CHATTANOOGA, Tenn., Aug. 17, 2022 (GLOBE NEWSWIRE) — Covenant Logistics Group, Inc. (NASDAQ/GS: CVLG) (“Covenant” or the “Firm”) introduced right this moment that it has agreed to promote a California terminal for about $44.0 million, in addition to the declaration of a quarterly money dividend of $0.08 per share of frequent inventory.
Actual Property Sale
The Firm has agreed to promote a California terminal for about $44.0 million in money internet of transaction prices. The customer has paid a $2.0 million deposit on the property that’s non-refundable, topic to restricted exceptions. The transaction is predicted to shut by the top of the third quarter, topic to customary circumstances. The Firm expects to file a pretax achieve on sale of property of roughly $37.5 million. The Firm anticipates relocating personnel and gear to different places and reducing working bills related to Southern California by roughly $500,000 yearly with no disruption in service.
Dividend
In reference to the Board’s continued monitoring of the productiveness of the Firm’s belongings and allocation of money to the perfect returns, in addition to a 1% dividend objective, the Board declared a quarterly money dividend of $0.08 per share of Class A and Class B frequent inventory. The quarterly money dividend is pursuant to a quarterly money dividend program beforehand accredited by the board of administrators. The dividend is payable to stockholders of file on September 2, 2022 and is predicted to be paid on September 30, 2022.
About Covenant Logistics Group, Inc.
Covenant Logistics Group Inc., by means of its subsidiaries, presents a portfolio of transportation and logistics providers to clients all through america. Major providers embody asset-based expedited and devoted truckload capability, in addition to asset-light warehousing, transportation administration, and freight brokerage functionality. As well as, Transport Enterprise Leasing is an affiliated firm offering income gear gross sales and leasing providers to the trucking trade. Covenant’s Class A typical inventory is traded on NASDAQ International Choose Market beneath the image, “CVLG.”
Ahead Trying Statements
This press launch accommodates sure statements which may be thought of forward-looking statements throughout the which means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Trade Act of 1934, as amended, and such statements are topic to the protected harbor created by these sections and the Non-public Securities Litigation Reform Act of 1995, as amended. Such statements could also be recognized by their use of phrases or phrases akin to “expects,” “estimates,” “initiatives,” “believes,” “anticipates,” “plans,” “might,” “would,” “might,” “will,” “intends,” “outlook,” “focus,” “search,” “potential,” “mission,” “proceed,” “objective,” “goal,” “goal,” derivations thereof, and comparable phrases and phrases. Ahead-looking statements are based mostly upon the present beliefs and expectations of our administration and are inherently topic to dangers and uncertainties, a few of which can’t be predicted or quantified, which might trigger future occasions and precise outcomes to vary materially from these set forth in, contemplated by, or underlying the forward-looking statements. On this press launch, statements referring to the anticipated achieve on sale of the California terminal and discount of working bills are forward-looking statements. The next elements, amongst others might trigger precise outcomes to vary materially from these within the forward-looking statements: Our enterprise is topic to financial, credit score, enterprise, and regulatory elements affecting the truckload trade which are largely past our management together with price inflation and world provide chain disruption that might have an effect on (i) the quantity, pricing, and predictability of buyer demand, (ii) the provision, pricing, and supply schedule of apparatus and elements, (iii) the provision and compensation of staff and third-party capability suppliers, and (iv) different facets of our enterprise; We is probably not profitable in attaining our strategic plan; We function in a extremely aggressive and fragmented trade; We might not develop considerably sooner or later and we is probably not profitable in bettering our profitability; We might not make acquisitions sooner or later, or if we do, we is probably not profitable in our acquisition technique; Will increase in driver compensation or difficulties attracting and retaining certified drivers might have a materially opposed impact on our profitability and the power to take care of or develop our fleet; Our engagement of unbiased contractors to offer a portion of our capability exposes us to totally different dangers than we face with our tractors pushed by firm drivers; We derive a good portion of our revenues from our main clients; Fluctuations within the value or availability of gas, the quantity and phrases of diesel gas buy commitments, surcharge assortment, and hedging actions might enhance our prices of operation; We rely on third-party suppliers, significantly in our Managed Freight phase; We rely on the right functioning and availability of our administration info and communication techniques and different info expertise belongings (together with the info contained therein) and a system failure or unavailability, together with these brought on by cybersecurity breaches, or an lack of ability to successfully improve such techniques and belongings might trigger a big disruption to our enterprise; If we’re unable to retain our key staff, our enterprise, monetary situation, and outcomes of operations could possibly be harmed; Seasonality and the impression of climate and different catastrophic occasions have an effect on our operations and profitability; We self-insure for a good portion of our claims publicity, which might considerably enhance the volatility of, and reduce the quantity of, our earnings; Our self-insurance for auto legal responsibility claims and our use of captive insurance coverage firms might adversely impression our operations; We have now skilled, and will expertise further, erosion of accessible limits in our mixture insurance coverage insurance policies; We might expertise further expense to reinstate insurance coverage insurance policies on account of legal responsibility claims; We function in a extremely regulated trade; If our unbiased contractor drivers are deemed by regulators or judicial course of to be staff, our enterprise, monetary situation, and outcomes of operations could possibly be adversely affected; Developments in labor and employment legislation and any unionizing efforts by staff might have a materially opposed impact on our outcomes of operations; The Compliance Security Accountability program adopted by the Federal Motor Service Security Administration might adversely have an effect on our profitability and operations, our capacity to take care of or develop our fleet, and our buyer relationships; An unfavorable improvement within the Division of Transportation security score at any of our motor carriers might have a materially opposed impact on our operations and profitability; Compliance with numerous environmental legal guidelines and laws; Adjustments to commerce regulation, quotas, duties, or tariffs; Litigation might adversely have an effect on our enterprise, monetary situation, and outcomes of operations; Growing consideration on environmental, social and governance issues might have a damaging impression on our enterprise, impose further prices on us, and expose us to further dangers; Our ABL credit score facility and different financing preparations comprise sure covenants, restrictions, and necessities, and we could also be unable to adjust to such covenants, restrictions, and necessities; Sooner or later, we might must get hold of further financing that is probably not obtainable or, whether it is obtainable, might end in a discount within the proportion possession of our stockholders; Our indebtedness and finance and working lease obligations might adversely have an effect on our capacity to answer modifications in our trade or enterprise; Our profitability could also be materially adversely impacted if our capital investments don’t match buyer demand or if there’s a decline within the availability of funding sources for these investments; Elevated costs for brand spanking new income gear, design modifications of recent engines, future makes use of of autonomous tractors, volatility within the used gear market, decreased availability of recent income gear, and the failure of producers to fulfill their sale or trade-back obligations to us might have a materially opposed impact on our enterprise, monetary situation, outcomes of operations, and profitability; Our 49% owned subsidiary, Transport Enterprise Leasing, faces sure further dangers explicit to its operations, any one in all which might adversely have an effect on our working outcomes; We might incur further fees in reference to the disposition of considerably all the operations and belongings of TFS; We might decide that our goodwill and different intangible belongings are impaired, thus recognizing a associated loss; Our Chairman of the Board and Chief Government Officer and his spouse management a big portion of our inventory and have substantial management over us, which might restrict different stockholders’ capacity to affect the end result of key transactions, together with modifications of management; Provisions in our constitution paperwork or Nevada legislation might inhibit a takeover, which might restrict the worth traders could be keen to pay for our Class A typical inventory; The market value of our Class A typical inventory could also be unstable; We can not assure the timing or quantity of repurchases of our Class A typical inventory or dividends on our Class A and Class B frequent inventory, if any; If we fail to take care of efficient inner management over monetary reporting sooner or later, there could possibly be an elevated risk of a cloth misstatement, and such a misstatement might trigger traders to lose confidence in our monetary statements, which might have a cloth opposed impact on our inventory value; and We could possibly be negatively impacted by the COVID-19 outbreak or different comparable outbreaks. The declaration of future dividends is topic to approval of our board of administrators and numerous dangers and uncertainties, together with, however not restricted to: our money circulation and money wants; compliance with relevant legislation; restrictions on the cost of dividends beneath current or future financing preparations; modifications in tax legal guidelines referring to company dividends; deterioration in our monetary situation or outcomes: and people dangers, uncertainties, and different elements recognized from time-to-time in our filings with the Securities and Trade Fee. Readers ought to overview and contemplate these elements together with the varied disclosures by the Firm in its press releases, stockholder stories, and filings with the Securities and Trade Fee. We disclaim any obligation to replace or revise any forward-looking statements to replicate precise outcomes or modifications within the elements affecting the forward-looking info.
For additional info contact:
Joey B. Hogan, President
[email protected]
Tripp Grant, Government Vice President and Chief Monetary Officer
[email protected]
For copies of Firm info contact:
Brooke McKenzie, Government Administrative Assistant
[email protected]