Covenant Transport Inc., Chattanooga, Tenn., said total revenue increased 4.4 percent, to $186.3 million for the quarter from $178.4 million in the same quarter of 2005.
Freight revenue, which excludes fuel surcharges, increased 7.3 percent to $159.3 million from $148.4 million in the 2005 quarter. The company reported a net loss of $894,000 or ($.06) per share, compared to net income of $4.0 million, or $.28 per share, for the fourth quarter of 2005.
For the year ended Dec. 31, total revenue increased 6.3 percent, to $683.8 million from $643.1 million during 2005. Freight revenue increased 3 percent, to $572.2 million in 2006 from $555.4 million in 2005. The company generated a net loss of $1.4 million, or ($.10) per share, compared with net income of $5.2 million, or $.37 per share for 2005.
Chairman, President, and Chief Executive Officer David R. Parker said, “The main factor affecting the quarter was the lack of the normal peak shipping season. Demand during the quarter was much less than expected, especially when compared to the strong fourth quarter of 2005. From an operating standpoint, average miles per tractor decreased 2.5 percent versus the fourth quarter of 2005. Even though our rate per loaded mile was up 1.6 percent versus the third quarter of 2006, pricing for spot market and surge business was not as robust as in the past, and our rates were down 1 percent versus the fourth quarter of 2005. The combination of lower rates and utilization produced a 4.0 percent reduction in average freight revenue per tractor per week.”
Freight revenue, which excludes fuel surcharges, increased 7.3 percent to $159.3 million from $148.4 million in the 2005 quarter. The company reported a net loss of $894,000 or ($.06) per share, compared to net income of $4.0 million, or $.28 per share, for the fourth quarter of 2005.
For the year ended Dec. 31, total revenue increased 6.3 percent, to $683.8 million from $643.1 million during 2005. Freight revenue increased 3 percent, to $572.2 million in 2006 from $555.4 million in 2005. The company generated a net loss of $1.4 million, or ($.10) per share, compared with net income of $5.2 million, or $.37 per share for 2005.
Chairman, President, and Chief Executive Officer David R. Parker said, “The main factor affecting the quarter was the lack of the normal peak shipping season. Demand during the quarter was much less than expected, especially when compared to the strong fourth quarter of 2005. From an operating standpoint, average miles per tractor decreased 2.5 percent versus the fourth quarter of 2005. Even though our rate per loaded mile was up 1.6 percent versus the third quarter of 2006, pricing for spot market and surge business was not as robust as in the past, and our rates were down 1 percent versus the fourth quarter of 2005. The combination of lower rates and utilization produced a 4.0 percent reduction in average freight revenue per tractor per week.”
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