Covenant Transportation Group Provides Earnings Guidance for the First Half and Second Half of 2013; Announces Extension and Amendment of Revolving Credit Facility
January 30, 2013 at 04:02 pm
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Covenant Transportation Group provided earnings guidance for the first half and second half of 2013. The company expects earnings comparisons in the first half of 2013 to be negative compared with 2011.
The company expected earnings comparisons becoming positive in the second half of 2013.
The company announced the extension and amendment of its revolving credit facility with Bank of America and J.P. Morgan, with an effective date of December 31, 2012. Highlights of the amendment are as follows: maturity extended three years to September 2017; commitment increased $10.0 million to $95.0 million; fixed charge coverage tested only if excess revolver availability is less than $11.9 million; leverage ratio coverage eliminated; minimum availability requirement of $15.0 million eliminated; and pricing grid reduced with effectiveness at December 31, 2012. The company expects at least $500,000 of annual interest savings as well as additional financial flexibility to result from the amendment.
Covenant Logistics Group, Inc., through its subsidiaries, offers a portfolio of transportation and logistics services to customers throughout the United States. The Companyâs primary services include asset-based expedited and dedicated truckload capacity, as well as asset-light warehousing, transportation management and freight brokerage capability. Its asset-based transportation services include two segments: Expedited and Dedicated. The Expedited segment primarily provides truckload services to customers. The Dedicated segment provides customers with committed truckload capacity over contracted periods. The Managed Freight segment includes its brokerage services and transportation management services (TMS). The Warehousing segment provides day-to-day warehouse management services for customers who have chosen to outsource this function. It also provides shuttle and switching services related to shuttling containers and trailers in or around freight yards and to/from warehouses.
Covenant Transportation Group Provides Earnings Guidance for the First Half and Second Half of 2013; Announces Extension and Amendment of Revolving Credit Facility
COVENANT LOGISTICS GROUP, INC. 
