[ X ]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
13-3361050
|
(State or other jurisdiction of
|
(IRS Employer
|
incorporation or organization)
|
Identification No.)
|
9503 East 33rd Street
|
|
One Celadon Drive
|
|
Indianapolis, IN
|
46235-4207
|
(Address of principal executive offices)
|
(Zip Code)
|
(Registrant's telephone number, including area code): (317) 972-7000
|
Yes [X] No [ ]
|
Large accelerated filer [ ]
|
Accelerated filer [X]
|
Non-accelerated filer [ ]
|
Yes [ ] No [X]
|
Part I.
|
Financial Information
|
||
Item 1.
|
Financial Statements
|
||
Condensed Consolidated Statements of Income for the three and six months ended December 31, 2015 and 2014 (Unaudited)
|
|||
Condensed Consolidated Statements of Comprehensive Income for the three and six months ended December 31, 2015 and 2014 (Unaudited)
|
|||
Condensed Consolidated Balance Sheets at December 31, 2015 (Unaudited) and June 30, 2015
|
|||
Condensed Consolidated Statements of Cash Flows for the six months ended December 31, 2015 and 2014 (Unaudited)
|
|||
Notes to Condensed Consolidated Financial Statements (Unaudited)
|
|||
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
||
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
||
Item 4.
|
Controls and Procedures
|
||
Part II.
|
Other Information
|
||
Item 1.
|
Legal Proceedings
|
||
Item 1A.
|
Risk Factors
|
||
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
||
Item 3.
|
Defaults Upon Senior Securities
|
||
Item 4
|
Mine Safety Disclosures
|
||
Item 5.
|
Other Information
|
||
Item 6.
|
Exhibits
|
Three months ended
|
Six months ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
OPERATING REVENUE:
|
||||||||||||||||
Freight revenue
|
$ | 249,311 | $ | 187,205 | $ | 487,123 | $ | 344,909 | ||||||||
Fuel surcharge revenue
|
26,088 | 35,166 | 54,397 | 70,878 | ||||||||||||
Total revenue
|
275,399 | 222,371 | 541,520 | 415,787 | ||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||
Salaries, wages, and employee benefits
|
85,877 | 63,569 | 167,354 | 120,791 | ||||||||||||
Fuel
|
26,688 | 39,199 | 54,416 | 79,184 | ||||||||||||
Purchased transportation
|
93,948 | 58,228 | 182,978 | 101,865 | ||||||||||||
Revenue equipment rentals
|
2,201 | 2,648 | 4,423 | 5,238 | ||||||||||||
Operations and maintenance
|
18,243 | 12,990 | 35,849 | 24,229 | ||||||||||||
Insurance and claims
|
7,709 | 7,221 | 14,637 | 12,898 | ||||||||||||
Depreciation and amortization
|
19,187 | 17,734 | 40,788 | 33,291 | ||||||||||||
Communications and utilities
|
2,611 | 2,097 | 4,955 | 3,927 | ||||||||||||
Operating taxes and licenses
|
5,532 | 3,699 | 10,504 | 7,013 | ||||||||||||
General and other operating
|
4,803 | 3,427 | 9,085 | 6,882 | ||||||||||||
Gain on disposition of equipment
|
(5,479 | ) | (4,010 | ) | (18,721 | ) | (8,568 | ) | ||||||||
Total operating expenses
|
261,320 | 206,802 | 506,268 | 386,750 | ||||||||||||
Operating income
|
14,079 | 15,569 | 35,252 | 29,037 | ||||||||||||
Interest expense
|
3,758 | 2,008 | 6,910 | 3,177 | ||||||||||||
Interest income
|
--- | (3 | ) | --- | (7 | ) | ||||||||||
Other income
|
21 | (36 | ) | 121 | (110 | ) | ||||||||||
Income before income taxes
|
10,300 | 13,600 | 28,221 | 25,977 | ||||||||||||
Income tax expense
|
3,685 | 5,057 | 10,239 | 9,387 | ||||||||||||
Net income
|
$ | 6,615 | $ | 8,543 | $ | 17,982 | $ | 16,590 | ||||||||
Income per common share:
|
||||||||||||||||
Diluted
|
$ | 0.24 | $ | 0.36 | $ | 0.64 | $ | 0.69 | ||||||||
Basic
|
$ | 0.24 | $ | 0.37 | $ | 0.65 | $ | 0.71 | ||||||||
Diluted weighted average shares outstanding
|
27,940 | 23,991 | 27,953 | 23,963 | ||||||||||||
Basic weighted average shares outstanding
|
27,480 | 23,327 | 27,467 | 23,284 |
Three months ended
|
Six months ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Net income
|
$ | 6,615 | $ | 8,543 | $ | 17,982 | $ | 16,590 | ||||||||
Other comprehensive loss:
|
||||||||||||||||
Unrealized gain (loss) on fuel derivative instruments, net of tax
|
(875 | ) | --- | (1,351 | ) | --- | ||||||||||
Unrealized gain (loss) on currency derivative instruments, net of tax
|
--- | --- | --- | (35 | ) | |||||||||||
Foreign currency translation adjustments, net of tax
|
(4,829 | ) | (5,715 | ) | (14,260 | ) | (9,567 | ) | ||||||||
Total other comprehensive loss
|
(5,704 | ) | (5,715 | ) | (15,611 | ) | (9,602 | ) | ||||||||
Comprehensive income
|
$ | 911 | $ | 2,828 | $ | 2,371 | $ | 6,988 |
(unaudited)
|
||||||||
December 31,
|
June 30,
|
|||||||
ASSETS
|
2015
|
2015
|
||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 7,728 | $ | 24,699 | ||||
Trade receivables, net of allowance for doubtful accounts of $1,446 and $1,002 at December 31, 2015 and June 30, 2015, respectively
|
135,544 | 130,892 | ||||||
Prepaid expenses and other current assets
|
43,143 | 33,267 | ||||||
Tires in service
|
2,471 | 1,857 | ||||||
Leased revenue equipment held for sale
|
49,298 | 52,591 | ||||||
Revenue equipment held for sale
|
81,016 | 49,856 | ||||||
Income tax receivable
|
15,228 | 17,926 | ||||||
Deferred income taxes
|
6,401 | 7,083 | ||||||
Total current assets
|
340,829 | 318,171 | ||||||
Property and equipment
|
900,051 | 935,976 | ||||||
Less accumulated depreciation and amortization
|
(147,242 | ) | (147,446 | ) | ||||
Net property and equipment
|
752,809 | 788,530 | ||||||
Tires in service
|
2,871 | 2,173 | ||||||
Goodwill
|
58,919 | 55,357 | ||||||
Investment in unconsolidated companies
|
2,000 | --- | ||||||
Other assets
|
11,951 | 11,458 | ||||||
Total assets
|
$ | 1,169,379 | $ | 1,175,689 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 22,747 | $ | 13,699 | ||||
Accrued salaries and benefits
|
14,452 | 16,329 | ||||||
Accrued insurance and claims
|
17,180 | 14,808 | ||||||
Accrued fuel expense
|
8,717 | 10,979 | ||||||
Accrued purchased transportation
|
18,194 | 16,259 | ||||||
Accrued equipment purchases
|
15,264 | 775 | ||||||
Deferred leasing revenue and related liabilities
|
26,828 | 31,872 | ||||||
Other accrued expenses
|
25,550 | 31,835 | ||||||
Current maturities of long-term debt
|
616 | 948 | ||||||
Current maturities of capital lease obligations
|
57,762 | 62,992 | ||||||
Total current liabilities
|
207,310 | 200,496 | ||||||
Long-term debt, net of current maturities
|
127,496 | 133,199 | ||||||
Capital lease obligations, net of current maturities
|
344,541 | 366,452 | ||||||
Other long term liabilities
|
--- | 953 | ||||||
Deferred income taxes
|
120,904 | 108,246 | ||||||
Stockholders' equity:
|
||||||||
Common stock, $0.033 par value, authorized 40,000 shares; issued and outstanding 28,375 and 28,342 shares at December 31, 2015 and June 30, 2015
|
936 | 935 | ||||||
Treasury stock at cost; 500 shares at December 31, 2015 and June 30, 2015
|
(3,453 | ) | (3,453 | ) | ||||
Additional paid-in capital
|
197,194 | 195,682 | ||||||
Retained earnings
|
212,295 | 195,412 | ||||||
Accumulated other comprehensive loss
|
(37,844 | ) | (22,233 | ) | ||||
Total stockholders' equity
|
369,128 | 366,343 | ||||||
Total liabilities and stockholders' equity
|
$ | 1,169,379 | $ | 1,175,689 |
Six months ended
|
||||||||
December 31,
|
||||||||
2015
|
2014
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 17,982 | $ | 16,590 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
40,929 | 33,419 | ||||||
Gain on sale of equipment
|
(18,721 | ) | (8,568 | ) | ||||
Stock based compensation
|
1,458 | 1,334 | ||||||
Deferred income taxes
|
13,715 | 5,437 | ||||||
Provision for doubtful accounts
|
441 | 120 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Trade receivables
|
(635 | ) | 1,781 | |||||
Income taxes
|
2,229 | 3,028 | ||||||
Tires in service
|
(1,373 | ) | 423 | |||||
Prepaid expenses and other current assets
|
(10,238 | ) | (7,531 | ) | ||||
Other assets
|
(6,744 | ) | (56 | ) | ||||
Leased revenue and revenue equipment held for sale
|
(11,948 | ) | (20,362 | ) | ||||
Accounts payable and accrued expenses
|
(4,201 | ) | (3,261 | ) | ||||
Net cash provided by operating activities
|
22,894 | 22,354 | ||||||
Cash flows from investing activities:
|
||||||||
Purchase of property and equipment
|
(67,093 | ) | (72,792 | ) | ||||
Proceeds on sale of property and equipment
|
107,871 | 75,783 | ||||||
Purchase of businesses, net of cash acquired
|
(17,733 | ) | (66,705 | ) | ||||
Net cash provided by (used in) investing activities
|
23,045 | (63,714 | ) | |||||
Cash flows from financing activities:
|
||||||||
Proceeds from bank borrowings and debt
|
499,970 | 346,350 | ||||||
Payments on bank borrowings and debt
|
(506,867 | ) | (255,162 | ) | ||||
Dividends paid
|
(1,098 | ) | (930 | ) | ||||
Principal payments under capital lease obligations
|
(56,299 | ) | (54,760 | ) | ||||
Proceeds from issuance of stock
|
169 | 1,068 | ||||||
Net cash provided by (used in) financing activities
|
(64,125 | ) | 36,566 | |||||
Effect of exchange rates on cash and cash equivalents
|
1,215 | (658 | ) | |||||
Increase/Decrease in cash and cash equivalents
|
(16,971 | ) | (5,451 | ) | ||||
Cash and cash equivalents at beginning of period
|
24,699 | 15,508 | ||||||
Cash and cash equivalents at end of period
|
$ | 7,728 | $ | 10,057 | ||||
Supplemental disclosure of cash flow information:
|
||||||||
Interest paid
|
$ | 6,910 | $ | 3,178 | ||||
Income taxes paid
|
$ | 118 | $ | 5,432 | ||||
Lease obligation incurred in the purchase of equipment
|
$ | 90,406 | $ | 76,102 | ||||
Conversion of capital leases to operating leases
|
$ | 61,248 | $ | --- |
Three months ended
|
Six months ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Weighted average common shares outstanding – basic
|
27,480 | 23,327 | 27,467 | 23,284 | ||||||||||||
Dilutive effect of stock options and unvested restricted stock units
|
460 | 664 | 486 | 679 | ||||||||||||
Weighted average common shares outstanding – diluted
|
27,940 | 23,991 | 27,953 | 23,963 | ||||||||||||
Net income
|
$ | 6,615 | $ | 8,543 | $ | 17,982 | $ | 16,590 | ||||||||
Earnings per common share:
|
||||||||||||||||
Diluted
|
$ | 0.24 | $ | 0.36 | $ | 0.64 | $ | 0.69 | ||||||||
Basic
|
$ | 0.24 | $ | 0.37 | $ | 0.65 | $ | 0.71 |
Three months ended
|
Six months ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Stock compensation expense for options, net of forfeitures
|
$ | 0 | $ | 24 | $ | 0 | $ | 48 | ||||||||
Stock compensation expense for restricted stock, net of forfeitures
|
715 | 590 | 1,462 | 1,286 | ||||||||||||
Total stock compensation expense
|
$ | 715 | $ | 614 | $ | 1,462 | $ | 1,334 |
Options
|
Option Totals
|
Weighted-Average Exercise
Price per Share
|
||||||
Outstanding at July 1, 2015
|
295,789 | $ | 9.47 | |||||
Granted
|
--- | --- | ||||||
Vested and Issued
|
(14,950 | ) | $ | 11.33 | ||||
Forfeited or expired
|
--- | --- | ||||||
Outstanding at December 31, 2015
|
280,839 | $ | 9.37 | |||||
Exercisable at December 31, 2015
|
280,839 | $ | 9.37 |
Number of Restricted Stock Awards
|
Weighted-Average Grant Date Fair Value
|
|||||||
Unvested at July 1, 2015
|
396,366 | $ | 21.13 | |||||
Granted
|
20,442 | $ | 10.42 | |||||
Vested and Issued
|
(35,200 | ) | $ | 16.13 | ||||
Forfeited
|
(2,894 | ) | $ | 19.05 | ||||
Unvested at December 31, 2015
|
378,714 | $ | 21.03 |
Operating Revenues
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Asset-based
|
$ | 236,324 | $ | 200,596 | $ | 467,087 | $ | 377,465 | ||||||||
Asset-light
|
32,943 | 21,775 | 63,539 | 38,322 | ||||||||||||
Equipment leasing and services
|
6,132 | --- | 10,894 | --- | ||||||||||||
Total
|
$ | 275,399 | $ | 222,371 | $ | 541,520 | $ | 415,787 |
Operating Income
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Asset-based
|
$ | 11,471 | $ | 12,853 | $ | 18,953 | $ | 24,102 | ||||||||
Asset-light
|
3,280 | 2,716 | 7,111 | 4,935 | ||||||||||||
Equipment leasing and services
|
(672 | ) | --- | 9,188 | --- | |||||||||||
Total
|
$ | 14,079 | $ | 15,569 | $ | 35,252 | $ | 29,037 |
Operating Revenues
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
United States
|
$ | 241,843 | $ | 184,123 | $ | 474,552 | $ | 337,309 | ||||||||
Canada
|
21,193 | 26,859 | 43,138 | 56,065 | ||||||||||||
Mexico
|
12,363 | 11,389 | 23,830 | 22,413 | ||||||||||||
Consolidated
|
$ | 275,399 | $ | 222,371 | $ | 541,520 | $ | 415,787 |
Capital
Leases
|
Operating
Leases
|
|||||||
2016
|
$ | 66,742 | $ | 15,560 | ||||
2017
|
104,622 | 12,779 | ||||||
2018
|
119,599 | 6,437 | ||||||
2019
|
44,664 | 348 | ||||||
2020
|
24,985 | 333 | ||||||
Thereafter
|
70,630 | 667 | ||||||
Total minimum lease payments
|
$ | 431,242 | $ | 36,124 | ||||
Less amounts representing interest
|
28,939 | |||||||
Present value of minimum lease payments
|
402,303 | |||||||
Less current maturities
|
57,762 | |||||||
Non-current portion
|
$ | 344,541 |
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||||||||||||||||
Balance
|
Balance
|
Balance
|
Balance
|
Balance
|
Balance
|
Balance
|
Balance
|
|||||||||||||||||||||||||
at
|
at
|
at
|
at
|
at
|
at
|
at
|
at
|
|||||||||||||||||||||||||
December
|
June
|
December
|
June
|
December
|
June
|
December
|
June
|
|||||||||||||||||||||||||
31, | 30, | 31, | 30, | 31, | 30, | 31, | 30, | |||||||||||||||||||||||||
2015 | 2015 | 2015 | 2015 | 2015 | 2015 | 2015 | 2015 | |||||||||||||||||||||||||
Foreign currency derivatives
|
$ | --- | $ | --- | $ | --- | $ | --- | $ | --- | $ | --- | $ | --- | $ | --- | ||||||||||||||||
Fuel derivatives
|
(2,161 | ) | --- | --- | --- | (2,161 | ) | --- | --- | --- |
Intangibles
|
||||||||||||
June 30, 2015
|
Current Year Additions
|
December 31, 2015
|
||||||||||
Gross carrying amount
|
$ | 8,096 | $ | --- | $ | 8,096 | ||||||
Accumulated amortization
|
1,048 | 81 | 1,129 | |||||||||
Net carrying amount
|
$ | 7,048 | $ | 81 | $ | 6,967 |
Goodwill
|
||||||||||||
June 30, 2015
|
Current year additions
|
December 31, 2015
|
||||||||||
Asset based
|
$ | 53,989 | $ | 3,562 | $ | 57,551 | ||||||
Asset light
|
$ | 1,368 | $ | --- | $ | 1,368 | ||||||
Total Goodwill
|
$ | 55,357 | $ | 3,562 | $ | 58,919 |
15.
|
Reclassifications and Adjustments
|
·
|
Total revenue increased 23.8% to $275.4 million from $222.4 million;
|
|
·
|
Freight revenue, which excludes fuel surcharges, increased 33.2% to $249.3 million from $187.2 million;
|
|
·
|
Net income decreased 22.4% to $6.6 million from $8.5 million; and
|
|
·
|
Net income per diluted share decreased 33.3% to $0.24 from $0.36, on a 14.6% increase in weighted average diluted shares resulting primarily from the Company's public offering of 3.5 million shares of common stock in May 2015.
|
Three months ended
|
Six months ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Operating revenue
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Operating expenses:
|
||||||||||||||||
Salaries, wages, and employee benefits
|
31.2 | % | 28.6 | % | 30.9 | % | 29.1 | % | ||||||||
Fuel
|
9.7 | % | 17.6 | % | 10.1 | % | 19.0 | % | ||||||||
Purchased transportation
|
34.1 | % | 26.0 | % | 33.8 | % | 24.4 | % | ||||||||
Revenue equipment rentals
|
0.8 | % | 1.2 | % | 0.8 | % | 1.3 | % | ||||||||
Operations and maintenance
|
6.6 | % | 5.8 | % | 6.6 | % | 5.8 | % | ||||||||
Insurance and claims
|
2.8 | % | 3.3 | % | 2.7 | % | 3.1 | % | ||||||||
Depreciation and amortization
|
7.0 | % | 8.0 | % | 7.5 | % | 8.0 | % | ||||||||
Communications and utilities
|
0.9 | % | 0.9 | % | 0.9 | % | 0.9 | % | ||||||||
Operating taxes and licenses
|
2.0 | % | 1.7 | % | 1.9 | % | 1.7 | % | ||||||||
General and other operating
|
1.7 | % | 1.7 | % | 1.7 | % | 1.8 | % | ||||||||
Gain on disposition of equipment
|
(2.0 | %) | (1.8 | %) | (3.4 | %) | (2.1 | %) | ||||||||
Total operating expenses
|
94.8 | % | 93.0 | % | 93.5 | % | 93.0 | % | ||||||||
Operating income
|
5.2 | % | 7.0 | % | 6.5 | % | 7.0 | % | ||||||||
Other expense (income)
|
1.4 | % | 0.9 | % | 1.3 | % | 0.7 | % | ||||||||
Income before income taxes
|
3.8 | % | 6.1 | % | 5.2 | % | 6.3 | % | ||||||||
Provision for income taxes
|
1.3 | % | 2.3 | % | 1.9 | % | 2.3 | % | ||||||||
Net income
|
2.5 | % | 3.8 | % | 3.3 | % | 4.0 | % | ||||||||
Three months ended
|
Six months ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Freight revenue(1)
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Operating expenses:
|
||||||||||||||||
Salaries, wages, and employee benefits
|
34.5 | % | 34.0 | % | 34.3 | % | 35.0 | % | ||||||||
Fuel(1)
|
0.2 | % | 2.1 | % | 0.0 | % | 2.4 | % | ||||||||
Purchased transportation
|
37.7 | % | 30.9 | % | 37.5 | % | 29.4 | % | ||||||||
Revenue equipment rentals
|
0.9 | % | 1.4 | % | 0.9 | % | 1.5 | % | ||||||||
Operations and maintenance
|
7.3 | % | 6.9 | % | 7.4 | % | 7.0 | % | ||||||||
Insurance and claims
|
3.1 | % | 3.9 | % | 3.0 | % | 3.8 | % | ||||||||
Depreciation and amortization
|
7.7 | % | 9.5 | % | 8.4 | % | 9.7 | % | ||||||||
Communications and utilities
|
1.0 | % | 1.1 | % | 1.0 | % | 1.1 | % | ||||||||
Operating taxes and licenses
|
2.2 | % | 2.0 | % | 2.2 | % | 2.0 | % | ||||||||
General and other operating
|
1.9 | % | 2.0 | % | 1.9 | % | 2.1 | % | ||||||||
Gain on disposition of equipment
|
(2.2 | %) | (2.1 | %) | (3.8 | %) | (2.5 | %) | ||||||||
Total operating expenses
|
94.3 | % | 91.7 | % | 92.8 | % | 91.6 | % | ||||||||
Operating income
|
5.7 | % | 8.3 | % | 7.2 | % | 8.4 | % | ||||||||
Other expense (income)
|
1.5 | % | 1.0 | % | 1.4 | % | 0.9 | % | ||||||||
Income before income taxes
|
4.2 | % | 7.3 | % | 5.8 | % | 7.5 | % | ||||||||
Provision for income taxes
|
1.5 | % | 2.7 | % | 2.1 | % | 2.7 | % | ||||||||
Net income
|
2.7 | % | 4.6 | % | 3.7 | % | 4.8 | % |
(1)
|
Freight revenue is total revenue less fuel surcharges. In this table, fuel surcharges are eliminated from revenue and subtracted from fuel expense. Fuel surcharges were $26.1 million and $35.2 million for the second quarter of fiscal 2016 and 2015, respectively, and $54.4 million and $70.9 million for the six months ended December 31, 2015 and 2014, respectively. Freight revenue is not a recognized measure under GAAP and should not be considered an alternative to or superior to other measures derived in accordance with GAAP. We believe our presentation of freight revenue and our discussion of various expenses as a percentage of freight revenue is a useful way to evaluate our core operating performance.
|
·
|
In general, Quality’s tractor purchase orders do not become "firm commitment" orders for which we are irrevocably obligated until shortly before purchase. However, failure to consummate these orders could have a material adverse effect on Quality’s growth prospects. Quality may be unsuccessful in locating or reaching agreeable terms with third parties to purchase tractors from us in a volume that is adequate to meet Quality’s current or anticipated operations.
|
|
·
|
The Quality Financing Parties or other third parties may be unable to obtain sufficient financing to acquire from us the volume of tractors that we plan to purchase and resell or obtain financing on acceptable terms. This may require us to finance the acquisition of such tractors with our own indebtedness, which could substantially increase our indebtedness, require dilutive issuance of securities, or both. Alternatively, we could be forced to inhibit Quality’s growth. Further, there can be no assurance that we will be able to obtain such direct financing on favorable terms or at all.
|
|
·
|
Historically the markets for new and used tractors have been volatile. A change in these markets could negatively impact the price at which Quality is able to acquire and sell tractors, negatively impact Quality’s ability to resell tractors at a profit, and negatively impact the interests of the Quality Financing Parties and other financing sources in purchasing the tractors and providing financing.
|
|
·
|
If a change in accounting rules or other unforeseen circumstances prevents us from using our intended accounting treatment for the Quality Financing Party arrangements or similar arrangements we may be required to include the related equipment debt in our consolidated results of operations even though we are not primarily obligated on and do not guarantee such debt. This could materially and adversely affect our results of operations and stock price.
|
·
|
We are not obligated to make payments in respect of the leases or financing provided by the Quality Financing Parties to the independent contractors or fleets. However, under certain circumstances we may be required to take certain actions to recover the vehicle, find a new driver, repair the vehicle, prepare it for service, or provide other support. We also may be required to repurchase certain leases or financings from the Quality Financing Parties upon Quality’s uncured material breach of the respective agreements. We expect that it would be difficult to recoup the costs associated with these actions, especially if there were a decline in the used equipment market.
|
|
·
|
We may experience commercial pressure from financing sources and suppliers to provide additional services, change the terms of services provided, or otherwise help them mitigate any losses they may suffer, even if we are not legally obligated to do so.
|
|
·
|
We may experience commercial pressure from the Quality Financing Parties or other third parties with whom we enter into similar arrangements to add additional driver recruiting, truck maintenance and repossession, or other services, or change the terms of such services, any of which could increase our costs.
|
3.1
|
Amended and Restated Certificate of Incorporation of the Company, effective January 12, 2006. (Incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ending December 31, 2005, filed with the SEC on January 30, 2006.)
|
3.2
|
Certificate of Designation for Series A Junior Participating Preferred Stock. (Incorporated by reference to Exhibit 3.3 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2000, filed with the SEC on September 28, 2000.)
|
3.3
|
Amended and Restated By-Laws of the Company. (Incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q filed with the SEC on January 31, 2008.)
|
4.1
|
Amended and Restated Certificate of Incorporation of the Company, effective January 12, 2006. (Incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ending December 31, 2005, filed with the SEC on January 30, 2006.)
|
4.2
|
Certificate of Designation for Series A Junior Participating Preferred Stock. (Incorporated by reference to Exhibit 3.3 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2000, filed with the SEC on September 28, 2000.)
|
4.3
|
Amended and Restated By-Laws of the Company. (Incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q filed with the SEC on January 31, 2008.)
|
Amended and Restated Program Agreement, dated November 14, 2014, by and among the Company, Quality Equipment Leasing, LLC, and Element Financial Corp.*
|
|
Amended and Restated Service Agreement, dated November 14, 2014, by and among the Company, Quality Equipment Leasing, LLC, and Element Financial Corp.*
|
|
Second Amended and Restated Service Agreement, dated September 28, 2015, by and among the Company, Quality Equipment Leasing, LLC, and Element Financial Corp.*
|
|
Letter Agreement, dated December 29, 2015, by and among the Company, Quality Equipment Leasing, LLC, and Element Financial Corp.*
|
|
Certification pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, by Paul A. Will, the Company's Principal Executive Officer.*
|
|
Certification pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, by Bobby L. Peavler, the Company's Principal Financial Officer.*
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes–Oxley Act of 2002, by Paul A. Will, the Company's Chief Executive Officer.*
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by Bobby L. Peavler, the Company's Chief Financial Officer.*
|
|
101.INS**
|
XBRL Instance Document.*
|
101.SCH**
|
XBRL Taxonomy Extension Schema Document.*
|
101.CAL**
|
XBRL Taxonomy Extension Calculation Linkbase Document.*
|
101.DEF**
|
XBRL Taxonomy Extension Definition Linkbase Document.*
|
101.LAB**
|
XBRL Taxonomy Extension Label Linkbase Document.*
|
101.PRE**
|
XBRL Taxonomy Extension Presentation Linkbase Document.*
|
*
|
Filed herewith
|
**
|
In accordance with Regulation S-T, the XBRL-related information in Exhibit 101 shall be deemed to be "furnished" and not "filed."
|
Celadon Group, Inc.
(Registrant)
|
||
Date: February 9, 2016
|
/s/ Paul A. Will
|
|
Paul A. Will
|
||
Chief Executive Officer and Chairman of the Board
(Principal Executive Officer)
|
||
Date: February 9, 2016
|
/s/ Bobby L. Peavler
|
|
Bobby L. Peavler
|
||
Executive Vice President, Chief Financial Officer, and Treasurer
(Principal Financial Officer and Principal Accounting Officer)
|
EXHIBIT INDEX
|
|
Exhibit Number
|
Description
|
3.1
|
Amended and Restated Certificate of Incorporation of the Company, effective January 12, 2006. (Incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ending December 31, 2005, filed with the SEC on January 30, 2006.)
|
3.2
|
Certificate of Designation for Series A Junior Participating Preferred Stock. (Incorporated by reference to Exhibit 3.3 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2000, filed with the SEC on September 28, 2000.)
|
3.3
|
Amended and Restated By-Laws of the Company. (Incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q filed with the SEC on January 31, 2008.)
|
4.1
|
Amended and Restated Certificate of Incorporation of the Company, effective January 12, 2006. (Incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ending December 31, 2005, filed with the SEC on January 30, 2006.)
|
4.2
|
Certificate of Designation for Series A Junior Participating Preferred Stock. (Incorporated by reference to Exhibit 3.3 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2000, filed with the SEC on September 28, 2000.)
|
4.3
|
Amended and Restated By-Laws of the Company. (Incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q filed with the SEC on January 31, 2008.)
|
Amended and Restated Program Agreement, dated November 14, 2014, by and among the Company, Quality Equipment Leasing, LLC, and Element Financial Corp.*
|
|
Amended and Restated Service Agreement, dated November 14, 2014, by and among the Company, Quality Equipment Leasing, LLC, and Element Financial Corp.*
|
|
Second Amended and Restated Service Agreement, dated September 28, 2015, by and among the Company, Quality Equipment Leasing, LLC, and Element Financial Corp.*
|
|
Letter Agreement, dated December 29, 2015, by and among the Company, Quality Equipment Leasing, LLC, and Element Financial Corp.*
|
|
Certification pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, by Paul A. Will, the Company's Principal Executive Officer.*
|
|
Certification pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, by Bobby L. Peavler, the Company's Principal Financial Officer.*
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes–Oxley Act of 2002, by Paul A. Will, the Company's Chief Executive Officer.*
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by Bobby L. Peavler, the Company's Chief Financial Officer.*
|
|
101.INS**
|
XBRL Instance Document.*
|
101.SCH**
|
XBRL Taxonomy Extension Schema Document.*
|
101.CAL**
|
XBRL Taxonomy Extension Calculation Linkbase Document.*
|
101.DEF**
|
XBRL Taxonomy Extension Definition Linkbase Document.*
|
101.LAB**
|
XBRL Taxonomy Extension Label Linkbase Document.*
|
101.PRE**
|
XBRL Taxonomy Extension Presentation Linkbase Document.*
|
*
|
Filed herewith
|
**
|
In accordance with Regulation S-T, the XBRL-related information in Exhibit 101 shall be deemed to be "furnished" and not "filed."
|
|
3.2
|
Rate.
|
|
4.2
|
Funding
|
|
4.3
|
Pricing
|
|
5.4
|
Affirmative Covenants of Company.
|
|
8.1
|
Indemnification
|
|
8.2
|
Recourse Pool.
|
If to Financing Party:
Element Financial Corp.
655 Business Center Drive
Horsham, PA 19044
ATTN: Rene Paradis, CAO & CFO
Fax: (267) 960-2061
|
If to Company:
Celadon Group, Inc.
9503 E. 33rd Street
Indianapolis, IN 46235
ATTN: Eric Meek, CFO
Fax: (317) 829-6375
|
|
9.6
|
Miscellaneous.
|
CELADON GROUP, INC.
|
ELEMENT FINANCIAL CORP.
|
|||
BY:
|
/s/ Eric Meek |
BY:
|
/s/ Donald P. Campbell | |
PRINT NAME:
|
Eric Meek |
PRINT NAME:
|
Donald P. Campbell | |
TITLE:
|
COO |
TITLE:
|
CEO | |
QUALITY EQUIPMENT LEASING, LLC.
|
||||
BY:
|
/s/ Eric Meek | |||
PRINT NAME:
|
Eric Meek | |||
TITLE:
|
COO |
|
1.
|
Approximately 70% of the Existing Transactions call for variable lease payments by Independent Operators related to the miles each Delivery Vehicle is driven per month by the Independent Operator. All other Existing Transactions and Future Transactions call for fixed payment terms.
|
|
2.
|
All Transaction payment amounts shall be automatically deducted from the earnings of the Independent Operator and paid to Servicer for the benefit of, and shall be held in trust for, Purchaser (the “Actual Payment”).
|
|
3.
|
For the 70% of the Existing Transactions that have variable lease payments, Servicer and Purchaser shall agree upon an expected monthly lease payment for each Transaction based upon an average 38 month term for the Celadon portfolio by each Owner Operator (the “Expected Payment”).
|
|
4.
|
Servicer shall pay to the Purchaser the Expected Payment and the contractual amount for Transactions with fixed payments for each outstanding Transaction by the 10th day of the third month after the date Purchaser reimbursed Servicer for all advances made by Servicer during the month and on the 10th day of each succeeding month. Accompanying the payment will be an Excel file which will include the following fields:
|
FIELD NAME
|
FORMAT
|
SPECIAL FORMATING
|
POSITION EXAMPLE
|
Comment
|
|
Seq#
|
Numeric (7,0)
|
Zero Filled
|
1-7
|
0000001
|
Record #1
|
Cust#
|
Char (7)
|
blanks if no value
|
8-14
|
1005515
|
Cust# 1005515
|
Lease#
|
Char (15)
|
blanks if no value
|
15-29
|
101620-001
|
Lease# 101620-001
|
Invoice#
|
Numeric (9,0)
|
Zero Filled
|
30-38
|
000035789
|
Invoice #35789
|
Receipt Date
|
Numeric/Date (6,0)
|
MMDDYY (no slashes or dashes)
|
39-44
|
40209
|
Lockbox Date (April 2, 2009)
|
Filler
|
Numeric (8.4)
|
Zero Filled
|
45-56
|
000000000000
|
12 zeros
|
Amt Paid
|
Numeric (9.2)
|
Zero Filled
|
57-67
|
00000012345
|
$123.45
|
Check#
|
Numeric (7,0)
|
Zero Filled
|
68-74
|
0000101
|
Check #101
|
|
5.
|
A template of the above file will be provided to the Servicer at or before Closing of the Purchase and Sale Agreement between the parties.
|
|
6.
|
Each month, by the 5th business day following the month end, Servicer shall provide a copy of the “Lock Box File” to the Purchaser. The Lock Box File is a file the form of which will be approved by Servicer and reflects, by Transaction, the actual cash collected during the month from Obligors.
|
|
7.
|
Fleets will be directed to wire funds directly to Purchaser rather than to Servicer. Wire instructions have been provided directly to Servicer management.
|
|
8.
|
Servicer shall maintain the Recourse Pool in accordance with the Amended and Restated Reserve Account Agreement entered into between the Servicer and Purchaser of even date herewith.
|
|
9.
|
With respect to Transactions that are terminated for reasons other than a default by an Obligor, including but not limited to, the early termination of the Transaction by the Obligor, loss due to accident, or the mutual agreement of the Servicer and Purchaser to sell a Delivery Vehicle or Vehicle to third parties in the market place, the proceeds from such event necessary to satisfy Purchaser’s Net Book Value (as defined in Section2c)2. herein) for the Transaction will be paid to the Purchaser within forty-eight (48) hours of such receipt and Purchaser shall return the title associated with such Delivery Vehicle or Vehicle to Servicer within ten (10) business days of Purchaser’s receipt of its Net Book Value for the Transaction. To the extent the proceeds received by Servicer exceed Purchaser’s Net Book Value for the Transaction, such excess proceeds shall be divided between Servicer and Purchaser after Servicer has been reimbursed for actual cost of reseating the Delivery Vehicle as approved by Purchaser and any shortfall the Servicer experienced in making the Expected Payments and the contractual payments.
|
|
1.
|
Each of the Existing Transactions and Future Transactions call for payment by Independent Operators into a maintenance fund created with respect to each Delivery Vehicle subject to a Transaction and based on the total number of miles the Delivery Vehicle is driven per month by Obligor (each said fund is referred to a “Maintenance Fund” and the aforesaid payment contributions are referred to, collectively, as “Maintenance Contributions”).
|
|
2.
|
All Maintenance Contributions shall be automatically deducted from the earnings of Independent Operators and paid to Servicer for Servicer’s benefit to be used to fund the repairs of the Delivery Vehicles.
|
|
3.
|
Servicer shall keep an accounting of the maintenance fund for each transaction.
|
|
4.
|
Where maintenance or repair of a Delivery Vehicle is necessary, Servicer shall use the Maintenance Fund for the applicable Transaction to pay for the necessary maintenance or repair.
|
|
5.
|
Where the Maintenance Fund is insufficient to cover the expense of maintenance or repair, Servicer shall make arrangements with the Independent Operator for credit with respect to the deficient amount to be paid over time by future maintenance fund payments.
|
|
6.
|
Purchaser shall have no obligation with respect to maintenance or repair of Delivery Vehicles which are the subject of the Transactions unless it should elect to terminate this Amended Agreement and Servicer’s rights and obligations, as servicer, hereunder.
|
|
1.
|
In the event that an Obligor obligated on each Transaction shall default on the Transaction prior to its maturity. Servicer shall promptly notify Purchaser of any default with respect to a Transaction and Servicer’s planned course of conduct in accord with this section of the Amended Agreement.
|
|
2.
|
When a default occurs, Servicer shall first determine whether the present residual value of the Delivery Vehicle or Vehicle is in excess of the net book value of the Delivery Vehicle or Vehicle (the “Net Book Value” being calculated by adding the Transaction payments remaining until maturation to the expected eventual residual value . Purchaser may waive this requirement for payment of the Net Book Value at its discretion. Servicer shall inform Purchaser of the potential sale price of a Delivery Vehicle or Vehicle when a default occurs.
|
|
3.
|
If the present residual value of the Delivery Vehicle or Vehicle is in excess of the current Net Book Value of such Delivery Vehicle or Vehicle, Servicer may sell such Delivery Vehicle or Vehicle or, with the authorization of the Purchaser, enter into a lease for such Delivery Vehicle or Vehicle.
|
|
4.
|
The proceeds from the sale of the Delivery Vehicle or Vehicle shall be distributed within 48 hours of Servicer’s receipt of such proceeds as follows: (a) the Net Book Value of such Delivery Vehicle or Vehicle is remitted to the Purchaser; (b) any excess cost beyond the maintenance balance retained from Independent Operator for the reconditioning of the Delivery Vehicle for sale is returned to the Reserve Fund Account held with the Servicer pursuant to the Amended Agreement; and, (c) any excess funds over the initial Residual Amount are divided between Servicer and Purchaser.
|
|
5.
|
If the present residual value of the Delivery Vehicle or Vehicle is not in excess of the current Net Book Value of such Delivery Vehicle or Vehicle, Servicer shall with respect to such Delivery Vehicle be responsible for obtaining a new Independent Operator to enter into a Transaction for the Delivery Vehicle in question or funds will be paid to Purchaser from the Reserve Fund Account and for other Vehicles, funds will be paid to Purchaser from the Reserve Fund Account.
|
|
6.
|
While remarketing the Vehicles, Servicer shall continue to make Expected Payments and the contractual amount for Transactions with fixed payments on the terminated Transaction.
|
|
7.
|
When remarketing a Delivery Vehicle, Servicer shall give priority to placing an Independent Operator with the remarketed Vehicle ahead of all other opportunities.
|
|
8.
|
When a new Independent Operator is found with respect to a remarketed Vehicle, the Independent Operator shall enter into a new Transaction with Purchaser, as lessor or lender thereunder, for no additional consideration, and Servicer shall deliver all original Transaction Documents evidencing said new Transaction to Purchaser.
|
|
a)
|
Pursuant to Section 2 (a) 6, the Lock Box fFile or similar acceptable report to Purchaser;
|
|
b)
|
Delinquency Report sorted by Obligor, for the most recent Reporting Period, in the form attached hereto as Exhibit B or as otherwise acceptable to Purchaser;
|
|
c)
|
All gains and losses on sale of Vehicles;
|
|
d)
|
Outstanding Advance Report listing by Transaction what portions of the most recent Aggregate Monthly Payment constituted Advances and the total outstanding Advances with respect to each Transaction;
|
|
e)
|
Loss Pool Report, indicating the Loss Pool amount and all additions and subtractions thereto since the prior report;
|
|
f)
|
On or before the 5th business day of each month, a data file in electronic form reflecting all gross balances due at the Transaction level in the same format as outlined in Section 3.1 (c) of the Portfolio Purchase Agreement;
|
|
g)
|
;
|
|
h)
|
An Idle Truck Report. This report should reflect the Vehicles which are idle at the end of each month and the activity related to idle trucks in the month.;
|
|
i)
|
A Preventative Maintenance Compliance Report at each month end;
|
|
j)
|
Quarterly compliance certificate from Chief Finance Officer on representations and warranties; and
|
|
k)
|
Other reports as may be reasonably requested from time to time.
|
|
4.
|
Servicer covenants to:
|
|
7.
|
All notices, requests and demands to or upon the parties hereto shall be deemed to have been given or made when received by the parties at the following addresses, or to such other addresses as may hereafter be designated in writing:
|
CELADON GROUP, INC.
QUALITY EQUIPMENT LEASING, LLC.
|
||
By:
|
/s/ Eric Meek | |
Name: Eric Meek
|
||
Title: COO
|
||
ELEMENT FINANCIAL CORP.
|
||
By:
|
/s/ Donald P. Campbell | |
Name: Donald P. Campbell
|
||
Title: CEO
|
SELLER:
|
||||
CELADON GROUP, INC.
|
QUALITY EQUIPMENT LEASING, LLC
|
|||
By:
|
/s/ Eric Meek
|
By:
|
/s/ Danny Williams
|
|
Name:
|
Eric Meek
|
Name:
|
Danny Williams
|
|
Title
|
President, COO
|
Title:
|
COO
|
|
PURCHASER:
|
||||
ELEMENT FINANCIAL CORP.
|
||||
By:
|
/s/ Donald P. Campbell
|
|||
Name:
|
Donald P. Campbell
|
|||
Title:
|
CEO
|
Sincerely,
|
||||
ELEMENT FINANCIAL CORP.
|
||||
By:
|
/s/ Rene Paradis
|
|||
[Name, Title] Rene Paradis
|
||||
EVP, CFO-CAO
|
||||
The terms of this Letter Agreement are hereby agreed to.
|
||||
CELADON GROUP, INC.
|
||||
By:
|
/s/ Eric Meek
|
|||
Name:
|
Eric Meek
|
|||
Title:
|
President
|
|||
QUALITY EQUIPMENT LEASING, LLC
|
||||
By:
|
/s/ Eric Meek
|
|||
Name:
|
Eric Meek
|
|||
Title:
|
President
|
1.
|
I have reviewed this Form 10-Q of Celadon Group, Inc.; |
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: February 9, 2016
|
/s/Paul A. Will
|
Paul A. Will
|
|
Chief Executive Officer
(Principal Executive Officer)
|
1.
|
I have reviewed this Form 10-Q of Celadon Group, Inc.; |
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: February 9, 2016
|
/s/Bobby L. Peavler
|
Bobby L. Peavler
|
|
Executive Vice President, Chief Financial Officer, and Treasurer (Principal Financial Officer and Principal Accounting Officer)
|
1.
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/Paul A. Will
|
|
Date: February 9, 2016
|
Paul A. Will
|
Chief Executive Officer
|
1.
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/Bobby L. Peavler
|
|
Date: February 9, 2016
|
Bobby L. Peavler
|
Chief Financial Officer
|
Document And Entity Information - shares |
6 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Feb. 06, 2016 |
|
Entity Registrant Name | CELADON GROUP INC | |
Entity Central Index Key | 0000865941 | |
Trading Symbol | cgi | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 27,874,795 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
OPERATING REVENUE: | ||||
Freight revenue | $ 249,311 | $ 187,205 | $ 487,123 | $ 344,909 |
Fuel surcharge revenue | 26,088 | 35,166 | 54,397 | 70,878 |
Total revenue | 275,399 | 222,371 | 541,520 | 415,787 |
OPERATING EXPENSES: | ||||
Salaries, wages, and employee benefits | 85,877 | 63,569 | 167,354 | 120,791 |
Fuel | 26,688 | 39,199 | 54,416 | 79,184 |
Purchased transportation | 93,948 | 58,228 | 182,978 | 101,865 |
Revenue equipment rentals | 2,201 | 2,648 | 4,423 | 5,238 |
Operations and maintenance | 18,243 | 12,990 | 35,849 | 24,229 |
Insurance and claims | 7,709 | 7,221 | 14,637 | 12,898 |
Depreciation and amortization | 19,187 | 17,734 | 40,788 | 33,291 |
Communications and utilities | 2,611 | 2,097 | 4,955 | 3,927 |
Operating taxes and licenses | 5,532 | 3,699 | 10,504 | 7,013 |
General and other operating | 4,803 | 3,427 | 9,085 | 6,882 |
Gain on disposition of equipment | (5,479) | (4,010) | (18,721) | (8,568) |
Total operating expenses | 261,320 | 206,802 | 506,268 | 386,750 |
Operating income | 14,079 | 15,569 | 35,252 | 29,037 |
Interest expense | $ 3,758 | 2,008 | $ 6,910 | 3,177 |
Interest income | (3) | (7) | ||
Other income | $ 21 | (36) | $ 121 | (110) |
Income before income taxes | 10,300 | 13,600 | 28,221 | 25,977 |
Income tax expense | 3,685 | 5,057 | 10,239 | 9,387 |
Net income | $ 6,615 | $ 8,543 | $ 17,982 | $ 16,590 |
Income per common share: | ||||
Diluted (in dollars per share) | $ 0.24 | $ 0.36 | $ 0.64 | $ 0.69 |
Basic (in dollars per share) | $ 0.24 | $ 0.37 | $ 0.65 | $ 0.71 |
Diluted weighted average shares outstanding (in shares) | 27,940 | 23,991 | 27,953 | 23,963 |
Basic weighted average shares outstanding (in shares) | 27,480 | 23,327 | 27,467 | 23,284 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Net income | $ 6,615 | $ 8,543 | $ 17,982 | $ 16,590 |
Other comprehensive loss: | ||||
Unrealized gain (loss) on fuel derivative instruments, net of tax | $ (875) | $ (1,351) | ||
Unrealized gain (loss) on currency derivative instruments, net of tax | $ (35) | |||
Foreign currency translation adjustments, net of tax | $ (4,829) | $ (5,715) | $ (14,260) | (9,567) |
Total other comprehensive loss | (5,704) | (5,715) | (15,611) | (9,602) |
Comprehensive income | $ 911 | $ 2,828 | $ 2,371 | $ 6,988 |
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands |
Dec. 31, 2015 |
Jun. 30, 2015 |
---|---|---|
Trade receivables, allowance for doubtful accounts | $ 1,446 | $ 1,002 |
Common stock, par value (in dollars per share) | $ 0.033 | $ 0.033 |
Common stock, shares authorized (in shares) | 40,000 | 40,000 |
Common stock, shares issued (in shares) | 28,375 | 28,342 |
Common stock, shares outstanding (in shares) | 28,375 | 28,342 |
Treasury stock, shares (in shares) | 500 | 500 |
Note 1 - Basis of Presentation |
6 Months Ended |
---|---|
Dec. 31, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Basis of Presentation References in this Report on Form 10-Q to “we,” “us,” “our,” “Celadon,” or the “Company” or similar terms refer to Celadon Group, Inc. and its consolidated subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. The accompanying condensed consolidated unaudited financial statements of Celadon Group, Inc. and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America and Regulation S-X, instructions to Form 10-Q, and other relevant rules and regulations of the Securities and Exchange Commission (the “SEC”), as applicable to the preparation and presentation of interim financial information. Certain information and footnote disclosures have been omitted or condensed pursuant to such rules and regulations. We believe all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Results of operations in interim periods are not necessarily indicative of results for a full year. These condensed consolidated unaudited financial statements and notes thereto should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2015. The preparation of the financial statements in conformity with United States generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Note 2 - Earnings Per Share |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] | 2 . Earnings Per Share (in thousands, except per share amounts ) A reconciliation of the basic and diluted earnings per share is as follows:
There were no shares that were considered anti-dilutive for the three month or six month periods ended December 31, 2015 or December 31, 2014. |
Note 3 - Stock Based Compensation |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 3 . Stock Based CompensationThe following table summarizes the components of our stock based compensation program expense (in thousands):
As of December 31, 2015, we have no unrecognized compensation cost related to unvested options granted under the Celadon Group, Inc. 2006 Omnibus Incentive Plan, as amended (the "2006 Plan"). A summary of the award activity of our stock option plans as of December 31, 2015, and changes during the six-month period then ended is presented below:
As of December 31, 2015, w e also have approximately $5.7 million of unrecognized compensation expense related to restricted stock awards, which is anticipated to be recognized over a weighted-average period of 2.3 years and a total period of 3.2 years. A summary of the restricted stock award activity under the 2006 Plan as of December 31, 2015, and changes during the six-month period is presented below:
The fair value of each restricted stock award is based on the closing market price on the date of grant. |
Note 4 - Segment Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | 4 . We have three reportable segments comprised of an asset-based segment, an asset-light based segment, and an equipment leasing and services segment. Our asset-based segment includes our asset-based dry van carrier and rail services, which are geographically diversified but have similar economic and other relevant characteristics, as they all provide truckload carrier services of general commodities to a similar class of customers. Our asset-light based segment consists of our warehousing, brokerage, and less-than-truckload ("LTL") operations. Our equipment leasing and services segment consists of tractor and trailer sales and leasing. This segment also includes revenues from insurance, maintenance, and other ancillary services that we provide for independent contractors. We have determined that these segments qualify as reportable segments under ASC 280-10, Segment Reporting . Information regarding our reportable segments is summarized below (in thousands):
Results of the equipment leasing and services segment prior to the current fiscal year are impracticable to determine due to the way we had costs integrated with our asset-based segment. Information as to our operating revenue by geographic area is summarized below (in thousands). We allocate operating revenue based on the country of origin of the tractor hauling the freight (in thousands):
|
Note 5 - Income Taxes |
6 Months Ended |
---|---|
Dec. 31, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 5 . During the three months ended December 31, 2015 and 2014, our effective tax rates were 35.8% and 37.2%, respectively. During the six months ended December 31, 2015 and 2014, our effective tax rates were 36.3% and 36.1%, respectively. In determining our quarterly provision for income taxes, we use an estimated annual effective tax rate, which is based on our expected annual income, statutory tax rates, nontaxable and nondeductible items of income and expense, and the ultimate outcome of tax audits. The change in the proportion of income from domestic and foreign sources affects our effective tax rate. Income tax expense also varies from the amount computed by applying the statutory federal tax rate to income before income taxes primarily due to state income taxes, net of federal income tax effect, adjusted for permanent differences, the most significant of which is the effect of the per diem pay structure for drivers. Under this pay structure, drivers who meet the requirements and elect to receive per diem pay are generally required to receive non-taxable per diem pay in lieu of a portion of their taxable wages. This per diem program increases our drivers’ net pay per mile, after taxes, while decreasing gross pay, before taxes. As a result, salaries, wages, and employee benefits are slightly lower, and our effective income tax rate is higher than the statutory rate. Generally, as pre-tax income increases, the impact of the driver per diem program on our effective tax rate decreases because aggregate per diem pay becomes smaller in relation to pre-tax income. Due to the partially nondeductible effect of per diem pay, our tax rate will fluctuate in future periods based on fluctuations in earnings and in the number of drivers who elect to be paid under this pay structure. We follow ASC Topic 740-10-25 in accounting for uncertainty in income taxes ("Topic 740"). Topic 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. We account for any uncertainty in income taxes by determining whether it is more likely than not that a tax position taken or expected to be taken in a tax return will be sustained upon examination by the appropriate taxing authority based on the technical merits of the position. In that regard, we have analyzed filing positions in our federal and applicable state tax returns for all open tax years. The only periods subject to examination for our federal returns are the 2012 through 2014 tax years. We believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our consolidated financial position, results of operations, or cash flows. As of December 31, 2015, we recorded a $0.5 million liability for unrecognized tax benefits, a portion of which represents penalties and interest. |
Note 6 - Commitments and Contingencies |
6 Months Ended |
---|---|
Dec. 31, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 6 . Commitments and Contingencies We are party to certain lawsuits in the ordinary course of business. We are not currently party to any proceedings which we believe will have a material adverse effect on our consolidated financial position or operations. A subsidiary has been named as the defendant in Wilmoth et al. v. Celadon Trucking Services, Inc., a class action proceeding. A summary judgment was granted in favor of the plaintiffs. We have appealed this judgment. We believe that we will be successful on appeal, but that it is also reasonably possible the judgment will be upheld. We estimate the possible range of financial exposure associated with this claim to be between $0 and approximately $5 million. We currently do not have a contingency reserved for this claim, but will continue to monitor the progress of this claim to determine if a reserve is necessary in the future. We have been named as the defendant in Day et al. v. Celadon Trucking Services, Inc., a class action proceeding. A judgment was granted in favor of the plaintiffs. We have appealed this judgment. We believe that we will be successful on appeal, but that it is also reasonably possible the judgment will be upheld. We estimate the possible range of financial exposure associated with this claim to be between $0 and approximately $2 million. We currently do not have a contingency reserved for this claim, but will continue to monitor the progress of this claim to determine if a reserve is necessary in the future. We have outstanding commitments to purchase approximately $83.5 million of revenue equipment at December 31, 2015. Standby letters of credit, not reflected in the accompanying condensed consolidated financial statements, aggregated approximately $2.2 million at December 31, 2015. In addition, at December 31, 2015, 500,000 treasury shares were held in a trust as collateral for self-insurance reserves. |
Note 7 - Lease Obligations and Long-term Debt |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases of Lessee Disclosure [Text Block] | 7 . Lease Obligations and Long-Term Debt L ease Obligations We lease certain revenue and service equipment under long-term lease agreements, payable in monthly installments. Equipment obtained under capital leases is reflected on our condensed consolidated balance sheet as owned and the related leases bear interest rates ranging from 1.6% to 3.6% per annum maturing at various dates through 2022. Assets held under operating leases are not recorded on our condensed consolidated balance sheet. We lease revenue and service equipment under non-cancellable operating leases expiring at various dates through 2022. Long-Term Debt We had debt, excluding capital leases, of $128.1 million at December 31, 2015, of which $126.9 million relates to our credit facility. Debt includes revenue equipment installment notes of $1.2 million with an average interest rate of approximately 4.9 percent at December 31, 2015, due in monthly installments with final maturities at various dates through June 2019. Future minimum lease payments relating to capital leases and operating leases as of December 31, 2015 (in thousands) follow:
|
Note 8 - Fair Value Measurements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | 8 . Fair Value Measurements ASC 820-10 Fair Value Measurements and Disclosure defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. This standard establishes a three-level hierarchy for fair value measurements based upon the significant inputs used to determine fair value. Observable inputs are those which are obtained from market participants external to us, while unobservable inputs are generally developed internally, utilizing management’s estimates assumptions, and specific knowledge of the nature of the assets or liabilities and related markets. The three levels are defined as follows:Level 1 – Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 – Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active (markets with few transactions), inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs). Level 3 – Unobservable inputs, only used to the extent that observable inputs are not available, reflect our assumptions about the pricing of an asset or liability. In accordance with the fair value hierarchy described above, the following table shows the fair value of our financial assets and liabilities (in thousands) that are required to be measured at fair value as of December 31, 2015 and June 30, 2015.
We pay a fixed contract rate for foreign currency. The fair value of foreign currency forward contracts is based on the valuation model that discounts cash flows resulting from the differential between the contract price and the market based forward rate. Our other financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, long term debt, and capital lease obligations. At December 31, 2015, the fair value of these instruments were approximated by their carrying values. |
Note 9 - Fuel Derivatives |
6 Months Ended |
---|---|
Dec. 31, 2015 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 9 . Fuel Derivatives In our day to day business activities we are exposed to certain market risks, including the effects of changes in fuel prices. We review new ways to reduce the potentially adverse effects that the volatility of fuel markets may have on operating results. In an effort to reduce the variability of the ultimate cash flows associated with fluctuations in diesel fuel prices, we may enter into futures contracts. These instruments will be heating oil futures contracts as the related index, New York Mercantile Exchange (“NYMEX”), generally exhibits high correlation with the changes in the dollars of the forecasted purchase of diesel fuel. We do not engage in speculative transactions, nor do we hold or issue financial instruments for trading purposes. We have entered into futures contracts relating to 4,284,000 total gallons of diesel fuel, or 336,000 gallons per month for January 2016 through February 2017, approximately 10.0% of our monthly projected fuel requirements through February 2017. Under these contracts, we pay a fixed rate per gallon of heating oil and receive the monthly average price of New York heating oil per the NYMEX. We have done retrospective and prospective regression analyses that showed the changes in the prices of diesel fuel and heating oil were deemed to be highly effective based on the relevant authoritative guidance. Accordingly, we have designated the respective hedges as cash flow hedges. We perform both a prospective and retrospective assessment of the effectiveness of our hedge contracts at inception and quarterly. If our analysis shows that the derivatives are not highly effective as hedges, we will discontinue hedge accounting for the period and prospectively recognize changes in the fair value of the derivative being recognized through earnings. As a result of our effectiveness assessment at inception and at December 31, 2015, we believe our hedge contracts have been and will continue to be highly effective in offsetting changes in cash flows attributable to the hedged risk. We recognize all derivative instruments at fair value on our condensed consolidated balance sheets in other assets or other accrued expenses. Our derivative instruments are designated as cash flow hedges, thus the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income and will be reclassified into earnings in the same period during which the hedged transactions affect earnings. The effective portion of the derivative represents the change in fair value of the hedge that offsets the change in fair value of the hedged item. To the extent the change in the fair value of the hedge does not perfectly offset the change in the fair value of the hedged item, the ineffective portion of the hedge is immediately recognized in other income or expense on our condensed consolidated statements of income. The ineffective portion of the hedge for the quarter ended December 31, 2015 was immaterial and therefore not recognized through earnings. Based on the amounts in accumulated other comprehensive income as of December 31, 2015, and the expected timing of the purchases of the diesel fuel hedged, we expect to reclassify $2.2 million of loss on derivative instruments from accumulated other comprehensive income to our condensed consolidated statement of income, as fuel expense, due to the actual diesel fuel purchases. The amounts actually realized will depend on the fair values as of the date of settlement. Outstanding financial derivative instruments expose us to credit loss in the event of nonperformance by the counterparties with which we have these agreements. Our credit exposure related to these financial instruments is represented by the fair value of contracts reported as liabilities. To evaluate credit risk, we review each counterparty's audited financial statements and credit ratings and obtain references. Any credit valuation adjustments deemed necessary would be reflected in the fair value of the instrument. As of December 31, 2015, we have not made any such adjustments. |
Note 10 - Dividend |
6 Months Ended |
---|---|
Dec. 31, 2015 | |
Notes to Financial Statements | |
Dividend [Text Block] | 10 . On October 27, 2015, we declared a cash dividend of $0.02 per share of common stock. The dividend was payable to stockholders of record on January 8, 2016 and was paid on January 22, 2016. Future payment of cash dividends, and the amount of any such dividends, will depend on our financial condition, results of operations, cash requirements, tax treatment, and certain corporate law requirements, as well as other factors deemed relevant by our Board of Directors. |
Note 11 - Acquisitions |
6 Months Ended |
---|---|
Dec. 31, 2015 | |
Notes to Financial Statements | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | 1 1 . Acquisitions Immaterial acquis itions for the period ended December 31, 2015 In July 2015, we acquired certain assets of Buckler Transport, Inc. (“Buckler”) in Roulette, PA, for $13.7 million. The assets acquired include tractors and trailers that we intend to operate in the short term. We used borrowings under our existing credit facility to fund the purchase price. The purposes of the acquisition were to offer employment opportunities to Buckler drivers and to diversify into the hot asphalt and fracking industry. In November 2015, we acquired certain assets of Distribution, Inc. dba FTL, Inc. (“FTL”) in Clackamas, OR, for $5.4 million. The assets acquired include tractors and trailers that we intend to operate in the short term. We used borrowings under our existing credit facility to fund the purchase price. The purpose of the acquisition was to offer employment opportunities to FTL drivers and continue dry-van service for the FTL customers. |
Note 12 - Goodwill and Other Intangible Assets |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | 12 . The acquired intangible assets, included in the condensed consolidated balance sheet within other assets, relate to customer relations acquired through acquisition in fiscal 2015. There have been no additions to intangible assets in fiscal 2016. All previously acquired intangibles relate to our asset-based business. The intangible assets are being amortized on a straight-line basis through 2041. The following table summarizes intangible assets, included as a component of other assets in the accompanying condensed consolidated financial statements (in thousands):
The additions to goodwill relate to the Buckler and FTL acquisitions of $1.8 million and $1.8 million, respectively. The Buckler and FTL related goodwill are tax deductible (in thousands).
|
Note 13 - Equipment Leasing and Services Segment |
6 Months Ended |
---|---|
Dec. 31, 2015 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 13 . Equipment Leasing and Services Segment We routinely sell equipment and assign lease payments to third parties for use by independent contractors. Total net proceeds of units during the three and six months ended December 31, 2015 was $121.3 million and $273.9 million, respectively. The net gain as a result of these transactions in the three and six months ended December 31, 2015 was $7.2 million and $21.9 million, respectively. The $0.7 million of net operating expense reported under the equipment leasing and services segment for the three months ended December 31, 2015 includes $7.2 million in gains recorded on a net basis for such period, less operating expenses associated with this segment. The $9.2 million operating income reported under the equipment leasing and services segment includes $21.9 million in gains recorded on a net basis for such period, less associated operating expenses. |
Note 14 - Unconsolidated Related-party Investments |
6 Months Ended |
---|---|
Dec. 31, 2015 | |
Notes to Financial Statements | |
Unconsolidated Investments [Text Block] | 1 4 . Unconsolidated Related-party Investments In late September 2015, Quality Equipment Leasing, LLC and Quality Companies, LLC (together, “Quality” or “Quality Companies”), our wholly owned subsidiaries, entered into a Portfolio Purchase and Sale Agreement, a Fleet Program Agreement, a Service Agreement and a Program Agreement with 19th Capital Group, LLC (“19th Capital”). Under the Portfolio Purchase and Sale Agreement, 19th Capital purchased portfolios of Quality's independent contractor leases and associated assets. The net sales proceeds of units total $35.8 million and $49.4 million for the three and six months ended December 31, 2015, respectively. The net gain as a result of these transactions was $2.7 million and $2.8 million, respectively. Under the Program Agreement, 19th Capital will finance the renewal and expansion of transportation assets operated by independent lessees. Under related agreements, Quality will provide administrative and servicing support for 19th Capital’s lease and financing portfolio, certain driver recruiting, lease payment remittance, maintenance, and insurance services. Of the gain amounts referred to above, the Company records such amounts as deferred revenue in the liabilities section of the balance sheet and amortizes the deferred revenue over the expected life of the lease until 19th Capital disposes of the asset. The Company has deferred $4.7 million which is included in deferred leasing revenue on the condensed consolidated balance sheet as of December 31, 2015. 19th Capital was established with capital contributions from us (33.33%) and Tiger ELS, LLC (“Tiger”) (66.67%), an entity controlled by Larsen MacColl Partners, an unaffiliated investment firm, in exchange for Class A Interests. As of December 31, 2015, we had invested $2.0 million of the total capital contributions. In addition to the Company’s ownership, certain members of Celadon’s management own a membership interest in 19 th Capital, issued in the form of Class B Interests, which begin to participate in equity value after 100% of the capital invested in 19th Capital, plus a preferred return of 12% per annum, has been returned to the holders of the Class A Interests. |
Note 15 - Reclassifications and Adjustments |
6 Months Ended |
---|---|
Dec. 31, 2015 | |
Notes to Financial Statements | |
Reclassifications [Text Block] | 15 . Reclassifications and Adjustments Certain items in the fiscal 2015 condensed consolidated financial statements have been reclassified to conform to the current presentation. The reclassifications had no impact on earnings. |
Note 16 - Change in Depreciable Lives of Property and Equipment |
6 Months Ended |
---|---|
Dec. 31, 2015 | |
Notes to Financial Statements | |
Accounting Changes [Text Block] | 16 . In accordance with its policy, the Company reviews the estimated useful lives of its fixed assets on an ongoing basis. This review indicated that the actual lives of certain tractors and trailers were longer than the estimated useful lives used for depreciation purposes in the Company’s financial statements. As a result, effective October 1, 2015, the Company changed its estimates of the useful lives and salvage value of certain tractors and trailers to better reflect the estimated periods during which these assets will remain in service. The estimated useful lives of the tractors and trailers that previously were 3 years for tractors and 7 years for trailers were increased to 4 years for tractors and 10 years for trailers. The effect of this change in estimate was to reduce depreciation expense for the three months ended December 31, 2015 by $2.9 million, increase 2016 net income by $1.7 million, and increase 2016 basic and diluted earnings per share by $0.06. As the change went into effect as of October 1, 2015, the three and six months ended December 31, 2015 impact would be the same. |
Note 2 - Earnings Per Share (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] |
|
Note 3 - Stock Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] |
|
Note 4 - Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] |
|
Note 7 - Lease Obligations and Long-term Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] |
|
Note 8 - Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] |
|
Note 12 - Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Tables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] |
|
Note 2 - Earnings Per Share (Details Textual) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 0 |
Note 2 - Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Weighted average common shares outstanding – basic (in shares) | 27,480 | 23,327 | 27,467 | 23,284 |
Dilutive effect of stock options and unvested restricted stock units (in shares) | 460 | 664 | 486 | 679 |
Weighted average common shares outstanding – diluted (in shares) | 27,940 | 23,991 | 27,953 | 23,963 |
Net income | $ 6,615 | $ 8,543 | $ 17,982 | $ 16,590 |
Income per common share: | ||||
Diluted (in dollars per share) | $ 0.24 | $ 0.36 | $ 0.64 | $ 0.69 |
Basic (in dollars per share) | $ 0.24 | $ 0.37 | $ 0.65 | $ 0.71 |
Note 3 - Stock Based Compensation - Components of Share Based Compensation Expense (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Employee Stock Option [Member] | ||||
Stock compensation expense | $ 0 | $ 24,000 | $ 0 | $ 48,000 |
Restricted Stock [Member] | ||||
Stock compensation expense | 715,000 | 590,000 | 1,462,000 | 1,286,000 |
Stock compensation expense | $ 715,000 | $ 614,000 | $ 1,462,000 | $ 1,334,000 |
Note 3 - Stock Based Compensation - Summary of the Award Activity of the Stock Option Plans (Details) |
6 Months Ended |
---|---|
Dec. 31, 2015
$ / shares
shares
| |
Outstanding at July 1, 2015 (in shares) | shares | 295,789 |
Outstanding at July 1, 2015 (in dollars per share) | $ / shares | $ 9.47 |
Vested and Issued (in shares) | shares | (14,950) |
Vested and Issued (in dollars per share) | $ / shares | $ 11.33 |
Outstanding at December 31, 2015 (in shares) | shares | 280,839 |
Outstanding at December 31, 2015 (in dollars per share) | $ / shares | $ 9.37 |
Exercisable at December 31, 2015 (in shares) | shares | 280,839 |
Exercisable at December 31, 2015 (in dollars per share) | $ / shares | $ 9.37 |
Note 3 - Stock Based Compensation - Summary of Restricted Stock Award Activity (Details) - Restricted Stock [Member] |
6 Months Ended |
---|---|
Dec. 31, 2015
$ / shares
shares
| |
Unvested at July 1, 2015 (in shares) | shares | 396,366 |
Unvested at July 1, 2015 (in dollars per share) | $ / shares | $ 21.13 |
Granted (in shares) | shares | 20,442 |
Granted (in dollars per share) | $ / shares | $ 10.42 |
Vested and Issued (in shares) | shares | (35,200) |
Vested and Issued (in dollars per share) | $ / shares | $ 16.13 |
Forfeited (in shares) | shares | (2,894) |
Forfeited (in dollars per share) | $ / shares | $ 19.05 |
Unvested at December 31, 2015 (in shares) | shares | 378,714 |
Unvested at December 31, 2015 (in dollars per share) | $ / shares | $ 21.03 |
Note 4 - Segment Information (Details Textual) |
6 Months Ended |
---|---|
Dec. 31, 2015 | |
Number of Reportable Segments | 3 |
Note 4 - Segment Information - Segment Reporting Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Asset Based [Member] | ||||
Operating revenues | $ 236,324 | $ 200,596 | $ 467,087 | $ 377,465 |
Operating Income (Loss) | 11,471 | 12,853 | 18,953 | 24,102 |
Asset Light Based [Member] | ||||
Operating revenues | 32,943 | 21,775 | 63,539 | 38,322 |
Operating Income (Loss) | 3,280 | $ 2,716 | 7,111 | $ 4,935 |
Equipment Leasing and Services [Member] | ||||
Operating revenues | 6,132 | 10,894 | ||
Operating Income (Loss) | (672) | 9,188 | ||
Operating revenues | 275,399 | $ 222,371 | 541,520 | $ 415,787 |
Operating Income (Loss) | $ 14,079 | $ 15,569 | $ 35,252 | $ 29,037 |
Note 4 - Segment Information - Operating Revenue by Geographic Area (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
UNITED STATES | ||||
Operating revenues | $ 241,843 | $ 184,123 | $ 474,552 | $ 337,309 |
CANADA | ||||
Operating revenues | 21,193 | 26,859 | 43,138 | 56,065 |
MEXICO | ||||
Operating revenues | 12,363 | 11,389 | 23,830 | 22,413 |
Operating revenues | $ 275,399 | $ 222,371 | $ 541,520 | $ 415,787 |
Note 5 - Income Taxes (Details Textual) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Domestic Tax Authority [Member] | Earliest Tax Year [Member] | ||||
Open Tax Year | 2012 | |||
Domestic Tax Authority [Member] | Latest Tax Year [Member] | ||||
Open Tax Year | 2014 | |||
Effective Income Tax Rate Reconciliation, Percent | 35.80% | 37.20% | 36.30% | 36.10% |
Unrecognized Tax Benefits | $ 0.5 | $ 0.5 |
Note 6 - Commitments and Contingencies (Details Textual) - USD ($) |
6 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Jun. 30, 2015 |
|
Wilmoth et al. v. Celadon Trucking Services [Member] | ||
Loss Contingency, Range of Possible Loss, Minimum | $ 0 | |
Loss Contingency, Range of Possible Loss, Maximum | 5,000,000 | |
Day et al. v. Celadon Trucking Services, Inc. [Member] | ||
Loss Contingency, Range of Possible Loss, Minimum | 0 | |
Loss Contingency, Range of Possible Loss, Maximum | $ 2,000,000 | |
Held In Trust [Member] | ||
Treasury Stock, Shares | 500,000 | |
Long-term Purchase Commitment, Amount | $ 83,500,000 | |
Letters of Credit Outstanding, Amount | $ 2,200,000 | |
Treasury Stock, Shares | 500,000 | 500,000 |
Note 7 - Lease Obligations and Long-term Debt (Details Textual) $ in Millions |
6 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Revenue Equipment Installment Notes [Member] | |
Other Long-term Debt | $ 1.2 |
Long-term Debt, Weighted Average Interest Rate | 4.90% |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 1.60% |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 3.60% |
Long-term Debt | $ 128.1 |
Long-term Line of Credit | $ 126.9 |
Note 7 - Lease Obligations and Long-term Debt - Future Minimum Leases Payments (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
2016 | $ 66,742 |
2016 | 15,560 |
2017 | 104,622 |
2017 | 12,779 |
2018 | 119,599 |
2018 | 6,437 |
2019 | 44,664 |
2019 | 348 |
2020 | 24,985 |
2020 | 333 |
Thereafter | 70,630 |
Thereafter | 667 |
Total minimum lease payments | 431,242 |
Total minimum lease payments | 36,124 |
Less amounts representing interest | 28,939 |
Present value of minimum lease payments | 402,303 |
Less current maturities | 57,762 |
Non-current portion | $ 344,541 |
Note 8 - Fair Value Measurements - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Jun. 30, 2015 |
---|---|---|
Fair Value, Inputs, Level 1 [Member] | ||
Foreign currency derivatives | ||
Fuel derivatives | ||
Fair Value, Inputs, Level 2 [Member] | ||
Foreign currency derivatives | ||
Fuel derivatives | $ (2,161) | |
Fair Value, Inputs, Level 3 [Member] | ||
Foreign currency derivatives | ||
Fuel derivatives | ||
Foreign currency derivatives | ||
Fuel derivatives | $ (2,161) |
Note 9 - Fuel Derivatives (Details Textual) $ in Millions |
6 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
bbl
gal
| |
Diesel Fuel Future Contracts [Member] | |
Derivative, Nonmonetary Notional Amount, Volume | bbl | 4,284,000 |
Derivative, Nonmonetary Notional Amount, Volume per Month | gal | 336,000 |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ | $ (2.2) |
Note 10 - Dividend (Details Textual) - $ / shares |
Jan. 22, 2016 |
Jan. 08, 2016 |
Oct. 27, 2015 |
---|---|---|---|
Subsequent Event [Member] | |||
Dividends Payable, Date of Record | Jan. 08, 2016 | ||
Dividends Payable, Date to be Paid | Jan. 22, 2016 | ||
Common Stock, Dividends, Per Share, Declared | $ 0.02 |
Note 11 - Acquisitions (Details Textual) - USD ($) $ in Millions |
1 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Jul. 31, 2015 |
|
Buckler Transport, Inc. [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 13.7 | |
FTL [Member] | ||
Payments to Acquire Businesses, Gross | $ 5.4 |
Note 12 - Goodwill and Other Intangible Assets (Details Textual) $ in Thousands |
6 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
FTL [Member] | |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 1,800 |
Goodwill, Acquired During Period | 1,800 |
Buckler Transport, Inc. [Member] | |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 1,800 |
Goodwill, Acquired During Period | 1,800 |
Goodwill, Acquired During Period | $ 3,562 |
Note 12 - Goodwill and Other Intangible Assets - Acquired Intangible Assets (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Jun. 30, 2015 |
|
Gross carrying amount | $ 8,096 | $ 8,096 |
Accumulated amortization | 1,129 | 1,048 |
Accumulated amortization | 81 | |
Net carrying amount | $ 6,967 | $ 7,048 |
Note 12 - Goodwill and Other Intangible Assets - Additions to Goodwill (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Jun. 30, 2015 |
|
Asset Based [Member] | ||
Goodwill | $ 57,551 | $ 53,989 |
Goodwill, Acquired During Period | 3,562 | |
Asset Light Based [Member] | ||
Goodwill | $ 1,368 | 1,368 |
Goodwill, Acquired During Period | ||
Goodwill | $ 58,919 | $ 55,357 |
Goodwill, Acquired During Period | $ 3,562 |
Note 13 - Equipment Leasing and Services Segment (Details Textual) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Element [Member] | ||||
Proceeds from Sale of Property, Plant, and Equipment | $ 121,300 | $ 273,900 | ||
Gain (Loss) on Disposition of Property Plant Equipment | 7,200 | 21,900 | ||
Operating Income (Loss) | 700 | 9,200 | ||
Proceeds from Sale of Property, Plant, and Equipment | 107,871 | $ 75,783 | ||
Gain (Loss) on Disposition of Property Plant Equipment | 5,479 | $ 4,010 | 18,721 | 8,568 |
Operating Income (Loss) | $ 14,079 | $ 15,569 | $ 35,252 | $ 29,037 |
Note 14 - Unconsolidated Related-party Investments (Details Textual) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | |
---|---|---|---|---|
Sep. 30, 2015 |
Dec. 31, 2015 |
Dec. 31, 2015 |
Jun. 30, 2015 |
|
19th Capital Group, LLC [Member] | Quality [Member] | ||||
Purchase of Portfolio | $ 35,800 | $ 49,400 | ||
Gain (Loss) on Sale of Portfolio, Net | 2,700 | 2,800 | ||
Deferred Revenue, Current | 4,700 | 4,700 | ||
19th Capital Group, LLC [Member] | ||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 2,000 | $ 2,000 | ||
Equity Value Participation Percent | 100.00% | |||
Preferred Return Rate | 12.00% | |||
Tiger ELS, LLC [Member] | ||||
Capital Contribution, Percent | 66.67% | |||
Deferred Revenue, Current | 26,828 | $ 26,828 | $ 31,872 | |
Capital Contribution, Percent | 33.33% | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 2,000 | $ 2,000 |
Note 16 - Change in Depreciable Lives of Property and Equipment (Details Textual) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Tractors [Member] | |||
Property, Plant and Equipment, Useful Life | 4 years | 3 years | |
Trailers [Member] | |||
Property, Plant and Equipment, Useful Life | 10 years | 7 years | |
Depreciation Expense [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | $ 2.9 | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Revenue | $ 1.7 | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Basic and Diluted Earnings Per Share | $ 0.06 |
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
:A19 0NV" O?+!9Y RB#DC7_/FN^6@7@=+^I?X[2^^S.W
M\(3REVA<[YO-*&F@Y:-T+SA]@WF$71"L4=KX)?5H':J%0HGB;VD5.JY3^E,L
MM/N$?";D*^%S%AM/1K'-+]SQJC0X$3OP<':;@X>;(.*5B>_-^K&CIHF#5^6E
MVNR+DEV"T TF$4\S9D4PKW[7(J?WZ'FDY_^F%[?T?>JP2.Z[__#?W@H426 [
MC[B]-V+"G!;,[H,)N]I3!::+5\>2&D?MTI:NU?5V/N;Q3-[A53GP#GYPTPEM
MR1F=/]EX "VB V^?/>PHZ?W[61,)K0OA)Q^;=*52XG!8'LCZ2JN_4$L#!!0
M ( +J*24B !5)AI@$ +$# 9 >&PO=V]R:W-H965T D[>8:L DUS&K ?/ @J;>!4V=0.;;-MVZ](HL*'RZ!:J^@VP4>/87
MIYCO37,58,,.K;0?[5@=^_=+K%O$E_HBFBTC3[U2_=ZVYY-\671HCW\COF]:
M =9,JL9D^L>.,8E57)4S +6ZD<8)P3NI'R=ZNVR3MA/)NN'*&>^]\C]02P,$
M% @ NHI)2"(#-T\P @ D@< !D !X;"]W;W)K -E[[MC-O 98$77MUS$+J7 BEH]M%#LCOD
M#N$!OWJ8],4 G
M.7UO(,@F)2)CC835?!;0O%3&X']KQ(0YSIB'+R;L8D\5F#9>
M'4LJ'+1+6[I4E]OYF,
&PO=V]R:W-H965T&ULC5/;;J,P$/T5RQ]0$Y*TW8@@)5VMVH>5JCYT
MGQT8P*KM86T3NG]?7PA-JDC=%SPSG,N,+\6(YLUV (Z\*ZGMEG;.]1O&;-6!
MXO8&>]#^3X-&<>=3TS+;&^!U)"G)\BR[98H+3S)A):%\)//C;I2J7$X; \D/655G\ 4$L#
M!!0 ( +J*24ARJ)]\I@$ +$# 9 >&PO=V]R:W-H965TCV.97
M[GA9&!R)[7DXN]7>PTT0\
G-SN,.O](EX6 QH7I-S\WZ=ZFA=/]_ J77T'Y#E!+ P04
M" "ZBDE(P_@'%*,! "Q P &0 'AL+W=O#74P)7':RG_&@:M0AJ=AJD;6#S[OP8/)NW 'S*
MJW(D1_J+\&,[B'I.JCIMT=&)-450!7RG2CGJMYT=U--,_QNV@=N%9./E
M/9H?Q>H_4$L#!!0 ( +J*24CGFKV,F $ &X# 9 >&PO=V]R:W-H
M965T
&PO=V]R:W-H965T
S+]+,KBLX0I+()/973#0,TL+)./(RN#@($(9 +.+*#OB@!-A/$
M2T.@<"*'AR;K_TQ&TT2W:2+3+&2;A1X;1$Z#R!@DV6V2G692TPO+1""+T#BV
M-)B$ )S 5@:+TBB.X3BV-AA"*0KSQ\7%SN)BVYWHL4'B-$BFNF.$"\L D#NK
M-M1R<(KS<6IEJ @!-!%Q;:@X"9/X<6&IL[#4=N8)@\QID#W1&(MR&9ZHRE
M9,E3G;'Q4':_X&XZ8RGYJCZQ(')G8?D3"R(_=P_ESISM@K 8A"@%$PO"8'$$
M8NBLS2X(@TDJS=*[XH*K?;8E[*!/..YMZ:D39N<89H=#]!6J??IN?@%F2^"8
M7\E#UYR1%_NR..(#^8G9H>ZXMZ%"G@YZ$]]3*HC,.'R1?:[D9\$P:,A>J-M4
M/0!S4IJ!H,?SN3]\?)3_ %!+ P04 " "ZBDE(DH**RRL" #!P &0
M 'AL+W=O VG5T']V>U]F'S =@'X"D .^-.R-K\010I"\$')'MB:A=O
M-%P8$LV,M#>IT[:&PO=V]R:W-H965T
Z&<*.AN
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M5T/Z,>XA?<.-/TABC_I81#OTF<.@02R$ITL-9,U
YDW;5V[^IE]UR
MTR2J&:V^4LX:8K;3T('M!1KZVK4?P:28EA$4>PW*#AZ=>\"]](OYN^D0
&(\@$WX,#L1EU_$)7Z.8]8)D+D_SDO+?O(\:VRC8:Z9^+AK0U
M3/CN?E7[=-SI-WPZZOB-G_;JGWYR7U^"F_I.O;[D:>\AV7>I-7OK\#=CM,(5
MR='9P