Covenant Transportation Group, Chattanooga, Tenn., said total revenue decreased 0.5 percent, to $175.8 million from $176.7 million in the same quarter of 2006. Freight revenue, which excludes fuel surcharges,
increased 3 percent, to $148.5 million in the 2007 quarter from $144.1 million in the 2006 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 experienced a net loss of $3.6 million, or 25 cents per share, in the 2007 quarter compared with net income of $795,000, or 6 cents per share, for the third quarter of 2006.
For the nine months ended Sept. 30, total revenue increased 4.4 percent, to $519.6 million in 2007 from $497.5 million during 2006. Freight revenue increased 7.3 percent, to $443.1 million in 2007 from $412.9 million in 2006. The company generated a net loss of $16.9 million, or $1.21 per share for the 2007 period, compared with a net loss of $487,000, or 3 cents per share for the 2006 period.
Chairman, President and Chief Executive Officer David R. Parker said, "Regarding the freight market, similar to last year, we did not see the typical peak shipping period that usually begins in August. The third quarter freight market reflected a sustained decline in truck tonnage and numerous requests for bid packages. Average freight revenue per tractor per week, our main measure of asset productivity, declined to $3,054, a sequential decline of 0.9 percent compared with the second quarter of 2007 and 2.2% below the third quarter of 2006. The decline from the third quarter of 2006 reflected a combination of a 2.4 percent decrease in average miles per tractor, slightly offset by a 0.2 percent increase in average freight revenue per total mile. The lackluster freight environment continued to impact every subsidiary and service offering."