SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number 0-24960
Covenant Transport, Inc.
(Exact name of registrant as specified in its charter)
Nevada 88-0320154
(State or other jurisdiction of (I.R.S. employer
incorporation or jurisdiction) identification number)
1320 East 23rd Street
Chattanooga, TN 37404
(423) 629-393
(Address, including zip code, and telephone number,
including area code, of registrant's principal executive office)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to the
filing requirements for at least the past 90 days.
YES [X] NO [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date (July 7, 1996)
Class A Common Stock, $.01 par value: 11,000,000 shares
Class B Common Stock, $.01 par value: 2,350,000 shares
Exhibit Index is on Page 12.
<PAGE> 2
PART I
FINANCIAL INFORMATION
PAGE
NUMBER
Item 1. Financial statements
Condensed consolidated balance sheets as of December 31,
1995 and June 30, 1996 (unaudited). . . . . . . . . . . . 3
Condensed consolidated statements of operations for
the three and six months ended June 30, 1995 and
1996 (unaudited). . . . . . . . . . . . . . . . . . . . . 4
Condensed consolidated statements of stockholders'
equity for the six months ended June 30, 1995 and
1996 (unaudited). . . . . . . . . . . . . . . . . . . . . 5
Condensed consolidated statements of cash flows for the
six months ended June 30, 1995 and 1996 (unaudited) . . . 6
Notes to condensed consolidated financial statements
(unaudited) . . . . . . . . . . . . . . . . . . . . . . . 7
Item 2. Management's discussion and analysis of financial condition
and results of operations . . . . . . . . . . . . . . . . 8 - 11
PART II
OTHER INFORMATION
PAGE
NUMBER
Item 1. Legal proceedings . . . . . . . . . . . . . . . . . . . . . 12
Items 2.,
3., 4.,
and 5. Not applicable
Item 6. Exhibits and reports on Form 8-K. . . . . . . . . . . . . . 12
<PAGE> 3
COVENANT TRANSPORT, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 1995 June 30, 1996
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 461,288 $ 1,456,509
Accounts receivable, net of allowance of
$400,000 in 1995, and $450,000 in 1996 29,737,998 33,023,305
Drivers advances and other receivables 6,984,564 574,727
Tires and parts inventory 801,460 640,018
Prepaid expenses 2,692,158 4,163,110
Deferred income taxes 176,000 162,000
------------ ------------
Total current assets 40,853,468 40,019,669
Property and equipment, at cost 149,428,386 177,506,853
Less accumulated depreciation and amortization 22,020,359 31,716,062
------------ ------------
Net property and equipment 127,408,027 145,790,791
Other 1,119,484 1,189,782
Total assets $169,380,979 $187,000,242
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 50,000 $ 50,000
Accounts payable 3,512,918 5,853,164
Accrued expenses 3,152,199 4,240,818
------------ ------------
Total current liabilities 6,715,117 10,143,982
Long-term debt, less current maturities 80,150,000 90,150,000
Deferred income taxes 9,764,000 10,548,000
------------ ------------
Total liabilities 96,629,117 110,841,982
------------ ------------
Stockholders' equity:
Class A common stock, $.01 par value;
11,000,000 shares issued and outstanding 110,000 110,000
Class B common stock, $.01 par value;
2,350,000 shares issued and outstanding 23,500 23,500
Additional paid-in capital 50,469,596 50,469,596
Retained earnings 22,148,766 25,555,164
------------ ------------
Total stockholders' equity 72,751,862 76,158,260
------------ ------------
Total liabilities and stockholders'equity $169,380,979 $187,000,242
============ ============
The accompanying notes are an integral part of these condensed financial
statements.
<PAGE> 4
COVENANT TRANSPORT, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three months ended Six months ended
June 30, June 30,
1995 1996 1995 1996
------------ ------------ ------------ ------------
Revenue . . . . . . $ 44,635,268 $ 59,625,531 $ 83,044,313 $109,083,358
Operating expenses:
Salaries, wages,
and related
expenses. . . . . 21,064,388 27,033,645 38,968,088 50,559,249
Fuel, oil, and
road expenses . . 9,318,129 13,917,483 17,149,834 25,385,520
Revenue equipment
rentals and
purchased
transportation. . 298,648 90,159 549,620 321,179
Repairs. . . . . . 704,471 959,893 1,425,501 2,014,008
Operating taxes
and licenses. . . 1,192,178 1,556,754 2,262,480 3,078,858
Insurance. . . . . 1,326,550 1,511,214 2,328,451 2,866,276
General supplies
and expenses. . . 2,495,903 3,053,421 4,702,454 6,093,233
Depreciation and
amortization,
including gain
on disposition
of equipment. . . 3,977,344 5,410,893 7,352,931 10,550,486
------------ ------------ ------------ ------------
Total operating
expenses. . . . 40,377,611 52,533,462 74,739,359 100,868,809
------------ ------------ ------------ ------------
Operating income 4,257,657 6,092,069 8,304,954 8,214,549
Interest expense. . 984,926 1,491,991 1,757,204 2,860,151
------------ ------------ ------------ ------------
Income before
income taxes . . 3,272,731 4,600,078 6,547,750 5,354,398
Income tax expense 1,181,000 1,676,000 2,360,000 1,948,000
------------ ------------ ------------ ------------
Net income . . 2,091,731 2,924,078 4,187,750 3,406,398
------------ ------------ ------------ ------------
Earnings per share
Net income . . . . $ 0.16 $ 0.22 $ 0.31 $ 0.26
============ ============ ============ ============
The accompanying notes are an integral part of these condensed consolidated
financial statements.
<PAGE> 5
<TABLE>
COVENANT TRANSPORT, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
For the six months ended June 30, 1995 and 1996
(unaudited)
<CAPTION>
Series I Class A Class B Additional
Total
Preferred Common Common Paid-In Retained Stockholders'
Stock Stock Stock Capital Earnings Equity
<S> <C> <C> <C> <C> <C> <C>
- - ---------------------------------------------------------------------------
Balances at
December 31,
1994 $ - $110,000 $ 23,500 $50,469,596 $12,865,967 $63,469,063
Net income
(unaudited) - - - - 4,187,750 4,187,750
- - ---------------------------------------------------------------------------
Balances at
June 30, 1995
(unaudited) $ - $110,000 $ 23,500 $50,469,596 $17,053,717 $67,656,813
===========================================================================
Balances at
December 31,
1995 $ - $110,000 $ 23,500 $50,469,596 $22,148,766 $72,751,862
Net income
(unaudited) - - - - 3,406,398 3,406,398
- - --------------------------------------------------------------------------
Balances at
June 30, 1996
(unaudited) $ - $110,000 $ 23,500 $50,469,596 $25,555,164 $76,158,260
==========================================================================
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
<PAGE> 6
COVENANT TRANSPORT, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six months ended June 30, 1995 and 1996
(Unaudited)
1995 1996
------------- -------------
Cash flows from operating activities:
Net income $ 4,187,750 $ 3,406,398
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for losses on receivables 51,544 176,461
Depreciation and amortization 7,582,326 10,693,238
Deferred income tax expense 2,050,000 798,000
Gain on disposition of property
and equipment (229,395) (212,752)
Changes in operating assets and
liabilities:
Receivables, advances and other
assets (8,047,661) 2,913,929
Prepaid expenses (1,797,393) (1,470,952)
Tire and parts inventory (223,121) 161,442
Accounts payable and accrued expenses (1,042,791) 3,428,865
------------- -------------
Net cash flows provided by operating
activities 2,531,259 19,894,629
------------- -------------
Cash flows from investing activities:
Acquisition of property and equipment (38,469,890) (31,315,637)
Proceeds from disposition of property
and equipment 4,859,131 2,548,681
------------- -------------
Net cash flows used by
investing activities (33,610,759) (28,766,956)
------------- -------------
Cash flows from financing activities:
Proceeds from issuance of long-term debt 62,000,000 10,000,000
Repayments of long-term debt (35,106,759) -
Deferred debt issuance costs (202,900) (132,452)
------------- -------------
Net cash flows provided
by financing activities 26,690,341 9,867,548
------------- -------------
Net change in cash and cash equivalents (4,389,159) 995,221
Cash and cash equivalents at
beginning of period 4,877,361 461,288
------------- -------------
Cash and cash equivalents at end of period $ 488,202 $ 1,456,509
============= =============
The accompanying notes are an integral part of these condensed consolidated
financial statements.
<PAGE> 7
COVENANT TRANSPORT, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Basis of Presentation
The condensed consolidated financial statements include the accounts
of Covenant Transport, Inc., a Nevada holding company, and its
wholly-owned subsidiary (the Company). All significant intercompany
balances and transactions have been eliminated in consolidation.
The financial statements have been prepared, without audit, in
accordance with generally accepted accounting principles, pursuant
to the rules and regulations of the Securities and Exchange
Commission. In the opinion of management, the accompanying
financial statements include all adjustments which are necessary for
a fair presentation of the results for the interim periods
presented, such adjustments being of a normal recurring nature.
Certain information and footnote disclosures have been condensed or
omitted pursuant to such rules and regulations. The December 31,
1995 Condensed Consolidated Balance Sheet was derived from the
audited balance sheet of the Company for the year then ended. It is
suggested that these condensed consolidated financial statements and
notes thereto be read in conjunction with the consolidated financial
statements and notes thereto included in the Company's Form 10-K for
the year ended December 31, 1995. Results of operations in interim
periods are not necessarily indicative of results to be expected for
a full year.
<PAGE> 8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following table sets forth the percentage relationship of certain items to
revenue for the periods indicated:
Three months ended Six months ended
June 30, June 30,
1995 1996 1995 1996
--------------------------------------------
Revenue 100.0% 100.0% 100.0% 100.0%
Operating expenses:
Salaries, wages, and
related expenses 47.2 45.3 46.9 46.3
Fuel, oil, and road expenses 20.9 23.4 20.7 23.3
Revenue equipment rentals and
purchased transportation 0.7 0.2 0.7 0.3
Repairs 1.6 1.6 1.7 1.9
Operating taxes and licenses 2.6 2.6 2.7 2.8
Insurance 3.0 2.5 2.8 2.6
General supplies and expenses 5.6 5.1 5.7 5.6
Depreciation and amortization 8.9 9.1 8.8 9.7
--------------------------------------------
Total operating expenses 90.5 89.8 90.0 92.5
--------------------------------------------
Operating income 9.5 10.2 10.0 7.5
Interest expense 2.2 2.5 2.1 2.6
--------------------------------------------
Income before income taxes 7.3 7.7 7.9 4.9
Provision for income taxes 2.6 2.8 2.9 1.8
--------------------------------------------
Net income 4.7% 4.9% 5.0% 3.1%
============================================
COMPARISON OF THREE MONTHS ENDED JUNE 30, 1996 TO THREE MONTHS
ENDED JUNE 30, 1995
Revenue increased 33.6%, to $59.6 million in the 1996 period from $44.6
million in the 1995 period. The revenue increase was primarily generated by a
30.6% increase in weighted average tractors, to 1,493 during the 1996 quarter
from 1,143 during the 1995 quarter, as the Company expanded to meet demand
from new customers and higher volume from existing customers. Tractor
productivity also increased, as average miles per tractor increased to 38,462
in the 1996 period from 38,029 in the 1995 period and deadhead decreased to
5.4% of total miles in the 1996 period from 5.9% in the 1995 period. Average
revenue per loaded mile remained virtually unchanged at $1.10 in the 1996
period ($1.08 net of the surcharge) compared with $1.09 in the 1995 period.
The 1996 revenue number included approximately $775,000 attributable to a fuel
surcharge instituted in the second quarter of 1996 in order to offset
unusually high per gallon fuel prices.
Salaries, wages and related expenses decreased to 45.3% of revenue in the 1996
period from 47.2% in the 1995 period. Driver wages as a percentage of revenue
decreased to 32.9% in the 1996 period from 33.7% in the 1995 period, and
employee leasing company charges decreased to 5.9% of revenue in the 1996
period from 6.9% in the 1995 period. The decrease as a percentage of revenue
was attributable to improved equipment utilization in 1996 as well as the
lower leasing company rates.
<PAGE> 9
Fuel, oil and road expenses increased to 23.4% of revenue in the 1996 period
from 20.9% in the 995 period, as a result of increased per gallon fuel costs
in the 1996 period. The fuel surcharge implemented during the 1996 period
recovered more than 50% of the fuel price increase.
Revenue equipment rentals and purchased transportation decreased to 0.2% of
revenue in the 1996 period from 0.7% in the 1995 period. During the 1996
period, the Company continued to reduce its revenue equipment under long-term
operating leases and by the end of the quarter, had eliminated all long-term
operating leases for revenue equipment.
Insurance, consisting primarily of premiums for liability, physical damage and
cargo damage insurance, decreased to 2.5% of revenue in the 1996 period from
3.0% in the 1995 period, as the Company's safety record continued to result in
rate reductions.
General supplies and expenses, consisting primarily of driver recruiting
expenses, communications and agent commissions, decreased to 5.1% of revenue
in the 1996 period from 5.6% in the 1995 period. Driver recruiting, agent
commissions and communications all decreased as a percent of revenue during
the 1996 period, partially because of improved revenue per tractor. These
savings were partially offset by higher costs in the driver orientation
program as the company added one day to driver orientation.
Depreciation and amortization, consisting primarily of depreciation of revenue
equipment, increased to 9.1% of revenue in the 1996 period from 8.9% in the
1995 period as a result of all tractors being equipped with satellite
communication units for the entire 1996 period while in the 1995 period not
all tractors had such units.
Primarily as a result of the foregoing, the Company's operating ratio was
89.8% in the 1996 period versus 90.5% in the 1995 period.
Interest expense increased to 2.5% of revenue in the 1996 period from 2.2% in
the 1995 period, as higher average debt balances ($84.7 million in the 1996
period compared with $54.5 million in the 1995 period) more than offset lower
average interest rates (7.0% in the 1996 period compared with 7.2% in the 1995
period).
The Company's effective tax rate was 36.4% in the 1996 period, compared with
36.1% in the 1995 period.
Primarily as a result of the factors described above, net income increased to
$2.9 million in the 1996 period (4.9% of revenue) from $2.1 million in the
1995 period (4.7% of revenue).
<PAGE> 10
COMPARISON OF SIX MONTHS ENDED JUNE 30, 1996 TO SIX MONTHS ENDED JUNE 30, 1995
Revenue increased 31.4%, to $109.1 million in the 1996 period from $83.0
million in the 1995 period. The revenue increase was primarily generated by a
31.5% increase in weighted average tractors, to 1,442 during the 1996 period
from 1,097 during the 1995 period, as the Company expanded to meet demand from
new customers and higher volume from existing customers. Tractor productivity
also increased, as average miles per tractor increased to 73,650 in the 1996
period from 73,587 in the 1995 period, and deadhead decreased to 5.5% of total
miles in the 1996 period from 6.0% in the 1995 period. Average revenue per
loaded mile was unchanged at $1.09 in the 1996 period ($1.08 net of the
surcharge) and the 1995 period. The 1996 revenue number included
approximately $775,000 attributable to a fuel surcharge instituted in the
second quarter of 1996 in order to offset unusually high per gallon fuel
prices.
Salaries, wages and related expenses decreased to 46.3% of revenue in the 1996
period from 46.9% in the 1995 period. Driver wages as a percentage of revenue
increased to 33.4% in the 1996 period from 33.1% in the 1995 period because of
increased layover and other non-productive wages related to severe weather in
the first quarter 1996. The temporary increase in driver pay was more than
offset by improved equipment utilization and deadhead, as well as a negotiated
reduction in employee leasing company charges which decreased to 6.1% of
revenue in the 1996 period from 7.2% in the 1995 period.
Fuel, oil and road expenses increased to 23.3% of revenue in the 1996 period
from 20.7% in the 1995 period, as a result of increased per gallon fuel costs
in the 1996 period. The fuel surcharge implemented during the second quarter
1996 recovered a portion of the fuel price increase.
Revenue equipment rentals and purchased transportation decreased to 0.3% of
revenue in the 1996 period from 0.7% in the 1995 period. During the 1996
period, the Company continued to reduce its revenue equipment under long-term
operating leases and had eliminated all long-term leases of revenue equipment
at June 30, 1996.
Insurance, consisting primarily of premiums for liability, physical damage and
cargo damage insurance, decreased to 2.6% of revenue in the 1996 period from
2.8% in the 1995 period, as the Company's safety record continued to result in
rate reductions.
General supplies and expenses, consisting primarily of driver recruiting
expenses, communications and agent commissions, decreased to 5.6% of revenue
in the 1996 period from 5.7% in the 1995 period. Cost saving measures
implemented during the 1996 period were somewhat offset by the effects of the
severe weather during the first quarter 1996.
Depreciation and amortization, consisting primarily of depreciation of revenue
equipment, increased to 9.7% of revenue in the 1996 period from 8.8% in the
1995 period as a result of poor equipment utilization during the first quarter
1996 and all tractors being equipped with satellite communication units for
the entire 1996 period while in the 1995 period not all tractors had such
units.
<PAGE> 11
Primarily as a result of the foregoing, the Company's operating ratio was
92.5% in the 1996 period versus 90.0% in the 1995 period.
Interest expense increased to 2.6% of revenue in the 1996 period from 2.1% in
the 1995 period, as higher average debt balances ($82.3 million in the 1996
period compared with $48.9 million in the 1995 period) more than offset lower
average interest rates (6.9% in the 1996 period compared with 7.2% in the 1995
period).
The Company's effective tax rate was 36.0% in the 1996 period and the 1995
period.
Primarily as a result of the factors described above, net income decreased to
$3.4 million in the 1996 period (3.1% of revenue) from $4.2 million in the
1995 period (5.0% of revenue).
LIQUIDITY AND CAPITAL RESOURCES
The growth of the Company's business has required significant investments in
new revenue equipment. The Company's primary sources of liquidity are funds
provided by operations and borrowings under agreements with financial
institutions.
The Company's primary sources of cash flow from operations are net income
increased by depreciation and deferred income taxes. The Company's principal
uses of cash flow from operations are to acquire new revenue equipment, make
payments on debt, and finance receivables and advances associated with growth
in the business. Net cash provided by operating activities was $19.9 million
in the six months ended June 30, 1996 compared with $2.5 million for the same
period in 1995. Collection of a $5 million receivable from the December 1995
sale of used equipment and improved cash flow procedures relating to accounts
payable and accounts receivable contributed to the 1996 improvement in cash
flow.
Net cash used in investing activities was $28.8 million in the 1996 period
versus $33.6 million in the 1995 period. These amounts were used primarily to
acquire additional revenue equipment as the Company expanded its operations.
The Company expects capital expenditures (primarily for revenue equipment),
net of trade-ins, to be approximately $45.0 million in 1996.
Net cash provided by financing activities was $9.9 million in 1996 compared
with $26.7 million in 1995. The cash provided by financing activities related
primarily to borrowings under a credit agreement in both periods.
At June 30, 1996, the Company had outstanding debt of $90.2 million,
substantially all of which related to draws under the $70 million credit
agreement and $25 million in senior notes due October 2005. Interest rates on
this debt ranged from 6.1% to 7.4% at June 30, 1996.
The Company expects to relocate its headquarters during December 1996 in the
Chattanooga area. The headquarters lease agreements contemplate a total land
acquisition and construction budget of up to $15 million under a
"build-to-suit" operating lease. Therefore, the Company will not experience
any cashflow impact during the construction phase. The relocation is expected
to result in a $650,000 annual after-tax increase in the Company's overall
costs of its headquarters given current interest rates. The increase could be
reduced upon successful sale or subleasing of the Company's current facility
in Chattanooga.
The credit agreement, senior notes, and lease agreements subject the Company
to certain restrictions and covenants relating to, among other things,
dividends, tangible net worth, cash flow, acquisitions and dispositions, and
total indebtedness. All of these agreements are cross-defaulted.
<PAGE> 12
PART II OTHER INFORMATION
Item 1. Legal Proceedings
No reportable events or material changes occurred during the
quarter for which this report is filed.
Items 2, 3,
4 and 5. Not applicable
Item 6. Exhibits and reports on Form 8-K.
(a) Exhibits
Exhibit
Number Description
3.1* Restated Articles of Incorporation
3.2* Amended Bylaws dated September 27, 1994
4.1* Restated Articles of Incorporation
4.2* Amended Bylaws dated September 27, 1994
10.1*** Service Agreement dated July 30, 1995, between TTC, Inc. and
Covenant Transport, Inc., a Tennessee corporation, for the
provision of leased personnel.
10.3** Credit Agreement dated January 17, 1995, among Covenant Transport,
Inc., a Tennessee corporation, ABN-AMRO Bank N.V., as agent, and
certain other banks.
10.4* Lease dated January 1, 1990, between David R. and Jacqueline F.
Parker and Covenant Transport, Inc, a Tennessee corporation, with
respect to the Chattanooga, Tennessee headquarters.
10.5* Lease dated June 1, 1994, between David R. and Jacqueline F. Parker
and Covenant Transport, Inc, a Tennessee corporation, with respect
to terminal facility in Greer, South Carolina.
10.6* Real Estate Purchase Agreement dated September 30, 1994, between
Clyde M. Fuller and Covenant Transport, Inc, a Tennessee
corporation, with respect to the terminal facility located in
Oklahoma City, Oklahoma.
10.7* Real Estate Purchase Agreement dated August 10, 1994, between Clyde
M. Fuller and Covenant Transport, Inc, a Tennessee corporation,
with respect to the terminal facility located in Pomona,
California.
10.8* Incentive Stock Plan.
10.9* 401(k) Plan
10.12**** Note Purchase Agreement dated October 15, 1995, among Covenant
Transport, Inc, a Tennessee corporation and CIG & Co.
10.13**** First Amendment to Credit Agreement and Waiver dated October 15,
1995.
10.14***** Participation Agreement dated March 29, 1996, among Covenant
Transport, Inc, a Tennessee corporation, Lease Plan USA, Inc., and
ABN-AMRO Bank, N.V., Atlanta Agency.
10.15***** Second Amendment to Credit Agreement and Waiver dated April 12,
1996.
10.16***** First Amendment to Note Purchase Agreement and Waiver dated April
1, 1996.
11 Statement re: Computation of Per Share Earnings (page 14 herein).
27 Financial Data Schedule
___________________________
* Filed as an exhibit to the registrant's Registration Statement on
Form S-1, Registration No. 33-82978, effective October 28, 1994,
and incorporated herein by reference.
** Filed as an exhibit to the registrant's Form 10-Q for the quarter
ended March 31, 1995, and incorporated herein by reference.
*** Filed as an exhibit to the registrant's Form 10-Q for the quarter
ended June 30, 1995, and incorporated herein by reference.
**** Filed as an exhibit to the registrant's Form 10-K for the year
ended December 31, 1995, and incorporated herein by reference.
***** Filed as an exhibit to the registrant's Form 10-Q for the quarter
ended March 31, 1996, and incorporated herein by reference.
(b) No reports on Form 8 - K have been filed during the quarter for
which this report is filed.
<PAGE> 13
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
COVENANT TRANSPORT, INC.
Date: July 25, 1995 By:/s/ Bradley A. Moline
Treasurer and Chief Financial Officer
<PAGE> 14
EXHIBIT 11
COVENANT TRANSPORT, INC. AND SUBSIDIARY
SCHEDULE OF COMPUTATION OF NET EARNINGS PER SHARE
(In thousands, except per share amounts)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
1995 1996 1995 1996
-------- -------- -------- --------
Net earnings $ 2,092 $ 2,924 $ 4,188 $ 3,406
======== ======== ======== ========
Weighted average shares:
Common shares outstanding 13,350 13,350 13,350 13,350
Common equivalent shares
issuable upon exercise of
employee stock options (1) - - - -
Total weighted average shares 13,350 13,350 13,350 13,350
======== ======== ======== =======
Primary net earnings per
common and equivalent share $ 0.16 $ 0.22 $ 0.31 $ 0.26
= ==== = ==== = ==== = ====
Notes:
(1) Amount calculated using the treasury stock method and fair market values.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 1456509
<SECURITIES> 0
<RECEIVABLES> 33148032
<ALLOWANCES> 450000
<INVENTORY> 640018
<CURRENT-ASSETS> 40019669
<PP&E> 177506853
<DEPRECIATION> 31716062
<TOTAL-ASSETS> 187000242
<CURRENT-LIABILITIES> 10143982
<BONDS> 90150000
0
0
<COMMON> 133500
<OTHER-SE> 76024760
<TOTAL-LIABILITY-AND-EQUITY> 187000242
<SALES> 0
<TOTAL-REVENUES> 109083358
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 100868809
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2860151
<INCOME-PRETAX> 5354398
<INCOME-TAX> 1948000
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3406398
<EPS-PRIMARY> 0.26
<EPS-DILUTED> 0
</TABLE>
