enant Logistics (US:CVLG)2025-05-07 18:32PART I FINANCIAL INFORMATION Financial Statements This section presents the unaudited condensed consolidated financial statements, showing a year-over-year increase in net income despite a slight decrease in total revenue Condensed Consolidated Balance Sheets The balance sheet as of March 31, 2025, shows a slight decrease in total assets driven by reduced cash, alongside a decrease in total liabilities and an increase in stockholders' equity Condensed Consolidated Balance Sheet Highlights (In thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $179,774 | $213,850 | | Net Property and Equipment | $521,913 | $524,809 | | Total Assets | $979,969 | $997,568 | | Total Current Liabilities | $164,303 | $181,277 | | Total Liabilities | $536,325 | $559,228 | | Total Stockholders' Equity | $443,644 | $438,340 | | Total Liabilities and Stockholders' Equity | $979,969 | $997,568 | Condensed Consolidated Statements of Operations For Q1 2025, total revenue slightly decreased, yet operating income and net income significantly increased year-over-year, leading to higher diluted earnings per share Statements of Operations Summary (In thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $269,355 | $278,763 | | Total Operating Expenses | $261,728 | $274,428 | | Operating Income | $7,627 | $4,335 | | Net Income | $6,563 | $3,974 | | Diluted EPS | $0.24 | $0.14 | Condensed Consolidated Statements of Cash Flows Net cash from operating activities increased, while investing activities used less cash, and financing activities shifted to a net cash outflow, resulting in a lower period-end cash balance Cash Flow Summary (In thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $24,830 | $21,701 | | Net Cash from Investing Activities | ($24,080) | ($43,481) | | Net Cash from Financing Activities | ($25,130) | $22,438 | | Net Change in Cash | ($24,380) | $658 | | Cash at End of Period | $11,239 | $2,952 | Notes to Condensed Consolidated Financial Statements These notes detail significant accounting policies, segment performance, debt, lease obligations, and a subsequent $50 million stock repurchase authorization Segment Revenue and Operating Income (Q1 2025, In thousands) | Segment | Total Revenue | Segment Operating Income | | :--- | :--- | :--- | | Expedited | $94,693 | $5,591 | | Dedicated | $93,609 | $2,085 | | Managed Freight | $56,850 | $3,541 | | Warehousing | $24,203 | $1,842 | - The company has a $110.0 million revolving credit facility maturing in May 2027, with no borrowings outstanding and $90.1 million of available borrowing capacity as of March 31, 20256063 - The company owns a 49.0% interest in Transport Enterprise Leasing, LLC ("TEL"), which contributed $3.8 million to pre-tax income in Q1 20257880 - Subsequent to the quarter end, on April 23, 2025, the Board approved a stock repurchase authorization of up to $50.0 million of Class A common stock89 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2025 results, highlighting improved operating income despite revenue decline and external impacts, while outlining strategies for market improvement and potential acquisitions - First quarter earnings were $0.24 per diluted share ($0.32 non-GAAP adjusted), a decrease from Q1 2024, primarily due to subpar equipment utilization from inclement weather and avian influenza outbreaks93 - The company's outlook indicates an incrementally improving freight market as capacity and demand become better balanced, with management focused on capturing new dedicated contracts and evaluating acquisition opportunities94 Q1 2025 Financial Highlights vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $269.4M | $278.8M | | Freight Revenue | $243.2M | $247.7M | | Operating Income | $7.6M | $4.3M | | Net Income | $6.6M | $4.0M | | Diluted EPS | $0.24 | $0.14 | Results of Consolidated Operations Consolidated operations analysis shows a 3.4% revenue decrease in Q1 2025, primarily from lower fuel surcharges and segment declines, offset by reduced operating expenses, leading to improved operating income - Salaries, wages, and related expenses increased to $105.0 million (43.2% of freight revenue) from $100.3 million (40.5% of freight revenue) due to pay increases and growth in the Dedicated segment111 - Revenue equipment rentals and purchased transportation costs decreased significantly to $56.8 million from $66.8 million, primarily due to a decline in the spot market affecting the Managed Freight segment121 - General supplies and expenses decreased to $13.6 million from $20.8 million, mainly because the change in fair value of contingent consideration was only a $0.7 million increase in Q1 2025 versus an $8.1 million increase in Q1 2024128 Results of Segment Operations Q1 2025 segment performance was mixed, with Expedited revenue and income declining, Dedicated revenue growing and loss narrowing, Managed Freight income increasing despite lower revenue, and Warehousing income decreasing Segment Operating Income (Loss) (In thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Expedited | $4,122 | $4,784 | | Dedicated | ($619) | ($4,697) | | Managed Freight | $3,085 | $2,269 | | Warehousing | $1,039 | $1,979 | - Dedicated segment revenue increased due to a 16.7% increase in average tractors, and its operating loss improved significantly from ($4.7 million) to ($0.6 million)141145 - Managed Freight operating income increased despite lower revenue, driven by reduced purchased transportation costs and improved cargo control procedures146 Liquidity and Capital Resources The company maintains a solid liquidity position with $15.5 million working capital and $90.1 million available borrowing capacity, planning $55.0 million to $65.0 million in capital expenditures for the rest of 2025 - As of March 31, 2025, the company had working capital of $15.5 million and available borrowing capacity of $90.1 million under its Credit Facility148151 - Net capital expenditures for Q1 2025 were $23.9 million, with the company expecting $55.0 million to $65.0 million for the rest of 2025152 - The average tractor fleet age was 1.7 years at March 31, 2025, providing flexibility in managing the fleet replacement cycle149 Quantitative and Qualitative Disclosures about Market Risk The company reports no material changes to its market risks since the Form 10-K filing for the year ended December 31, 2024 - There have been no material changes to the company's market risks since the year-end 2024 Form 10-K filing161 Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025163 - No changes occurred during the first quarter of 2025 that materially affected or are reasonably likely to materially affect the company's internal control over financial reporting166 PART II OTHER INFORMATION Legal Proceedings Information on legal proceedings, including routine litigation, is incorporated by reference from Note 9 of the condensed consolidated financial statements - Details on legal proceedings are incorporated by reference from Note 9 of the financial statements167 Risk Factors This section refers to the risk factors previously disclosed in the Form 10-K, indicating no material changes to the principal business risks and uncertainties - The company refers readers to the "Item 1A. Risk Factors" section of its Form 10-K for the year ended December 31, 2024 for a description of risks and uncertainties169 Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities in Q1 2025, while distributing $1.9 million to stockholders through cash dividends - No unregistered sales of securities occurred during the quarter ended March 31, 2025170 - The company distributed a total of $1.9 million to stockholders via dividends in the first three months of 2025170 Exhibits This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - The exhibits filed with this report include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act174