Covenant Logistics Group, Inc. Class A (CVLG) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to today's Covenant Logistics Group Q1 2025 Earnings Release and Investor Conference Call. Our host for today's call is Chris Grant. At this time, our participants will be in a listen-only mode. Later, we will conduct a question-and-answer session. I would now like to turn the call over to your host, Mr. Grant. You may begin. Good morning, everyone. Welcome to the Covenant Logistics Group first quarter 2025 conference call. As a reminder, this call will contain forward-looking statements under the Private Securities Litigation Reform Act, which are subject to risks and uncertainties that could cause actual results to differ materially. Please review our SEC filings and most recent risk factors. We undertake no obligation to publicly update or revise any forward-looking statements. Our prepared comments and additional financial information are available on our website at www.covenantlogistics.com slash investors. Joining me on the call today are CEO David Parker, President Paul Bunn, and COO Justin Kale. Before diving into the details, I'd like to give an overview of changes in our business mix that impact our revenue and expense comparisons year over year. We continue to increase assets and people invested in our dedicated protein business and reduce assets and people allocated to lower return business. In general, specialized dedicated customers have higher revenue per mile, higher cost per mile, and fewer miles per tractor per year than our other asset-based customers. As this specialized business grows, revenue per mile, driver and other employee cost per mile, and fixed costs per mile all increase. The year-over-year changes are more indicative of business necks than apples-to-apples rate and cost increases. Even with the change in business necks, miles r...