Covenant Transport Inc. announced financial and operating results for the quarter ended March 31, 2007, and reported a proposed name change for the Nevada-based holding company from Covenant Transport Inc. to Covenant Transportation Group Inc.

For the quarter, total revenue increased 9.8 percent, to $166.4 million from $151.5 million in the same quarter of 2006. Freight revenue, which excludes fuel surcharges, increased 10.9 percent, to $143.5 million in the 2007 quarter from $129.4 million in the 2006 quarter. The company experienced a net loss of $2.1 million, or ($.15) per share, in the 2007 quarter compared with a net loss of $884,000, or ($.06) per share, for the first quarter of 2006.
Chairman, President, and Chief Executive Officer David R. Parker said, "During the first quarter we continued to implement major actions in pursuit of our business realignment. Some of these actions had negative effects on the quarter and, when combined with a weak freight market and unusually severe winter weather, produced disappointing results. Nevertheless, we are seeing signs of operational improvement and remain committed to building the right foundation for the longer term.
"From a revenue perspective, the first quarter freight market featured a decline in truck tonnage and numerous requests for bid packages from customers. In addition, harsh weather throughout the month of February and early March resulted in lost revenue opportunities and increased expenses as large portions of our fleet were idled at certain times. Despite those challenges, Covenant was able to increase average freight revenue per tractor per week by 1.8 percent, to $2,992 in the 2007 quarter versus $2,938 in the 2006 quarter. The improvement reflected a combination of a 1.2 percent increase in average miles per tractor and a 0.8 percent increase in average freight revenue per total mile. We believe the major reasons for the increase in miles were an increase in the percentage of our fleet manned with drivers, due to a combination of greater driver supply and lower driver turnover, and a more efficient network in our OTR/Regional service offering. In addition, an increase in volume from freight brokers increased our average freight revenue per mile, because fuel surcharges are not separately stated in broker rates and are instead included in revenue per mile."