“For the quarter, Managed Freight’s freight revenue increased $22.0 million, or 51.3%, from the prior year quarter. Operating income for the
Managed Freight segment was $5.4 million and adjusted operating income was $5.5 million, compared with $1.3 million and $1.4 million, respectively, in the fourth quarter of 2019. The operating ratio for the Managed Freight segment was 91.7%
and adjusted operating ratio was 91.5%, compared with 97.0% and 96.9% in the fourth quarter of 2019, respectively. Managed Freight’s favorable results for the quarter were primarily attributable to brokerage operations. Brokerage freight
revenue increased by $24.2 million, or 71.6%, to $58.1 million from $33.9 million in the prior year quarter, driving significant improvement to the segment’s operating ratio. The significant improvements to brokerage freight revenue and
operating income are primarily attributable to the robust freight market, executing various spot rate opportunities, cost structure improvements that were implemented as part of our strategic plan, and handling overflow freight from both
Expedited and Dedicated truckload operations.”
“For the quarter, Warehousing’s operating revenue increased 25.4% versus the prior year quarter. The increase in revenue was
primarily driven by the full quarter impact of new customer business that began operations in the third quarter of 2020. Operating income for the Warehousing segment was $1.1 million and adjusted operating income was $1.5 million, compared
with $1.3 million and $1.6 million, respectively, in the fourth quarter of 2019. Operating ratio for the Warehousing segment was 92.4% and adjusted operating ratio was 89.6%, compared with 89.1% and 86.4%, respectively, in the fourth
quarter of 2019. The change in operating ratio and adjusted operating ratio is primarily driven by an increase in direct labor costs as a result of combined expenses of employees and contract labor needed to meet customer demand despite
labor shortages related to the COVID-19 pandemic.”
TFS Update
As previously disclosed, on July 8, 2020, we sold a portfolio of accounts receivable, contract rights, and associated assets (the “Portfolio”)
to a subsidiary of Triumph Bancorp, Inc. (“Triumph”). After the transaction closed, we settled a dispute with Triumph over certain assets included in the Portfolio, pursuant to which we retained up to $45 million of total indemnification
exposure. The probability and amount of expected indemnification was not estimable at the time of the settlement or as of the filing of our third quarter 2020 results. During the fourth quarter, triggering events caused us to assess our
likely indemnification obligation, which resulted in recording a $44.2 million contingent loss charge, which reflects nearly all of our potential exposure. No actual claims for indemnification have been made by Triumph. However, we
believe such claims are probable.
Capitalization, Liquidity and Capital Expenditures
Paul Bunn, the Company’s Executive Vice President and Chief Financial Officer, added the following comments: “At December 31,
2020, our total indebtedness, net of cash (“net indebtedness”), decreased by $51.1 million to approximately $102.0 million as compared to the September 30, 2020 balance of $153.1 million. In addition, our debt to total capitalization
decreased to 26.0% at December 31, 2020 from 46.5% at December 31, 2019.
“At December 31, 2020, we had cash and cash equivalents totaling $8.4 million. Under our ABL credit facility, we had $15.0
million borrowings outstanding, undrawn letters of credit outstanding of $29.7 million, and available borrowing capacity of $65.3 million at December 31, 2020. The sole financial covenant under our ABL facility is a fixed charge coverage
ratio covenant that is tested only when available borrowing capacity is below a certain threshold. Based on availability as of December 31, 2020, no testing was required, and we do not expect testing to be required in the foreseeable
future. We also have $45.0 million available under a line of credit with Triumph to fund indemnification obligations should we decide to use it.
“Our net capital investment for the quarter provided net proceeds of $5.3 million as compared to $6.5 million for the prior
year period. For 2021, we expect net capital expenditures to range from $35 million to $45 million, including disposal of $15.0 million in assets held for sale at December 31, 2020. The average age of our tractor fleet was 22 months at
December 31, 2020 and is expected to grow moderately during 2021 before an expected increase in net capital expenditures in 2022.
“Based on our current capital structure and expected 2021 net capital expenditures, we have substantial flexibility to
maintain moderate financial leverage and evaluate the full range of capital allocation alternatives, including internal growth, acquisitions, further debt paydown, and returning capital to our stockholders, even if we are called upon to
fund the entire risk exposure to Triumph. Accordingly, we appreciate the vote of confidence from our Board of Directors in authorizing a new stock repurchase program to maintain the full range of options.”
Outlook
Mr. Parker concluded, “Going forward, our focus will be continued execution of our strategic plan, which consists of steadily
and intentionally growing the percentage of our business generated by Dedicated, Managed Freight, and Warehousing segments, reducing unnecessary overhead, and improving our safety, service, and productivity. This will be a gradual process
of diversifying our customer base with less seasonal and cyclical exposure, improving legacy contracts, and investing in systems, technology, and people to support the growth of these previously under-invested areas. Approximately one-half
of our Dedicated fleet operates under contracts that generate insufficient returns and require replacement or renegotiation. The freight environment and our new business pipeline are both currently robust, which we believe will support our
commercial plan. While this will take time, we believe our existing pipeline will produce ongoing sequential progress during 2021.
“Going into 2021 we are facing cost increases from the end of our short term COVID-19 programs, increased wages, and higher
insurance and claims expense. Effective January 4, 2021, we implemented the largest pay increase in the Company’s 35-year history for our Expedited driving force in an effort to increase our team count to targeted levels. In addition, we
have replaced our former $9 million in excess of $1 million layer of auto liability insurance with a new $7 million excess of $3 million policy that will run from February 1, 2021, through March 31, 2024. While the combination of the
increased retention and premiums is forecasted to increase our insurance and claims cost, eliminating the gap in coverage created in the third quarter of 2020 that resulted in a self-insured retention of $10 million per claim has been a
focus area to minimize forward looking volatility.
“Taking into account the commercial and cost environment, we expect results for the first half of 2021 will significantly
exceed the prior year’s adjusted results for the comparable period. Our comparative results for the second half and full year of 2021 will depend on factors such as our ability to reduce driver turnover, the number and significance of auto
liability claims, and the outcome of contract negotiations with customers, many of which won’t see a full quarter impact until the third quarter of 2021. Over the longer term, we expect to be a stronger, more profitable, and more
predictable business with the opportunity for significant and sustained value creation.”
Stock Repurchase Program Authorization
On January 25, the Board of Directors approved a stock repurchase program authorizing the purchase of up to $40 million of the Company's Class
A common stock from time-to-time based upon market conditions and other factors. The stock may be repurchased on the open market or in privately negotiated transactions. The repurchased shares will be held as treasury stock and may be
used for general corporate purposes as the Board may determine. The Company did not place a limit on the duration of the repurchase program. The stock repurchase program does not obligate the Company to repurchase any specific number of
shares and the Company may suspend or terminate the program at any time without prior notice.
Management Transition
The Company also reported that John Tweed, Co-President and Chief Operating Officer, will transition to a multi-year
consulting role effective July 3, 2021. Mr. Tweed will continue to focus on improving legacy dedicated contracts, expanding the Warehousing segment, and improving return on capital, as well as providing support and leadership to the next
generation of leaders in sales and operations.
Conference Call Information
The Company will host a live conference call tomorrow, January 26th, 2021, at 11:00 a.m. Eastern time to discuss the quarter.
Individuals may access the call by dialing 877-271-1828 (U.S./Canada) and 800-756-3333 (International), access code 72840331. An audio replay will be available for one week following the call at 877-919-4059, access code 48768713. For
additional financial and statistical information regarding the Company that is expected to be discussed during the conference call, please visit our website at www.covenanttransport.com/investors
under the icon “Earnings Info.”
Covenant Logistics Group, Inc., through its subsidiaries, offers a portfolio of transportation and logistics services to
customers throughout the United States. Primary services include asset-based expedited, dedicated, and irregular route truckload capacity, as well as asset-light warehousing, transportation management, and freight brokerage capability. In
addition, Transport Enterprise Leasing is an affiliated company providing revenue equipment sales and leasing services to the trucking industry. Covenant's Class A common stock is traded on the NASDAQ Global Select market under the symbol,
“CVLG.”
(1) See GAAP to Non-GAAP Reconciliation in the schedules included with this release. In addition to operating income (loss), operating ratio, net income (loss), and earnings (loss) per diluted share, we use adjusted operating
income (loss), adjusted operating ratio, adjusted net income (loss), and adjusted earnings (loss) per diluted share, non-GAAP measures, as key measures of profitability. Adjusted operating income (loss), adjusted operating ratio, adjusted
net income (loss), and adjusted diluted earnings (loss) per share are not substitutes for operating income (loss), operating ratio, net income (loss), and earnings (loss) per diluted share measured in accordance with GAAP. There are
limitations to using non-GAAP financial measures. We believe our presentation of these non-GAAP financial measures are useful because it provides investors and securities analysts with supplemental information that we use internally for
purposes of assessing profitability. Further, our Board and management use non-GAAP operating income (loss), operating ratio, net income (loss), and earnings (loss) per diluted share measures on a supplemental basis to remove items that
may not be an indicator of performance from period-to-period. Although we believe that adjusted operating income (loss), adjusted operating ratio, adjusted net income (loss), and adjusted diluted earnings (loss) per share improves
comparability in analyzing our period-to-period performance, they could limit comparability to other companies in our industry, if those companies define such measures differently. Because of these limitations, adjusted operating income
(loss), adjusted operating ratio, adjusted net income (loss), and adjusted earnings (loss) per diluted share should not be considered measures of income generated by our business or discretionary cash available to us to invest in the
growth of our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis.
This press release contains certain statements that may be considered forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such
statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as “expects,” “estimates,”
“projects,” “believes,” “anticipates,” “plans,” “could,” “would,” “may,” “will,” "intends," “outlook,” “focus,” “seek,” “potential,” “mission,” “continue,” “goal,” “target,” “objective,” derivations thereof, and similar terms and phrases.
Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and
actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In this press release, the statements
relating to implementation of our strategic plan and associated costs, our tractor fleet plan, including acquisitions, dispositions, use of proceeds therefrom, fleet size, future rates and volumes, our ability to control costs and
grow our business, our ability to improve safety, future indemnification obligations related to the Portfolio, future repurchases under the stock repurchase program, if any, the management transition, and expected insurance expense, as well
as the statements under “Outlook” are forward-looking statements. The following factors, among others could cause actual results to differ materially from those in the forward-looking statements: elevated experience in the frequency and
severity of claims relating to accident, cargo, workers' compensation, health, and other claims, increased insurance premiums, higher self-insured retentions, reduced insurance coverage, fluctuations in claims expenses that result from our
self-insured retention amounts, including in our excess layers and in respect of claims for which we commute policy coverage, and the requirement that we pay additional premiums if there are claims in certain of those layers, differences
between estimates used in establishing and adjusting claims reserves and actual results over time, adverse changes in claims experience and loss development factors, or additional changes in management's estimates of liability based upon
such experience and development factors that cause our expectations of insurance and claims expense to be inaccurate or otherwise impacts our results; government regulations imposed on our captive insurance companies; changes in the market
condition for used revenue equipment and real estate that impact our capital expenditures and our ability to dispose of revenue equipment and real estate on the schedule and for the prices we expect; increases in the prices paid for new
revenue equipment that impact our capital expenditures and our results generally; changes in management’s estimates of the need for new tractors and trailers; the effect of any reduction in tractor purchases on the number of tractors that
will be accepted by manufacturers under tradeback arrangements; our inability to generate sufficient cash from operations and obtain financing on favorable terms to meet our significant ongoing capital requirements; our ability to respond
to changes in our industry or business in light of our substantial indebtedness and lease obligations; our ability to sustain or increase profitability in the future; the risks related to our Factoring segment; our ability to maintain
compliance with the provisions of our credit agreements, particularly financial covenants in our revolving credit facility; excess tractor or trailer capacity in the trucking industry; decreased demand for our services or loss of one or
more of our major customers; our ability to renew Dedicated service offering contracts on the terms and schedule we expect; surplus inventories, recessionary economic cycles, and downturns in customers' business cycles; strikes, work
slowdowns, or work stoppages at the Company, customers, ports, or other shipping related facilities; increases or rapid fluctuations in fuel prices, as well as fluctuations in hedging activities and surcharge collection, including, but not
limited to, changes in customer fuel surcharge policies and increases in fuel surcharge bases by customers; the volume and terms of diesel purchase commitments and hedging contracts; interest rates, fuel taxes, tolls, and license and
registration fees; increases in compensation for and difficulty in attracting and retaining qualified drivers and independent contractors; our ability to retain our key employees; the risks associated with engaging independent contractors
to provide a portion of our capacity; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, and intermodal competitors; our dependence on third-party providers, particularly in our
Managed Freight segment; regulatory requirements that increase costs, decrease efficiency, or impact the availability or effective driving time of our drivers and other drivers in the industry, including the terms and exemptions from
hours-of-service and electronic log requirements for drivers and the Federal Motor Carrier Safety Administration’s Compliance, Safety, Accountability program applicable to driver standards and the methodology for determining a carrier’s
Department of Transportation safety rating; the proper functioning and availability of our management information and communication systems and other information technology assets; volatility of our stock price; impairment of goodwill and
other intangible assets; future outcomes of litigation; uncertainties in the interpretation of the 2017 Tax Cuts and Jobs Act and other tax laws; the ability to reduce, or control increases in, operating costs; changes in the Company’s
business strategy that require the acquisition of new businesses, the disposition of businesses, and the ability to identify acceptable acquisition candidates and appropriate assets or businesses to be disposed, consummate acquisitions and
dispositions, and integrate acquired operations; our ability to achieve our strategic plan; fluctuations in the results of Transport Enterprise Leasing, which are included as equity in income (loss) of affiliate in our financial statements;
our Chairman of the Board and Chief Executive Officer and his wife control a large portion of our stock and have substantial control over us, which could limit other stockholders' ability to influence the outcome of key transactions,
including changes of control; changes in methods of determining LIBOR or replacement of LIBOR; future share repurchases, if any; the impact of the recent coronavirus outbreak or other similar outbreaks; any indemnification obligations
related to the sale of the Portfolio to Triumph; the material weakness in our internal control over financial reporting as of June 30, 2020, which we believe was eliminated upon the sale of the Portfolio to Triumph; erosion of available
limits in our aggregate insurance policies; and future share repurchases, if any. Readers should review and consider these factors along with the various disclosures by the Company in its press releases, stockholder reports, and filings
with the Securities and Exchange Commission. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information.
For further information contact:
Paul Bunn, Executive Vice President & Chief Financial Officer
PBunn@covenanttransport.com
For copies of Company information contact:
Brooke McKenzie, Executive Administrative Assistant
BMcKenzie@covenanttransport.com
|
Covenant Logistics Group, Inc.
|
|
Key Financial and Operating Statistics
|
| |
|
Income Statement Data
|
| |
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
($s in 000s, except per share data)
|
|
2020
|
|
|
2019
|
|
|
% Change
|
|
|
2020
|
|
|
2019
|
|
|
% Change
|
|
|
Freight revenue
|
|
$
|
210,856
|
|
|
$
|
207,311
|
|
|
|
1.7
|
%
|
|
$
|
776,218
|
|
|
$
|
791,260
|
|
|
|
(1.9
|
%)
|
|
Fuel surcharge revenue
|
|
|
14,372
|
|
|
|
23,245
|
|
|
|
(38.2
|
%)
|
|
|
62,343
|
|
|
|
94,127
|
|
|
|
(33.8
|
%)
|
|
Total revenue
|
|
$
|
225,228
|
|
|
$
|
230,556
|
|
|
|
(2.3
|
%)
|
|
$
|
838,561
|
|
|
$
|
885,387
|
|
|
|
(5.3
|
%)
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages, and related expenses
|
|
|
79,059
|
|
|
|
82,218
|
|
|
|
|
|
|
|
315,023
|
|
|
|
320,498
|
|
|
|
|
|
|
Fuel expense
|
|
|
18,179
|
|
|
|
29,449
|
|
|
|
|
|
|
|
77,443
|
|
|
|
115,307
|
|
|
|
|
|
|
Operations and maintenance
|
|
|
11,412
|
|
|
|
14,691
|
|
|
|
|
|
|
|
48,368
|
|
|
|
59,506
|
|
|
|
|
|
|
Revenue equipment rentals and purchased transportation
|
|
|
71,028
|
|
|
|
58,387
|
|
|
|
|
|
|
|
222,705
|
|
|
|
204,655
|
|
|
|
|
|
|
Operating taxes and licenses
|
|
|
2,066
|
|
|
|
3,305
|
|
|
|
|
|
|
|
11,621
|
|
|
|
13,024
|
|
|
|
|
|
|
Insurance and claims
|
|
|
12,562
|
|
|
|
11,964
|
|
|
|
|
|
|
|
53,052
|
|
|
|
47,719
|
|
|
|
|
|
|
Communications and utilities
|
|
|
1,241
|
|
|
|
1,699
|
|
|
|
|
|
|
|
5,898
|
|
|
|
6,968
|
|
|
|
|
|
|
General supplies and expenses
|
|
|
6,575
|
|
|
|
8,596
|
|
|
|
|
|
|
|
34,143
|
|
|
|
30,089
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
14,199
|
|
|
|
19,272
|
|
|
|
|
|
|
|
65,472
|
|
|
|
80,502
|
|
|
|
|
|
|
Gain on disposition of property and equipment, net
|
|
|
(659
|
)
|
|
|
(691
|
)
|
|
|
|
|
|
|
(7,706
|
)
|
|
|
(1,650
|
)
|
|
|
|
|
|
Impairment of long lived property & equipment
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
26,569
|
|
|
|
-
|
|
|
|
|
|
|
Total operating expenses
|
|
|
215,662
|
|
|
|
228,890
|
|
|
|
|
|
|
|
852,588
|
|
|
|
876,618
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
9,566
|
|
|
|
1,666
|
|
|
|
|
|
|
|
(14,027
|
)
|
|
|
8,769
|
|
|
|
|
|
|
Interest expense, net
|
|
|
924
|
|
|
|
2,170
|
|
|
|
|
|
|
|
6,841
|
|
|
|
8,218
|
|
|
|
|
|
|
Income from equity method investment
|
|
|
(2,973
|
)
|
|
|
531
|
|
|
|
|
|
|
|
(3,944
|
)
|
|
|
(7,017
|
)
|
|
|
|
|
|
Income (loss) from continuing operations before income taxes
|
|
|
11,615
|
|
|
|
(1,035
|
)
|
|
|
|
|
|
|
(16,924
|
)
|
|
|
7,568
|
|
|
|
|
|
|
Income tax expense (benefit)
|
|
|
4,166
|
|
|
|
(1,296
|
)
|
|
|
|
|
|
|
(2,804
|
)
|
|
|
2,349
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
7,449
|
|
|
|
261
|
|
|
|
|
|
|
|
(14,120
|
)
|
|
|
5,219
|
|
|
|
|
|
|
Income from discontinued operations, net of tax
|
|
|
(33,114
|
)
|
|
|
901
|
|
|
|
|
|
|
|
(28,598
|
)
|
|
|
3,258
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(25,665
|
)
|
|
$
|
1,162
|
|
|
|
|
|
|
$
|
(42,718
|
)
|
|
$
|
8,477
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
0.43
|
|
|
$
|
0.01
|
|
|
|
|
|
|
$
|
(0.81
|
)
|
|
$
|
0.28
|
|
|
|
|
|
|
Income from discontinued operations
|
|
$
|
(1.93
|
)
|
|
$
|
0.05
|
|
|
|
|
|
|
$
|
(1.65
|
)
|
|
$
|
0.18
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(1.50
|
)
|
|
$
|
0.06
|
|
|
|
|
|
|
$
|
(2.46
|
)
|
|
$
|
0.46
|
|
|
|
|
|
|
Diluted earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
0.43
|
|
|
$
|
0.01
|
|
|
|
|
|
|
$
|
(0.81
|
)
|
|
$
|
0.28
|
|
|
|
|
|
|
Income from discontinued operations
|
|
$
|
(1.93
|
)
|
|
$
|
0.05
|
|
|
|
|
|
|
$
|
(1.65
|
)
|
|
$
|
0.17
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(1.50
|
)
|
|
$
|
0.06
|
|
|
|
|
|
|
$
|
(2.46
|
)
|
|
$
|
0.45
|
|
|
|
|
|
|
Basic weighted average shares outstanding (000s)
|
|
|
17,135
|
|
|
|
18,462
|
|
|
|
|
|
|
|
17,358
|
|
|
|
18,435
|
|
|
|
|
|
|
Diluted weighted average shares outstanding (000s)
|
|
|
17,135
|
|
|
|
18,681
|
|
|
|
|
|
|
|
17,358
|
|
|
|
18,635
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Segment Freight Revenues
|
| |
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
($s in 000's)
|
|
|
2020
|
|
|
|
2019
|
|
|
% Change
|
|
|
|
2020
|
|
|
|
2019
|
|
|
% Change
|
|
|
Expedited - Truckload
|
|
$
|
69,434
|
|
|
$
|
80,643
|
|
|
|
(13.9
|
%)
|
|
$
|
291,471
|
|
|
$
|
314,839
|
|
|
|
(7.4
|
%)
|
|
Dedicated - Truckload
|
|
|
61,972
|
|
|
|
72,202
|
|
|
|
(14.2
|
%)
|
|
|
255,503
|
|
|
|
290,602
|
|
|
|
(12.1
|
%)
|
|
Combined Truckload
|
|
|
131,406
|
|
|
|
152,845
|
|
|
|
(14.0
|
%)
|
|
|
546,974
|
|
|
|
605,441
|
|
|
|
(9.7
|
%)
|
|
Managed Freight
|
|
|
64,884
|
|
|
|
42,891
|
|
|
|
51.3
|
%
|
|
|
177,579
|
|
|
|
138,614
|
|
|
|
28.1
|
%
|
|
Warehousing
|
|
|
14,566
|
|
|
|
11,575
|
|
|
|
25.8
|
%
|
|
|
51,665
|
|
|
|
47,205
|
|
|
|
9.4
|
%
|
|
Consolidated Freight Revenue
|
|
$
|
210,856
|
|
|
$
|
207,311
|
|
|
|
1.7
|
%
|
|
$
|
776,218
|
|
|
$
|
791,260
|
|
|
|
(1.9
|
%)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Truckload Operating Statistics
|
| |
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
| |
|
|
2020
|
|
|
|
2019
|
|
|
% Change
|
|
|
|
2020
|
|
|
|
2019
|
|
|
% Change
|
|
|
Average freight revenue per loaded mile
|
|
$
|
2.11
|
|
|
$
|
2.09
|
|
|
|
0.7
|
%
|
|
$
|
2.04
|
|
|
$
|
2.07
|
|
|
|
(1.4
|
%)
|
|
Average freight revenue per total mile
|
|
$
|
1.90
|
|
|
$
|
1.89
|
|
|
|
0.4
|
%
|
|
$
|
1.85
|
|
|
$
|
1.87
|
|
|
|
(1.2
|
%)
|
|
Average freight revenue per tractor per week
|
|
$
|
4,032
|
|
|
$
|
3,857
|
|
|
|
4.5
|
%
|
|
$
|
3,872
|
|
|
$
|
3,778
|
|
|
|
2.5
|
%
|
|
Average miles per tractor per period
|
|
|
27,867
|
|
|
|
26,774
|
|
|
|
4.1
|
%
|
|
|
109,622
|
|
|
|
105,379
|
|
|
|
4.0
|
%
|
|
Weighted avg. tractors for period
|
|
|
2,480
|
|
|
|
3,015
|
|
|
|
(17.8
|
%)
|
|
|
2,702
|
|
|
|
3,073
|
|
|
|
(12.1
|
%)
|
|
Tractors at end of period
|
|
|
2,461
|
|
|
|
3,021
|
|
|
|
(18.5
|
%)
|
|
|
2,461
|
|
|
|
3,021
|
|
|
|
(18.5
|
%)
|
|
Trailers at end of period
|
|
|
5,647
|
|
|
|
6,739
|
|
|
|
(16.2
|
%)
|
|
|
5,647
|
|
|
|
6,739
|
|
|
|
(16.2
|
%)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Selected Balance Sheet Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in '000's, except per share data)
|
|
12/31/2020
|
|
|
12/31/2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
667,513
|
|
|
$
|
881,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
$
|
290,642
|
|
|
$
|
350,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total indebtedness, net of cash
|
|
$
|
101,963
|
|
|
$
|
304,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Indebtedness to Capitalization Ratio
|
|
|
26.0
|
%
|
|
|
46.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per end-of-quarter basic share
|
|
$
|
13.03
|
|
|
$
|
15.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covenant Logistics Group, Inc.
|
|
Non-GAAP Reconciliation (Unaudited)
|
|
Adjusted Operating Income and Adjusted Operating Ratio (1)
|
| |
|
(Dollars in thousands)
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
GAAP Presentation
|
|
2020
|
|
|
2019
|
|
|
bps Change
|
|
|
2020
|
|
|
2019
|
|
|
bps Change
|
|
|
Total revenue
|
|
$
|
225,228
|
|
|
$
|
230,556
|
|
|
|
|
|
$
|
838,561
|
|
|
$
|
885,387
|
|
|
|
|
|
Total operating expenses
|
|
|
215,662
|
|
|
|
228,890
|
|
|
|
|
|
|
852,588
|
|
|
|
876,618
|
|
|
|
|
|
Operating income (loss)
|
|
$
|
9,566
|
|
|
$
|
1,666
|
|
|
|
|
|
$
|
(14,027
|
)
|
|
$
|
8,769
|
|
|
|
|
|
Operating ratio
|
|
|
95.8
|
%
|
|
|
99.3
|
%
|
|
|
(350
|
)
|
|
|
101.7
|
%
|
|
|
99.0
|
%
|
|
|
270
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Presentation
|
|
|
2020
|
|
|
|
2019
|
|
|
bps Change
|
|
|
|
2020
|
|
|
|
2019
|
|
|
bps Change
|
|
|
Total revenue
|
|
$
|
225,228
|
|
|
$
|
230,556
|
|
|
|
|
|
|
$
|
838,561
|
|
|
$
|
885,387
|
|
|
|
|
|
|
Fuel surcharge revenue
|
|
|
(14,372
|
)
|
|
|
(23,245
|
)
|
|
|
|
|
|
|
(62,343
|
)
|
|
|
(94,127
|
)
|
|
|
|
|
|
Freight revenue (total revenue, excluding fuel surcharge)
|
|
|
210,856
|
|
|
|
207,311
|
|
|
|
|
|
|
|
776,218
|
|
|
|
791,260
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
215,662
|
|
|
|
228,890
|
|
|
|
|
|
|
|
852,588
|
|
|
|
876,618
|
|
|
|
|
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel surcharge revenue
|
|
|
(14,372
|
)
|
|
|
(23,245
|
)
|
|
|
|
|
|
|
(62,343
|
)
|
|
|
(94,127
|
)
|
|
|
|
|
|
Amortization of intangibles (2)
|
|
|
(1,152
|
)
|
|
|
(731
|
)
|
|
|
|
|
|
|
(5,097
|
)
|
|
|
(2,924
|
)
|
|
|
|
|
|
Bad debt expense associated with customer bankruptcy and high credit risk customers
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
(2,617
|
)
|
|
|
-
|
|
|
|
|
|
|
Insurance policy erosion
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
(4,447
|
)
|
|
|
-
|
|
|
|
|
|
|
Strategic restructuring adjusting items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) gain on disposal of terminals, net
|
|
|
(972
|
)
|
|
|
-
|
|
|
|
|
|
|
|
4,740
|
|
|
|
-
|
|
|
|
|
|
|
Impairment of real estate and related tangible assets
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
(9,790
|
)
|
|
|
-
|
|
|
|
|
|
|
Impairment of revenue equipment and related charges
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
(17,604
|
)
|
|
|
-
|
|
|
|
|
|
|
Restructuring related severance and other
|
|
|
(1,543
|
)
|
|
|
-
|
|
|
|
|
|
|
|
(4,334
|
)
|
|
|
-
|
|
|
|
|
|
|
Abandonment of information technology infrastructure
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
(1,048
|
)
|
|
|
-
|
|
|
|
|
|
|
Contract exit costs and other restructuring
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
(695
|
)
|
|
|
-
|
|
|
|
|
|
|
Adjusted operating expenses
|
|
|
197,623
|
|
|
|
204,914
|
|
|
|
|
|
|
|
749,353
|
|
|
|
779,567
|
|
|
|
|
|
|
Adjusted operating income
|
|
|
13,233
|
|
|
|
2,397
|
|
|
|
|
|
|
|
26,865
|
|
|
|
11,693
|
|
|
|
|
|
|
Adjusted operating ratio
|
|
|
93.7
|
%
|
|
|
98.8
|
%
|
|
|
(510
|
)
|
|
|
96.5
|
%
|
|
|
98.5
|
%
|
|
|
(200
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Pursuant to the requirements
of Regulation G, this table reconciles consolidated GAAP operating income and operating ratio to consolidated non-GAAP Adjusted operating income and Adjusted operating ratio.
|
|
|
(2) "Amortization of intangibles"
reflects the non-cash amortization expense relating to intangible assets.
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Reconciliation (Unaudited)
|
|
Adjusted Net Income and Adjusted Adjusted EPS (1)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
| |
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
GAAP Presentation - Net (loss)
income
|
|
$
|
(25,665
|
)
|
|
$
|
1,162
|
|
|
$
|
(42,718
|
)
|
|
$
|
8,477
|
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles (2)
|
|
|
1,152
|
|
|
|
731
|
|
|
|
5,097
|
|
|
|
2,924
|
|
|
Bad debt expense associated with customer bankruptcy and high credit risk customers
|
|
|
-
|
|
|
|
-
|
|
|
|
2,617
|
|
|
|
-
|
|
|
Insurance policy erosion
|
|
|
-
|
|
|
|
-
|
|
|
|
4,447
|
|
|
|
-
|
|
|
Strategic restructuring adjusting items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations loss contingency, net (3)
|
|
|
44,151
|
|
|
|
-
|
|
|
|
40,431
|
|
|
|
-
|
|
|
Loss (gain) on disposal of terminals, net
|
|
|
972
|
|
|
|
-
|
|
|
|
(4,740
|
)
|
|
|
-
|
|
|
Impairment of real estate and related tangible assets
|
|
|
-
|
|
|
|
-
|
|
|
|
9,790
|
|
|
|
-
|
|
|
Impairment of revenue equipment and related charges
|
|
|
-
|
|
|
|
-
|
|
|
|
17,604
|
|
|
|
-
|
|
|
Restructuring related severance and other
|
|
|
1,543
|
|
|
|
-
|
|
|
|
4,334
|
|
|
|
-
|
|
|
Abandonment of information technology infrastructure
|
|
|
-
|
|
|
|
-
|
|
|
|
1,048
|
|
|
|
-
|
|
|
Contract exit costs and other restructuring
|
|
|
-
|
|
|
|
-
|
|
|
|
695
|
|
|
|
-
|
|
|
Total adjustments before taxes
|
|
|
47,818
|
|
|
|
731
|
|
|
|
81,323
|
|
|
|
2,924
|
|
|
Provision for income tax expense at effective rate (4)
|
|
|
(11,715
|
)
|
|
|
(20
|
)
|
|
|
(19,924
|
)
|
|
|
-
|
|
|
Tax effected adjustments
|
|
$
|
36,103
|
|
|
$
|
711
|
|
|
$
|
61,399
|
|
|
$
|
2,924
|
|
|
Non-GAAP Presentation - Adjusted net income
|
|
$
|
10,438
|
|
|
$
|
1,873
|
|
|
$
|
18,681
|
|
|
$
|
11,401
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Presentation - Diluted
(loss) earnings per share ("EPS")
|
|
$
|
(1.50
|
)
|
|
$
|
0.06
|
|
|
$
|
(2.46
|
)
|
|
$
|
0.45
|
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles (2)
|
|
|
0.07
|
|
|
|
0.04
|
|
|
|
0.29
|
|
|
|
0.16
|
|
|
Bad debt expense associated with customer bankruptcy and high credit risk customers
|
|
|
-
|
|
|
|
-
|
|
|
|
0.15
|
|
|
|
-
|
|
|
Insurance policy erosion and premium reinstatement expense
|
|
|
-
|
|
|
|
-
|
|
|
|
0.26
|
|
|
|
-
|
|
|
Strategic restructuring adjusting items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations loss contingency, net (3)
|
|
|
2.58
|
|
|
|
-
|
|
|
|
2.33
|
|
|
|
-
|
|
|
Loss (gain) on sale of terminal, net
|
|
|
0.06
|
|
|
|
-
|
|
|
|
(0.27
|
)
|
|
|
-
|
|
|
Impairment of real estate and related tangible assets
|
|
|
-
|
|
|
|
-
|
|
|
|
0.56
|
|
|
|
-
|
|
|
Impairment of revenue equipment and related charges
|
|
|
-
|
|
|
|
-
|
|
|
|
1.01
|
|
|
|
-
|
|
|
Restructuring related severance and other
|
|
|
0.09
|
|
|
|
-
|
|
|
|
0.25
|
|
|
|
-
|
|
|
Abandonment of information technology infrastructure
|
|
|
-
|
|
|
|
-
|
|
|
|
0.06
|
|
|
|
-
|
|
|
Contract exit costs and other restructuring
|
|
|
-
|
|
|
|
-
|
|
|
|
0.04
|
|
|
|
-
|
|
|
Total adjustments before taxes
|
|
|
2.79
|
|
|
|
0.04
|
|
|
|
4.69
|
|
|
|
0.16
|
|
|
Provision for income tax expense at effective rate (4)
|
|
|
(0.68
|
)
|
|
|
-
|
|
|
|
(1.15
|
)
|
|
|
-
|
|
|
Tax effected adjustments
|
|
$
|
2.11
|
|
|
$
|
0.04
|
|
|
$
|
3.54
|
|
|
$
|
0.16
|
|
|
Non-GAAP Presentation - Adjusted
EPS
|
|
$
|
0.61
|
|
|
$
|
0.10
|
|
|
$
|
1.08
|
|
|
$
|
0.61
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Pursuant to the requirements
of Regulation G, this table reconciles consolidated GAAP net income to consolidated non-GAAP adjusted net income and consolidated GAAP diluted earnings per share to non-GAAP consolidated Adjusted EPS.
|
|
|
(2) "Amortization of intangibles"
reflects the non-cash amortization expense relating to intangible assets.
|
|
|
|
|
|
|
|
|
|
|
(3) A $3,720 gain on disposal of
TFS was recognized in Q3 2020, but a contingent liability was subsequently recognized in Q4 related to the indemnification of TBK.
|
|
|
(4) Year-to-date 2019 includes
the non-cash reversal of a portion of a previously recorded federal income tax credit that was settled with the IRS during the third quarter of 2019 totaling $455 and the recording of a reserve for an uncertain tax position that
was previously recorded as a tax benefit in a prior year totaling $394, where new information effected the tax position.
|
|
|
Covenant Logistics Group, Inc.
|
|
Non-GAAP Reconciliation (Unaudited)
|
|
Adjusted Operating Income and Adjusted Operating Ratio (1)
|
| |
|
(Dollars in thousands)
|
|
For the three months ended December 31,
|
|
|
GAAP Presentation
|
|
2020
|
|
|
2019
|
|
| |
|
Expedited
|
|
|
Dedicated
|
|
|
Truckload
|
|
|
Managed Freight
|
|
|
Warehousing
|
|
|
Expedited
|
|
|
Dedicated
|
|
|
Truckload
|
|
|
Managed Freight
|
|
|
Warehousing
|
|
|
Total revenue
|
|
$
|
75,855
|
|
|
$
|
69,819
|
|
|
$
|
145,674
|
|
|
$
|
64,884
|
|
|
$
|
14,670
|
|
|
$
|
90,856
|
|
|
$
|
85,112
|
|
|
$
|
175,968
|
|
|
$
|
42,891
|
|
|
$
|
11,697
|
|
|
Total operating expenses
|
|
|
71,073
|
|
|
|
71,533
|
|
|
$
|
142,606
|
|
|
$
|
59,509
|
|
|
|
13,548
|
|
|
|
90,252
|
|
|
|
86,630
|
|
|
|
176,882
|
|
|
|
41,588
|
|
|
|
10,421
|
|
|
Operating income (loss)
|
|
$
|
4,782
|
|
|
$
|
(1,714
|
)
|
|
$
|
3,068
|
|
|
$
|
5,375
|
|
|
$
|
1,122
|
|
|
$
|
604
|
|
|
$
|
(1,518
|
)
|
|
$
|
(914
|
)
|
|
$
|
1,303
|
|
|
$
|
1,276
|
|
|
Operating ratio
|
|
|
93.7
|
%
|
|
|
102.5
|
%
|
|
|
97.9
|
%
|
|
|
91.7
|
%
|
|
|
92.4
|
%
|
|
|
99.3
|
%
|
|
|
101.8
|
%
|
|
|
100.5
|
%
|
|
|
97.0
|
%
|
|
|
89.1
|
%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Presentation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
75,855
|
|
|
$
|
69,819
|
|
|
$
|
145,674
|
|
|
$
|
64,884
|
|
|
$
|
14,670
|
|
|
$
|
90,856
|
|
|
$
|
85,112
|
|
|
$
|
175,968
|
|
|
$
|
42,891
|
|
|
$
|
11,697
|
|
|
Fuel surcharge revenue
|
|
|
(6,421
|
)
|
|
|
(7,847
|
)
|
|
|
(14,268
|
)
|
|
|
-
|
|
|
|
(104
|
)
|
|
|
(10,213
|
)
|
|
|
(12,910
|
)
|
|
|
(23,123
|
)
|
|
|
-
|
|
|
|
(122
|
)
|
|
Freight revenue (total revenue, excluding fuel surcharge)
|
|
|
69,434
|
|
|
|
61,972
|
|
|
|
131,406
|
|
|
|
64,884
|
|
|
|
14,566
|
|
|
|
80,643
|
|
|
|
72,202
|
|
|
|
152,845
|
|
|
|
42,891
|
|
|
|
11,575
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
71,073
|
|
|
|
71,533
|
|
|
|
142,606
|
|
|
|
59,509
|
|
|
|
13,548
|
|
|
|
90,252
|
|
|
|
86,630
|
|
|
|
176,882
|
|
|
|
41,588
|
|
|
|
10,421
|
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel surcharge revenue
|
|
|
(6,421
|
)
|
|
|
(7,847
|
)
|
|
|
(14,268
|
)
|
|
|
-
|
|
|
|
(104
|
)
|
|
|
(10,213
|
)
|
|
|
(12,910
|
)
|
|
|
(23,123
|
)
|
|
|
-
|
|
|
|
(122
|
)
|
|
Amortization of intangibles (2)
|
|
|
-
|
|
|
|
(601
|
)
|
|
|
(601
|
)
|
|
|
(164
|
)
|
|
|
(387
|
)
|
|
|
-
|
|
|
|
(379
|
)
|
|
|
(379
|
)
|
|
|
(58
|
)
|
|
|
(294
|
)
|
|
Bad debt expense associated with customer bankruptcy and high credit risk customers
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Strategic restructuring adjusting items:
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Insurance policy erosion and premium reinstatement expense
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Gain on sale of terminal
|
|
|
(514
|
)
|
|
|
(458
|
)
|
|
|
(972
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Impairment of real estate and related tangible assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Impairment of revenue equipment and related charges
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Restructuring related severance and other
|
|
|
(815
|
)
|
|
|
(728
|
)
|
|
|
(1,543
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Abandonment of information technology infrastructure
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Contract exit costs and other restructuring
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Adjusted operating expenses
|
|
|
63,323
|
|
|
|
61,899
|
|
|
|
125,222
|
|
|
|
59,345
|
|
|
|
13,057
|
|
|
|
80,039
|
|
|
|
73,341
|
|
|
|
153,380
|
|
|
|
41,530
|
|
|
|
10,005
|
|
|
Adjusted operating income (loss)
|
|
|
6,111
|
|
|
|
73
|
|
|
|
6,184
|
|
|
|
5,539
|
|
|
|
1,509
|
|
|
|
604
|
|
|
|
(1,139
|
)
|
|
|
(535
|
)
|
|
|
1,361
|
|
|
|
1,570
|
|
|
Adjusted operating ratio
|
|
|
91.2
|
%
|
|
|
99.9
|
%
|
|
|
95.3
|
%
|
|
|
91.5
|
%
|
|
|
89.6
|
%
|
|
|
99.3
|
%
|
|
|
101.6
|
%
|
|
|
100.4
|
%
|
|
|
96.9
|
%
|
|
|
86.4
|
%
|
| |
|
For the twelve months ended December 31,
|
|
|
GAAP Presentation
|
|
2020
|
|
|
2019
|
|
| |
|
Expedited
|
|
|
Dedicated
|
|
|
Truckload
|
|
|
Managed Freight
|
|
|
Warehousing
|
|
|
Expedited
|
|
|
Dedicated
|
|
|
Truckload
|
|
|
Managed Freight
|
|
|
Warehousing
|
|
|
Total revenue
|
|
$
|
320,201
|
|
|
$
|
288,652
|
|
|
$
|
608,853
|
|
|
$
|
177,579
|
|
|
$
|
52,128
|
|
|
$
|
356,521
|
|
|
$
|
342,473
|
|
|
$
|
698,994
|
|
|
$
|
138,615
|
|
|
$
|
47,778
|
|
|
Total operating expenses
|
|
|
327,239
|
|
|
$
|
304,188
|
|
|
$
|
631,427
|
|
|
$
|
173,097
|
|
|
$
|
48,065
|
|
|
$
|
357,781
|
|
|
$
|
341,285
|
|
|
$
|
699,066
|
|
|
$
|
135,292
|
|
|
$
|
42,256
|
|
|
Operating (loss) income
|
|
$
|
(7,038
|
)
|
|
$
|
(15,536
|
)
|
|
$
|
(22,574
|
)
|
|
$
|
4,482
|
|
|
$
|
4,063
|
|
|
$
|
(1,260
|
)
|
|
$
|
1,188
|
|
|
$
|
(72
|
)
|
|
$
|
3,323
|
|
|
$
|
5,522
|
|
|
Operating ratio
|
|
|
102.2
|
%
|
|
|
105.4
|
%
|
|
|
103.7
|
%
|
|
|
97.5
|
%
|
|
|
92.2
|
%
|
|
|
100.4
|
%
|
|
|
99.7
|
%
|
|
|
100.0
|
%
|
|
|
97.6
|
%
|
|
|
88.4
|
%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Presentation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
320,201
|
|
|
$
|
288,652
|
|
|
$
|
608,853
|
|
|
$
|
177,579
|
|
|
$
|
52,128
|
|
|
$
|
356,521
|
|
|
$
|
342,473
|
|
|
$
|
698,994
|
|
|
$
|
138,615
|
|
|
$
|
47,778
|
|
|
Fuel surcharge revenue
|
|
|
(28,731
|
)
|
|
|
(33,149
|
)
|
|
$
|
(61,880
|
)
|
|
|
-
|
|
|
|
(463
|
)
|
|
|
(41,682
|
)
|
|
|
(51,871
|
)
|
|
|
(93,553
|
)
|
|
|
-
|
|
|
|
(573
|
)
|
|
Freight revenue (total revenue, excluding fuel surcharge)
|
|
|
291,470
|
|
|
|
255,503
|
|
|
|
546,973
|
|
|
|
177,579
|
|
|
|
51,665
|
|
|
|
314,839
|
|
|
|
290,602
|
|
|
|
605,441
|
|
|
|
138,615
|
|
|
|
47,205
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
327,239
|
|
|
|
304,188
|
|
|
|
631,427
|
|
|
|
173,097
|
|
|
|
48,065
|
|
|
|
357,781
|
|
|
|
341,285
|
|
|
|
699,066
|
|
|
|
135,292
|
|
|
|
42,256
|
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel surcharge revenue
|
|
|
(28,731
|
)
|
|
|
(33,149
|
)
|
|
|
(61,880
|
)
|
|
|
-
|
|
|
|
(463
|
)
|
|
|
(41,682
|
)
|
|
|
(51,871
|
)
|
|
|
(93,553
|
)
|
|
|
-
|
|
|
|
(573
|
)
|
|
Amortization of intangibles (2)
|
|
|
-
|
|
|
|
(2,777
|
)
|
|
|
(2,777
|
)
|
|
|
(633
|
)
|
|
|
(1,686
|
)
|
|
|
-
|
|
|
|
(1,516
|
)
|
|
|
(1,516
|
)
|
|
|
(232
|
)
|
|
|
(1,176
|
)
|
|
Bad debt expense associated with customer bankruptcy and high credit risk customers
|
|
|
(972
|
)
|
|
|
(867
|
)
|
|
|
(1,839
|
)
|
|
|
(778
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Strategic restructuring adjusting items:
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Insurance policy erosion and premium reinstatement expense
|
|
|
(2,627
|
)
|
|
|
(1,820
|
)
|
|
|
(4,447
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Gain on sale of terminal
|
|
|
2,505
|
|
|
|
2,235
|
|
|
|
4,740
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Impairment of real estate and related tangible assets
|
|
|
(3,991
|
)
|
|
|
(3,563
|
)
|
|
|
(7,554
|
)
|
|
|
(2,236
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Impairment of revenue equipment and related charges
|
|
|
(8,046
|
)
|
|
|
(9,558
|
)
|
|
|
(17,604
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Restructuring related severance and other
|
|
|
(2,290
|
)
|
|
|
(2,044
|
)
|
|
|
(4,334
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Abandonment of information technology infrastructure
|
|
|
(554
|
)
|
|
|
(494
|
)
|
|
|
(1,048
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Contract exit costs and other restructuring
|
|
|
(367
|
)
|
|
|
(328
|
)
|
|
|
(695
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Adjusted operating expenses
|
|
|
282,166
|
|
|
|
251,823
|
|
|
|
533,989
|
|
|
|
169,450
|
|
|
|
45,916
|
|
|
|
316,099
|
|
|
|
287,898
|
|
|
|
603,997
|
|
|
|
135,060
|
|
|
|
40,507
|
|
|
Adjusted operating income (loss)
|
|
|
9,304
|
|
|
|
3,680
|
|
|
|
12,984
|
|
|
|
8,129
|
|
|
|
5,749
|
|
|
|
(1,260
|
)
|
|
|
2,704
|
|
|
|
1,444
|
|
|
|
3,555
|
|
|
|
6,698
|
|
|
Adjusted operating ratio
|
|
|
96.8
|
%
|
|
|
98.6
|
%
|
|
|
97.8
|
%
|
|
|
97.1
|
%
|
|
|
88.9
|
%
|
|
|
100.4
|
%
|
|
|
99.1
|
%
|
|
|
99.8
|
%
|
|
|
97.5
|
%
|
|
|
85.8
|
%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Pursuant to the
requirements of Regulation G, this table reconciles consolidated GAAP operating income and operating ratio to consolidated non-GAAP Adjusted operating income and Adjusted operating ratio.
|
|
|
(2) "Amortization of
intangibles" reflects the non-cash amortization expense relating to intangible assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
