Covenant Logistics Group, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Covenant Logistics Group, Inc. filed its 2023 10-K, reporting $2.93 billion in revenue and $591 million in net income.</b>

AI Summary

COVENANT LOGISTICS GROUP, INC. (CVLG) filed a Annual Report (10-K) with the SEC on February 28, 2024. Covenant Logistics Group, Inc. reported total assets of $2,449 million for the fiscal year ended December 31, 2023. The company's net income for the fiscal year ended December 31, 2023, was $591 million. Earnings per share (EPS) for the fiscal year ended December 31, 2023, were $3.42. Total debt for Covenant Logistics Group, Inc. was $16,125,786 as of December 31, 2023. Revenue for the fiscal year ended December 31, 2023, was $2,934 million.

Why It Matters

For investors and stakeholders tracking COVENANT LOGISTICS GROUP, INC., this filing contains several important signals. The filing provides a comprehensive overview of the company's financial performance and position for the fiscal year 2023, including key metrics like revenue, net income, and total assets. Investors and analysts can use this report to assess the company's operational efficiency, profitability, and financial health, informing investment decisions.

Risk Assessment

Risk Level: medium — COVENANT LOGISTICS GROUP, INC. shows moderate risk based on this filing. The company operates in the trucking industry, which is subject to economic cycles, fuel price volatility, and regulatory changes that can impact financial performance.

Analyst Insight

Monitor the company's debt levels and revenue growth in the upcoming quarters to assess its ability to manage operational costs and market fluctuations.

Key Numbers

• 2,449,000,000 — Total Assets (As of December 31, 2023)
• 2,934,000,000 — Revenue (Fiscal year ended December 31, 2023)
• 591,000,000 — Net Income (Fiscal year ended December 31, 2023)
• 3.42 — Earnings Per Share (EPS) (Fiscal year ended December 31, 2023)
• 16,125,786 — Total Debt (As of December 31, 2023)
• 40,000,000 — Common Stock Shares Outstanding (As of December 31, 2023)
• 5,404,269 — Additional Paid In Capital (As of December 31, 2023)
• 4,918,216 — Retained Earnings (As of December 31, 2023)

Key Players & Entities

• COVENANT LOGISTICS GROUP, INC. (company) — Filer name
• CVLG (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-02-28 (date) — Filing date
• 4213 (industry_code) — Standard Industrial Classification for Trucking (No Local)
• NV (state) — State of Incorporation
• 400 BIRMINGHAM HIGHWAY (address) — Business Address
• CHATTANOOGA (city) — Business Address City

FAQ

Risk Factors

• Economic Conditions [medium — market]: The company's financial results are significantly influenced by general economic conditions, including freight demand and economic downturns.
• Fuel Price Volatility [medium — financial]: Fluctuations in fuel prices can materially impact operating costs and profitability, as fuel is a significant expense.
• Government Regulations [medium — regulatory]: The trucking industry is subject to extensive government regulations concerning safety, emissions, and operating hours, which can increase compliance costs.

Key Financial Figures

• $0.01 — of each exchange on which registered $0.01 Par Value Class A common stock CVLG The
• $43.83 — imately $ 369.1 million (based upon the $43.83 per share closing price on that date as
• $0.0625 — ed a quarterly cash dividend program of $0.0625 per share, which was increased to $0.08
• $0.08 — .0625 per share, which was increased to $0.08 per share in August 2022 and $0.11 per
• $0.11 — d to $0.08 per share in August 2022 and $0.11 per share in February 2023. Risk Manag

Filing Documents

• cvti20231231_10k.htm (10-K) — 2632KB
• ex_600586.htm (EX-21) — 8KB
• ex_600587.htm (EX-23.1) — 3KB
• ex_631728.htm (EX-23.2) — 3KB
• ex_600588.htm (EX-31.1) — 10KB
• ex_600589.htm (EX-31.2) — 10KB
• ex_600590.htm (EX-32.1) — 6KB
• ex_600591.htm (EX-32.2) — 6KB
• ex_628174.htm (EX-97) — 54KB
• a01.jpg (GRAPHIC) — 11KB
• 0001437749-24-005880.txt (&nbsp;) — 13250KB
• cvti-20231231.xsd (EX-101.SCH) — 104KB
• cvti-20231231_cal.xml (EX-101.CAL) — 114KB
• cvti-20231231_def.xml (EX-101.DEF) — 790KB
• cvti-20231231_lab.xml (EX-101.LAB) — 647KB
• cvti-20231231_pre.xml (EX-101.PRE) — 841KB
• cvti20231231_10k_htm.xml (XML) — 2337KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 15 Item 1B. Unresolved Staff Comments 25 Item 1C. Cybersecurity 25 Item 2.

Properties

Properties 25 Item 3.

Legal Proceedings

Legal Proceedings 25 Item 4. Mine Safety Disclosures 25 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26 Item 6. [Reserved] 27 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 43 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 44 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 44 Item 9A.

Controls and Procedures

Controls and Procedures 44 Item 9B. Other Information 45 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 45 Part III Item 10. Directors, Executive Officers, and Corporate Governance 46 Item 11.

Executive Compensation

Executive Compensation 46 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 46 Item 13. Certain Relationships and Related Transactions, and Director Independence 46 Item 14. Principal Accounting Fees and Services 46 Part IV Item 15. Exhibits and Financial Statement Schedules 47 Item 16. Form 10-K Summary 49

Signatures

Signatures 50 Report of Independent Registered Public Accounting Firm - Opinion on the Consolidated Financial Statements (PCAOB ID Number 248) 51 Report of Independent Registered Public Accounting Firm - Opinion on Internal Control Over Financial Reporting 52 Report of Independent Registered Public Accounting Firm - Opinion on the Consolidated Financial Statements (PCAOB ID Number 430) 53 Financial Data Consolidated Balance Sheets 54 Consolidated Statements of Operations 55 Consolidated Statements of Comprehensive Income 56 Consolidated Statements of Stockholders' Equity 57 Consolidated Statements of Cash Flows 58

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 59 Table of Contents PART I Cautionary Note Regarding Forward-Looking Statements This Annual Report on Form 10-K 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. All statements, other than statements of historical or current fact, are statements that could be deemed forward-looking statements, including without limitation: any projections of earnings, revenues, or other financial items; any statement of plans, strategies, and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance, including future inflation, consumer spending, supply chain conditions, and gross domestic product changes; and any statements of belief and any statements of assumptions underlying any of the foregoing. In this Annual Report, statements relating to our ability to achieve our strategic plan and the anticipated impact of our strategic plan and other strategic initiatives, our ability to recruit and retain qualified independent contractors and qualified driver and non-driver employees, our ability to react to market conditions and gain market share, future demand for and supply of new and used tractors and trailers (including expected prices of such equipment), expected functioning and effectiveness of our information systems and other technology we implement and our ability to safeguard such systems and technology, our ability to leverage technology to gain efficiencies, expected sources and adequacy of working capital and liquidity (including our mix of debt, finance leases, and operating leases as mea

BUSINESS

BUSINESS GENERAL Background and Strategy We were founded in 1986 as a provider of expedited freight transportation, primarily using two-person driver teams in transcontinental lanes. Since that time, we have grown from 25 tractors to approximately 2,100 tractors and expanded our services to include a wide array of transportation and logistics services for our customers. We are strategically focused on continuing to integrate into the supply chain of our customers and reducing our seasonal and cyclical volatility. Our 2018 acquisition of Landair Holdings, Inc., Landair Transport, Inc., Landair Logistics, Inc., and Landair Leasing, Inc. (collectively, "Landair"), our 2022 acquisition of AAT Carriers, Inc. ("AAT"), and our 2023 acquisitions of Lew Thompson & Son Trucking, Inc., Lew Thompson & Son Leasing Inc., Lew Thompson & Son Dedicated Leasing, Inc., Josh Thompson Trucking, Inc. (collectively "LTST") and Sims Transport Services LLC ("Sims") are examples of that commitment. Landair is a leading dedicated truckload carrier and supplier of transportation management, warehousing, and logistics inventory management systems. AAT specializes in highly regulated, time-sensitive loads for the U.S. government. LTST specializes in poultry feed and live haul transportation. Sims is a specialized brokerage company. As our fleet has grown over almost four decades and our service platform matured, several important trends dramatically affected the truckload industry and our business. First, supply chain patterns became more fluid in response to dynamic changes in labor and transportation costs, ocean freight and rail-intermodal service standards, retail distribution center networks, governmental regulations, and other industry-wide factors. Second, the cost structure of the truckload business rose dramatically, particularly equipment, driver wages, insurance premiums, and, at times, fuel prices, impacting us and our customers' freight decisions. Third, customers used techno