CVLG
Covenant Logistics Group 3rd Quarter 2024 Conference Call
Mr. Grant - Good morning everyone and welcome to the Covenant Logistics Group third quarter 2024 conference call.
As a reminder:
This call will contain forward-looking statements under the Private Securities Litigation Reform Act, which are subject to risks and uncertainties that could cause actual results to differ materially. Please review our SEC filings and most recent risk factors. We undertake no obligation to publicly update or revise any forward-looking statements.
A copy of the prepared comments www.covenantlogistics.cominvestors. Koehl.
and additional financial information is available on our website at I am joined on the call today by David Parker, Paul Bunn and Dustin
Our core business performed well in the third quarter, overcoming softer than anticipated volumes in our Expedited division as a result of lingering weakness in the overall freight environment. Compared to a year ago, consolidated freight revenue increased by approximately $5.2 million, or 2.1%, to $258.6 million and adjusted operating income increased by $1.5 million, or 8.3%, to $19.3 million.
The year over year increase in freight revenue was primarily derived from new business growth within our Dedicated segment, partially offset by reductions from our Expedited segment and Managed Freight segment. The growth in adjusted operating income was principally derived from both Dedicated and Warehousing segments, offset by reductions from Expedited and Managed Freight.
Adjusted net income of $15.2 million for the current quarter was essentially flat with the third quarter of 2023 primarily because higher adjusted operating income was offset by a $0.6 million increase in pre-tax interest expense and a $1.3 million reduction in pre-tax earnings from our equipment leasing company investment, TEL.
Key highlights include:
Now Paul will provide a little more color on the items affecting the individual business segments:
Thanks Tripp,
Regarding our outlook for the future:
For the remainder of the year, we believe the general freight market will remain challenging despite overall fundamentals slowly improving by excess carrier capacity slowly exiting an environment with unsustainable conditions. Absent an outside catalyst to facilitate improved demand, we remain uncertain about the pace at which general freight conditions will meaningfully improve, allowing us to improve our margins with customers who are not providing for an adequate return on capital. Despite these challenges, we remain optimistic about our business model as evidenced by the durability and growth of our core operations over the last twelve months. In the fourth quarter, we believe that we have both the momentum and team to continue to improve the efficiency of our operations and execute on opportunities that present themselves regardless of that status of the freight market.
Thank you for your time and we will now open the call for any questions.
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Disclaimer
Covenant Logistics Group Inc. published this content on October 24, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 24, 2024 at 14:35:05.717.