Covenant Logistics

The Daily Dash: Trucking loses reprieve from California independent contractor law

The Daily Dash is a quick look at what’s happening in the freight ecosystem. In today’s edition, we highlight the end of an injunction in California that had kept an independent contractor law from applying to trucking, as well as a funding round for Arrive Logistics and more.

The High Five

1. An injunction that stopped the California trucking industry from coming under AB5, the state’s law governing the use of independent contractors, has been overturned. John Kingston with details

2. Austin,...

https://s29755.pcdn.co/news/the-daily-dash-trucking-loses-reprieve-from-california-independent-contractor-law

$70K for part-time driver? Covenant CEO says that could be fine for some

David Parker is the CEO of Covenant Logistics (NASDAQ: CVLG), and he was blunt with analysts who follow the company on its earnings call Tuesday.

“How do we get enough drivers?” he said in response to a question from Stephens analyst Jack Atkins. “I don’t know.”

Parker then gave an overview of the situation facing Covenant, and by extension other companies, in trying to recruit drivers. One problem: With rates so high, companies are encountering the fact that a driver doesn’t need to work a full...

https://s29755.pcdn.co/news/70k-for-part-time-driver-covenant-ceo-says-that-could-be-fine-for-some

Covenant declares strongest first quarter in its history

Covenant Logistics Group (NASDAQ: CVLG) turned in a strong performance in the first three months of the year, declaring it the strongest first quarter earnings in the company’s history.

Non-generally accepted accounting principles earnings of 56 cents per share blew past Wall Street consensus forecasts by 20 cents per share, according to SeekingAlpha. The GAAP earnings of 65 cents topped consensus forecast by 30 cents per share. 

In the first quarter of last year, GAAP and non-GAAP net income...

https://s29755.pcdn.co/news/covenant-declares-strongest-first-quarter-in-its-history

Three-person ‘office of the CEO’ to run Covenant, but Parker retains post

David Parker, who along with his wife is the largest shareholder in Covenant Logistics (NASDAQ: CVLG), is remaining as CEO of the company but as one part of a newly created three-person “Office of the CEO.”

The office will also include Joey Hogan as president of the company and Paul Bunn as senior executive vice president and COO. Both will report to Parker.

One name that might have been seen as being part of any sort of office or CEO succession is John Tweed. He had been appointed co-president...

https://www.freightwaves.com/news/three-person-office-of-the-ceo-to-run-covenant-but-parker-retains-post

Covenant: Co-president shifting to consultant, targets $40M in buybacks

Covenant Logistics’ (NASDAQ: CVLG) fourth-quarter earnings, beyond being another solid step in what company officials have said is a major transformation in the company’s structure, took two significant steps in its administration and its relationship with shareholders.

First, the truckload carrier, which has not paid a dividend for several years, is set to return money to shareholders through a $40 million share buyback. The move appears to be driven by the fact that Covenant stock has lagged...

https://www.freightwaves.com/news/covenant-co-president-shifting-to-consultant-targets-40m-in-buybacks

Frozen Food Express latest to announce driver pay hike

Driver pay on the rise across the industry

Temperature-controlled less-than-truckload carrier Frozen Food Express (FFE) announced Monday that linehaul driver pay will increase significantly beginning in early January.   

The Dallas-based company plans to increase pay for new linehaul solo company drivers by 25%, with some experienced drivers earning up to 60 cents per mile in base pay. Linehaul pay for the company’s team drivers will increase 20%.

“Our drivers have been resilient throughout this entire year dealing with unprecedented...

https://www.freightwaves.com/news/frozen-food-express-latest-to-announce-driver-pay-hike

Covenant stock hammered on earnings, but execs affirm support for transition

A quarterly earnings report in the middle of a company transition can always be tricky, as the short-term focus on earnings and revenue can obscure that management is trying to implement a plan to get to a different place.

In that sense, the third-quarter report of Covenant Logistics could be viewed as a success. An adjusted earnings per share of 56 cents beat consensus by 1 cent, according to SeekingAlpha. And revenue of $210.8 million was better than consensus by $3.36 million. And it was...

https://www.freightwaves.com/news/covenant-stock-hammered-on-earnings-but-execs-affirm-support-for-transition

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