Celadon Group Inc. reported revenue for the three months ended June 30, 2006, increased 8.3 percent to $126.7 million in the 2006 quarter from $117.0 million in the 2005 quarter.

Freight revenue, excluding fuel surcharges, was up 2.3 percent to $107.4 million in the 2006 quarter from $105.0 million in the 2005 quarter. Net income increased 49 percent to $6.4 million in the 2006 quarter from $4.3 million for the same quarter last year. Diluted earnings per share improved over 42 percent to $0.27 in the 2006 quarter from $0.19 for the same quarter last year. The June quarter marked the best earnings per share in the history of the company.
For the full year, revenue increased 9.9 percent to $480.2 million from $436.8 million for the prior year. Freight revenue, excluding fuel surcharges, was up 3.7 percent to $414.5 million for the 2006 fiscal year from $399.7 million in the 2005 fiscal year. Net income for the 2006 fiscal year was $20.5 million, or $0.88 per diluted share, compared with $12.6 million, or $0.55 per diluted share, for the prior year, or an increase of 60 percent.
Chairman and CEO Steve Russell said, "The June quarter reflected accelerating success of the programs we initiated over four years ago to execute our strategic plan. Continued strengthening of our customer base, enhanced driver satisfaction, steadily increasing average rates per mile, improved equipment age, and further strengthening of cost controls resulted in obtaining our interim goal of an operating ratio (defined as operating expenses, excluding fuel surcharge, as a percentage of freight revenue) of 90 percent.
“Operating ratio improved to 90.3 percent in the June 2006 quarter, from 92.9 percent in the prior year's June quarter. Net income increased by 49 percent to $6.4 million from $4.3 million, and pre-tax earnings as a percent of freight revenue increased to 9.5 percent from 6.8% in the June 2005 quarter.