Financial Performance - Covenant Logistics Group reported fourth quarter earnings of $0.24 per diluted share and non-GAAP adjusted earnings of $0.49 per diluted share, with total revenue of $277.3 million, a 1.0% increase from $274.0 million in Q4 2023[3][5]. - Total revenue for Q4 2024 was $277,331,000, representing a 1.2% increase from $273,985,000 in Q4 2023[29]. - Total revenue for the year ended December 31, 2024, was $1.13 billion, up from $1.10 billion in 2023[5]. - Net income for the year ended December 31, 2024, was $35,921,000, a decrease of 34.9% compared to $55,229,000 in 2023[29]. - Total revenue for the year ended December 31, 2024, was $416,461 million, compared to $423,820 million in 2023, reflecting a decrease of approximately 1.1%[40]. Revenue Segments - Freight revenue, excluding fuel surcharge, increased to $251.1 million, up 4.6% from $240.0 million in the same quarter last year[5]. - The Dedicated segment's freight revenue increased by $14.8 million, or 22.4%, with average total tractors rising by 198 units, or 13.2%[8]. - The Expedited segment's freight revenue decreased by $0.7 million, or 0.8%, with average total tractors decreasing by 40 units to 875[8]. - Managed Freight's freight revenue decreased by 4.3%, but operating income improved by approximately 87% compared to Q4 2023, reflecting better margin management[14]. - The Warehousing segment's freight revenue decreased by 0.8%, but operating income increased by $0.8 million year-over-year due to improved labor costs and customer rate increases[16]. Operating Income and Expenses - The company's operating income for the fourth quarter was $8.6 million, down 39.0% from $14.3 million in Q4 2023, while adjusted operating income was $17.9 million, slightly up from $17.1 million[5]. - Operating expenses in the combined truckload segments increased by 6.6% on a per total mile basis, driven by higher salaries, maintenance costs, and insurance expenses[9][10]. - Total operating expenses for Q4 2024 were $268,718,000, an increase of 3.5% from $259,718,000 in Q4 2023[33]. - Operating income for 2024 was $22,162 million, compared to $28,861 million in 2023, representing a decline of approximately 23.2%[40]. - Adjusted operating income for 2024 was $24,295 million, compared to $31,156 million in 2023, a decrease of about 22.0%[40]. Debt and Capitalization - As of December 31, 2024, total net indebtedness decreased by $28.7 million to approximately $219.6 million compared to December 31, 2023[17]. - Net indebtedness to total capitalization decreased to 33.4% at December 31, 2024, down from 38.1% at December 31, 2023[17]. - The leverage ratio improved to 1.65 in 2024 from 2.14 in 2023, indicating better debt management[31]. - The net indebtedness to capitalization ratio improved to 33.4% in 2024 from 38.1% in 2023, indicating a stronger equity position[31]. Future Outlook and Strategy - The company allocated approximately $103 million toward planned net capital expenditures in tractors and trailers for fleet optimization[18]. - Baseline expectation for net capital equipment expenditures in 2025 is between $70 million and $80 million[21]. - The company is focusing on capturing new dedicated contracts and evaluating multiple acquisition and investment opportunities[22]. - The company aims to grow profitably and generate meaningful returns for stockholders while providing career opportunities for team members[22]. - The company plans to continue focusing on market expansion and new technology development to enhance operational efficiency and revenue growth in the upcoming year[40]. Market Conditions - The general freight market is incrementally improving, with better balance between capacity and demand[22]. - The average age of tractors increased to 20 months compared to 19 months a year ago[20]. - The company anticipates disposing of $0.1 million in assets held for sale within twelve months[20].

Core Viewpoint - Covenant Logistics Group, Inc. reported its fourth quarter financial results for 2024, highlighting a challenging freight environment but demonstrating resilience through a diversified business model and operational adjustments [2][3][21]. Financial Performance - The company achieved fourth quarter earnings of $0.24 per diluted share and non-GAAP adjusted earnings of $0.49 per diluted share, with total revenue of $277.3 million, a slight increase of 1.2% from the previous year [2][4][29]. - Freight revenue, excluding fuel surcharge, was $251.1 million, up 4.6% year-over-year, while total revenue for the year reached $1.13 billion, a 2.5% increase [4][27][29]. - Net income for the fourth quarter was $6.7 million, down from $12.8 million in the same quarter of 2023, reflecting the impact of increased operating costs [4][26][29]. Segment Performance - The Dedicated segment saw a revenue increase of 22.4% to $80.7 million, driven by a 13.2% increase in average total tractors [8][27]. - The Expedited segment's freight revenue decreased by 0.8% to $83.8 million, with a reduction in average total tractors [8][27]. - Managed Freight's revenue fell by 4.3% to $62.3 million, but operating income improved by approximately 87% year-over-year [14][27]. - The Warehousing segment's revenue was relatively stable, with a slight decrease of 0.8% to $24.4 million, but operating income increased due to improved labor costs [15][27]. Operating Expenses - Operating expenses in the truckload segments increased by 6.6% on a per total mile basis, primarily due to higher driver pay, maintenance costs, and insurance expenses [9][10][11]. - Salaries, wages, and related expenses rose by approximately 10% year-over-year, reflecting growth in the dedicated protein supply chain business [10][26]. - The company recognized a $6.3 million expense related to an earnout payment from a previous acquisition, impacting adjusted results [9][26]. Capitalization and Liquidity - As of December 31, 2024, total net indebtedness decreased by $28.7 million to approximately $219.6 million, with a net indebtedness to total capitalization ratio of 33.4% [16][18]. - The company had cash and cash equivalents of $35.6 million and no borrowings under its ABL credit facility, indicating strong liquidity [18][20]. Outlook - The general freight market is showing signs of improvement, with better balance between capacity and demand, although challenges remain in dedicated markets due to temporary customer shutdowns and adverse weather conditions [21][22]. - The company aims to grow profitably and generate meaningful returns for shareholders while expanding its dedicated fleet and exploring acquisition opportunities [21][22].

Core Viewpoint - Covenant Logistics Group, Inc. (CVLG) is expected to report its fourth-quarter 2024 results on January 23, 2025, with a decline in earnings estimates and a challenging market environment impacting performance [1][2]. Group 1: Earnings Estimates and Performance - The Zacks Consensus Estimate for CVLG's fourth-quarter 2024 earnings has decreased by 3.9% to 49 cents per share over the past 60 days [2]. - CVLG has a strong earnings surprise history, outperforming the Zacks Consensus Estimate in the last four quarters with an average beat of 4% [2]. Group 2: Market Conditions and Challenges - The company anticipates a slower-than-expected market recovery due to persistent excess carrier capacity and a lack of immediate demand catalysts [3]. - New business awards and small rate increases provide some relief but are offset by weaker-than-expected volumes, particularly in the Expedited segment [3][4]. Group 3: Operational and Cost Pressures - CVLG's reliance on long-term contracts and a slower operating model means operational improvements will take time, prolonging the benefits of increased leverage [4]. - Operating expenses are expected to rise due to wage inflation, higher healthcare costs, and performance-based incentives, with driver pay fluctuating based on market pressures [5]. - High fuel costs, with oil prices increasing by 5.2% in the October-December period, are likely to negatively impact bottom-line results for the fourth quarter of 2024 [5]. Group 4: Earnings Prediction Model - The current model does not predict an earnings beat for CVLG, as it has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [6].

Core Points - Covenant Logistics Group, Inc. plans to release its fourth quarter earnings on January 23, 2025, after 4:00 p.m. Eastern time [1] - A live conference call to discuss the earnings will be held on January 24, 2025, at 10:00 a.m. Eastern time [1] - The company provides a range of transportation and logistics services across the United States, including expedited and dedicated truckload capacity, warehousing, transportation management, and freight brokerage [1] Company Overview - Covenant Logistics Group, Inc. operates through subsidiaries offering transportation and logistics services [1] - The company also has an affiliated entity, Transport Enterprise Leasing, which provides revenue equipment sales and leasing services to the trucking industry [1] - Covenant's Class A common stock is traded on the New York Stock Exchange under the symbol "CVLG" [1]

Core Insights - Covenant Logistics Group, Inc. has been recognized as the Rand McNally Safety Program of the Year winner for 2024, highlighting its commitment to fleet safety through proactive management and innovative technology [1][3] - Marshall Rushworth, Director of Fleet Safety Technology at Covenant, has been named the Rand McNally 2024 Safety Leader of the Year, reflecting his leadership in developing the company's safety program [2][3] Company Achievements - The award recognizes Covenant's comprehensive safety programs aimed at protecting drivers, improving operational safety, and fostering a safety-first culture [3][4] - Covenant's safety program includes a proactive coaching model utilizing real-time data from SafetyDirect by Rand McNally to enhance driver safety [4][5] - The program emphasizes advanced data analysis, incorporating Pre- and Post-Event data and Diagnostic Trouble Code monitoring for better situational awareness and maintenance [5] Technology and Compliance - Covenant encourages the use of technologies such as Adaptive Cruise Control (ACC) to maintain safe following distances and improve driver comfort [5] - The recognition of Covenant's safety initiatives underscores the collective commitment of its drivers, safety team, and staff to create safer roads [6] Company Overview - Covenant Logistics Group, Inc. offers a range of transportation and logistics services across the United States, including expedited and dedicated truckload capacity, asset-light warehousing, and freight brokerage [6]

Financial Performance - Third quarter earnings reported at $0.94 per diluted share, with freight revenue growth of 2.1% year over year [94]. - Total revenue for the third quarter was $287.9 million, a decrease of 0.3% compared to the same quarter in 2023 [98]. - Operating income increased to $16.2 million from $15.1 million in the third quarter of 2023 [98]. - Net income from continuing operations was $12.9 million, or $0.93 per diluted share, compared to $13.4 million, or $0.98 per diluted share, in the prior year [98]. - Freight revenue for the three months ended September 30, 2024, was $258.6 million, a slight increase from $253.4 million in the same period of 2023, while total revenue decreased to $287.9 million from $288.7 million [116]. - Total revenue for the nine months ended September 30, 2024, increased to $854.1 million from $829.6 million in 2023, driven by a $34.6 million increase in Dedicated freight revenue [116]. - Total revenues for Q3 2024 were $287.885 million, slightly down from $288.721 million in Q3 2023, while total revenues for the nine months ended September 30, 2024, increased to $854.145 million from $829.588 million in the same period of 2023 [144]. - Operating income for Q3 2024 was $16.235 million, up from $15.141 million in Q3 2023, but down to $36.147 million for the nine months ended September 30, 2024, compared to $44.556 million in the same period of 2023 [144]. Revenue Breakdown - Asset-based segments contributed approximately 69% of total revenue, while asset-light segments contributed about 31% [95][96]. - Fuel surcharge revenue decreased to $29.3 million for the three months ended September 30, 2024, compared to $35.3 million in the same period of 2023, reflecting a $6.1 million decrease [116]. - Expedited revenue decreased by 4.8% in Q3 2024 due to a decline in average freight revenue per tractor per week and a $4.8 million decrease in fuel surcharge revenue compared to Q3 2023 [145]. - Dedicated revenue increased by 13.5% in Q3 2024, driven by a 167 (or 13.5%) average tractor increase and an 8.7% rise in average freight revenue per tractor per week compared to Q3 2023 [147]. - Managed Freight revenue decreased in Q3 2024 primarily due to a degraded spot market, partially offset by the Sims acquisition [149]. - Warehousing revenue increased in Q3 2024 due to customer rate increases compared to the same period in 2023 [149]. Expenses and Costs - Salaries, wages, and related expenses increased to $110.8 million for the three months ended September 30, 2024, representing 38.5% of total revenue, up from 35.4% in the same period of 2023 [118]. - Fuel expense for the three months ended September 30, 2024, was $28.5 million, accounting for 9.9% of total revenue, down from 12.2% in the same period of 2023 [120]. - Operations and maintenance for the three months ended September 30, 2024, was $17,690, compared to $16,984 for the same period in 2023, representing 6.1% of total revenue [126]. - Revenue equipment rentals and purchased transportation decreased to $64,434 for the three months ended September 30, 2024, down from $72,046 in 2023, accounting for 22.4% of total revenue [128]. - Insurance and claims for the three months ended September 30, 2024, was $12,241, a decrease from $13,074 in 2023, representing 4.3% of total revenue [131]. - Depreciation and amortization increased to $21,222 for the three months ended September 30, 2024, compared to $18,182 in 2023, making up 7.4% of total revenue [136]. - Interest expense for the nine months ended September 30, 2024, was $10,341, up from $5,530 in 2023, representing 1.2% of total revenue [140]. - The average cost of insurance and claims per mile decreased to 17.4 cents for the three months ended September 30, 2024, compared to 19.2 cents in 2023 [131]. Debt and Capital Expenditures - Total indebtedness decreased by $11.6 million to $236.7 million since December 31, 2023 [98]. - Leverage ratio as of September 30, 2024, was 1.76 [98]. - Total debt and lease obligations increased to $316.5 million as of September 30, 2024, from $293.5 million at December 31, 2023, primarily due to replacing older equipment [155]. - Net capital expenditures for the nine months ended September 30, 2024, totaled $77.5 million, a decrease from $143.0 million in the prior year period [158]. - The baseline expectation for net capital expenditures for the remainder of 2024 is between $15.0 million and $20.0 million [158]. Cash Flow and Shareholder Returns - Net cash flows provided by operating activities increased to $101.0 million for the nine months ended September 30, 2024, compared to $52.9 million for the same period in 2023 [160]. - Net cash flows used by investing activities were $104.2 million for the nine months ended September 30, 2024, down from $144.6 million in the same 2023 period [161]. - The company distributed a total of $4.3 million to stockholders in the first nine months of 2024 through dividends [159]. - The company distributed $1.5 million to stockholders through dividends during the quarter [98]. - Net cash flows provided by financing activities were approximately $36.1 million for the nine months ended September 30, 2024, compared to $30.4 million in the same 2023 period [162]. Operational Efficiency and Future Outlook - The company expects to continue managing idle time and tractor speeds while investing in more fuel-efficient technologies to improve operational efficiency [125]. - The company expects improved utilization, fuel economy, and maintenance costs to produce acceptable returns despite increased prices of new equipment [158]. - Future outlook indicates slow and steady improvements in the general freight market due to excess carrier capacity and soft volumes [99]. - The company expects to increase capital allocation towards Dedicated, Managed Freight, and Warehousing segments to enhance its position as a key partner for transportation and logistics needs [154]. - The company took delivery of approximately 691 new tractors and 757 new trailers while disposing of approximately 791 used tractors and 319 used trailers during the nine months ended September 30, 2024 [158]. Investments and Equity - The equity investment in TEL generated $4.0 million of pre-tax earnings in the third quarter of 2024, down from $5.3 million in the same period last year [98]. - Income from equity method investment decreased to $3.993 million for Q3 2024 from $5.335 million in Q3 2023, and for the nine months ended September 30, 2024, it decreased to $11.763 million from $16.659 million in the same period of 2023 [141]. - The company acquired a 49.0% interest in TEL, a tractor and trailer equipment leasing company, in May 2011, which has contributed to its financial results since then [112]. Accounting and Policy Changes - There have been no material changes to the company's critical accounting policies and estimates during the three and nine months ended September 30, 2024 [165].

Covenant Logistics Group, Inc. (NYSE:CVLG) Q3 2024 Earnings Conference Call October 24, 2024 10:00 AM ET Company Participants Tripp Grant - Chief Financial Officer Paul Bunn - President David Parker - Chief Executive Officer Conference Call Participants Scott Group - Wolfe Research Jason Seidl - TD Cowen Daniel Imbro - Stephens Jeff Kauffman - Vertical Research Partners Michael Vermut - Newland Capital Dan Moore - Scopus Operator Welcome to today's Covenant Logistics Group Third Quarter Earnings Release and ...

Exhibit 99.1 COVENANT LOGISTICS GROUP ANNOUNCES THIRD QUARTER FINANCIAL AND OPERATING RESULTS CHATTANOOGA, TENNESSEE – October 23, 2024 - 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 please ...

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 ...

CHATTANOOGA, Tenn., Oct. 02, 2024 (GLOBE NEWSWIRE) -- Covenant Logistics Group, Inc. (NYSE: CVLG) announced its plans to release its third quarter earnings after 4:00 p.m. Eastern time on Wednesday, October 23, 2024. Covenant Logistics Group, Inc. will hold a live conference call to discuss its third quarter earnings release on Thursday, October 24, 2024, 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 b ...