Covenant Transportation Group, Inc. provides expedited long haul freight transportation, primarily using two-person driver teams in transcontinental lanes. The company transports full trailer loads of freight from origin to destination without intermediate stops or handling. It provides truckload transportation services throughout the continental United States, into and out of Mexico, and into and out of portions of Canada. The company’s truckload freight services utilize equipment the company owns or leases, or equipment owned by independent contractors for the pick-up and delivery of freight. In most of its truckload business, the company transports freight over non routine routes. The company’s dedicated freight service offering provides similar transportation services. To complement its truckload operations, the company provides freight brokerage services and accounts receivable factoring services. Through its asset based and non-asset based capabilities, the company transports various types of freight for a diverse customer base. Asset-Based Truckload Services (Truckload) The Truckload segment consists of three asset-based operating fleets that are aggregated because they have similar economic characteristics and meet the aggregation criteria. The three operating fleets that comprise its Truckload segment are as follows: Covenant Transport, Inc. (Covenant Transport), its historical flagship operation, which provides expedited long haul, dedicated, temperature-controlled, and regional solo-driver service; Southern Refrigerated Transport, Inc. (SRT), which provides primarily long haul and regional temperature-controlled service; and Star Transportation, Inc. (Star), which provides regional solo-driver and dedicated services, primarily in the southeastern the United States. The Covenant Transport Solutions, Inc. (Solutions) subsidiary has service offerings ancillary to its Truckload operations, including freight brokerage service through freight brokerage agents, who are paid a commission for the freight they provide, and accounts receivable factoring. Customers The company is a major carrier for transportation companies such as freight forwarders, less-than-truckload carriers, and third-party logistics providers that require a level of service to support their businesses, as well as for traditional truckload customers such as manufacturers, retailers, and food and beverage shippers. UPS, the company’s major largest customer, was serviced by both its Truckload segment and its Solutions subsidiary. Revenue Equipment As of December 31, 2014, the company operated 2,665 tractors and 6,722 trailers. Of these tractors, 2,320 were owned, 150 were financed under operating leases, and 195 were provided by independent contractors, who own and drive their own tractors. Regulations The company’s drivers and independent contractors must comply with the safety and fitness regulations of the U.S. Department of Transportation, including those relating to drug and alcohol testing and hours-of-service. Other agencies, such as the Environmental Protection Agency (EPA) and the Department of Homeland Security (DHS) also regulate its equipment, operations, and drivers. Seasonality The company’s first quarter results historically have been lower than results in each of the other three quarters of the year, excluding charges. History Covenant Transportation Group, Inc. was founded in 1994. The company was incorporated in the state of Nevada in 1994.
covenant transport grp-cl a
400 Birmingham Highway
Chattanooga, TN 37419
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