Covenant Logistics Group, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing mixed performance compared to the previous fiscal period. Total revenue for Q3 2024 was $287.9 million, a slight decrease of 0.3% from $288.7 million in Q3 2023. Freight revenue, however, increased by 2.1% to $258.6 million, up from $253.4 million in the same quarter last year. For the nine-month period, total revenue rose to $854.1 million from $829.6 million, driven by a $34.6 million increase in Dedicated freight revenue.
Operating income for Q3 2024 improved to $16.2 million, compared to $15.1 million in Q3 2023. However, for the nine months, operating income decreased to $36.1 million from $44.6 million in the prior year. Net income for Q3 2024 was $13.0 million, down from $13.5 million in Q3 2023, while net income for the nine months fell to $29.2 million from $42.4 million in the same period last year. This decline in net income was reflected in earnings per share, which decreased to $0.99 for Q3 2024 from $1.04 in Q3 2023.
The company’s total assets increased to $1.01 billion as of September 30, 2024, from $954.4 million at the end of 2023. Total stockholders' equity also rose to $431.6 million from $403.4 million. Cash and cash equivalents saw a significant increase, reaching $35.2 million compared to $2.3 million at the end of 2023.
Covenant Logistics made strategic acquisitions, including Lew Thompson & Son Trucking, Inc. and Sims Transport Services, LLC, which contributed to revenue growth in the Dedicated segment. However, the Managed Freight segment experienced a decline in revenue due to a softer spot market. The company also reported increased operating expenses, particularly in salaries and wages, attributed to a higher average number of drivers and tractors.
The company’s net cash flows from operating activities improved significantly to $101.0 million for the nine months ended September 30, 2024, compared to $52.9 million in the same period of 2023. Conversely, net cash flows used in investing activities decreased to $104.2 million from $144.6 million, primarily due to the costs associated with the recent acquisitions.
Overall, Covenant Logistics continues to navigate a challenging market environment while focusing on strategic growth through acquisitions and operational efficiencies.
About COVENANT LOGISTICS GROUP, INC.
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