Covenant swings to 4Q, full-year profit

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Covenant Transportation Group Inc. on Wednesday, Jan. 26, announced financial and operating results for the fourth quarter and year ended Dec. 31. For the quarter, total revenue increased 3.9 percent to $163.9 million from $157.8 million in the same quarter of 2009. Freight revenue excluding fuel surcharges increased 0.6 percent to $136.6 million from $135.8 million. Net income was $0.7 million compared to a net loss of $2.7 million.

For the year, total revenue increased 10.4 percent to $649.7 million from $588.7 million for 2009. Freight revenue increased 5.0 percent to $546.3 million from $520.5 million. Net income was $3.3 million compared to a net loss, including impairment charges, of $25.0 million; on a non-GAAP basis, without impairment charges, the company’s 2009 net loss would have been $13.5 million.

“I am pleased to report a profitable fourth quarter and full year for 2010,” said David Parker, chairman, president and chief executive officer. “This performance marks the midpoint of a dramatic turnaround in Covenant’s performance over the past several years. I use the word midpoint to emphasize that much work remains to be done to achieve acceptable margins and returns on our investment. Nevertheless, I would like to thank our customers, our drivers, the rest of our personnel and the suppliers who have assisted and encouraged our efforts.”

Parker said Covenant intends to continue its intense focus on profitability to ensure that the company remains strong for all stakeholders. “We continue to make decisions and take steps to position the company for the long-term results that we desire and our stakeholders expect,” he said.