Covenant Profit Doubles During Second Quarter
July 24, 2014
The parent to trucking operations, Covenant Transport and others, doubled its profit in the second quarter of the year.
Tennessee-based Covenant Transportation Group said net income totaled $3.8 million, or 25 cents per share, compared with net income of $1.9 million, or 13 cents per share in the second quarter of 2013 while total revenue was $173.7 million, an increase of 0.7% during the same time.
"For the quarter, total revenue in our asset‑based operations decreased to $160.3 million, a decrease of $1.5 million compared with the second quarter of 2013. This decrease consisted of lower freight revenue of $1 million, along with lower fuel surcharge revenue of $500,000,” said Chairman, President, and CEO David R. Parker. “The $1 million decrease in freight revenue related to a 7.8% decrease in our average tractor fleet, partially offset by a 6.8% increase in average freight revenue per tractor per week and a $900,000 increase of freight revenue contributed from our refrigerated intermodal service offering.”
Parker said during this quarter, the company’s average tractor fleet had 2,569 trucks in April, 2,561 trucks in May and 2,570 trucks in June.
Average freight revenue per tractor per week increased to $3,664 during the 2014 quarter from $3,431 during the 2013 quarter. Average freight revenue per total mile increased by 7.6 cents per mile, or 5.2% compared to the 2013 quarter on an approximately 8.5% increase in average length of haul. Average miles per unit increased by 1.5%.
“The main factors impacting the improved utilization were a 220 basis point increase in the percentage of our fleet comprised of team-driven tractors and a tighter overall freight network, partially offset by the more stringent hours of service regulations imposed in July 2013 and a slightly lower seated truck percentage,” Parker said. “On average, approximately 4.7% of our fleet lacked drivers during the 2014 quarter compared with approximately 4.3% during the 2013 quarter.”