CVLG - Earnings call transcript Q1 2022 | Covenant Logistics Group, Inc.

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Operator

Welcome to today's Covenant Logistics Group Q1 2022 Earnings Release and Investor Conference Call.

Our host for today's call is Joey Hogan. At this time, all participants will be in a listen-only mode. Later we will conduct a question-and-answer session. I would now like to turn the call over to your host, Mr. begin. may you Hogan,

Joey Hogan

Welcome call. the Ross. first Logistics quarter conference everybody you, Covenant's to Group Thank

reminder, conference Litigation a meeting XXXX. As this of within forward-looking the the statements, Private Securities Reform of call Act will contain

yet statements publicly the actual to the SEC, limitation, cause forward-looking I'm is including, on Forward-looking Paul covenantlogistics.com that with for undertake update financial Please review contemplated by history. and is website quarter Officer and factors results, additional XX-K revise from Bunn, Parker very we're David our our recent no results Form proud represent information obligation quarterly via subject summary, and Chief to recent comments and available We without and to differ to Tripp Accounting available uncertainties our of Officer; are the this our Chief our statements or company first joined Grant, could most our those forward-looking In Operating prepared and quarter statements. events our in circumstances. or morning copy materially phone. investor our Form by another risk any disclosures section. and risk earnings current subsequent with pleased XX-Qs. at the which in reflect any the The record

we price the to and not with shares sequentially the our accretion combined The units accomplished program, time versus been our we are of full of greater OR to full-year per in quarter. business All the exceed acquisition it's at of will a the confident the a business quarter than model, XXXX's our February, to strong year from for achievement highlights transforming our to our have that share were in under of quarter contribution first hard quarter. the adjusted this earnings year to the fourth compared were; our less could something addition, XXXX, unexpected. per is of it's first continue. team per we units. earnings revenue cyclical and With In earnings fourth our start repurchase history work purchase quarter. XXX% expected without year increased share to quarter quarter. key XXX,XXX where produced business XX% $XX.XX each The absent is ago This $XXX truly from small group the for million share the improved $X.XX the XXXX Adjusted to the exciting an average earnings share freight made

the XXX quarter Our fewer asset-based with versus first truckload of XX% XXXX freight trucks. group revenue

freight or less asset-light grew of of Our XXXX. quarter compared divisions the managed asset-intensive XX% and to warehouse combined first

accident year chargeable than On safety DOT ago. and on record rate side, the XX% the lowest our lower was

slightly per period. Our acquisition XX% ratio less repurchases. times, and cash debt on our the quarter of the an net quarter, share $X.XX after a leverage We invested million ago TEL our XX%. leasing to borrowings and combined facility only investment a with finished of than per additional and $XX small equity $X.XX versus million record the year our the or indebtedness cash utilizing on strong Due $XX return share the contributing company capital quarter a produced of share flow in ratio credit under increased X.X a

business. color Paul the Now, the affecting a will little provide items on

Paul Bunn

Joey. you, Thank

of but decline. expanded, our and XX% revenue adjusted the volume covering again our of operating quarter, overall comprised profit. margin throughout group, consolidated overflow which and volume were For sheer and largest operating freight revenue our freight both profit. freight of in much the managed business, of This our of XX% terms once dropped freight asset-light warehouse, The adjusted group total of are quarter, and project our special comprised the revenue

startups several a technology enhancements. doing team's group and focusing with remainder of acquisition for remains talent planned our nice building pipeline growth, priority year. warehouse on top Our for the great the This job a

excited quarter, multiple versus XX% than to from in continue sustainable Revenue with truck fee the plan continues which interest XXX year gains. accounts of XXX continues for in basis is quarter is with ratio, in its the we've had and of the operating Even or revenue sequential quarter. our completed investment Also TEL. this record freight fourth to adjusted quarter. profit tractors Expedited count year that five will within a consolidated of totaling adjusted TEL continued We performance our adjusted our XX in the from The year adjusted per expectation very quarter, the improvements first new sequential points briefly growth or in the since revenue for dedicated This quarter. strong its startups our growing that trucks. has and first, business and operating quarter. in produced been in average and Expedited the weighted from margin of ago due OR Leasing produced XXXX. quarter. pipeline big The improvement The an We division from watch slowing grew of discussing are a XX% good the acquisition. quarter robust, our but group. of feel continue. an points with team environment around with plan shape we'll the supporting the division basis to improving acquisition ago the sequential quarter about key fourth better in Enterprise XX% quarter present, prospects steady XX% our of for each XX XX% startups operating a at small is six It our XXXX, our XX quarter, to the the X% the basis in improvement we remainder rate The and in XX division of it fourth quarter seven the profit is and second planned Transport XX% freight begin revenue was the contributed trucks to closely. a contribution XXX the of our company. leading was first points increases a After for second the consolidated environment, driver pay continue

TEL over with that X,XXX grown in X,XXX has portfolio. and tractors During trailers its time,

other cumulative in of TEL's investment balance and our to our included consolidated have XX investment we Our has million assets in cash the X.X sheet in grown recognized. million from including initial earnings

a managing of a per trailers $X.XX aiding lease overall program. selling the equipment programs TEL through smaller procurement equipment and its As clients, buying trucks and and a or and leasing purchase costs the reminder, robust results focuses the of $X.XX quarter. self-equipment XX% and fluctuate share and to can additional to cause from on an model business fleets and shippers their is losses disposition increased year quarter-to-quarter. on margin normal for total TEL or Due earnings contributed in to grew the and TEL's quarter share XX%. a part TEL's gains business operating versus and ago revenue of in pre-tax

the very outlook. team, are is its for and future. happy our We future now Covenant's Joey, us TEL contribution leadership its through an with walk will to TEL value our shareholder. untapped

Joey Hogan

focused volumes Thus, expect while a expectation we in the core environment year. a us have couple quarters, deliver consistent with to release, freight for of XXXX. record capital As of in a the demand and our expenditures the to least of system. freight a the investments. tell some for expect the second share of the adjusted flow, more will into quarter second Even good, on consideration to per earnings This retain strategic full-year we balanced froth of we given expectation the in takes the has good long-term we of said half the generate absent it's volumes freight remainder us spot and customers where remain positive market which and investor to our of a receives increased rates the to major environment shock out our And more volatile year at may to contract market of the the resolved for cash think expect differentiate and we point, this in solid important most from and come and moderating our rates remainder and On of which analyst's lot next the attention. stay year. comes between

breakout that will to compared produce opportunities flows stand we'll that. provide cash our our that than be you, made that we with ahead, firm to past also continue questions. maximize time few troughs. earnings meantime clarity proving a Covenant, for Ross. further is provide for call We believe cash results now the our cycle years in more will We and we've in shareholders. and up durable will changes And Looking we past. and open last the believe more In Thank our the year for model the the the to performance XXXX business will consistent over model

Operator

Group Scott from comes question Please first ahead, Wolfe Our Scott. go Instructions] [Operator from Research.

Scott Group

Good morning guys. Thanks. Hey.

Joey Hogan

Scott. morning, Good

Scott Group

first We follow-up any Joey on see to nice improvement typically a earnings to there. just pretty wanted from how second sequential thoughts quarter XQ? on think about to quarter, outlook your in

Joey Hogan

think I what going history quarter say I doesn't that says second feel first good intentional. a quarter. have to exceeds said that We quarter agree, we Scott, exceeds History we're was second quarter. quarter. really first the the fourth

about That's think I'll probably that second the now. say I we good what that So about Scott quarter. feel right

Scott Group

from segments first potential Maybe best Okay. quarter where you you quarter sequential like from talk and then and earnings individual where risk improvement potential the about the for see levels. see

Paul Bunn

walk you through Paul. this of Yes Scott I'll it. kind

from quarter started TEL, first just quarter. quarter. TEL And Warehousing think could I also time. pullback going the think continued Dedicated expedited from the as think I quarter. improvement flattish the managed probably they're about more TEL to I some talking with improvement know you're the And see wild then freight. see in you first going we first from the with the I flat-ish this probably that to be cards going sequential what's think market. on first

could quarter the pull saw bit. see little you back from acceleration don't you'll fourth quarter. think I first quite TEL think I a into

well think and and expedited trans wild those are Dedicated pull for second we the And managed TEL better. quarter. revenue really cards. as the margins managed flat-ish. see trans back you'll warehousing as So

Scott Group

there's lot on right you right are Joey that market Okay. focus obsession a of now. spot

going take what's pricing? on market or end you the temporary? impact on in this rates? what of if any contract de-sell the are pricing, down are negotiations this seeing Is seeing the spot slow contractual your And any curious you beginning or of for is and Just then

Joey Hogan

is X% the thing side first on just of the market mean on business. truck think the truck I small side spot the it's I very Well,

doesn't of side it think market after spot the so moves it's and contracts all part though obviously, a first the "bother then and contract So big I that. know can the We impact it us." potentially moves eventually.

rates the second to confident quarter the I seeing will what first continue to right we're quarter. we're think pretty that now grow from our

second the quarter. our And so and dedicated Both thus far contract looks new good. in expedited starting business business have up

good So the that that help feel well let's us of expedited team solidify that going nicely going into into volumes work a that's now year. as done we lot We're our it about has the right to as confident call future.

I see kind think the where we is that. on brokerage do in potentially business. our of And commented Paul's already most it

to meaningfully the revenue is group I about dropped XX%. in point quarter think though what pretty that quarter first fourth to I from almost

So which looks did even think we a business. volume combined there again, What small though fourth right that as side I the We continue brokerage us point spot The revenue that slowing what know good. doing from in its our into continue least our pedal then the good margin In the for well. this to people bit a brokerage that at to peak-ish tends segment with team's that now. little results first, down expand really just margins but see showed impact expanded to happens was grow it have we the to slow market, forward? pipeline to business from down

lot see. I drop down know little. the first Right to quarter. agree in Margins where if don't revenue the now So could whole it it's Paul was question. be from a we'll margins I are will going be with a holding.

how plays first X% quarter. GDP in So out, we'll the down the rest quarter the of see

we're to that last slow. that question. So going and for of no economy us four January We work started really the talked year But out encouraged in the how years. the about our or there's back five results is the

Paul Bunn

Scott, what I'll add Joey said. one thing to

last shock ourselves And customers value. we're make we the you over isn’t the tried adding what know actually been as aligning take confidence much because to we're we've think have. doing. gives us We've advantage market didn't that what tried and guys years of as rate we've really this a with we that's sure could couple where maybe I play,

still were shape working we for process we've I weed on, more because most think than we've and to so, been, got through accounts in commoditized And we're we're we commoditized. tried player, where really a a less few these better we're just those part, and the but exit value-add a feed of

Joey Hogan

Yeah.

Scott Group

us little that to Maybe that changes guys what are lost is the because that I just new think What range and now? to XXXX. money, a peak so expedited in remind you point, bit within business think have the of you expedited sort margin trough for of made,

Paul Bunn

last years, during tried had to couple to the partner people think us with I we I said, brought the as dance. who

And customers. would pretty multi-year some so a and got those with I a it's business, concentrated say, agreements number we've of

think done try to it to I what up. we've so, And that's tighten

standpoint. probably to to I think high-teens the on the from trough high-single-digits is is peak the to peak margin draw

Joey Hogan

add more Scott, I'd point one back that. to And

The that trucks a highway then in as of just in solo quite a changed the reefer been of if formally we lot segment kind will profile our XXXX, that you're out formally XXXX, in teams-based pulled down we known And XXXX. a running If came really to the purely back looking you bit a count known be lot XXXX, volatility did had remember we running including of part breakeven division, SRT as restructuring that us it's as to a but services. trucks operation. fleet at in caused you of

Scott Group

time. I guys. appreciate the you, Thank

Paul Bunn

Thanks, Scott.

Joey Hogan

Scott. Thanks,

Operator

next Stephens. Jack, from from Our go are you line? on question you the Jack Are comes ahead, Please Hello muted? Jack. Atkins

Jack Atkins

Yeah.

question. for I good that. was taking Guys, about morning. Sorry muted. my Thanks

Joey Hogan

morning. Good

Jack Atkins

first of it the cyclicality to I'd maybe you're I little what accretive business. of the in how results if about was their quarter little a saying, a fits love you get your longer-term we to From quarter. So around us maybe Tell already could about of started, the reducing talk bit sort guess, sort to acquisition the model business into within AAT. strategy maybe it and some

Paul Bunn

do. a B, specialized complement to trucks very a that small but group the of primarily what profitable. It's operation A, Yes. all government. teams, And we it's obviously is it's which for work a

It's special we've it performance Covenant existing the So, will. time. for operation, the pleased you that are very of clearance quite a the very I'm understand if cleared. hauls the asset I'm assisting complement our with team an that's group. small business. high It's all that number, government very looked some to with Group making but sure a we pleased munitions drivers at priority DOT how

There that's you very is from segment small it, but so consistent a the volatility some marketplace. And it's in to will if standpoint. a volume

lot there volatility volume Revenue a is not stable. pretty is of than per of around the -- pricing existing higher business. parameters kind much high, is our but group expedited very truck So some that

and gives is of customer So, gives with their in a base that the thing it path. main opportunity B, drivers much anything our a it us it A. as another as that's career diversification

of lot have for pays there's that. So, but experience, It well to demands no very high you very, very, a have accidents.

military of lot across a bases with working You're the country.

it very our got growth to we're don't I'm neat we And specialized Covenant opportunities excited. taking make We've overwhelm exploring. So excited sure We're team. slow that about I'm team. some

not separately. nor disclose we're So, will of required results kind we

a And the so, it's separate division expedited part overall as just group. of

Jack Atkins

No, that off a Okay. acquisition start. that's sounds but sense, like a and it makes good it's good to

Paul Bunn

Yeah, we're very pleased.

Jack Atkins

longer And maybe earning investment. is bigger through asset more Can to you when that shifting a down sustained I'm we think the your you've first gains maybe So between us stream that? what about agreements I think how and improvement contribution bigger three, be that what's maybe in TEL it help piece and got you signing the in break maybe some I gears longer guess Obviously, leasing term guess guess, just maybe four-year I type of there. picture you relative could that TEL quarter, from bigger term that's maybe the call there. some trying to flowing maybe becoming to saw here. do about think visibility

Joey Hogan

a kind picture. Yeah, of just to things quick couple

investments to Covenant cash every As It's way. the XXXX. we've year we've made a along since had distribution said, the virtually

make Every there it's we I distribution. that year. money. year made not Every year single was did a think one

money. COVID So it's through XXXX, made through XXXX the recession XXXX

of It's So it's large operation. we growth did investment. had in the little through out XXXX, of steady that a but as a to a our great time, stall work business on is that. rate. want way that I that growth investment back the stable been The that for profitable a We period a evidenced to made group by XXXX, of did job working say

it three So in there's the said does comments segments. we distinct as

credit standpoint on really weakness, or compliment not a is would of extent The to fleet model just been several growing moved the large take lot side new to job referring is needs equipment or the a It's equipment. lease team for has And there a strong, to if purchase profile purchase that small move a fleets. side is a side there's I in sales neat business. that stable. sales great base to segment. side has lease the call leasing medium a to to volatility the you're to of the equipment what what equipment And from So the that the side. steadily great client customer years. fleet leasing the not Small It's some on it very does credit be that

they anecdotal just very a and As credit and does do than I'll right creative this providing The more -- clients. as it is over point. as no with of working that There's team It strong days, very call zero, XX also profile an a job -- I receivables good share now well. there's so service process. they're it's

business? is and it do profit. make here complimentary So we But truly do service. with some client. neat operation a to help produce it's Yes better we're a your working you How a in truly money

now it now. So to equipment. sales markets side, the move losses They're equipment has the to it extent the The gains market's and yes, needs right now. good really well in doing

the the so a think We're is And as market is seller. buyer always good-sized benefit being key. known I the in and

bad I good think as the period markets markets and or time. So of that's helping long model a for

Paul Bunn

Jack, the year say multi-year a I multi-year on customer the XX-plus the is most not a in is piece your leases, leasing of it's waterfall a on that would of but specific question leases. the trailer leases customer pool There's portfolio that's to those.

years something And so this got And hardly with to a component recent most XX or no three, it. really as worked Joey either plus attached no thing their nine, There's customer a somebody -- a probably quality everything short-term environment really upgrade they've it's to five-year not base. to taken there's said that's component it. rental to four, here's Most of for is credit they've the life it. eight,

so at. And that's where they're

Jack Atkins

business the That Okay. that's piece a structurally structurally more another sounds It makes of just last this profitable that's cycle. sense. cycle -- than like

Paul Bunn

Yes, yes.

Jack Atkins

of to more gears under maybe cycle. and You visibility. that you bit piece prior commitments the there you expedited you've know, of give shifting longer kind think of question, feel portion and matter little work what the kind all the about make maybe is to but no term Any that about a talked sort you of pretty a going the on when done with comfortable happen business a of update back what yourself may that business

earning sort visibility good of flow how to going into stream's pretty some the got You've there.

Joey Hogan

XX%-ish. Yes.

Jack Atkins

that say too question of, when take going at the you takes or another Would the different it I of, up. but just hesitancy take last and too That's to maybe I'm That's to kind be to that quarter-over-quarter, a it hold potential you granular, puts all And the kind walk flat great. roll to stab expedite? quarter is from this the great. Paul earnings volatility given you, and second hard think at through get Okay. understand able you'd point all and, perspective segment within then

Paul Bunn

freight out managed to Jack. going where really shakes It's determine

Jack Atkins

Right.

Paul Bunn

no shipping determines lot stuff holidays how in a just out season produce beverage of those quarter. many how lot a times and and things July both a port determines on of And workdays, months. of and And materializes. you the times mean, for pre-Xth quarter-end so that where materialize I June come lot situation seeing and of March those of out season first customers the the

to to going And you Joey's I'd number, give so hesitate to good it's be a but point a number.

happy. You'll be

Jack Atkins

it Well pass guys again great. quarter. I’ll congrats the sounds on That great over.

Paul Bunn

Thanks, Jack.

Operator

comes from ahead, from go question Jason. Seidl Jason next Please Our Cowen.

Jason Seidl

a you, in Thank and thus seeing Gentlemen, on terms question Yes. quarter. little operator. piggyback of are congrats sort far here of, look, the side margins on a that to just transport what on great your managed as quarter-to-date you you good morning Wanted bit XQ? compared as to

Paul Bunn

are little are say I margins same. running a running Revenue's the about –yes, Margins same. about that’s margin's same. would the lower,

Jason Seidl

going And for of in to do so section? it our really is situation determining quarter in June what terms that the margins

Paul Bunn

Yes.

Jason Seidl

Okay. Perfect.

plans guys that of bucket's been terms in your aggressive re-up sort on to have on allocating empty now. almost You of buyback and about buyback Talk capital. the

Joey Hogan

it's -- the looking been program. performing to quarter in the expect we in the second what's nevertheless, program be real pushing pleased a and next. we've And completed we're how of to we're somewhat buyback well. very worked Yes, But has diligently creative it's

not are So to say re-up what about not, our but we're or Jason. opportunities to going we're whether excited ready

Jason Seidl

it to any you up of to spot a enough. are increases degradation talked amount Joey, sort still wanted getting the or of, is in side, and made at the sort to, how seeing you a right? go contract of the little you're Okay. I all you Well, leads comment fair contract, about bit in

Joey Hogan

still had right? It's if to recall. wages times three I when was driver up. year Last raised we We

and may probably increases nowhere. last another it. There's out increase pass-through stupid equipment our on So had that And improvement and carriers last wasn't call coming. exploding. where word improved to we it overall We are had but of driver market on the were the just like costs we a other wages move moderating that because even came be year though it their I'll three margin put week still now's were in just I've

over all up. labor is that road going so it's parts still repair And the the and still equipment there availability market, market, the

just And so I'm that increases. as of group a using category cost

need to it profit and on some but increases. as quarter's was not. happy second believe to So with year? from quarter it's we're it be going standpoint, big No last Is that get a we a But still as I what's continue pricing going as our for as the to kind of still happens us it big used is first because year dedicated be will. come not brokerage it's then Expedite year. of is whenever of in throughout half you contracts heavy the those kind the And if up. to

not And the as is weighted warehouse as changed. how used new a we we're So, of because past heavily be comes when to model kind comes, the business. business it in our it has with of

And with so contracts. renews that annually those

to I'd our what of the rate than movement to less is of model has changed. impact to about going kind the in be the So, is enterprise because ask past you think

us. And the in maybe impact today past slowing impact is of so it rate for has the been less than market of an

Jason Seidl

your changing for jump sense. makes minute transport this That If if how? business? contracts length manage so, to of I here, Okay. in your a are And

Paul Bunn

You're how how mainstream spot much saying basically side? on we much are contract versus

Jason Seidl

one there. curious… And to contract three seeing deals six-month a side, are the other shift of sort your of was of just to one I'm even providers they're the because more out the of that said day on things, that type the

Paul Bunn

lot I would business be of brokers trying want year and XX:XX, more we've spot. the shift say, A contract XX:XX. it a more little to spot. to been was Last

the of we're probably versus try contracts the second say by XX:XX or on XX of And contract months. still so third end And to to be spot. are aiming our I I would most quarter Jason, think,

Jason Seidl

again else. They it That always gentlemen, somebody I’ll turn as the appreciate quarter. Well are time to still sense. makes okay. months, I XX impressive over and

Paul Bunn

Jason. Thanks,

Operator

comes question Bert. Subin next ahead, Please go from from Our Bert Stifel.

Bert Subin

Joey, Paul. Good Thanks. Tripp, are morning, Hope well? doing you

Paul Bunn

morning. Good

Joey Hogan

Good morning, Bert.

Bert Subin

I'll brief. two questions I had keep just you. for it pretty

how spot think topic the it does how this, things know across you lot and resilience Joey, Like, XXXX the just let's I now. the to quantify into differential? starting business last but the where the is right I say we're to of the you've business, Like exposure or affecting a today On could curious -- cycle? but entire talked compare that like of get I'm about that's

Joey Hogan

past first quarter and that now part we that almost cost back is in amount some services And has Actually always in highway we highway then go markets because just This peak was what drain let's heavy, will of I quarter. fair last is of of to a solo quarter, the spot So fourth It's 'XX, The has has contract. trucks That's had what piece A contractual, quarter much happen year. in event expedited that gone. there in not services been lot little was to did to called last less expedite doesn't the the nothing contractual. success contract it. 'XX. much been a one-time that what expedited heavy, dated. call as year. spot, you It year. in the fourth understanding. spot been to is that, a could that. impact the as heavy the it but of It's every It's The saw if to heavy today was

And very a much XX less Brokerage managed flow. weeks gone. In stable so running on business in which a a was 'XX, we gone, didn't trans, XXXX. didn't XXX% they stable is stay warehouse. have have year, not cash We very focused practically can cash It's but flow. a

today's is So to in let's XXXX it prior different. different really when back I drastically think, in ramp-up go to call, XXXX talk model and XXXX, about drastically the -- I the drop if XXXX you

so of piece the the solo and back And much bigger spot was greater then impact it pie. piece expedited the back was was was then probably a even small though it much

not brokerage Today if the as I'm numbers, Bert, piece volume-wise revenue and hedge will so you margins at you can And of managed the specific of things look in impact net trans. inside but a sense of different. XXXX today that have the today increase. I is question what and But drastically soften typically your just just it's answering the with kind spot say

just a it's that different different ballgame. it some decrease So so of just and offsets a totally volume potentially,

Bert Subin

on like or it to ballpark today Just just XX% it something if at it put some like frame it maybe and like that? was XXXX to numbers XX%

Paul Bunn

Yes.

it the just It's just minute said the pretty because is let's rest you a Expedited as frame mix said much and me contract. the Let we much business dedicated, contract contract ago pretty XX-XX warehousing. contracts. brokerage Bert. for use versus I contract is of spot

of Spot market. cost. trans XX% of your spot XX% let's you and total trans So got probably to just with surge. managed the go -- XX% managed is

your where that's so revenue. exposure And of -- is that bucket is on

Bert Subin

mean, sounds for just like EPS. I to path my certainly follow-up, you an And easier it Okay. XXXX beating have

So think in, of, if It you low getting EPS year you about were you've year. better. of like maybe $X sort talked XXs you range maybe being we is the think tougher going do it slowly future? about keep, in sort Expedited a this just dedicated how have like like of, a to seems

how then sort in is And year? erodes you managed it rise just that margins of bad a concern OR Are things if stress do or makes and so revenue were hundred in freight potentially think situation positive stay a would the a to the that -- where that rollover above just if business there thinking that? we about you enough

Paul Bunn

XX% to offline from would been rising of kind and managed But would of pull a four a side trough hundred. in ascribe or No, talking to it. the business then number trans business other you in margins it wherever peak we that And front hammered trough lot and I just peaks we no, to of back of no. peak trying growth and of offset us you in to define we're on of managed margins. day standpoint total trough something brokerage above and much mean, as improve a the From the your down a as. gave softening be your I trans have of I pullback XX% to with that can. think kind XX% revenue every we businesses folks a lot that's numbers. as -- But trough in of XX%, don't kind so this that see peak

Bert Subin

Yes.

XX% scenario to to frame would you earnings how would Like feels sort sort than mean, down probably expedited bear guys? to would just you I Is Just that of than need materially go clarify more of be it. worse. a need headwinds. freight like you for understand that so managed more I like you

Paul Bunn

able Yes. A we're kind business of expedited drop the back and add be to brokerage bear pulling to mid-XXs. before in would significant base scenario to

Bert Subin

Got it.

very much, Thank Okay. you Paul and Joey.

Operator

Gentlemen, at it appears are Instructions] questions. [Operator time this no further there

Joey Hogan

this Ross, the Thank to morning the second in appreciate everybody's and you to for call. And talking quarter. you. help forward thank your look with you attention

Operator

you This call. concludes attending. today's for conference Thank

Covenant Logistics (CVLG) 29 Apr 222022 Q1 Earnings call transcript