|
|
|
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
Emerging growth company
|
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
|
Item 2.02
|
Results of Operations and Financial Condition.
|
|
On July 21, 2021, Covenant Logistics Group, Inc., a Nevada corporation (the “Company”), issued a press release announcing its
financial and operating results for the second quarter ended June 30, 2021. The financial tables, including the non-GAAP reconciliations, were inadvertently omitted from the press release issued by the Company. Such tables
have been included in the press release attached hereto as Exhibit 99.1.
|
||
Item 9.01
|
Financial Statements and Exhibits.
|
|
(d)
|
Exhibits.
|
|
EXHIBIT
NUMBER
|
EXHIBIT DESCRIPTION
|
|
Covenant Logistics Group, Inc. press release announcing its financial and operating results for the second quarter ended June 30,
2021.
|
||
104
|
Cover Page Interactive Data File
|
|
The information contained in Items 2.02 and 9.01 of this report and the exhibit hereto shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as
shall be expressly set forth by specific reference in such a filing.
|
||
The information in Items 2.02 and
9.01 of this report and the exhibit hereto may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and such statements are subject to the
safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements are made based on the
current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual results or events may differ from those anticipated by forward-looking statements. Please refer to
the italicized paragraph at the end of the attached press release and various disclosures by the Company in its press releases, stockholder reports, and filings with the Securities and Exchange Commission for information
concerning risks, uncertainties, and other factors that may affect future results.
|
COVENANT LOGISTICS GROUP, INC.
|
||
(Registrant)
|
||
Date: July 21, 2021
|
By:
|
/s/ Joey B. Hogan
|
Joey B. Hogan
|
||
President
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
($000s, except per share information)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Total Revenue
|
$
|
256,324
|
$
|
191,689
|
$
|
477,213
|
$
|
402,502
|
||||||||
Freight Revenue, Excludes Fuel Surcharge
|
$
|
231,948
|
$
|
179,564
|
$
|
432,636
|
$
|
369,145
|
||||||||
Operating Income (Loss)
|
$
|
18,332
|
$
|
(28,950
|
)
|
$
|
28,843
|
$
|
(30,404
|
)
|
||||||
Adjusted Operating Income (1)
|
$
|
19,484
|
$
|
945
|
$
|
31,147
|
$
|
222
|
||||||||
Operating Ratio
|
92.8
|
%
|
115.1
|
%
|
94.0
|
%
|
107.6
|
%
|
||||||||
Adjusted Operating Ratio (1)
|
91.6
|
%
|
99.5
|
%
|
92.8
|
%
|
99.9
|
%
|
||||||||
Net Income (Loss)
|
$
|
15,417
|
$
|
(22,343
|
)
|
$
|
26,559
|
$
|
(24,146
|
)
|
||||||
Adjusted Net Income (Loss) (1)
|
$
|
16,263
|
$
|
427
|
$
|
25,771
|
$
|
(839
|
)
|
|||||||
Earnings (Loss) per Diluted Share
|
$
|
0.91
|
$
|
(1.31
|
)
|
$
|
1.56
|
$
|
(1.37
|
)
|
||||||
Adjusted Earnings (Loss) per Diluted Share (1)
|
$
|
0.96
|
$
|
0.02
|
$
|
1.52
|
$
|
(0.04
|
)
|
|||||||
(1) Represents non-GAAP measures.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
($000s, except statistical information)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Combined Truckload
|
||||||||||||||||
Total Revenue
|
$
|
169,237
|
$
|
145,718
|
$
|
323,163
|
$
|
313,666
|
||||||||
Freight Revenue, excludes Fuel Surcharge
|
$
|
145,025
|
$
|
133,708
|
$
|
278,885
|
$
|
280,558
|
||||||||
Operating Income (Loss)
|
$
|
10,034
|
$
|
(26,021
|
)
|
$
|
14,446
|
$
|
(29,114
|
)
|
||||||
Adj. Operating Income (Loss) (1)
|
$
|
10,635
|
$
|
(6
|
)
|
$
|
15,648
|
$
|
(2,720
|
)
|
||||||
Operating Ratio
|
94.1
|
%
|
117.9
|
%
|
95.5
|
%
|
109.3
|
%
|
||||||||
Adj. Operating Ratio (1)
|
92.7
|
%
|
100.0
|
%
|
94.4
|
%
|
101.0
|
%
|
||||||||
Average Freight Revenue per Tractor per Week
|
$
|
4,551
|
$
|
3,647
|
$
|
4,340
|
$
|
3,717
|
||||||||
Average Freight Revenue per Total Mile
|
$
|
2.00
|
$
|
1.83
|
$
|
1.96
|
$
|
1.83
|
||||||||
Average Miles per Tractor per Period
|
29,571
|
25,970
|
57,367
|
52,787
|
||||||||||||
Weighted Average Tractors for Period
|
2,451
|
2,820
|
2,485
|
2,903
|
||||||||||||
Expedited
|
||||||||||||||||
Total Revenue
|
$
|
87,369
|
$
|
79,778
|
$
|
165,849
|
$
|
165,938
|
||||||||
Freight Revenue, excludes Fuel Surcharge
|
$
|
75,338
|
$
|
73,330
|
$
|
144,609
|
$
|
150,308
|
||||||||
Operating Income (Loss)
|
$
|
10,225
|
$
|
(12,844
|
)
|
$
|
16,436
|
$
|
(14,396
|
)
|
||||||
Adj. Operating Income (Loss) (1)
|
$
|
10,225
|
$
|
767
|
$
|
16,436
|
$
|
(1,100
|
)
|
|||||||
Operating Ratio
|
88.3
|
%
|
116.1
|
%
|
90.1
|
%
|
108.7
|
%
|
||||||||
Adj. Operating Ratio (1)
|
86.4
|
%
|
99.0
|
%
|
88.6
|
%
|
100.7
|
%
|
||||||||
Average Freight Revenue per Tractor per Week
|
$
|
6,692
|
$
|
4,670
|
$
|
6,384
|
$
|
4,592
|
||||||||
Average Freight Revenue per Total Mile
|
$
|
1.93
|
$
|
1.76
|
$
|
1.90
|
$
|
1.82
|
||||||||
Average Miles per Tractor per Period
|
45,130
|
34,440
|
86,760
|
65,765
|
||||||||||||
Weighted Average Tractors for Period
|
866
|
1,208
|
876
|
1,259
|
||||||||||||
Dedicated
|
||||||||||||||||
Total Revenue
|
$
|
81,868
|
$
|
65,940
|
$
|
157,314
|
$
|
147,728
|
||||||||
Freight Revenue, excludes Fuel Surcharge
|
$
|
69,687
|
$
|
60,378
|
$
|
134,276
|
$
|
130,250
|
||||||||
Operating Income (Loss)
|
$
|
(191
|
)
|
$
|
(13,177
|
)
|
$
|
(1,990
|
)
|
$
|
(14,718
|
)
|
||||
Adj. Operating Income (Loss) (1)
|
$
|
410
|
$
|
(773
|
)
|
$
|
(788
|
)
|
$
|
(1,620
|
)
|
|||||
Operating Ratio
|
100.2
|
%
|
120.0
|
%
|
101.3
|
%
|
110.0
|
%
|
||||||||
Adj. Operating Ratio (1)
|
99.4
|
%
|
101.3
|
%
|
100.6
|
%
|
101.2
|
%
|
||||||||
Average Freight Revenue per Tractor per Week
|
$
|
3,382
|
$
|
2,881
|
$
|
3,227
|
$
|
3,047
|
||||||||
Average Freight Revenue per Total Mile
|
$
|
2.09
|
$
|
1.91
|
$
|
2.02
|
$
|
1.85
|
||||||||
Average Miles per Tractor per Period
|
21,070
|
19,622
|
41,364
|
42,849
|
||||||||||||
Weighted Average Tractors for Period
|
1,585
|
1,612
|
1,609
|
1,644
|
||||||||||||
(1) Represents non-GAAP measures.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
($000s)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Freight Revenue
|
$
|
71,635
|
$
|
34,362
|
$
|
123,032
|
$
|
65,099
|
||||||||
Operating Income (Loss)
|
$
|
7,316
|
$
|
(3,611
|
)
|
$
|
12,261
|
$
|
(2,946
|
)
|
||||||
Adj. Operating Income (Loss) (1)
|
$
|
7,479
|
$
|
(349
|
)
|
$
|
12,587
|
$
|
374
|
|||||||
Operating Ratio
|
89.8
|
%
|
110.5
|
%
|
90.0
|
%
|
104.5
|
%
|
||||||||
Adj. Operating Ratio (1)
|
89.6
|
%
|
101.0
|
%
|
89.8
|
%
|
99.4
|
%
|
||||||||
(1) Represents non-GAAP measures.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
($000s)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Freight Revenue
|
$
|
15,288
|
$
|
11,494
|
$
|
30,719
|
$
|
23,489
|
||||||||
Operating Income
|
$
|
982
|
$
|
682
|
$
|
2,136
|
$
|
1,656
|
||||||||
Adj. Operating Income (1)
|
$
|
1,370
|
$
|
1,300
|
$
|
2,912
|
$
|
2,568
|
||||||||
Operating Ratio
|
93.6
|
%
|
94.1
|
%
|
93.1
|
%
|
93.0
|
%
|
||||||||
Adj. Operating Ratio (1)
|
91.0
|
%
|
88.7
|
%
|
90.5
|
%
|
89.1
|
%
|
||||||||
(1) Represents non-GAAP measures.
|
Covenant Logistics Group, Inc.
|
||||||||||||||||||||||||
Key Financial and Operating Statistics
|
||||||||||||||||||||||||
Income Statement Data
|
||||||||||||||||||||||||
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
($s in 000s, except per share data)
|
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
|
||||||||||||||||||
Freight revenue
|
$
|
231,948
|
$
|
179,564
|
29.2
|
%
|
$
|
432,636
|
$
|
369,145
|
17.2
|
%
|
||||||||||||
Fuel surcharge revenue
|
24,376
|
12,125
|
101.0
|
%
|
44,577
|
33,357
|
33.6
|
%
|
||||||||||||||||
Total revenue
|
$
|
256,324
|
$
|
191,689
|
33.7
|
%
|
$
|
477,213
|
$
|
402,502
|
18.6
|
%
|
||||||||||||
Operating expenses:
|
||||||||||||||||||||||||
Salaries, wages, and related expenses
|
88,477
|
74,688
|
171,062
|
157,152
|
||||||||||||||||||||
Fuel expense
|
26,372
|
15,938
|
49,194
|
41,202
|
||||||||||||||||||||
Operations and maintenance
|
14,294
|
12,218
|
29,013
|
25,044
|
||||||||||||||||||||
Revenue equipment rentals and purchased transportation
|
75,455
|
47,011
|
132,691
|
93,073
|
||||||||||||||||||||
Operating taxes and licenses
|
2,960
|
3,123
|
5,545
|
6,576
|
||||||||||||||||||||
Insurance and claims
|
9,577
|
11,562
|
17,415
|
27,174
|
||||||||||||||||||||
Communications and utilities
|
1,130
|
1,782
|
2,377
|
3,351
|
||||||||||||||||||||
General supplies and expenses
|
7,752
|
11,536
|
15,934
|
19,894
|
||||||||||||||||||||
Depreciation and amortization
|
13,863
|
19,663
|
27,951
|
37,846
|
||||||||||||||||||||
Gain on disposition of property and equipment, net
|
(1,888
|
)
|
(3,451
|
)
|
(2,812
|
)
|
(4,975
|
)
|
||||||||||||||||
Impairment of long lived property & equipment
|
-
|
26,569
|
-
|
26,569
|
||||||||||||||||||||
Total operating expenses
|
237,992
|
220,639
|
448,370
|
432,906
|
||||||||||||||||||||
Operating income (Loss)
|
18,332
|
(28,950
|
)
|
28,843
|
(30,404
|
)
|
||||||||||||||||||
Interest expense, net
|
708
|
2,084
|
1,450
|
3,983
|
||||||||||||||||||||
Income (Loss) from equity method investment
|
3,382
|
530
|
6,342
|
205
|
||||||||||||||||||||
Income (Loss) from continuing operations before income taxes
|
21,006
|
(30,504
|
)
|
33,735
|
(34,182
|
)
|
||||||||||||||||||
Income tax expense (Benefit)
|
5,570
|
(7,336
|
)
|
9,716
|
(8,340
|
)
|
||||||||||||||||||
Income (Loss) from continuing operations
|
15,436
|
(23,168
|
)
|
24,019
|
(25,842
|
)
|
||||||||||||||||||
Income from discontinued operations, net of tax
|
(19
|
)
|
825
|
2,540
|
1,696
|
|||||||||||||||||||
Net income (Loss)
|
$
|
15,417
|
$
|
(22,343
|
)
|
$
|
26,559
|
$
|
(24,146
|
)
|
||||||||||||||
Basic earnings (loss) per share
|
||||||||||||||||||||||||
Income (Loss) from continuing operations
|
$
|
0.92
|
$
|
(1.36
|
)
|
$
|
1.42
|
$
|
(1.47
|
)
|
||||||||||||||
Income from discontinued operations
|
$
|
(0.00
|
)
|
$
|
0.05
|
$
|
0.15
|
$
|
0.10
|
|||||||||||||||
Net income (Loss)
|
$
|
0.92
|
$
|
(1.31
|
)
|
$
|
1.58
|
$
|
(1.37
|
)
|
||||||||||||||
Diluted earnings (loss) per share
|
||||||||||||||||||||||||
Income (Loss) from continuing operations
|
$
|
0.91
|
$
|
(1.36
|
)
|
$
|
1.41
|
$
|
(1.47
|
)
|
||||||||||||||
Income from discontinued operations
|
$
|
(0.00
|
)
|
$
|
0.05
|
$
|
0.15
|
$
|
0.10
|
|||||||||||||||
Net income (Loss)
|
$
|
0.91
|
$
|
(1.31
|
)
|
$
|
1.56
|
$
|
(1.37
|
)
|
||||||||||||||
Basic weighted average shares outstanding (000s)
|
16,765
|
17,089
|
16,858
|
17,584
|
||||||||||||||||||||
Diluted weighted average shares outstanding (000s)
|
17,022
|
17,089
|
17,052
|
17,584
|
||||||||||||||||||||
Segment Freight Revenues
|
||||||||||||||||||||||||
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
($s in 000's)
|
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
|
||||||||||||||||||
Expedited - Truckload
|
$
|
75,338
|
$
|
73,330
|
2.7
|
%
|
$
|
144,609
|
$
|
150,308
|
(3.8
|
%)
|
||||||||||||
Dedicated - Truckload
|
69,687
|
60,378
|
15.4
|
%
|
134,276
|
130,250
|
3.1
|
%
|
||||||||||||||||
Combined Truckload
|
145,025
|
133,708
|
8.5
|
%
|
278,885
|
280,558
|
(0.6
|
%)
|
||||||||||||||||
Managed Freight
|
71,635
|
34,362
|
108.5
|
%
|
123,032
|
65,099
|
89.0
|
%
|
||||||||||||||||
Warehousing
|
15,288
|
11,494
|
33.0
|
%
|
30,719
|
23,489
|
30.8
|
%
|
||||||||||||||||
Consolidated Freight Revenue
|
$
|
231,948
|
$
|
179,564
|
29.2
|
%
|
$
|
432,636
|
$
|
369,146
|
17.2
|
%
|
||||||||||||
Truckload Operating Statistics
|
||||||||||||||||||||||||
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
|
|||||||||||||||||||
Average freight revenue per loaded mile
|
$
|
2.24
|
$
|
2.03
|
10.1
|
%
|
$
|
2.19
|
$
|
2.03
|
7.9
|
%
|
||||||||||||
Average freight revenue per total mile
|
$
|
2.00
|
$
|
1.83
|
9.6
|
%
|
$
|
1.96
|
$
|
1.83
|
6.9
|
%
|
||||||||||||
Average freight revenue per tractor per week
|
$
|
4,551
|
$
|
3,647
|
24.8
|
%
|
$
|
4,340
|
$
|
3,717
|
16.8
|
%
|
||||||||||||
Average miles per tractor per period
|
29,571
|
25,970
|
13.9
|
%
|
57,367
|
52,787
|
8.7
|
%
|
||||||||||||||||
Weighted avg. tractors for period
|
2,451
|
2,820
|
(13.1
|
%)
|
2,485
|
2,903
|
(14.4
|
%)
|
||||||||||||||||
Tractors at end of period
|
2,407
|
2,623
|
(8.2
|
%)
|
2,407
|
2,623
|
(8.2
|
%)
|
||||||||||||||||
Trailers at end of period
|
5,314
|
6,662
|
(20.2
|
%)
|
5,314
|
6,662
|
(20.2
|
%)
|
||||||||||||||||
Selected Balance Sheet Data |
||||||||||||||||||||||||
($s in '000's, except per share data)
|
6/30/2021
|
12/31/2020
|
||||||||||||||||||||||
Total assets
|
$
|
662,463
|
$
|
676,716
|
||||||||||||||||||||
Total stockholders' equity
|
$
|
313,536
|
$
|
290,642
|
||||||||||||||||||||
Total indebtedness, net of cash
|
$
|
88,068
|
$
|
101,964
|
||||||||||||||||||||
Net Indebtedness to Capitalization Ratio
|
21.9
|
%
|
26.0
|
%
|
||||||||||||||||||||
Tangible book value per end-of-quarter basic share
|
$
|
14.82
|
$
|
13.03
|
Covenant Logistics Group, Inc.
|
||||||||||||||||||||||||
Non-GAAP Reconciliation (Unaudited)
|
||||||||||||||||||||||||
Adjusted Operating Income and Adjusted Operating Ratio (1)
|
||||||||||||||||||||||||
(Dollars in thousands)
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||
GAAP Presentation
|
2021
|
2020
|
bps Change
|
2021
|
2020
|
bps Change
|
||||||||||||||||||
Total revenue
|
$
|
256,324
|
$
|
191,689
|
$
|
477,213
|
$
|
402,502
|
||||||||||||||||
Total operating expenses
|
237,992
|
220,639
|
448,370
|
432,906
|
||||||||||||||||||||
Operating income (loss)
|
$
|
18,332
|
$
|
(28,950
|
)
|
$
|
28,843
|
$
|
(30,404
|
)
|
||||||||||||||
Operating ratio
|
92.8
|
%
|
115.1
|
%
|
(2,230
|
)
|
94.0
|
%
|
107.6
|
%
|
(1,360
|
)
|
||||||||||||
Non-GAAP Presentation
|
2021
|
2020
|
bps Change
|
2021
|
2020
|
bps Change
|
||||||||||||||||||
Total revenue
|
$
|
256,324
|
$
|
191,689
|
$
|
477,213
|
$
|
402,502
|
||||||||||||||||
Fuel surcharge revenue
|
(24,376
|
)
|
(12,125
|
)
|
(44,577
|
)
|
(33,357
|
)
|
||||||||||||||||
Freight revenue (total revenue, excluding fuel surcharge)
|
231,948
|
179,564
|
432,636
|
369,145
|
||||||||||||||||||||
Total operating expenses
|
237,992
|
220,639
|
448,370
|
432,906
|
||||||||||||||||||||
Adjusted for:
|
||||||||||||||||||||||||
Fuel surcharge revenue
|
(24,376
|
)
|
(12,125
|
)
|
(44,577
|
)
|
(33,357
|
)
|
||||||||||||||||
Amortization of intangibles (2)
|
(1,152
|
)
|
(2,062
|
)
|
(2,304
|
)
|
(2,793
|
)
|
||||||||||||||||
Bad debt expense associated with customer bankruptcy and high credit risk customers
|
-
|
(2,617
|
)
|
-
|
(2,617
|
)
|
||||||||||||||||||
Strategic restructuring adjusting items:
|
||||||||||||||||||||||||
Gain on disposal of terminals, net
|
-
|
5,712
|
-
|
5,712
|
||||||||||||||||||||
Impairment of real estate and related tangible assets
|
-
|
(9,790
|
)
|
-
|
(9,790
|
)
|
||||||||||||||||||
Impairment of revenue equipment and related charges
|
-
|
(17,604
|
)
|
-
|
(17,604
|
)
|
||||||||||||||||||
Restructuring related severance and other
|
-
|
(1,791
|
)
|
-
|
(1,791
|
)
|
||||||||||||||||||
Abandonment of information technology infrastructure
|
-
|
(1,048
|
)
|
-
|
(1,048
|
)
|
||||||||||||||||||
Contract exit costs and other restructuring
|
-
|
(695
|
)
|
-
|
(695
|
)
|
||||||||||||||||||
Adjusted operating expenses
|
212,464
|
178,619
|
401,489
|
368,923
|
||||||||||||||||||||
Adjusted operating income
|
19,484
|
945
|
31,147
|
222
|
||||||||||||||||||||
Adjusted operating ratio
|
91.6
|
%
|
99.5
|
%
|
(790
|
)
|
92.8
|
%
|
99.9
|
%
|
(710
|
)
|
||||||||||||
(1) Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP operating income
and operating ratio to consolidated non-GAAP Adjusted operating income and Adjusted operating ratio.
|
||||||||||||||||||||||||
(2) "Amortization of intangibles" reflects the non-cash amortization expense relating to intangible
assets.
|
Non-GAAP Reconciliation (Unaudited)
|
||||||||||||||||
Adjusted Net Income and Adjusted EPS (1)
|
||||||||||||||||
(Dollars in thousands)
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
GAAP Presentation - Net (loss) income
|
$
|
15,417
|
$
|
(22,343
|
)
|
$
|
26,559
|
$
|
(24,146
|
)
|
||||||
Adjusted for:
|
||||||||||||||||
Amortization of intangibles (2)
|
1,152
|
2,062
|
2,304
|
2,793
|
||||||||||||
Bad debt expense associated with customer bankruptcy and high credit risk customers
|
-
|
2,617
|
-
|
2,617
|
||||||||||||
Strategic restructuring adjusting items:
|
||||||||||||||||
Discontinued operations reversal of loss contingency (3)
|
-
|
-
|
(3,411
|
)
|
-
|
|||||||||||
Loss (gain) on disposal of terminals, net
|
-
|
(5,712
|
)
|
-
|
(5,712
|
)
|
||||||||||
Impairment of real estate and related tangible assets
|
-
|
9,790
|
-
|
9,790
|
||||||||||||
Impairment of revenue equipment and related charges
|
-
|
17,604
|
-
|
17,604
|
||||||||||||
Restructuring related severance and other
|
-
|
1,791
|
-
|
1,791
|
||||||||||||
Abandonment of information technology infrastructure
|
-
|
1,048
|
-
|
1,048
|
||||||||||||
Contract exit costs and other restructuring
|
-
|
695
|
-
|
695
|
||||||||||||
Total adjustments before taxes
|
1,152
|
29,895
|
(1,107
|
)
|
30,626
|
|||||||||||
Provision for income tax expense at effective rate
|
(306
|
)
|
(7,125
|
)
|
319
|
(7,319
|
)
|
|||||||||
Tax effected adjustments
|
$
|
846
|
$
|
22,770
|
$
|
(788
|
)
|
$
|
23,307
|
|||||||
Non-GAAP Presentation - Adjusted net income
|
$
|
16,263
|
$
|
427
|
$
|
25,771
|
$
|
(839
|
)
|
|||||||
GAAP Presentation - Diluted (loss) earnings per share ("EPS")
|
$
|
0.91
|
$
|
(1.31
|
)
|
$
|
1.56
|
$
|
(1.37
|
)
|
||||||
Adjusted for:
|
||||||||||||||||
Amortization of intangibles (2)
|
0.07
|
0.12
|
0.14
|
0.16
|
||||||||||||
Bad debt expense associated with customer bankruptcy and high credit risk customers
|
-
|
0.15
|
-
|
0.15
|
||||||||||||
Strategic restructuring adjusting items:
|
||||||||||||||||
Discontinued operations reversal of loss contingency(3)
|
-
|
-
|
(0.20
|
)
|
-
|
|||||||||||
Gain on sale of terminal, net
|
-
|
(0.33
|
)
|
-
|
(0.32
|
)
|
||||||||||
Impairment of real estate and related tangible assets
|
-
|
0.57
|
-
|
0.56
|
||||||||||||
Impairment of revenue equipment and related charges
|
-
|
1.03
|
-
|
1.00
|
||||||||||||
Restructuring related severance and other
|
-
|
0.10
|
-
|
0.10
|
||||||||||||
Abandonment of information technology infrastructure
|
-
|
0.06
|
-
|
0.06
|
||||||||||||
Contract exit costs and other restructuring
|
-
|
0.04
|
-
|
0.04
|
||||||||||||
Total adjustments before taxes
|
0.07
|
1.75
|
(0.06
|
)
|
1.75
|
|||||||||||
Provision for income tax expense at effective rate
|
(0.02
|
)
|
(0.42
|
)
|
0.02
|
(0.42
|
)
|
|||||||||
Tax effected adjustments
|
$
|
0.05
|
$
|
1.33
|
$
|
(0.04
|
)
|
$
|
1.33
|
|||||||
Non-GAAP Presentation - Adjusted EPS
|
$
|
0.96
|
$
|
0.02
|
$
|
1.52
|
$
|
(0.04
|
)
|
|||||||
(1) Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP net income
to consolidated non-GAAP adjusted net income and consolidated GAAP diluted earnings per share to non-GAAP consolidated Adjusted EPS.
|
||||||||||||||||
(2) "Amortization of intangibles" reflects the non-cash amortization expense relating to intangible assets.
|
||||||||||||||||
(3) "Discontinued Operations reversal of loss contingency" reflects the non-cash reversal of a previously
recorded loss contingency that is no longer considered probable. The original loss contingency was recorded in Q4 2020 as a result of our disposal of our former accounts receivable factoring segment, TFS.
|
Covenant Logistics Group, Inc.
|
||||||||||||||||||||||||||||||||||||||||
Non-GAAP Reconciliation (Unaudited)
|
||||||||||||||||||||||||||||||||||||||||
Adjusted Operating Income and Adjusted Operating Ratio (1)
|
||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Three Months Ended June 30,
|
|||||||||||||||||||||||||||||||||||||||
GAAP Presentation
|
2021
|
2020
|
||||||||||||||||||||||||||||||||||||||
Expedited
|
Dedicated
|
Combined Truckload
|
Managed Freight
|
Warehousing
|
Expedited
|
Dedicated
|
Combined Truckload
|
Managed Freight
|
Warehousing
|
|||||||||||||||||||||||||||||||
Total revenue
|
$
|
87,369
|
$
|
81,868
|
$
|
169,237
|
$
|
71,635
|
$
|
15,452
|
$
|
79,778
|
$
|
65,940
|
$
|
145,718
|
$
|
34,362
|
$
|
11,609
|
||||||||||||||||||||
Total operating expenses
|
77,144
|
82,059
|
$
|
159,203
|
$
|
64,319
|
14,470
|
92,622
|
79,117
|
171,739
|
37,973
|
10,927
|
||||||||||||||||||||||||||||
Operating income (loss)
|
$
|
10,225
|
$
|
(191
|
)
|
$
|
10,034
|
$
|
7,316
|
$
|
982
|
$
|
(12,844
|
)
|
$
|
(13,177
|
)
|
$
|
(26,021
|
)
|
$
|
(3,611
|
)
|
$
|
682
|
|||||||||||||||
Operating ratio
|
88.3
|
%
|
100.2
|
%
|
94.1
|
%
|
89.8
|
%
|
93.6
|
%
|
116.1
|
%
|
120.0
|
%
|
117.9
|
%
|
110.5
|
%
|
94.1
|
%
|
||||||||||||||||||||
Non-GAAP Presentation
|
||||||||||||||||||||||||||||||||||||||||
Total revenue
|
$
|
87,369
|
$
|
81,868
|
$
|
169,237
|
$
|
71,635
|
$
|
15,452
|
$
|
79,778
|
$
|
65,940
|
$
|
145,718
|
$
|
34,362
|
$
|
11,609
|
||||||||||||||||||||
Fuel surcharge revenue
|
(12,031
|
)
|
(12,181
|
)
|
(24,212
|
)
|
-
|
(164
|
)
|
(6,448
|
)
|
(5,562
|
)
|
(12,010
|
)
|
-
|
(115
|
)
|
||||||||||||||||||||||
Freight revenue (total revenue, excluding fuel surcharge)
|
75,338
|
69,687
|
145,025
|
71,635
|
15,288
|
73,330
|
60,378
|
133,708
|
34,362
|
11,494
|
||||||||||||||||||||||||||||||
Total operating expenses
|
77,144
|
82,059
|
159,203
|
64,319
|
14,470
|
92,622
|
79,117
|
171,739
|
37,973
|
10,927
|
||||||||||||||||||||||||||||||
Adjusted for:
|
||||||||||||||||||||||||||||||||||||||||
Fuel surcharge revenue
|
(12,031
|
)
|
(12,181
|
)
|
(24,212
|
)
|
-
|
(164
|
)
|
(6,448
|
)
|
(5,562
|
)
|
(12,010
|
)
|
-
|
(115
|
)
|
||||||||||||||||||||||
Amortization of intangibles (2)
|
-
|
(601
|
)
|
(601
|
)
|
(163
|
)
|
(388
|
)
|
-
|
(1,196
|
)
|
(1,196
|
)
|
(248
|
)
|
(618
|
)
|
||||||||||||||||||||||
Bad debt expense associated with customer bankruptcy and high credit risk customers
|
-
|
-
|
-
|
-
|
-
|
(1,009
|
)
|
(830
|
)
|
(1,839
|
)
|
(778
|
)
|
-
|
||||||||||||||||||||||||||
Strategic restructuring adjusting items:
|
||||||||||||||||||||||||||||||||||||||||
Insurance policy erosion
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Gain on disposal of terminals, net
|
-
|
-
|
-
|
-
|
-
|
3,133
|
2,579
|
5,712
|
-
|
-
|
||||||||||||||||||||||||||||||
Impairment of real estate and related tangible assets
|
-
|
-
|
-
|
-
|
-
|
(452
|
)
|
(373
|
)
|
(825
|
)
|
-
|
-
|
|||||||||||||||||||||||||||
Impairment of revenue equipment and related charges
|
-
|
-
|
-
|
-
|
-
|
(13,345
|
)
|
(10,988
|
)
|
(24,333
|
)
|
(2,236
|
)
|
-
|
||||||||||||||||||||||||||
Restructuring related severance and other
|
-
|
-
|
-
|
-
|
-
|
(982
|
)
|
(809
|
)
|
(1,791
|
)
|
-
|
-
|
|||||||||||||||||||||||||||
Abandonment of information technology infrastructure
|
-
|
-
|
-
|
-
|
-
|
(575
|
)
|
(473
|
)
|
(1,048
|
)
|
-
|
-
|
|||||||||||||||||||||||||||
Contract exit costs and other restructuring
|
-
|
-
|
-
|
-
|
-
|
(381
|
)
|
(314
|
)
|
(695
|
)
|
-
|
-
|
|||||||||||||||||||||||||||
Adjusted operating expenses
|
65,113
|
69,277
|
134,390
|
64,156
|
13,918
|
72,563
|
61,151
|
133,714
|
34,711
|
10,194
|
||||||||||||||||||||||||||||||
Adjusted operating income (loss)
|
10,225
|
410
|
10,635
|
7,479
|
1,370
|
767
|
(773
|
)
|
(6
|
)
|
(349
|
)
|
1,300
|
|||||||||||||||||||||||||||
Adjusted operating ratio
|
86.4
|
%
|
99.4
|
%
|
92.7
|
%
|
89.6
|
%
|
91.0
|
%
|
99.0
|
%
|
101.3
|
%
|
100.0
|
%
|
101.0
|
%
|
88.7
|
%
|
||||||||||||||||||||
Six Months Ended June 30,
|
||||||||||||||||||||||||||||||||||||||||
GAAP Presentation |
2021 |
2020 | ||||||||||||||||||||||||||||||||||||||
Expedited
|
Dedicated
|
Combined Truckload
|
Managed Freight
|
Warehousing
|
Expedited
|
Dedicated
|
Combined Truckload
|
Managed Freight
|
Warehousing
|
|||||||||||||||||||||||||||||||
Total revenue
|
$
|
165,849
|
$
|
157,314
|
$
|
323,163
|
$
|
123,032
|
$
|
31,018
|
$
|
165,938
|
$
|
147,728
|
$
|
313,666
|
$
|
65,099
|
$
|
23,737
|
||||||||||||||||||||
Total operating expenses
|
149,413
|
$
|
159,304
|
$
|
308,717
|
$
|
110,771
|
$
|
28,882
|
$
|
180,334
|
$
|
162,446
|
$
|
342,780
|
$
|
68,045
|
$
|
22,081
|
|||||||||||||||||||||
Operating income (loss)
|
$
|
16,436
|
$
|
(1,990
|
)
|
$
|
14,446
|
$
|
12,261
|
$
|
2,136
|
$
|
(14,396
|
)
|
$
|
(14,718
|
)
|
$
|
(29,114
|
)
|
$
|
(2,946
|
)
|
$
|
1,656
|
|||||||||||||||
Operating ratio
|
90.1
|
%
|
101.3
|
%
|
95.5
|
%
|
90.0
|
%
|
93.1
|
%
|
108.7
|
%
|
110.0
|
%
|
109.3
|
%
|
104.5
|
%
|
93.0
|
%
|
||||||||||||||||||||
Non-GAAP Presentation
|
||||||||||||||||||||||||||||||||||||||||
Total revenue
|
$
|
165,849
|
$
|
157,314
|
$
|
323,163
|
$
|
123,032
|
$
|
31,018
|
$
|
165,938
|
$
|
147,728
|
$
|
313,666
|
$
|
65,099
|
$
|
23,737
|
||||||||||||||||||||
Fuel surcharge revenue
|
(21,240
|
)
|
(23,038
|
)
|
$
|
(44,278
|
)
|
-
|
(299
|
)
|
(15,630
|
)
|
(17,478
|
)
|
(33,108
|
)
|
-
|
(248
|
)
|
|||||||||||||||||||||
Freight revenue (total revenue, excluding fuel surcharge)
|
144,609
|
134,276
|
278,885
|
123,032
|
30,719
|
150,308
|
130,250
|
280,558
|
65,099
|
23,489
|
||||||||||||||||||||||||||||||
Total operating expenses
|
149,413
|
159,304
|
308,717
|
110,771
|
28,882
|
180,334
|
162,446
|
342,780
|
68,045
|
22,081
|
||||||||||||||||||||||||||||||
Adjusted for:
|
||||||||||||||||||||||||||||||||||||||||
Fuel surcharge revenue
|
(21,240
|
)
|
(23,038
|
)
|
(44,278
|
)
|
-
|
(299
|
)
|
(15,630
|
)
|
(17,478
|
)
|
(33,108
|
)
|
-
|
(248
|
)
|
||||||||||||||||||||||
Amortization of intangibles (2)
|
-
|
(1,202
|
)
|
(1,202
|
)
|
(326
|
)
|
(776
|
)
|
-
|
(1,575
|
)
|
(1,575
|
)
|
(306
|
)
|
(912
|
)
|
||||||||||||||||||||||
Bad debt expense associated with customer bankruptcy and high credit risk customers
|
-
|
-
|
-
|
-
|
-
|
(985
|
)
|
(854
|
)
|
(1,839
|
)
|
(778
|
)
|
-
|
||||||||||||||||||||||||||
Strategic restructuring adjusting items:
|
||||||||||||||||||||||||||||||||||||||||
Insurance policy erosion
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Gain on disposal of terminals, net
|
-
|
-
|
-
|
-
|
-
|
3,060
|
2,652
|
5,712
|
-
|
-
|
||||||||||||||||||||||||||||||
Impairment of real estate and related tangible assets
|
-
|
-
|
-
|
-
|
-
|
(442
|
)
|
(383
|
)
|
(825
|
)
|
-
|
-
|
|||||||||||||||||||||||||||
Impairment of revenue equipment and related charges
|
-
|
-
|
-
|
-
|
-
|
(13,036
|
)
|
(11,297
|
)
|
(24,333
|
)
|
(2,236
|
)
|
-
|
||||||||||||||||||||||||||
Restructuring related severance and other
|
-
|
-
|
-
|
-
|
-
|
(960
|
)
|
(831
|
)
|
(1,791
|
)
|
-
|
-
|
|||||||||||||||||||||||||||
Abandonment of information technology infrastructure
|
-
|
-
|
-
|
-
|
-
|
(561
|
)
|
(487
|
)
|
(1,048
|
)
|
-
|
-
|
|||||||||||||||||||||||||||
Contract exit costs and other restructuring
|
-
|
-
|
-
|
-
|
-
|
(372
|
)
|
(323
|
)
|
(695
|
)
|
-
|
-
|
|||||||||||||||||||||||||||
Adjusted operating expenses
|
128,173
|
135,064
|
263,237
|
110,445
|
27,807
|
151,408
|
131,870
|
283,278
|
64,725
|
20,921
|
||||||||||||||||||||||||||||||
Adjusted operating income (loss)
|
16,436
|
(788
|
)
|
15,648
|
12,587
|
2,912
|
(1,100
|
)
|
(1,620
|
)
|
(2,720
|
)
|
374
|
2,568
|
||||||||||||||||||||||||||
Adjusted operating ratio
|
88.6
|
%
|
100.6
|
%
|
94.4
|
%
|
89.8
|
%
|
90.5
|
%
|
100.7
|
%
|
101.2
|
%
|
101.0
|
%
|
99.4
|
%
|
89.1
|
%
|
||||||||||||||||||||
(1) Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP operating income and
operating ratio to consolidated non-GAAP Adjusted operating income and Adjusted operating ratio.
|
||||||||||||||||||||||||||||||||||||||||
(2) "Amortization of intangibles" reflects the non-cash amortization expense relating to intangible assets.
|
Document and Entity Information |
Jul. 21, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Jul. 21, 2021 |
Entity Registrant Name | COVENANT LOGISTICS GROUP, INC. |
Entity Incorporation, State or Country Code | NV |
Entity File Number | 000-24960 |
Entity Tax Identification Number | 88-0320154 |
Entity Address, Address Line One | 400 Birmingham Hwy |
Entity Address, City or Town | Chattanooga |
Entity Address, State or Province | TN |
Entity Address, Postal Zip Code | 37419 |
City Area Code | 423 |
Local Phone Number | 821-1212 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000928658 |
Title of 12(b) Security | $0.01 Par Value Class A common stock |
Trading Symbol | CVLG |
Security Exchange Name | NASDAQ |
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