Celadon Group Inc. said its revenue increased 12.5 percent in the fourth quarter, to $120.3 million from $106.9 million in the 2004 quarter.

Freight revenue, which excludes fuel surcharges, was up 5.9 percent, to $102.9 million from $97.2 million in the 2004 quarter. Net income increased 71.4 percent, to $4.8 million from $2.8 million for the 2004 quarter year. Earnings per diluted share improved by 70.4 percent, to $0.46 from $0.27 for the 2004 quarter. The December quarter marked the highest quarterly net income and earnings per share for a quarter in the history of the company.
For the six months ended December 31, 2005, revenue increased 12.7 percent, to $238.2 million from $211.3 million for the same period last year. Freight revenue was up 5.5 percent, to $206.2 million from $195.5 million for the same period last year. Net income increased 72.7 percent, to $9.5 million from $5.5 million for the same period last year.
Chairman and CEO Steve Russell said, “Celadon produced record revenue, net income, and earnings per diluted share in the December 2005 quarter on strong operating results across nearly all measures. Average revenue per tractor per week, excluding fuel surcharge, our main measure of asset productivity, improved by 4.6 percent, to $2,956 from $2,826, as a result of higher rates per mile. Our average revenue per loaded mile, excluding fuel surcharge, increased by 5.7 percent, to $1.49 from $1.41, while average revenue per total mile, excluding fuel surcharge, improved 4.6 percent, to $1.37 from $1.31. Our operating ratio (defined as operating expenses, net of fuel surcharge, as a percentage of freight revenue) improved from 94.6 percent to 92.4 percent.
“Our results for the quarter were assisted by a favorable relationship between freight demand and truckload capacity. We believe capacity growth in our industry continues to be constrained by a shortage of qualified drivers. We address the driver shortage by recruiting safe and experienced drivers, providing newer equipment, and offering competitive compensation and lifestyle programs. We believe our continued commitment to the quality of life of our drivers helps keep our trucks seated with drivers, lowers our costs, improves customer service, and contributes to improved safety for the driving public. Two areas where our focus is evident are safety and driver turnover. We were recently notified by the Truckload Carriers Association that Celadon is one of three finalists for the award to the safest large fleet in America for 2005. We previously won the award in 2002 and 2004.
"Also, for the December quarter, our annualized driver turnover was approximately 70 percent, compared with an industry average of 135 percent published by the American Trucking Associations.”