Covenant’s 3Q Profit Declines Due to Cargo Claim
The truckload carrier’s net income slipped to $1.9 million, or 12 cents per share, from $2 million, or 13 cents, a year earlier.
However, the most recent quarter’s results include a previously announced $7.5 million reserve for an adverse court judgment in September stemming from a cargo loss in 2008. The cargo claim resulted in a net-income reduction of $4.6 million, or 30 cents per share, after taxes, the company said.
Revenue grew 3.9% from a year ago to $177.6 million.
“Throughout the third quarter, we experienced a significant increase in demand, particularly in our expedited team-driver operations and our dedicated contract automotive offering,” CEO David Parker said in the Oct. 21 report.
Average freight revenue per total mile rose 6.7% and miles per unit increased 5.7% on a tighter overall network, and increase in the percentage of team-driven tractors and a higher seated truck percentage, the company said.
Covenant ranks No. 43 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
