Covenant reports 4Q profit, higher revenue

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Covenant Transportation Group on Thursday, Jan. 24, announced financial and operating results for the quarter and year ended Dec. 31.

For the quarter, total revenue increased 3.6 percent to $192.9 million from $186.3 million in the same quarter of 2006. Freight revenue, which excludes fuel surcharges, increased 0.1 percent to $159.5 million in the 2007 quarter from $159.3 million in the 2006 quarter. The company reported net income of $176,000 in the 2007 quarter compared to net loss of $894,000 for the fourth quarter of 2006.

“Although the profit was small, it reflected results ahead of our expectations and came despite a very difficult freight market,” said David R. Parker, chairman, president and chief executive officer of Chattanooga, Tenn.-based Covenant. “We believe our results reflect primarily company-specific initiatives executed by a united and dedicated team, and not a broader upturn in the freight environment.”

For the year ended Dec. 31, total revenue increased 4.2 percent to $712.5 million in 2007 from $683.8 million during 2006. Freight revenue increased 5.3 percent to $602.6 million in 2007 from $572.2 million in 2006. The company generated a net loss of $16.7 million compared to a net loss of $1.4 million for 2006.