CHATTANOOGA, Tenn., Oct. 22, 2025 (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, 2025. The Company’s conference call to discuss the quarter will be held at 10:00 A.M. Eastern Time on Thursday, October 23, 2025. Chairman and Chief Executive Officer, David R. Parker, commented: “Our third quarter results of $0.35 per diluted share, or $0.44 per diluted share on a non-GAAP ad ...

Core Insights - Covenant Logistics Group reported second quarter earnings of $0.36 per diluted share, with a non-GAAP adjusted earnings of $0.45 per diluted share [2] - The company achieved a freight revenue growth of 7.8% year-over-year, reaching $276.5 million, marking an all-time high for any quarter [3] - The company repurchased approximately 1.6 million shares of common stock for $35.2 million as part of a $50 million stock repurchase program [3] Financial Performance - Total revenue for the second quarter was $302.9 million, a 5.3% increase from $287.5 million in the prior year [4] - Freight revenue, excluding fuel surcharge, was $276.5 million, up from $256.5 million, reflecting a 7.8% increase [4] - Operating income decreased to $11.6 million from $15.6 million year-over-year, while adjusted operating income was $15.0 million compared to $18.7 million [4] - Net income for the quarter was $9.8 million, down from $12.2 million in the previous year [4] Segment Performance - Truckload operations saw a slight revenue decrease of 0.9% to $199.6 million, primarily due to a $4.5 million drop in fuel surcharge revenue [6] - The Expedited segment's freight revenue decreased by 6.4% to $83.2 million, while the Dedicated segment's freight revenue increased by 10.2% to $90.2 million [7][27] - Managed Freight segment experienced a significant revenue increase of 28.5% to $77.6 million, driven by new business [12][13] - Warehousing segment's freight revenue increased by 0.8% to $25.6 million, but operating income decreased due to facility-related cost increases [16] Capitalization and Liquidity - As of June 30, 2025, total indebtedness increased by $49 million to approximately $268.7 million compared to December 31, 2024 [17] - The net indebtedness to total capitalization ratio rose to 39.2% from 33.4% [17][28] - The company had cash and cash equivalents of $0.1 million and $24.6 million in outstanding borrowings under its ABL credit facility [18] Outlook - The company anticipates gradual improvement in general freight market fundamentals, despite ongoing fluctuations in inventory levels and supply chain patterns [21] - There is optimism for demand improvement as excess inventories are reduced and tax and monetary policy changes take effect [21] - The company aims to grow profitably and generate meaningful returns for stockholders while expanding its dedicated fleet and exploring acquisition opportunities [21]

Core Viewpoint - Covenant Logistics Group, Inc. is set to release its second quarter earnings on July 23, 2025, followed by a live conference call on July 24, 2025, to discuss the results [1] Company Overview - Covenant Logistics Group, Inc. provides a range of transportation and logistics services across the United States, including asset-based expedited and dedicated truckload capacity, asset-light warehousing, transportation management, and freight brokerage [1] - The company also has an affiliated entity, Transport Enterprise Leasing, which offers revenue equipment sales and leasing services to the trucking industry [1] - Covenant's Class A common stock is listed on the New York Stock Exchange under the ticker symbol "CVLG" [1] Conference Call Details - The earnings release will occur after 4:00 p.m. Eastern time on July 23, 2025, with a conference call scheduled for 10:00 a.m. Eastern time on July 24, 2025 [1] - Participants can join the call by dialing 877-550-1505 (U.S./Canada) or 0800-524-4760 (International) [1] - An audio replay of the call will be available for one week post-call at 800-645-7964, access code 3895, and will also be accessible on the investor website under "Audio Archives" [1]

Core Insights - Covenant Logistics Group reported a decrease in adjusted earnings per share to $0.32 for Q1 2025, down from $0.42 in Q1 2024, primarily due to lower equipment utilization caused by adverse weather and avian influenza outbreaks [2][3] - The company remains optimistic about its strategy and market position, with expectations of revenue growth in its Dedicated, Managed Freight, and Warehousing divisions compared to Q2 2024 [2][3] - A new $50 million stock repurchase program was announced, reflecting the company's confidence in its future [2][15] Financial Performance - Total revenue for Q1 2025 was $269.4 million, a decrease of 3.4% from $278.8 million in Q1 2024 [3][21] - Freight revenue, excluding fuel surcharge, was $243.2 million, down 1.8% from $247.7 million in the prior year [3][21] - Net income increased to $6.6 million in Q1 2025 from $4.0 million in Q1 2024, with diluted earnings per share rising to $0.24 from $0.14 [3][22] Segment Performance - Truckload operations saw total revenue decrease by 0.9% to $188.3 million, with freight revenue growing by 2.0% [5][6] - The Expedited segment's freight revenue decreased by 7.3% to $80.2 million, while the Dedicated segment's freight revenue increased by 13.1% to $82.1 million [5][6] - Managed Freight's revenue fell by 9.6% to $56.9 million, but operating income improved by 35.9% [9][10] - Warehousing segment revenue decreased by 6.0% to $24.0 million, with operating income dropping to $1.0 million [10] Operating Metrics - Operating income for Q1 2025 was $7.6 million, compared to $4.3 million in Q1 2024, with an operating ratio of 97.2% [3][21] - The average freight revenue per tractor per week decreased to $5,416 from $5,651, while average miles per tractor per period fell to 27,521 from 31,201 [4][22] - The company reported a weighted average of 2,331 tractors for the period, an increase from 2,167 in the prior year [4][22] Capitalization and Liquidity - Total indebtedness increased by $5.8 million to approximately $225.4 million as of March 31, 2025 [11][12] - The net indebtedness to total capitalization ratio rose to 33.7% from 33.4% at the end of 2024 [11][12] - Cash and cash equivalents totaled $11.2 million, with available borrowing capacity of $90.1 million under its ABL credit facility [13] Outlook - The company anticipates a gradual improvement in the general freight market, although uncertainties regarding global trade policies may pose challenges [16] - Plans for net capital equipment expenditures for 2025 are projected to be between $55 million and $65 million, subject to change based on growth opportunities [14]