Covenant announces second quarter expectations

user-gravatar
Updated Jul 2, 2010

Covenant1 E1277995284607Covenant Transportation Group, Inc. announced it expects $0.12 to $0.20 diluted earnings per share for the second quarter of 2010.regarding financial results for the second fiscal quarter of 2010. In the second quarter of 2009, the company reported a net loss of $0.22 per diluted share.

“The expected improvement versus our previous breakeven outlook is attributable to further improvements in freight rates, miles per truck, internal revenue generation initiatives and cost control efforts,” says David R. Parker, chairman, president and chief executive officer. “Based on the quarter to date results, we expect an improvement in average miles per tractor of approximately 7%-8% and in average revenue per total mile (excluding fuel surcharges) of approximately 3% compared to the second quarter of 2009. In addition, our cost control efforts are expected to provide positive results, primarily in the areas of net fuel, compensation, and general expenses, offset somewhat by higher claims expense. The expected higher claims expense relates primarily to adverse developments regarding the damages in connection with a few casualty claims incurred prior to the beginning of this quarter. Based on our financial and operating results to date, we will be in compliance with our financial debt covenant at the quarter ended June 30, 2010.”