Financial Data and Key Metrics Changes - The company reported revenue approximately the same as the previous year despite operating with a fleet nearly 18% smaller [4] - A significant reduction in net debt was achieved, with over $200 million paid down in debt and lease obligations since December 31, 2020 [4] - The adjusted operating income for the quarter was reported at $47.8 million, which included a $44 million non-cash charge related to discontinued factoring operations [5][6] Business Line Data and Key Metrics Changes - The Expedited truckload segment's revenue, excluding fuel surcharges, decreased by 13.9%, primarily due to a 27.5% decrease in average operating fleet [6] - The Dedicated truckload segment's revenue decreased by 14.2% to $62 million, driven by a 10.5% reduction in average operating fleet and a decline in total miles per unit [8] - The Managed Freight segment's operating revenue increased by 51.3% to $64.9 million, attributed to a robust freight market and improved cost structure [9] - The Warehousing segment's operating revenue increased by 25.8% to $14.6 million, primarily due to new customer business [10] Market Data and Key Metrics Changes - The freight market remained strong across all segments, driven by expanding economic activity and inventory restocking [3] - The company faced significant challenges in driver recruitment and retention, exacerbated by COVID-19, impacting operational efficiency [12] Company Strategy and Development Direction - The company aims to grow its Dedicated, Managed Freight, and Warehousing segments while reducing unnecessary overhead and improving safety and productivity [13] - A focus on diversifying the customer base to reduce seasonal and cyclical exposure is part of the strategic plan [13] - The company announced a share repurchase program to allocate capital effectively, reflecting confidence in its financial flexibility [15] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing challenges in driver availability and the impact of COVID-19 on operations [38] - The outlook for rate increases in 2021 is positive, with expectations of 6% to 8% increases on the expedited side and 3% to 4% on the dedicated side [44] - The company anticipates continued margin improvement as revenue increases are expected to outpace cost increases [66] Other Important Information - The company implemented the largest pay increase in its history for the Expedited driving force to attract and retain drivers [14] - The transition of dedicated contracts is expected to improve profitability, with plans to renegotiate contracts that currently yield insufficient returns [28] Q&A Session Summary Question: What terms need to be changed for dedicated contracts? - Management indicated that about half of the dedicated contracts are operating under insufficient terms, primarily related to pricing and other conditions [24][26] Question: How far below market are the dedicated contracts currently? - It was noted that the pricing for some contracts is currently 4% to 5% below market rates [30][31] Question: What is the outlook for rate increases in 2021? - Management confirmed that the rate environment is strong, with expectations for significant increases in the second quarter [44][45] Question: How is the company managing driver availability issues? - The company is actively working to improve driver recruitment and retention, with a focus on increasing the number of student hires [39][61] Question: What is the expected free cash flow for the year? - The company anticipates generating over $50 million in free cash flow, even after accounting for potential indemnification payments [53][55]

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, 2020 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 2020 Earnings Conference Call October 27, 2020 11:00 AM ET Company Participants Paul Bunn - EVP, CFO & Secretary Joey Hogan - Co-President & Chief Administrative Officer John Tweed - Co-President & COO David Parker - Chairman & CEO Conference Call Participants Jason Seidl - Cowen and Company David Ross - Stifel, Nicolaus & Company Scott Group - Wolfe Research Jack Atkins - Stephens Inc. Operator Excuse me, everyone, we now have all of our speakers in conference ...

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company reported a net loss of $22.3 million for Q2 2020, a significant downturn from $6.1 million net income in Q2 2019, driven by revenue decline and $26.6 million asset impairment. [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2020, total assets decreased to $861.1 million from $881.6 million, while total liabilities increased to $554.2 million and stockholders' equity decreased to $306.9 million. Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$861,089** | **$881,640** | | Cash and cash equivalents | $67,127 | $43,591 | | Net property and equipment | $392,952 | $517,203 | | Assets held for sale | $66,005 | $12,010 | | **Total Liabilities** | **$554,158** | **$531,529** | | Total debt (current & long-term) | $270,114 | $254,554 | | **Total Stockholders' Equity** | **$306,931** | **$350,111** [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2020 total revenue declined 11.7% YoY to $191.7 million, resulting in a net loss of $22.3 million, significantly impacted by a $26.6 million asset impairment charge. Q2 and H1 2020 vs 2019 Operating Results (in thousands, except per share data) | Metric | Q2 2020 | Q2 2019 | H1 2020 | H1 2019 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$191,689** | **$217,040** | **$402,502** | **$434,373** | | Freight Revenue | $179,564 | $192,659 | $369,145 | $386,573 | | Operating (Loss) Income | $(28,950) | $7,030 | $(30,404) | $10,976 | | **Net (Loss) Income** | **$(22,343)** | **$6,071** | **$(24,556)** | **$10,504** | | Net (Loss) Income per Share | $(1.31) | $0.33 | $(1.40) | $0.57 | - A significant impairment charge of **$26.6 million** on long-lived property, equipment, and right-of-use assets was recorded in Q2 2020, heavily contributing to the operating loss[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2020, net cash from operating activities was $24.1 million, while investing activities provided $4.1 million, a significant shift from a $65.3 million use in 2019. Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2020 | 2019 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$24,102** | **$23,597** | | **Net cash provided by (used in) investing activities** | **$4,083** | **$(65,336)** | | **Net cash (used in) provided by financing activities** | **$(4,649)** | **$47,435** | | Net change in cash and cash equivalents | $23,536 | $5,696 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the company's name change, the Factoring segment's classification as discontinued operations and subsequent sale, and significant restructuring initiatives leading to $26.6 million in asset impairments. - The company changed its name from Covenant Transportation Group, Inc. to **Covenant Logistics Group, Inc.** on July 1, 2020[22](index=22&type=chunk) - The Factoring reportable segment (TFS) was classified as a discontinued operation as of June 30, 2020, and was sold on July 8, 2020, with a dispute arising with the purchaser regarding approximately **$66.0 million** of the acquired assets[36](index=36&type=chunk)[42](index=42&type=chunk)[108](index=108&type=chunk) - In Q2 2020, the company undertook significant restructuring, including fleet reduction, terminal sales, and management changes, resulting in a **$26.6 million impairment charge** and other related costs[55](index=55&type=chunk)[57](index=57&type=chunk) - The company's Board approved a **$20.0 million stock repurchase program** in February 2020, repurchasing **1.4 million shares for $17.5 million** before suspending the program in March 2020 due to the COVID-19 pandemic[102](index=102&type=chunk) [Management's Discussion and Analysis (MD&A)](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses significant Q2 2020 restructuring, resulting in $29.2 million net strategic adjustments, and the impact of the COVID-19 pandemic, with an outlook focused on fleet optimization, debt reduction, and margin improvement. [Executive Overview and Outlook](index=29&type=section&id=Executive%20Overview%20and%20Outlook) Q2 2020 was marked by significant restructuring to focus on core profitable areas, leading to **$29.2 million in net strategic adjustments**, including a $5.7 million gain on a terminal sale and $34.9 million in various expense items. - The company made significant progress on restructuring to focus on areas with consistent, acceptable margins, resulting in lower overhead costs and a de-leveraged balance sheet[112](index=112&type=chunk) Summary of Infrequent Transactions in Q2 2020 (in millions) | Item | Amount | | :--- | :--- | | **Gain Item:** | | | Gain on sale of Hutchins, TX terminal | $5.7 | | **Expense Items:** | | | Impairment of revenue generating equipment | $17.6 | | Impairment of real estate & tangible assets | $9.8 | | Employee separation costs | $1.8 | | Abandonment of IT infrastructure | $1.1 | | Abandonment/change in useful life of intangibles | $1.3 | | Increase in allowance for bad debt | $2.6 | | Contract exit costs & professional fees | $0.7 | | **Net Strategic Restructuring Adjustments** | **$29.2** | - Goals for the remainder of 2020 include optimizing fleet size, monetizing assets held for sale to pay down debt, allocating assets to higher-margin operations, and lowering fixed costs[120](index=120&type=chunk) [Results of Consolidated Operations](index=33&type=section&id=Results%20of%20Consolidated%20Operations) Q2 2020 total revenue fell 11.7% YoY to $191.7 million, with operating expenses significantly higher due to one-time restructuring costs, including a $26.6 million impairment charge, and increased insurance and general supplies expenses. - Q2 2020 freight revenue decreased by **$13.1 million (6.8%) YoY**, primarily from a **$12.0 million decrease in Dedicated** and a **$5.5 million decrease in Highway Services**, partially offset by a **$4.4 million increase in Managed Freight**[139](index=139&type=chunk) - Insurance and claims costs increased **10.4% in Q2 2020 YoY** due to the erosion of excess insurance coverage, higher cost per claim, and increased fixed premiums, despite a **$7.3 million premium refund** from a policy commutation[164](index=164&type=chunk)[166](index=166&type=chunk) - General supplies and expenses increased by **$4.3 million (60.1%) in Q2 2020 YoY**, mainly due to additional reserves for uncollectible accounts receivable and legal fees related to class action litigation and restructuring[171](index=171&type=chunk)[174](index=174&type=chunk) - Depreciation expense decreased due to a smaller fleet, but this was offset by increased amortization expense resulting from a change in the useful life of the Landair trade name and termination of a non-compete agreement[177](index=177&type=chunk) [Results of Segment Operations](index=41&type=section&id=Results%20of%20Segment%20Operations) In Q2 2020, Highway Services and Dedicated segments experienced revenue declines and significant operating losses due to fleet reductions and restructuring impacts, while Managed Freight revenue increased from brokerage opportunities. Segment Operating (Loss) Income (in thousands) | Segment | Q2 2020 | Q2 2019 | H1 2020 | H1 2019 | | :--- | :--- | :--- | :--- | :--- | | Highway Services | $(12,809) | $1,667 | $(14,165) | $827 | | Dedicated | $(13,196) | $3,514 | $(14,921) | $5,623 | | Managed Freight | $(2,945) | $1,849 | $(1,318) | $4,526 | | **Total Operating (Loss) Income** | **$(28,950)** | **$7,030** | **$(30,404)** | **$10,976** | - The decrease in Dedicated revenue was driven by an **8.6% decrease in average tractors** and an **8.7% decrease in average freight revenue per tractor per week**[195](index=195&type=chunk) - Managed Freight revenue grew by **$4.4 million YoY**, primarily due to increased opportunities in the brokerage market related to COVID-19, though this was partially offset by decreases in TMS revenue[196](index=196&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained adequate liquidity with **$180.2 million working capital** and **$58.3 million available borrowing capacity** as of June 30, 2020, reflecting fleet reduction and asset sales, and temporarily deferred principal payments on **$177.3 million of debt**. - As of June 30, 2020, the company had working capital of **$180.2 million** and available borrowing capacity of **$58.3 million** under its Credit Facility[204](index=204&type=chunk)[207](index=207&type=chunk) - The fleet plan for the remainder of 2020 includes delivering **304 new tractors** and disposing of **516 used tractors** and **882 used trailers**, reducing the average operational fleet size[208](index=208&type=chunk) - In April 2020, the company executed a modification on certain equipment notes to make interest-only payments for 90 days, extending the due date of **$177.3 million of debt** by three months to improve liquidity[210](index=210&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks from changes in fuel prices and interest rates, with a $1.00 increase in diesel price estimated to decrease net income by $0.8 million, and a 1% interest rate increase reducing net income by less than $0.1 million. - A **$1.00 increase in the price per gallon of diesel fuel** would decrease annual net income by an estimated **$0.8 million**, after accounting for fuel surcharge recovery and existing hedges[223](index=223&type=chunk) - A **1% increase in interest rates** on the company's variable-rate debt would reduce annual net income by less than **$0.1 million**, with the majority of debt at fixed rates or hedged[224](index=224&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of June 30, 2020, due to a material weakness in internal control over financial reporting related to the Transport Financial Solutions (TFS) subsidiary, which was eliminated upon its sale. - A material weakness was identified in internal controls related to credit approval and monitoring within the Transport Financial Solutions (TFS) subsidiary[227](index=227&type=chunk)[228](index=228&type=chunk) - Due to the material weakness, the CEO and CFO concluded that disclosure controls and procedures were not effective as of June 30, 2020[226](index=226&type=chunk) - Management believes the material weakness was eliminated upon the sale of the TFS subsidiary on July 8, 2020, as the issue was isolated to that unit's systems and processes[232](index=232&type=chunk)[233](index=233&type=chunk) [PART II OTHER INFORMATION](index=46&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is a defendant in several legal proceedings, including two class-action lawsuits in California alleging wage and hour violations for drivers and a "no poaching conspiracy," which the company intends to vigorously defend. - The company is defending a putative class-action lawsuit in California (Tabizon case) alleging failure to properly pay drivers for rest breaks and other wage-related claims[236](index=236&type=chunk)[237](index=237&type=chunk) - A separate lawsuit (Markson case) names the company as a co-defendant in an alleged "no poaching conspiracy" related to the hiring of new drivers in California[239](index=239&type=chunk) [Risk Factors](index=47&type=page&id=Item%201A.%20Risk%20Factors) The company highlights significant risks, including potential for increased insurance expenses due to aggregate limit erosion, the previously identified material weakness in internal controls, and a dispute with the purchaser of its TFS assets. - A key risk is the erosion of aggregate insurance policy limits, which could lead to operating with less coverage and incurring additional expenses for claims or policy reinstatement[242](index=242&type=chunk)[243](index=243&type=chunk) - The company is involved in a dispute with the purchaser of its TFS assets over approximately **$66.0 million** of the assets, with an uncertain outcome that could materially adversely affect financial condition[247](index=247&type=chunk)[248](index=248&type=chunk) - The previously disclosed material weakness in internal control over financial reporting is noted as a risk factor, which could impact investor confidence if not effectively managed[244](index=244&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter ended June 30, 2020, the company did not engage in any unregistered sales of equity securities, and cash dividend payments are currently limited by financing arrangement covenants. - No unregistered sales of securities occurred during the quarter[250](index=250&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amended articles of incorporation, bylaws, award notices, and required CEO and CFO certifications. - The filing includes required certifications from the Principal Executive Officer and Principal Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[255](index=255&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered $0.01 Par Value Class A common stock CVTI The NASDAQ Global Select Market FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ...

Financial Data and Key Metrics Changes - Revenue from the Highway Services Truckload segment decreased by 1% to $77 million, primarily due to an 80 tractors average operating fleet reduction of 5.8%, partially offset by a 5.1% increase in average freight revenue per tractor [5] - The Dedicated Truckload segment's revenue decreased by 2.5% to $69.9 million, mainly due to a 3.1% reduction in average operating fleet [6] - Managed Freight segment's operating revenue decreased by 4% to $42.7 million, driven by a 10.4% decrease in freight brokerage operating revenue [7] - Factoring segment net fee revenue increased by 48.2% to $2.7 million, with operating income rising to $2.2 million from $1.5 million [7] - Total indebtedness net of cash increased by $32.2 million to $336.8 million by March 31, 2020, due to stock repurchases and increased funds in the factoring business [9] Business Line Data and Key Metrics Changes - Highway Services Truckload segment saw a 3.7% decrease in average freight revenue per total mile, while average miles per tractor increased by 9.1% [5] - Dedicated Truckload segment experienced a 1.6% decrease in average freight revenue per total mile, with average miles per tractor up by 2.2% [6] - Managed Freight's operating income was $1.6 million, with an operating ratio of 96.2% [7] - The average age of the tractor fleet decreased to 1.8 years from 2.3 years year-over-year [8] Market Data and Key Metrics Changes - The company expects a 12% to 14% reduction in operational tractor fleet size by the end of 2020 compared to the end of 2019 [8] - The company noted a significant increase in the percentage of team-driven tractors, contributing to improved utilization [5] Company Strategy and Development Direction - The company is focused on reducing total capital employed while prioritizing higher margin and less volatile core service offerings [11] - Strategic initiatives include cost control planning and a realignment of the executive structure to enhance operational efficiency [11] - The company aims to strengthen its position in the U.S. logistics industry and concentrate on sustainable higher margin sectors [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about initial positive results from strategic plan execution, despite expecting volatility in the coming months due to external factors [13] - The outlook for 2020 is no longer applicable, with management indicating readiness to support partner customers as business levels return to normal [14] - Management highlighted the importance of structural improvements and strategic initiatives in mitigating risks and enhancing profitability [14] Other Important Information - The company recognized a pre-tax loss of $700,000 from its equity investment in TEL, compared to a pre-tax income of $3 million in the same quarter of the previous year [8] - The company has suspended its 401(k) match for employees as a temporary cost-saving measure [24] Q&A Session Summary Question: What percentage of your automotive businesses is in your dedicated side? - Management indicated that approximately 10% to 12% of the total fleet is dedicated to automotive, which was significantly impacted by shutdowns due to COVID-19 [17] Question: How are automotive customers ramping up production? - Management expects a gradual ramp-up, with projections of reaching 100% production levels by mid-June [18] Question: How many of the costs should be considered permanent versus variable? - Management stated that many of the cost reductions are permanent, including the rationalization of fixed infrastructure and headcount reductions [25] Question: What is the expectation for the tractor count by year-end? - Management confirmed that the tractor count is expected to be down to approximately 2,600 by year-end [59] Question: How has fuel impacted margins recently? - Management noted that while lower fuel costs are beneficial, the corresponding decrease in fuel surcharges has balanced the effect on margins [61] Question: Will TEL continue to be a headwind? - Management expects TEL to remain a headwind in the third quarter but anticipates improvement in the fourth quarter compared to the previous year [64]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 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 TRANSPORTATION GROUP, INC. (Exact name of registrant as specified in its charter) Nevada 88-0320154 (State / other juris ...

Covenant Transportation Group, Inc. (CVTI) Q4 2019 Earnings Conference Call January 24, 2020 11:00 AM ET Company Participants Richard Cribbs - Chief Financial Officer David Parker - Chief Executive Officer Joey Hogan - Chief Operating Officer Conference Call Participants Scott Group - Wolfe Research Jack Atkins - Stephens Inc. Jason Seidl - Cowen David Ross - Stifel Nick Farwell - Arbor Group Barry Haimes - Sage Asset Management Operator Excuse me, everyone. We now have all of our speakers in conference. [O ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 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 TRANSPORTATION GROUP, INC. (Exact name of registrant as specified in its charter) Nevada 88-0320154 (State ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 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 TRANSPORTATION GROUP, INC. (Exact name of registrant as specified in its charter) Nevada 88-0320154 (State or o ...