Covenant Transportation Group reports 3Q net loss

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Covenant Transportation Group on Monday, Oct. 27, announced that total revenue for the third quarter ended Sept. 30 increased 20.9 percent to $212.5 million from $175.8 million in the same quarter of 2007. Freight revenue, which excludes fuel surcharges, increased 9.7 percent to $162.9 million from $148.5 million. The company reported a net loss of $3.4 million compared to a net loss of $3.6 million.

“The third quarter was a time of great promise and great frustration for Covenant Transportation Group,” said David Parker, chairman, president and chief executive officer of the Chattanooga, Tenn.-based company. “From an operating perspective, we improved several key metrics during the quarter, and we continued to bring down our truckload operating costs as a percentage of truckload revenue in most areas.”

But Parker said the quarter was frustrating from a bottom-line perspective, however, because of two specific items:

  • Despite the company’s best overall safety performance in at least eight years — based on U.S. Department of Transportation reportable accidents per million miles — a small number of severe accidents resulted in a negative quarter-over-quarter impact of about $3.6 million pretax; and
  • As a result of the company closing its amended and restated revolving credit facility, it recorded a non-cash write-down of $726,000 relating to partial extinguishment of the former credit facility.