Covenant Logistics (CVLG) 8-K/A Entry into a Material Definitive Agreement

Exhibit 99.2

STAR TRANSPORTATION,  INC. BALANCE SHEET JUNE 30, 2006 (In thousands, except share data)
	6/30/06 (unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	11,246
Accounts receivable, net of allowance of $115 at June 30, 2006 and $132 at June 30, 2005		9,806
Driver advances and other receivables		107
Inventory and supplies		39
Prepaid expenses		1,334
Deferred income taxes		106
Total current assets	$	22,638
Net property and equipment		51,889
Other assets, net		705
Total assets	$	75,232
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt	$	5,881
Accounts payable		2,401
Accrued expenses		2,695
Insurance and claims accrual		2,499
Total current liabilities		13,476
Long-term debt, less current maturities		33,469
Deferred income taxes		1,061
Total liabilities		48,006
Stockholders' equity:
Common stock, no par value; 10,000 shares authorized, 4,640 shares issued and outstanding		1
Retained earnings		26,842
Accumulated other comprehensive income (loss)		383
Total stockholders' equity		27,226
Total liabilities and stockholders' equity	$	75,232

STAR TRANSPORTATION, INC. STATEMENTS OF OPERATIONS PERIODS ENDED JUNE 30, 2006 AND JUNE 30, 2005 (In thousands)
	6/30/06 (unaudited)			6/30/05 (unaudited)
Revenues
Freight revenue	$	46,139		$	42,345
Fuel surcharges		7,296			4,110
Total revenue		53,435			46,455
Operating expenses:
Salaries, wages, and related expenses		19,812			19,275
Fuel expense & maintenance		18,084			13,575
Revenue equipment rentals and purchased transportation		1,613			2,832
Operating taxes and licenses		1,003			1,091
Insurance and claims		2,361			2,181
Communications and utilities		484			416
General supplies and expenses		1,564			1,238
Depreciation and amortization, including gains (losses) on  disposition of equipment		3,606			2,426
Total operating expenses		48,527			43,034
Operating income		4,908			3,421
Other (income) expenses:
Interest expense		843			454
Interest income		(154	)		(16	)
Other		-			101
Other expenses, net		689			539
Income before income taxes		4,219			2,882
Income tax expense		274			187
Net income	$	3,945		$	2,695

STAR TRANSPORTATION, INC.

NOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 2006 AND 2005

(Unaudited)

Note 1.Basis of Presentation

Star Transportation, Inc. (the "Company") is a truckload carrier based in Nashville, Tennessee serving customers throughout the continental Untied States.

The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, 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 omitted pursuant to such rules and regulations. The December 31, 2005 balance sheet was derived from our audited balance sheet as of that date. These financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included for the year ended December 31, 2005 included in this Form 8-K/A.

Certain prior period financial statement balances have been reclassified to conform to the current period’s classification.

Note 2. Property and Equipment

A summary of property and equipment, net as of June 30, 2006 is as follows:

(in thousands)
Land	$	1,094
Buildings and improvements		3,986
Revenue equipment		68,312
Computer equipment		1,807
Furniture and fixtures		380
Automobiles		375
		75,954
Accumulated depreciation		(24,065	)
	$	51,889

In the normal course of business, management expects to purchase or lease significant amounts of new equipment each year.

Note 3. Long-Term Debt

Our long-term debt consisted of the following at June 30, 2006:

(in thousands)
Installment notes payable with banks, weighted average interest rate of 6.02% at June 30, 2006, due in monthly installments with final maturities at various dates through September 2010, secured by related revenue equipment	$	39,350
		39,350
Less current maturities		(5,881	)
Long-term debt, less current maturities	$	33,469

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