News about Covenant

This is from The Chattanooga TimesFree Press.

Chattanooga-based Covenant Transportation Group reported a loss in the third quarter which officials attributed to payouts on a few serious accidents and debt costs.
The trucking company reported a net loss of $3.4 million or 24 cents per share in the the third quarter compared with a net loss of $3.6 million or 25 cents per share in the same quarter last year. Absent extraordinary items, the company lost 5 cents per share, which beat analysts predictions of a 15 cent per share loss.
Revenue increased 20.9 percent in the third quarter compared to the previous year to $212.5 million, according to the company’s third-quarter report.
“The third quarter was a time of great promise and great frustration,” said David R. Parker, chief executive officer at Covenant. “From an operations perspective we improved several key metrics. ... The quarter was frustrating from a bottom line perspective.”
Mr. Parker said a few severe accidents negatively impacted the quarter-to-quarter results by $3.6 million or 16 center per diluted share.
Also, the company recorded a noncash write-down of $726,000 after closing a revolving credit facility, he said.
Revenue for Covenant’s brokerage business, Covenant Transport Solutions, increased 264 percent to $16.7 million in the third quarter. The division generated $2.9 million in revenue compared with $950,000 in the same quarter in 2007.
However, Mr. Parker said he did not foresee a continued boom in the brokerage business.
Fuel expenses for Covenant dropped this quarter as the company drew more in fuel surcharges and the cost of diesel declined nationwide, Mr. Parker said.
Covenant’s shares closed down a penny at $1.67.