Covenant Reports 3Q Loss

Covenant Transportation Group reported a third-quarter loss, citing higher expenses and fuel costs, and a charge.

Its loss was $11.2 million, or 76 cents per share, compared with a profit of $1.9 million, or 13 cents, a year ago.

That included a $9.4 million, or 64 cents per share, goodwill impairment charge, the truckload carrier said late Wednesday.

Its operating loss was $9.8 million, compared with operating income of $8.2 million a year ago.

Revenue fell 2.1% to $161.4 million, while freight revenue dropped 9% to $126.5 million.

In addition to higher fuel prices, driver wages rose 2.6 cents per mile from a year earlier, while Covenant experienced a 1.4 cent per mile increase in workers' compensation expenses, Chairman and CEO David Parker said in a statement.

Covenant Transportation Group is ranked No. 36 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.