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Covenant Transportation Group Announces First Quarter Financial and Operating Results
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For the quarter, total revenue decreased 26.4%, to $133.8 million from $181.7 million in the same quarter of 2008. Freight revenue, which for these purposes excludes fuel surcharges, decreased 17.8%, to $122.1 million in the 2009 quarter from $148.6 million in the 2008 quarter. The Company measures freight revenue because management believes that fuel surcharges tend to be a volatile source of revenue and the removal of such surcharges affords a more consistent basis for comparing results of operations from period to period. The Company reported net loss of $5.5 million, or ($0.39) per basic and diluted share, in the first quarter of 2009 compared to a net loss of $7.8 million, or ($0.56) per basic and diluted share, for the first quarter of 2008.
Chairman, President, and Chief Executive Officer, David R. Parker, made the following comments: "Our results for the quarter reflected the economic and business trends we had anticipated at the beginning of the year. Weak freight demand, excess tractor and trailer capacity in the truckload industry, and significant rate pressure from customers and freight brokers led to an approximately 8.2% reduction in average freight revenue per tractor per week. This reduction in asset utilization was partially offset by lower fuel expense, strong safety performance, and cost-control efforts across all of our companies. For the quarter, our operating ratio (operating expenses, net of fuel surcharge revenue, as a percentage of freight revenue) improved by 240 basis points. I am proud of the way our team responded to these difficult operating conditions with cost controls, capital preservation, and personal sacrifices.
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