Covenant Transportation Group Q3 net income 7.6 millionStaff writer ▼ | October 16, 2015
Covenant Transportation Group announced financial and operating results for the third quarter ended September 30, 2015. Total revenue of $173.5 million decreased 2.3% compared with the third quarter of 2014.
Covenant Transportation Group Total revenue was $173.5 million
Operating income was $14.6 million and an operating ratio of 90.5%, compared with operating income of $5.6 million and an operating ratio of 96.1% in the third quarter of 2014. Operating income for the 2014 quarter included a $7.5 million reserve for
an adverse judgment in September 2014 stemming from a cargo loss in 2008. This reserve unfavorably impacted the 2014 quarter operating ratio by approximately 530 basis points. Operating ratio is defined as: total operating expenses minus fuel surcharge revenue, divided by freight revenue.
Net income was $7.6 million, or $0.42 per diluted share, compared with net income of $1.9 million, or $0.12 per diluted share in the third quarter of 2014, on a 21% increase in weighted average diluted shares resulting primarily from the Company’s public offering of 3,036,000 common shares completed in November 2014.
Net income for the 2014 quarter included an unfavorable after-tax impact of approximately $4.6 million, or $0.30 per share, attributable to the adverse cargo claim judgment described above. ■