Covenant Transportation Group said it expects to see positive earnings in the second quarter on improvements in freight rates, miles per truck, internal revenue generation initiatives, and cost cutting measures.
"After reviewing preliminary financial and operating information through the third week of June, we expect to report consolidated results of operations in a range of 12 to 20 cents diluted earnings per share for the second quarter of 2010," said David R. Parker, chairman, president and CEO. In comparison, the company reported a net loss of 22 cents a share for the second quarter of 2009.
Parker said Covenant expects to see a 7 to 8 percent improvement in average miles per tractor as well as a 3 percent boost in average revenue per total mile from the year-ago quarter.
"In addition, our cost control efforts are expected to provide positive results, primarily in the areas of net fuel, compensation, and general expenses, offset somewhat by higher claims expense," he said. "The expected higher claims expense relates primarily to adverse developments regarding the damages in connection with a few casualty claims incurred prior to the beginning of this quarter. Based on our financial and operating results to date, we will be in compliance with our financial debt covenant at the quarter ended June 30, 2010."
The company also rolled out a new investor website at www.ctginvestor.com, in an effort to promote its brand and better communicate with investors and the analyst community. The new website offers improved functionality and features that allow users to obtain a better understanding of the company's strategic vision.
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