CHATTANOOGA, Tenn., May 24, 2022 (GLOBE NEWSWIRE) — Covenant Logistics Group, Inc. (NASDAQ/GS: CVLG) (“Covenant” or the “Company”) today announced the adoption of a Rule 10b5- 1 of $75 million buyout plan.
Any redemptions under the Plan will be made in accordance with defined trading parameters executed by the Plan Administrator in accordance with the Plan and Rule 10b-18. The plan will begin in May 2022 and expire in June 2023.
The Rule 10b5-1 repurchase plan does not require the Company to repurchase a specific number of shares and the Company may suspend or terminate the plan at any time without notice.
About the Alliance
Covenant Logistics Group, Inc., through its subsidiaries, provides a portfolio of transportation and logistics services to customers throughout the United States. Core services include expedited and dedicated asset-based truckload capacity, as well as light warehousing, transportation management and freight brokerage capabilities. In addition, Transport Enterprise Leasing is an affiliate company that provides fee-based equipment sales and leasing services to the trucking industry. Covenant’s Class A common stock trades on the NASDAQ Global Select market under the symbol “CVLG”.
This press release contains certain statements that may be considered forward-looking.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, and such statements are subject to the safe harbor created by these sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements can be identified by their use of words or phrases such as “expects”, “estimates”, “projects”, “believes”, “anticipates”, “plans”, “could”, “could “, “could”, “will”, “intend”, “outlook”, “focus”, “seek”, “potential”, “mission”, “continue”, “goal”, “target”, “goal”, derivatives thereof and similar terms and phrases. Forward-looking statements are based on 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 expressed, contemplated or underlying the forward-looking statements. In this press release, statements regarding future redemptions under the Rule 10b5-1 Buyback Plan, if any, are forward-looking statements. The following factors, among others, could cause actual results to differ materially of those contained in forward-looking statements: Our business is subject to economic, credit, business and regulatory factors affecting the truckload industry that are largely beyond our control including cost inflation and global supply chain disruptions that could affect (i) volume, pricing and predictability of customer demand, (ii) availability, pricing and delivery timing equipment and parts, (iii) the availability and compensation of employees and third-party capacity providers, and (iv) other aspects of our business; We may not succeed in achieving our strategic plan; We operate in a highly competitive and fragmented industry; We may not experience substantial growth in the future and may fail to improve our profitability; We may not make acquisitions in the future, or if we do, we may not be successful in our acquisition strategy; Increases in driver compensation or difficulties in attracting and retaining qualified drivers could have a material adverse effect on our profitability and our ability to maintain or grow our fleet; Our engagement as independent contractors to supply part of our capacity exposes us to different risks than we face with our tractors driven by company drivers; We derive a significant portion of our revenue from our major customers; Fluctuations in fuel price or availability, volume and terms of diesel fuel purchase commitments, surcharge collection and hedging activities may increase our operating costs; We depend on third-party service providers, particularly in our Managed Freight segment; We are dependent on the proper functioning and availability of our management information and communication systems and other IT assets (including the data they contain) and on system failure or unavailability, including including those caused by cybersecurity breaches, or an inability to effectively upgrade these systems and assets could significantly disrupt our business; If we are unable to retain our key employees, our business, financial condition and results of operations could be adversely affected; Seasonality and the impact of weather and other catastrophic events affect our operations and profitability; We self-insure a significant portion of our claims exposure, which could significantly increase volatility and decrease the amount of our earnings; Our self-insurance for motor vehicle liability claims and our use of captive insurance companies could negatively impact our operations; We have experienced, and may experience further erosion of the limits available in our global insurance policies; We may incur additional expenses to reinstate insurance policies due to liability claims; We operate in a highly regulated industry; If our independent contractor drivers are deemed by regulatory authorities or legal process to be employees, our business, financial condition and results of operations could be adversely affected; Developments in labor and employment laws and any effort to unionize employees could have a material adverse effect on our results of operations; The compliance and safety responsibility program adopted by the Federal Motor Carrier Safety Administration could adversely affect our profitability and our operations, our ability to maintain or expand our fleet and our relationships with our customers; An adverse change in the Department of Transportation safety rating of any of our motor carriers could have a material adverse effect on our operations and profitability; Compliance with various environmental laws and regulations; Changes in trade regulations, quotas, duties or tariffs; Litigation may adversely affect our business, financial condition and results of operations; The increasing focus on environmental, social and governance issues may negatively impact our business, impose additional costs on us and expose us to additional risks; Our ABL Credit Facility and other financing agreements contain certain covenants, restrictions and requirements, and we may be unable to comply with such covenants, restrictions and requirements; In the future, we may need to obtain additional financing which may not be available or, if available, may result in a reduction in the ownership percentage of our shareholders; Our indebtedness and our finance and operating lease obligations could adversely affect our ability to respond to changes in our industry or business; Our profitability may be significantly affected if our capital investments do not match customer demand or if there is a decline in the availability of funding sources for such investments; Rising prices for new coin-operated equipment, design changes for new engines, future uses of autonomous tractors, market volatility for used equipment, decreasing availability of new coin-operated equipment, and the inability of manufacturers to meet their sale or take-back obligations to us could have a material adverse effect on our business, financial condition, results of operations and profitability; Our 49%-owned subsidiary, Transport Enterprise Leasing, faces certain additional risks unique to its operations, any of which could adversely affect our results of operations; We may incur additional costs associated with disposing of substantially all of the operations and assets of TFS; We may determine that our goodwill and other intangible assets are impaired, thereby recording a related loss; Our Chairman and Chief Executive Officer and his wife control a large portion of our shares and exercise substantial control over us, which may limit the ability of other shareholders to influence the outcome of key transactions, including control changes; Provisions of our governing documents or Nevada law may prevent a takeover, which could limit the price investors might be willing to pay for our Class A common stock; The market price of our Class A common stock can be volatile; We cannot guarantee the timing or amount of redemptions of our Class A common stock or dividends on our Class A and Class B common stock, if any; If we fail to maintain effective internal control over financial reporting in the future, there may be a high possibility of material misstatement, and such misstatement could cause investors to lose confidence in our financial statements, which which could have a material adverse effect on our share price; and We may be adversely affected by the outbreak of COVID-19 or other similar outbreaks. Readers should review and consider these factors as well as the various information provided by the Company in its press releases, reports to shareholders and filings with the Securities and Exchange Commission. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in factors affecting the forward-looking information.
For more information, contact:
Joey B. Hogan, President
Tripp Grant, Executive Vice President and Chief Financial Officer
For copies of company information, contact:
Brooke McKenzie, Executive Administrative Assistant