The second quarter 2010 results for Covenant Transportation Group indicate that the truckload carrier has returned to profitability, with net income of $2.9 million, or 20 cents a share.
In the 2009 quarter, Covenant posted a net loss of $3.1 million, or 22 cents a share.
The Chattanooga, Tenn.-based company said revenue was up 17.3 percent to $169 million from $144.1 million in the same quarter of 2009. Freight revenue increased 9.4 percent to $141.4 million, compared to $129.2 million in the 2009 period.
"The second quarter of 2010 marked our best financial and operating performance in several years," said David R. Parker, chairman, president, and CEO. "A favorable and strengthening freight market afforded us the opportunity to capitalize on our improved operations and increase equipment utilization. In addition, we began to see the rate improvements that must come to sustain the long-term health of our industry."
Within its asset-based business, revenue was $25.7 million, a 19.4 percent gain over the same quarter of 2009.
"While we are encouraged and optimistic about the future, we also recognize that one quarter's performance does not mean the hard work is over," Parker said. "With the pace of economic growth uncertain and the driver market tightening, we intend to remain focused on improving the productivity of our existing fleet, operating efficiently, and positioning our company for long term success."
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