CHATTANOOGA, Tenn., July 1 /PRNewswire-FirstCall/ -- Covenant Transportation Group, Inc. (Nasdaq: CVTI) announced today its expectations regarding financial results for the second fiscal quarter of 2010.
Financial and Operating Results
Chairman, President and Chief Executive Officer, David R. Parker, offered the following comments: "After reviewing preliminary financial and operating information through the third week of June, we expect to report consolidated results of operations in a range of $0.12 to $0.20 diluted earnings per share for the second quarter of 2010. Our expectations for the second quarter of 2010 compare to a reported net loss of ($0.22) per diluted share for the second quarter of 2009."
"The expected improvement versus our previous breakeven outlook is attributable to further improvements in freight rates, miles per truck, internal revenue generation initiatives and cost control efforts. Based on the quarter to date results, we expect an improvement in average miles per tractor of approximately 7%-8% and in average revenue per total mile (excluding fuel surcharges) of approximately 3% compared to the second quarter of 2009. In addition, our cost control efforts are expected to provide positive results, primarily in the areas of net fuel, compensation, and general expenses, offset somewhat by higher claims expense. The expected higher claims expense relates primarily to adverse developments regarding the damages in connection with a few casualty claims incurred prior to the beginning of this quarter. Based on our financial and operating results to date, we will be in compliance with our financial debt covenant at the quarter ended June 30, 2010."The Company also announced the rollout of its new investor website for Covenant Transportation Group located at www.ctginvestor.com . This new website shows that the Company is making continuous efforts to promote its brand and better communicate with investors and the analyst community. The new investor website offers improved functionality and features that allow users to obtain a better understanding of the Company's strategic vision while granting easy access to detailed financial information about the Company. The Company will announce the second quarter earnings release dates and investor call information at a later date.