Covenant Transport sees income rise in 2002

Jan 29, 2003 12:00 PM, staff and wire reports

Chattanooga TN-based Covenant Transport Inc has announced financial and operating results for the fourth quarter and year ended Dec 31, 2002. For the quarter, operating revenue rose 4% to $146.7 million from $140.6 million during the same period in 2001. Net income increased to $3.4 million from a net loss of $8.3 million for fourth-quarter 2001. In fourth-quarter 2001, the company recorded a $0.68 per diluted share or $9.5 million after-tax impairment charge relating to tractor values.

For the year, operating revenue decreased 2% to $564.4 million from $573.6 million during 2001. Net income climbed to $8.3 million from a net loss of $6.7 million for 2001. During first-quarter 2002, the company recognized a $0.14 per diluted share, or $2.0 million after-tax, charge to reflect an impairment in tractor values and a $0.06 per diluted share, or $890,000 after-tax, extraordinary item to reflect early extinguishment of debt in conjunction with prepayment of the company’s private placement notes.

Excluding the extraordinary item and the impairment charge during first-quarter 2002, as well as the impairment charge for fourth-quarter 2001, net income for 2002 was $11.2 million, compared with $2.9 million for 2001.