently making four times the revenue with 2,500 trucks compared to 4,000 previously [12][13] Market Position and Strategy - Covenant operates in four main segments: expedited, dedicated, managed freight, and warehousing, with a focus on high service standards and specialized operations [15][20] - The expedited segment includes high-margin services for time-sensitive deliveries, including a recent acquisition related to ammunition and explosives for the Department of Defense [16][20] - The dedicated segment primarily serves the poultry industry, which constitutes about 50% of its operations, emphasizing the need for specialized service [17][20] Industry Context - The logistics industry is currently experiencing a freight recession, with excess supply created during the pandemic leading to rate reductions [24] - Covenant's strategic focus on non-commoditized services has allowed it to perform better than peers during this downturn [24][25] - The company anticipates an upswing in the freight economy and is positioned to capitalize on operational leverage as conditions improve [34] Additional Important Insights - Covenant's management team has undergone significant changes, focusing on unlocking balance sheet value and improving operational efficiency [7][10] - The company has a strong emphasis on maintaining a culture of integrity and operational excellence, which is seen as a competitive advantage [15] - Covenant's equity method investment in Transport Enterprise Leasing contributes significantly to its earnings, representing 15% to 20% of earnings per share [22][23] - The company is actively seeking acquisitions that align with its strategic goals, focusing on businesses with strong margins and growth potential [29][46] Conclusion Covenant Logistics is positioned as a compelling investment opportunity due to its strategic transformation, diversified operations, and strong financial performance. The company is focused on maintaining operational excellence and capitalizing on market opportunities as the logistics industry navigates current challenges.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 400 Birmingham Hwy. Chattanooga, TN 37419 (Address of principal executive offices) (Zip Code) For the transition period from to Commission File Number: 001-42192 COVENANT LOGISTICS GROUP, I ...

Covenant Logistics Group, Inc. (NYSE:CVLG) Q1 2025 Results Conference Call April 24, 2025 10:00 AM ET Company Participants Tripp Grant - EVP, CFO David Parker - CEO Paul Bunn - President Conference Call Participants Jason Seidl - TD Cowen Daniel Imbro - Stephens Jeff Kauffman - Vertical Research Partners Operator Welcome to today's Covenant Logistics Group Q1 2025 Earnings Release and Investor Conference Call. Our host for today's call is Tripp Grant. At this time all participants will be in a listen-only m ...

Covenant Logistics (CVLG) Q1 2025 Earnings Call April 24, 2025 10:00 AM ET Company Participants Tripp Grant - Executive Vice President & Chief Financial OfficerJason Seidl - Managing DirectorPaul Bunn - President & Chief Operating OfficerDaniel Imbro - Managing DirectorDavid Parker - Chairman & Chief Executive OfficerJeffrey Kauffman - Partner & Transportation and Logistics Equity Research Operator Welcome to today's Covenant Logistics Group Q1 twenty twenty five Earnings Release and Investor Conference Cal ...

Financial Performance - First quarter earnings were $0.24 per diluted share, with adjusted earnings per diluted share at $0.32, a decrease from $0.42 in Q1 2024 [3]. - Total revenue for Q1 2025 was $269.4 million, down 3.0% from $278.8 million in Q1 2024 [4]. - Freight revenue, excluding fuel surcharge, decreased to $243.2 million, a decline of 1.9% compared to $247.7 million in the prior year [4]. - Net income for Q1 2025 was $6.563 million, up from $3.974 million in Q1 2024, representing a 65.5% increase [27]. - Basic earnings per share increased to $0.25 in Q1 2025 from $0.15 in Q1 2024, a rise of 66.7% [27]. - Operating income improved to $7.627 million in Q1 2025, compared to $4.335 million in Q1 2024, marking a 76.5% increase [27]. - Adjusted EPS for Q1 2025 was $0.32, compared to $0.42 in Q1 2024, indicating a decrease [34]. Revenue Breakdown - Managed Freight's freight revenue decreased by 9.6% to $56.9 million, but operating income improved by 35.9% to $3.1 million [12]. - Warehousing segment freight revenue fell by 6.0% to $24.0 million, with operating income decreasing to $1.0 million from $2.0 million [14]. - Dedicated truckload segment revenue increased by 13.1% to $82.080 million from $72.595 million year-over-year [28]. - Managed freight revenue decreased by 9.6% to $56.850 million from $62.917 million in the previous year [28]. - Fuel surcharge revenue fell by 15.9% to $26.136 million compared to $31.078 million in Q1 2024 [27]. Operating Metrics - Total operating expenses decreased to $261.728 million in Q1 2025 from $274.428 million in Q1 2024, a reduction of 4.6% [27]. - Average freight revenue per loaded mile increased to $2.98 in Q1 2025, up 11.2% from $2.68 in Q1 2024 [29]. - The average miles per tractor per period decreased to 27,521 in Q1 2025, down 11.8% from 31,201 in Q1 2024 [29]. Strategic Initiatives - The company completed a tuck-in acquisition of a multi-stop distribution carrier, expected to enhance equipment utilization and earnings in the Dedicated division [3]. - The company announced a $50 million stock repurchase program to reinforce confidence in its future [19]. - The outlook for 2025 indicates a potential recovery in the freight economy, with a focus on capturing new dedicated contracts and evaluating acquisition opportunities [20]. - The company anticipates continued challenges in the freight market and is focused on strategic growth initiatives [23]. Balance Sheet Highlights - Total indebtedness increased by $5.8 million to approximately $225.4 million as of March 31, 2025 [15]. - Total assets decreased to $979,969,000 as of March 31, 2025, from $997,768,000 at the end of 2024 [29]. - Total stockholders' equity increased to $443,644,000 as of March 31, 2025, up from $438,340,000 at the end of 2024 [29]. - The leverage ratio remained stable at 1.65 for both periods [29].

CHATTANOOGA, Tenn., April 23, 2025 (GLOBE NEWSWIRE) -- Covenant Logistics Group, Inc. (NYSE: CVLG) (“Covenant” or the “Company”) announced today financial and operating results for the first quarter ended March 31, 2025. The Company’s conference call to discuss the quarter will be held at 10:00 A.M. Eastern Time on Thursday, April 24, 2025. Chairman and Chief Executive Officer, David R. Parker, commented: “Our first quarter earnings were $0.24 per diluted share or $0.32 per diluted share on a non-GAAP adjus ...

Core Insights - Covenant Logistics recognizes Landair and AAT Carriers as 2025 TCA Elite Fleet Certified Carriers, highlighting their commitment to driver satisfaction, safety, and operational excellence [1][3] - The TCA Elite Fleet program evaluates carriers based on performance metrics such as safety records, driver satisfaction, turnover rates, and operational efficiency [2] Company Commitment - Landair and AAT Carriers focus on building a driver-centric culture that emphasizes employee well-being, career development, and long-term success [3] - The companies invest in competitive compensation, robust benefits, and innovative recruitment and training initiatives to support drivers [3][4] Continuous Improvement - As TCA Elite Fleet certification recipients, Landair and AAT Carriers are dedicated to enhancing driver satisfaction through competitive pay, modern equipment, and professional development programs [4] - The emphasis on work-life balance is a key component of their driver programs [4] Industry Context - The Truckload Carriers Association (TCA) represents over 220,000 trucks and $40 billion in annual revenue, advocating for safety and operational excellence in the truckload segment [6]

Regulatory and Compliance Risks - The company operates in a highly regulated industry, with potential changes in regulations that could adversely affect operations and profitability [142]. - Compliance with environmental laws may increase operational costs, and non-compliance could result in substantial fines [150]. - Regulatory changes related to climate change could impose significant costs on the company’s operations [154]. - If independent contractor drivers are reclassified as employees, the company could incur additional liabilities under federal and state laws, impacting financial condition [144]. - The company may face additional expenses to reinstate insurance policies due to liability claims, potentially leading to increased insurance and claims expenses [141]. Operational Challenges - The company experiences high turnover rates among drivers, necessitating significant recruitment resources and potentially impacting capacity [157]. - The company faces risks from potential unionization efforts, which could increase legal costs and disrupt operations [145]. - The company’s fleet may be adversely affected by the CSA program, which evaluates safety-related standards and could impact driver recruitment [146]. - The company currently maintains a satisfactory DOT safety rating, but any downgrade could lead to contract terminations and increased insurance costs [149]. - Seasonal weather impacts tractor productivity, particularly in winter, affecting revenue and operating expenses [171]. - The company may face adverse effects from public health crises, similar to the impact of COVID-19, which could disrupt operations and financial results [172]. - The company is dependent on key personnel, and turnover in management could disrupt operations and affect profitability [169]. Financial Performance and Risks - Diesel fuel is one of the largest operating expenses for the company, with fluctuations in prices significantly impacting profitability [163]. - Increased fuel costs that are not offset by surcharges could materially affect operations and profitability [164]. - A one dollar increase in diesel price per gallon would decrease net income by approximately $0.4 million, with an expected annual purchase of 40.6 million gallons of diesel [317]. - The company has experienced difficulties in meeting budgeted results, leading to requests for amendments or waivers under its Credit Facility [175]. - The company has a $110.0 million Credit Facility, which includes covenants and restrictions that may affect financial flexibility [175]. - The company has experienced a softened used equipment market from 2022 to 2024, which could adversely affect financial results [187]. - Changes in tax laws could increase the company's tax exposure and adversely affect financial results [201]. Capital and Investment - The company expects to finance projected capital expenditures through cash flows from operations, borrowings, and proceeds from the sale of used revenue equipment [184]. - The company holds a 49% interest in TEL, which faces significant capital requirements and risks related to its leasing business and market fluctuations [189]. - The company has authorized a stock repurchase program of up to $55 million for Class A common stock, with future repurchases at the Board's discretion [199]. - The company may face increased operating expenses due to higher prices for new tractors and trailers, influenced by government regulations and commodity prices [185]. - The reliance on third-party providers in the Managed Freight segment could increase operating costs and affect revenue if service instability occurs [166]. Debt and Interest Rate Management - Total debt as of December 31, 2024, is $296.9 million, with $17.8 million classified as variable rate debt [319]. - The company entered into an interest rate swap agreement with a notional amount of $28.0 million, converting variable rate interest payments to a fixed rate of 4.2% through maturity on August 1, 2035 [318]. - A 1% increase in the applicable rate on non-hedged variable rate debt would have an immaterial impact on consolidated results of operations [319]. - The fair value of the swap agreements and amounts expected to be reclassified from accumulated other comprehensive income during the next twelve months due to interest rate changes is approximately $0.3 million [318]. - The company has historically used a combination of fixed-rate and variable-rate obligations to manage interest rate exposure [319]. - Cash settlements from interest rate swaps are presented in operating activities on the Consolidated Statements of Cash Flows [318]. - The company does not engage in speculative transactions or hold financial instruments for trading purposes [316]. Technology and Innovation - The adoption of artificial intelligence and emerging technologies may impact future operating results, with potential competitive disadvantages if not implemented effectively [168]. - Cybersecurity risks pose a significant threat to the company's information technology systems, which are critical for operations and financial reporting [167]. Ownership and Control - The company's concentrated ownership structure allows the Chairman and CEO to control approximately 39% of the voting power, potentially limiting other shareholders' influence [195].

Financial Data and Key Metrics Changes - The company demonstrated durability in a weak general freight environment for the second consecutive year, indicating resilience in its business model [2] - The focus for 2025 will be on improving profitability and consistency over the long term [2] Business Line Data and Key Metrics Changes - Specific data on individual business lines was not provided in the available content [1] Market Data and Key Metrics Changes - No specific market data or key metrics changes were mentioned in the available content [1] Company Strategy and Development Direction - The company aims to continue focusing on controllable factors to enhance profitability and consistency [2] - There were significant strides made in 2024, with plans to further improve the business model in 2025 [2] Management Comments on Operating Environment and Future Outlook - Management highlighted the commitment of the team in executing a common strategic goal, which contributed to the company's performance in a challenging environment [2] - The company undertakes no obligation to publicly update or revise any forward-looking statements, indicating a cautious approach to future projections [2] Other Important Information - The call included a reminder about the forward-looking statements under the Private Securities Litigation Reform Act, emphasizing the risks and uncertainties involved [2] Q&A Session Summary - No specific questions and answers from the Q&A session were provided in the available content [1]