Covenant Transport Inc. said that for the second quarter, total revenue increased 8 percent, to $169.4 million from $156.8 million in the same quarter of 2005.
Freight revenue, which excludes fuel surcharges, was essentially flat at $139.3 million in the 2006 quarter and $138.7 million in the 2005 quarter. The company measures freight revenue because management believes that fuel surcharges tend to be a volatile source of revenue and the removal of such surcharges affords a more consistent basis for comparing results of operations from period to period. The company reported a net loss of $398,000, or $.03 per share, compared to net income of $652,000, or $.05 per share, for the second quarter of 2005.
For the six months ended June 30, total revenue increased 8.9 percent, to $320.9 million from $294.7 million during 2005. Freight revenue increased 2.5 percent, to $268.8 million in 2006 from $262.3 million in 2005. The Company generated a net loss of $1.3 million, or $.09 per share, compared with a $3,000 profit for the same period of 2005.
Chairman, President and Chief Executive Officer David R. Parker said, "From a freight standpoint, the second quarter started slow and gained momentum. April was soft, May was good, and June was really strong. Average freight revenue per tractor per week, which is our main measure of asset productivity, improved 5.0 percent, to $3,109 from $2,961 in the second quarter of 2005.
“On a consolidated basis, average miles per tractor improved 4.3 percent and average freight revenue per total mile improved 0.7 percent. Average freight revenue per loaded mile was flat with last year at approximately $1.50 per mile, while non-revenue miles percentage improved. In general, the changes in freight mix as a result of the business realignment expanded the portions of our business with longer lengths of haul, more miles per tractor, and generally lower rate structures, while shrinking the regional service offering, which had the highest rate structure but significantly lower miles per tractor.
Salaries and benefits increased as a result of a $.01 per mile increase in driver pay in the second half of 2005, an increase in the percentage of the fleet comprised of company drivers versus owner-operators, and higher health claim costs. Fuel costs, net of surcharge on company truck miles, actually improved versus last year despite a substantial increase in fuel prices. Improved collection of surcharges, better fuel economy due to lower idle time, and less non-revenue miles contributed to the improvement. Gains on disposition were approximately $1.0 million higher than the same quarter last year.”
Freight revenue, which excludes fuel surcharges, was essentially flat at $139.3 million in the 2006 quarter and $138.7 million in the 2005 quarter. The company measures freight revenue because management believes that fuel surcharges tend to be a volatile source of revenue and the removal of such surcharges affords a more consistent basis for comparing results of operations from period to period. The company reported a net loss of $398,000, or $.03 per share, compared to net income of $652,000, or $.05 per share, for the second quarter of 2005.
For the six months ended June 30, total revenue increased 8.9 percent, to $320.9 million from $294.7 million during 2005. Freight revenue increased 2.5 percent, to $268.8 million in 2006 from $262.3 million in 2005. The Company generated a net loss of $1.3 million, or $.09 per share, compared with a $3,000 profit for the same period of 2005.
Chairman, President and Chief Executive Officer David R. Parker said, "From a freight standpoint, the second quarter started slow and gained momentum. April was soft, May was good, and June was really strong. Average freight revenue per tractor per week, which is our main measure of asset productivity, improved 5.0 percent, to $3,109 from $2,961 in the second quarter of 2005.
“On a consolidated basis, average miles per tractor improved 4.3 percent and average freight revenue per total mile improved 0.7 percent. Average freight revenue per loaded mile was flat with last year at approximately $1.50 per mile, while non-revenue miles percentage improved. In general, the changes in freight mix as a result of the business realignment expanded the portions of our business with longer lengths of haul, more miles per tractor, and generally lower rate structures, while shrinking the regional service offering, which had the highest rate structure but significantly lower miles per tractor.
Salaries and benefits increased as a result of a $.01 per mile increase in driver pay in the second half of 2005, an increase in the percentage of the fleet comprised of company drivers versus owner-operators, and higher health claim costs. Fuel costs, net of surcharge on company truck miles, actually improved versus last year despite a substantial increase in fuel prices. Improved collection of surcharges, better fuel economy due to lower idle time, and less non-revenue miles contributed to the improvement. Gains on disposition were approximately $1.0 million higher than the same quarter last year.”
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