UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-42192 COVENANT LOGISTICS GROUP, INC. (Exact name of registrant as specified in its charter) Nevada 88-0320154 (State or other ju ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy. Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. A ...

CHATTANOOGA, Tenn., July 26, 2024 (GLOBE NEWSWIRE) -- Covenant Logistics Group, Inc. (NASDAQ/GS: CVLG) ("Covenant" or the "Company") today announced that it is transferring the listing of its Class A common stock, $0.01 par value per share (the "Class A common stock"), to the New York Stock Exchange ("NYSE") from The NASDAQ Global Select Market ("NASDAQ"). Covenant expects to begin trading on the NYSE at market open on Tuesday, August 6, 2024, under its existing ticker symbol, "CVLG". Covenant expects its C ...

CHATTANOOGA, Tenn., July 26, 2024 (GLOBE NEWSWIRE) -- Covenant Logistics Group, Inc. (NASDAQ/GS: CVLG) ("Covenant" or the "Company") today announced that it is transferring the listing of its Class A common stock, $0.01 par value per share (the "Class A common stock"), to the New York Stock Exchange ("NYSE") from The NASDAQ Global Select Market ("NASDAQ"). Covenant expects to begin trading on the NYSE at market open on Tuesday, August 6, 2024, under its existing ticker symbol, "CVLG". Covenant expects its C ...

Covenant Logistics Group, Inc. (NYSE:CVLG) Q2 2024 Earnings Conference Call July 25, 2024 10:00 AM ET Company Participants Tripp Grant - Executive Vice President & Chief Financial Officer Paul Bunn - President & Chief Operating Officer David Parker - Founder & Chief Executive Officer Conference Call Participants Scott Group - Wolfe Research Jason Seidl - TD Cowen Daniel Imbro - Stephens Jeff Kaufman - Vertical Research Partners Michael Vermut - Newland Capital Operator Welcome to today's Covenant Logistics ...

[Financial and Operating Results for Q2 2024](index=1&type=section&id=Financial%20and%20Operating%20Results%20for%20Q2%202024) Covenant Logistics Group reported Q2 2024 diluted EPS of $0.88 and adjusted EPS of $1.04, driven by a 5.3% freight revenue increase and 15.0% adjusted operating income growth [Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Covenant Logistics Group reported Q2 2024 diluted EPS of $0.88 and adjusted EPS of $1.04, driven by a 5.3% freight revenue increase and 15.0% adjusted operating income growth Q2 2024 Key Financial Highlights | Financial Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | **Total Revenue** | $287.5M | $274.0M | | **Freight Revenue** | $256.5M | $243.7M | | **Operating Income** | $15.6M | $11.8M | | **Adjusted Operating Income** | $18.7M | $16.2M | | **Net Income** | $12.2M | $12.3M | | **Adjusted Net Income** | $14.5M | $14.4M | | **EPS (Diluted)** | $0.88 | $0.91 | | **Adjusted EPS (Diluted)** | $1.04 | $1.07 | - The company's **49% equity method investment** in Transport Enterprise Leasing (TEL) contributed pre-tax net income of **$4.1 million** (**$0.23 per share**), a decrease from **$5.4 million** (**$0.29 per share**) in Q2 2023, attributed to a weaker used equipment market and higher interest expenses[38](index=38&type=chunk) - Management highlighted the company's ability to navigate a prolonged down cycle by focusing on value-added opportunities, allocating investments to profitable operations, and controlling costs[14](index=14&type=chunk) [Consolidated Financial Performance](index=7&type=section&id=Consolidated%20Financial%20Performance) Q2 2024 saw total revenue increase by 4.9% to $287.5 million and operating income rise to $15.6 million, while net income remained flat at $12.2 million Consolidated Statement of Income (Three Months Ended June 30, $s in thousands) | ($s in 000s) | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | **Freight revenue** | $256,512 | $243,704 | 5.3% | | **Total revenue** | $287,497 | $274,016 | 4.9% | | **Total operating expenses** | $271,920 | $262,233 | 3.7% | | **Operating income** | $15,577 | $11,783 | 32.2% | | **Net income** | $12,194 | $12,293 | (0.8%) | | **Net income per diluted share** | $0.88 | $0.91 | (3.3%) | - Key operating expense increases included **Salaries, wages, and related expenses (up 5.0%)**, **Insurance and claims (up 55.3%)**, and **Depreciation and amortization (up 16.8%)**, partially offset by decreases in Fuel expense and Revenue equipment rentals[11](index=11&type=chunk) - The company recorded a **loss on disposition of property and equipment of $0.8 million** in Q2 2024, a reversal from a **gain of $2.0 million** in Q2 2023, reflecting headwinds in the used equipment market[11](index=11&type=chunk)[5](index=5&type=chunk) [Segment Performance Analysis](index=2&type=section&id=Segment%20Performance%20Analysis) Segment performance was driven by strong 18.2% freight revenue growth in Dedicated Truckload and 10.0% in Combined Truckload, with improved profitability in Warehousing and Managed Freight Freight Revenue by Segment (Q2 2024 vs Q2 2023, $s in thousands) | Segment ($s in 000's) | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Expedited - Truckload | $88,918 | $85,969 | 3.4% | | Dedicated - Truckload | $81,853 | $69,265 | 18.2% | | **Combined Truckload** | **$170,771** | **$155,234** | **10.0%** | | Managed Freight | $60,366 | $63,281 | (4.6%) | | Warehousing | $25,375 | $25,189 | 0.7% | [Combined Truckload](index=2&type=section&id=Combined%20Truckload) Combined Truckload freight revenue increased by 10.0% to $170.8 million, driven by a 9.1% rise in average tractors, despite increased operating costs per mile Combined Truckload Operating Statistics (Q2, $s in millions) | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Freight Revenue | $170.8M | $155.2M | 10.0% | | Operating Income | $10.2M | $9.1M | 12.8% | | Adj. Operating Income | $12.8M | $13.0M | (2.0%) | | Avg. Freight Revenue per Tractor per Week | $5,726 | $5,678 | 0.8% | | Weighted Avg. Tractors for Period | 2,294 | 2,103 | 9.1% | - Insurance and claims expense per mile increased by approximately **56% year-over-year**, mainly due to higher current period claims and the settlement of a large prior period claim[43](index=43&type=chunk) - Fixed expenses related to revenue equipment increased by **8% on a per-mile basis** due to operating newer, more costly equipment and losses on the sale of used equipment[5](index=5&type=chunk) [Expedited Truckload](index=2&type=section&id=Expedited%20Truckload) Expedited segment freight revenue grew 3.4% to $88.9 million, but operating income decreased to $4.8 million due to lower average freight revenue per tractor per week Expedited Truckload Operating Metrics (Q2, $s in millions) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Freight Revenue | $88.9M | $86.0M | | Operating Income | $4.8M | $5.8M | | Avg. Freight Revenue per Tractor per Week | $7,516 | $7,734 | | Weighted Avg. Tractors for Period | 910 | 855 | [Dedicated Truckload](index=2&type=section&id=Dedicated%20Truckload) Dedicated segment freight revenue surged 18.2% to $81.9 million, with operating income more than doubling to $5.5 million, driven by increased tractors and revenue per tractor Dedicated Truckload Operating Metrics (Q2, $s in millions) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Freight Revenue | $81.9M | $69.3M | | Operating Income | $5.5M | $3.2M | | Avg. Freight Revenue per Tractor per Week | $4,549 | $4,269 | | Weighted Avg. Tractors for Period | 1,384 | 1,248 | [Managed Freight](index=3&type=section&id=Managed%20Freight) Managed Freight revenue decreased by 4.6% to $60.4 million, but operating income significantly improved by 71.2% to $3.3 million due to cost management Managed Freight Financials (Q2, $s in thousands) | ($000s) | 2024 | 2023 | | :--- | :--- | :--- | | Freight Revenue | $60,366 | $63,281 | | Operating Income | $3,330 | $1,945 | | Adj. Operating Income | $3,594 | $2,070 | [Warehousing](index=3&type=section&id=Warehousing) Warehousing segment freight revenue increased slightly by 0.7% to $25.4 million, with operating income more than doubling to $2.0 million due to cost management Warehousing Financials (Q2, $s in thousands) | ($000s) | 2024 | 2023 | | :--- | :--- | :--- | | Freight Revenue | $25,375 | $25,189 | | Operating Income | $2,029 | $780 | | Adj. Operating Income | $2,288 | $1,118 | [Financial Condition, Liquidity, and Capital Expenditures](index=4&type=section&id=Financial%20Condition,%20Liquidity,%20and%20Capital%20Expenditures) Net indebtedness increased to $273.3 million as of June 30, 2024, driven by $55.4 million in capital expenditures, while the company maintained $89.2 million in available liquidity Selected Balance Sheet Data ($s in thousands) | ($s in '000's) | 6/30/2024 | 12/31/2023 | | :--- | :--- | :--- | | Total assets | $994,987 | $954,438 | | Total stockholders' equity | $419,373 | $403,420 | | Net Indebtedness | $273,332 | $248,329 | | Net Indebtedness to Capitalization Ratio | 39.5% | 38.1% | - At quarter-end, the company had **$1.3 million in cash** and no borrowings outstanding under its ABL credit facility, with **$89.2 million of available borrowing capacity**[47](index=47&type=chunk) - The company's capital investment plan remains focused on growing the Dedicated business and maintaining a modern fleet to optimize uptime, reduce costs, and improve driver satisfaction, with the average age of tractors remaining steady at **21 months**[21](index=21&type=chunk)[8](index=8&type=chunk) [Outlook and Forward-Looking Statements](index=4&type=section&id=Outlook%20and%20Forward-Looking%20Statements) Management anticipates a slow freight market recovery, focusing on strategic initiatives to enhance value and efficiency, while acknowledging risks associated with forward-looking statements - Management expressed encouragement with the company's **strong financial performance** during a weak freight market, attributing it to structural changes made over the last four years[9](index=9&type=chunk) - The company's strategic focus is on executing its plan to capitalize on opportunities that add value for customers and create enterprise-wide efficiencies[9](index=9&type=chunk) - The press release contains forward-looking statements subject to various risks and uncertainties, including economic factors, competition, driver retention, fuel costs, and regulatory changes[29](index=29&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) The company provides non-GAAP measures like adjusted operating income, net income, and EPS to offer supplemental insights into profitability and performance, excluding specific non-recurring items - Management uses non-GAAP measures internally to assess profitability and remove items that may not be indicative of core performance from period to period[23](index=23&type=chunk) GAAP Net Income to Non-GAAP Adjusted Net Income Reconciliation (Q2, $s in thousands) | ($s in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | **GAAP Net income** | **$12,194** | **$12,293** | | Amortization of intangibles | $2,373 | $1,802 | | Contingent consideration liability adjustment | $720 | $492 | | Acquisition transaction costs and executive retirement bonus | - | $2,158 | | Other adjustments & tax effects | ($835) | ($1,900) | | **Non-GAAP Adjusted net income** | **$14,452** | **$14,443** | GAAP EPS to Non-GAAP Adjusted EPS Reconciliation (Q2, per diluted share) | (per diluted share) | 2024 | 2023 | | :--- | :--- | :--- | | **GAAP Diluted EPS** | **$0.88** | **$0.91** | | Tax effected adjustments | $0.16 | $0.16 | | **Non-GAAP Adjusted EPS** | **$1.04** | **$1.07** |

For further information contact: M. Paul Bunn, President PBunn@covenantlogistics.com Tripp Grant, Chief Financial Officer TGrant@covenantlogistics.com For copies of Company information contact: Brooke McKenzie, Executive Assistant BMcKenzie@covenantlogistics.com Covenant Logistics Group, Inc., through its subsidiaries, offers a portfolio of transportation and logistics services to customers throughout the United States. Primary services include asset-based expedited and dedicated truckload capacity, as well ...

Group 1 - Covenant Logistics Group has been recognized as one of the winners of the 2024 Top 3PL & Cold Storage Providers Award by Food Logistics, highlighting its excellence in the logistics and transportation industry [1][2] - The award reflects Covenant's commitment to leveraging advanced technologies, maintaining stringent quality controls, and fostering strong partnerships with clients [2] - A significant 76% of the award winners plan to invest in software solutions this year, indicating a forward-thinking approach among 3PLs and cold storage providers [2] Group 2 - The majority of this year's award winners provide a variety of 3PL services, with 80% offering LTL/TL services, 79% in refrigerated trucking, and 77% in truckload brokerage [2] - Key cold storage services offered by the winners include cold storage (78%), cross docking (73%), warehousing/distribution management (72%), and fulfillment and EDI capabilities (70%) [2] - Covenant Logistics offers a portfolio of transportation and logistics services, including expedited and dedicated truckload capacity, asset-light warehousing, transportation management, and freight brokerage [4]

CHATTANOOGA, Tenn., June 10, 2024 (GLOBE NEWSWIRE) -- Food Logistics named Covenant Logistics Group as one of the winners of this year's Top 3PL & Cold Storage Providers Award, which recognizes leading 3PLs and cold storage providers in the cold food and beverage industry. "Being named a 2024 Top 3PL & Cold Storage Provider by Food Logistics is a testament to our unwavering dedication to excellence in the logistics and transportation industry. At Covenant Logistics, we pride ourselves on delivering top-tier ...

CHATTANOOGA, Tenn., June 06, 2024 (GLOBE NEWSWIRE) -- Covenant Logistics Group, Inc., a leading provider of transportation and logistics services in the U.S., is proud to announce the release of its 2023 Corporate Social Responsibility Report, a detailed report highlighting the company's unwavering commitment to sustainability, environmental responsibility, and community engagement. This report provides invaluable insights into Covenant's strategic initiatives to reduce environmental impact and promote soci ...