Covenant Logistics Group Inc (CVLG) Announces Q3 2023 Financial Results
CVLG reports Q3 earnings of $0.99 per diluted share and non-GAAP adjusted earnings of $1.13 per diluted share.
Asset-based segments contributed approximately 67% of total revenue, 69% of operating income, 63% of total freight revenue, and 72% of adjusted operating income in the quarter.
Asset-light segments contributed approximately 33% of total revenue, 31% of operating income, 37% of total freight revenue, and 28% of adjusted operating income in the quarter.
Company's 49% equity method investment with Transport Enterprise Leasing contributed pre-tax net income of $5.3 million, or $0.28 per share.
On October 26, 2023, Covenant Logistics Group Inc (NASDAQ:CVLG) announced its financial and operating results for the third quarter ended September 30, 2023. Despite facing a challenging freight market, the company reported third quarter earnings of $0.99 per diluted share and non-GAAP adjusted earnings of $1.13 per diluted share.
Financial Performance
CVLG's total revenue for the third quarter was $288.7 million, with freight revenue, excluding fuel surcharge, amounting to $253.4 million. The company reported an operating income of $15.1 million and an adjusted operating income of $17.9 million. The net income for the quarter was $13.5 million, with adjusted net income standing at $15.4 million.
Chairman and Chief Executive Officer, David R. Parker, commented on the results, stating:
We are pleased to report third quarter earnings of $0.99 per diluted share and non-GAAP adjusted earnings of $1.13 per diluted share. Our results were achieved in the midst of a very challenging freight market that has continued into the fourth quarter of 2023. Despite these market headwinds, we are pleased with the resiliency of our model."
Segment Performance
The company's asset-based segments contributed approximately 67% of total revenue, 69% of operating income, 63% of total freight revenue, and 72% of adjusted operating income in the quarter. The asset-light segments contributed approximately 33% of total revenue, 31% of operating income, 37% of total freight revenue, and 28% of adjusted operating income in the quarter.
Paul Bunn, the Companys President and Chief Operating Officer, commented on the truckload operations, stating:
For the quarter, total revenue in our truckload operations decreased 8.3%, to $193.7 million, while averaging 192 fewer tractors, compared to 2022."
Outlook
Looking ahead, Mr. Parker concluded:
The Companys steady performance in a weak freight market has been encouraging and reflects progress on our strategic plan. Entering 2024, we believe our more resilient operating model, together with the steps we are taking to reduce costs and inefficiencies, will continue to position Covenant to generate attractive returns and mitigate volatility across economic and freight market cycles."
For more detailed financial information, please visit the company's website at www.covenantlogistics.com/investors under the icon Earnings Info.
Explore the complete 8-K earnings release (here) from Covenant Logistics Group Inc for further details.
This article first appeared on GuruFocus.
