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CORRECTING and REPLACING Celadon Group Reports September Quarter Results and Declares Dividend



  CORRECTING and REPLACING Celadon Group Reports September Quarter Results and
  Declares Dividend

CORRECTION...by Celadon Group Inc.

Business Wire

INDIANAPOLIS -- October 28, 2013

Seventh graph, second sentence of release should read: The quarterly cash
dividend of two cents ($0.02) per share of common stock will be payable on
January 17, 2014 to shareholders of record at the close of business on January
6, 2014. (sted The quarterly cash dividend of two cents ($0.02) per share of
common stock will be payable on January 17, 2013 to shareholders of record at
the close of business on January 6, 2013)

The corrected release reads:

    CELADON GROUP REPORTS SEPTEMBER QUARTER RESULTS AND DECLARES DIVIDEND

Celadon Group Inc. (NYSE: CGI) today reported its financial and operating
results for the three months ended September 30, 2013, the first fiscal
quarter of the Company’s fiscal year ending June 30, 2014.

Revenue for the quarter increased 14.2% to $175.1 million in the 2014 quarter
from $153.3 million in the 2013 quarter. Freight revenue, which excludes fuel
surcharges, increased 16.3% to $142.0 million in the 2014 quarter from $122.1
million in the 2013 quarter. Net income decreased 20.5% to $6.6 million in the
2014 quarter from $8.3 million for the same quarter last year. Earnings per
diluted share decreased 22.2% to $0.28 in the 2014 quarter from $0.36 for the
same quarter last year.

Paul Will, President and Chief Executive Officer, made the following comments:
“We are pleased with our overall improvement in our operating statistics. The
increase in average seated tractor count of 288, or 10.5%, to 3,024 in the
September 2013 quarter compared with 2,736 in the September 2013 quarter was a
significant operating metric improvement that resulted in increased revenue
for the quarter. This increase was a result of expanding our recruiting
efforts at terminal locations, having established a driving school and
training program at our Indianapolis headquarters as well as the acquisition
of select assets and liabilities of Houg Special Services, Inc. based in
Commerce City, Colorado, Land Span, Inc. based in Lakeland, Florida, TCI
Logistics, Inc. based in Kernersville, North Carolina and Hoss Cartage and
Distribution, Inc. based in Ayr, Ontario, which were all completed in the back
half of the September 2013 quarter. The business generated from these
acquisitions should help us continue to add truck capacity and density in our
current operating lanes, while benefiting from future operating synergies over
time. This strategy should position Celadon to better serve our customers now
and especially in the near future as we believe truck capacity will continue
to tighten for the truckload industry. Our average revenue per tractor per
week increased $14, or 0.5%, to $2,913 in the September 2013 quarter, from
$2,899 in the September 2012 quarter. In addition, our average revenue per
loaded mile increased to $1.597 per mile in the September 2013 quarter from
$1.562 in the September 2012 quarter.

“The average age of the Company’s tractor fleet was 1.4 years as of September
2013 and the average age of the trailer fleet was 2.4 years as of September
2013. Gains on sales of assets were $1.2 million in the September 2013 quarter
compared with $1.9 million in the September 2012 quarter. The Company has
completed its current tractor and trailer refresh cycle.

“We believe we have put in place a lean cost structure, upgraded and expanded
the fleet to one of the newest in the industry, broadened service offerings to
customers, and positioned the Company to allow it to expand margins and
profitability.

“Our balance sheet remains solid and we retain significant liquidity to
support the growth of our business. At September 30, 2013, we had
$234.3 million of stockholders' equity and our earnings before interest,
taxes, depreciation and amortization was $26.7 million in the current
September 2013 quarter. Our increased cash flow generated from operations will
allow us to effectively continue to execute on our growth strategy.”

On October 24, 2013, the Board of Directors approved a regular cash dividend
to shareholders for the quarter ending December 31, 2013. The quarterly cash
dividend of two cents ($0.02) per share of common stock will be payable on
January 17, 2014 to shareholders of record at the close of business on January
6, 2014.

                         Conference Call Information

An investor conference call is scheduled for Tuesday, October, 29, at 11:00
a.m. ET. Management will discuss the results of the quarter. To listen and
participate in a questions-and-answers exchange, simply dial  888-517-2470 (or
630-827-6818) pin number 7416832 a few minutes prior to the start time. A
replay will be available through November 29 at
http://investors.celadontrucking.com.

Celadon Group Inc. (www.celadongroup.com), through its subsidiaries, primarily
provides long-haul, full-truckload freight service across the United States,
Canada and Mexico. The company also owns Celadon Logistics Services, which
provides freight brokerage; Celadon Dedicated Services, which provides supply
chain management solutions, such as warehousing and dedicated fleet services.

This press release 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. Such statements may be identified by their use of terms or
phrases such as "expects," "estimates," "projects," "believes," "anticipates,"
"plans," "intends," and similar terms and phrases. Forward-looking statements
are based upon the current beliefs and expectations of our management and are
inherently subject to risks and uncertainties, some of which cannot be
predicted or quantified, which could cause future events and actual results to
differ materially from those set forth in, contemplated by, or underlying the
forward-looking statements. Actual results may differ from those set forth in
the forward-looking statements. The following factors, among others, could
cause actual results to differ materially from those in forward-looking
statements: the risk that our perception of additional capacity due to seating
trucks and perceived benefits thereof are inaccurate; the risk that our
perception of changes in our customer base and perceived benefits thereto are
inaccurate; the risk that managing our tractor fleet age does not result in
greater flexibility and lower operating expenses; excess tractor and trailer
capacity in the trucking industry; decreased demand for our services or loss
of one or more of our major customers; surplus inventories; recessionary
economic cycles and downturns in customers' business cycles; strikes, work
slow downs, or work stoppages at our facilities, or at customer, port, border
crossing, or other shipping related facilities; increases in compensation for
and difficulty in attracting and retaining qualified drivers and independent
contractors; increases in insurance premiums and deductible amounts; elevated
experience in the frequency or severity of claims relating to accident, cargo,
workers' compensation, health, and other matters; fluctuations in claims
expenses that result from high self-insured retention amounts and differences
between estimates used in establishing and adjusting claims reserves and
actual results over time; increases or rapid fluctuations in fuel prices, as
well as fluctuations in hedging activities and surcharge collection, the
volume and terms of diesel purchase commitment, interest rates, fuel taxes,
tolls, and license and registration fees; fluctuations in foreign currency
exchange rates; increases in the prices paid for new revenue equipment and
changes in the resale value of our used equipment; increases in interest rates
or decreased availability of capital or other sources of financing for revenue
equipment; seasonal factors such as harsh weather conditions that increase
operating costs; competition from trucking, rail, and intermodal competitors;
regulatory requirements that increase costs or decrease efficiency, including
revised hours-of-service requirements for drivers and new emissions control
regulations; our ability to identify acceptable acquisition candidates,
consummate acquisitions, and integrate acquired operations; the timing of, and
any rules relating to, the opening of the border to Mexican drivers;
challenges associated with doing business internationally; our ability to
retain key employees; and the effects of actual or threatened military action
or terrorist attacks or responses, including security measures that may impede
shipping efficiency, especially at border crossings.

Readers should review and consider these factors along with the various
disclosures by the company in its press releases, stockholder reports, and
filings with the Securities Exchange Commission. We disclaim any obligation to
update or revise any forward-looking statements to reflect actual results or
changes in the factors affecting the forward-looking information.

CELADON GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars and shares in thousands except per share amounts)
(Unaudited)
                                             
                                              For the three months ended
                                              Sept 30,
                                              2013             2012
                                                                
REVENUE:
Revenue, before fuel surcharge                $  141,956       $ 122,108
Fuel surcharge revenue                           33,146          31,189
Total revenue                                    175,102         153,297
                                                                
OPERATING EXPENSES:
Salaries, wages, and employee benefits           46,654          40,401
Fuel                                             36,843          37,452
Purchased transportation                         41,744          28,337
Revenue equipment rentals                        1,652           1,998
Operations and maintenance                       11,274          8,066
Insurance and claims                             4,140           3,501
Depreciation and amortization                    14,928          12,675
Communications and utilities                     1,364           1,292
Operating taxes and licenses                     2,832           2,588
General and other operating                      2,139           1,848
Total operating expenses                         163,570         138,158
                                                                
Operating income                                 11,532          15,139
                                                                
Interest expense                                 1,224           1,490
Interest income                                  0               0
Other (income) expense, net                      (241     )      38
Income before income taxes                       10,549          13,611
Income tax expense                               3,983           5,349
Net income                                    $  6,566         $ 8,262
                                                                
Income per common share:
Diluted                                       $  0.28          $ 0.36
Basic                                         $  0.29          $ 0.37
                                                                
Diluted weighted average shares outstanding      23,662          23,185
Basic weighted average shares outstanding        22,930          22,383
                                                                  

CELADON GROUP, INC
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2013 and June 30, 2013
(Dollars and shares in thousands except par value amounts)
                                                                  
                                                   (unaudited)
                                                   September 30,   June 30,
ASSETS                                             2013            2013
                                                                    
Current assets:
Cash and cash equivalents                          $  3,610        $ 1,315
Trade receivables, net of allowance for doubtful
accounts of $869 and $919 at September 30, 2013       81,518         77,623
and June 30, 2013, respectively
Prepaid expenses and other current assets             33,058         13,434
Tires in service                                      1,015          1,245
Equipment held for resale                             7,746          9,923
Income Tax Receivable                                 3,056          9,506
Deferred income taxes                                 4,236          4,342    
Total current assets                                  134,239        117,388
Property and equipment                                621,155        612,236
Less accumulated depreciation and amortization        119,542        115,366  
Net property and equipment                            501,613        496,870
Tires in service                                      1,527          1,785
Goodwill                                              20,415         17,730
Investment in unconsolidated companies                4,346          4,604
Other assets                                          3,201          2,785    
Total assets                                       $  665,341      $ 641,162  
                                                                    
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                                   $  5,785        $ 10,401
Accrued salaries and benefits                         10,416         11,197
Accrued insurance and claims                          10,262         10,092
Accrued fuel expense                                  8,414          7,461
Other accrued expenses                                21,988         20,070
Current maturities of capital lease obligations       30,631         25,669
Income taxes payable                                  ---            ---      
Total current liabilities                             87,496         84,890
Capital lease obligations, net of current             179,186        190,625
maturities
Long term debt, net of current maturities             104,591        78,137
Deferred income taxes                                 59,808         61,821
Stockholders' equity:
Common stock, $0.033 par value, authorized
40,000 shares; issued and outstanding 23,882 and      788            788
23,887 shares at September 30, 2013 and June 30,
2013, respectively
Treasury stock at cost; 595 and 696 shares at
September 30, 2013 and June 30, 2012,                 (4,104   )     (4,811  )
respectively
Additional paid-in capital                            104,890        103,749
Retained earnings                                     137,333        131,224
Accumulated other comprehensive loss                  (4,647   )     (5,261  )
Total stockholders' equity                            234,260        225,689  
Total liabilities and stockholders' equity         $  665,341        641,162  
                                                                              

Key Operating Statistics
                                        
                                            For the three months ended
                                            September 30,
                                            2013                  2012
                                                                       

Average revenue per loaded mile (*)         $     1.597           $   1.562
Average revenue per total mile (*)          $     1.406           $   1.402
Average revenue per tractor per week        $     2,913           $   2,899
(*)
Average miles per seated tractor per              2,072               2,068
week(**)
Average seated line-haul tractors (**)            3,024               2,736
*Freight revenue excluding fuel
surcharge.
**Total seated fleet, including equipment operated by independent contractors
and our Mexican subsidiary, Jaguar.
                                                                   
Adjusted Trucking Revenue(^)                $     147,658         $   134,302
Asset Light Revenue                               13,218              10,862
Intermodal Revenue                                7,524               5,168
Other Revenue                                     6,702               2,964
Total Revenue                               $     175,102         $   153,297
                                                                   
^Trucking Revenue for US, Canada,
Mexico.  Includes Fuel Surcharge.

Contact:

Celadon Group Inc.
Jeryl Desjarlais, Communications Manager, 800-CELADON Ext. 7070
317-972-7070 Direct
jdesjarlais@celadongroup.com
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