Celadon Profit Drops Despite Additional Revenue
October 28, 2013
Long-haul truckload service provider, Celadon Group reports revenue for the third quarter of this year increased 14.2% to $175.1 million from $153.3 million during the same time in 2012 while net income decreased 20.5% to $6.6 million from $8.3 million during the same time
Freight revenue, which excludes fuel surcharges, increased 16.3% to $142 million from $122.1 million in the 2013 quarter for the Indiana-based fleet.
The increase in average seated tractor count of 288, or 10.5%, to 3,024 in the September 2013 quarter compared with 2,736 a year ago was a significant operating improvement that resulted in increased revenue for the quarter, said Paul Will, president and CEO.
“This increase was a result of expanding our recruiting efforts at terminal locations, having established a driving school and training program at our Indianapolis headquarters as well as the acquisition of select assets and liabilities of Houg Special Services, based in Commerce City, Colo.; Land Span, based in Lakeland, Fla.; TCI Logistics, based in Kernersville, N.C.; and Hoss Cartage and Distribution, based in Ayr, Ontario, Canada, which were all completed in the back half of the September 2013 quarter,” he said
The business generated from these acquisitions should help Celadon continue to add truck capacity and density in current operating lanes, while benefiting from future operating synergies over time, said Will.
Celadon reports revenue per tractor per week increased $14, or 0.5%, to $2,913 in the September 2013 quarter, from $2,899 in the September 2012 quarter. Average revenue per loaded mile increased to $1.597 per mile in the September 2013 quarter from $1.562 in the September 2012 quarter.
“The average age of the Company’s tractor fleet was 1.4 years as of September 2013 and the average age of the trailer fleet was 2.4 years as of September 2013,” said Will. “Gains on sales of assets were $1.2 million in the September 2013 quarter compared with $1.9 million in the September 2012 quarter.
More information about Celadon’s third-quarter performance is on its website.