Exhibit 99.1
COVENANT TRANSPORT, INC. ANNOUNCES
FILING OF REGISTRATION STATEMENT
CHATTANOOGA, TENNESSEE - October 28, 2003 - Covenant Transport, Inc.
(Nasdaq/NMS:CVTI) announced today that it filed a registration statement on Form
S-3 with the Securities and Exchange Commission.
The registration statement covers the offer of up to 2,300,000 shares of the
Company's Class A common stock, including 300,000 shares subject to an
over-allotment option in favor of the underwriters. Of the shares covered by the
filing, it is anticipated that 1,000,000 shares will be offered by David R. and
Jacqueline F. Parker and 1,000,000 shares will be offered by the Estate of Clyde
M. Fuller. It also is anticipated that the shares subject to the over-allotment
option, if exercised by the underwriters, will be sold by Mr. and Mrs. Parker.
Mr. and Mrs. Parker are the principal stockholders of the Company, and Mr.
Parker is the Chairman, President, and Chief Executive Officer. Mr. Fuller, who
passed away in December following a long and distinguished career in the
transportation industry, was Mr. Parker's stepfather and a significant
stockholder of the Company. The selling stockholders will receive all of the net
proceeds from the offering.
A registration statement relating to the securities has been filed with the
Securities and Exchange Commission, but has not yet become effective. The
securities may not be sold nor may offers to buy be accepted prior to the time
the registration statement becomes effective. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of the securities in any jurisdiction in which such offer,
solicitation, or sale would be unlawful prior to registration or qualification
under the securities laws of such jurisdiction. When available, copies of the
preliminary prospectus relating to the offering may be obtained from the offices
of Bear, Stearns & Co. Inc., 383 Madison Avenue, New York, New York 10179.
Covenant Transport, Inc. is a public truckload carrier that offers just-in-time
service and other premium transportation services for customers throughout the
United States. Covenant operates one of the ten largest fleets in North America
and is committed to growing revenue and earnings per share both internally and
through acquisitions. The Company's common stock is traded on the Nasdaq
National Market under symbol "CVTI."
This press release contains forward-looking statements that involve risk,
assumptions, and uncertainties that are difficult to predict. Statements that
constitute forward-looking statements are usually identified by words such as
"anticipates," "believes," "estimates," "projects," "expects," "plans,"
"intends," or similar expressions. These statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such statements are based upon the current beliefs and expectations of our
management and are subject to significant risks and uncertainties. Actual
results may differ from those set forth in the forward-looking statements. The
following factors, among others, could cause actual results to differ materially
from those in forward-looking statements: excess tractor or trailer capacity in
the trucking industry; decreased demand for our services or loss of one or more
of our major customers; surplus inventories; recessionary economic cycles and
downturns in customers' business cycles; strikes, work slow downs, or work
stoppages at Company facilities, or at customer, port,
or other shipping related facilities; increases or rapid fluctuations in fuel
prices as well as fluctuations in hedging activities and surcharge collection,
the volume and terms of diesel purchase commitments, interest rates, fuel taxes,
tolls, and license and registration fees; increases in the prices paid for new
revenue equipment; the resale value of our used equipment and the price of new
equipment; increases in compensation for and difficulty in attracting and
retaining qualified drivers and independent contractors; elevated experience in
the frequency and severity of matters relating to accident, cargo, workers'
compensation, health, and other claims; high insurance premiums and deductible
amounts; seasonal factors such as harsh weather conditions that increase
operating costs; competition from trucking, rail, and intermodal competitors;
regulatory requirements that increase costs or decrease efficiency, including
revised hours-of-service requirements for drivers; the ability to successfully
execute the Company's initiative of improving the profitability of medium length
of haul, or "in-between," movements; and the ability to identify acceptable
acquisition candidates, consummate acquisitions, and integrate acquired
operations. Readers should review and consider these factors along with the
various disclosures by the Company in its press releases, stockholder reports,
and filings with the Securities and Exchange Commission.
For further information contact:
Joey B. Hogan, Executive VP and Chief Financial Officer (423) 825-3336
hogjoe@covenanttransport.com
For copies of Company information contact:
Kim Perry (423) 825-3357
perkim@covenanttransport.com