Chairman and Chief Executive Officer
“The freight market strengthened sequentially throughout the quarter, and our team did a good job of capitalizing on opportunities to improve the quality of our Combined Truckload revenue. During the quarter, we moved approximately 15% of our Expedited fleet from uncommitted freight to attractive committed contracts, expanded our dedicated protein supply chain exposure, reduced general commodity freight, and implemented rate increases for certain customers who fell short of our profitability requirements. These actions led to a 5.9% increase in Combined Truckload average freight revenue per tractor per week, consisting of a 15.1% increase in freight revenue per total mile, offset by an 8.0% decrease in average miles per unit. Over half the increase in freight revenue per total mile came from mix shift among business units, with the balance coming from rate increases. Our fleet size was down 3.3% sequentially and is expected to hold approximately steady into the stronger market. Our goal is to have substantially all our asset-based business under long-term dedicated or other committed contracts by the end of this freight market upcycle. Consistent with our strategy that lowered volatility during the recent freight market downturn, we intend to patiently pursue the customers and markets that help us create sustainable long-term value.
“Combined Truckload margins failed to expand due to pressure from equipment and maintenance, insurance and claims, driver expense, and general overhead that has not reduced as quickly as our tractor count over the past year. Maintenance and insurance claims together were approximately
“Managed Freight experienced early cycle margin compression due to capacity costs rising faster than revenue per load, which lowered gross margin. This is typical early in the cycle because capacity is sourced in the spot market and most of our freight rates are contractual. Additionally, last year’s quarter included the benefit of a surge contract that was discontinued.
“Our 49% equity method investment with
Second Quarter Financial Performance:
| Three Months Ended | Six Months Ended | |||||||||||||||
| ($000s, except per share information) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Total Revenue | $ | 332,873 | $ | 302,854 | $ | 640,034 | $ | 572,209 | ||||||||
| Freight Revenue, Excludes Fuel Surcharge | $ | 294,693 | $ | 276,532 | $ | 576,618 | $ | 519,751 | ||||||||
| Operating Income | $ | 8,841 | $ | 11,563 | $ | 15,123 | $ | 19,190 | ||||||||
| Adjusted Operating Income (1) | $ | 12,169 | $ | 15,019 | $ | 21,779 | $ | 25,876 | ||||||||
| Operating Ratio | 97.3 | % | 96.2 | % | 97.6 | % | 96.6 | % | ||||||||
| Adjusted Operating Ratio (1) | 95.9 | % | 94.6 | % | 96.2 | % | 95.0 | % | ||||||||
| Net Income | $ | 8,535 | $ | 9,840 | $ | 12,955 | $ | 16,403 | ||||||||
| Adjusted Net Income (1) | $ | 11,201 | $ | 12,415 | $ | 17,980 | $ | 21,384 | ||||||||
| Earnings per Diluted Share | $ | 0.32 | $ | 0.36 | $ | 0.49 | $ | 0.60 | ||||||||
| Adjusted Earnings per Diluted Share (1) | $ | 0.42 | $ | 0.45 | $ | 0.68 | $ | 0.78 | ||||||||
| (1) | Represents non-GAAP measures. | |
Truckload Operating Data and Statistics
| Three Months Ended | Six Months Ended | |||||||||||||||
| ($000s, except statistical information) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Combined Truckload | ||||||||||||||||
| Total Revenue | $ | 205,786 | $ | 199,577 | $ | 393,880 | $ | 387,879 | ||||||||
| Freight Revenue, excludes Fuel Surcharge | $ | 167,762 | $ | 173,395 | $ | 330,775 | $ | 335,724 | ||||||||
| Segment Operating Income (1) | $ | 16,164 | $ | 13,679 | $ | 24,572 | $ | 21,316 | ||||||||
| Adj. Seg. Operating Income (2) | $ | 8,651 | $ | 9,590 | $ | 13,462 | $ | 15,799 | ||||||||
| Segment Operating Ratio (1) | 92.1 | % | 93.1 | % | 93.8 | % | 94.5 | % | ||||||||
| Adj. Seg. Operating Ratio (2) | 94.8 | % | 94.5 | % | 95.9 | % | 95.3 | % | ||||||||
| Average Freight Revenue per Tractor per Week | $ | 5,870 | $ | 5,543 | $ | 5,720 | $ | 5,480 | ||||||||
| Average Freight Revenue per Total Mile | $ | 2.90 | $ | 2.52 | $ | 2.83 | $ | 2.52 | ||||||||
| Average Miles per Tractor per Period | 26,337 | 28,620 | 52,284 | 56,146 | ||||||||||||
| Weighted Average Tractors for Period | 2,199 | 2,406 | 2,237 | 2,369 | ||||||||||||
| Expedited | ||||||||||||||||
| Total Revenue | $ | 93,420 | $ | 97,300 | $ | 178,091 | $ | 191,993 | ||||||||
| Freight Revenue, excludes Fuel Surcharge | $ | 73,742 | $ | 83,229 | $ | 145,691 | $ | 163,478 | ||||||||
| Segment Operating Income (1) | $ | 8,386 | $ | 7,466 | $ | 11,207 | $ | 13,056 | ||||||||
| Adj. Seg. Operating Income (2) | $ | 3,955 | $ | 5,077 | $ | 4,638 | $ | 9,731 | ||||||||
| Segment Operating Ratio (1) | 91.0 | % | 92.3 | % | 93.7 | % | 93.2 | % | ||||||||
| Adj. Seg. Operating Ratio (2) | 94.6 | % | 93.9 | % | 96.8 | % | 94.0 | % | ||||||||
| Average Freight Revenue per Tractor per Week | $ | 7,949 | $ | 7,442 | $ | 7,629 | $ | 7,383 | ||||||||
| Average Freight Revenue per Total Mile | $ | 2.36 | $ | 2.11 | $ | 2.28 | $ | 2.12 | ||||||||
| Average Miles per Tractor per Period | 43,868 | 45,754 | 86,618 | 90,018 | ||||||||||||
| Weighted Average Tractors for Period | 714 | 860 | 739 | 856 | ||||||||||||
| Dedicated | ||||||||||||||||
| Total Revenue | $ | 112,366 | $ | 102,277 | $ | 215,789 | $ | 195,886 | ||||||||
| Freight Revenue, excludes Fuel Surcharge | $ | 94,020 | $ | 90,166 | $ | 185,084 | $ | 172,246 | ||||||||
| Segment Operating Income (1) | $ | 7,778 | $ | 6,213 | $ | 13,365 | $ | 8,260 | ||||||||
| Adj. Seg. Operating Income (2) | $ | 4,696 | $ | 4,513 | $ | 8,824 | $ | 6,068 | ||||||||
| Segment Operating Ratio (1) | 93.1 | % | 93.9 | % | 93.8 | % | 95.8 | % | ||||||||
| Adj. Seg. Operating Ratio (2) | 95.0 | % | 95.0 | % | 95.2 | % | 96.5 | % | ||||||||
| Average Freight Revenue per Tractor per Week | $ | 4,870 | $ | 4,486 | $ | 4,778 | $ | 4,403 | ||||||||
| Average Freight Revenue per Total Mile | $ | 3.53 | $ | 3.06 | $ | 3.49 | $ | 3.08 | ||||||||
| Average Miles per Tractor per Period | 17,913 | 19,085 | 35,356 | 36,974 | ||||||||||||
| Weighted Average Tractors for Period | 1,485 | 1,546 | 1,498 | 1,513 | ||||||||||||
| (1) | Segment operating income and segment operating ratio exclude indirect costs not directly attributable to any one reportable segment, amortization of intangible assets, impairment of goodwill, and contingent consideration liability adjustments to match the information our Chief Operating Decision Maker uses to evaluate the operating results of our reportable segments. The prior year periods have been conformed to this presentation. | |
| (2) | Represents non-GAAP measures. | |
Combined Truckload Revenue
Expedited Truckload Revenue
Dedicated Truckload Revenue
“For the quarter, freight revenue in our Dedicated segment increased $3.9 million, or 4.3%. Average total tractors decreased by 61 units or 3.9% to 1,485, compared to 1,546 in the prior year quarter. Average freight revenue per tractor per week increased 8.6% as a result of the expansion of our agricultural protein-related business and exiting non-specialized dedicated business that has struggled to meet profitability thresholds.”
Combined Truckload Operating Expenses
Managed Freight Segment
| Three Months Ended | Six Months Ended | |||||||||||||||
| ($000s) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Freight Revenue | $ | 99,542 | $ | 77,550 | $ | 190,273 | $ | 134,400 | ||||||||
| Segment Operating Income (1) | $ | 1,739 | $ | 4,462 | $ | 5,442 | $ | 8,002 | ||||||||
| Adj. Seg. Operating Income (2) | $ | 2,633 | $ | 4,171 | $ | 6,220 | $ | 7,520 | ||||||||
| Segment Operating Ratio (1) | 98.3 | % | 94.2 | % | 97.1 | % | 94.0 | % | ||||||||
| Adj. Seg. Operating Ratio (2) | 97.4 | % | 94.6 | % | 96.7 | % | 94.4 | % | ||||||||
| (1) | Segment operating income and segment operating ratio exclude indirect costs not directly attributable to any one reportable segment, amortization of intangible assets, and contingent consideration liability adjustments to match the information our Chief Operating Decision Maker uses to evaluate the operating results of our reportable segments. The prior year periods have been conformed to this presentation. | |
| (2) | Represents non-GAAP measures. | |
“For the quarter, Managed Freight grew freight revenue by 28.4% year over year increase, primarily attributable to the integration of assets acquired during the fourth quarter of 2025. However, the segment operating ratio and adjusted segment operating ratio were negatively impacted compared to the same quarter last year due to heightened costs associated with securing capacity, currently outpacing our ability to capture contractual rate increases with certain of our customers. Additionally, the 2025 quarter included the benefit of a surge contract in Managed Freight that was discontinued. As supply continues to exit the freight market, sourcing quality carrier capacity below contractual freight pricing remains challenging, despite the implementation of numerous rate increases. Additionally, higher insurance and claims expense has become a greater risk in Managed Freight after the Supreme Court’s recent
Warehousing Segment
| Three Months Ended | Six Months Ended | |||||||||||||||
| ($000s) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Freight Revenue | $ | 26,722 | $ | 25,587 | $ | 54,274 | $ | 49,627 | ||||||||
| Segment Operating Income (1) | $ | 1,574 | $ | 1,916 | $ | 3,352 | $ | 3,760 | ||||||||
| Adj. Seg. Operating Income (2) | $ | 885 | $ | 1,258 | $ | 2,097 | $ | 2,557 | ||||||||
| Segment Operating Ratio (1) | 94.1 | % | 92.6 | % | 93.9 | % | 92.5 | % | ||||||||
| Adj. Seg. Operating Ratio (2) | 96.7 | % | 95.1 | % | 96.1 | % | 94.8 | % | ||||||||
| (1) | Segment operating income and segment operating ratio exclude indirect costs not directly attributable to any one reportable segment, amortization of intangible assets, and contingent consideration liability adjustments to match the information our Chief Operating Decision Maker uses to evaluate the operating results of our reportable segments. The prior year periods have been conformed to this presentation. | |
| (2) | Represents non-GAAP measures. | |
“For the quarter, Warehousing’s freight revenue increased
Capitalization, Liquidity and Capital Expenditures
“At
“At the end of the quarter, we had $0.3 million in assets held for sale that we anticipate disposing of within twelve months. The average age of our tractors increased to 26 months compared to 22 months a year ago. Given the mix change between our high mileage expedited fleet and lower mileage dedicated fleets, going forward, we anticipate the average age of our tractors to range from 25 to 28 months.
“Our net capital expenditures for the first half of the year were less than
Outlook
Conference Call Information
The Company will host a live conference call tomorrow,
About
| (1) | See GAAP to Non-GAAP Reconciliation in the schedules included with this release. In addition to operating income, segment operating income, operating ratio, segment operating ratio, net income, and earnings per diluted share, we use adjusted operating income, adjusted segment operating income, adjusted operating ratio, adjusted segment operating ratio, adjusted net income, and adjusted earnings per diluted share, non-GAAP measures, as key measures of profitability. Adjusted operating income, adjusted segment operating income, adjusted operating ratio, adjusted segment operating ratio, adjusted net income, and adjusted earnings per diluted share are not substitutes for operating income, segment operating income, operating ratio, segment operating ratio, net income, and earnings per diluted share measured in accordance with GAAP. There are limitations to using non-GAAP financial measures. We believe our presentation of these non-GAAP financial measures is useful because it provides investors and securities analysts with supplemental information that we use internally for purposes of assessing profitability. Further, our Board and management use non-GAAP operating income, segment operating income, operating ratio, segment operating ratio, net income, and earnings per diluted share measures on a supplemental basis to remove items that may not be an indicator of performance from period-to-period. Although we believe that adjusted operating income, adjusted segment operating income, adjusted operating ratio, adjusted segment operating ratio, adjusted net income, and adjusted earnings per diluted share improves comparability in analyzing our period-to-period performance, they could limit comparability to other companies in our industry, if those companies define such measures differently. Because of these limitations, adjusted operating income, adjusted segment operating income, adjusted operating ratio, adjusted segment operating ratio, adjusted net income, and adjusted earnings per diluted share should not be considered measures of income generated by our business or discretionary cash available to us to invest in the growth of our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis. | |
This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as “expects,” “estimates,” “projects,” “believes,” “anticipates,” “plans,” “could,” “continue,” “would,” “may,” “will,” "intends," “outlook,” “focus,” “seek,” “potential,” “mission,” “continue,” “goal,” “target,” “objective,” “strategy,” derivations thereof, and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In this press release, statements relating to equipment age, net capital equipment expenditures and related priorities, benefits, and returns, capital allocation alternatives, expectations for the general freight market, including rates and capacity, our ability to achieve our desired business mix, future margin and return on capital, future expenses, including maintenance and insurance and claims, progress toward our strategic goals and the expected impact of achieving such goals, and the statements under “Outlook” are forward-looking statements. The following factors, among others could cause actual results to differ materially from those in the forward-looking statements: Our business is subject to economic, credit, business, and regulatory factors affecting the truckload industry that are largely beyond our control; We may not be successful in achieving our strategic plan; We operate in a highly competitive and fragmented industry; We may not grow substantially in the future and we may not be successful in improving our profitability; We may not make acquisitions in the future, or if we do, we may not be successful in our acquisition strategy; Global conflicts could adversely impact our business and financial results; Increases in driver compensation or difficulties attracting and retaining qualified drivers could have a materially adverse effect on our profitability and the ability to maintain or grow our fleet; Our engagement of independent contractors to provide a portion of our capacity exposes us to different risks than we face with our tractors driven by company drivers; We derive a significant portion of our revenues from our major customers; Fluctuations in the price or availability of fuel, the volume and terms of diesel fuel purchase commitments, surcharge collection, and hedging activities may increase our costs of operation; We depend on third-party providers, particularly in our Managed Freight reportable segment; We depend on the proper functioning and availability of our management information and communication systems and other information technology assets (including the data contained therein) and a system failure or unavailability, including those caused by cybersecurity breaches internally or with third-parties, or an inability to effectively upgrade such systems and assets could cause a significant disruption to our business; If we are unable to retain our key employees, our business, financial condition, and results of operations could be harmed; Seasonality and the impact of weather and climate change and other catastrophic events affect our operations and profitability; We self-insure for a significant portion of our claims, have exposure outside of our insurance coverage, could be uninsured or underinsured, and have additional exposure following the Supreme Court’s recent
For further information contact:
PBunn@covenantlogistics.com
TGrant@covenantlogistics.com
For copies of Company information contact:
BMcKenzie@covenantlogistics.com
Key Financial and Operating Statistics | ||||||||||||||||||||||||
| Income Statement Data | ||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| ($s in 000s, except per share data) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||
| Revenues | ||||||||||||||||||||||||
| Freight revenue | $ | 294,693 | $ | 276,532 | 6.6 | % | $ | 576,618 | $ | 519,751 | 10.9 | % | ||||||||||||
| Fuel surcharge revenue | 38,180 | 26,322 | 45.0 | % | 63,416 | 52,458 | 20.9 | % | ||||||||||||||||
| Total revenue | $ | 332,873 | $ | 302,854 | 9.9 | % | $ | 640,034 | $ | 572,209 | 11.9 | % | ||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Salaries, wages, and related expenses | 110,134 | 109,148 | 219,402 | 214,100 | ||||||||||||||||||||
| Fuel expense | 37,850 | 27,989 | 66,147 | 56,157 | ||||||||||||||||||||
| Operations and maintenance | 18,766 | 17,066 | 36,680 | 32,816 | ||||||||||||||||||||
| Revenue equipment rentals and purchased transportation | 98,724 | 76,791 | 187,942 | 133,596 | ||||||||||||||||||||
| Operating taxes and licenses | 3,026 | 3,436 | 6,015 | 7,022 | ||||||||||||||||||||
| Insurance and claims | 18,138 | 17,307 | 30,784 | 32,590 | ||||||||||||||||||||
| Communications and utilities | 1,877 | 1,481 | 3,911 | 2,949 | ||||||||||||||||||||
| General supplies and expenses | 12,399 | 14,657 | 26,598 | 28,252 | ||||||||||||||||||||
| Depreciation and amortization | 22,819 | 23,121 | 46,795 | 44,916 | ||||||||||||||||||||
| Loss on disposition of property and equipment, net | 299 | 295 | 637 | 621 | ||||||||||||||||||||
| Total operating expenses | 324,032 | 291,291 | 624,911 | 553,019 | ||||||||||||||||||||
| Operating income | 8,841 | 11,563 | 15,123 | 19,190 | ||||||||||||||||||||
| Interest expense, net | 2,981 | 2,470 | 6,867 | 5,327 | ||||||||||||||||||||
| Income from equity method investment | (5,265 | ) | (4,268 | ) | (8,952 | ) | (8,044 | ) | ||||||||||||||||
| Income from continuing operations before income taxes | 11,125 | 13,361 | 17,208 | 21,907 | ||||||||||||||||||||
| Income tax expense | 2,590 | 3,521 | 4,253 | 5,504 | ||||||||||||||||||||
| Net income | $ | 8,535 | $ | 9,840 | $ | 12,955 | $ | 16,403 | ||||||||||||||||
| Basic earnings per share(1) | ||||||||||||||||||||||||
| Income from continuing operations | $ | 0.34 | $ | 0.38 | $ | 0.52 | $ | 0.62 | ||||||||||||||||
| Diluted earnings per share(1) | ||||||||||||||||||||||||
| Income from continuing operations | $ | 0.32 | $ | 0.36 | $ | 0.49 | $ | 0.60 | ||||||||||||||||
| Basic weighted average shares outstanding (000s) | 25,215 | 26,041 | 25,149 | 26,295 | ||||||||||||||||||||
| Diluted weighted average shares outstanding (000s) | 26,589 | 27,228 | 26,529 | 27,564 | ||||||||||||||||||||
| Segment Freight Revenues | ||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| ($s in 000's) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||
| Expedited - Truckload | $ | 73,742 | $ | 83,229 | (11.4 | %) | $ | 145,691 | $ | 163,478 | (10.9 | %) | ||||||||||||
| Dedicated - Truckload | 94,020 | 90,166 | 4.3 | % | 185,084 | 172,246 | 7.5 | % | ||||||||||||||||
| Combined Truckload | 167,762 | 173,395 | (3.2 | %) | 330,775 | 335,724 | (1.5 | %) | ||||||||||||||||
| Managed Freight | 99,542 | 77,550 | 28.4 | % | 190,273 | 134,400 | 41.6 | % | ||||||||||||||||
| Warehousing | 26,722 | 25,587 | 4.4 | % | 54,274 | 49,627 | 9.4 | % | ||||||||||||||||
| Other | 667 | - | 100.0 | % | 1,296 | - | 100.0 | % | ||||||||||||||||
| Consolidated Freight Revenue | $ | 294,693 | $ | 276,532 | 6.6 | % | $ | 576,618 | $ | 519,751 | 10.9 | % | ||||||||||||
| Truckload Operating Statistics | ||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | |||||||||||||||||||
| Average freight revenue per loaded mile | $ | 3.50 | $ | 2.96 | 18.2 | % | $ | 2.83 | $ | 2.97 | 15.2 | % | ||||||||||||
| Average freight revenue per total mile | $ | 2.90 | $ | 2.52 | 15.1 | % | $ | 5,720 | $ | 2.52 | 12.3 | % | ||||||||||||
| Average freight revenue per tractor per week | $ | 5,870 | $ | 5,543 | 5.9 | % | $ | 52,284 | $ | 5,480 | 4.4 | % | ||||||||||||
| Average miles per tractor per period | 26,337 | 28,620 | (8.0 | %) | 2,237 | 56,146 | (6.9 | %) | ||||||||||||||||
| Weighted avg. tractors for period | 2,199 | 2,406 | (8.6 | %) | 2,202 | 2,369 | (5.6 | %) | ||||||||||||||||
| Tractors at end of period | 2,202 | 2,401 | (8.3 | %) | 7,142 | 2,401 | (8.3 | %) | ||||||||||||||||
| Trailers at end of period | 7,142 | 6,639 | 7.6 | % | 2.83 | 6,639 | 7.6 | % | ||||||||||||||||
| Selected Balance Sheet Data | ||||||||
| ($s in '000's, except per share data) | ||||||||
| Total assets | $ | 1,005,765 | $ | 1,047,548 | ||||
| Total stockholders' equity | $ | 412,873 | $ | 403,997 | ||||
| Total indebtedness, comprised of total debt and finance leases, net of cash | $ | 289,686 | $ | 296,297 | ||||
| Net Indebtedness to Capitalization Ratio | 41.2 | % | 42.3 | % | ||||
| Tangible book value per end-of-quarter basic share | $ | 9.18 | $ | 8.69 | ||||
Non-GAAP Reconciliation (Unaudited) Adjusted Operating Income and Adjusted Operating Ratio(1) | ||||||||||||||||||||||||
| (Dollars in thousands) | Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| GAAP Presentation | 2026 | 2025 | bps Change | 2026 | 2025 | bps Change | ||||||||||||||||||
| Total revenue | $ | 332,873 | $ | 302,854 | $ | 640,034 | $ | 572,209 | ||||||||||||||||
| Total operating expenses | 324,032 | 291,291 | 624,911 | 553,019 | ||||||||||||||||||||
| Operating income | $ | 8,841 | $ | 11,563 | $ | 15,123 | $ | 19,190 | ||||||||||||||||
| Operating ratio | 97.3 | % | 96.2 | % | 110 | 97.6 | % | 96.6 | % | 100 | ||||||||||||||
| Non-GAAP Presentation | 2026 | 2025 | bps Change | 2026 | 2025 | bps Change | ||||||||||||||||||
| Total revenue | $ | 332,873 | $ | 302,854 | $ | 640,034 | $ | 572,209 | ||||||||||||||||
| Fuel surcharge revenue | (38,180 | ) | (26,322 | ) | (63,416 | ) | (52,458 | ) | ||||||||||||||||
| Freight revenue (total revenue, excluding fuel surcharge) | 294,693 | 276,532 | 576,618 | 519,751 | ||||||||||||||||||||
| Total operating income | 8,841 | 11,563 | 15,123 | 19,190 | ||||||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||
| Amortization of intangibles(2) | 3,000 | 2,746 | 6,000 | 5,117 | ||||||||||||||||||||
| Contingent consideration liability adjustment | 328 | 710 | 656 | 1,420 | ||||||||||||||||||||
| Transaction costs | - | - | - | 149 | ||||||||||||||||||||
| Adjusted operating income | 12,169 | 15,019 | 21,779 | 25,876 | ||||||||||||||||||||
| Adjusted operating ratio | 95.9 | % | 94.6 | % | 130 | 96.2 | % | 95.0 | % | 120 | ||||||||||||||
| (1) | Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP operating income and operating ratio to consolidated non-GAAP adjusted operating income and adjusted operating ratio. | |
| (2) | "Amortization of intangibles" reflects the non-cash amortization expense relating to intangible assets. | |
| Non-GAAP Reconciliation (Unaudited) Adjusted Net Income and Adjusted EPS(1) | ||||||||||||||||
| (Dollars in thousands) | Three Months Ended | Six Months Ended | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| GAAP Presentation - Net income | $ | 8,535 | $ | 9,840 | $ | 12,955 | $ | 16,403 | ||||||||
| Adjusted for: | ||||||||||||||||
| Amortization of intangibles (2) | 3,000 | 2,746 | 6,000 | 5,117 | ||||||||||||
| Contingent consideration liability adjustment | 328 | 710 | 656 | 1,420 | ||||||||||||
| Transaction costs | - | - | - | 149 | ||||||||||||
| Total adjustments before taxes | 3,328 | 3,456 | 6,656 | 6,686 | ||||||||||||
| Provision for income tax expense at effective rate | (662 | ) | (881 | ) | (1,631 | ) | (1,705 | ) | ||||||||
| Tax effected adjustments | $ | 2,666 | $ | 2,575 | $ | 5,025 | $ | 4,981 | ||||||||
| Non-GAAP Presentation - Adjusted net income | $ | 11,201 | $ | 12,415 | $ | 17,980 | $ | 21,384 | ||||||||
| GAAP Presentation - Diluted earnings per share ("EPS") | $ | 0.32 | $ | 0.36 | $ | 0.49 | $ | 0.60 | ||||||||
| Adjusted for: | ||||||||||||||||
| Amortization of intangibles (2) | 0.11 | 0.10 | 0.23 | 0.19 | ||||||||||||
| Contingent consideration liability adjustment | 0.01 | 0.03 | 0.02 | 0.05 | ||||||||||||
| Transaction costs | - | - | - | 0.01 | ||||||||||||
| Total adjustments before taxes | 0.12 | 0.13 | 0.25 | 0.25 | ||||||||||||
| Provision for income tax expense at effective rate | (0.02 | ) | (0.04 | ) | (0.06 | ) | (0.07 | ) | ||||||||
| Tax effected adjustments | $ | 0.10 | $ | 0.09 | $ | 0.19 | $ | 0.18 | ||||||||
| Non-GAAP Presentation - Adjusted EPS(3) | $ | 0.42 | $ | 0.45 | $ | 0.68 | $ | 0.78 | ||||||||
| (1) | Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP net income to consolidated non-GAAP adjusted net income and consolidated GAAP diluted earnings per share to non-GAAP consolidated Adjusted EPS. | |
| (2) | "Amortization of intangibles" reflects the non-cash amortization expense relating to intangible assets. | |
| (3) | Total may not sum due to rounding. | |
Non-GAAP Reconciliation (Unaudited) Adjusted Operating Income and Adjusted Operating Ratio (1) | ||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Three Months Ended | |||||||||||||||||||||||||||||||||||||||
| GAAP Presentation | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||
| Expedited | Dedicated | Combined Truckload | Managed Freight | Warehousing | Expedited | Dedicated | Combined Truckload | Managed Freight | Warehousing | |||||||||||||||||||||||||||||||
| Total revenue | $ | 93,420 | $ | 112,366 | $ | 205,786 | $ | 99,542 | $ | 26,878 | $ | 97,300 | $ | 102,277 | $ | 199,577 | $ | 77,550 | $ | 25,727 | ||||||||||||||||||||
| Total segment operating expenses (2) | 85,034 | 104,588 | 189,622 | 97,803 | 25,304 | 89,834 | 96,064 | 185,898 | 73,088 | 23,811 | ||||||||||||||||||||||||||||||
| Segment operating income (2) | $ | 8,386 | $ | 7,778 | $ | 16,164 | $ | 1,739 | $ | 1,574 | $ | 7,466 | $ | 6,213 | $ | 13,679 | $ | 4,462 | $ | 1,916 | ||||||||||||||||||||
| Segment operating ratio (2) | 91.0 | % | 93.1 | % | 92.1 | % | 98.3 | % | 94.1 | % | 92.3 | % | 93.9 | % | 93.1 | % | 94.2 | % | 92.6 | % | ||||||||||||||||||||
| Non-GAAP Presentation | ||||||||||||||||||||||||||||||||||||||||
| Total revenue | $ | 93,420 | $ | 112,366 | $ | 205,786 | $ | 99,542 | $ | 26,878 | $ | 97,300 | $ | 102,277 | $ | 199,577 | $ | 77,550 | $ | 25,727 | ||||||||||||||||||||
| Fuel surcharge revenue | (19,678 | ) | (18,346 | ) | (38,024 | ) | - | (156 | ) | (14,071 | ) | (12,111 | ) | (26,182 | ) | - | (140 | ) | ||||||||||||||||||||||
| Freight revenue (total revenue, excluding fuel surcharge) | 73,742 | 94,020 | 167,762 | 99,542 | 26,722 | 83,229 | 90,166 | 173,395 | 77,550 | 25,587 | ||||||||||||||||||||||||||||||
| Total segment operating income (2) | $ | 8,386 | $ | 7,778 | 16,164 | $ | 1,739 | $ | 1,574 | $ | 7,466 | $ | 6,213 | 13,679 | $ | 4,462 | $ | 1,916 | ||||||||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||||||||||||||||||
| Other (3) | (4,431 | ) | (3,082 | ) | (7,513 | ) | 894 | (689 | ) | (2,389 | ) | (1,700 | ) | (4,089 | ) | (291 | ) | (658 | ) | |||||||||||||||||||||
| Adjusted segment operating income | 3,955 | 4,696 | 8,651 | 2,633 | 885 | 5,077 | 4,513 | 9,590 | 4,171 | 1,258 | ||||||||||||||||||||||||||||||
| Adjusted segment operating ratio | 94.6 | % | 95.0 | % | 94.8 | % | 97.4 | % | 96.7 | % | 93.9 | % | 95.0 | % | 94.5 | % | 94.6 | % | 95.1 | % | ||||||||||||||||||||
| Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
| GAAP Presentation | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||
| Expedited | Dedicated | Combined Truckload | Managed Freight | Warehousing | Expedited | Dedicated | Combined Truckload | Managed Freight | Warehousing | |||||||||||||||||||||||||||||||
| Total revenue | $ | 178,091 | $ | 215,789 | $ | 393,880 | $ | 190,273 | $ | 54,585 | $ | 191,993 | $ | 195,886 | $ | 387,879 | $ | 134,400 | $ | 49,930 | ||||||||||||||||||||
| Total segment operating expenses (2) | 166,884 | 202,424 | 369,308 | 184,831 | 51,233 | 178,937 | 187,626 | 366,563 | 126,398 | 46,170 | ||||||||||||||||||||||||||||||
| Segment operating income (2) | $ | 11,207 | $ | 13,365 | $ | 24,572 | $ | 5,442 | $ | 3,352 | $ | 13,056 | $ | 8,260 | $ | 21,316 | $ | 8,002 | $ | 3,760 | ||||||||||||||||||||
| Segment operating ratio (2) | 93.7 | % | 93.8 | % | 93.8 | % | 97.1 | % | 93.9 | % | 93.2 | % | 95.8 | % | 94.5 | % | 94.0 | % | 92.5 | % | ||||||||||||||||||||
| Non-GAAP Presentation | ||||||||||||||||||||||||||||||||||||||||
| Total revenue | $ | 178,091 | $ | 215,789 | $ | 393,880 | $ | 190,273 | $ | 54,585 | $ | 191,993 | $ | 195,886 | $ | 387,879 | $ | 134,400 | $ | 49,930 | ||||||||||||||||||||
| Fuel surcharge revenue | (32,400 | ) | (30,705 | ) | (63,105 | ) | - | (311 | ) | (28,515 | ) | (23,640 | ) | (52,155 | ) | - | (303 | ) | ||||||||||||||||||||||
| Freight revenue (total revenue, excluding fuel surcharge) | 145,691 | 185,084 | 330,775 | 190,273 | 54,274 | 163,478 | 172,246 | 335,724 | 134,400 | 49,627 | ||||||||||||||||||||||||||||||
| Total segment operating income (2) | $ | 11,207 | $ | 13,365 | $ | 24,572 | $ | 5,442 | $ | 3,352 | $ | 13,056 | $ | 8,260 | $ | 21,316 | $ | 8,002 | $ | 3,760 | ||||||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||||||||||||||||||
| Other (3) | (6,569 | ) | (4,541 | ) | (11,110 | ) | 778 | (1,255 | ) | (3,325 | ) | (2,341 | ) | (5,666 | ) | (482 | ) | (1,203 | ) | |||||||||||||||||||||
| Transaction costs | - | - | - | - | - | - | 149 | 149 | - | - | ||||||||||||||||||||||||||||||
| Adjusted segment operating income | 4,638 | 8,824 | 13,462 | 6,220 | 2,097 | 9,731 | 6,068 | 15,799 | 7,520 | 2,557 | ||||||||||||||||||||||||||||||
| Adjusted segment operating ratio | 96.8 | % | 95.2 | % | 95.9 | % | 96.7 | % | 96.1 | % | 94.0 | % | 96.5 | % | 95.3 | % | 94.4 | % | 94.8 | % | ||||||||||||||||||||
| (1) | Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP segment operating income and segment operating ratio to consolidated non-GAAP adjusted segment operating income and adjusted segment operating ratio. | |
| (2) | Segment operating expenses, segment operating income, and segment operating ratio exclude indirect costs not directly attributable to any one reportable segment, amortization of intangible assets, impairment of goodwill, and contingent consideration liability adjustments to match the information our Chief Operating Decision Maker uses to evaluate the operating results of our reportable segments. The prior year periods have been conformed to this presentation. | |
| (3) | Represents indirect costs not directly attributable to any one reportable segment. | |
