Three Months Ended June 30,
|
Six Months Ended June 30,
| |||||||||||||||
($000s, except per share information)
|
2021
|
2020
|
2021
|
2020
| ||||||||||||
Total Revenue
|
$
|
256,324
|
$
|
191,689
|
$
|
477,213
|
$
|
402,502
| ||||||||
Freight Revenue, Excludes Fuel Surcharge
|
$
|
231,948
|
$
|
179,564
|
$
|
432,636
|
$
|
369,145
| ||||||||
Operating Income (Loss)
|
$
|
18,332
|
$
|
(28,950
|
)
|
$
|
28,843
|
$
|
(30,404
|
)
| ||||||
Adjusted Operating Income (1) |
$
|
19,484
|
$
|
945
|
$
|
31,147
|
$
|
222
| ||||||||
Operating Ratio
|
92.8
|
%
|
115.1
|
%
|
94.0
|
%
|
107.6
|
%
| ||||||||
Adjusted Operating Ratio (1) |
91.6
|
%
|
99.5
|
%
|
92.8
|
%
|
99.9
|
%
| ||||||||
Net Income (Loss)
|
$
|
15,417
|
$
|
(22,343
|
)
|
$
|
26,559
|
$
|
(24,146
|
)
| ||||||
Adjusted Net Income (Loss) (1) |
$
|
16,263
|
$
|
427
|
$
|
25,771
|
$
|
(839
|
)
| |||||||
Earnings (Loss) per Diluted Share
|
$
|
0.91
|
$
|
(1.31
|
)
|
$
|
1.56
|
$
|
(1.37
|
)
| ||||||
Adjusted Earnings (Loss) per Diluted Share (1) |
$
|
0.96
|
$
|
0.02
|
$
|
1.52
|
$
|
(0.04
|
)
| |||||||
(1) Represents non-GAAP measures.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
| |||||||||||||||
($000s, except statistical information)
|
2021
|
2020
|
2021
|
2020
| ||||||||||||
Combined Truckload
| ||||||||||||||||
Total Revenue
|
$
|
169,237
|
$
|
145,718
|
$
|
323,163
|
$
|
313,666
| ||||||||
Freight Revenue, excludes Fuel Surcharge
|
$
|
145,025
|
$
|
133,708
|
$
|
278,885
|
$
|
280,558
| ||||||||
Operating Income (Loss)
|
$
|
10,034
|
$
|
(26,021
|
)
|
$
|
14,446
|
$
|
(29,114
|
)
| ||||||
Adj. Operating Income (Loss) (1) |
$
|
10,635
|
$
|
(6
|
)
|
$
|
15,648
|
$
|
(2,720
|
)
| ||||||
Operating Ratio
|
94.1
|
%
|
117.9
|
%
|
95.5
|
%
|
109.3
|
%
| ||||||||
Adj. Operating Ratio (1) |
92.7
|
%
|
100.0
|
%
|
94.4
|
%
|
101.0
|
%
| ||||||||
Average Freight Revenue per Tractor per Week
|
$
|
4,551
|
$
|
3,647
|
$
|
4,340
|
$
|
3,717
| ||||||||
Average Freight Revenue per Total Mile
|
$
|
2.00
|
$
|
1.83
|
$
|
1.96
|
$
|
1.83
| ||||||||
Average Miles per Tractor per Period
|
29,571
|
25,970
|
57,367
|
52,787
| ||||||||||||
Weighted Average Tractors for Period
|
2,451
|
2,820
|
2,485
|
2,903
| ||||||||||||
Expedited
| ||||||||||||||||
Total Revenue
|
$
|
87,369
|
$
|
79,778
|
$
|
165,849
|
$
|
165,938
| ||||||||
Freight Revenue, excludes Fuel Surcharge
|
$
|
75,338
|
$
|
73,330
|
$
|
144,609
|
$
|
150,308
| ||||||||
Operating Income (Loss)
|
$
|
10,225
|
$
|
(12,844
|
)
|
$
|
16,436
|
$
|
(14,396
|
)
| ||||||
Adj. Operating Income (Loss) (1) |
$
|
10,225
|
$
|
767
|
$
|
16,436
|
$
|
(1,100
|
)
| |||||||
Operating Ratio
|
88.3
|
%
|
116.1
|
%
|
90.1
|
%
|
108.7
|
%
| ||||||||
Adj. Operating Ratio (1) |
86.4
|
%
|
99.0
|
%
|
88.6
|
%
|
100.7
|
%
| ||||||||
Average Freight Revenue per Tractor per Week
|
$
|
6,692
|
$
|
4,670
|
$
|
6,384
|
$
|
4,592
| ||||||||
Average Freight Revenue per Total Mile
|
$
|
1.93
|
$
|
1.76
|
$
|
1.90
|
$
|
1.82
| ||||||||
Average Miles per Tractor per Period
|
45,130
|
34,440
|
86,760
|
65,765
| ||||||||||||
Weighted Average Tractors for Period
|
866
|
1,208
|
876
|
1,259
| ||||||||||||
Dedicated
| ||||||||||||||||
Total Revenue
|
$
|
81,868
|
$
|
65,940
|
$
|
157,314
|
$
|
147,728
| ||||||||
Freight Revenue, excludes Fuel Surcharge
|
$
|
69,687
|
$
|
60,378
|
$
|
134,276
|
$
|
130,250
| ||||||||
Operating Income (Loss)
|
$
|
(191
|
)
|
$
|
(13,177
|
)
|
$
|
(1,990
|
)
|
$
|
(14,718
|
)
| ||||
Adj. Operating Income (Loss) (1) |
$
|
410
|
$
|
(773
|
)
|
$
|
(788
|
)
|
$
|
(1,620
|
)
| |||||
Operating Ratio
|
100.2
|
%
|
120.0
|
%
|
101.3
|
%
|
110.0
|
%
| ||||||||
Adj. Operating Ratio (1) |
99.4
|
%
|
101.3
|
%
|
100.6
|
%
|
101.2
|
%
| ||||||||
Average Freight Revenue per Tractor per Week
|
$
|
3,382
|
$
|
2,881
|
$
|
3,227
|
$
|
3,047
| ||||||||
Average Freight Revenue per Total Mile
|
$
|
2.09
|
$
|
1.91
|
$
|
2.02
|
$
|
1.85
| ||||||||
Average Miles per Tractor per Period
|
21,070
|
19,622
|
41,364
|
42,849
| ||||||||||||
Weighted Average Tractors for Period
|
1,585
|
1,612
|
1,609
|
1,644
| ||||||||||||
(1) Represents non-GAAP measures.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
| |||||||||||||||
($000s)
|
2021
|
2020
|
2021
|
2020
| ||||||||||||
Freight Revenue
|
$
|
71,635
|
$
|
34,362
|
$
|
123,032
|
$
|
65,099
| ||||||||
Operating Income (Loss)
|
$
|
7,316
|
$
|
(3,611
|
)
|
$
|
12,261
|
$
|
(2,946
|
)
| ||||||
Adj. Operating Income (Loss) (1) |
$
|
7,479
|
$
|
(349
|
)
|
$
|
12,587
|
$
|
374
| |||||||
Operating Ratio
|
89.8
|
%
|
110.5
|
%
|
90.0
|
%
|
104.5
|
%
| ||||||||
Adj. Operating Ratio (1) |
89.6
|
%
|
101.0
|
%
|
89.8
|
%
|
99.4
|
%
| ||||||||
(1) Represents non-GAAP measures.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
| |||||||||||||||
($000s)
|
2021
|
2020
|
2021
|
2020
| ||||||||||||
Freight Revenue
|
$
|
15,288
|
$
|
11,494
|
$
|
30,719
|
$
|
23,489
| ||||||||
Operating Income
|
$
|
982
|
$
|
682
|
$
|
2,136
|
$
|
1,656
| ||||||||
Adj. Operating Income (1) |
$
|
1,370
|
$
|
1,300
|
$
|
2,912
|
$
|
2,568
| ||||||||
Operating Ratio
|
93.6
|
%
|
94.1
|
%
|
93.1
|
%
|
93.0
|
%
| ||||||||
Adj. Operating Ratio (1) |
91.0
|
%
|
88.7
|
%
|
90.5
|
%
|
89.1
|
%
| ||||||||
(1) Represents non-GAAP measures.
|
Covenant Logistics Group, Inc.
| ||||||||||||||||||||||||
Key Financial and Operating Statistics
| ||||||||||||||||||||||||
Income Statement Data
| ||||||||||||||||||||||||
Three Months Ended June 30,
|
Six Months Ended June 30,
| |||||||||||||||||||||||
($s in 000s, except per share data)
|
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
| ||||||||||||||||||
Freight revenue
|
$
|
231,948
|
$
|
179,564
|
29.2
|
%
|
$
|
432,636
|
$
|
369,145
|
17.2
|
%
| ||||||||||||
Fuel surcharge revenue
|
24,376
|
12,125
|
101.0
|
%
|
44,577
|
33,357
|
33.6
|
%
| ||||||||||||||||
Total revenue
|
$
|
256,324
|
$
|
191,689
|
33.7
|
%
|
$
|
477,213
|
$
|
402,502
|
18.6
|
%
| ||||||||||||
Operating expenses:
| ||||||||||||||||||||||||
Salaries, wages, and related expenses
|
88,477
|
74,688
|
171,062
|
157,152
| ||||||||||||||||||||
Fuel expense
|
26,372
|
15,938
|
49,194
|
41,202
| ||||||||||||||||||||
Operations and maintenance
|
14,294
|
12,218
|
29,013
|
25,044
| ||||||||||||||||||||
Revenue equipment rentals and purchased transportation
|
75,455
|
47,011
|
132,691
|
93,073
| ||||||||||||||||||||
Operating taxes and licenses
|
2,960
|
3,123
|
5,545
|
6,576
| ||||||||||||||||||||
Insurance and claims
|
9,577
|
11,562
|
17,415
|
27,174
| ||||||||||||||||||||
Communications and utilities
|
1,130
|
1,782
|
2,377
|
3,351
| ||||||||||||||||||||
General supplies and expenses
|
7,752
|
11,536
|
15,934
|
19,894
| ||||||||||||||||||||
Depreciation and amortization
|
13,863
|
19,663
|
27,951
|
37,846
| ||||||||||||||||||||
Gain on disposition of property and equipment, net
|
(1,888
|
)
|
(3,451
|
)
|
(2,812
|
)
|
(4,975
|
)
| ||||||||||||||||
Impairment of long lived property & equipment
|
-
|
26,569
|
-
|
26,569
| ||||||||||||||||||||
Total operating expenses
|
237,992
|
220,639
|
448,370
|
432,906
| ||||||||||||||||||||
Operating income (Loss)
|
18,332
|
(28,950
|
)
|
28,843
|
(30,404
|
)
| ||||||||||||||||||
Interest expense, net
|
708
|
2,084
|
1,450
|
3,983
| ||||||||||||||||||||
Income (Loss) from equity method investment
|
3,382
|
530
|
6,342
|
205
| ||||||||||||||||||||
Income (Loss) from continuing operations before income taxes
|
21,006
|
(30,504
|
)
|
33,735
|
(34,182
|
)
| ||||||||||||||||||
Income tax expense (Benefit)
|
5,570
|
(7,336
|
)
|
9,716
|
(8,340
|
)
| ||||||||||||||||||
Income (Loss) from continuing operations
|
15,436
|
(23,168
|
)
|
24,019
|
(25,842
|
)
| ||||||||||||||||||
Income from discontinued operations, net of tax
|
(19
|
)
|
825
|
2,540
|
1,696
| |||||||||||||||||||
Net income (Loss)
|
$
|
15,417
|
$
|
(22,343
|
)
|
$
|
26,559
|
$
|
(24,146
|
)
| ||||||||||||||
Basic earnings (loss) per share
| ||||||||||||||||||||||||
Income (Loss) from continuing operations
|
$
|
0.92
|
$
|
(1.36
|
)
|
$
|
1.42
|
$
|
(1.47
|
)
| ||||||||||||||
Income from discontinued operations
|
$
|
(0.00
|
)
|
$
|
0.05
|
$
|
0.15
|
$
|
0.10
| |||||||||||||||
Net income (Loss)
|
$
|
0.92
|
$
|
(1.31
|
)
|
$
|
1.58
|
$
|
(1.37
|
)
| ||||||||||||||
Diluted earnings (loss) per share
| ||||||||||||||||||||||||
Income (Loss) from continuing operations
|
$
|
0.91
|
$
|
(1.36
|
)
|
$
|
1.41
|
$
|
(1.47
|
)
| ||||||||||||||
Income from discontinued operations
|
$
|
(0.00
|
)
|
$
|
0.05
|
$
|
0.15
|
$
|
0.10
| |||||||||||||||
Net income (Loss)
|
$
|
0.91
|
$
|
(1.31
|
)
|
$
|
1.56
|
$
|
(1.37
|
)
| ||||||||||||||
Basic weighted average shares outstanding (000s)
|
16,765
|
17,089
|
16,858
|
17,584
| ||||||||||||||||||||
Diluted weighted average shares outstanding (000s)
|
17,022
|
17,089
|
17,052
|
17,584
| ||||||||||||||||||||
Segment Freight Revenues
| ||||||||||||||||||||||||
Three Months Ended June 30,
|
Six Months Ended June 30,
| |||||||||||||||||||||||
($s in 000's)
|
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
| ||||||||||||||||||
Expedited - Truckload
|
$
|
75,338
|
$
|
73,330
|
2.7
|
%
|
$
|
144,609
|
$
|
150,308
|
(3.8
|
%)
| ||||||||||||
Dedicated - Truckload
|
69,687
|
60,378
|
15.4
|
%
|
134,276
|
130,250
|
3.1
|
%
| ||||||||||||||||
Combined Truckload
|
145,025
|
133,708
|
8.5
|
%
|
278,885
|
280,558
|
(0.6
|
%)
| ||||||||||||||||
Managed Freight
|
71,635
|
34,362
|
108.5
|
%
|
123,032
|
65,099
|
89.0
|
%
| ||||||||||||||||
Warehousing
|
15,288
|
11,494
|
33.0
|
%
|
30,719
|
23,489
|
30.8
|
%
| ||||||||||||||||
Consolidated Freight Revenue
|
$
|
231,948
|
$
|
179,564
|
29.2
|
%
|
$
|
432,636
|
$
|
369,146
|
17.2
|
%
| ||||||||||||
Truckload Operating Statistics
| ||||||||||||||||||||||||
Three Months Ended June 30,
|
Six Months Ended June 30,
| |||||||||||||||||||||||
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
| |||||||||||||||||||
Average freight revenue per loaded mile
|
$
|
2.24
|
$
|
2.03
|
10.1
|
%
|
$
|
2.19
|
$
|
2.03
|
7.9
|
%
| ||||||||||||
Average freight revenue per total mile
|
$
|
2.00
|
$
|
1.83
|
9.6
|
%
|
$
|
1.96
|
$
|
1.83
|
6.9
|
%
| ||||||||||||
Average freight revenue per tractor per week
|
$
|
4,551
|
$
|
3,647
|
24.8
|
%
|
$
|
4,340
|
$
|
3,717
|
16.8
|
%
| ||||||||||||
Average miles per tractor per period
|
29,571
|
25,970
|
13.9
|
%
|
57,367
|
52,787
|
8.7
|
%
| ||||||||||||||||
Weighted avg. tractors for period
|
2,451
|
2,820
|
(13.1
|
%)
|
2,485
|
2,903
|
(14.4
|
%)
| ||||||||||||||||
Tractors at end of period
|
2,407
|
2,623
|
(8.2
|
%)
|
2,407
|
2,623
|
(8.2
|
%)
| ||||||||||||||||
Trailers at end of period
|
5,314
|
6,662
|
(20.2
|
%)
|
5,314
|
6,662
|
(20.2
|
%)
| ||||||||||||||||
Selected Balance Sheet Data | ||||||||||||||||||||||||
($s in '000's, except per share data)
|
6/30/2021
|
12/31/2020
| ||||||||||||||||||||||
Total assets
|
$
|
662,463
|
$
|
676,716
| ||||||||||||||||||||
Total stockholders' equity
|
$
|
313,536
|
$
|
290,642
| ||||||||||||||||||||
Total indebtedness, net of cash
|
$
|
88,068
|
$
|
101,964
| ||||||||||||||||||||
Net Indebtedness to Capitalization Ratio
|
21.9
|
%
|
26.0
|
%
| ||||||||||||||||||||
Tangible book value per end-of-quarter basic share
|
$
|
14.82
|
$
|
13.03
|
Covenant Logistics Group, Inc.
| ||||||||||||||||||||||||
Non-GAAP Reconciliation (Unaudited)
| ||||||||||||||||||||||||
Adjusted Operating Income and Adjusted Operating Ratio (1) | ||||||||||||||||||||||||
(Dollars in thousands)
|
Three Months Ended June 30,
|
Six Months Ended June 30,
| ||||||||||||||||||||||
GAAP Presentation
|
2021
|
2020
|
bps Change
|
2021
|
2020
|
bps Change
| ||||||||||||||||||
Total revenue
|
$
|
256,324
|
$
|
191,689
|
$
|
477,213
|
$
|
402,502
| ||||||||||||||||
Total operating expenses
|
237,992
|
220,639
|
448,370
|
432,906
| ||||||||||||||||||||
Operating income (loss)
|
$
|
18,332
|
$
|
(28,950
|
)
|
$
|
28,843
|
$
|
(30,404
|
)
| ||||||||||||||
Operating ratio
|
92.8
|
%
|
115.1
|
%
|
(2,230
|
)
|
94.0
|
%
|
107.6
|
%
|
(1,360
|
)
| ||||||||||||
Non-GAAP Presentation
|
2021
|
2020
|
bps Change
|
2021
|
2020
|
bps Change
| ||||||||||||||||||
Total revenue
|
$
|
256,324
|
$
|
191,689
|
$
|
477,213
|
$
|
402,502
| ||||||||||||||||
Fuel surcharge revenue
|
(24,376
|
)
|
(12,125
|
)
|
(44,577
|
)
|
(33,357
|
)
| ||||||||||||||||
Freight revenue (total revenue, excluding fuel surcharge)
|
231,948
|
179,564
|
432,636
|
369,145
| ||||||||||||||||||||
Total operating expenses
|
237,992
|
220,639
|
448,370
|
432,906
| ||||||||||||||||||||
Adjusted for:
| ||||||||||||||||||||||||
Fuel surcharge revenue
|
(24,376
|
)
|
(12,125
|
)
|
(44,577
|
)
|
(33,357
|
)
| ||||||||||||||||
Amortization of intangibles (2) |
(1,152
|
)
|
(2,062
|
)
|
(2,304
|
)
|
(2,793
|
)
| ||||||||||||||||
Bad debt expense associated with customer bankruptcy and high credit risk customers
|
-
|
(2,617
|
)
|
-
|
(2,617
|
)
| ||||||||||||||||||
Strategic restructuring adjusting items:
| ||||||||||||||||||||||||
Gain on disposal of terminals, net
|
-
|
5,712
|
-
|
5,712
| ||||||||||||||||||||
Impairment of real estate and related tangible assets
|
-
|
(9,790
|
)
|
-
|
(9,790
|
)
| ||||||||||||||||||
Impairment of revenue equipment and related charges
|
-
|
(17,604
|
)
|
-
|
(17,604
|
)
| ||||||||||||||||||
Restructuring related severance and other
|
-
|
(1,791
|
)
|
-
|
(1,791
|
)
| ||||||||||||||||||
Abandonment of information technology infrastructure
|
-
|
(1,048
|
)
|
-
|
(1,048
|
)
| ||||||||||||||||||
Contract exit costs and other restructuring
|
-
|
(695
|
)
|
-
|
(695
|
)
| ||||||||||||||||||
Adjusted operating expenses
|
212,464
|
178,619
|
401,489
|
368,923
| ||||||||||||||||||||
Adjusted operating income
|
19,484
|
945
|
31,147
|
222
| ||||||||||||||||||||
Adjusted operating ratio
|
91.6
|
%
|
99.5
|
%
|
(790
|
)
|
92.8
|
%
|
99.9
|
%
|
(710
|
)
| ||||||||||||
(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 EPS (1) | ||||||||||||||||
(Dollars in thousands)
|
Three Months Ended June 30,
|
Six Months Ended June 30,
| ||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
GAAP Presentation - Net (loss) income
|
$
|
15,417
|
$
|
(22,343
|
)
|
$
|
26,559
|
$
|
(24,146
|
)
| ||||||
Adjusted for:
| ||||||||||||||||
Amortization of intangibles (2) |
1,152
|
2,062
|
2,304
|
2,793
| ||||||||||||
Bad debt expense associated with customer bankruptcy and high credit risk customers
|
-
|
2,617
|
-
|
2,617
| ||||||||||||
Strategic restructuring adjusting items:
| ||||||||||||||||
Discontinued operations reversal of loss contingency (3) |
-
|
-
|
(3,411
|
)
|
-
| |||||||||||
Loss (gain) on disposal of terminals, net
|
-
|
(5,712
|
)
|
-
|
(5,712
|
)
| ||||||||||
Impairment of real estate and related tangible assets
|
-
|
9,790
|
-
|
9,790
| ||||||||||||
Impairment of revenue equipment and related charges
|
-
|
17,604
|
-
|
17,604
| ||||||||||||
Restructuring related severance and other
|
-
|
1,791
|
-
|
1,791
| ||||||||||||
Abandonment of information technology infrastructure
|
-
|
1,048
|
-
|
1,048
| ||||||||||||
Contract exit costs and other restructuring
|
-
|
695
|
-
|
695
| ||||||||||||
Total adjustments before taxes
|
1,152
|
29,895
|
(1,107
|
)
|
30,626
| |||||||||||
Provision for income tax expense at effective rate
|
(306
|
)
|
(7,125
|
)
|
319
|
(7,319
|
)
| |||||||||
Tax effected adjustments
|
$
|
846
|
$
|
22,770
|
$
|
(788
|
)
|
$
|
23,307
| |||||||
Non-GAAP Presentation - Adjusted net income
|
$
|
16,263
|
$
|
427
|
$
|
25,771
|
$
|
(839
|
)
| |||||||
GAAP Presentation - Diluted (loss) earnings per share ('EPS')
|
$
|
0.91
|
$
|
(1.31
|
)
|
$
|
1.56
|
$
|
(1.37
|
)
| ||||||
Adjusted for:
| ||||||||||||||||
Amortization of intangibles (2) |
0.07
|
0.12
|
0.14
|
0.16
| ||||||||||||
Bad debt expense associated with customer bankruptcy and high credit risk customers
|
-
|
0.15
|
-
|
0.15
| ||||||||||||
Strategic restructuring adjusting items:
| ||||||||||||||||
Discontinued operations reversal of loss contingency(3) |
-
|
-
|
(0.20
|
)
|
-
| |||||||||||
Gain on sale of terminal, net
|
-
|
(0.33
|
)
|
-
|
(0.32
|
)
| ||||||||||
Impairment of real estate and related tangible assets
|
-
|
0.57
|
-
|
0.56
| ||||||||||||
Impairment of revenue equipment and related charges
|
-
|
1.03
|
-
|
1.00
| ||||||||||||
Restructuring related severance and other
|
-
|
0.10
|
-
|
0.10
| ||||||||||||
Abandonment of information technology infrastructure
|
-
|
0.06
|
-
|
0.06
| ||||||||||||
Contract exit costs and other restructuring
|
-
|
0.04
|
-
|
0.04
| ||||||||||||
Total adjustments before taxes
|
0.07
|
1.75
|
(0.06
|
)
|
1.75
| |||||||||||
Provision for income tax expense at effective rate
|
(0.02
|
)
|
(0.42
|
)
|
0.02
|
(0.42
|
)
| |||||||||
Tax effected adjustments
|
$
|
0.05
|
$
|
1.33
|
$
|
(0.04
|
)
|
$
|
1.33
| |||||||
Non-GAAP Presentation - Adjusted EPS
|
$
|
0.96
|
$
|
0.02
|
$
|
1.52
|
$
|
(0.04
|
)
| |||||||
(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) 'Discontinued Operations reversal of loss contingency' reflects the non-cash reversal of a previously recorded loss contingency that is no longer considered probable. The original loss contingency was recorded in Q4 2020 as a result of our disposal of our former accounts receivable factoring segment, TFS.
|
Covenant Logistics Group, Inc.
| ||||||||||||||||||||||||||||||||||||||||
Non-GAAP Reconciliation (Unaudited)
| ||||||||||||||||||||||||||||||||||||||||
Adjusted Operating Income and Adjusted Operating Ratio (1) | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Three Months Ended June 30,
| |||||||||||||||||||||||||||||||||||||||
GAAP Presentation
|
2021
|
2020
| ||||||||||||||||||||||||||||||||||||||
Expedited
|
Dedicated
|
Combined Truckload
|
Managed Freight
|
Warehousing
|
Expedited
|
Dedicated
|
Combined Truckload
|
Managed Freight
|
Warehousing
| |||||||||||||||||||||||||||||||
Total revenue
|
$
|
87,369
|
$
|
81,868
|
$
|
169,237
|
$
|
71,635
|
$
|
15,452
|
$
|
79,778
|
$
|
65,940
|
$
|
145,718
|
$
|
34,362
|
$
|
11,609
| ||||||||||||||||||||
Total operating expenses
|
77,144
|
82,059
|
$
|
159,203
|
$
|
64,319
|
14,470
|
92,622
|
79,117
|
171,739
|
37,973
|
10,927
| ||||||||||||||||||||||||||||
Operating income (loss)
|
$
|
10,225
|
$
|
(191
|
)
|
$
|
10,034
|
$
|
7,316
|
$
|
982
|
$
|
(12,844
|
)
|
$
|
(13,177
|
)
|
$
|
(26,021
|
)
|
$
|
(3,611
|
)
|
$
|
682
| |||||||||||||||
Operating ratio
|
88.3
|
%
|
100.2
|
%
|
94.1
|
%
|
89.8
|
%
|
93.6
|
%
|
116.1
|
%
|
120.0
|
%
|
117.9
|
%
|
110.5
|
%
|
94.1
|
%
| ||||||||||||||||||||
Non-GAAP Presentation
| ||||||||||||||||||||||||||||||||||||||||
Total revenue
|
$
|
87,369
|
$
|
81,868
|
$
|
169,237
|
$
|
71,635
|
$
|
15,452
|
$
|
79,778
|
$
|
65,940
|
$
|
145,718
|
$
|
34,362
|
$
|
11,609
| ||||||||||||||||||||
Fuel surcharge revenue
|
(12,031
|
)
|
(12,181
|
)
|
(24,212
|
)
|
-
|
(164
|
)
|
(6,448
|
)
|
(5,562
|
)
|
(12,010
|
)
|
-
|
(115
|
)
| ||||||||||||||||||||||
Freight revenue (total revenue, excluding fuel surcharge)
|
75,338
|
69,687
|
145,025
|
71,635
|
15,288
|
73,330
|
60,378
|
133,708
|
34,362
|
11,494
| ||||||||||||||||||||||||||||||
Total operating expenses
|
77,144
|
82,059
|
159,203
|
64,319
|
14,470
|
92,622
|
79,117
|
171,739
|
37,973
|
10,927
| ||||||||||||||||||||||||||||||
Adjusted for:
| ||||||||||||||||||||||||||||||||||||||||
Fuel surcharge revenue
|
(12,031
|
)
|
(12,181
|
)
|
(24,212
|
)
|
-
|
(164
|
)
|
(6,448
|
)
|
(5,562
|
)
|
(12,010
|
)
|
-
|
(115
|
)
| ||||||||||||||||||||||
Amortization of intangibles(2) |
-
|
(601
|
)
|
(601
|
)
|
(163
|
)
|
(388
|
)
|
-
|
(1,196
|
)
|
(1,196
|
)
|
(248
|
)
|
(618
|
)
| ||||||||||||||||||||||
Bad debt expense associated with customer bankruptcy and high credit risk customers
|
-
|
-
|
-
|
-
|
-
|
(1,009
|
)
|
(830
|
)
|
(1,839
|
)
|
(778
|
)
|
-
| ||||||||||||||||||||||||||
Strategic restructuring adjusting items:
| ||||||||||||||||||||||||||||||||||||||||
Insurance policy erosion
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
| ||||||||||||||||||||||||||||||
Gain on disposal of terminals, net
|
-
|
-
|
-
|
-
|
-
|
3,133
|
2,579
|
5,712
|
-
|
-
| ||||||||||||||||||||||||||||||
Impairment of real estate and related tangible assets
|
-
|
-
|
-
|
-
|
-
|
(452
|
)
|
(373
|
)
|
(825
|
)
|
-
|
-
| |||||||||||||||||||||||||||
Impairment of revenue equipment and related charges
|
-
|
-
|
-
|
-
|
-
|
(13,345
|
)
|
(10,988
|
)
|
(24,333
|
)
|
(2,236
|
)
|
-
| ||||||||||||||||||||||||||
Restructuring related severance and other
|
-
|
-
|
-
|
-
|
-
|
(982
|
)
|
(809
|
)
|
(1,791
|
)
|
-
|
-
| |||||||||||||||||||||||||||
Abandonment of information technology infrastructure
|
-
|
-
|
-
|
-
|
-
|
(575
|
)
|
(473
|
)
|
(1,048
|
)
|
-
|
-
| |||||||||||||||||||||||||||
Contract exit costs and other restructuring
|
-
|
-
|
-
|
-
|
-
|
(381
|
)
|
(314
|
)
|
(695
|
)
|
-
|
-
| |||||||||||||||||||||||||||
Adjusted operating expenses
|
65,113
|
69,277
|
134,390
|
64,156
|
13,918
|
72,563
|
61,151
|
133,714
|
34,711
|
10,194
| ||||||||||||||||||||||||||||||
Adjusted operating income (loss)
|
10,225
|
410
|
10,635
|
7,479
|
1,370
|
767
|
(773
|
)
|
(6
|
)
|
(349
|
)
|
1,300
| |||||||||||||||||||||||||||
Adjusted operating ratio
|
86.4
|
%
|
99.4
|
%
|
92.7
|
%
|
89.6
|
%
|
91.0
|
%
|
99.0
|
%
|
101.3
|
%
|
100.0
|
%
|
101.0
|
%
|
88.7
|
%
| ||||||||||||||||||||
Six Months Ended June 30,
| ||||||||||||||||||||||||||||||||||||||||
GAAP Presentation |
2021 | 2020 | ||||||||||||||||||||||||||||||||||||||
Expedited
|
Dedicated
|
Combined Truckload
|
Managed Freight
|
Warehousing
|
Expedited
|
Dedicated
|
Combined Truckload
|
Managed Freight
|
Warehousing
| |||||||||||||||||||||||||||||||
Total revenue
|
$
|
165,849
|
$
|
157,314
|
$
|
323,163
|
$
|
123,032
|
$
|
31,018
|
$
|
165,938
|
$
|
147,728
|
$
|
313,666
|
$
|
65,099
|
$
|
23,737
| ||||||||||||||||||||
Total operating expenses
|
149,413
|
$
|
159,304
|
$
|
308,717
|
$
|
110,771
|
$
|
28,882
|
$
|
180,334
|
$
|
162,446
|
$
|
342,780
|
$
|
68,045
|
$
|
22,081
| |||||||||||||||||||||
Operating income (loss)
|
$
|
16,436
|
$
|
(1,990
|
)
|
$
|
14,446
|
$
|
12,261
|
$
|
2,136
|
$
|
(14,396
|
)
|
$
|
(14,718
|
)
|
$
|
(29,114
|
)
|
$
|
(2,946
|
)
|
$
|
1,656
| |||||||||||||||
Operating ratio
|
90.1
|
%
|
101.3
|
%
|
95.5
|
%
|
90.0
|
%
|
93.1
|
%
|
108.7
|
%
|
110.0
|
%
|
109.3
|
%
|
104.5
|
%
|
93.0
|
%
| ||||||||||||||||||||
Non-GAAP Presentation
| ||||||||||||||||||||||||||||||||||||||||
Total revenue
|
$
|
165,849
|
$
|
157,314
|
$
|
323,163
|
$
|
123,032
|
$
|
31,018
|
$
|
165,938
|
$
|
147,728
|
$
|
313,666
|
$
|
65,099
|
$
|
23,737
| ||||||||||||||||||||
Fuel surcharge revenue
|
(21,240
|
)
|
(23,038
|
)
|
$
|
(44,278
|
)
|
-
|
(299
|
)
|
(15,630
|
)
|
(17,478
|
)
|
(33,108
|
)
|
-
|
(248
|
)
| |||||||||||||||||||||
Freight revenue (total revenue, excluding fuel surcharge)
|
144,609
|
134,276
|
278,885
|
123,032
|
30,719
|
150,308
|
130,250
|
280,558
|
65,099
|
23,489
| ||||||||||||||||||||||||||||||
Total operating expenses
|
149,413
|
159,304
|
308,717
|
110,771
|
28,882
|
180,334
|
162,446
|
342,780
|
68,045
|
22,081
| ||||||||||||||||||||||||||||||
Adjusted for:
| ||||||||||||||||||||||||||||||||||||||||
Fuel surcharge revenue
|
(21,240
|
)
|
(23,038
|
)
|
(44,278
|
)
|
-
|
(299
|
)
|
(15,630
|
)
|
(17,478
|
)
|
(33,108
|
)
|
-
|
(248
|
)
| ||||||||||||||||||||||
Amortization of intangibles(2) |
-
|
(1,202
|
)
|
(1,202
|
)
|
(326
|
)
|
(776
|
)
|
-
|
(1,575
|
)
|
(1,575
|
)
|
(306
|
)
|
(912
|
)
| ||||||||||||||||||||||
Bad debt expense associated with customer bankruptcy and high credit risk customers
|
-
|
-
|
-
|
-
|
-
|
(985
|
)
|
(854
|
)
|
(1,839
|
)
|
(778
|
)
|
-
| ||||||||||||||||||||||||||
Strategic restructuring adjusting items:
| ||||||||||||||||||||||||||||||||||||||||
Insurance policy erosion
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
| ||||||||||||||||||||||||||||||
Gain on disposal of terminals, net
|
-
|
-
|
-
|
-
|
-
|
3,060
|
2,652
|
5,712
|
-
|
-
| ||||||||||||||||||||||||||||||
Impairment of real estate and related tangible assets
|
-
|
-
|
-
|
-
|
-
|
(442
|
)
|
(383
|
)
|
(825
|
)
|
-
|
-
| |||||||||||||||||||||||||||
Impairment of revenue equipment and related charges
|
-
|
-
|
-
|
-
|
-
|
(13,036
|
)
|
(11,297
|
)
|
(24,333
|
)
|
(2,236
|
)
|
-
| ||||||||||||||||||||||||||
Restructuring related severance and other
|
-
|
-
|
-
|
-
|
-
|
(960
|
)
|
(831
|
)
|
(1,791
|
)
|
-
|
-
| |||||||||||||||||||||||||||
Abandonment of information technology infrastructure
|
-
|
-
|
-
|
-
|
-
|
(561
|
)
|
(487
|
)
|
(1,048
|
)
|
-
|
-
| |||||||||||||||||||||||||||
Contract exit costs and other restructuring
|
-
|
-
|
-
|
-
|
-
|
(372
|
)
|
(323
|
)
|
(695
|
)
|
-
|
-
| |||||||||||||||||||||||||||
Adjusted operating expenses
|
128,173
|
135,064
|
263,237
|
110,445
|
27,807
|
151,408
|
131,870
|
283,278
|
64,725
|
20,921
| ||||||||||||||||||||||||||||||
Adjusted operating income (loss)
|
16,436
|
(788
|
)
|
15,648
|
12,587
|
2,912
|
(1,100
|
)
|
(1,620
|
)
|
(2,720
|
)
|
374
|
2,568
| ||||||||||||||||||||||||||
Adjusted operating ratio
|
88.6
|
%
|
100.6
|
%
|
94.4
|
%
|
89.8
|
%
|
90.5
|
%
|
100.7
|
%
|
101.2
|
%
|
101.0
|
%
|
99.4
|
%
|
89.1
|
%
| ||||||||||||||||||||
(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.
|
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Disclaimer
Covenant Logistics Group Inc. published this content on 21 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2021 21:27:06 UTC.