[X]
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 31, 2018
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from to
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Nevada
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88-0320154
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(State / other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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400 Birmingham Hwy.
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Chattanooga, TN
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37419
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(Address of principal executive offices)
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(Zip Code)
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Registrant's telephone number, including area code:
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423 - 821-1212
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Securities registered pursuant to Section 12(b) of the Act:
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$0.01 Par Value Class A Common Stock – The NASDAQ Global Select Market
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(Title of class)
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Securities registered pursuant to Section 12(g) of the Act:
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None
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Large accelerated filer
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[ ]
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Accelerated filer
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[X]
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Non-accelerated filer
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[ ]
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Smaller reporting company
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[ ]
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Emerging growth company
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[ ]
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Part I
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Item 1.
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4
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Item 1A.
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16
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Item 1B.
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32
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Item 2.
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32
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Item 3.
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32
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Item 4.
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33
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Part II
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Item 5.
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34
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Item 6.
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35
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Item 7.
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36
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Item 7A.
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54
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Item 8.
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55
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Item 9.
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55
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Item 9A.
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55
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Item 9B.
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57
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Part III
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Item 10.
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58
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Item 11.
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58
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Item 12.
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58
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Item 13.
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59
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Item 14.
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59
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Part IV
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Item 15.
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60
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Item 16.
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62
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63
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64
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Report of Independent Registered Public Accounting Firm - Opinion on Internal Control Over Financial Reporting | 65 | ||
Financial Data
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67
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68
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69
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70
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71
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72
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ITEM 1.
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Distribution of Freight Revenue
Among Service Offerings
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||||
Expedited
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37
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%
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Dedicated
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26
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%
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Temperature-Controlled
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15
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%
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Brokerage
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15
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%
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Other
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7
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%
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Average Freight Revenue Per Total Mile. Our average freight revenue per total mile is primarily a function of 1) the allocation of assets among our subsidiaries and 2) the macro U.S. economic environment including supply/demand of freight and carriers. The year-over-year increase from 2014 to 2015 is a result of allocating more tractors to our niche/specialized service offerings that provide higher rates (including expedited/critical freight, high-value/constant security, and temperature-controlled). The 2017 recovery of the weaker 2016 pricing environment, due to the more favorable supply and demand balance, resulted in the slight increase in 2017. A strong economic environment, as well as the Landair Acquisition, contributed to the increases in 2018.
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2014
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2015
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2016
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2017
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2018
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$1.60
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$1.69
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$1.67
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$1.70
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$1.94
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Average Miles Per Tractor. Average miles per tractor reflect economic demand, driver availability, regulatory constraints, and the allocation of tractors among the service offerings. Utilization declined gradually from 2014 to 2017 primarily due to a softer freight market and the increase in certain e-commerce freight that has a shorter length of haul, partially offset by the increase in the portion of tractors operated by teams during that time. In 2018, our increased emphasis on shorter-haul dedicated freight, a reduction in tractors operated by teams, as well as the Landair Acquisition, reduced our average miles per tractor to the lowest we have seen in our recent history.
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2014
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2015
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2016
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2017
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2018
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123,275
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122,508
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121,782
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120,043
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112,736
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Average Freight Revenue Per Tractor Per Week. We use average freight revenue per tractor per week as our main measure of asset productivity. This operating metric takes into account the effects of freight rates, non-revenue miles, and miles per tractor. In addition, because we calculate average freight revenue per tractor using all of our tractors, it takes into account the percentage of our fleet that is unproductive due to lack of drivers, repairs, and other factors. The changes in average freight revenue per tractor per week from 2015 to 2017 are primarily due to the 2016 deterioration and 2017 recovery of the percentage of our unseated tractors, specifically at SRT, and the increase in 2018 is primarily due to the aforementioned increase in rates, partially offset by the decrease in utilization.
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2014
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2015
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2016
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2017
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2018
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$3,777
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$3,967
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$3,881
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$3,917
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$4,191
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ITEM 1A.
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●
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we may experience a reduction in overall freight levels, which may impair our asset utilization;
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●
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certain of our customers may face credit issues and could experience cash flow problems that may lead to payment delays, increased credit risk, bankruptcies, and other financial hardships that could result in even lower freight demand and may require us to increase our allowance for doubtful accounts;
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●
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freight patterns may change as supply chains are redesigned, resulting in an imbalance between our capacity and our customers' freight demand;
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●
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customers may solicit bids for freight from multiple trucking companies or select competitors that offer lower rates from among existing choices in an attempt to lower their costs, and we might be forced to lower our rates or lose freight;
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●
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we may be forced to accept more freight from freight brokers, where freight rates are typically lower, or may be forced to incur more non-revenue miles to obtain loads; and
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●
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lack of access to current sources of credit or lack of lender access to capital, leading to an inability to secure credit financing on satisfactory terms, or at all.
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●
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we compete with many other truckload carriers of varying sizes and, to a lesser extent, with (i) less-than-truckload carriers, (ii) railroads, intermodal companies, and (iii) other transportation and logistics companies, many of which have access to more equipment and greater capital resources than we do;
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●
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many of our competitors periodically reduce their freight rates to gain business, especially during times of reduced growth in the economy, which may limit our ability to maintain or increase freight rates or to maintain or expand our business or may require us to reduce our freight rates in order to maintain business and keep our equipment productive;
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●
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many of our customers, including several in our top ten, are other transportation companies or also operate their own private trucking fleets, and they may decide to transport more of their own freight;
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●
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we may increase the size of our fleet during periods of high freight demand during which our competitors also increase their capacity, and we may experience losses in greater amounts than such competitors during subsequent cycles of softened freight demand if we are required to dispose of assets at a loss to match reduced customer demand;
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●
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a significant portion of our business is in the retail industry, which continues to undergo a shift away from the traditional brick and mortar model towards e-commerce, and this shift could impact the manner in which our customers source or utilize our services;
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●
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many customers reduce the number of carriers they use by selecting so-called "core carriers" as approved service providers or by engaging dedicated providers, and we may not be selected;
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●
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many customers periodically accept bids from multiple carriers for their shipping needs, and this process may depress freight rates or result in the loss of some of our business to competitors;
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●
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the trend toward consolidation in the trucking industry may create large carriers with greater financial resources and other competitive advantages relating to their size, and we may have difficulty competing with these larger carriers;
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●
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the market for qualified drivers is increasingly competitive, and our inability to attract and retain drivers could reduce our equipment utilization or cause us to increase compensation to our drivers and independent contractors we engage, both of which would adversely affect our profitability;
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competition from freight logistics and freight brokerage companies may adversely affect our customer relationships and freight rates;
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●
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economies of scale that procurement aggregation providers may pass on to smaller carriers may improve such carriers’ ability to compete with us;
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●
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advances in technology may require us to increase investments in order to remain competitive, and our customers may not be willing to accept higher freight rates to cover the cost of these investments;
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●
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the Covenant brand name is a valuable asset that is subject to the risk of adverse publicity (whether or not justified),which could result in the loss of value attributable to our brand and reduced demand for our services; and
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●
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higher fuel prices and, in turn, higher fuel surcharges to our customers may cause some of our customers to consider freight transportation alternatives, including rail transportation.
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●
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finance working capital requirements, capital investments, or refinance existing indebtedness;
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develop or enhance our technological infrastructure and our existing products and services;
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fund strategic relationships;
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respond to competitive pressures; and
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●
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acquire complementary businesses, technologies, products, or services.
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●
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approval of premium rates for insurance;
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●
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standards of solvency;
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●
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minimum amounts of statutory capital surplus that must be maintained;
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●
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limitations on types and amounts of investments;
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●
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regulation of dividend payments and other transactions between affiliates;
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●
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regulation of reinsurance;
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●
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regulation of underwriting and marketing practices;
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●
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approval of policy forms;
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●
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methods of accounting; and
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filing of annual and other reports with respect to financial condition and other matters.
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●
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our vulnerability to adverse economic and industry conditions and competitive pressures is heightened;
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●
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we will continue to be required to dedicate a substantial portion of our cash flows from operations to lease payments and repayment of debt, limiting the availability of cash for our operations, capital expenditures, and future business opportunities;
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●
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our flexibility in planning for, or reacting to, changes in our business and industry will be limited;
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●
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our profitability is sensitive to fluctuations in interest rates because some of our debt obligations are subject to variable interest rates, and future borrowings and lease financing arrangements will be affected by any such fluctuations;
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●
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our ability to obtain additional financing in the future for working capital, capital expenditures, debt service requirements, acquisitions, or other purposes may be limited;
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●
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it may be difficult for us to comply with the multitude of financial covenants, borrowing conditions, or other obligations contained in our debt agreements, thereby increasing the risk that we trigger certain cross-default provisions; and
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●
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we may be required to issue additional equity securities to raise funds, which would dilute the ownership position of our stockholders.
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•
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some of the acquired businesses may not achieve anticipated revenue, earnings or cash flows;
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•
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we may assume liabilities that were not disclosed to us or otherwise exceed our estimates;
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•
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we may be unable to integrate acquired businesses successfully, or at all, and realize anticipated economic, operational and other benefits in a timely manner, which could result in substantial costs and delays or other operational, technical, or financial problems;
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•
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transaction costs and acquisition-related integration costs could adversely affect our results of operations in the period in which such charges are recorded;
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•
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we may incur future impairment charges, write-offs, write-downs, or restructuring charges that could adversely impact our results of operations;
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•
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acquisitions could disrupt our ongoing business, distract our management and divert our resources;
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•
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we may experience difficulties operating in markets in which we have had no or only limited direct experience;
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•
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we could lose customers, employees and drivers of any acquired company; and
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•
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we may incur additional indebtedness.
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ITEM 1B.
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ITEM 2.
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Locations
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Terminal
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Recruiting/
Orientation
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Sales
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Warehouse
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Ownership
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Chattanooga, Tennessee
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x
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x
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x
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Owned
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Texarkana, Arkansas
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x
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x
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x
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Owned
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Hutchins, Texas
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x
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x
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Owned
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Pomona, California
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x
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x
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Owned
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Allentown, Pennsylvania
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x
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Owned
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LaVergne, Tennessee
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x
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x
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x
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Owned
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Orlando, Florida
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x
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Owned
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Fayetteville, North Carolina
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x
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Leased
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Greeneville, Tennessee
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x
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x
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x
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x
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Leased
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Rancho Cucamonga, California
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x
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Leased
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Warsaw, North Carolina
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x
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Leased
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Hartsville, South Carolina
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x
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Leased
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ITEM 3.
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ITEM 4.
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ITEM 6.
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|
Years Ended December 31,
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|||||||||||||||||||
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2018
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2017
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2016
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2015
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2014
|
|||||||||||||||
Statement of Operations Data:
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||||||||||||||||||||
Freight revenue
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$
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779,729
|
$
|
626,809
|
$
|
610,845
|
$
|
640,120
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$
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578,204
|
||||||||||
Fuel surcharge revenue
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105,726
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78,198
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59,806
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84,120
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140,776
|
|||||||||||||||
Total revenue
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$
|
885,455
|
$
|
705,007
|
$
|
670,651
|
$
|
724,240
|
$
|
718,980
|
||||||||||
|
||||||||||||||||||||
Operating expenses:
|
||||||||||||||||||||
Salaries, wages, and related expenses
|
304,447
|
241,784
|
234,526
|
244,779
|
231,761
|
|||||||||||||||
Fuel expense
|
121,264
|
103,139
|
103,108
|
122,160
|
168,856
|
|||||||||||||||
Operations and maintenance
|
55,505
|
48,774
|
45,864
|
46,458
|
47,251
|
|||||||||||||||
Revenue equipment rentals and purchased transportation
|
183,645
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141,954
|
117,472
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118,583
|
111,772
|
|||||||||||||||
Operating taxes and licenses
|
11,831
|
9,878
|
11,712
|
11,016
|
10,960
|
|||||||||||||||
Insurance and claims (1)
|
43,333
|
33,155
|
32,596
|
31,909
|
39,594
|
|||||||||||||||
Communications and utilities
|
7,061
|
6,938
|
6,057
|
6,162
|
5,806
|
|||||||||||||||
General supplies and expenses
|
23,227
|
14,783
|
14,413
|
14,007
|
16,950
|
|||||||||||||||
Depreciation and amortization, including gains and losses on disposition of equipment and impairment of assets
|
76,156
|
76,447
|
72,456
|
61,384
|
46,384
|
|||||||||||||||
Total operating expenses
|
826,469
|
676,852
|
638,204
|
656,458
|
679,334
|
|||||||||||||||
Operating income
|
58,986
|
28,155
|
32,447
|
67,782
|
39,646
|
|||||||||||||||
Interest expense, net
|
8,708
|
8,258
|
8,226
|
8,445
|
10,794
|
|||||||||||||||
Income from equity method investment
|
(7,732
|
)
|
(3,400
|
)
|
(3,000
|
)
|
(4,570
|
)
|
(3,730
|
)
|
||||||||||
Income before income taxes
|
58,010
|
23,297
|
27,221
|
63,907
|
32,582
|
|||||||||||||||
Income tax expense (benefit)
|
15,507
|
(32,142
|
)
|
10,386
|
21,822
|
14,774
|
||||||||||||||
Net income
|
$
|
42,503
|
$
|
55,439
|
$
|
16,835
|
$
|
42,085
|
$
|
17,808
|
||||||||||
|
||||||||||||||||||||
Basic income per share
|
$
|
2.32
|
$
|
3.03
|
$
|
0.93
|
$
|
2.32
|
$
|
1.17
|
||||||||||
|
||||||||||||||||||||
Diluted income per share
|
$
|
2.30
|
$
|
3.02
|
$
|
0.92
|
$
|
2.30
|
$
|
1.15
|
||||||||||
|
||||||||||||||||||||
Basic weighted average common shares outstanding
|
18,340
|
18,279
|
18,182
|
18,145
|
15,250
|
|||||||||||||||
|
||||||||||||||||||||
Diluted weighted average common shares outstanding
|
18,469
|
18,372
|
18,266
|
18,311
|
15,517
|
|
Years Ended December 31,
|
|||||||||||||||||||
|
2018
|
2017
|
2016
|
2015
|
2014
|
|||||||||||||||
Selected Balance Sheet Data:
|
||||||||||||||||||||
Net property and equipment
|
$
|
450,595
|
$
|
464,072
|
$
|
465,471
|
$
|
454,049
|
$
|
382,491
|
||||||||||
Total assets (2)
|
$
|
773,524
|
$
|
649,668
|
$
|
620,538
|
$
|
646,717
|
$
|
539,304
|
||||||||||
Long-term debt and capital lease obligations, less current maturities
|
$
|
201,754
|
$
|
186,242
|
$
|
188,437
|
$
|
206,604
|
$
|
172,903
|
||||||||||
Total stockholders' equity
|
$
|
343,142
|
$
|
295,201
|
$
|
236,414
|
$
|
202,160
|
$
|
169,204
|
||||||||||
|
||||||||||||||||||||
Selected Operating Data:
|
||||||||||||||||||||
Capital expenditures (proceeds), net (3)
|
$
|
33,093
|
$
|
72,006
|
$
|
59,052
|
$
|
148,994
|
$
|
89,455
|
||||||||||
Average freight revenue per loaded mile (4)
|
$
|
2.13
|
$
|
1.89
|
$
|
1.86
|
$
|
1.89
|
$
|
1.77
|
||||||||||
Average freight revenue per total mile (4)
|
$
|
1.94
|
$
|
1.70
|
$
|
1.67
|
$
|
1.69
|
$
|
1.60
|
||||||||||
Average freight revenue per tractor per week (4)
|
$
|
4,191
|
$
|
3,917
|
$
|
3,881
|
$
|
3,967
|
$
|
3,777
|
||||||||||
Average miles per tractor per year
|
112,736
|
120,043
|
121,782
|
122,508
|
123,275
|
|||||||||||||||
Weighted average tractors for year (5)
|
2,843
|
2,557
|
2,593
|
2,700
|
2,609
|
|||||||||||||||
Total tractors at end of period (5)
|
3,154
|
2,559
|
2,535
|
2,656
|
2,665
|
|||||||||||||||
Total trailers at end of period (6)
|
6,950
|
6,846
|
7,389
|
6,978
|
6,722
|
|||||||||||||||
Team-driven tractors as percentage of fleet
|
30.8
|
%
|
38.1
|
%
|
38.7
|
%
|
35.3
|
%
|
32.1
|
%
|
(1)
|
2017 and 2014 insurance and claims expense includes $0.9 million and $7.5 million of additional reserves for 2008 cargo claim, respectively.
|
(2)
|
Adjusted for retrospective adoption of ASU 2015-17.
|
(3)
|
Includes equipment purchased under capital leases.
|
(4)
|
Excludes fuel surcharge revenue.
|
(5)
|
Includes monthly rental tractors and tractors provided by independent contractors.
|
(6)
|
Excludes monthly rental trailers.
|
ITEM 7.
|
|
●
|
Total revenue was $885.5 million, compared with $705.0 million for 2017, and freight revenue (which excludes revenue from fuel surcharges) was $779.7 million, compared with $626.8 million for 2017;
|
|
●
|
Operating income was $59.0 million, compared with operating income of $28.2 million for 2017;
|
|
●
|
Net income was $42.5 million, or $2.30 per diluted share, compared with net income of $55.4 million, or $3.02 per diluted share, for 2017. Net income for 2017 included $40.1 million, or $2.18 per diluted share, of income tax benefit resulting primarily from the reevaluation of our net deferred tax balances at December 31, 2017 as a result of the enactment of the Tax Act, signed into law on December 22, 2017;
|
●
|
With available borrowing capacity of $54.8 million under our Credit Facility as of December 31, 2018, we do not expect to be required to test our fixed charge covenant in the foreseeable future;
|
|
●
|
Our equity investment in TEL provided $7.7 million of pre-tax earnings in 2018, compared to $3.4 million for 2017;
|
|
●
|
Since December 31, 2017, aggregate lease adjusted indebtedness (which includes the present value of off-balance sheet lease obligations), net of cash, increased by $35.5 million to $255.7 million; and
|
|
●
|
Stockholders' equity at December 31, 2018 was $343.1 million, and tangible book value was $269.0 million, or $14.65 per basic share.
|
GAAP Operating Ratio:
|
2018
|
OR %
|
2017
|
OR %
|
2016
|
OR %
|
||||||||||||||||||
Total revenue
|
$
|
885,455
|
$
|
705,007
|
$
|
670,651
|
||||||||||||||||||
Total operating expenses
|
826,469
|
93.3
|
%
|
676,852
|
96.0
|
%
|
638,204
|
95.2
|
%
|
|||||||||||||||
Operating income
|
$
|
58,986
|
$
|
28,155
|
$
|
32,447
|
||||||||||||||||||
Adjusted Operating Ratio: | 2018 | Adj. OR % | 2017 | Adj. OR % | 2016 | Adj. OR % | ||||||||||||||||||
Total revenue
|
885,455 | 705,007 | 670,651 | |||||||||||||||||||||
Fuel surcharge revenue | (105,726 | ) | (78,198 | ) | (59,806 | ) | ||||||||||||||||||
Freight revenue (total revenue, excluding fuel surcharge) | 779,729 | 626,809 | 610,845 | |||||||||||||||||||||
Total operating expenses | 826,469 | 676,852 | 638,204 | |||||||||||||||||||||
Adjusted for: | ||||||||||||||||||||||||
Fuel surcharge revenue | (105,726 | ) | (78,198 | ) | (59,806 | ) | ||||||||||||||||||
Amortization of intangibles | (1,462 | ) | - | (169 | ) | |||||||||||||||||||
Adjusted operating expenses | 719,281 | 92.2 | % | 598,654 | 95.5 | % | 578,229 | 94.7 | % | |||||||||||||||
Adjusted operating income | 60,448 | 28,155 | 32,447 |
|
Year ended December 31,
|
|||||||||||
(in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Revenue:
|
||||||||||||
Freight revenue
|
$
|
779,729
|
$
|
626,809
|
$
|
610,845
|
||||||
Fuel surcharge revenue
|
105,726
|
78,198
|
59,806
|
|||||||||
Total revenue
|
$
|
885,455
|
$
|
705,007
|
$
|
670,651
|
|
Year ended December 31,
|
|||||||||||
(dollars in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Salaries, wages, and related expenses
|
$
|
304,447
|
$
|
241,784
|
$
|
234,526
|
||||||
% of total revenue
|
34.4
|
%
|
34.3
|
%
|
35.0
|
%
|
||||||
% of freight revenue
|
39.0
|
%
|
38.6
|
%
|
38.4
|
%
|
|
Year ended December 31,
|
|||||||||||
(dollars in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Fuel expense
|
$
|
121,264
|
$
|
103,139
|
$
|
103,108
|
||||||
% of total revenue
|
13.7
|
%
|
14.6
|
%
|
15.4
|
%
|
|
Year ended December 31,
|
|||||||||||
(dollars in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Total fuel surcharge
|
$
|
105,726
|
$
|
78,198
|
$
|
59,806
|
||||||
Less: Fuel surcharge revenue reimbursed to independent contractors and other third parties
|
12,635
|
7,997
|
6,250
|
|||||||||
Company fuel surcharge revenue
|
$
|
93,091
|
$
|
70,201
|
$
|
53,556
|
||||||
Total fuel expense
|
$
|
121,264
|
$
|
103,139
|
$
|
103,108
|
||||||
Less: Company fuel surcharge revenue
|
93,091
|
70,201
|
53,556
|
|||||||||
Net fuel expense
|
$
|
28,173
|
$
|
32,938
|
$
|
49,552
|
||||||
% of freight revenue
|
3.6
|
%
|
5.3
|
%
|
8.1
|
%
|
|
Year ended December 31,
|
|||||||||||
(dollars in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Operations and maintenance
|
$
|
55,505
|
$
|
48,774
|
$
|
45,864
|
||||||
% of total revenue
|
6.3
|
%
|
6.9
|
%
|
6.8
|
%
|
||||||
% of freight revenue
|
7.1
|
%
|
7.8
|
%
|
7.5
|
%
|
|
Year ended December 31,
|
|||||||||||
(dollars in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Revenue equipment rentals and purchased transportation
|
$
|
183,645
|
$
|
141,954
|
$
|
117,472
|
||||||
% of total revenue
|
20.7
|
%
|
20.1
|
%
|
17.5
|
%
|
||||||
% of freight revenue
|
23.6
|
%
|
22.6
|
%
|
19.2
|
%
|
|
Year ended December 31,
|
|||||||||||
(dollars in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Operating taxes and licenses
|
$
|
11,831
|
$
|
9,878
|
$
|
11,712
|
||||||
% of total revenue
|
1.3
|
%
|
1.4
|
%
|
1.7
|
%
|
||||||
% of freight revenue
|
1.5
|
%
|
1.6
|
%
|
1.9
|
%
|
|
Year ended December 31,
|
|||||||||||
(dollars in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Insurance and claims
|
$
|
43,333
|
$
|
33,155
|
$
|
32,596
|
||||||
% of total revenue
|
4.9
|
%
|
4.7
|
%
|
4.9
|
%
|
||||||
% of freight revenue
|
5.6
|
%
|
5.3
|
%
|
5.3
|
%
|
|
Year ended December 31,
|
|||||||||||
(dollars in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Communications and utilities
|
$
|
7,061
|
$
|
6,938
|
$
|
6,057
|
||||||
% of total revenue
|
0.8
|
%
|
1.0
|
%
|
0.9
|
%
|
||||||
% of freight revenue
|
0.9
|
%
|
1.1
|
%
|
1.0
|
%
|
|
Year ended December 31,
|
|||||||||||
(dollars in thousands)
|
2018
|
2017
|
2016
|
|||||||||
General supplies and expenses
|
$
|
23,227
|
$
|
14,783
|
$
|
14,413
|
||||||
% of total revenue
|
2.6
|
%
|
2.1
|
%
|
2.1
|
%
|
||||||
% of freight revenue
|
3.0
|
%
|
2.4
|
%
|
2.4
|
%
|
|
Year ended December 31,
|
|||||||||||
(dollars in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Depreciation and amortization
|
$
|
76,156
|
$
|
76,447
|
$
|
72,456
|
||||||
% of total revenue
|
8.6
|
%
|
10.8
|
%
|
10.8
|
%
|
||||||
% of freight revenue
|
9.8
|
%
|
12.2
|
%
|
11.9
|
%
|
|
Year ended December 31,
|
|||||||||||
(dollars in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Interest expense, net
|
$
|
8,708
|
$
|
8,258
|
$
|
8,226
|
||||||
% of total revenue
|
1.0
|
%
|
1.2
|
%
|
1.2
|
%
|
||||||
% of freight revenue
|
1.1
|
%
|
1.3
|
%
|
1.3
|
%
|
|
Year ended December 31,
|
|||||||||||
(in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Income from equity method investment
|
$
|
7,732
|
$
|
3,400
|
$
|
3,000
|
|
Year ended December 31,
|
|||||||||||
(dollars in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Income tax expense (benefit)
|
$
|
15,507
|
$
|
(32,142
|
)
|
$
|
10,386
|
|||||
% of total revenue
|
1.8
|
%
|
(4.6
|
%)
|
1.5
|
%
|
||||||
% of freight revenue
|
2.0
|
%
|
(5.1
|
%)
|
1.7
|
%
|
|
Year ended
|
|||||||||||
|
December 31,
|
|||||||||||
(in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Revenues:
|
||||||||||||
Truckload
|
$
|
727,046
|
$
|
612,834
|
$
|
601,226
|
||||||
Managed Freight
|
158,409
|
92,173
|
69,425
|
|||||||||
Total
|
$
|
885,455
|
$
|
705,007
|
$
|
670,651
|
||||||
Operating Income:
|
||||||||||||
Truckload
|
$
|
45,392
|
$
|
19,567
|
$
|
24,816
|
||||||
Managed Freight
|
13,594
|
8,588
|
7,631
|
|||||||||
Total
|
$
|
58,986
|
$
|
28,155
|
$
|
32,447
|
Payments due by period:
|
2019
|
2020
|
2021
|
2022
|
2023
|
More than
|
||||||||||||||||||||||
(in thousands)
|
Total
|
(less than
1 year)
|
(1-3 years)
|
(1-3 years)
|
(3-5 years)
|
(3-5 years)
|
5 years
|
|||||||||||||||||||||
Credit Facility (1)
|
$
|
3,911
|
$
|
-
|
$
|
-
|
$
|
3,911
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||
Revenue equipment and property installment notes, including interest (2)
|
$
|
215,405
|
$
|
35,554
|
$
|
44,688
|
$
|
60,777
|
$
|
45,085
|
$
|
5,069
|
$
|
24,232
|
||||||||||||||
Operating leases (3)
|
$
|
42,545
|
$
|
16,331
|
$
|
11,726
|
$
|
7,973
|
$
|
6,272
|
$
|
208
|
$
|
35
|
||||||||||||||
Capital leases (4)
|
$
|
44,035
|
$
|
6,511
|
$
|
9,748
|
$
|
7,721
|
$
|
9,487
|
$
|
9,148
|
$
|
1,420
|
||||||||||||||
Lease residual value guarantees
|
$
|
1,007
|
$
|
1,007
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||
Purchase obligations (5)
|
$
|
156,338
|
$
|
156,338
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||
Total contractual cash obligations (6)
|
$
|
463,241
|
$
|
215,741
|
$
|
66,162
|
$
|
80,382
|
$
|
60,844
|
$
|
14,425
|
$
|
25,687
|
(1)
|
Represents principal owed at December 31, 2018 and interest on such principal amount through maturity. The borrowings consist of draws under our Credit Facility, with fluctuating borrowing amounts and variable interest rates. In determining future contractual interest and principal obligations, for variable interest rate debt, the interest rate and principal amount in place at December 31, 2018, was utilized. The table assumes long-term debt is held to maturity. Refer to Note 6, "Debt" of the accompanying consolidated financial statements for further information.
|
(2)
|
Represents principal and interest payments owed at December 31, 2018. The borrowings consist of installment notes with finance companies, with fixed borrowing amounts and fixed interest rates, except for a variable rate real estate note, for which the interest rate is effectively fixed through an interest rate swap. The table assumes these installment notes are held to maturity. Refer to Note 6, "Debt" of the accompanying consolidated financial statements for further information.
|
(3)
|
Represents future monthly rental payment obligations under operating leases for tractors, trailers, and terminal properties, and computer and office equipment. Substantially all lease agreements for revenue equipment have fixed payment terms based on the passage of time. The tractor lease agreements generally stipulate maximum miles and provide for mileage penalties for excess miles. These leases generally run for a period of three to five years for tractors and five to seven years for trailers. Refer to Note 7, "Leases" of the accompanying consolidated financial statements for further information.
|
(4)
|
Represents principal and interest payments owed at December 31, 2018. The borrowings consist of capital leases with one finance company, with fixed borrowing amounts and fixed interest rates or rates that are floating but effectively fixed through related interest rate swaps. Borrowings in 2019 and thereafter include the residual value guarantees on the related equipment as balloon payments. Refer to Note 6, "Debt" of the accompanying consolidated financial statements for further information.
|
(5)
|
Represents purchase obligations for revenue equipment totaling approximately $156.3 million in 2018. These commitments are cancelable, subject to certain adjustments in the underlying obligations and benefits. These purchase commitments are expected to be financed by operating leases, capital leases, long-term debt, proceeds from sales of existing equipment, and/or cash flows from operations. Refer to Notes 6 and 7, "Debt" and "Leases," respectively, of the accompanying consolidated financial statements for further information.
|
(6)
|
Excludes any amounts accrued for unrecognized tax benefits as we are unable to reasonably predict the ultimate amount or timing of settlement of such unrecognized tax benefits.
|
|
●
|
auto liability - $1.0 million
|
|
●
|
workers' compensation - $1.3 million
|
|
●
|
cargo - $0.3 million
|
|
●
|
employee medical - $0.4 million
|
|
●
|
physical damage - 100%
|
|
Twelve Months Ended December 31, 2018
|
|||||||||||
|
Balances without
|
|||||||||||
|
adoption of Topic
|
|||||||||||
Financial Statement Line Item (in thousands)
|
As reported
|
Adjustments
|
606 | |||||||||
Consolidated Balance Sheet
|
||||||||||||
Accounts receivable, net of allowances
|
$
|
151,093
|
$
|
(1,244
|
)
|
$
|
149,849
|
|||||
Total assets
|
773,524
|
(1,244
|
)
|
772,280
|
||||||||
Accrued expenses
|
49,503
|
(277
|
)
|
49,226
|
||||||||
Deferred income taxes
|
77,467
|
(266
|
)
|
77,201
|
||||||||
Total liabilities
|
430,382
|
(543
|
)
|
429,839
|
||||||||
Retained earnings
|
200,566
|
(701
|
)
|
199,865
|
||||||||
Total stockholders’ equity
|
343,142
|
(701
|
)
|
342,441
|
||||||||
Total liabilities and stockholders’ equity
|
773,524
|
(1,244
|
)
|
772,280
|
||||||||
Consolidated Statement of Operations
|
||||||||||||
Freight revenue
|
779,729
|
(234
|
)
|
779,495
|
||||||||
Total revenue
|
885,455
|
(234
|
)
|
885,221
|
||||||||
Salaries, wages and related expenses
|
304,447
|
13
|
304,460
|
|||||||||
Revenue equipment rentals and purchased transportation
|
183,645
|
(95
|
)
|
183,550
|
||||||||
Total operating expenses
|
826,469
|
(82
|
)
|
826,387
|
||||||||
Income tax expense (benefit)
|
15,507
|
(41
|
)
|
15,466
|
||||||||
Net income
|
42,503
|
(111
|
)
|
42,392
|
||||||||
Consolidated Statement of Comprehensive Income
|
||||||||||||
Net income
|
42,503
|
(111
|
)
|
42,392
|
||||||||
Comprehensive income
|
42,414
|
(111
|
)
|
42,303
|
||||||||
Consolidated Statement of Cash Flows
|
||||||||||||
Operating Cash Flows
|
||||||||||||
Net income
|
42,503
|
(111
|
)
|
42,392
|
||||||||
Deferred income tax expense (benefit)
|
13,840
|
(41
|
)
|
13,799
|
||||||||
Change in: Receivables and advances
|
(27,199
|
)
|
234
|
(26,965
|
)
|
|||||||
Change in: Accounts payable and accrued expenses
|
19,232
|
(82
|
)
|
19,150
|
||||||||
Net cash flows provided by operating activities
|
124,800
|
-
|
124,800
|
ITEM 7A.
|
ITEM 8.
|
ITEM 9.
|
ITEM 9A.
|
|
●
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
|
|||
● |
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
|
||||
● | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. |
ITEM 9B.
|
ITEM 10. |
ITEM 11.
|
ITEM 12.
|
Plan category
|
Number of securities to be issued upon exercise
of outstanding options,
warrants and rights
|
Weighted average
exercise price of
outstanding options,
warrants and rights
|
Number of securities
remaining eligible for
future issuance under
equity compensation
plans (excluding
securities reflected in
column (a))
|
||||||||||
|
(a)
|
(b)
|
(c)
|
||||||||||
Equity compensation plans approved by security holders
|
675,437
|
(1) |
0
|
50,960
|
|||||||||
Equity compensation plans not approved by security holders
|
0
|
0
|
0
|
||||||||||
Total
|
675,437
|
0
|
50,960
|
(1)
|
Represents unvested restricted shares granted under the 2006 Omnibus Incentive Plan, as amended. The weighted average stock price on the date of grant for outstanding restricted stock awards was $ 20.08, which is not reflected in column (b), because restricted stock awards do not have an exercise price.
|
ITEM 13.
|
ITEM 14.
|
ITEM 15.
|
|
||
|
|
|
|
(a)
|
1.
|
Financial Statements.
|
|
|
|
|
|
|
|
Our audited consolidated financial statements are set forth at the following pages of this report:
|
|
|
|
64
|
|
Report of Independent Registered Public Accounting Firm - Opinion on Internal Control Over Financial Reporting | 65 | ||
|
|
67
|
|
|
|
68
|
|
|
|
69
|
|
|
|
70
|
|
|
|
71
|
|
|
|
72
|
|
|
|
|
|
|
2.
|
Financial Statement Schedules.
|
|
|
|
|
|
|
|
Financial statement schedules are not required because all required information is included in the financial statements or is not applicable.
|
|
|
|
|
|
|
3.
|
Exhibits.
|
|
|
|
|
|
|
|
The exhibits required to be filed by Item 601 of Regulation S-K are listed under paragraph (b) below and on the Exhibit Index appearing at the end of this report. Management contracts and compensatory plans or arrangements are indicated by an asterisk.
|
|
|
|
|
|
(b)
|
|
Exhibits.
|
|
|
|
The following exhibits are filed with this Form 10-K or incorporated by reference to the document set forth next to the exhibit listed below.
|
Exhibit Number
|
Reference
|
Description
|
|
Stock Purchase Agreement, dated July 3, 2018, by and among Landair Holdings, Inc., the Stockholders of Landair Holdings, Inc. and Covenant Transportation Group, Inc. (Incorporated by reference to Exhibit 2.1 to the Company's Form 10-Q, filed November 9, 2018)
|
|
|
Amended and Restated Articles of Incorporation (Incorporated by reference to Exhibit 99.2 to the Company's Report on Form 8-K, filed May 29, 2007)
|
|
|
Second Amended and Restated Bylaws (Incorporated by reference to Exhibit 3.2 to the Company's Form 10-Q, filed May 13, 2011)
|
|
|
Amended and Restated Articles of Incorporation (Incorporated by reference to Exhibit 99.2 to the Company's Report on Form 8-K, filed May 29, 2007)
|
|
|
Second Amended and Restated Bylaws (Incorporated by reference to Exhibit 3.2 to the Company's Form 10-Q, filed May 13, 2011)
|
|
*
|
Form of Indemnification Agreement between Covenant Transport, Inc. and each officer and director, effective May 1, 2004 (Incorporated by reference to Exhibit 10.2 to the Company's Form 10-Q, filed August 5, 2004)
|
|
*
|
Form of Restricted Stock Award Notice under the 2006 Omnibus Incentive Plan (Incorporated by reference to Exhibit 10.22 to the Company's Form 10-Q, filed August 9, 2006)
|
|
*
|
Form of Restricted Stock Special Award Notice under the 2006 Omnibus Incentive Plan (Incorporated by reference to Exhibit 10.23 to the Company's Form 10-Q, filed August 9, 2006)
|
|
|
Third Amended and Restated Credit Agreement, dated September 23, 2008, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., JPMorgan Chase Bank, N.A., and Textron Financial Corporation (Incorporated by reference to Exhibit 10.14 to the Company's Form 10-K, filed March 30, 2010)
|
|
*
|
Covenant Transportation Group, Inc. Third Amended and Restated 2006 Omnibus Incentive Plan (Incorporated by reference to Appendix A to the Company's Schedule 14A, filed April 19, 2013)
|
|
|
Amendment No. 1 to Third Amended and Restated Credit Agreement, dated March 27, 2009, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., JPMorgan Chase Bank, N.A., and Textron Financial Corporation (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed May 15, 2009)
|
|
Second Amendment to Third Amended and Restated Credit Agreement, dated February 25, 2010, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., JPMorgan Chase Bank, N.A., and Textron Financial Corporation (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed May 17, 2010)
|
|
|
Third Amendment to Third Amended and Restated Credit Agreement, dated July 30, 2010, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., and JP Morgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed November 9, 2010)
|
|
|
Fourth Amendment to Third Amended and Restated Credit Agreement, dated August 31, 2010, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., and JP Morgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.2 to the Company's Form 10-Q, filed November 9, 2010)
|
|
|
Fifth Amendment to Third Amended and Restated Credit Agreement, dated September 1, 2011, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., and JP Morgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.1 to the Company's Report on Form 8-K, filed October 28, 2011)
|
|
|
Sixth Amendment to Third Amended and Restated Credit Agreement, dated effective as of October 24, 2011, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., and JP Morgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.2 to the Company's Report on Form 8-K, filed October 28, 2011)
|
|
|
Seventh Amendment to Third Amended and Restated Credit Agreement, dated effective as of March 29, 2012, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., and JP Morgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.1 to the Company's Report on Form 8-K, filed April 2, 2012)
|
|
|
Eighth Amendment to Third Amended and Restated Credit Agreement, dated effective as of December 31, 2012, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., and JP Morgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.1 to the Company's Report on Form 8-K, filed January 31, 2013)
|
|
|
Ninth Amendment to Third Amended and Restated Credit Agreement and Related Security Documents, dated effective as of August 6, 2014, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., and JPMorgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed November 13, 2014)
|
|
|
Tenth Amendment to Third Amended and Restated Credit Agreement and Related Security Documents, dated effective as of September 8, 2014, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, Inc., Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Bank of America, N.A., and JPMorgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.2 to the Company's Form 10-Q, filed November 13, 2014)
|
|
*
|
Consulting Agreement (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed November 9, 2016)
|
|
|
Joinder, Supplement and Eleventh Amendment to Third Amended and Restated Credit Agreement, dated effective as of August 6, 2015, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, LLC, Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Driven Analytic Solutions, LLC, Covenant Properties, LLC, Bank of America, N.A., and JPMorgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed November 9, 2015)
|
|
|
Twelfth Amendment to Third Amended and Restated Credit Agreement, dated effective as of February 25, 2016, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, LLC, Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Driven Analytic Solutions, LLC, Covenant Properties, LLC, Bank of America, N.A., and JPMorgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.2 to the Company's Form 10-Q, filed May 10, 2016)
|
|
|
Thirteenth Amendment to Third Amended and Restated Credit Agreement, dated effective as of December 16, 2016, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, LLC, Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Driven Analytic Solutions, LLC, Bank of America, N.A., and JPMorgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.26 to the Company's Form 10-K, filed March 14, 2017)
|
*
|
First Amendment to Consulting Agreement (Incorporated by reference to Exhibit 10.27 to the Company's Form 10-K, filed March 14, 2017)
|
|
|
Fourteenth Amendment to Third Amended and Restated Credit Agreement, dated effective as of November 28, 2017, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, LLC, Southern Refrigerated Transport, Inc., Covenant Transport Solutions, Inc., Star Transportation, Inc., Driven Analytic Solutions, LLC, Transport Management Services, LLC, Bank of America, N.A., and JPMorgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.27 to the Company's Form 10-K, filed February 28, 2018)
|
|
|
Fifteenth Amendment to Third Amended and Restated Credit Agreement, dated effective as of June 19, 2018, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, LLC, Southern Refrigerated Transport, Inc., Covenant Transport Solutions, LLC, Star Transportation, Inc., Covenant Logistics, Inc., Driven Analytic Solutions, LLC, Transport Management Services, LLC, Bank of America, N.A., and JPMorgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed August 8, 2018)
|
|
|
Sixteenth Amendment to Third Amended and Restated Credit Agreement, dated effective as of July 3, 2018, among Covenant Transportation Group, Inc., Covenant Transport, Inc., CTG Leasing Company, Covenant Asset Management, LLC, Southern Refrigerated Transport, Inc., Covenant Transport Solutions, LLC, Star Transportation, Inc., Covenant Logistics, Inc., Driven Analytic Solutions, LLC, Transport Management Services, LLC, Landair Holdings, Inc., Landair Transport, Inc., Landair Logistics, Inc., Landair Leasing, Inc., Bank of America, N.A., and JPMorgan Chase Bank, N.A. (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q, filed November 9, 2018)
|
|
#
|
List of Subsidiaries
|
|
#
|
Consent of Independent Registered Public Accounting Firm – KPMG LLP
|
|
#
|
Certification pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, by David R. Parker, the Company's Principal Executive Officer
|
|
#
|
Certification pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, by Richard B. Cribbs, the Company's Principal Financial Officer
|
|
#
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by David R. Parker, the Company's Chief Executive Officer
|
|
#
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by Richard B. Cribbs, the Company's Chief Financial Officer
|
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
|
XBRL Taxonomy Extension Labels Linkbase Document
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
#
|
Filed herewith.
|
*
|
Management contract or compensatory plan or arrangement.
|
ITEM 16.
|
|
COVENANT TRANSPORTATION GROUP, INC.
|
|
|
|
|
|
|
|
|
|
|
Date: March 13, 2019
|
By:
|
/s/ Richard B. Cribbs
|
|
|
|
Richard B. Cribbs
|
|
|
|
Executive Vice President and Chief Financial Officer in his capacity as such and on behalf of the issuer.
|
|
Signature and Title
|
|
Date
|
|
|
|
/s/ David R. Parker
|
|
March 13, 2019
|
David R. Parker
|
|
|
Chairman of the Board and Chief Executive Officer
(principal executive officer)
|
|
|
|
|
|
/s/ Richard B. Cribbs
|
|
March 13, 2019
|
Richard B. Cribbs
|
|
|
Executive Vice President and Chief Financial Officer
(principal financial officer)
|
|
|
|
|
|
/s/ M. Paul Bunn
|
|
March 13, 2019
|
M. Paul Bunn
|
|
|
Chief Accounting Officer
(principal accounting officer)
|
|
|
|
|
|
/s/ Bradley A. Moline
|
|
March 13, 2019
|
Bradley A. Moline
|
|
|
Director
|
|
|
|
|
|
/s/ William T. Alt
|
|
March 13, 2019
|
William T. Alt
|
|
|
Director
|
|
|
|
|
|
/s/ Robert E. Bosworth
|
|
March 13, 2019
|
Robert E. Bosworth
|
|
|
Director
|
|
|
|
|
|
/s/ Herbert J. Schmidt
|
|
March 13, 2019
|
Herbert J. Schmidt
|
|
|
Director
|
|
|
|
|
|
/s/ W. Miller Welborn
|
|
March 13, 2019
|
W. Miller Welborn
|
|
|
Director
|
|
|
CONSOLIDATED BALANCE SHEETS
|
DECEMBER 31, 2018 AND 2017
|
(In thousands, except share data)
|
|
2018
|
2017
|
||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
23,127
|
$
|
15,356
|
||||
Accounts receivable, net of allowance of $1,985 in 2018 and $1,456 in 2017
|
151,093
|
104,153
|
||||||
Drivers' advances and other receivables, net of allowance of $626 in 2018 and $556 in 2017
|
16,675
|
15,062
|
||||||
Inventory and supplies
|
4,067
|
4,232
|
||||||
Prepaid expenses
|
11,579
|
8,699
|
||||||
Assets held for sale
|
2,559
|
1,444
|
||||||
Income taxes receivable
|
1,109
|
11,551
|
||||||
Other short-term assets
|
1,435
|
1,817
|
||||||
Total current assets
|
211,644
|
162,314
|
||||||
|
||||||||
Property and equipment, at cost
|
638,770
|
650,988
|
||||||
Less: accumulated depreciation and amortization
|
(188,175
|
)
|
(186,916
|
)
|
||||
Net property and equipment
|
450,595
|
464,072
|
||||||
|
||||||||
Goodwill
|
41,598
|
-
|
||||||
Other intangibles, net
|
32,538
|
-
|
||||||
Other assets, net
|
37,149
|
23,282
|
||||||
|
||||||||
Total assets
|
$
|
773,524
|
$
|
649,668
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Checks outstanding in excess of bank balances
|
$
|
1,857
|
$
|
-
|
||||
Accounts payable
|
22,101
|
11,857
|
||||||
Accrued expenses
|
49,503
|
26,520
|
||||||
Current maturities of long-term debt
|
28,710
|
24,596
|
||||||
Current portion of capital lease obligations
|
5,374
|
2,962
|
||||||
Current portion of insurance and claims accrual
|
19,787
|
15,042
|
||||||
Other short-term liabilities
|
-
|
243
|
||||||
Total current liabilities
|
127,332
|
81,220
|
||||||
|
||||||||
Long-term debt
|
166,635
|
164,465
|
||||||
Long-term portion of capital lease obligations
|
35,119
|
21,777
|
||||||
Insurance and claims accrual
|
22,193
|
21,836
|
||||||
Deferred income taxes
|
77,467
|
63,344
|
||||||
Other long-term liabilities
|
1,636
|
1,825
|
||||||
Total liabilities
|
430,382
|
354,467
|
||||||
Commitments and contingent liabilities
|
-
|
-
|
||||||
Stockholders' equity:
|
||||||||
Class A common stock, $.01 par value; 20,000,000 shares authorized; 16,015,708 shares issued and outstanding as of December 31, 2018; and 15,979,703 shares issued and outstanding as of December 31, 2017
|
171
|
171
|
||||||
Class B common stock, $.01 par value; 5,000,000 shares authorized; 2,350,000 shares issued and outstanding
|
24
|
24
|
||||||
Additional paid-in-capital
|
142,177
|
137,242
|
||||||
Accumulated other comprehensive income
|
204
|
293
|
||||||
Retained earnings
|
200,566
|
157,471
|
||||||
Total stockholders' equity
|
343,142
|
295,201
|
||||||
Total liabilities and stockholders' equity
|
$
|
773,524
|
$
|
649,668
|
|
2018
|
2017
|
2016
|
|||||||||
Revenues
|
||||||||||||
Freight revenue
|
$
|
779,729
|
$
|
626,809
|
$
|
610,845
|
||||||
Fuel surcharge revenue
|
105,726
|
78,198
|
59,806
|
|||||||||
Total revenue
|
$
|
885,455
|
$
|
705,007
|
$
|
670,651
|
||||||
|
||||||||||||
Operating expenses:
|
||||||||||||
Salaries, wages, and related expenses
|
304,447
|
241,784
|
234,526
|
|||||||||
Fuel expense
|
121,264
|
103,139
|
103,108
|
|||||||||
Operations and maintenance
|
55,505
|
48,774
|
45,864
|
|||||||||
Revenue equipment rentals and purchased transportation
|
183,645
|
141,954
|
117,472
|
|||||||||
Operating taxes and licenses
|
11,831
|
9,878
|
11,712
|
|||||||||
Insurance and claims
|
43,333
|
33,155
|
32,596
|
|||||||||
Communications and utilities
|
7,061
|
6,938
|
6,057
|
|||||||||
General supplies and expenses
|
23,227
|
14,783
|
14,413
|
|||||||||
Depreciation and amortization, including gains and losses on disposition of property and equipment
|
76,156
|
76,447
|
72,456
|
|||||||||
Total operating expenses
|
826,469
|
676,852
|
638,204
|
|||||||||
Operating income
|
58,986
|
28,155
|
32,447
|
|||||||||
Interest expense, net
|
8,708
|
8,258
|
8,226
|
|||||||||
Income from equity method investment
|
(7,732
|
)
|
(3,400
|
)
|
(3,000
|
)
|
||||||
Income before income taxes
|
58,010
|
23,297
|
27,221
|
|||||||||
Income tax expense (benefit)
|
15,507
|
(32,142
|
)
|
10,386
|
||||||||
Net income
|
$
|
42,503
|
$
|
55,439
|
$
|
16,835
|
||||||
|
||||||||||||
Income per share:
|
||||||||||||
Basic income per share
|
$
|
2.32
|
$
|
3.03
|
$
|
0.93
|
||||||
|
||||||||||||
Diluted income per share
|
$
|
2.30
|
$
|
3.02
|
$
|
0.92
|
||||||
|
||||||||||||
Basic weighted average shares outstanding
|
18,340
|
18,279
|
18,182
|
|||||||||
|
||||||||||||
Diluted weighted average shares outstanding
|
18,469
|
18,372
|
18,266
|
|
2018
|
2017
|
2016
|
|||||||||
|
||||||||||||
Net income
|
$
|
42,503
|
$
|
55,439
|
$
|
16,835
|
||||||
|
||||||||||||
Other comprehensive (loss) income:
|
||||||||||||
|
||||||||||||
Unrealized gain on effective portion of cash flow hedges, net of tax of $377, $51, and $2,696 in 2018, 2017 and 2016, respectively
|
993
|
149
|
4,307
|
|||||||||
|
||||||||||||
Reclassification of cash flow hedge (gains) losses into statement of operations, net of tax of $408, $1,719, and $6,634 in 2018, 2017 and 2016, respectively
|
(1,076
|
)
|
2,784
|
10,597
|
||||||||
|
||||||||||||
Unrealized holding loss on investments classified as available-for-sale
|
(6
|
)
|
-
|
-
|
||||||||
Total other comprehensive (loss) income
|
(89
|
)
|
2,933
|
14,904
|
||||||||
|
||||||||||||
Comprehensive income
|
$
|
42,414
|
$
|
58,372
|
$
|
31,739
|
|
Accumulated
|
|||||||||||||||||||||||||||
|
Additional
|
Other
|
Total
|
|||||||||||||||||||||||||
|
Common Stock
|
Paid-In
|
Treasury
|
Comprehensive
|
Retained
|
Stockholders
|
||||||||||||||||||||||
|
Class A
|
Class B
|
Capital
|
Stock
|
Income
|
Earnings
|
Equity
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Balances at December 31, 2015
|
$
|
170
|
$
|
24
|
$
|
139,968
|
$
|
(3,408
|
)
|
$
|
(17,544
|
)
|
$
|
82,950
|
$
|
202,160
|
||||||||||||
Net income
|
-
|
-
|
-
|
-
|
-
|
16,835
|
16,835
|
|||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
14,904
|
-
|
14,904
|
|||||||||||||||||||||
Effect of adoption of ASU 2016-09
|
-
|
-
|
-
|
-
|
-
|
2,247
|
2,247
|
|||||||||||||||||||||
Stock-based employee compensation expense
|
-
|
-
|
1,178
|
-
|
-
|
-
|
1,178
|
|||||||||||||||||||||
Exercise of stock options
|
-
|
-
|
(27
|
)
|
59
|
-
|
-
|
32
|
||||||||||||||||||||
Issuance of restricted shares, net
|
-
|
-
|
(3,207
|
)
|
2,265
|
-
|
-
|
(942
|
)
|
|||||||||||||||||||
Balances at December 31, 2016
|
$
|
170
|
$
|
24
|
$
|
137,912
|
$
|
(1,084
|
)
|
$
|
(2,640
|
)
|
$
|
102,032
|
$
|
236,414
|
||||||||||||
Net income
|
-
|
-
|
-
|
-
|
-
|
55,439
|
55,439
|
|||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
2,933
|
-
|
2,933
|
|||||||||||||||||||||
Stock-based employee compensation expense
|
-
|
-
|
951
|
-
|
-
|
-
|
951
|
|||||||||||||||||||||
Issuance of restricted shares, net
|
1
|
-
|
(1,621
|
)
|
1,084
|
-
|
-
|
(536
|
)
|
|||||||||||||||||||
Balances at December 31, 2017
|
$
|
171
|
$
|
24
|
$
|
137,242
|
$
|
-
|
$
|
293
|
$
|
157,471
|
$
|
295,201
|
||||||||||||||
Net income
|
-
|
-
|
-
|
-
|
-
|
42,503
|
42,503
|
|||||||||||||||||||||
Effect of adoption of ASU 2014-09
|
-
|
-
|
-
|
-
|
-
|
592
|
592
|
|||||||||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
(89
|
)
|
-
|
(89
|
)
|
|||||||||||||||||||
Stock-based employee compensation expense
|
-
|
-
|
4,802
|
-
|
-
|
-
|
4,802
|
|||||||||||||||||||||
Issuance of restricted shares, net
|
-
|
-
|
133
|
-
|
-
|
-
|
133
|
|||||||||||||||||||||
Balances at December 31, 2018
|
$
|
171
|
$
|
24
|
$
|
142,177
|
$
|
-
|
$
|
204
|
$
|
200,566
|
$
|
343,142
|
|
2018
|
2017
|
2016
|
|||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$
|
42,503
|
$
|
55,439
|
$
|
16,835
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Provision (reversal) for losses on accounts receivable
|
507
|
454
|
(241
|
)
|
||||||||
Reversal of gain on sales to equity method investee
|
(189
|
)
|
(179
|
)
|
(207
|
)
|
||||||
Depreciation and amortization
|
75,859
|
72,422
|
71,647
|
|||||||||
Amortization of deferred financing fees
|
148
|
242
|
293
|
|||||||||
Deferred income tax expense (benefit)
|
13,840
|
(23,023
|
)
|
(922
|
)
|
|||||||
Income tax (expense) benefit arising from restricted share vesting and stock options exercised
|
(44
|
)
|
457
|
1,108
|
||||||||
Stock-based compensation expense
|
5,177
|
1,201
|
1,378
|
|||||||||
Equity in income of affiliate
|
(7,732
|
)
|
(3,400
|
)
|
(3,000
|
)
|
||||||
Return on investment in affiliated company
|
1,960
|
1,960
|
1,470
|
|||||||||
Loss (gain) on disposition of property and equipment
|
298
|
4,024
|
808
|
|||||||||
Return on investment in available-for-sale securities
|
(13
|
)
|
-
|
-
|
||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Receivables and advances
|
(27,199
|
)
|
(23,670
|
)
|
21,207
|
|||||||
Prepaid expenses and other assets
|
(2,127
|
)
|
1,768
|
(1,464
|
)
|
|||||||
Inventory and supplies
|
168
|
(252
|
)
|
24
|
||||||||
Insurance and claims accrual
|
2,412
|
(1,165
|
)
|
(1,390
|
)
|
|||||||
Accounts payable and accrued expenses
|
19,232
|
(3,425
|
)
|
(5,116
|
)
|
|||||||
Net cash flows provided by operating activities
|
124,800
|
82,853
|
102,430
|
|||||||||
|
||||||||||||
Cash flows from investing activities:
|
||||||||||||
Acquisition of Landair Holdings, Inc., net of cash acquired
|
(105,946
|
)
|
-
|
-
|
||||||||
Purchase of available-for-sale securities
|
(1,496
|
)
|
-
|
-
|
||||||||
Acquisition of property and equipment
|
(75,142
|
)
|
(110,802
|
)
|
(112,794
|
)
|
||||||
Proceeds from disposition of property and equipment
|
61,687
|
48,749
|
65,507
|
|||||||||
Net cash flows used by investing activities
|
(120,897
|
)
|
(62,053
|
)
|
(47,287
|
)
|
||||||
|
||||||||||||
Cash flows from financing activities:
|
||||||||||||
Change in checks outstanding in excess of bank balances
|
1,857
|
(189
|
)
|
(4,509
|
)
|
|||||||
Proceeds from issuance of notes payable
|
100,811
|
121,210
|
69,432
|
|||||||||
Proceeds from exercise of stock options
|
-
|
-
|
32
|
|||||||||
Repayments of notes payable
|
(89,569
|
)
|
(122,676
|
)
|
(120,630
|
)
|
||||||
Repayments of capital lease obligations
|
(3,883
|
)
|
(7,416
|
)
|
(4,140
|
)
|
||||||
Proceeds under revolving credit facility
|
1,598,213
|
1,271,669
|
1,023,978
|
|||||||||
Repayments under revolving credit facility
|
(1,603,309
|
)
|
(1,274,847
|
)
|
(1,014,796
|
)
|
||||||
Payment of minimum tax withholdings on stock compensation
|
(242
|
)
|
(785
|
)
|
(1,142
|
)
|
||||||
Debt refinancing costs
|
(10
|
)
|
(160
|
)
|
(108
|
)
|
||||||
Net cash flows provided by (used in) financing activities
|
3,868
|
(13,194
|
)
|
(51,883
|
)
|
|||||||
|
||||||||||||
Net change in cash and cash equivalents
|
7,771
|
7,606
|
3,260
|
|||||||||
|
||||||||||||
Cash and cash equivalents at beginning of year
|
15,356
|
7,750
|
4,490
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
23,127
|
$
|
15,356
|
$
|
7,750
|
||||||
|
||||||||||||
Supplemental disclosure of cash flow information:
|
||||||||||||
Cash paid (received) during the year for:
|
||||||||||||
Interest, net of capitalized interest
|
$
|
8,568
|
$
|
8,268
|
$
|
8,453
|
||||||
Income taxes
|
$
|
(5,388
|
)
|
$
|
(2,222
|
)
|
$
|
6,412
|
||||
Equipment purchased under capital leases
|
$
|
19,638
|
$
|
9,953
|
$
|
11,765
|
1.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
(in thousands)
|
Twelve Months Ended
|
|||||||||||
|
December 31,
|
|||||||||||
|
2018
|
2017
|
2016
|
|||||||||
Total Revenues:
|
||||||||||||
|
||||||||||||
Truckload Segment:
|
||||||||||||
Expedited
|
$
|
334,118
|
$
|
332,930
|
$
|
370,689
|
||||||
Dedicated
|
247,877
|
144,845
|
60,154
|
|||||||||
Refrigerated
|
135,189
|
135,059
|
170,383
|
|||||||||
OTR
|
9,862
|
-
|
-
|
|||||||||
Truckload Revenues
|
727,046
|
612,834
|
601,226
|
|||||||||
|
||||||||||||
Managed Freight Segment:
|
||||||||||||
Brokerage
|
114,827
|
89,042
|
66,867
|
|||||||||
Warehouse
|
16,480
|
-
|
-
|
|||||||||
TMS
|
14,940
|
-
|
-
|
|||||||||
Shuttle & Switching
|
7,100
|
-
|
-
|
|||||||||
Factoring
|
5,062
|
3,131
|
2,558
|
|||||||||
Managed Freight Revenues
|
158,409
|
92,173
|
69,425
|
|||||||||
|
||||||||||||
Total
|
$
|
885,455
|
$
|
705,007
|
$
|
670,651
|
Years ended December 31:
|
Beginning balance January 1,
|
Additional provisions to (reversal of) allowance
|
Write-offs and other adjustments
|
Ending balance December 31,
|
||||||||||||
|
||||||||||||||||
2018
|
$
|
1,456
|
$
|
507
|
$
|
22
|
$
|
1,985
|
||||||||
|
||||||||||||||||
2017
|
$
|
1,345
|
$
|
454
|
$
|
(343
|
)
|
$
|
1,456
|
|||||||
|
||||||||||||||||
2016
|
$
|
1,857
|
$
|
(241
|
)
|
$
|
(271
|
)
|
$
|
1,345
|
|
●
|
auto liability - $1.0 million
|
|
●
|
workers' compensation - $1.3 million
|
|
●
|
cargo - $0.3 million
|
|
●
|
employee medical - $0.4 million
|
|
●
|
physical damage - 100%
|
(in thousands except per share data)
|
||||||||||||
|
2018
|
2017
|
2016
|
|||||||||
Numerator:
|
||||||||||||
|
||||||||||||
Net income
|
$
|
42,503
|
$
|
55,439
|
$
|
16,835
|
||||||
|
||||||||||||
Denominator:
|
||||||||||||
|
||||||||||||
Denominator for basic income per share – weighted-average shares
|
18,340
|
18,279
|
18,182
|
|||||||||
Effect of dilutive securities:
|
||||||||||||
Equivalent shares issuable upon conversion of unvested restricted shares
|
129
|
93
|
84
|
|||||||||
Denominator for diluted income per share adjusted weighted-average shares and assumed conversions
|
18,469
|
18,372
|
18,266
|
|||||||||
|
||||||||||||
Net income per share:
|
||||||||||||
Basic income per share
|
$
|
2.32
|
$
|
3.03
|
$
|
0.93
|
||||||
Diluted income per share
|
$
|
2.30
|
$
|
3.02
|
$
|
0.92
|
|
Twelve Months Ended December 31, 2018
|
|||||||||||
|
Balances without
|
|||||||||||
|
adoption of Topic
|
|||||||||||
Financial Statement Line Item (in thousands)
|
As reported
|
Adjustments
|
606 | |||||||||
Consolidated Balance Sheet
|
||||||||||||
Accounts receivable, net of allowances
|
$
|
151,093
|
$
|
(1,244
|
)
|
$
|
149,849
|
|||||
Total assets
|
773,524
|
(1,244
|
)
|
772,280
|
||||||||
Accrued expenses
|
49,503
|
(277
|
)
|
49,226
|
||||||||
Deferred income taxes
|
77,467
|
(266
|
)
|
77,201
|
||||||||
Total liabilities
|
430,382
|
(543
|
)
|
429,839
|
||||||||
Retained earnings
|
200,566
|
(701
|
)
|
199,865
|
||||||||
Total stockholders’ equity
|
343,142
|
(701
|
)
|
342,441
|
||||||||
Total liabilities and stockholders’ equity
|
773,524
|
(1,244
|
)
|
772,280
|
||||||||
Consolidated Statement of Operations
|
||||||||||||
Freight revenue
|
779,729
|
(234
|
)
|
779,495
|
||||||||
Total revenue
|
885,455
|
(234
|
)
|
885,221
|
||||||||
Salaries, wages and related expenses
|
304,447
|
13
|
304,460
|
|||||||||
Revenue equipment rentals and purchased transportation
|
183,645
|
(95
|
)
|
183,550
|
||||||||
Total operating expenses
|
826,469
|
(82
|
)
|
826,387
|
||||||||
Income tax expense (benefit)
|
15,507
|
(41
|
)
|
15,466
|
||||||||
Net income
|
42,503
|
(111
|
)
|
42,392
|
||||||||
Consolidated Statement of Comprehensive Income
|
||||||||||||
Net income
|
42,503
|
(111
|
)
|
42,392
|
||||||||
Comprehensive income
|
42,414
|
(111
|
)
|
42,303
|
||||||||
Consolidated Statement of Cash Flows
|
||||||||||||
Operating Cash Flows
|
||||||||||||
Net income
|
42,503
|
(111
|
)
|
42,392
|
||||||||
Deferred income tax expense (benefit)
|
13,840
|
(41
|
)
|
13,799
|
||||||||
Change in: Receivables and advances
|
(27,199
|
)
|
234
|
(26,965
|
)
|
|||||||
Change in: Accounts payable and accrued expenses
|
19,232
|
(82
|
)
|
19,150
|
||||||||
Net cash flows provided by operating activities
|
124,800
|
-
|
124,800
|
2.
|
LIQUIDITY
|
3.
|
STOCK-BASED COMPENSATION
|
|
Number of
stock
awards
(in thousands)
|
Weighted
|
||||||
|
average grant
|
|||||||
|
date fair
|
|||||||
|
value
|
|||||||
|
||||||||
Unvested at December 31, 2015
|
330
|
$
|
12.43
|
|||||
|
||||||||
Granted
|
120
|
$
|
18.92
|
|||||
Vested
|
(169
|
)
|
$
|
5.28
|
||||
Forfeited
|
(16
|
)
|
$
|
16.53
|
||||
Unvested at December 31, 2016
|
265
|
$
|
18.63
|
|||||
|
||||||||
Granted
|
434
|
$
|
16.69
|
|||||
Vested
|
(96
|
)
|
$
|
12.78
|
||||
Forfeited
|
(16
|
)
|
$
|
19.25
|
||||
Unvested at December 31, 2017
|
587
|
$
|
18.14
|
|||||
|
||||||||
Granted
|
153
|
$
|
30.32
|
|||||
Vested
|
(35
|
)
|
$
|
25.97
|
||||
Forfeited
|
(30
|
)
|
$
|
27.58
|
||||
Unvested at December 31, 2018
|
675
|
$
|
20.08
|
4.
|
PROPERTY AND EQUIPMENT
|
(in thousands)
|
Estimated Useful Lives
|
2018
|
2017
|
|||||||||
Revenue equipment
|
3-10 years
|
$
|
504,192
|
$
|
519,797
|
|||||||
Communications equipment
|
5-10 years
|
3,850
|
4,585
|
|||||||||
Land and improvements
|
0-15 years
|
25,240
|
25,061
|
|||||||||
Buildings and leasehold improvements
|
7-40 years
|
75,134
|
74,513
|
|||||||||
Construction in-progress
|
-
|
3,121
|
2,023
|
|||||||||
Other
|
2-10 years
|
27,233
|
25,009
|
|||||||||
|
$
|
638,770
|
$
|
650,988
|
5.
|
GOODWILL AND OTHER ASSETS
|
(in thousands)
|
2018
|
2017
|
||||||
Investment in TEL
|
$
|
26,106
|
$
|
20,145
|
||||
Other assets, net
|
11,043
|
3,137
|
||||||
Total other assets
|
$
|
37,149
|
$
|
23,282
|
(in thousands)
|
December 31, 2018
|
|||||||||||||||
|
Gross intangible assets
|
Accumulated amortization
|
Net intangible assets
|
Life (months)
|
||||||||||||
Trade name
|
$
|
4,400
|
$
|
(147
|
)
|
$
|
4,253
|
180
|
||||||||
Non-Compete agreement
|
1,400
|
$
|
(140
|
)
|
1,260
|
60
|
||||||||||
Customer relationships
|
28,200
|
$
|
(1,175
|
)
|
27,025
|
144
|
||||||||||
Total
|
$
|
34,000
|
$
|
(1,462
|
)
|
$
|
32,538
|
|
(In thousands)
|
|||
2019
|
$
|
2,923
|
||
2020
|
2,923
|
|||
2021
|
2,923
|
|||
2022
|
2,923
|
|||
2023
|
2,783
|
|||
Thereafter
|
18,063
|
6.
|
DEBT
|
(in thousands)
|
December 31, 2018
|
December 31, 2017
|
||||||||||||||
|
Current
|
Long-Term
|
Current
|
Long-Term
|
||||||||||||
Borrowings under Credit Facility
|
$
|
-
|
$
|
3,911
|
$
|
-
|
$
|
9,007
|
||||||||
Revenue equipment installment notes; weighted average interest rate of 3.7% at December 31, 2018, and 3.3% December 31, 2017, due in monthly installments with final maturities at various dates ranging from January 2019 to July 2023, secured by related revenue equipment
|
27,809
|
139,115
|
23,732
|
130,946
|
||||||||||||
|
||||||||||||||||
Real estate notes; interest rate of 4.1% at December 31, 2018 due in monthly installments with a fixed maturity at August 2035 and weighted average interest rate of 3.1% at December 31, 2017 due in monthly installments with fixed maturities at December 2018 and August 2035, secured by related real estate
|
1,048
|
23,763
|
1,004
|
24,810
|
||||||||||||
Deferred loan costs
|
(147
|
)
|
(154
|
)
|
(140
|
)
|
(298
|
)
|
||||||||
Total debt
|
28,710
|
166,635
|
24,596
|
164,465
|
||||||||||||
Principal portion of capital lease obligations, secured by related revenue equipment
|
5,374
|
35,119
|
2,962
|
21,777
|
||||||||||||
|
||||||||||||||||
Total debt and capital lease obligations
|
$
|
34,084
|
$
|
201,754
|
$
|
27,558
|
$
|
186,242
|
|
(in thousands)
|
|||
2019
|
$
|
28,857
|
||
2020
|
39,121
|
|||
2021
|
61,058
|
|||
2022
|
43,324
|
|||
2023
|
4,185
|
|||
Thereafter
|
$
|
19,100
|
7.
|
LEASES
|
|
Operating
|
Capital
|
||||||
2019
|
$
|
16,331
|
$
|
6,511
|
||||
2020
|
11,726
|
9,748
|
||||||
2021
|
7,973
|
7,721
|
||||||
2022
|
6,272
|
9,487
|
||||||
2023
|
208
|
9,148
|
||||||
Thereafter
|
35
|
1,420
|
||||||
Total minimum lease payments
|
$
|
42,545
|
$
|
44,035
|
||||
Less: amount representing interest
|
(3,542
|
)
|
||||||
Present value of minimum lease payments
|
40,493
|
|||||||
Less: current portion
|
(5,374
|
)
|
||||||
Capital lease obligations, long-term
|
$
|
35,119
|
(in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Revenue equipment rentals
|
$
|
14,682
|
$
|
12,055
|
$
|
10,773
|
||||||
Building and lot rentals
|
1,339
|
448
|
708
|
|||||||||
Other equipment rentals
|
881
|
261
|
254
|
|||||||||
|
$
|
16,902
|
$
|
12,764
|
$
|
11,735
|
8.
|
INCOME TAXES
|
(in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Federal, current
|
$
|
-
|
|
$
|
(7,780
|
)
|
$
|
11,951
|
||||
Federal, deferred
|
14,117
|
(28,055
|
)
|
(2,925
|
)
|
|||||||
State, current
|
1,410
|
|
(1,737
|
)
|
1,811
|
|||||||
State, deferred
|
(20
|
) |
5,430
|
(451
|
)
|
|||||||
Actual income tax expense
|
$
|
15,507
|
$
|
(32,142
|
)
|
$
|
10,386
|
(in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Computed "expected" income tax expense
|
$
|
12,182
|
$
|
8,154
|
$
|
9,527
|
||||||
State income taxes, net of federal income tax effect
|
2,610
|
862
|
953
|
|||||||||
Per diem allowances
|
1,446
|
2,145
|
2,205
|
|||||||||
Tax contingency accruals
|
(57
|
)
|
(43
|
)
|
(273
|
)
|
||||||
Valuation allowance, net
|
-
|
(1,167
|
)
|
-
|
||||||||
Tax credits
|
(1,042
|
)
|
(1,084
|
)
|
(694
|
)
|
||||||
Impact of Tax Act remeasurement
|
-
|
(40,123
|
)
|
-
|
||||||||
Excess tax benefits on share-based compensation
|
50
|
(457
|
)
|
-
|
||||||||
Other, net
|
318
|
(429
|
)
|
(1,332
|
)
|
|||||||
Income tax expense (benefit)
|
$
|
15,507
|
$
|
(32,142
|
)
|
$
|
10,386
|
(in thousands)
|
2018
|
2017
|
||||||
Deferred tax assets:
|
||||||||
Insurance and claims
|
$
|
9,593
|
$
|
8,797
|
||||
Net operating loss carryovers
|
10,260
|
4,755
|
||||||
Tax credits
|
11,985
|
11,875
|
||||||
Other
|
8,350
|
4,414
|
||||||
Valuation allowance
|
(63
|
)
|
(63
|
)
|
||||
Total deferred tax assets
|
40,125
|
29,778
|
||||||
|
||||||||
Deferred tax liabilities:
|
||||||||
Property and equipment
|
(87,939
|
)
|
(76,325
|
)
|
||||
Investment in partnership
|
(26,066
|
)
|
(14,197
|
)
|
||||
Deferred fuel hedge
|
(73
|
)
|
(99
|
)
|
||||
Other
|
(569
|
)
|
-
|
|||||
Prepaid expenses
|
(2,945
|
)
|
(2,501
|
)
|
||||
Total deferred tax liabilities
|
(117,592
|
)
|
(93,122
|
)
|
||||
|
||||||||
Net deferred tax liability
|
$
|
(77,467
|
)
|
$
|
(63,344
|
)
|
|
2018
|
2017
|
2016
|
|||||||||
Balance as of January 1,
|
$
|
1,924
|
$
|
2,051
|
$
|
2,394
|
||||||
Increases related to prior year tax positions
|
4
|
19
|
-
|
|||||||||
Decreases related to prior year positions
|
(9
|
)
|
(10
|
)
|
-
|
|||||||
Increases related to current year tax positions
|
-
|
-
|
-
|
|||||||||
Decreases related to settlements with taxing authorities
|
-
|
-
|
(88
|
)
|
||||||||
Decreases related to lapsing of statute of limitations
|
(123
|
)
|
(136
|
)
|
(255
|
)
|
||||||
Balance as of December 31,
|
$
|
1,796
|
$
|
1,924
|
$
|
2,051
|
(in thousands)
|
As of the years ended December 31,
|
|||||||
|
2018
|
2017
|
||||||
Current Assets
|
$
|
25,877
|
$
|
19,660
|
||||
Non-current Assets
|
273,987
|
183,905
|
||||||
Current Liabilities
|
78,530
|
53,981
|
||||||
Non-current Liabilities
|
176,389
|
117,135
|
||||||
Total Equity
|
$
|
44,945
|
$
|
32,449
|
(in thousands)
|
As of the years ended December 31,
|
|||||||||||
|
2018
|
2017
|
2016
|
|||||||||
Revenue
|
$
|
108,801
|
$
|
84,865
|
$
|
94,432
|
||||||
Operating Expenses
|
84,588
|
72,868
|
83,475
|
|||||||||
Operating Income
|
24,213
|
11,997
|
10,957
|
|||||||||
Net Income
|
$
|
16,496
|
$
|
6,954
|
$
|
6,598
|
10.
|
DEFERRED PROFIT SHARING EMPLOYEE BENEFIT PLAN
|
11.
|
RELATED PARTY TRANSACTIONS
|
12.
|
OTHER COMPREHENSIVE INCOME ("OCI")
|
|
Amount Reclassified from OCI for the years ended
|
|
|||||||||||
Details about OCI Components
|
December 31,
|
Affected Line Item in the Statement of Operations
|
|||||||||||
|
2018
|
2017
|
2016
|
|
|||||||||
Gains (losses) on cash flow hedges
|
|
||||||||||||
Commodity derivative contracts
|
$
|
1,600
|
$
|
(4,065
|
)
|
$
|
(16,674
|
)
|
Fuel expense
|
||||
|
(440
|
)
|
1,554
|
6,419
|
Income tax expense
|
||||||||
|
$
|
1,160
|
$
|
(2,511
|
)
|
$
|
(10,255
|
)
|
Net of tax
|
||||
Interest rate swap contracts
|
$
|
(115
|
)
|
$
|
(438
|
)
|
$
|
(557
|
)
|
Interest expense
|
|||
|
32
|
165
|
215
|
Income tax expense
|
|||||||||
|
$
|
(83
|
)
|
$
|
(273
|
)
|
$
|
(342
|
)
|
Net of tax
|
13.
|
COMMITMENTS AND CONTINGENT LIABILITIES
|
14.
|
AVAILABLE-FOR-SALE SECURITIES
|
(in thousands)
|
December 31, 2018
|
|||||||||||
|
Amortized cost basis
|
Gross unrealized losses (less than 12 months)
|
Fair value
|
|||||||||
US corporate securities, maturing within one to five years
|
$
|
396
|
$
|
(3
|
)
|
$
|
393
|
|||||
Certificates of deposit, maturing in less than one year
|
600
|
(1
|
)
|
599
|
||||||||
Certificates of deposit, maturing within one to five years
|
500
|
(3
|
)
|
497
|
||||||||
Total available-for-sale securities
|
$
|
1,496
|
$
|
(7
|
)
|
$
|
1,489
|
15.
|
ACQUISITION OF LANDAIR HOLDINGS, INC.
|
December 31, 2018
|
||||||||
(in thousands)
|
||||||||
Cash paid
|
$
|
106,700
|
||||||
|
||||||||
Allocated to:
|
||||||||
Historical book value of Landair’s assets and liabilities
|
$
|
25,589
|
||||||
Adjustments to recognize assets and liabilities at acquisition-date fair value:
|
||||||||
Property, plant, and equipment
|
(7,450
|
)
|
||||||
Other assets
|
(1,094
|
)
|
||||||
Liabilities
|
(829
|
)
|
||||||
Fair value of tangible net assets acquired
|
16,216
|
|||||||
Post-acquisition goodwill adjustments
|
(626
|
)
|
||||||
Identifiable intangibles at acquisition-date fair value
|
34,000
|
|||||||
Debt paid at closing
|
15,512
|
|||||||
Excess of consideration transferred over the net amount of assets and liabilities recognized
|
$
|
41,598
|
||||||
|
||||||||
Cash paid pursuant to Stock Purchase Agreement
|
$
|
106,700
|
||||||
Cash acquired included in historical book value of Landair assets and liabilities
|
(754
|
)
|
||||||
Net purchase price
|
$
|
105,946
|
|
July 3, 2018
|
|||
Cash and cash equivalents
|
$
|
754
|
||
Accounts receivable
|
16,339
|
|||
Driver advances and other receivables
|
566
|
|||
Inventory and supplies
|
3
|
|||
Prepaid expenses
|
1,010
|
|||
Assets held for sale
|
128
|
|||
Net property and equipment
|
26,164
|
|||
Other assets, net
|
22
|
|||
Other intangibles, net
|
34,000
|
|||
Total identifiable assets acquired
|
78,986
|
|||
|
||||
Accounts payable
|
(5,475
|
)
|
||
Accrued expenses
|
(5,015
|
)
|
||
Insurance and claims accrual
|
(2,645
|
)
|
||
Other short-term liabilities
|
(123
|
)
|
||
Total liabilities assumed
|
(13,258
|
)
|
||
Net identifiable assets acquired
|
65,728
|
|||
Goodwill
|
40,972
|
|||
Net assets acquired
|
$
|
106,700
|
(in thousands)
|
Year Ended
|
|||
|
December 31, 2018
|
|||
Total revenue
|
$
|
85,124
|
||
Net income
|
$
|
7,418
|
(in thousands)
|
Year Ended
|
|||||||
|
December 31,
|
|||||||
|
2018
|
2017
|
||||||
Total revenue
|
$
|
960,205
|
$
|
825,850
|
||||
Net income
|
$
|
45,387
|
$
|
56,440
|
||||
Basic net income per share
|
$
|
2.49
|
$
|
3.09
|
||||
Diluted net income per share
|
$
|
2.46
|
$
|
3.07
|
16.
|
SEGMENT INFORMATION
|
|
(in thousands)
|
|||||||||||
Year Ended December 31, 2018
|
Truckload
|
Managed Freight
|
Consolidated
|
|||||||||
Revenue
|
$
|
727,046
|
$
|
165,707
|
$
|
892,753
|
||||||
Intersegment revenue
|
-
|
(7,298
|
)
|
(7,298
|
)
|
|||||||
Operating income
|
45,392
|
13,594
|
58,986
|
|||||||||
Depreciation and amortization (1)
|
75,446
|
710
|
76,156
|
|||||||||
Total assets
|
699,266
|
74,258
|
773,524
|
|||||||||
Capital expenditures, net
|
(12,864
|
)
|
(591
|
)
|
(13,455
|
)
|
||||||
|
||||||||||||
Year Ended December 31, 2017
|
||||||||||||
Revenue
|
$
|
612,834
|
$
|
98,182
|
$
|
711,016
|
||||||
Intersegment revenue
|
-
|
(6,009
|
)
|
(6,009
|
)
|
|||||||
Operating income
|
19,567
|
8,588
|
28,155
|
|||||||||
Depreciation and amortization (1)
|
76,423
|
24
|
76,447
|
|||||||||
Total assets
|
607,189
|
42,479
|
649,668
|
|||||||||
Capital expenditures, net (2)
|
71,196
|
810
|
72,006
|
|||||||||
|
||||||||||||
Year Ended December 31, 2016
|
||||||||||||
Revenue
|
$
|
601,226
|
$
|
73,602
|
$
|
674,828
|
||||||
Intersegment revenue
|
-
|
(4,177
|
)
|
(4,177
|
)
|
|||||||
Operating income
|
24,816
|
7,631
|
32,447
|
|||||||||
Depreciation and amortization (1)
|
72,434
|
22
|
72,456
|
|||||||||
Total assets
|
589,249
|
31,289
|
620,538
|
|||||||||
Capital expenditures, net (2)
|
59,009
|
43
|
59,052
|
|
(1)
|
Includes gains and losses on disposition of equipment.
|
|
(2)
|
Includes equipment purchased under capital leases.
|
17.
|
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
|
|
(in thousands except per share amounts)
|
|||||||||||||||
|
||||||||||||||||
|
Mar. 31,
|
June 30,
|
Sep. 30,
|
Dec. 31,
|
||||||||||||
Quarters ended
|
2018
|
2018
|
2018
|
2018
|
||||||||||||
|
||||||||||||||||
Total revenue
|
$
|
173,566
|
$
|
196,318
|
$
|
243,303
|
$
|
272,268
|
||||||||
Operating income
|
6,425
|
14,065
|
16,181
|
22,315
|
||||||||||||
Net income
|
4,417
|
9,971
|
11,614
|
16,501
|
||||||||||||
Basic income per share
|
0.24
|
0.54
|
0.63
|
0.91
|
||||||||||||
Diluted income per share
|
0.24
|
0.54
|
0.63
|
0.89
|
|
(in thousands except per share amounts)
|
|||||||||||||||
|
||||||||||||||||
|
Mar. 31,
|
June 30,
|
Sep. 30,
|
Dec. 31,
|
||||||||||||
Quarters ended
|
2017
|
2017
|
2017
|
2017 (1)
|
||||||||||||
|
||||||||||||||||
Total revenue
|
$
|
158,744
|
$
|
164,326
|
$
|
178,631
|
$
|
203,306
|
||||||||
Operating income
|
309
|
3,962
|
9,041
|
14,843
|
||||||||||||
Net income
|
(39
|
)
|
1,548
|
4,632
|
49,298
|
|||||||||||
Basic income per share
|
(0.00
|
)
|
0.08
|
0.25
|
2.70
|
|||||||||||
Diluted income per share
|
(0.00
|
)
|
0.08
|
0.25
|
2.69
|
(1)
|
Includes $40.1 million one-time benefit related to the Tax Act.
|
(1) |
On May 31, 2011, we acquired a 49% interest in TEL. We account for our investment in TEL using the equity method of accounting.
|
Date: March 13, 2019
|
/s/ David R. Parker
|
|
David R. Parker
|
|
Principal Executive Officer
|
Date: March 13, 2019
|
/s/ Richard B. Cribbs
|
|
Richard B. Cribbs
|
|
Principal Financial Officer
|
Date: March 13, 2019
|
/s/ David R. Parker
|
|
David R. Parker
|
|
Chief Executive Officer
|
Date: March 13, 2019
|
/s/ Richard B. Cribbs
|
|
Richard B. Cribbs
|
|
Chief Financial Officer
|
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Document And Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Mar. 12, 2019 |
Jun. 29, 2018 |
|
Document Information [Line Items] | |||
Entity Registrant Name | COVENANT TRANSPORTATION GROUP INC | ||
Entity Central Index Key | 0000928658 | ||
Trading Symbol | cvti | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Public Float | $ 413.4 | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 2,350,000 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 16,018,513 |
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Accounts receivable allowance | $ 1,985 | $ 1,456 |
Drivers' advances and other receivables, allowance | $ 626 | $ 556 |
Common Class A [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 16,015,708 | 15,979,703 |
Common stock, shares outstanding (in shares) | 16,015,708 | 15,979,703 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Common stock, shares issued (in shares) | 2,350,000 | 2,350,000 |
Common stock, shares outstanding (in shares) | 2,350,000 | 2,350,000 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Net income | $ 42,503 | $ 55,439 | $ 16,835 |
Other comprehensive (loss) income: | |||
Unrealized gain on effective portion of cash flow hedges, net of tax of $377, $51, and $2,696 in 2018, 2017 and 2016, respectively | 993 | 149 | 4,307 |
Reclassification of cash flow hedge (gains) losses into statement of operations, net of tax of $408, $1,719, and $6,634 in 2018, 2017 and 2016, respectively | (1,076) | 2,784 | 10,597 |
Unrealized holding loss on investments classified as available-for-sale | (6) | ||
Total other comprehensive (loss) income | (89) | 2,933 | 14,904 |
Comprehensive income | $ 42,414 | $ 58,372 | $ 31,739 |
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Unrealized loss on effective portion of cash flow hedges, tax | $ 377 | $ 51 | $ 2,696 |
Reclassification of cash flow hedge loss into statement of operations, tax | $ 408 | $ 1,719 | $ 6,634 |
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands |
Common Stock [Member]
Common Class A [Member]
|
Common Stock [Member]
Common Class B [Member]
|
Additional Paid-in Capital [Member] |
Treasury Stock [Member] |
AOCI Attributable to Parent [Member] |
Retained Earnings [Member] |
Total |
---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2015 | $ 170 | $ 24 | $ 139,968 | $ (3,408) | $ (17,544) | $ 82,950 | $ 202,160 |
Net income | 16,835 | 16,835 | |||||
Other comprehensive income | 14,904 | 14,904 | |||||
Effect of adoption of New Standard at Dec. 31, 2015 | 2,247 | 2,247 | |||||
Stock-based employee compensation expense | 1,178 | 1,178 | |||||
Exercise of stock options | (27) | 59 | 32 | ||||
Issuance of restricted shares, net | (3,207) | 2,265 | (942) | ||||
Balance at Dec. 31, 2016 | 170 | 24 | 137,912 | (1,084) | (2,640) | 102,032 | 236,414 |
Net income | 55,439 | 55,439 | |||||
Other comprehensive income | 2,933 | 2,933 | |||||
Stock-based employee compensation expense | 951 | 951 | |||||
Issuance of restricted shares, net | 1 | (1,621) | $ 1,084 | (536) | |||
Balance at Dec. 31, 2017 | 171 | 24 | 137,242 | 293 | 157,471 | 295,201 | |
Net income | 42,503 | 42,503 | |||||
Other comprehensive income | (89) | (89) | |||||
Effect of adoption of New Standard at Dec. 31, 2017 | 592 | 592 | |||||
Stock-based employee compensation expense | 4,802 | 4,802 | |||||
Issuance of restricted shares, net | 133 | 133 | |||||
Balance at Dec. 31, 2018 | $ 171 | $ 24 | $ 142,177 | $ 204 | $ 200,566 | $ 343,142 |
Note 1 - Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Text Block] |
Nature of Business and Segments Covenant Transportation Group, Inc., a Nevada holding company, together with its wholly owned subsidiaries offers truckload transportation and brokerage services to customers throughout the continental United States. We have two reportable segments, our truckload services ("Truckload") and Managed Freight which provides freight brokerage and logistics services.The Truckload segment consists of four service offerings that are aggregated because they have similar economic characteristics and meet the aggregation criteria. The four service offerings that comprise our Truckload segment are as follows: (i) Expedited, provided primarily by Covenant Transport, our historical flagship operation; (ii) Dedicated, provided by all of our operating fleets; (iii) Refrigerated, provided primarily through our Southern Refrigerated Transport, Inc. ("SRT") subsidiary; and (iv) over-the-road ("OTR"), provided primarily by our Landair Transport, Inc. subsidiary.In addition, our Managed Freight segment has service offerings ancillary to our Truckload services, including: freight brokerage, transportation management services ("TMS"), and shuttle and switching services. The operations consist of several operating segments, which are aggregated due to similar margins and customers. Included within Managed Freight are our accounts receivable factoring and warehousing businesses, neither of which meets the quantitative or qualitative reporting thresholds individually or in the aggregate. The following table summarizes our revenue by our two reportable segments, Truckload and Managed Freight, disaggregated to the operating fleet level as used by our chief operating decision maker in making decisions regarding allocation of resources, etc., organized first by reportable segment (i.e. Truckload and Managed Freight) and then by operating fleet for the year ended December 31, 2018
Principles of Consolidation The consolidated financial statements include the accounts of Covenant Transportation Group, Inc., a holding company incorporated in the state of Nevada in 1994, and its wholly owned subsidiaries: Covenant Transport, Inc., a Tennessee corporation; Southern Refrigerated Transport, Inc., an Arkansas corporation; Star Transportation, Inc., a Tennessee corporation, each d/b/a Covenant Transport Services; Covenant Transport Solutions, Inc., a Nevada corporation, d/b/a Transport Financial Services; Covenant Logistics, Inc., a Nevada corporation; Covenant Asset Management, LLC., a Nevada limited liability corporation; CTG Leasing Company, a Nevada corporation; IQS Insurance Risk Retention Group, Inc., a Vermont corporation; Driven Analytic Solutions, LLC, a Nevada limited liability company; Heritage Insurance, Inc., a Tennessee corporation; Landair Holdings, Inc., a Tennessee corporation; Landair Transport, Inc., a Tennessee corporation; Landair Logistics, Inc., a Tennessee corporation; Landair Leasing, Inc., a Tennessee corporation; and Transport Management Services, LLC, a Tennessee limited liability company.References in this report to "it," "we," "us," "our," the "Company," and similar expressions refer to Covenant Transportation Group, Inc. and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Investment in Transport Enterprise Leasing, LLC Transport Enterprise Leasing, LLC ("TEL") is a tractor and trailer equipment leasing company and used equipment reseller. We evaluated our investment in TEL to determine whether it should be recorded on a consolidated basis. Our percentage of ownership interest ( 49% ), an evaluation of control, and whether a variable interest entity ("VIE") existed were all considered in our consolidation assessment. The analysis provided that we do not control TEL and that TEL is not deemed a VIE. We have accounted for our investment in TEL using the equity method of accounting given our 49% ownership interest and ability to exercise significant influence over operating and financial policies. Under the equity method, the cost of our investment is adjusted for our share of equity in the earnings of TEL and reduced by distributions received and our proportionate share of TEL's net income is included in our earnings.On a periodic basis, we assess whether there are any indicators that the fair value of our investment in TEL may be impaired. The investment is impaired only if the estimate of the fair value of the investment is less than the carrying value of the investment, and such decline in value is deemed to be other than temporary. To the extent impairment has occurred, the loss would be measured as the excess of the carrying amount of the investment over the fair value of the investment. As a result of TEL's earnings, no impairment indicators were noted that would provide for impairment of our investment.Revenue Recognition Revenue, drivers' wages, and other direct operating expenses generated by our Truckload reportable segment are recognized proportionally as the transportation service is performed based on the percentage of miles completed as of the period end, as opposed to recognizing revenue upon the completion of the load, which was our historic practice. Revenue is recognized on a gross basis at amounts charged to our customers because we control and are primarily responsible for the fulfillment of the promised service. Revenue includes transportation revenue, fuel surcharges, loading and unloading activities, equipment detention, and other accessorial services. Revenue generated by our Managed Freight segment is recognized upon completion of the services provided. Revenue is recorded on a gross basis, without deducting third party purchased transportation costs, as we act as a principal with substantial risks as primary obligor, except for transactions whereby equipment from our Truckload segment perform the related services, which we record on a net basis in accordance with the related authoritative guidance. Managed Freight revenue includes $5.0 million$3.1 million$2.6 million2018 2017 2016 2013 to supplement several aspects of our non-asset operations, as well as $23.6 million2018 for a warehousing business, which is part of the Landair operation and thus was not part of 2017 or 2016 revenues. Included in Truckload and Managed Freight revenue during the year ended December 31, 2018 $3.9 million$0.9 millionnot the primary generator of the factored receivables in these transactions. Revenue for the warehousing business is generally recognized as the service is performed, based upon a weekly rate.Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make decisions based upon estimates, assumptions, and factors we consider as relevant to the circumstances. Such decisions include the selection of applicable accounting principles and the use of judgment in their application, the results of which impact reported amounts and disclosures. Changes in future economic conditions or other business circumstances may affect the outcomes of our estimates and assumptions. Accordingly, actual results could differ from those anticipated.Cash and Cash Equivalents We consider all highly liquid investments with a maturity of three months or less at acquisition to be cash equivalents. Additionally, we are also subject to concentrations of credit risk related to deposits in banks in excess of the Federal Deposit Insurance Corporation limits.Accounts Receivable and Concentration of Credit Risk We extend credit to our customers in the normal course of business. We perform ongoing credit evaluations and generally do not require collateral. Trade accounts receivable are recorded at their invoiced amounts, net of allowance for doubtful accounts. We evaluate the adequacy of our allowance for doubtful accounts quarterly. Accounts outstanding longer than contractual payment terms are considered past due and are reviewed individually for collectability. We maintain reserves for potential credit losses based upon its loss history and specific receivables aging analysis. Receivable balances are written off when collection is deemed unlikely.Accounts receivable are comprised of a diversified customer base that results in a lack of concentration of credit risk. During 2018 2017 2016 ten customers generated 49% 49% 53% 2018 2016 one customer accounted for more than 10% of our consolidated revenue in each year. In 2017 two such customers. The carrying amount reported in the consolidated balance sheet for accounts receivable approximates fair value based on the fact that the receivables collection averaged approximately 32 33 2018 2017 Included in accounts receivable is $53.6 million and $31.9 million December 31, 2018 2017 $0.4 million$0.2 million85% to 95% of each receivable factored and retain the remainder as collateral for collection issues that might arise. The retained amounts are returned to the clients after the related receivable has been collected, net of interest and fees on the amount we advanced. At December 31, 2018 $1.9 million30–40 days due to the combination of the short-term nature of the financing transaction and the underlying quality of the receivables.The following table provides a summary (in thousands) of the activity in the accounts for 2018 2017 2016
Inventories and Supplies Inventories and supplies consist of parts, tires, fuel, and supplies. Tires on new revenue equipment are capitalized as a component of the related equipment cost when the tractor or trailer is placed in service and recovered through depreciation over the life of the vehicle. Replacement tires and parts on hand at year end are recorded at the lower of cost or market with cost determined using the first -in, first -out (FIFO) method. Replacement tires are expensed when placed in service.Assets Held for Sale Assets held for sale include property and revenue equipment no longer utilized in continuing operations which are available and held for sale. Assets held for sale are no longer subject to depreciation, and are recorded at the lower of depreciated book value or fair market value less selling costs. We periodically review the carrying value of these assets for possible impairment. We expect to sell these assets within twelve months.Property and Equipment Property and equipment is stated at cost less accumulated depreciation. Depreciation for book purposes is determined using the straight-line method over the estimated useful lives of the assets, while depreciation for tax purposes is generally recorded using an accelerated method. Depreciation of revenue equipment is our largest item of depreciation. We generally depreciate new tractors (excluding day cabs) over We annually review the reasonableness of our estimates regarding useful lives and salvage values of our revenue equipment and other long-lived assets based upon, among other things, our experience with similar assets, conditions in the used revenue equipment market, and prevailing industry practice. Changes in the useful life or salvage value estimates, or fluctuations in market values that are five years to salvage values of approximately 15% of their cost. We generally depreciate new trailers over seven years for refrigerated trailers and ten years for dry van trailers to salvage values of approximately 25% of their cost.not reflected in our estimates, could have a material effect on our results of operations. Gains and losses on the disposal of revenue equipment are included in depreciation expense in the consolidated statements of operations.We lease certain revenue equipment under capital leases with terms of approximately 60 84 months. Amortization of leased assets is included in depreciation and amortization expense.Although a portion of our tractors are protected by non-binding indicative trade-in values or binding trade-back agreements with the manufacturers, substantially all of our owned trailers are subject to fluctuations in market prices for used revenue equipment. Moreover, our trade-back agreements are contingent upon reaching acceptable terms for the purchase of new equipment. Declines in the price of used revenue equipment or failure to reach agreement for the purchase of new tractors with the manufacturers issuing trade-back agreements could result in impairment of, or losses on the sale of, revenue equipment. Impairment of Long-Lived Assets Pursuant to applicable accounting standards, revenue equipment and other long-lived assets are tested for impairment whenever an event occurs that indicates an impairment may exist. Expected future cash flows are used to analyze whether an impairment has occurred. If the sum of expected undiscounted cash flows is less than the carrying value of the long-lived asset, then an impairment loss is recognized. We measure the impairment loss by comparing the fair value of the asset to its carrying value. Fair value is determined based on a discounted cash flow analysis or the appraised value of the assets, as appropriate.Goodwill and Other Intangible Assets We classify intangible assets into two categories: (i) intangible assets with definite lives subject to amortization and (ii) goodwill. As a result of the Landair Acquisition, we have goodwill of $41.6 million December 31, 2018 none December 31, 2017 may have occurred. We test intangible assets with definite lives for impairment if conditions exist that indicate the carrying value may not be recoverable. Such conditions may include an economic downturn in a geographic market or a change in the assessment of future operations. We record an impairment charge when the carrying value of the definite lived intangible asset is not recoverable by the cash flows generated from the use of the asset.We determine the useful lives of our identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any agreement, the history of the asset, our long-term strategy for the use of the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized, generally on a straight-line basis, over their useful lives, ranging from 5 to 15 years$32.5 million December 31, 2018 none December 31, 2017 Insurance and Other Claims The primary claims arising against us consist of auto liability (personal injury and property damage), workers' compensation, cargo, commercial liability, and employee medical expenses. Our insurance program involves self-insurance with the following risk retention levels (before giving effect to any commutation of an auto liability policy):
Due to our significant self-insured retention amounts, we have exposure to fluctuations in the number and severity of claims and to variations between our estimated and actual ultimate payouts. We accrue the estimated cost of the uninsured portion of pending claims and an estimate for allocated loss adjustment expenses including legal and other direct costs associated with a claim. Estimates require judgments concerning the nature and severity of the claim, historical trends, advice from third -party administrators and insurers, the size of any potential damage award based on factors such as the specific facts of individual cases, the jurisdictions involved, the prospect of punitive damages, future medical costs, and inflation estimates of future claims development, and the legal and other costs to settle or defend the claims. We have significant exposure to fluctuations in the number and severity of claims. If there is an increase in the frequency and severity of claims, or we are required to accrue or pay additional amounts if the claims prove to be more severe than originally assessed, or any of the claims would exceed the limits of our insurance coverage, our profitability could be adversely affected.In addition to estimates within our self-insured retention layers, we also must make judgments concerning claims where we have third party insurance and for claims outside our coverage limits. Upon settling claims and expenses associated with claims where we have third party coverage, we are generally required to initially fund payment to the claimant and seek reimbursement from the insurer. Receivables from insurers for claims and expenses we have paid on behalf of insurers were $3.0 million$1.1 million December 31, 2018 2017 $5.1 million$2.1 million December 31, 2018 2017 may exceed such limits and, if so, by how much. If one or more claims were to exceed our then effective coverage limits, our financial condition and results of operations could be materially and adversely affected.We also make judgments regarding the ultimate benefit versus risk of commuting certain periods within our auto liability policy. If we commute a policy, we assume 100% risk for covered claims in exchange for a policy refund.Effective April 2018, we entered into new auto liability policies with a three -year term. The policy includes a limit for a single loss of $9.0 million, an aggregate of $18.0 million for each policy year, and a $30.0 million aggregate for the 36 month term ended March 31, 2021. The policy included a policy release premium refund or commutation option of up to $14.0 million, less any future amounts paid on claims by the insurer. A decision with respect to commutation of the policy could be made before April 1, 2021. Additionally, our prior auto liability policy that ran from October 1, 2014 through March 31, 2018, included a commutation provision if we were to commute the policy for the entire 42 months. Based on claims paid to date the policy premium release refund could range from zero to $4.9 million, depending on actual claims settlements in the future. Management cannot predict whether or not future claims or the development of existing claims will justify a commutation of either policy period, and accordingly, no related amounts were recorded at December 31, 2018 Interest We capitalize interest on major projects during construction. Interest is capitalized based on the average interest rate on related debt. Capitalized interest was less than in $0.1 million2018 2017 2016 Fair Value of Financial Instruments Our financial instruments consist primarily of cash and cash equivalents, accounts receiva ble, available-for-sale securities, ac counts payable, debt, and interest rate swaps. The carrying amount of cash and cash equivalents, accounts receivable, accounts payable, and current debt approximates their fair value because of the short-term maturity of these instruments. The carrying value of the factored receivables approximates the fair value, as the receivables are generally repaid directly to us by the client's customer within 30–40 days due to the combination of the short-term nature of the financing transaction and the underlying quality of the receivables. Interest rates that are currently available to us for issuance of long-term debt with similar terms and remaining maturities are used to estimate the fair value of our long-term debt, which primarily consists of revenue equipment installment notes. The fair value of our revenue equipment installment notes approximated the carrying value at December 31, 2018 Additionally, certain investments intended to serve the purposes of capital preservation and to fund insurance losses are designated as available-for-sale as discussed in Note The fair value of our interest rate swap agreements is determined using the market-standard methodology of netting the discounted future fixed-cash payments and the discounted expected variable-cash receipts. The variable-cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. These analyses reflect the contractual terms of the swap, including the period to maturity, and use observable market-based inputs, including interest rate curves and implied volatilities. The fair value calculation also includes an amount for risk of non-performance of our counterparties using "significant unobservable inputs" such as estimates of current credit spreads to evaluate the likelihood of default, which we have determined to be insignificant to the overall fair value of our interest rate swap agreements.14 and are valued based on quoted prices in active markets.Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We have reflected the net liability after offsetting our deferred tax assets and liabilities in the deferred income taxes line in the accompanying consolidated balance sheets in accordance with our retrospective adoption of Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2015 -17, Income Taxes: Balance Sheet Classification of Deferred Taxes , as of December 31, 2015, as discussed below. We believe the future tax deductions will be realized principally through future reversals of existing taxable temporary differences and future taxable income, except for when a valuation allowance has been provided as discussed in Note 8. In the ordinary course of business there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management's evaluation of the facts, circumstances, and information available at the reporting dates. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Potential accrued interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense.Our policy is to recognize income tax benefit arising from the exercise of stock options and restricted share vesting based on the ordering provisions of the tax law as prescribed by the Internal Revenue Code, including indirect tax effects, if any. Lease Accounting and Off-Balance Sheet Transactions We issue residual value guarantees in connection with the operating leases we enter into for certain of our revenue equipment. These leases provide that if we do not purchase the leased equipment from the lessor at the end of the lease term, then we are liable to the lessor for an amount equal to the shortage (if any) between the proceeds from the sale of the equipment and an agreed value. To the extent the expected value at the lease termination date is lower than the residual value guarantee, we would accrue for the difference over the remaining lease term. We believe that proceeds from the sale of equipment under operating leases would equal or exceed the payment obligation on substantially all operating leases. The estimated values at lease termination involve management judgments. As leases are entered into, determination as to the classification as an operating or capital lease involves management judgments on residual values and useful lives.Capital Structure The shares of Class A and B common stock are substantially identical except that the Class B shares are entitled to two votes per share and immediately convert to Class A shares if beneficially owned by anyone other than our Chief Executive Officer or certain members of his immediate family, while Class A shares are entitled to one vote per share. The terms of any future issuances of preferred shares will be set by our Board of Directors.Comprehensive Income Comprehensive income generally includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income for 2018 2017 2016 Income Per Share Basic income per share excludes dilution and is computed by dividing earnings available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted income per share reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in our earnings. The calculation of diluted earnings per share includes approximately 0.1 million December 31, 2018 2017 2016 The following table sets forth the calculation of net income per share included in the consolidated statements of operations for each of the three years ended December 31:
Stock-Based Employee Compensation We issue several types of stock-based compensation, including awards that vest based on service and performance conditions or a combination of the conditions. Performance-based awards vest contingent upon meeting certain performance criteria established by the Compensation Committee of the Board of Directors. All awards require future service. For performance-based awards, determining the appropriate amount to expense in each period is based on likelihood and timing of achieving the stated targets for performance-based awards and requires judgment, including forecasting future financial results. The estimates are revised periodically based on the probability and timing of achieving the required performance and adjustments are made as appropriate. Awards that are only subject to time vesting provisions are amortized using the straight-line method. Recent Accounting Pronouncements Accounting Standards adopted In May 2014 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2014 -09, which supersedes virtually all existing revenue guidance. The new standard introduces a five -step model to determine when and how revenue is recognized. The premise of the new model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires enhanced disclosures regarding the nature, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The new standard became effective for us for our annual and interim reporting periods beginning January 1, 2018. The guidance permits the use of either a full retrospective or modified retrospective adoption approach with a cumulative effect adjustment recorded in either scenario as necessary upon transition.As permitted by the guidance, we elected the modified retrospective approach and thus recognized the cumulative effect of adoption of $0.6 million, net of tax, as a positive adjustment to retained earnings in the first quarter of 2018 as a result of the initial recording of in process revenue and associated direct expenses. Based on our review of our customer shipping arrangements and the related guidance, we have concluded that we will recognize revenue from loads proportionally as the transportation service is performed based on the percentage of miles completed as of the period end, as opposed to recognizing revenue upon the completion of the load, which was our historic practice. Revenue will be recognized on a gross basis at amounts charged to our customers because we control and are primarily responsible for the fulfillment of the promised service. Our recognition of revenue under the new standard approximates our recognition of revenue under the prior standard, as there will generally be a consistent amount of freight in process at the beginning and end of the period; however, seasonality and the day on which the period ends may cause minor differences.The following table summarizes the impacts of adopting ASU 606 on the Company’s consolidated financial statements for the year ended December 31, 2018.
Accounting Standards not yet adoptedIn February 2016, FASB issued ASU 2016 -02, which requires lessees to recognize a right-to-use asset and a lease obligation for all leases. Lessees are permitted to make an accounting policy election to not recognize an asset and liability for leases with a term of twelve months or less. Lessor accounting under the new standard is substantially unchanged. Additional qualitative and quantitative disclosures, including significant judgments made by management, will be required. This new standard will become effective for us in our annual reporting period beginning January 1, 2019, including interim periods within that reporting period and requires a modified retrospective transition approach. We believe the adoption will not have a material impact to net income and will add approximately $43.0 millionfirst quarter of 2019, including an assessment of the new expanded disclosure requirements and a final determination of the impact to adoption and related changes required to internal controls. |
Note 2 - Liquidity |
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Liquidity Disclosure1 [Text Block] |
Our business requires significant capital investments over the short-term and the long-term. We generally finance our capital requirements with borrowings under our Credit Facility, cash flows from operations, long-term operating leases, capital leases, secured installment notes with finance companies, and proceeds from the sale of our used revenue equipment. We had working capital (total current assets less total current liabilities) of $84.3 million$81.1 million December 31, 2018 2017 As of December 31, 2018 $3.9 million$36.3 million$54.8 millionnot funded through notes payable, as well as the nature and timing of collection of accounts receivable, payments of accrued expenses, and receipt of proceeds from disposals of property and equipment. |
Note 3 - Stock-based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Text Block] |
On February 21, 2013, the Compensation Committee of our Board of Directors approved, subject to stockholder approval, a third amendment (the "Third Amendment") to the 2006 Omnibus Incentive Plan (the "Incentive Plan"). The Third Amendment (i) provides that the maximum aggregate number of shares of Class A common stock available for grant of awards under the Incentive Plan from and after May 29, 2013, shall not exceed 750,000, plus any remaining available shares of the 800,000 shares previously made available under the second amendment to the Incentive Plan (the "Second Amendment"), and any expirations, forfeitures, cancellations, or certain other terminations of shares approved for grant under the Third Amendment or the Second Amendment previously reserved, plus any remaining expirations, forfeitures, cancellations, or certain other terminations of such shares, and (ii) re-sets the term of the Incentive Plan to expire with respect to the ability to grant new awards on March 31, 2023. The Incentive Plan permits annual awards of shares of our Class A common stock to executives, other key employees, non-employee directors, and eligible participants under various types of options, restricted share awards, or other equity instruments. At December 31, 2018 50,960 1,550,000 No participant in the Incentive Plan may receive awards of any type of equity instruments in any calendar-year that relates to more than 200,000 shares of our Class A common stock. No awards may be made under the Incentive Plan after March 31, 2023. To the extent available, we have issued treasury stock to satisfy all share-based incentive plans.Included in salaries, wages, and related expenses within the consolidated statements of operations is stock-based compensation expense of $4.8 million$1.0 million$1.2 million2018 2017 2016 $0.4 million2018 $0.3 million2017 $0.2 million2016 2018 2017 2016 no options were granted during these periods. Associated with stock compensation expense was less than , of income tax expense in $0.1 million2018 $0.3 million$0.2 million2017 2016 The Incentive Plan allows participants to pay the federal and state minimum statutory tax withholding requirements related to awards that vest or allows the participant to deliver to us shares of Class A common stock having a fair market value equal to the minimum amount of such required withholding taxes. To satisfy withholding requirements for shares that vested, certain participants elected to deliver to us 11,052 31,297 55,429 $ , 21.89 $ , and 25.09 $ , respectively, based on the closing prices of our Class A common stock on the dates the shares vested in 20.61 2018 2017 2016 $0.2 million$0.8 million$1.1 million2018 2017 2016 The following table summarizes our restricted share award activity for the fiscal years ended December 31, 2018 2017 2016
The unvested shares at December 31, 2018 242,862 2019 2022 432,575 December 31, 2018 123,744 no unrecognized compensation cost as vesting is , not probable85,326 no unrecognized compensation cost based on the performance goals having been achieved for the year ended , and December 31, 2018 223,505 December 31, 2019 2022 $2.3 millionThe fair value of restricted share awards that vested in 2018 2017 2016 $0.7 million$2.4 million$3.5 million December 31, 2018 $5.9 million242,862 223,505 2019 2022 28 not be issued until the relevant restrictions are satisfied.There were no outstanding stock options for the fiscal years ended December 31, 2018 2017 2016 |
Note 4 - Property and Equipment |
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Property, Plant and Equipment Disclosure [Text Block] |
A summary of property and equipment, at cost, as of December 31, 2018 2017
Depreciation expense was $74.4 million$72.4 million$71.4 million2018 2017 2016 $0.3 million$4.0 million$0.8 million2018 2017 2016 We lease certain revenue equipment under capital leases with terms of approximately 60 to 84 months. At December 31, 2018 2017 $55.4 million$30.5 million$15.6 million$5.4 million$5.4 million$2.6 million$1.6 million2018 2017 2016 |
Note 5 - Goodwill and Other Assets |
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Goodwill and Intangible Assets Disclosure [Text Block] |
Effective in March 2018 $0.8 million February 2019 A summary of other assets as of December 31, 2018 2017
A summary of other intangible assets as of December 31, 2018
Amortization expenses of intangible assets were $1.5 millionzero $0.2 million2018 2017 2016 five years is as follows:
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Note 6 - Debt |
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Debt Disclosure [Text Block] |
Current and long-term debt consisted of the following at December 31, 2018 2017
We and substantially all of our subsidiaries (collectively, the "Borrowers") are parties to the Credit Facility with Bank of America, N.A., as agent (the "Agent") and JPMorgan Chase Bank, N.A. ("JPM," and together with the Agent, the "Lenders"). The Credit Facility is a $95.0 million revolving credit facility, with an uncommitted accordion feature that, so long as no event of default exists, allows us to request an increase in the revolving credit facility of up to $50.0 million subject to Lender acceptance of the additional funding commitment. The Credit Facility includes, within our $95.0 million revolving credit facility, a letter of credit sub facility in an aggregate amount of $95.0 million and a swing line sub facility in an aggregate amount equal to the greater of $10.0 million or 10% of the Lenders' aggregate commitments under the Credit Facility from time-to-time. The Credit Facility matures in September 2021. Borrowings under the Credit Facility are classified as either "base rate loans" or "LIBOR loans." Base rate loans accrue interest at a base rate equal to the greater of the Agent’s prime rate, the federal funds rate plus 0.5%, or LIBOR plus 1.0%, plus an applicable margin ranging from 0.5% to 1.0%; while LIBOR loans accrue interest at LIBOR, plus an applicable margin ranging from 1.5% to 2.0%. The applicable rates are adjusted quarterly based on average pricing availability. The unused line fee is the product of 0.25% times the average daily amount by which the Lenders' aggregate revolving commitments under the Credit Facility exceed the outstanding principal amount of revolver loans and the aggregate undrawn amount of all outstanding letters of credit issued under the Credit Facility. The obligations under the Credit Facility are guaranteed by us and secured by a pledge of substantially all of our assets, with the notable exclusion of any real estate or revenue equipment pledged under other financing agreements, including revenue equipment installment notes and capital leases.Borrowings under the Credit Facility are subject to a borrowing base limited to the lesser of (A) $95.0 million, minus the sum of the stated amount of all outstanding letters of credit; or (B) the sum of (i) 85% of eligible accounts receivable, plus (ii) the lesser of (a) 85% of the appraised net orderly liquidation value of eligible revenue equipment, (b) 95% of the net book value of eligible revenue equipment, or (c) 35% of the Lenders' aggregate revolving commitments under the Credit Facility, plus (iii) the lesser of (a) $25.0 million or (b) 75% of the appraised fair market value of eligible real estate, as reduced by a periodic amortization amount. We had $3.9 million December 31, 2018 $36.3 million$54.8 million December 31, 2018 6.0% $3.9 millionno December 31, 2018 2017 no fixed charge coverage requirement.The Credit Facility includes usual and customary events of default for a facility of this nature and provides that, upon the occurrence and continuation of an event of default, payment of all amounts payable under the Credit Facility may be accelerated, and the Lenders' commitments may be terminated. If an event of default occurs under the Credit Facility and the Lenders cause all of the outstanding debt obligations under the Credit Facility to become due and payable, this could result in a default under other debt instruments that contain acceleration or cross-default provisions. The Credit Facility contains certain restrictions and covenants relating to, among other things, debt, dividends, liens, acquisitions and dispositions outside of the ordinary course of business, and affiliate transactions. Failure to comply with the covenants and restrictions set forth in the Credit Facility could result in an event of default.Capital lease obligations are utilized to finance a portion of our revenue equipment and are entered into with certain finance companies who are not parties to our Credit Facility. The leases in effect at December 31, 2018 January 2019 November 2024 Pricing for the revenue equipment installment notes is quoted by the respective financial affiliates of our primary revenue equipment suppliers and other lenders at the funding of each group of equipment acquired and include fixed annual rates for new equipment under retail installment contracts. The notes included in the funding are due in monthly installments with final maturities at various dates ranging from January 2019 July 2023 not have any financial or other material covenants or events of default except certain notes totaling $135.2 million2019 In August 2015, we financed a portion of the purchase of our corporate headquarters, a maintenance facility, and certain surrounding property in Chattanooga, Tennessee by entering into a $28.0 million variable rate note with a third party lender. Concurrently with entering into the note, we entered into an interest rate swap to effectively fix the related interest rate to 4.2%. As of December 31, 2018 7 are as follows:
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Note 7 - Leases |
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Leases of Lessee Disclosure [Text Block] |
We have operating lease commitments for office and terminal properties, revenue equipment, and computer and office equipment, and we have capital lease commitments for revenue equipment, in each case excluding owner/operator rentals and month-to-month equipment rentals, summarized for the following fiscal years (in thousands):
A portion of our operating leases of tractors and trailers contain residual value guarantees under which we guarantee a certain minimum cash value payment to the leasing company at the expiration of the lease. We estimate that the undiscounted value of the residual guarantees is approximately $1.0 million$4.0 million December 31, 2018 2017 December 31, 2018 January and February 2019 Rental expense is summarized as follows for each of the three years ended December 31:
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Note 8 - Income Taxes |
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Income Tax Disclosure [Text Block] |
Income tax expense (benefit) for the years ended December 31, 2018 2017 2016
Income tax expense for the years ended December 31, 2018 2017 2016
Income tax expense varies from the amount computed by applying the applicable federal corporate income tax rate for 2016 2017 35% 21% 2018 On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Act. The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, the following that impact us: (1 ) reducing the U.S. federal corporate income tax rate from 35 percent to 21 percent; (2 ) eliminating the corporate alternative minimum tax; (3 ) creating a new limitation on deductible interest expense; (4 ) 100% expensing of qualified fixed assets; (5 ) repeal of the like-kind exchange program property other than real property; (6 ) removal of the performance-based exception on executive compensation over $1 million; and (7 ) limiting certain other deductions.The SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118" ), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides for a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting relating to the Tax Act under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company's accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. If a company cannot determine a provisional estimate to be included in its financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act.As the result of our initial analysis of the impact of the Tax Act, we recorded a provisional amount of net tax benefit of $40.1 million2017 related to the remeasurement of our deferred tax balances and other effects. We completed our accounting for the income tax effects of the Tax Act in 2018, and no material adjustments were required to the provisional amounts initially recorded.The temporary differences and the approximate tax effects that give rise to our net deferred tax liability at December 31, 2018 2017
The net deferred tax liability of $77.5 millionnot paid. The carrying value of our deferred tax assets assumes that we will be able to generate, based on certain estimates and assumptions, sufficient future taxable income in certain tax jurisdictions to utilize these deferred tax benefits. If these estimates and related assumptions change in the future, we may be required to establish a valuation allowance against the carrying value of the deferred tax assets, which would result in additional income tax expense. On a periodic basis, we assess the need for adjustment of the valuation allowance. Based on forecasted taxable income resulting from the reversal of deferred tax liabilities, primarily generated by accelerated depreciation for tax purposes in prior periods, and tax planning strategies available to us, no valuation allowance has been established at December 31, 2018 2017 $0.1 million may be required to modify our valuation allowance against the carrying value of the deferred tax assets.As of December 31, 2018 $2.7 million$0.9 million December 31, 2017 $2.8 million$0.8 million$0.1 millionexpense in each of 2018 2016 $0.1 millionbenefit in 2017 The following tables summarize the annual activity related to our gross unrecognized tax benefits (in thousands) for the years ended December 31, 2018 2017 2016
If recognized, approximately $2.5 million December 31, 2018 2017 Our 2013 and 2015 through 2018 tax years remain subject to examination by the IRS for U.S. federal tax purposes, our major taxing jurisdiction. We have one tax position taken on our 2013 federal return that is under audit by the Internal Revenue Service. The position relates to a non-recurring tax credit of approximately $6.5 millionnot outcome of known tax contingencies. We adjust these reserves, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular issue would usually require the use of cash. Favorable resolution would be recognized as a reduction to our annual tax rate in the year of resolution. We do not expect any significant increases or decreases for uncertain income tax positions during the next year.Our federal tax credits of $12.0 million2038 $1.0 million that, under the Tax Act, will be fully refundable by tax year 2021. Our state net operating loss carryforwards and state tax credits of $75.7 million$0.7 million2038 |
Note 9 - Equity Method Investment |
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Equity Method Investment [Text Block] | 9. EQUITY METHOD INVESTMENTWe own a 49.0% interest in TEL, a tractor and trailer equipment leasing company and used equipment reseller. We have not guaranteed any of TEL's debt and have no obligation to provide funding, services, or assets. In May 2016, the operating agreement with TEL was amended to, among other things, remove the previously agreed to fixed date purchase options. Our option to acquire up to the remaining 51% of TEL would have expired May 31, 2016, and TEL’s majority owners would have received the option to purchase our ownership in TEL. There are no current put rights to purchase or sell with any owners. TEL’s majority owners are generally restricted from transferring their interests in TEL, other than to certain permitted transferees, without our consent. For the years ended December 31, 2018 2017 less than and $0.1 million$0.1 million$8.2 million$5.9 million$1.8 million2018 Additionally, we paid $0.9 million$0.5 million2018 2017 , respectively .$0.2 million December 31, 2018 2017 49% of the gains on units sold to TEL less any gains previously deferred and recognized when the equipment was sold to a third party. Deferred gains totaling $0.2 million$0.4 million December 31, 2018 2017 December 31, 2018 2017 $7.2 million$8.6 millionWe have accounted for our investment in TEL using the equity method of accounting and thus our financial results include our proportionate share of TEL's net income, which amounted to $7.7 million2018 $3.4 million2017 $3.0 million2016 $2.0 million2018 2017 $1.5 million2016 $26.1 million$20.1 million December 31, 2018 2017 $4.9 million cash investment noted above and our equity in TEL's earnings since our investment, partially offset by dividends received since our investment for minimum tax withholdings as noted above and the abovementioned deferred gains on sales of equipment to TEL.See TEL's summarized financial information below.
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Note 10 - Deferred Profit Sharing Employee Benefit Plan |
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Compensation Related Costs, General [Text Block] |
We have a deferred profit sharing and savings plan under which all of our employees with at least six months of service are eligible to participate. Employees may contribute a percentage of their annual compensation up to the maximum amount allowed by the Internal Revenue Code. We may make discretionary contributions as determined by a committee of our Board of Directors. We made contributions of $1.7 million2018 $0.9 million2017 $0.7 million2016 |
Note 11 - Related Party Transactions |
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Related Party Transactions Disclosure [Text Block] |
Other than those associated with TEL, there are no material related party transactions. See Note 9 for discussions of the related party transactions associated with TEL. |
Note 12 - Other Comprehensive Income ("OCI") |
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Comprehensive Income (Loss) Note [Text Block] |
OCI is comprised of net income and other adjustments, including changes in the fair value of certain derivative financial instruments qualifying as cash flow hedges. The following tables summarize the change in the components of our OCI balance for the periods presented (in thousands; presented net of tax):
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Note 13 - Commitments and Contingencies Liabilities |
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Commitments and Contingencies Disclosure [Text Block] |
From time-to-time, we are a party to ordinary, routine litigation arising in the ordinary course of business, most of which involves claims for personal injury and/or property damage incurred in connection with the transportation of freight. We maintain insurance to cover liabilities arising from the transportation of freight for amounts in excess of certain self-insured retentions. In management's opinion, our potential exposure under pending legal proceedings is adequately provided for in the accompanying consolidated financial statements. Our Covenant Transport subsidiary is a defendant in a lawsuit filed on November 9, 2018 in the Superior Court of Los Angeles, California. The lawsuit was filed on behalf of Richard Tabizon (a California resident and former driver), who is seeking to have the lawsuit certified as a class action case wherein he alleges violation of multiple California wage and hour statutes from October 31, 2014 to present, including failure to pay drivers separately for rest breaks, failure to provide itemized wage statements, failure to pay minimum wage (for on-duty not driving time), waiting time penalties, and failure to reimburse for business expenses. Tabizon is also seeking Private Attorney General Act (“PAGA”) penalties based on these claims from September 11, 2017 through the present. The case was removed from state court on December 6, 2018 to the U.S. Federal District Court in the Central District of California. Based on our present knowledge of the facts and, in certain cases, advice of outside counsel, management believes the resolution of open claims and pending litigation, taking into account existing reserves, is not likely to have a materially adverse effect on our consolidated financial statements. We had $36.3 million$32.9 million of outstanding and undrawn letters of credit as of December 31, 2018 2017 We had commitments outstanding at December 31, 2018 $156.3 million2019 December 31, 2017 $51.7 million. These commitments are cancelable upon stated notice periods, subject to certain adjustments in the underlying obligations and benefits. These purchase commitments are expected to be financed by operating leases, capital leases, long-term debt, proceeds from sales of existing equipment, and/or cash flows from operations. |
Note 14 - Available-for-sale Securities |
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Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] |
We have purchased certain investments to meet dual objectives of capital preservation and maintenance of sufficient resources to fund insurance losses. As such, the investments are not held for the purpose of trading. Furthermore, due to the uncertain nature of insurance losses, the investments are not held-to-maturity, and are thus classified as available-for-sale securities. Unrealized holding gains and losses on these investments are excluded from earnings and reported in other comprehensive income until realized. Unrealized holding losses below, which are comprised of 10 not considered other-than-temporary, as both the duration and amount of unrealized losses have been insignificant.
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Note 15 - Acquisition of Landair Holdings, Inc. |
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Business Combination Disclosure [Text Block] |
On July 3, 2018, we acquired 100% of the outstanding stock of Landair Holdings, Inc., a Tennessee corporation (“Landair”). The total cash paid was $106.7 million, including (i) $83.0 million in cash to Landair's former owners, (ii) $3.2 million reimbursement to Landair's former owners and $5.0 million in state taxes paid by Landair after the acquisition related to our Internal Revenue Code Section 338 (h)(10 ) election, which is still subject to finalization, and (iii) approximately $15.5 million for the debt of Landair, which we have paid in full, but not considering approximately $0.8 million of cash balances acquired. The Stock Purchase Agreement contains customary representations, warranties, covenants, and indemnification provisions.Landair is a leading dedicated and for-hire truckload carrier, as well as a supplier of transportation management, warehousing and logistics inventory management services. Landair’s results have been included in the consolidated financial statements since the date of acquisition. Landair’s trucking operations’ results are reported within our Truckload segment, while Landair’s logistics operations’ results are reported within our Managed Freight segment. The allocation of the preliminary purchase price detailed below as of the fiscal year ended December 31, 2018
Deferred income taxes arising from the acquisition are immaterial because of our 338 (h)(10 ) election.The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date.
The goodwill recognized is attributable primarily to expected cost synergies in the areas of insurance and claims, workers' compensation, fuel, and purchases of revenue equipment. Additionally, Landair and the historical Company have limited customer overlap, and as such we expect to be able to cross-sell services between historical customers and those of Landair. The amounts of revenue and earnings of Landair included in the Company’s consolidated results of operations from the acquisition date to the period ended December 31, 2018
The following unaudited pro forma consolidated results of operations for the years ended December 31, 2018 and 2017 assume that the acquisition of Landair occurred as of January 1, 2017:
For the year ended December 31, 2018, the pro forma results include an immaterial amount of adjustments to conform Landair to the accounting policies of the Company related to operations and maintenance and insurance and claims. In addition, salaries, wages, and related expenses decreased by a net of $2.1 million related to sale bonuses and non-recurring compensation paid to a prior owner of Landair, partially offset by restricted shares granted to key retained employees. General supplies and expenses decreased by $3.4 million related to non-recurring acquisition-related expenses. Depreciation and amortization increased by $1.1 million due to the amortization of intangible assets as detailed in Note 5, partially offset by a net decrease resulting from the depreciation of property, plant, and equipment using useful lives consistent with those utilized by the Company. Interest expense, net increased by approximately $2.0 million as a result of the financing obtained by the Company to fund the Landair Acquisition. Income tax expense was adjusted by approximately $1.7 million for the effect of each of the aforementioned adjustments. Results for the year ended December 31, 2018 exclude two days of Landair’s operations that occurred between the period ended June 30, 2018 and our acquisition on July 3, 2018, but this effect is immaterial.For the year ended December 31, 2017, the pro forma results include an immaterial amount of adjustments to conform Landair to the accounting policies of the Company related to operations and maintenance and insurance and claims. Depreciation and amortization increased by approximately $2.2 million due to the amortization of intangible assets as detailed in Note 5, partially offset by a net decrease resulting from the depreciation of property, plant, and equipment using useful lives consistent with those utilized by the Company. Interest expense, net increased $4.0 million as a result of the financing obtained by the Company to fund the Landair Acquisition. Income tax expense was adjusted by an immaterial amount for the effect of each of the aforementioned adjustments.The pro forma adjustments have been made solely for informational purposes. The actual results reported by the consolidated company in periods following the acquisition may differ significantly from that reflected in the unaudited pro forma consolidated results of operations for a number of reasons, including but not limited to cost savings from operating efficiencies, synergies and the impact of the incremental costs incurred in integrating the two companies. As a result, the unaudited pro forma consolidated results of operations are not intended to represent and does not purport to be indicative of what the combined company’s results of operations would have been had the acquisition been completed on the applicable dates of this unaudited pro forma consolidated results of operations. In addition, the unaudited pro forma consolidated results of operations do not purport to project the future results of operations of the consolidated company. |
Note 16 - Segment Information |
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Segment Reporting Disclosure [Text Block] |
As previously discussed, we have two reportable segments, our truckload services or Truckload and Managed Freight, which offer freight brokerage, transportation management services, and shuttle and switching services. Included within Managed Freight are our accounts receivable factoring and warehousing businesses, which do not meet the aggregation criteria, but only accounted for $5.0 million$23.6 million December 31, 2018 December 31, 2018 $3.9 million$0.9 millionThe accounting policies of the segments are the same as those described in the summary of significant accounting policies. Substantially all intersegment sales prices are market based. We evaluate performance based on operating income of the respective business units. The following tables summarize our segment information:
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Note 17 - Quarterly Results of Operations (Unaudited) |
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Quarterly Financial Information [Text Block] |
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Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of Covenant Transportation Group, Inc., a holding company incorporated in the state of Nevada in 1994, and its wholly owned subsidiaries: Covenant Transport, Inc., a Tennessee corporation; Southern Refrigerated Transport, Inc., an Arkansas corporation; Star Transportation, Inc., a Tennessee corporation, each d/b/a Covenant Transport Services; Covenant Transport Solutions, Inc., a Nevada corporation, d/b/a Transport Financial Services; Covenant Logistics, Inc., a Nevada corporation; Covenant Asset Management, LLC., a Nevada limited liability corporation; CTG Leasing Company, a Nevada corporation; IQS Insurance Risk Retention Group, Inc., a Vermont corporation; Driven Analytic Solutions, LLC, a Nevada limited liability company; Heritage Insurance, Inc., a Tennessee corporation; Landair Holdings, Inc., a Tennessee corporation; Landair Transport, Inc., a Tennessee corporation; Landair Logistics, Inc., a Tennessee corporation; Landair Leasing, Inc., a Tennessee corporation; and Transport Management Services, LLC, a Tennessee limited liability company.References in this report to "it," "we," "us," "our," the "Company," and similar expressions refer to Covenant Transportation Group, Inc. and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
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Equity Method Investments [Policy Text Block] | Investment in Transport Enterprise Leasing, LLC Transport Enterprise Leasing, LLC ("TEL") is a tractor and trailer equipment leasing company and used equipment reseller. We evaluated our investment in TEL to determine whether it should be recorded on a consolidated basis. Our percentage of ownership interest ( 49% ), an evaluation of control, and whether a variable interest entity ("VIE") existed were all considered in our consolidation assessment. The analysis provided that we do not control TEL and that TEL is not deemed a VIE. We have accounted for our investment in TEL using the equity method of accounting given our 49% ownership interest and ability to exercise significant influence over operating and financial policies. Under the equity method, the cost of our investment is adjusted for our share of equity in the earnings of TEL and reduced by distributions received and our proportionate share of TEL's net income is included in our earnings.On a periodic basis, we assess whether there are any indicators that the fair value of our investment in TEL may be impaired. The investment is impaired only if the estimate of the fair value of the investment is less than the carrying value of the investment, and such decline in value is deemed to be other than temporary. To the extent impairment has occurred, the loss would be measured as the excess of the carrying amount of the investment over the fair value of the investment. As a result of TEL's earnings, no impairment indicators were noted that would provide for impairment of our investment. |
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Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Revenue, drivers' wages, and other direct operating expenses generated by our Truckload reportable segment are recognized proportionally as the transportation service is performed based on the percentage of miles completed as of the period end, as opposed to recognizing revenue upon the completion of the load, which was our historic practice. Revenue is recognized on a gross basis at amounts charged to our customers because we control and are primarily responsible for the fulfillment of the promised service. Revenue includes transportation revenue, fuel surcharges, loading and unloading activities, equipment detention, and other accessorial services. Revenue generated by our Managed Freight segment is recognized upon completion of the services provided. Revenue is recorded on a gross basis, without deducting third party purchased transportation costs, as we act as a principal with substantial risks as primary obligor, except for transactions whereby equipment from our Truckload segment perform the related services, which we record on a net basis in accordance with the related authoritative guidance. Managed Freight revenue includes $5.0 million$3.1 million$2.6 million2018 2017 2016 2013 to supplement several aspects of our non-asset operations, as well as $23.6 million2018 for a warehousing business, which is part of the Landair operation and thus was not part of 2017 or 2016 revenues. Included in Truckload and Managed Freight revenue during the year ended December 31, 2018 $3.9 million$0.9 millionnot the primary generator of the factored receivables in these transactions. Revenue for the warehousing business is generally recognized as the service is performed, based upon a weekly rate. |
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Use of Estimates, Policy [Policy Text Block] | Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make decisions based upon estimates, assumptions, and factors we consider as relevant to the circumstances. Such decisions include the selection of applicable accounting principles and the use of judgment in their application, the results of which impact reported amounts and disclosures. Changes in future economic conditions or other business circumstances may affect the outcomes of our estimates and assumptions. Accordingly, actual results could differ from those anticipated. |
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Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents We consider all highly liquid investments with a maturity of three months or less at acquisition to be cash equivalents. Additionally, we are also subject to concentrations of credit risk related to deposits in banks in excess of the Federal Deposit Insurance Corporation limits. |
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Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Accounts Receivable and Concentration of Credit Risk We extend credit to our customers in the normal course of business. We perform ongoing credit evaluations and generally do not require collateral. Trade accounts receivable are recorded at their invoiced amounts, net of allowance for doubtful accounts. We evaluate the adequacy of our allowance for doubtful accounts quarterly. Accounts outstanding longer than contractual payment terms are considered past due and are reviewed individually for collectability. We maintain reserves for potential credit losses based upon its loss history and specific receivables aging analysis. Receivable balances are written off when collection is deemed unlikely.Accounts receivable are comprised of a diversified customer base that results in a lack of concentration of credit risk. During 2018 2017 2016 ten customers generated 49% 49% 53% 2018 2016 one customer accounted for more than 10% of our consolidated revenue in each year. In 2017 two such customers. The carrying amount reported in the consolidated balance sheet for accounts receivable approximates fair value based on the fact that the receivables collection averaged approximately 32 33 2018 2017 Included in accounts receivable is $53.6 million and $31.9 million December 31, 2018 2017 $0.4 million$0.2 million85% to 95% of each receivable factored and retain the remainder as collateral for collection issues that might arise. The retained amounts are returned to the clients after the related receivable has been collected, net of interest and fees on the amount we advanced. At December 31, 2018 $1.9 million30–40 days due to the combination of the short-term nature of the financing transaction and the underlying quality of the receivables.The following table provides a summary (in thousands) of the activity in the accounts for 2018 2017 2016
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Inventory, Policy [Policy Text Block] | Inventories and Supplies Inventories and supplies consist of parts, tires, fuel, and supplies. Tires on new revenue equipment are capitalized as a component of the related equipment cost when the tractor or trailer is placed in service and recovered through depreciation over the life of the vehicle. Replacement tires and parts on hand at year end are recorded at the lower of cost or market with cost determined using the first -in, first -out (FIFO) method. Replacement tires are expensed when placed in service. |
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Assets Held for Sale Policy [Policy Text Block] | Assets Held for Sale Assets held for sale include property and revenue equipment no longer utilized in continuing operations which are available and held for sale. Assets held for sale are no longer subject to depreciation, and are recorded at the lower of depreciated book value or fair market value less selling costs. We periodically review the carrying value of these assets for possible impairment. We expect to sell these assets within twelve months. |
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Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment is stated at cost less accumulated depreciation. Depreciation for book purposes is determined using the straight-line method over the estimated useful lives of the assets, while depreciation for tax purposes is generally recorded using an accelerated method. Depreciation of revenue equipment is our largest item of depreciation. We generally depreciate new tractors (excluding day cabs) over We annually review the reasonableness of our estimates regarding useful lives and salvage values of our revenue equipment and other long-lived assets based upon, among other things, our experience with similar assets, conditions in the used revenue equipment market, and prevailing industry practice. Changes in the useful life or salvage value estimates, or fluctuations in market values that are five years to salvage values of approximately 15% of their cost. We generally depreciate new trailers over seven years for refrigerated trailers and ten years for dry van trailers to salvage values of approximately 25% of their cost.not reflected in our estimates, could have a material effect on our results of operations. Gains and losses on the disposal of revenue equipment are included in depreciation expense in the consolidated statements of operations.We lease certain revenue equipment under capital leases with terms of approximately 60 84 months. Amortization of leased assets is included in depreciation and amortization expense.Although a portion of our tractors are protected by non-binding indicative trade-in values or binding trade-back agreements with the manufacturers, substantially all of our owned trailers are subject to fluctuations in market prices for used revenue equipment. Moreover, our trade-back agreements are contingent upon reaching acceptable terms for the purchase of new equipment. Declines in the price of used revenue equipment or failure to reach agreement for the purchase of new tractors with the manufacturers issuing trade-back agreements could result in impairment of, or losses on the sale of, revenue equipment. |
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Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets Pursuant to applicable accounting standards, revenue equipment and other long-lived assets are tested for impairment whenever an event occurs that indicates an impairment may exist. Expected future cash flows are used to analyze whether an impairment has occurred. If the sum of expected undiscounted cash flows is less than the carrying value of the long-lived asset, then an impairment loss is recognized. We measure the impairment loss by comparing the fair value of the asset to its carrying value. Fair value is determined based on a discounted cash flow analysis or the appraised value of the assets, as appropriate. |
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Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets We classify intangible assets into two categories: (i) intangible assets with definite lives subject to amortization and (ii) goodwill. As a result of the Landair Acquisition, we have goodwill of $41.6 million December 31, 2018 none December 31, 2017 may have occurred. We test intangible assets with definite lives for impairment if conditions exist that indicate the carrying value may not be recoverable. Such conditions may include an economic downturn in a geographic market or a change in the assessment of future operations. We record an impairment charge when the carrying value of the definite lived intangible asset is not recoverable by the cash flows generated from the use of the asset.We determine the useful lives of our identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any agreement, the history of the asset, our long-term strategy for the use of the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized, generally on a straight-line basis, over their useful lives, ranging from 5 to 15 years$32.5 million December 31, 2018 none December 31, 2017 |
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Insurance And Other Claims [Policy Text Block] | Insurance and Other Claims The primary claims arising against us consist of auto liability (personal injury and property damage), workers' compensation, cargo, commercial liability, and employee medical expenses. Our insurance program involves self-insurance with the following risk retention levels (before giving effect to any commutation of an auto liability policy):
Due to our significant self-insured retention amounts, we have exposure to fluctuations in the number and severity of claims and to variations between our estimated and actual ultimate payouts. We accrue the estimated cost of the uninsured portion of pending claims and an estimate for allocated loss adjustment expenses including legal and other direct costs associated with a claim. Estimates require judgments concerning the nature and severity of the claim, historical trends, advice from third -party administrators and insurers, the size of any potential damage award based on factors such as the specific facts of individual cases, the jurisdictions involved, the prospect of punitive damages, future medical costs, and inflation estimates of future claims development, and the legal and other costs to settle or defend the claims. We have significant exposure to fluctuations in the number and severity of claims. If there is an increase in the frequency and severity of claims, or we are required to accrue or pay additional amounts if the claims prove to be more severe than originally assessed, or any of the claims would exceed the limits of our insurance coverage, our profitability could be adversely affected.In addition to estimates within our self-insured retention layers, we also must make judgments concerning claims where we have third party insurance and for claims outside our coverage limits. Upon settling claims and expenses associated with claims where we have third party coverage, we are generally required to initially fund payment to the claimant and seek reimbursement from the insurer. Receivables from insurers for claims and expenses we have paid on behalf of insurers were $3.0 million$1.1 million December 31, 2018 2017 $5.1 million$2.1 million December 31, 2018 2017 may exceed such limits and, if so, by how much. If one or more claims were to exceed our then effective coverage limits, our financial condition and results of operations could be materially and adversely affected.We also make judgments regarding the ultimate benefit versus risk of commuting certain periods within our auto liability policy. If we commute a policy, we assume 100% risk for covered claims in exchange for a policy refund.Effective April 2018, we entered into new auto liability policies with a three -year term. The policy includes a limit for a single loss of $9.0 million, an aggregate of $18.0 million for each policy year, and a $30.0 million aggregate for the 36 month term ended March 31, 2021. The policy included a policy release premium refund or commutation option of up to $14.0 million, less any future amounts paid on claims by the insurer. A decision with respect to commutation of the policy could be made before April 1, 2021. Additionally, our prior auto liability policy that ran from October 1, 2014 through March 31, 2018, included a commutation provision if we were to commute the policy for the entire 42 months. Based on claims paid to date the policy premium release refund could range from zero to $4.9 million, depending on actual claims settlements in the future. Management cannot predict whether or not future claims or the development of existing claims will justify a commutation of either policy period, and accordingly, no related amounts were recorded at December 31, 2018 |
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Interest Capitalization, Policy [Policy Text Block] | Interest We capitalize interest on major projects during construction. Interest is capitalized based on the average interest rate on related debt. Capitalized interest was less than in $0.1 million2018 2017 2016 |
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Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments Our financial instruments consist primarily of cash and cash equivalents, accounts receiva ble, available-for-sale securities, ac counts payable, debt, and interest rate swaps. The carrying amount of cash and cash equivalents, accounts receivable, accounts payable, and current debt approximates their fair value because of the short-term maturity of these instruments. The carrying value of the factored receivables approximates the fair value, as the receivables are generally repaid directly to us by the client's customer within 30–40 days due to the combination of the short-term nature of the financing transaction and the underlying quality of the receivables. Interest rates that are currently available to us for issuance of long-term debt with similar terms and remaining maturities are used to estimate the fair value of our long-term debt, which primarily consists of revenue equipment installment notes. The fair value of our revenue equipment installment notes approximated the carrying value at December 31, 2018 Additionally, certain investments intended to serve the purposes of capital preservation and to fund insurance losses are designated as available-for-sale as discussed in Note The fair value of our interest rate swap agreements is determined using the market-standard methodology of netting the discounted future fixed-cash payments and the discounted expected variable-cash receipts. The variable-cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. These analyses reflect the contractual terms of the swap, including the period to maturity, and use observable market-based inputs, including interest rate curves and implied volatilities. The fair value calculation also includes an amount for risk of non-performance of our counterparties using "significant unobservable inputs" such as estimates of current credit spreads to evaluate the likelihood of default, which we have determined to be insignificant to the overall fair value of our interest rate swap agreements.14 and are valued based on quoted prices in active markets. |
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Income Tax, Policy [Policy Text Block] | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We have reflected the net liability after offsetting our deferred tax assets and liabilities in the deferred income taxes line in the accompanying consolidated balance sheets in accordance with our retrospective adoption of Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2015 -17, Income Taxes: Balance Sheet Classification of Deferred Taxes , as of December 31, 2015, as discussed below. We believe the future tax deductions will be realized principally through future reversals of existing taxable temporary differences and future taxable income, except for when a valuation allowance has been provided as discussed in Note 8. In the ordinary course of business there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management's evaluation of the facts, circumstances, and information available at the reporting dates. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Potential accrued interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense.Our policy is to recognize income tax benefit arising from the exercise of stock options and restricted share vesting based on the ordering provisions of the tax law as prescribed by the Internal Revenue Code, including indirect tax effects, if any. |
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Lessee, Leases [Policy Text Block] | Lease Accounting and Off-Balance Sheet Transactions We issue residual value guarantees in connection with the operating leases we enter into for certain of our revenue equipment. These leases provide that if we do not purchase the leased equipment from the lessor at the end of the lease term, then we are liable to the lessor for an amount equal to the shortage (if any) between the proceeds from the sale of the equipment and an agreed value. To the extent the expected value at the lease termination date is lower than the residual value guarantee, we would accrue for the difference over the remaining lease term. We believe that proceeds from the sale of equipment under operating leases would equal or exceed the payment obligation on substantially all operating leases. The estimated values at lease termination involve management judgments. As leases are entered into, determination as to the classification as an operating or capital lease involves management judgments on residual values and useful lives. |
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Stockholders' Equity, Policy [Policy Text Block] | Capital Structure The shares of Class A and B common stock are substantially identical except that the Class B shares are entitled to two votes per share and immediately convert to Class A shares if beneficially owned by anyone other than our Chief Executive Officer or certain members of his immediate family, while Class A shares are entitled to one vote per share. The terms of any future issuances of preferred shares will be set by our Board of Directors. |
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Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income Comprehensive income generally includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income for 2018 2017 2016 |
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Earnings Per Share, Policy [Policy Text Block] | Income Per Share Basic income per share excludes dilution and is computed by dividing earnings available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted income per share reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in our earnings. The calculation of diluted earnings per share includes approximately 0.1 million December 31, 2018 2017 2016 The following table sets forth the calculation of net income per share included in the consolidated statements of operations for each of the three years ended December 31:
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Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Employee Compensation We issue several types of stock-based compensation, including awards that vest based on service and performance conditions or a combination of the conditions. Performance-based awards vest contingent upon meeting certain performance criteria established by the Compensation Committee of the Board of Directors. All awards require future service. For performance-based awards, determining the appropriate amount to expense in each period is based on likelihood and timing of achieving the stated targets for performance-based awards and requires judgment, including forecasting future financial results. The estimates are revised periodically based on the probability and timing of achieving the required performance and adjustments are made as appropriate. Awards that are only subject to time vesting provisions are amortized using the straight-line method. |
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New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Accounting Standards adopted In May 2014 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2014 -09, which supersedes virtually all existing revenue guidance. The new standard introduces a five -step model to determine when and how revenue is recognized. The premise of the new model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires enhanced disclosures regarding the nature, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The new standard became effective for us for our annual and interim reporting periods beginning January 1, 2018. The guidance permits the use of either a full retrospective or modified retrospective adoption approach with a cumulative effect adjustment recorded in either scenario as necessary upon transition.As permitted by the guidance, we elected the modified retrospective approach and thus recognized the cumulative effect of adoption of $0.6 million, net of tax, as a positive adjustment to retained earnings in the first quarter of 2018 as a result of the initial recording of in process revenue and associated direct expenses. Based on our review of our customer shipping arrangements and the related guidance, we have concluded that we will recognize revenue from loads proportionally as the transportation service is performed based on the percentage of miles completed as of the period end, as opposed to recognizing revenue upon the completion of the load, which was our historic practice. Revenue will be recognized on a gross basis at amounts charged to our customers because we control and are primarily responsible for the fulfillment of the promised service. Our recognition of revenue under the new standard approximates our recognition of revenue under the prior standard, as there will generally be a consistent amount of freight in process at the beginning and end of the period; however, seasonality and the day on which the period ends may cause minor differences.The following table summarizes the impacts of adopting ASU 606 on the Company’s consolidated financial statements for the year ended December 31, 2018.
Accounting Standards not yet adoptedIn February 2016, FASB issued ASU 2016 -02, which requires lessees to recognize a right-to-use asset and a lease obligation for all leases. Lessees are permitted to make an accounting policy election to not recognize an asset and liability for leases with a term of twelve months or less. Lessor accounting under the new standard is substantially unchanged. Additional qualitative and quantitative disclosures, including significant judgments made by management, will be required. This new standard will become effective for us in our annual reporting period beginning January 1, 2019, including interim periods within that reporting period and requires a modified retrospective transition approach. We believe the adoption will not have a material impact to net income and will add approximately $43.0 millionfirst quarter of 2019, including an assessment of the new expanded disclosure requirements and a final determination of the impact to adoption and related changes required to internal controls. |
Note 1 - Summary of Significant Accounting Policies (Tables) |
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Disaggregation of Revenue [Table Text Block] |
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Summary of Valuation Allowance [Table Text Block] |
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Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] |
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Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] |
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Note 3 - Stock-based Compensation (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] |
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Note 4 - Property and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] |
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Note 5 - Goodwill and Other Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets [Table Text Block] |
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Schedule of Finite-Lived Intangible Assets [Table Text Block] |
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] |
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Note 6 - Debt (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt [Table Text Block] |
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Schedule of Maturities of Long-term Debt [Table Text Block] |
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Note 7 - Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Scheduleof Future Minimum Lease Paymentsfor Operatingand Capital Leases [Table Text Block] |
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Schedule of Rent Expense [Table Text Block] |
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Note 8 - Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] |
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Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] |
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Schedule of Deferred Tax Assets and Liabilities [Table Text Block] |
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Summary of Income Tax Contingencies [Table Text Block] |
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Note 9 - Equity Method Investment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments [Table Text Block] |
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Income Statement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments [Table Text Block] |
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Note 12 - Other Comprehensive Income ("OCI") (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] |
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Note 14 - Available-for-sale Securities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities, Available-for-sale [Table Text Block] |
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Note 15 - Acquisition of Landair Holdings, Inc. (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Notes Tables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] |
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] |
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Business Acquisition, Pro Forma Information [Table Text Block] |
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Note 16 - Segment Information (Tables) |
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Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] |
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Note 17 - Quarterly Results of Operations (Unaudited) (Tables) |
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information [Table Text Block] |
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Note 1 - Summary of Significant Accounting Policies - Segment By Operating Fleet Revenue (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Total revenue | $ 885,455 | $ 705,007 | $ 670,651 |
Truckload [Member] | |||
Total revenue | 727,046 | 612,834 | 601,226 |
Truckload [Member] | Expedited [Member] | |||
Total revenue | 334,118 | 332,930 | 370,689 |
Truckload [Member] | Dedicated [Member] | |||
Total revenue | 247,877 | 144,845 | 60,154 |
Truckload [Member] | Refrigerated [Member] | |||
Total revenue | 135,189 | 135,059 | 170,383 |
Truckload [Member] | Over the Road [Member] | |||
Total revenue | 9,862 | ||
Managed Freight [Member] | |||
Total revenue | 158,409 | 92,173 | 69,425 |
Managed Freight [Member] | Brokerage [Member] | |||
Total revenue | 114,827 | 89,042 | 66,867 |
Managed Freight [Member] | Warehouse [Member] | |||
Total revenue | 16,480 | ||
Managed Freight [Member] | Transportation Management Services [Member] | |||
Total revenue | 14,940 | ||
Managed Freight [Member] | Shuttle and Switching [Member] | |||
Total revenue | 7,100 | ||
Managed Freight [Member] | Factoring [Member] | |||
Total revenue | $ 5,062 | $ 3,131 | $ 2,558 |
Note 1 - Summary of Significant Accounting Policies - Summary of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Beginning balance | $ 1,456 | $ 1,345 | $ 1,857 |
Provision (reversal) for losses on accounts receivable | 507 | 454 | (241) |
Write-offs and other deductions and other adjustments | 22 | (343) | (271) |
Ending balance | $ 1,985 | $ 1,456 | $ 1,345 |
Note 1 - Summary of Significant Accounting Policies - Calculation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
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Dec. 31, 2018 |
[1] | Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
[1] | Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Numerator: | |||||||||||||||
Net income | $ 16,501 | $ 11,614 | $ 9,971 | $ 4,417 | $ 49,298 | $ 4,632 | $ 1,548 | $ (39) | $ 42,503 | $ 55,439 | $ 16,835 | ||||
Denominator: | |||||||||||||||
Denominator for basic income per share – weighted-average shares (in shares) | 18,340 | 18,279 | 18,182 | ||||||||||||
Effect of dilutive securities: | |||||||||||||||
Equivalent shares issuable upon conversion of unvested restricted shares (in shares) | 129 | 93 | 84 | ||||||||||||
Denominator for diluted income per share adjusted weighted-average shares and assumed conversions (in shares) | 18,469 | 18,372 | 18,266 | ||||||||||||
Income per share: | |||||||||||||||
Basic income per share (in dollars per share) | $ 0.91 | $ 0.63 | $ 0.54 | $ 0.24 | $ 2.70 | $ 0.25 | $ 0.08 | $ 0 | $ 2.32 | $ 3.03 | $ 0.93 | ||||
Diluted income per share (in dollars per share) | $ 0.89 | $ 0.63 | $ 0.54 | $ 0.24 | $ 2.69 | $ 0.25 | $ 0.08 | $ 0 | $ 2.30 | $ 3.02 | $ 0.92 | ||||
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Note 1 - Summary of Significant Accounting Policies - Impacts of Adopting ASU 2014-09 (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
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Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Accounts Receivable, Net, Current, Total | $ 151,093 | $ 104,153 | $ 151,093 | $ 104,153 | |||||||||||
Total assets | 773,524 | 649,668 | 773,524 | 649,668 | |||||||||||
Accrued expenses | 49,503 | 26,520 | 49,503 | 26,520 | |||||||||||
Deferred income taxes | 77,467 | 63,344 | 77,467 | 63,344 | |||||||||||
Total liabilities | 430,382 | 354,467 | 430,382 | 354,467 | |||||||||||
Retained earnings | 200,566 | 157,471 | 200,566 | 157,471 | |||||||||||
Total stockholders’ equity | 343,142 | 295,201 | 343,142 | 295,201 | |||||||||||
Total liabilities and stockholders’ equity | 773,524 | 649,668 | 773,524 | 649,668 | |||||||||||
Total revenue | 885,455 | 705,007 | $ 670,651 | ||||||||||||
Labor and Related Expense | 304,447 | 241,784 | 234,526 | ||||||||||||
Revenue equipment rentals and purchased transportation | 183,645 | 141,954 | 117,472 | ||||||||||||
Operating Expenses, Total | 826,469 | 676,852 | 638,204 | ||||||||||||
Income Tax Expense (Benefit), Total | 15,507 | (32,142) | 10,386 | ||||||||||||
Net income | 16,501 | [1] | $ 11,614 | $ 9,971 | $ 4,417 | $ 49,298 | [1] | $ 4,632 | $ 1,548 | $ (39) | 42,503 | 55,439 | 16,835 | ||
Comprehensive income | 42,414 | 58,372 | 31,739 | ||||||||||||
Deferred income tax expense (benefit) | 13,840 | (23,023) | (922) | ||||||||||||
Receivables and advances | (27,199) | (23,670) | 21,207 | ||||||||||||
Accounts payable and accrued expenses | 19,232 | (3,425) | (5,116) | ||||||||||||
Net cash flows provided by operating activities | 124,800 | 82,853 | 102,430 | ||||||||||||
Cargo and Freight [Member] | |||||||||||||||
Total revenue | 779,729 | $ 626,809 | $ 610,845 | ||||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||||||
Accounts Receivable, Net, Current, Total | 149,849 | 149,849 | |||||||||||||
Total assets | 772,280 | 772,280 | |||||||||||||
Accrued expenses | 49,226 | 49,226 | |||||||||||||
Deferred income taxes | 77,201 | 77,201 | |||||||||||||
Total liabilities | 429,839 | 429,839 | |||||||||||||
Retained earnings | 199,865 | 199,865 | |||||||||||||
Total stockholders’ equity | 342,441 | 342,441 | |||||||||||||
Total liabilities and stockholders’ equity | 772,280 | 772,280 | |||||||||||||
Total revenue | 885,221 | ||||||||||||||
Labor and Related Expense | 304,460 | ||||||||||||||
Revenue equipment rentals and purchased transportation | 183,550 | ||||||||||||||
Operating Expenses, Total | 826,387 | ||||||||||||||
Income Tax Expense (Benefit), Total | 15,466 | ||||||||||||||
Net income | 42,392 | ||||||||||||||
Comprehensive income | 42,303 | ||||||||||||||
Deferred income tax expense (benefit) | 13,799 | ||||||||||||||
Receivables and advances | (26,965) | ||||||||||||||
Accounts payable and accrued expenses | 19,150 | ||||||||||||||
Net cash flows provided by operating activities | 124,800 | ||||||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Cargo and Freight [Member] | |||||||||||||||
Total revenue | 779,495 | ||||||||||||||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||||||||||||
Accounts Receivable, Net, Current, Total | (1,244) | (1,244) | |||||||||||||
Total assets | (1,244) | (1,244) | |||||||||||||
Accrued expenses | (277) | (277) | |||||||||||||
Deferred income taxes | (266) | (266) | |||||||||||||
Total liabilities | (543) | (543) | |||||||||||||
Retained earnings | (701) | (701) | |||||||||||||
Total stockholders’ equity | (701) | (701) | |||||||||||||
Total liabilities and stockholders’ equity | $ (1,244) | (1,244) | |||||||||||||
Total revenue | (234) | ||||||||||||||
Labor and Related Expense | 13 | ||||||||||||||
Revenue equipment rentals and purchased transportation | (95) | ||||||||||||||
Operating Expenses, Total | (82) | ||||||||||||||
Income Tax Expense (Benefit), Total | (41) | ||||||||||||||
Net income | (111) | ||||||||||||||
Comprehensive income | (111) | ||||||||||||||
Deferred income tax expense (benefit) | (41) | ||||||||||||||
Receivables and advances | 234 | ||||||||||||||
Accounts payable and accrued expenses | (82) | ||||||||||||||
Net cash flows provided by operating activities | |||||||||||||||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Cargo and Freight [Member] | |||||||||||||||
Total revenue | $ (234) | ||||||||||||||
|
Note 2 - Liquidity (Details Textual) - USD ($) $ in Millions |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Working Capital (Deficit) | $ 84.3 | $ 81.1 |
Long-term Line of Credit, Total | 3.9 | |
Letters of Credit Outstanding, Amount | 36.3 | $ 32.9 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 54.8 |
Note 3 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Feb. 21, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,550,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 50,960 | ||||
Maximum Number of Shares of Class A Common Stock Awarded to any Participant in the Incentive Plan in any Calendar Year | 200,000 | ||||
Allocated Share-based Compensation Expense, Total | $ 4,800 | $ 1,000 | $ 1,200 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | ||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $ 100 | $ 300 | $ 200 | ||
Payments Related to Tax Withholding for Share-based Compensation | $ 242 | $ 785 | $ 1,142 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 675,000 | 587,000 | 265,000 | 330,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 5,900 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 700 | $ 2,400 | $ 3,500 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 120 days | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options, Ending Balance | 0 | 0 | 0 | ||
Services Provided [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 242,862 | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 432,575 | ||||
Performance Shares [Member] | Related to Performance for Year Ended December 31, 2018 [Member] | Share-based Compensation Award, Tranche One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 123,744 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 0 | ||||
Performance Shares [Member] | Related to Performance for Year Ended December 31, 2018 [Member] | Share-based Compensation Award, Tranche Two [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 85,326 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 0 | ||||
Performance Shares [Member] | Related Performance for Year Ended December 31, 2019 Through December 31, 2022 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 223,505 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 2,300 | ||||
Common Class A [Member] | |||||
Shares Paid for Tax Withholding for Share Based Compensation | 11,052 | 31,297 | 55,429 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 21.89 | $ 25.09 | $ 20.61 | ||
Payments Related to Tax Withholding for Share-based Compensation | $ 200 | $ 800 | $ 1,100 | ||
General Supplies and Expenses [Member] | |||||
Allocated Share-based Compensation Expense, Total | $ 400 | $ 300 | $ 200 | ||
Third Amendment [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 750,000 | ||||
Second Amendment [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 800,000 |
Note 3 - Stock-based Compensation - Restricted Stock Activity (Details) - $ / shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Number of stock awards, unvested, beginning of period (in shares) | 587 | 265 | 330 |
Weighted average grant date fair value, unvested, beginning of period (in dollars per share) | $ 18.14 | $ 18.63 | $ 12.43 |
Granted (in shares) | 153 | 434 | 120 |
Granted (in dollars per share) | $ 30.32 | $ 16.69 | $ 18.92 |
Vested (in shares) | (35) | (96) | (169) |
Vested (in dollars per share) | $ 25.97 | $ 12.78 | $ 5.28 |
Forfeited (in shares) | (30) | (16) | (16) |
Forfeited (in dollars per share) | $ 27.58 | $ 19.25 | $ 16.53 |
Number of stock awards, unvested, end of period (in shares) | 675 | 587 | 265 |
Weighted average grant date fair value, unvested, end of period (in dollars per share) | $ 20.08 | $ 18.14 | $ 18.63 |
Note 4 - Property and Equipment (Details Textual) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Depreciation, Total | $ 74.4 | $ 72.4 | $ 71.4 |
Capital Leased Assets, Gross, Total | 55.4 | 30.5 | |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 15.6 | 5.4 | |
Capital Leases, Income Statement, Amortization Expense | $ 5.4 | $ 2.6 | 1.6 |
Revenue Equipment [Member] | Minimum [Member] | |||
Capital Leases of Lessee, Term of Contract | 5 years | 5 years | |
Revenue Equipment [Member] | Maximum [Member] | |||
Capital Leases of Lessee, Term of Contract | 7 years | 7 years | |
Net in Depreciation and Amortization Expense [Member] | |||
Gain (Loss) on Disposition of Property Plant Equipment, Total | $ (0.3) | $ (4.0) | $ (0.8) |
Note 4 - Property and Equipment - Property and Equipment, at Cost (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Property, plant, and equipment, gross | $ 638,770 | $ 650,988 |
Revenue Equipment [Member] | ||
Property, plant, and equipment, gross | $ 504,192 | 519,797 |
Revenue Equipment [Member] | Minimum [Member] | ||
Estimated useful lives (Year) | 3 years | |
Revenue Equipment [Member] | Maximum [Member] | ||
Estimated useful lives (Year) | 10 years | |
Office Equipment [Member] | ||
Property, plant, and equipment, gross | $ 3,850 | 4,585 |
Office Equipment [Member] | Minimum [Member] | ||
Estimated useful lives (Year) | 5 years | |
Office Equipment [Member] | Maximum [Member] | ||
Estimated useful lives (Year) | 10 years | |
Land and Land Improvements [Member] | ||
Property, plant, and equipment, gross | $ 25,240 | 25,061 |
Land and Land Improvements [Member] | Minimum [Member] | ||
Estimated useful lives (Year) | 0 years | |
Land and Land Improvements [Member] | Maximum [Member] | ||
Estimated useful lives (Year) | 15 years | |
Building and Building Improvements [Member] | ||
Property, plant, and equipment, gross | $ 75,134 | 74,513 |
Building and Building Improvements [Member] | Minimum [Member] | ||
Estimated useful lives (Year) | 7 years | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Estimated useful lives (Year) | 40 years | |
Construction in Progress [Member] | ||
Property, plant, and equipment, gross | $ 3,121 | 2,023 |
Property, Plant and Equipment, Other Types [Member] | ||
Property, plant, and equipment, gross | $ 27,233 | $ 25,009 |
Property, Plant and Equipment, Other Types [Member] | Minimum [Member] | ||
Estimated useful lives (Year) | 2 years | |
Property, Plant and Equipment, Other Types [Member] | Maximum [Member] | ||
Estimated useful lives (Year) | 10 years |
Note 5 - Goodwill and Other Assets (Details Textual) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Certificates of Deposit, at Carrying Value | $ 800 | ||
Amortization of Intangible Assets, Total | $ 1,500 | $ 0 | $ 200 |
Note 5 - Goodwill and Other Assets - Summary of Other Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Equity Method Investments | $ 26,106 | $ 20,145 |
Other assets, net | 11,043 | 3,137 |
Total other assets | $ 37,149 | $ 23,282 |
Note 5 - Goodwill and Other Assets - Intangible Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Finite-Lived Intangible Assets, Gross | $ 34,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,462 | |
Finite-Lived Intangible Assets, Net | $ 32,538 | $ 0 |
Finite-Lived Intangible Asset, Useful Life (Month) | ||
Trade Names [Member] | ||
Finite-Lived Intangible Assets, Gross | $ 4,400 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 147 | |
Finite-Lived Intangible Assets, Net | $ 4,253 | |
Finite-Lived Intangible Asset, Useful Life (Month) | 15 years | |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets, Gross | $ 1,400 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 140 | |
Finite-Lived Intangible Assets, Net | $ 1,260 | |
Finite-Lived Intangible Asset, Useful Life (Month) | 5 years | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets, Gross | $ 28,200 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,175 | |
Finite-Lived Intangible Assets, Net | $ 27,025 | |
Finite-Lived Intangible Asset, Useful Life (Month) | 12 years |
Note 5 - Goodwill and Other Assets - Expected Future Amortization (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
2019 | $ 2,923 |
2020 | 2,923 |
2021 | 2,923 |
2022 | 2,923 |
2023 | 2,783 |
Thereafter | $ 18,063 |
Note 6 - Debt (Details Textual) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Aug. 31, 2015 |
|
Line of Credit Facility, Maximum Borrowing Capacity | $ 95,000 | ||
Line of Credit Facility, Maximum Increase in Borrowing Capacity | $ 50,000 | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | ||
Percent of Eligible Accounts Receivable | 85.00% | ||
Percent of Appraised Net Orderly Liquidation, Value of Eligible Revenue Equipment | 85.00% | ||
Percent of Net Book Value of Eligible Revenue Equipment | 95.00% | ||
Line of Credit Facility, Availability as Percentage of Revolver Commitment | 35.00% | ||
Line of Credit Facility, Revolver Commitment, Amount | $ 25,000 | ||
Percent of Appraised Fair Market Value of Eligible Real Estate | 75.00% | ||
Long-term Line of Credit, Total | $ 3,900 | ||
Letters of Credit Outstanding, Amount | 36,300 | $ 32,900 | |
Line of Credit Facility, Remaining Borrowing Capacity | 54,800 | ||
Fixed Charge Coverage Requirement | 0 | $ 0 | |
Debt, Secured with a Cross Default Feature | $ 135,200 | ||
Interest Rate Swap [Member] | |||
Derivative, Fixed Interest Rate | 4.20% | ||
Variable Rate Note [Member] | |||
Debt Instrument, Face Amount | $ 28,000 | ||
Federal Funds Rate [Member] | Base Rate Loans [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
London Interbank Offered Rate (LIBOR) [Member] | Base Rate Loans [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||
Applicable Margin [Member] | Base Rate Loans [Member] | Minimum [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
Applicable Margin [Member] | Base Rate Loans [Member] | Maximum [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||
Applicable Margin [Member] | LIBOR [Member] | Minimum [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
Applicable Margin [Member] | LIBOR [Member] | Maximum [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||
Letter of Credit [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 95,000 | ||
Swing Line Sub Facility [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000 | ||
Percent of Aggregate Commitments under Credit Facility | 10.00% | ||
Revolving Credit Facility [Member] | Base Rate Loans [Member] | |||
Long-term Line of Credit, Total | $ 3,900 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||
Revolving Credit Facility [Member] | LIBOR Loans [Member] | |||
Long-term Line of Credit, Total | $ 0 |
Note 6 - Debt - Current and Long-term Debt (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Borrowings under Credit Facility | $ 3,911 | $ 9,007 |
Long-term debt, current | 28,710 | 24,596 |
Long-term debt, noncurrent | 166,635 | 164,465 |
Deferred loan costs | (147) | (140) |
Deferred loan costs | (154) | (298) |
Principal portion of capital lease obligations, secured by related revenue equipment, current | 5,374 | 2,962 |
Long-term portion of capital lease obligations | 35,119 | 21,777 |
Total debt and capital lease obligations, current | 34,084 | 27,558 |
Total debt and capital lease obligations, noncurrent | 201,754 | 186,242 |
Revenue Equipment Installment Notes [Member] | ||
Long-term debt, current | 27,809 | 23,732 |
Long-term debt, noncurrent | 139,115 | 130,946 |
Real Estate Note [Member] | ||
Long-term debt, current | 1,048 | 1,004 |
Long-term debt, noncurrent | $ 23,763 | $ 24,810 |
Note 6 - Debt - Current and Long-term Debt (Details) (Parentheticals) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Revenue Equipment Installment Notes [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.70% | 3.30% |
Real Estate Note [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.10% | 3.10% |
Note 6 - Debt - Future Debt Payments (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
2019 | $ 28,857 |
2020 | 39,121 |
2021 | 61,058 |
2022 | 43,324 |
2023 | 4,185 |
Thereafter | $ 19,100 |
Note 7 - Leases (Details Textual) - USD ($) $ in Millions |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Leveraged Leases, Net Investment in Leveraged Leases Disclosure, Residual Value of Leased Assets | $ 1 | $ 4 |
Note 7 - Leases - Future Payments of Leases (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Operating Lease, 2019 | $ 16,331 | |
Capital Leases, 2019 | 6,511 | |
Operating Lease, 2020 | 11,726 | |
Capital Leases, 2020 | 9,748 | |
Operating Lease, 2021 | 7,973 | |
Capital Leases, 2021 | 7,721 | |
Operating Lease, 2022 | 6,272 | |
Capital Leases, 2022 | 9,487 | |
Operating Lease, 2023 | 208 | |
Capital Leases, 2023 | 9,148 | |
Operating Lease, Thereafter | 35 | |
Capital Leases, Thereafter | 1,420 | |
Operating Lease, Total minimum lease payments | 42,545 | |
Capital Leases, Total minimum lease payments | 44,035 | |
Capital Leases, Less: amount representing interest | (3,542) | |
Capital Leases, Present value of minimum lease payments | 40,493 | |
Capital Leases, Less: current portion | (5,374) | $ (2,962) |
Capital Leases, Capital lease obligations, long-term | $ 35,119 | $ 21,777 |
Note 7 - Leases - Summary of Rental Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Lease and rental expense | $ 16,902 | $ 12,764 | $ 11,735 |
Revenue Equipment [Member] | |||
Lease and rental expense | 14,682 | 12,055 | 10,773 |
Land and Building [Member] | |||
Lease and rental expense | 1,339 | 448 | 708 |
Other Machinery and Equipment [Member] | |||
Lease and rental expense | $ 881 | $ 261 | $ 254 |
Note 8 - Income Taxes (Details Textual) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 40,100 | ||
Deferred Tax Liabilities, Net, Total | $ 77,467 | 63,344 | |
Deferred Tax Assets, Valuation Allowance, Total | 63 | 63 | |
Liability for Uncertainty in Income Taxes, Current | 2,700 | 2,800 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total | 900 | 800 | |
Income Tax Expense (Benefit), Total | 15,507 | (32,142) | $ 10,386 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 2,500 | 2,500 | |
Interest and Penalties Recognized for Uncertain Tax Positions [Member] | |||
Income Tax Expense (Benefit), Total | 100 | (100) | $ 100 |
State and Local Jurisdiction [Member] | |||
Tax Credit Carryforward, Amount | 700 | ||
Operating Loss Carryforwards, Total | $ 75,700 | ||
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |||
Open Tax Year | 2013 2015 2016 2017 2018 | ||
Tax Credit Carryforward, Amount | $ 12,000 | ||
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Alternative Minimum Tax Credit Carry Forward [Member] | |||
Tax Credit Carryforward, Amount | 1,000 | ||
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Tax Year 2013 [Member] | |||
Tax Credit Carryforward, Amount Under Audit | 6,500 | ||
Deferred Tax Assets Excludes State Net Operating Loss Carry Forwards [Member] | |||
Deferred Tax Assets, Valuation Allowance, Total | 0 | 0 | |
Deferred Tax Assets Related to State Net Operating Loss Carry Forwards [Member] | State and Local Jurisdiction [Member] | |||
Deferred Tax Assets, Valuation Allowance, Total | $ 100 | $ 100 |
Note 8 - Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Federal, current | $ (7,780) | $ 11,951 | |
Federal, deferred | 14,117 | (28,055) | (2,925) |
State, current | 1,410 | (1,737) | 1,811 |
State, deferred | (20) | 5,430 | (451) |
Actual income tax expense | $ 15,507 | $ (32,142) | $ 10,386 |
Note 8 - Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Computed "expected" income tax expense | $ 12,182 | $ 8,154 | $ 9,527 |
State income taxes, net of federal income tax effect | 2,610 | 862 | 953 |
Per diem allowances | 1,446 | 2,145 | 2,205 |
Tax contingency accruals | (57) | (43) | (273) |
Valuation allowance, net | (1,167) | ||
Tax credits | (1,042) | (1,084) | (694) |
Impact of Tax Act remeasurement | (40,123) | ||
Excess tax benefits on share-based compensation | 50 | (457) | |
Other, net | 318 | (429) | (1,332) |
Actual income tax expense | $ 15,507 | $ (32,142) | $ 10,386 |
Note 8 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Deferred tax assets: | ||
Insurance and claims | $ 9,593 | $ 8,797 |
Net operating loss carryovers | 10,260 | 4,755 |
Tax credits | 11,985 | 11,875 |
Other | 8,350 | 4,414 |
Valuation allowance | (63) | (63) |
Total deferred tax assets | 40,125 | 29,778 |
Deferred tax liabilities: | ||
Property and equipment | (87,939) | (76,325) |
Investment in partnership | (26,066) | (14,197) |
Deferred fuel hedge | (73) | (99) |
Other | (569) | |
Prepaid expenses | (2,945) | (2,501) |
Total deferred tax liabilities | (117,592) | (93,122) |
Net deferred tax liability | $ (77,467) | $ (63,344) |
Note 8 - Income Taxes - Unrecognized Tax Benefits Activity (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Balance | $ 1,924 | $ 2,051 | $ 2,394 |
Increases related to prior year tax positions | 4 | 19 | |
Decreases related to prior year positions | (9) | (10) | 0 |
Increases related to current year tax positions | |||
Decreases related to settlements with taxing authorities | (88) | ||
Decreases related to lapsing of statute of limitations | (123) | (136) | (255) |
Balance | $ 1,796 | $ 1,924 | $ 2,051 |
Note 9 - Equity Method Investment (Details Textual) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
May 31, 2011 |
|
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 61,687 | $ 48,749 | $ 65,507 | |
Payments to Acquire Property, Plant, and Equipment, Total | 75,142 | 110,802 | 112,794 | |
Income (Loss) from Equity Method Investments, Total | 7,732 | 3,400 | 3,000 | |
Equity Method Investments | $ 26,106 | 20,145 | ||
Transport Enterprise Leasing LLC [Member] | ||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | ||
Option to Acquire Interest in Equity Method Investment, Percentage of Ownership | 51.00% | |||
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 100 | 100 | ||
Revenue from Related Parties | 8,200 | 5,900 | ||
Payments to Acquire Property, Plant, and Equipment, Total | 1,800 | |||
Payments for Rent | 900 | 500 | ||
Deferred Gain on Sale of Property | 200 | 200 | ||
Due from Related Parties, Total | 7,200 | 8,600 | ||
Income (Loss) from Equity Method Investments, Total | 7,700 | 3,400 | 3,000 | |
Proceeds from Equity Method Investment, Distribution | 2,000 | 2,000 | $ 1,500 | |
Equity Method Investments | 26,100 | 20,100 | ||
Equity Method Investment, Aggregate Cost | 4,900 | |||
Transport Enterprise Leasing LLC [Member] | Reduction in TEL Investment [Member] | ||||
Deferred Gain on Sale of Property | $ 200 | $ 400 |
Note 9 - Equity Method Investment - TEL's Summarized Financial Information - Balance Sheets (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Current Assets | $ 25,877 | $ 19,660 |
Non-current Assets | 273,987 | 183,905 |
Current Liabilities | 78,530 | 53,981 |
Non-current Liabilities | 176,389 | 117,135 |
Total Equity | $ 44,945 | $ 32,449 |
Note 9 - Equity Method Investment - TEL's Summarized Financial Information - Income Statement (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Revenue | $ 108,801 | $ 84,865 | $ 94,432 |
Operating Expenses | 84,588 | 72,868 | 83,475 |
Operating Income | 24,213 | 11,997 | 10,957 |
Net Income | $ 16,496 | $ 6,954 | $ 6,598 |
Note 10 - Deferred Profit Sharing Employee Benefit Plan (Details Textual) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Defined Contribution Plan, Cost | $ 1.7 | $ 0.9 | $ 0.7 |
Note 12 - Other Comprehensive Income ("OCI") - Components of AOCI (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | $ (408) | $ (1,719) | $ (6,634) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, net of Tax | 1,076 | (2,784) | (10,597) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Other comprehensive income (loss), reclassification adjustment from AOCI on derivatives, before tax | (115) | (438) | (557) |
Commodity Contract [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, net of Tax | 1,160 | (2,511) | (10,255) |
Commodity Contract [Member] | Fuel Expense [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Other comprehensive income (loss), reclassification adjustment from AOCI on derivatives, before tax | 1,600 | (4,065) | (16,674) |
Commodity Contract [Member] | Income Tax Expense [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (440) | 1,554 | 6,419 |
Interest Rate Cap [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, net of Tax | (83) | (273) | (342) |
Interest Rate Cap [Member] | Income Tax Expense [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | $ 32 | $ 165 | $ 215 |
Note 13 - Commitments and Contingencies Liabilities (Details Textual) - USD ($) $ in Millions |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Letters of Credit Outstanding, Amount | $ 36.3 | $ 32.9 |
Revenue Equipment [Member] | ||
Purchase Commitment, Remaining Minimum Amount Committed | $ 156.3 | $ 51.7 |
Note 14 - Available-for-sale Securities (Details Textual) |
Dec. 31, 2018 |
---|---|
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 10 |
Note 14 - Available-for-sale Securities - Available-for-sale Securities (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Available-for-sale securities, amortized cost | $ 1,496 |
Available-for-sale securities, gross unrealized losses | (7) |
Available-for-sale securities, fair value | 1,489 |
Debt Security, Corporate, US [Member] | |
Available-for-sale securities, amortized cost | 396 |
Available-for-sale securities, gross unrealized losses | (3) |
Available-for-sale securities, fair value | 393 |
Certificates of Deposit [Member] | |
Available-for-sale securities, amortized cost | 600 |
Available-for-sale securities, gross unrealized losses | (1) |
Available-for-sale securities, fair value | 599 |
Certificates of Deposit, Maturing Within One to Five Years [Member] | |
Available-for-sale securities, amortized cost | 500 |
Available-for-sale securities, gross unrealized losses | (3) |
Available-for-sale securities, fair value | $ 497 |
Note 15 - Acquisition of Landair Holdings, Inc. (Details Textual) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Jul. 03, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Labor and Related Expense | $ 304,447 | $ 241,784 | $ 234,526 | |
Operating Expenses, Total | 826,469 | 676,852 | 638,204 | |
Depreciation, Depletion and Amortization, Nonproduction, Total | 75,859 | 72,422 | 71,647 | |
Income Tax Expense (Benefit), Total | 15,507 | (32,142) | $ 10,386 | |
Adjustment for Sale Bonuses and Non-recurring Compensation [Member] | ||||
Labor and Related Expense | (2,100) | |||
Acquisition-related Costs [Member] | ||||
Operating Expenses, Total | 3,400 | |||
Adjustments Related to Changes in Useful Life of Intangible and Fair Value of Property and Equipment [Member] | ||||
Depreciation, Depletion and Amortization, Nonproduction, Total | 1,100 | 2,200 | ||
Adjustments Related to Financing Obtained by the Company and Extinguishment of Debt Held by Acquiree [Member] | ||||
Interest Expense, Total | 2,000 | $ 4,000 | ||
Adjustments for Tax Effect of Pro Forma Adjustments and Depreciation Expense [Member] | ||||
Income Tax Expense (Benefit), Total | 1,700 | |||
Landair Holdings Inc [Member] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||
Business Combination, Consideration Transferred, Total | $ 106,700 | 106,700 | ||
Business Combination, Consideration Transferred, Cash to Acquiree's Former Owners | 83,000 | |||
Business Combination, Consideration Transferred, Reimbursement to Acquiree's Former Owners | 3,200 | |||
Business Combination, Consideration Transferred, State Taxes Paid | 5,000 | |||
Payments to Acquire Businesses, Gross Payment of Debt | 15,500 | |||
Cash Acquired from Acquisition | $ 800 | $ 754 |
Note 15 - Acquisition of Landair Holdings, Inc - Allocation of Purchase Price (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Jul. 03, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Excess of consideration transferred over the net amount of assets and liabilities recognized | $ 41,598 | $ 0 | ||
Net purchase price | 105,946 | |||
Landair Holdings Inc [Member] | ||||
Cash paid | $ 106,700 | 106,700 | ||
Historical book value of Landair’s assets and liabilities | 65,728 | |||
Net property and equipment | 26,164 | |||
Other assets, net | 22 | |||
Liabilities | 13,258 | |||
Fair value of tangible net assets acquired | 16,216 | |||
Post-acquisition goodwill adjustments | (626) | |||
Other intangibles, net | 34,000 | 34,000 | ||
Debt paid at closing | 15,512 | |||
Excess of consideration transferred over the net amount of assets and liabilities recognized | 40,972 | 41,598 | ||
Cash acquired included in historical book value of Landair assets and liabilities | $ (800) | (754) | ||
Net purchase price | 105,946 | |||
Landair Holdings Inc [Member] | Measured by Acquired Company [Member] | ||||
Historical book value of Landair’s assets and liabilities | 25,589 | |||
Landair Holdings Inc [Member] | Fair Value Adjustment [Member] | ||||
Net property and equipment | (7,450) | |||
Other assets, net | (1,094) | |||
Liabilities | $ (829) |
Note 15 - Acquisition of Landair Holdings, Inc - Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Jul. 03, 2018 |
Dec. 31, 2017 |
---|---|---|---|
Goodwill | $ 41,598 | $ 0 | |
Landair Holdings Inc [Member] | |||
Cash and cash equivalents | $ 754 | ||
Accounts receivable | 16,339 | ||
Driver advances and other receivables | 566 | ||
Inventory and supplies | 3 | ||
Prepaid expenses | 1,010 | ||
Assets held for sale | 128 | ||
Net property and equipment | 26,164 | ||
Other assets, net | 22 | ||
Other intangibles, net | 34,000 | 34,000 | |
Total identifiable assets acquired | 78,986 | ||
Accounts payable | (5,475) | ||
Accrued expenses | (5,015) | ||
Insurance and claims accrual | (2,645) | ||
Other short-term liabilities | (123) | ||
Total liabilities assumed | (13,258) | ||
Net identifiable assets acquired | 65,728 | ||
Goodwill | $ 41,598 | 40,972 | |
Net assets acquired | $ 106,700 |
Note 15 - Acquisition of Landair Holdings, Inc - Pro Forma Information (Details) - Landair Holdings Inc [Member] - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Total revenue | $ 85,124 | |
Net income | 7,418 | |
Total revenue | 960,205 | $ 825,850 |
Net income | $ 45,387 | $ 56,440 |
Basic net income per share (in dollars per share) | $ 2.49 | $ 3.09 |
Diluted net income per share (in dollars per share) | $ 2.46 | $ 3.07 |
Note 16 - Segment Information (Details Textual) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018
USD ($)
|
[1] |
Sep. 30, 2018
USD ($)
|
Jun. 30, 2018
USD ($)
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
[1] |
Sep. 30, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|||
Number of Reportable Segments | 2 | ||||||||||||||
Revenues, Total | $ 272,268 | $ 243,303 | $ 196,318 | $ 173,566 | $ 203,306 | $ 178,631 | $ 164,326 | $ 158,744 | |||||||
Managed Freight [Member] | Tractors and Warehouse Space [Member] | |||||||||||||||
Operating Leases, Income Statement, Lease Revenue, Total | $ 900 | ||||||||||||||
Managed Freight [Member] | Factoring [Member] | |||||||||||||||
Revenues, Total | 5,000 | $ 3,100 | $ 2,600 | ||||||||||||
Managed Freight [Member] | Warehouse [Member] | Landair [Member] | |||||||||||||||
Revenues, Total | 23,600 | ||||||||||||||
Truckload [Member] | Tractors and Warehouse Space [Member] | |||||||||||||||
Operating Leases, Income Statement, Lease Revenue, Total | $ 3,900 | ||||||||||||||
|
Note 16 - Segment Information - Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||||||||
Revenues, Total | $ 272,268 | [1] | $ 243,303 | $ 196,318 | $ 173,566 | $ 203,306 | [1] | $ 178,631 | $ 164,326 | $ 158,744 | ||||||||||
Operating income | 22,315 | [1] | $ 16,181 | $ 14,065 | $ 6,425 | 14,843 | [1] | $ 9,041 | $ 3,962 | $ 309 | $ 58,986 | $ 28,155 | $ 32,447 | |||||||
Total assets | 773,524 | 649,668 | 773,524 | 649,668 | ||||||||||||||||
Operating Segments [Member] | Truckload [Member] | ||||||||||||||||||||
Revenues, Total | 727,046 | 612,834 | 601,226 | |||||||||||||||||
Operating income | 45,392 | 19,567 | 24,816 | |||||||||||||||||
Depreciation and amortization (1) | [2] | 75,446 | 76,423 | 72,434 | ||||||||||||||||
Total assets | 699,266 | 607,189 | 699,266 | 607,189 | 589,249 | |||||||||||||||
Capital expenditures, net | [3] | (12,864) | 71,196 | 59,009 | ||||||||||||||||
Operating Segments [Member] | Other Segments [Member] | ||||||||||||||||||||
Revenues, Total | 165,707 | 98,182 | 73,602 | |||||||||||||||||
Operating income | 13,594 | 8,588 | 7,631 | |||||||||||||||||
Depreciation and amortization (1) | [2] | 710 | 24 | 22 | ||||||||||||||||
Total assets | 74,258 | 42,479 | 74,258 | 42,479 | 31,289 | |||||||||||||||
Capital expenditures, net | [3] | (591) | 810 | 43 | ||||||||||||||||
Operating Segments [Member] | Corporate Segment [Member] | ||||||||||||||||||||
Revenues, Total | 892,753 | 711,016 | 674,828 | |||||||||||||||||
Operating income | 58,986 | 28,155 | 32,447 | |||||||||||||||||
Depreciation and amortization (1) | [2] | 76,156 | 76,447 | 72,456 | ||||||||||||||||
Total assets | $ 773,524 | $ 649,668 | 773,524 | 649,668 | 620,538 | |||||||||||||||
Capital expenditures, net | [3] | (13,455) | 72,006 | 59,052 | ||||||||||||||||
Intersegment Eliminations [Member] | Truckload [Member] | ||||||||||||||||||||
Revenues, Total | ||||||||||||||||||||
Intersegment Eliminations [Member] | Other Segments [Member] | ||||||||||||||||||||
Revenues, Total | (7,298) | (6,009) | (4,177) | |||||||||||||||||
Intersegment Eliminations [Member] | Corporate Segment [Member] | ||||||||||||||||||||
Revenues, Total | $ (7,298) | $ (6,009) | $ (4,177) | |||||||||||||||||
|
Note 17 - Quarterly Results of Operations (Unaudited) (Details Textual) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 40,100 |
Note 17 - Quarterly Results of Operations (Unaudited) - Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
[1] | Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
[1] | Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||
Revenues, Total | $ 272,268 | $ 243,303 | $ 196,318 | $ 173,566 | $ 203,306 | $ 178,631 | $ 164,326 | $ 158,744 | |||||||
Operating income | 22,315 | 16,181 | 14,065 | 6,425 | 14,843 | 9,041 | 3,962 | 309 | $ 58,986 | $ 28,155 | $ 32,447 | ||||
Net income | $ 16,501 | $ 11,614 | $ 9,971 | $ 4,417 | $ 49,298 | $ 4,632 | $ 1,548 | $ (39) | $ 42,503 | $ 55,439 | $ 16,835 | ||||
Basic income per share (in dollars per share) | $ 0.91 | $ 0.63 | $ 0.54 | $ 0.24 | $ 2.70 | $ 0.25 | $ 0.08 | $ 0 | $ 2.32 | $ 3.03 | $ 0.93 | ||||
Diluted income per share (in dollars per share) | $ 0.89 | $ 0.63 | $ 0.54 | $ 0.24 | $ 2.69 | $ 0.25 | $ 0.08 | $ 0 | $ 2.30 | $ 3.02 | $ 0.92 | ||||
|
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