Celadon Group Inc., Indianapolis, said revenue for the three months ending June 30 increased about 10% to $117.0 million from $106.3 million in the 2004 quarter.

Freight revenue, excluding fuel surcharges, was up 4.1% to $105 million in the 2005 quarter from $100.9 million in the 2004 quarter. Net income increased over 80% to $4.3 million in the 2005 quarter from $2.4 million for the same quarter last year.
Diluted earnings per share improved over 60% to $0.42 in the 2005 quarter from $0.26 for the same quarter last year, despite a 13.1% increase in weighted average diluted shares outstanding resulting primarily from the company’s May 2004 stock offering. The June quarter marked the best earnings per share in the history of the company.
For the full year, revenue increased 9.8%, to $436.8 million from $397.9 million for the prior year. During fiscal year 2004, the company recognized a $6.9 million or $0.86 per diluted share non-cash, after-tax impairment charge related to used trailers. Net income for the 2005 fiscal year was $12.6 million, or $1.23 per diluted share, compared with a net loss, including the impairment charge, of $0.3 million, or $0.03 per diluted share, for the prior year.
Chairman and CEO Steve Russell said, “The June quarter reflected accelerating success of our programs initiated over four years ago to execute on our strategic plan. The plan was designed to enhance profitability through improving our freight mix and revenue yield, diversifying our customer base, upgrading our revenue equipment fleet, and emphasizing discipline in all aspects of our operations. Continued strengthening of our customer base, enhanced driver satisfaction levels, steadily increasing average rates per mile, improved equipment age and further strengthening of cost controls resulted in an increase of over 80% in our quarterly net income. Pre-tax earnings as a percent of freight revenue increased to 6.8% from 4.3%.