Celadon Group Inc. (NYSE: CGI) today reported its financial and operating results for the three months and fiscal year ended June 30, 2012, the fourth fiscal quarter of the company’s fiscal year ending June 30, 2012.
Revenue for the quarter increased 4.0% to $157.5 million in the 2012 quarter from $151.2 million in the 2011 quarter. Freight revenue, which excludes fuel surcharges, increased 4.6% to $124.3 million in the 2012 quarter from $118.8 million in the 2011 quarter. Net income increased 63.6% to $9.0 million in the 2012 quarter from $5.5 million for the same quarter last year. Earnings per diluted share increased 62.5% to $0.39 in the 2012 quarter from $0.24 for the same quarter last year.
For the fiscal year ended June 30, 2012, revenue increased 5.4% to $599.0 million in 2012 from $568.2 million for the same period last year. Freight revenue increased 1.7% to $475.1 million in 2012 from $467.0 million for the same period last year. Net income increased 67.8% to $25.5 million in 2012 from $15.3 million for the same period last year. Earnings per diluted share increased 67.2% to $1.12 from $0.67 the same period last year.
We are pleased with the results, as earnings per share of 39 cents exceeded the June 2011 quarter of 24 cents per share. Operating ratio, which represents operating expenses as a percent of revenue excluding fuel surcharge was 87.2%, compared to 90.9% in the June 2011 quarter. Operating ratio was reduced to 90.2% for the 2012 fiscal year compared with 93.4% for the 2011 fiscal year.
Several key factors attributed to the improvement, including an increase of 4.1% percent in rates, a decrease in overall equipment costs and a decrease in operations and maintenance expense, which is primarily attributed to our decrease in average tractor age to 1.5 years and trailers to 2.8 years. Regarding equipment cost, in addition to reduced average age, we have continued to streamline our operations to reduce the number of tractors to trailers being operated to support our existing business levels. Offsetting these improvements was a decline in miles per seated truck of about four percent from the prior year, most of which has been the impact of improved freight selection. Through our series of opportunistic acquisitions made during the year, we have been able to increase our average seated count by approximately 7.2%, which has positioned us to better service our customers and provides the capacity to allow us to significantly increase miles as fleets continue to exit the market and for when the economic freight market improves.