Covenant Transportation has announced its financial and operating results for the year ended December 31, 2014. It reported that total revenue increased by 5.0% year-on-year, to $719.0m. The company also recorded freight revenue, which excludes revenue from fuel surcharges, of $578.6m, an increase 7.4% over 2013’s result.
For the fourth quarter Covenant Transportation reported revenue of $206.8m, an increase of 17.2% compared with the fourth quarter of 2013. It also saw operating income rise by 176.4% year-on-year, to $24.6m. Accordingly the company’s recorded a margin of 11.9% in Q4.
Covenant Transportation’s Chairman, President, and Chief Executive Officer, David Parker said, “The substantial improvement in earnings for the fourth quarter relates primarily to higher freight revenue per tractor in our asset-based business, significant improvement in revenue and margins in our non–asset based Covenant Transport Solutions business relating to peak holiday shipping projects, and reduced fuel and capital costs. These improvements were partially offset by higher employee wage and benefit expense, as well as higher casualty insurance expense.”
Parker went on, “Our results during the quarter benefitted significantly from the growth in holiday shopping over the Internet, and the resulting volumes carried for our LTL, parcel delivery, and omni-channel shipping customers.”
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