Covenant Revenues Up, 4th Quarter Charge Hits Earnings
Truckload carrier Covenant Transport Inc., Chattanooga, Tenn., announced its financial and operating results for the fourth quarter and year ended Dec. 31, 2004
Truckload carrier Covenant Transport Inc., Chattanooga, Tenn., announced its financial and operating results for the fourth quarter and year ended Dec. 31, 2004.
For the quarter, total revenue increased 7.9%, to $164.2 million from $152.2 million in the same quarter of 2003. Freight revenue, which excludes fuel surcharges, increased 1.1%, to $147.2 million in the 2004 quarter from $145.5 million in the 2003 quarter.
The company experienced a net loss of $6.5 million, or $0.44 per diluted share, for the quarter compared with net income of $4.1 million, or $0.28 per diluted share, for the same quarter of 2003.
The results include an after-tax charge of $12.2 million, or $0.82 per diluted share, in the fourth quarter of 2004. The charge relates to an increase in the company's estimated liability for casualty and workers' compensation claims and follows the completion of a previously announced actuarial review of the company's claims reserves.
Excluding the increase to claims reserves, net income for the quarter was $5.8 million, or $0.39 per diluted share, compared with a range of $0.30 to $0.34 per share guidance previously announced by the company.
For the year, total revenue increased 3.6%, to $603.6 million from $582.5 million during 2003. Freight revenue increased 0.5%, to $558.5 million in 2004 from $555.7 million in 2003. The company generated net income of $3.4 million, or $0.23 per diluted share, for the year compared with $12.2 million, or $0.83 per diluted share, for 2003. Excluding the increase to claims reserves, net income for the year was $15.6 million, or $1.05 per diluted share.
Chairman, President and CEO David R. Parker made the following comments on the company's financial and operating results: "Although the increase to our claims reserves that we announced today was significant, it should not overshadow the momentum in our business that continued during the fourth quarter. Excluding the adjustment, we posted our best margins and highest earnings per diluted share since the fourth quarter of 1999.”
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