Covenant Transport Inc. (Nasdaq: CVTI), Chattanooga, Tenn., announced financial and operating results for the quarter ended March 31, 2005.

According to the company, the results were consistent with the company's announcement on March 23, 2005.
Revenue was $137.9 million in the 2005 quarter and $137.7 million in the 2004 quarter. Freight revenue, before fuel surcharges, was $123.6 million in the 2005 quarter and $130.6 million in the 2004 quarter. The company experienced a net loss of approximately $649,000, or ($.04) per diluted share, in the 2005 quarter compared with a net income of $721,000, or $.05 per diluted share, for the first quarter of 2004.
Chairman, President, and Chief Executive Officer David R. Parker stated: "Our results for the quarter were consistent with the guidance we gave last month. Softer than expected freight demand impacted both the average miles per tractor and our ability to obtain the level of rate increases we originally expected. These factors outweighed a pretty good quarter from a cost standpoint."
"During the quarter, we continued to shift our fleet capacity toward shorter lengths of haul. Our average length of haul was 907 miles in the first quarter of 2005 compared with 1,007 in the first quarter of 2004. This shift contributed to higher average freight revenue per loaded mile, a decrease in average miles per tractor, and an increase in our percentage of non-revenue miles. As a result, our average freight revenue per tractor per week was essentially constant at $2,769 in the first quarter of 2005 and $2,749 in the first quarter of 2004. We also reduced our fleet size by almost five percent, mostly as a result of owner-operator attrition.
"Freight demand has improved somewhat since the second half of March, but it is still not robust. We are achieving rate increases on a customer and lane-specific basis and on certain new business, but not as broadly or at the levels we achieved during the second half of 2004. Although we still expect a seasonal increase in freight demand as the year progresses, recent economic data has cast some doubt on the level of growth in the overall economy. If demand does not increase relatively soon, our goal of improving our operating ratio in 2005 compared with 2004 will be difficult to achieve."
For more information, go to www.covenanttransport.com.