Covenant Logistics Group, Inc. (NASDAQ:CVLG)
Q1 2021 Earnings Call
Apr 27, 2021, 11:00 a.m. ET
- Prepared Remarks
- Questions and Answers
- Call Participants
Excuse me, everyone, we now have our speakers in conference. [Operator instructions] At this time, I would now like to turn the conference over to Joey Hogan. Please go ahead, sir.
Joey Hogan — Co-President and Chief Administrative Officer
Thank you. Now welcome to Covenant Logistics Group’s first-quarter conference call. As a reminder for everyone, this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements.
Please review our disclosures and filings with the SEC, including, without limitation, the Risk Factors section and our most recent Form 10-K and our current year Form 10-Qs. We undertake no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances. As a reminder, a copy of our prepared comments and additional information is available on our website at covenanttransport.cominvestors. I’m joined this morning by our chairman and CEO, David Parker; our chief operating officer, Paul Bunn; and our chief accounting officer, Tripp Grant.
We’re going to start with the excitement around our first-quarter results. From an adjusted EPS perspective, we reported the best first quarter in our history. And the team was able to exceed our previous best first-quarter result by 87% or $0.26 per share, which we did in 2015. The resolve and hard work of our team over the last year transforming our company into a multiservice logistics company is starting to bear fruit, and we’re honored to serve and lead an exceptional team.
In summary, the highlights for the quarter. Our operating revenue grew 6% to $201 million compared to the 2020 quarter, while our tractor fleet was 467 trucks smaller than the same period a year ago. 35% of our consolidated revenue was in our more volatile expedited division versus 41% in the first quarter of 2020. Our managed freight and warehouse segments combined grew 56% compared to the first quarter of 2020.
Despite rising casualty insurance premium costs through reduced accidents is our third-best quarter in history. And minimal prior period claims costs were able to reduce our insurance cost significantly compared to recent quarters. Our tail leasing company investment has fully recovered from the soft equipment market and a large customer issue to increase earnings per share by approximately $0.16 a share. We received an indemnification call from Triumph Bancorp regarding the dispute resolution associated with the sale of our TFS segment in 2020 that resulted in us funding $36 million during the quarter, all of which was reserved during the fourth quarter of 2020.
Additionally, TBK was able to collect some funds related to our fourth quarter accrual that allowed us the opportunity to reverse $3.4 million of our accrual. Additionally, we were able to purchase approximately 460,000 shares of our stock at about $8 million. Providing a little more color on the items affecting the business units. The expedited division performed quite well for our first quarter.
The freight market continues to be strong and offers rate and lane improvement opportunities, evidenced by a 35% improvement in revenue per truck per week. Please recall that last year, we still had our solo division and the closure of that unit contributed to the 425 truck reduction in this unit. On a reported basis, revenue per mile for expedited appeared flat. However, the mix changed materially with our eliminating of the solo fleet, thereby increasing the length of haul by 39% and…