Covenant Logistics Group, Inc. (NASDAQ:CVLG) Q2 2023 Earnings Conference Call July 28, 2023 10:00 AM ET Company Participants Tripp Grant - Executive Vice President and Chief Financial Officer Paul Bunn - President and Chief Operating Officer David Parker - Founder and CEO Conference Call Participants Jason Seidl - TD Cowen Scott Group - Wolfe Research, LLC Jack Atkins - Stephens Barry Haimes - Sage Asset Management Operator Welcome to today's Covenant Logistics Group Second Quarter Earnings Release Conferen ...

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Nevada 88-0320154 (State or other jurisdiction of incorporation (I.R.S. Employer Identification No.) or organization) Securities registered pursuant to Section 12(b) of the Act: Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the ...

Covenant Logistics Group, Inc. (NASDAQ:CVLG) Q1 2023 Earnings Conference Call April 28, 2023 10:00 AM ET Company Participants James Grant - EVP & CFO Paul Bunn - President & COO David Parker - Chairman & CEO Conference Call Participants Jack Atkins - Stephens Inc. Bert Subin - Stifel, Nicolaus & Company Scott Group - Wolfe Research Elliot Alper - TD Cowen Operator Welcome to today's Covenant Logistics Group Q1 '23 Earnings Release Conference Call. Our host for today's call is Tripp Grant. [Operator Instruct ...

Title of each class Trading Symbol(s) Name of each exchange on which registered $0.01 Par Value Class A common stock CVLG The NASDAQ Global Select Market Commission file number 0-24960 Securities registered pursuant to Section 12(b) of the Act: Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. ☐ Yes ☒ No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller report ...

Covenant Logistics Group (NASDAQ:CVLG) Q4 2022 Earnings Conference Call January 26, 2022 10:00 AM ET Company Participants Tripp Grant - Executive Vice President & Chief Financial Officer Paul Bunn - Senior Executive Vice President & Chief Operating Officer David Parker - Chief Executive Officer Joey Hogan - President Conference Call Participants Jason Seidl - Cowen Jack Atkins - Stephens Bert Subin - Stifel Operator Welcome to today's Covenant Logistics Group Fourth Quarter Earnings Release Conference Call. ...

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 September 30, 2022 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: 0-24960 COVENANT LOGISTICS GROUP, INC. (Exact name of registrant as specified in its charter) Nevada 88-0320154 (State or other ...

Covenant Logistics Group Inc. (NYSE:CVLG) Q3 2022 Earnings Conference Call October 21, 2022 9:00 AM ET Company Participants David Parker - Chief Executive Officer Joey Hogan - President Paul Bunn - Senior Executive Vice President, Chief Operating Officer Tripp Grant - Executive Vice President, Chief Financial Officer Conference Call Participants Jason Seidl - Cowen Scott Group - Wolfe Research Jack Atkins - Stephens Bert Subin - Stifel Barry Haimes - Sage Asset Management Operator Welcome to today’s Covena ...

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The financial statements for the period ended June 30, 2022, show significant year-over-year growth in revenue and net income, with total assets increasing to $701.0 million and net income rising to $24.5 million in Q2 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2022, total assets grew to $701.0 million from $651.7 million at year-end 2021, primarily due to acquisitions and investments, while total liabilities rose to $345.0 million | Balance Sheet Items (in thousands) | June 30, 2022 (unaudited) | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $172,987 | $188,527 | | **Net Property and Equipment** | $357,644 | $346,483 | | **Goodwill** | $58,217 | $42,518 | | **Total Assets** | **$701,018** | **$651,662** | | **Total Current Liabilities** | $150,443 | $142,745 | | **Total Liabilities** | **$344,987** | **$301,963** | | **Total Stockholders' Equity** | **$356,031** | **$349,699** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2022, total revenue increased 23.8% year-over-year to $317.4 million, and net income grew 59.1% to $24.5 million, with diluted EPS reaching $1.56 | Metric (in thousands, except per share) | Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $317,377 | $256,324 | $608,962 | $477,213 | | **Operating Income** | $26,873 | $18,332 | $50,720 | $28,843 | | **Net Income** | $24,526 | $15,417 | $46,693 | $26,559 | | **Diluted EPS** | $1.56 | $0.91 | $2.86 | $1.56 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2022, net cash from operating activities more than doubled to $76.9 million, while cash was primarily used for the AAT acquisition and share repurchases | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Net cash from operating activities** | $76,903 | $34,123 | | **Net cash (used) by investing activities** | $(62,965) | $19,780 | | **Net cash (used) by financing activities** | $(17,887) | $(57,344) | | **Net change in cash** | $(3,949) | $(3,441) | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail segment performance, debt, leases, the AAT acquisition, and share repurchases, highlighting strong growth across segments and significant contributions from the TEL equity investment - The company acquired 100% of AAT Carriers, Inc. on February 9, 2022, for a total consideration of **$54.8 million**, including up to **$20.0 million** in contingent earnouts. AAT's results are reported within the Expedited segment[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) - The company's 49% interest in Transport Enterprise Leasing, LLC (TEL) contributed **$13.9 million** to pre-tax income in the first six months of 2022, more than double the **$6.3 million** from the same period in 2021[85](index=85&type=chunk)[165](index=165&type=chunk) - A new stock repurchase authorization of up to **$75.0 million** was approved on May 18, 2022. During the six months ended June 30, 2022, the company repurchased a total of **$43.4 million** of its common stock[100](index=100&type=chunk)[189](index=189&type=chunk) | Segment Performance (Six Months Ended June 30, in thousands) | Revenue 2022 | Revenue 2021 | Operating Income 2022 | Operating Income 2021 | | :--- | :--- | :--- | :--- | :--- | | **Expedited** | $220,440 | $165,849 | $23,941 | $16,436 | | **Dedicated** | $185,714 | $157,314 | $5,523 | $(1,990) | | **Managed Freight** | $166,432 | $123,032 | $19,458 | $12,261 | | **Warehousing** | $36,376 | $31,018 | $1,798 | $2,136 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported record Q2 adjusted EPS of $1.63 despite cost inflation, with all segments performing well and a full-year adjusted EPS forecast of at least $5.00 [Executive Overview and Outlook](index=29&type=section&id=Executive%20Overview%20and%20Outlook) The company achieved its highest quarterly earnings in Q2 2022 with adjusted EPS of $1.63, and anticipates full-year adjusted EPS of at least $5.00 due to revenue growth, segment improvement, and cost control - Achieved the highest earnings for any quarter in the Company's history, with non-GAAP adjusted earnings per share of **$1.63**[106](index=106&type=chunk) - The company expects a combination of higher revenue, improvement in the Dedicated segment, contribution from the AAT acquisition, cost control, and stock repurchases to generate adjusted EPS for the full year of at least **$5.00 per share**[113](index=113&type=chunk) - The equity investment in TEL contributed **$7.1 million** of pre-tax earnings in Q2 2022, a significant increase from **$3.4 million** in Q2 2021[112](index=112&type=chunk) [Results of Consolidated Operations](index=35&type=section&id=Results%20of%20Consolidated%20Operations) Total revenue for Q2 2022 increased due to freight revenue growth across all segments, while salaries and wages decreased as a percentage of revenue, and net fuel expense declined despite higher fuel prices | Expense as % of Freight Revenue | Q2 2022 | Q2 2021 | YTD 2022 | YTD 2021 | | :--- | :--- | :--- | :--- | :--- | | **Salaries, wages, and related** | 37.9% | 38.1% | 37.5% | 39.5% | | **Fuel expense** | 18.2% | 11.4% | 16.0% | 11.4% | | **Net fuel expense** | 0.5% | 1.8% | 1.0% | 1.9% | | **Insurance and claims** | 5.1% | 4.1% | 4.3% | 4.0% | - Insurance and claims per mile cost increased to **18.5 cents** for Q2 2022 from **12.8 cents** in Q2 2021, primarily due to unfavorable development of a small number of prior period claims[151](index=151&type=chunk) [Results of Segment Operations](index=42&type=section&id=Results%20of%20Segment%20Operations) All four segments contributed to revenue growth, driven by increased average freight revenue per tractor per week in Expedited, higher average rate per total mile in Dedicated, and growth in Managed Freight and Warehousing - Expedited segment's Q2 revenue increase was driven by a **17.7%** increase in average freight revenue per tractor per week, resulting from a **21.5%** increase in average rate per total mile[169](index=169&type=chunk) - Dedicated segment's Q2 revenue increased due to a **24.5%** increase in average rate per total mile, which offset a **7.6%** decrease in the average number of tractors[171](index=171&type=chunk) - Managed Freight revenue increased due to handling overflow freight from truckload operations and growth in revenue per load[173](index=173&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $22.5 million in working capital and $85.7 million available under its credit facility, with net capital expenditures for H1 2022 totaling $63.0 million - As of June 30, 2022, the company had working capital of **$22.5 million** and available borrowing capacity of **$85.7 million** under its Credit Facility[178](index=178&type=chunk)[181](index=181&type=chunk) - Net capital expenditures for the first six months of 2022 totaled **$63.0 million**, largely due to the AAT acquisition. The forecast for the remainder of 2022 is a range of **$10.0 million to $20.0 million**[182](index=182&type=chunk)[183](index=183&type=chunk) - The company repurchased **$43.4 million** of its Class A common stock in the first six months of 2022 and distributed **$2.0 million** in dividends[183](index=183&type=chunk)[188](index=188&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company states that its market risks have not materially changed from those reported in its Form 10-K for the year ended December 31, 2021 - There have been no material changes to the company's market risks since the 2021 year-end report[192](index=192&type=chunk) [Item 4. Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2022, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of June 30, 2022, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[194](index=194&type=chunk) - No changes occurred in the company's internal control over financial reporting during the second quarter of 2022 that have materially affected, or are reasonably likely to materially affect, internal controls[197](index=197&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=49&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the information on legal proceedings detailed in Note 10, "Commitments and Contingencies," of the condensed consolidated financial statements - Information regarding legal proceedings is provided in Note 10 of the financial statements, which discusses several lawsuits that have been settled or are being defended[198](index=198&type=chunk)[76](index=76&type=chunk)[78](index=78&type=chunk) [Item 1A. Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) This section refers the reader to the detailed discussion of risks and uncertainties associated with the company's business as described in "Item 1A. Risk Factors" of the Form 10-K for the year ended December 31, 2021 - The company directs investors to its 2021 Form 10-K for a comprehensive description of the risks and uncertainties associated with its business[200](index=200&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2022, the company repurchased 1,316,251 shares of its Class A common stock, with a new $75.0 million authorization approved in May 2022, leaving approximately $61.6 million available | Period (2022) | Total Shares Purchased | Average Price Paid | Value Remaining in Program ($) | | :--- | :--- | :--- | :--- | | April 1-30 | 510,450 | $19.59 | $13,219,309 | | May 1-31 | 311,534 | $21.91 | $73,373,910 | | June 1-30 | 494,267 | $23.75 | $61,635,068 | | **Total Q2** | **1,316,251** | | **$61,635,068** | - On May 18, 2022, the Board approved a new stock repurchase authorization of up to **$75.0 million**, replacing all prior authorizations[203](index=203&type=chunk) [Item 3. Defaults Upon Senior Securities](index=51&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable. The company reports no defaults upon senior securities - The company reported that this item is not applicable[205](index=205&type=chunk) [Item 4. Mine Safety Disclosures](index=51&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable. The company reports no mine safety disclosures - The company reported that this item is not applicable[206](index=206&type=chunk) [Item 5. Other Information](index=51&type=section&id=Item%205.%20Other%20Information) Not applicable. The company reports no other information - The company reported that this item is not applicable[207](index=207&type=chunk) [Item 6. Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amendments to credit agreements, CEO and CFO certifications, and XBRL data files - Exhibits filed include the Nineteenth Amendment to the Credit Agreement, CEO and CFO certifications (Sections 302 and 906), and interactive data files (XBRL)[209](index=209&type=chunk)

Financial Data and Key Metrics Changes - Freight revenue grew 15% to $267 million compared to the same quarter in 2021 [7] - Adjusted earnings per share increased 70% to $1.63 per share from the year-ago quarter [7] - Operating income for asset-based truckload operations improved by 76% despite increased operating costs [5] - Net indebtedness increased by only $10 million after utilizing $28.5 million for share repurchases, finishing the quarter with a leverage ratio of 0.43x and a debt to equity ratio of 14.6% [7] Business Line Data and Key Metrics Changes - Asset-light businesses (managed freight and warehouse) comprised 37% of total freight revenue and 34% of consolidated adjusted operating profit [8] - Managed freight revenue growth is beginning to cool as market demand softens, but net revenue margin remains strong [8] - Expedited division revenue grew 23% versus the year-ago quarter, contributing 35% of consolidated freight revenue and 55% of adjusted operating profit [9] - Dedicated division revenue per truck per week grew 17% versus the year-ago quarter, contributing 28% of consolidated freight revenue [9] Market Data and Key Metrics Changes - The demand environment was good in Q2 but softer than Q1 and Q4 of the previous year, with July typically being a weaker month [21] - The company expects a school rebound in August, which may lead to an uptick in demand [36] Company Strategy and Development Direction - The company is focused on maximizing revenue and margin opportunities in its asset-light group, emphasizing talent acquisition and technology enhancements [8] - The management is confident that 2023 will be a breakout year for the company, driven by strategic investments and a shift towards less cyclical industries [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges potential market headwinds from inflationary pressures and softening freight demand but remains optimistic about the second half of 2022 [11] - The company is confident in maintaining strong performance despite economic challenges, with expectations for continued cash generation to maximize shareholder opportunities [11] Other Important Information - The TEL leasing company investment produced record results, contributing $0.33 per diluted share, with revenue growing 33% and pretax operating profit increasing by 123% compared to the year-ago quarter [10] - The company plans to continue share repurchases as long as the stock trades at a lower tangible book multiple [18][19] Q&A Session Summary Question: Tailwinds and headwinds for the second half of the year - Management expects strong gains on the sale of equipment in the second half, with insurance costs normalizing [14] Question: Demand environment and contract pricing - Demand was good in Q2 but softer in July, with contract pricing remaining flattish [16][21] Question: Share repurchase program activity - The company plans to continue share repurchases but expects a slowdown in the second half of the year [19] Question: Freight categories and customer feedback - The company has not identified significant weaknesses in freight categories, with business from Walmart performing well [36] Question: Expectations for expedited margins - Management aims to maintain expedited margins in the low 80s, with efforts to narrow the range of operating ratios [24] Question: Trough earnings power - Management estimates a 25% to 30% reduction from peak to trough earnings [28] Question: Future acquisitions - The company is open to acquiring niche, high-margin businesses that align strategically with existing operations [32]

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 March 31, 2022 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: 0-24960 COVENANT LOGISTICS GROUP, INC. (Exact name of registrant as specified in its charter) Nevada 88-0320154 (State or other jur ...