Celadon Group Inc. reported profits for the second quarter of 2012, with net income of $9.0 million, up from $5.5 million in the same period in 2011. Revenue increased 4.0% to $157.5 million in the 2012 quarter from $151.2 million in the 2011 quarter, according to the company.
CGI's operating ratio, operating expenses as a percentage of revenue excluding fuel surcharge, for the second quarter was 87.2%, which is 3.7% less than the 90.9% rate in the second quarter of June 2011. The company said its operating ratio was reduced to 90.2% for the 2012 fiscal year compared with 93.4% for the 2011 fiscal year.
Factors CGI attributed to this improvement include an increase of 4.1% in rates, a decrease in overall equipment costs, and a decrease in operations and maintenance expenses. CGI's average tractor age decreased to 1.5 years and its trailers to 2.8 years. To reduce its equipment costs, CGI reduced the number of tractors to trailers it operated to support its existing business levels.
A decease in miles per seated truck of about 4% when compared with 2011 offset the improvements noted above, which the company said was due to the impact of improved freight selection.
CGI reported that it was able to increase its average seated count by 7.2% due to acquisitions the company made during the year. This gives CGI more capacity that will allow it to increase miles as fleets exit the market and position the company to take advantage of business opportunities as the economic freight market imp
Lastly, the company stated that its EBITDA increased $3.2 million, or 13.2%, to $27.4 million when compared with the second quarter of 2011. This increase in cash flow will allow the company to execute on its growth strategy, according to CGI.
CGI's operating ratio, operating expenses as a percentage of revenue excluding fuel surcharge, for the second quarter was 87.2%, which is 3.7% less than the 90.9% rate in the second quarter of June 2011. The company said its operating ratio was reduced to 90.2% for the 2012 fiscal year compared with 93.4% for the 2011 fiscal year.
Factors CGI attributed to this improvement include an increase of 4.1% in rates, a decrease in overall equipment costs, and a decrease in operations and maintenance expenses. CGI's average tractor age decreased to 1.5 years and its trailers to 2.8 years. To reduce its equipment costs, CGI reduced the number of tractors to trailers it operated to support its existing business levels.
A decease in miles per seated truck of about 4% when compared with 2011 offset the improvements noted above, which the company said was due to the impact of improved freight selection.
CGI reported that it was able to increase its average seated count by 7.2% due to acquisitions the company made during the year. This gives CGI more capacity that will allow it to increase miles as fleets exit the market and position the company to take advantage of business opportunities as the economic freight market imp
Lastly, the company stated that its EBITDA increased $3.2 million, or 13.2%, to $27.4 million when compared with the second quarter of 2011. This increase in cash flow will allow the company to execute on its growth strategy, according to CGI.
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