Wed, May 7, 6:33 PM (11 days ago)
**Covenant Logistics Group, Inc. (CVLG) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Total revenue decreased by 3.4% to $269.4 million, with freight revenue down 1.8% to $243.2 million. - **Operating Income:** Increased to $7.6 million from $4.3 million in Q1 2024. - **Net Income:** Rose to $6.6 million ($0.24 per diluted share) from $4.0 million ($0.14 per diluted share) in Q1 2024. - **Cash Flow:** Operating cash flow increased to $24.8 million, while investing activities used $24.1 million, and financing activities used $25.1 million. **Profit Margins & Cash Flow:** - **Operating Margin:** Improved to 2.8% from 1.6% in Q1 2024. - **Net Margin:** Increased to 2.5% from 1.4% in Q1 2024. - **Cash Flow from Operations:** Improved to $24.8 million from $21.7 million in Q1 2024. **Earnings Changes & Quarterly Performance:** - **Earnings per Share (EPS):** Increased to $0.24 from $0.14 in Q1 2024. - **Adjusted EPS:** Rose to $0.32 from $0.18 in Q1 2024. - **Segment Performance:** Expedited revenue decreased, while Dedicated revenue increased. Managed Freight and Warehousing revenues saw mixed results. **Trends & Uncertainties:** - **Market Conditions:** Freight market shows incremental improvement, but global trade policy uncertainty persists. - **Strategic Focus:** Emphasis on cost control, capital allocation, and growth in Dedicated, Managed Freight, and Warehousing segments. - **Future Operations:** Expectations of revenue growth and improved margins in key segments. **Segment Discussion:** - **Expedited:** Revenue decreased due to lower average miles per unit and fuel surcharge revenue. - **Dedicated:** Revenue increased with a higher average tractor count, but margins were impacted by increased operating expenses. - **Managed Freight:** Revenue decreased due to a degraded spot market, but operating income improved. - **Warehousing:** Revenue remained stable, but operating income decreased due to cost increases. **Liquidity & Capital Resources:** - **Working Capital:** Decreased to $15.5 million from $32.6 million in Q1 2024. - **Debt:** Total indebtedness increased to $225.4 million, with available borrowing capacity of $90.1 million. - **Capital Expenditures:** Net capital expenditures totaled $23.9 million, with plans for $55.0 million to $65.0 million for the remainder of 2025. **Stock Repurchase & Dividends:** - **Stock Repurchase:** Board approved a $50.0 million stock repurchase program. - **Dividends:** Distributed $1.9 million to stockholders through dividends. **Outlook:** - Focus on executing quickly, capturing new dedicated contracts, and evaluating acquisition opportunities. - Goal to grow profitably and generate meaningful returns for stockholders.