Covenant Logistics Group, Inc. announced financial and operating results for the second quarter ended June 30, 2024, including freight revenue growth.
Chairman and Chief Executive Officer David R. Parker commented, “We are pleased to report second quarter earnings of $0.88 per diluted share and non-GAAP adjusted earnings of $1.04 per diluted share.
“Highlights of our second quarter’s results include year over year freight revenue growth of 5.3 percent and adjusted operating income growth of 15 percent, further demonstrating the value proposition of our diversified logistics services in the midst of a freight environment that has remained challenged with general market headwinds.
"Our team has worked hard to navigate through the prolonged down cycle by capitalizing on new value-added commercial opportunities where available, allocating equipment investments toward more profitable operations and controlling costs.
“Our 49 percent equity method investment with Transport Enterprise Leasing contributed pre-tax net income of $4.1 million, or $0.23 per share, compared to $5.4 million, or $0.29 per share, in the 2023 quarter. The decrease in pre-tax net income for TEL was primarily a result of deterioration in the equipment market, suppressing gains on sale of used equipment, and increased interest expense associated with higher interest rates on equipment related debt.”