CHATTANOOGA, Tennessee, Aug. 17, 2022 (GLOBE NEWSWIRE) — Covenant Logistics Group, Inc. (NASDAQ/GS: CVLG) (“Covenant” or the “Company”) today announced the sale of its California terminal. announced an agreement. Declared a quarterly cash dividend of approximately $44 million and $0.08 per common share.
real estate sale
The Company has agreed to sell the California device for approximately $44 million in cash, net of transaction costs. The buyer paid a security deposit of $2 million for non-refundable properties, with limited exceptions. The transaction is subject to customary conditions and is expected to close by the end of the third quarter. The Company expects to record a pre-tax gain on the property sale of approximately $37.5 million. The company expects to relocate personnel and equipment to other locations without disrupting service, saving approximately $500,000 annually in operating costs associated with Southern California.
In connection with the Board’s continuous oversight of the company’s asset productivity and the allocation of cash for the highest return, as well as the 1% dividend target, the Board of Directors Declared a quarterly cash dividend of $0.08 per share of common stock. stock. Quarterly cash dividends are subject to the quarterly cash dividend program pre-approved by the Board of Directors. Dividends will be paid to registered shareholders on September 2, 2022 and will be paid on September 30, 2022.
About Covenant Logistics Group
Covenant Logistics Group Inc., through its subsidiaries, provides a portfolio of transportation and logistics services to customers throughout the United States. Key services include asset-based rapid and dedicated truckload capacity, as well as asset-light warehousing, transportation management, and freight brokerage capabilities. In addition, Transport Enterprise Leasing, an affiliate, provides revenue equipment sales and leasing services to the trucking industry. Covenant’s Class A common stock trades on his NASDAQ Global Select Market under the symbol “CVLG.”
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. increase. Safe harbors created by these sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may include “expect,” “estimate,” “plan,” “believe,” “expect,” “plan,” “could,” “would,” and “could.” may be identified by the use of terms or phrases such as “there are “Will”, “Intent”, “Foresight”, “Focus”, “Seek”, “Possibility”, “Mission”, “Continuity”, “Goal”, “Goal”, “Objective” and Derivatives thereof , and similar terms and phrases. Forward-looking statements are based on the current beliefs and expectations of our management and are inherently subject to risks and uncertainties. Future events or actual results are contemplated by or are based on forward-looking statements, some of which cannot be predicted or quantified. Statements made in this press release regarding the expected benefits and reduced operating expenses from the sale of the California Terminal are forward-looking statements. In particular, the following factors could cause actual results to differ materially from forward-looking statements. Our business is subject to the economic, credit, business and regulatory factors that affect the truck industry, but these factors are far beyond our control. (i) quantity, pricing and predictability of customer demand; (ii) equipment and parts availability, pricing and delivery schedules; (iii) employee availability and compensation and third-party capacity providers; and (iv) other aspects of our business. You may not be able to achieve your strategic plan. We operate in a highly competitive and fragmented industry. We may not be able to expect significant growth in the future and improve profitability. We may not make acquisitions in the future. Or, even if you do, your acquisition strategy may not be successful. Increases in driver compensation or difficulties in attracting and retaining qualified drivers could have a material adverse effect on our profitability and ability to maintain or expand our fleet. The involvement of an independent contractor to provide part of the capacity is subject to different risks than a tractor driven by a company driver. We derive most of our revenue from our key customers. Fluctuations in fuel prices or availability, the volume and terms of diesel fuel purchase agreements, collection of surcharges and hedging activities can increase our operating costs. Especially in the managed freight segment, we rely on third-party providers. We are responsible for the proper functioning and availability of our managed information and communication systems and other information technology assets (including the data contained therein) and for failure or unavailability of systems (including due to cybersecurity breaches) or relying on the inability to effectively upgrade such systems. Assets can cause significant disruption to our business. Our business, financial condition and results of operations could be harmed if we are unable to retain key employees. Seasonality and the effects of weather and other catastrophic events affect our operations and profitability. We self-insure a significant portion of our claims exposure, which could significantly increase the volatility and reduce the amount of our earnings. The use of self-insured and captive insurance companies for motor liability insurance may adversely affect our operations. We have experienced and may experience further erosion of the limits available across our policies. Damage claims may result in additional costs to reinstate the policy. We operate in a highly regulated industry. Our business, financial condition and results of operations could be adversely affected if any of our independent contractor drivers are deemed to be employees by regulatory authorities or judicial proceedings. Developments in labor and employment laws and union activities by employees can have a material adverse effect on our operating results. The Compliance Safety Accountability program adopted by the Federal Motor Carrier Safety Administration could adversely affect our profitability and operations, our ability to maintain or expand our fleet, and our customer relationships. An unfavorable DOT safety rating for any of our motor vehicle carriers could have a material adverse effect on our business and profitability. Compliance with various environmental laws and regulations Trade restrictions, quotas, tariffs, or changes in tariffs. Litigation could adversely affect our business, financial condition and results of operations. Increased attention to environmental, social and governance issues could adversely affect our business, impose additional costs and expose us to additional risks. Our ABL Credit Facility and other funding arrangements contain certain terms, restrictions and requirements, and we may not be able to comply with such terms, restrictions and requirements. We may need additional funding in the future that may not be available. Or, even if available, shareholder ownership may be reduced. Our debt, financing and operating lease obligations may adversely affect our ability to respond to changes in our industry or business. If our capital investments do not match customer demand, or if the availability of funding sources for these investments declines, our profitability could be materially and adversely affected. Increased prices for new revenue equipment, new engine design changes, future use of autonomous tractors, volatility in the used equipment market, reduced availability of new revenue equipment, and manufacturer obligations to sell or trade back to us; could not have been achieved. materially adversely affect our business, financial condition, results of operations and profitability; Our 49%-owned subsidiary, Transport Enterprise Leasing, faces certain additional risks inherent in its business, any of which could adversely affect our results of operations. Additional charges may be incurred in connection with the disposal of most TFS businesses and assets. We may determine that our goodwill and other intangible assets are impaired and recognize related losses. Our Chairman and Chief Executive Officer and his wife control a majority of our shares and effectively control our company. Our charter documents or provisions of Nevada state law may prohibit acquisitions, which in turn may limit the price an investor may be willing to pay for our Class A common stock. The market price of our Class A common stock may fluctuate. The timing or amount of any repurchase of Class A common stock or dividends on Class A and Class B common stock, if any, cannot be guaranteed. In the future, if we are unable to maintain effective internal control over financial reporting, the likelihood of material misstatements increases, and such misstatements cause investors to lose confidence in our financial statements and have a material adverse effect on our financial statements. There is a possibility. stock price; the COVID-19 outbreak or other similar outbreaks may adversely affect us; Any declaration of future dividends is subject to the approval of our Board of Directors and various risks and uncertainties including, but not limited to: Comply with Applicable Laws. Restrictions on dividend payments under existing or future funding arrangements. Changes in tax law on corporate dividends. Deterioration in our financial condition or results of operations: Risks, uncertainties and other factors identified from time to time in our filings with the Securities and Exchange Commission. Readers should review and consider these factors along with our various disclosures in press releases, shareholder reports and filings with the Securities and Exchange Commission. We disclaim any obligation to update or revise any forward-looking statements to reflect changes in factors affecting our actual results or forward-looking information.
For more information, please contact:
Joey B. Hogan, President
Trip Grant, Executive Vice President and Chief Financial Officer
For a copy of our company information, please contact:
Brooke McKenzie, Executive Administrative Assistant