Covenant Transportation Group (CTG) posted total revenues of $164.3m for Q2 ended June 30, 2017, an increase of 3.5% compared with Q2 2016. Freight revenue of $145.6m excluding revenue from fuel surcharges noted an increase of 0.8%.
Operating income was $4.0m compared with $7.3m in Q2 2016. CTG’s net income reached $1.5m, or $0.08 per diluted share, compared with net income of $3.6m, or $0.20 per diluted share in Q2 2016.
For the quarter, Covenant Transport Solutions, CTG’s non-asset based logistics subsidiary, recorded total revenues $16.7m, up by 18.1% compared with the same quarter of 2016. Operating income was approximately $1.6m compared with operating income of approximately $1.5m in Q2 2016.
Chairman and Chief Executive Officer, David R. Parker, commented: “Freight demand built throughout the quarter and continues to be favourable in July on a seasonally adjusted basis. April was the slowest month overall, in part due to reduction of a portion of freight from customers as we made decisions to protect our yield model in our expedited service offering.”
Parker added: “We were pleased with the disciplined approach in which our sales and operations teams met this quarter’s challenges and look forward to a more favourable supply-demand relationship in the second half of 2017 and beyond. From a cost perspective, our margins were pressured across nearly all fronts other than net fuel expense, as we continued to invest in our people, equipment, and technologies.”
Source: Covenant Transportation Group
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