2013 BB&T Transportation Conference February 2013. DISCLOSURE STATEMENT.
This presentation and discussion includes forward-looking statements within the meaning of the Private Securities Litigation reform Act of 1995. Words such as “expects,” “anticipates,” “intends,” “estimates,” or similar expressions are intended to identify these forward-looking statements. These statements are based on Covenant Transportation Group’s current plans and are not guarantees of future performance. These forward-looking statements are subject to risks and uncertainties that could cause actual results and the company’s plans and objectives to differ materially from those expressed in the forward-looking statements. Such risks and uncertainties are discussed further in Covenant Transportation Group’s reports and filings with the Securities and Exchange Commission.
David R. Parker – Chairman & CEO
Richard B. Cribbs – SVP & CFO
CTG is a holding company:
For more information, please visit: www.ctgcompanies.com
% of Total Revenue
At 2/10/13, Market Value trading at only ≈0.9 of Tangible Book Value vs. ≈ 1.3 – 1.4 industry average (A)
(A) Includes WERN, CGI, KNX, MRTN, PTSI, USAK, and CVTI
Capacity conclusions – Outlook for 2013
Assets = $400 million
Liabilities =$305 million
Equity = $ 95 million
Available Borrowing Capacity
≈$52.7 million on ABL revolver @12/31/12
Effective 12/31/12, amended Revolving Credit Facility to extend maturity date 3 years to September 2017, provide increased availability of $15 million, added springing provision to Fixed Charge Coverage Ratio covenant making it inoperative for the foreseeable future and eliminate the Leverage Ratio covenant, improve pricing grid by ≈ 75 bps on letters of credit and any outstanding loan balance.
CTG paid off $55 million of lease-adjusted debt during the 2012 fiscal year to reduce our overall indebtedness to $242 million from $297 million at the end of fiscal 2011.
2013 Revenue Trends (Year-over-year)
Disclaimer> In general, our miles per truck, rate per mile, and operating ratio are affected by industry-wide freight volumes, industry-wide trucking capacity, and the competitive environment, which factors are beyond our control. Estimates are not reflective of the current beliefs or expectations of our management as to future results and are inherently subject to risks and uncertainties. Please see the "DISCLOSURE STATEMENT” attached hereto and refer to the various disclosures by the Company in its press releases, stockholder reports, and filings with the Securities and Exchange Commission.