![](https://capedge.com/proxy/8-K/0001008886-07-000116/ex991.jpg)
AG Edwards
Growth Conference
September 2007
![](https://capedge.com/proxy/8-K/0001008886-07-000116/ex992.jpg)
Corporate Summary
•Founded in 1985 with 25 tractors and 50 trailers
•Group of transportation providers providing premium
transportation services
•Group operates about 3,675 tractors and 9,000 trailers
•8 full service terminals, 29 drop yards
![](https://capedge.com/proxy/8-K/0001008886-07-000116/ex993.jpg)
Investment Summary
•Consumed with providing exceptional service to our
customers
•Constraining size of tractor fleet to maximize profitability
•Plan to resume fleet growth after return to low-90’s
operating ratio
•Significant operating leverage
![](https://capedge.com/proxy/8-K/0001008886-07-000116/ex994.jpg)
(1) Excludes $15.4 million asset impairment charge in 2001, $3.3 million asset impairment charge and a $1.4 million loss on early
extinguishment of debt in 2002, and a $19.5 million insurance charge and a $.4 million IRS interest charge in 2004.
(1)
(1)
(1)
(e)
$-
$100
$200
$300
$400
$500
$600
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
$(1)
$4
$9
$14
$19
$24
$29
$34
$39
Revenue
Net Income
Inconsistent Profits Continue to Drive Change
![](https://capedge.com/proxy/8-K/0001008886-07-000116/ex995.jpg)
Expedited
Regional
Brokerage
2006
2007
34%36%
9%-%
4%14%
1%3%
Dedicated
17%15%
OTR/Regional
19%12%
Temperature Control
Temperature Control
16%20%
79%
63%
Trucks
1,060
675
570
0
2,305
760
610
0
3,675
Covenant Transportation Group
![](https://capedge.com/proxy/8-K/0001008886-07-000116/ex996.jpg)
26%
15%
20%
36%
Expedited
Regional
Temperature Control
Dedicated
Brokerage
3%
% of Total Revenue
Covenant Transportation Group
Targeted Premium Markets
![](https://capedge.com/proxy/8-K/0001008886-07-000116/ex997.jpg)
•Negatives
●Rate increases are difficult to attain
●Utilization and deadhead improvements are slow
●Fuel surcharge recovery continues to lag versus a year ago
2007 Update
•Positives
●Revenue per truck for the Covenant division continues to improve
●Non driver headcount continues to decline
●Cost reduction initiatives are building momentum
●Solutions subsidiary growing profitably
●Trucks are fully manned for the Covenant and Star subsidiaries
●Assets held for sale continue to decline
●Completed credit facility amendment with minimal annual cost impact
![](https://capedge.com/proxy/8-K/0001008886-07-000116/ex998.jpg)
The Future
●Continue to Develop Our Biggest Asset: People
●Training
●Improved Communication
●Find & Develop Next Generation of Leaders
●Restore Consistent Profitability
●Improve Revenue Per Truck
●Selective Rate Increases
●Add Diversity to Present Customer Portfolio
●Fill in Lane Gaps to Improve Density
●Maximize assets that are producing acceptable margins
●Lower Costs!
![](https://capedge.com/proxy/8-K/0001008886-07-000116/ex999.jpg)
AG Edwards
Growth Conference
September 2007