# EDGAR Filing Document

**Accession Number:** 0000928658
**File Stem:** 0001008886-25-000221
**Filing Date:** 2025-7
**Character Count:** 46531
**Document Hash:** 5ac90d39901dee527efd24444a8917c4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001008886-25-000221.hdr.sgml**: 20250723

**ACCESSION NUMBER**: 0001008886-25-000221

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250723

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250723

**DATE AS OF CHANGE**: 20250723

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** COVENANT LOGISTICS GROUP, INC.
- **CENTRAL INDEX KEY:** 0000928658
- **STANDARD INDUSTRIAL CLASSIFICATION:** TRUCKING (NO LOCAL) [4213]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 880320154
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42192
- **FILM NUMBER:** 251143673

**BUSINESS ADDRESS:**
- **STREET 1:** 400 BIRMINGHAM HIGHWAY
- **CITY:** CHATTANOOGA
- **STATE:** TN
- **ZIP:** 37419
- **BUSINESS PHONE:** 4238211212

**MAIL ADDRESS:**
- **STREET 1:** 400 BIRMINGHAM HIGHWAY
- **CITY:** CHATTANOOGA
- **STATE:** TN
- **ZIP:** 37419

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** COVENANT TRANSPORTATION GROUP INC
- **DATE OF NAME CHANGE:** 20070522

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** COVENANT TRANSPORT INC
- **DATE OF NAME CHANGE:** 19940818

?xml version='1.0' encoding='ASCII'?

------

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

#### ___________________________________________________________________

### FORM 8-K

#### CURRENT REPORT

#### Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):

July 23, 2025

#### ___________________________________________________________________
![graphic](image0.jpg)

### COVENANT LOGISTICS GROUP, INC.
(Exact name of registrant as specified in its charter)

Nevada 001-42192 88-0320154 <br> (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer &nbsp;&nbsp;&nbsp;&nbsp;Identification No.)

400 Birmingham Hwy, Chattanooga, TN 37419 <br> (Address of principal executive offices) (Zip Code)

(423) 821-1212

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

---

| | |
|:---|:---|
| ☐<br>| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐<br>| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐<br>| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐<br>| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: |

---

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| $0.01 Par Value Class A common stock<br>| CVLG<br>| The New York Stock Exchange |

---

---

| | |
|:---|:---|
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Emerging growth company ☐ |
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ] | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ] |

---

------

---

| | | |
|:---|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition.** | **Results of Operations and Financial Condition.** |
|  | On July 23, 2025, Covenant Logistics Group, Inc., a Nevada corporation (the "Company"), issued a press release announcing its financial and operating results for the quarter ended June 30, 2025. A copy of the press release is attached to this report as Exhibit 99.1. | On July 23, 2025, Covenant Logistics Group, Inc., a Nevada corporation (the "Company"), issued a press release announcing its financial and operating results for the quarter ended June 30, 2025. A copy of the press release is attached to this report as Exhibit 99.1. |
| **Item 9.01** | **Financial Statements and Exhibits.** | **Financial Statements and Exhibits.** |
|  | (d) | **Exhibits.** |
|  | EXHIBIT<br> <u>NUMBER</u> | <u>EXHIBIT DESCRIPTION</u> |
|  | [99.1](exhibit991.htm)<br>| Covenant Logistics Group, Inc. press release, announcing its financial and operating results for the quarter ended June 30, 2025. |
|  | 104 | Cover Page Interactive Data File. |
|  | The information contained in Items 2.02 and 9.01 of this report and the exhibit hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. | The information contained in Items 2.02 and 9.01 of this report and the exhibit hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. |

---

------

#### SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **COVENANT LOGISTICS GROUP, INC.** | **COVENANT LOGISTICS GROUP, INC.** |
|  | (Registrant) |  |
| Date: July 23, 2025 | By: | /s/ James S. Grant |
|  |  | James S. Grant |
|  |  | Executive Vice President and Chief Financial Officer |

---

## Exhibit 99.1

------

Exhibit 99.1<br>

![](image0.jpg)

#### COVENANT LOGISTICS GROUP ANNOUNCES SECOND QUARTER 2025

#### FINANCIAL AND OPERATING RESULTS
CHATTANOOGA, TENNESSEE – July 23, 2025 - Covenant Logistics Group, Inc. (NYSE: CVLG) ("Covenant" or the "Company") announced today financial and operating results for the second quarter ended June 30, 2025. The Company's conference call to discuss the quarter will be held at 10:00 A.M. Eastern Time on Thursday, July 24, 2025.

Chairman and Chief Executive Officer, David R. Parker, commented: "We are pleased to report second quarter earnings of $0.36 per diluted share or $0.45 per diluted share on a non-GAAP adjusted basis.

"The highlight of our second quarter's results was year-over-year freight revenue growth of 7.8% to $276.5 million, an all-time high for any quarter in the history of our enterprise. This milestone was achieved despite an operating environment that remained competitive throughout the quarter across many Expedited, Managed Freight, and non-specialized equipment Dedicated accounts. As the general freight market improves, we believe we are well positioned to capitalize on opportunities that improve margin and return on capital. We are also pleased to announce that during the quarter we were successful in repurchasing approximately 1.6 million shares of outstanding common stock at an average price of approximately $22.69 per share, amounting to $35.2 million of our $50.0 million stock repurchase program.

"Our 49% equity method investment with Transport Enterprise Leasing ("TEL") contributed pre-tax net income of $4.3 million, or $0.12 per share, roughly in line with the prior year quarter's results of $4.1 million."

#### Second Quarter Financial Performance:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **($000s, except per share information)** | **2025** | **2024** | **2025** | **2024** |
| Total Revenue | $302854 | $287497 | $572209 | $566260 |
| Freight Revenue, Excludes Fuel Surcharge | $276532 | $256512 | $519751 | $504197 |
| Operating Income | $11563 | $15577 | $19190 | $19912 |
| Adjusted Operating Income <sup>(1)</sup> | $15019 | $18670 | $25876 | $33470 |
| Operating Ratio | 96.2% | 94.6% | 96.6% | 96.5% |
| Adjusted Operating Ratio <sup>(1)</sup> | 94.6% | 92.7% | 95.0% | 93.4% |
| Net Income | $9840 | $12194 | $16403 | $16168 |
| Adjusted Net Income <sup>(1)</sup> | $12415 | $14452 | $21384 | $25969 |
| Earnings per Diluted Share | $0.36 | $0.44 | $0.60 | $0.59 |
| Adjusted Earnings per Diluted Share <sup>(1)</sup> | $0.45 | $0.52 | $0.78 | $0.94 |

---

(1) Represents non-GAAP measures.

------

#### Truckload Operating Data and Statistics

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **($000s, except statistical information)** | **2025** | **2024** | **2025** | **2024** |
| **Combined Truckload** |  |  |  |  |
| Total Revenue | $199577 | $201475 | $387879 | $391428 |
| Freight Revenue, excludes Fuel Surcharge | $173395 | $170771 | $335724 | $329966 |
| Segment Operating Income <sup>(1)</sup> | $13679 | $25137 | $21316 | $44328 |
| Adj. Seg. Operating Income <sup>(2)</sup> | $9590 | $12788 | $15799 | $22817 |
| Segment Operating Ratio <sup>(1)</sup> | 93.1% | 87.5% | 94.5% | 88.7% |
| Adj. Seg. Operating Ratio <sup>(2)</sup> | 94.5% | 92.5% | 95.3% | 93.1% |
| Average Freight Revenue per Tractor per Week | $5543 | $5726 | $5480 | $5688 |
| Average Freight Revenue per Total Mile | $2.52 | $2.38 | $2.52 | $2.37 |
| Average Miles per Tractor per Period | 28620 | 31270 | 56146 | 62459 |
| Weighted Average Tractors for Period | 2406 | 2294 | 2369 | 2231 |
| **Expedited** |  |  |  |  |
| Total Revenue | $97300 | $108010 | $191993 | $213481 |
| Freight Revenue, excludes Fuel Surcharge | $83229 | $88918 | $163478 | $175518 |
| Segment Operating Income <sup>(1)</sup> | $7466 | $12831 | $13056 | $23699 |
| Adj. Seg. Operating Income <sup>(2)</sup> | $5077 | $5302 | $9731 | $10619 |
| Segment Operating Ratio <sup>(1)</sup> | 92.3% | 88.1% | 93.2% | 88.9% |
| Adj. Seg. Operating Ratio <sup>(2)</sup> | 93.9% | 94.0% | 94.0% | 93.9% |
| Average Freight Revenue per Tractor per Week | $7442 | $7516 | $7383 | $7459 |
| Average Freight Revenue per Total Mile | $2.11 | $2.06 | $2.12 | $2.08 |
| Average Miles per Tractor per Period | 45754 | 47396 | 90018 | 93448 |
| Weighted Average Tractors for Period | 860 | 910 | 856 | 905 |
| **Dedicated** |  |  |  |  |
| Total Revenue | $102277 | $93465 | $195886 | $177947 |
| Freight Revenue, excludes Fuel Surcharge | $90166 | $81853 | $172246 | $154448 |
| Segment Operating Income <sup>(1)</sup> | $6213 | $12306 | $8260 | $20629 |
| Adj. Seg. Operating Income <sup>(2)</sup> | $4513 | $7486 | $6068 | $12198 |
| Segment Operating Ratio <sup>(1)</sup> | 93.9% | 86.8% | 95.8% | 88.4% |
| Adj. Seg. Operating Ratio <sup>(2)</sup> | 95.0% | 90.9% | 96.5% | 92.1% |
| Average Freight Revenue per Tractor per Week | $4486 | $4549 | $4403 | $4480 |
| Average Freight Revenue per Total Mile | $3.06 | $2.86 | $3.08 | $2.82 |
| Average Miles per Tractor per Period | 19085 | 20667 | 36974 | 41309 |
| Weighted Average Tractors for Period | 1546 | 1384 | 1513 | 1326 |

---

(1) Segment operating income and segment operating ratio exclude indirect costs not directly attributable to any one reportable segment, amortization
 of intangible assets, and contingent consideration liability adjustments to match the information our Chief Operating Decision Maker uses to evaluate the operating results of our reportable segments. The prior year periods have been
 conformed to this presentation.

(2) Represents non-GAAP measures.

#### <br>

#### Combined Truckload Revenue
Paul Bunn, the Company's President commented on truckload operations, "For the quarter, total revenue in our truckload operations decreased 0.9%, to $199.6 million. The decrease related primarily to $4.5 million less fuel surcharge revenue, which varies with the cost of fuel. Freight revenue grew by $2.6 million, or 1.5%, as a result of a 4.9% increase in average tractor fleet, partially offset by lower equipment utilization."

#### Expedited Truckload Revenue
Mr. Bunn added, "Freight revenue in our Expedited segment decreased $5.7 million, or 6.4%. Average total tractors decreased by 50 units, or 5.5%, to 860, compared to 910 in the prior year quarter. Average freight revenue per tractor per week decreased 1.0% as a result of a 3.5% decrease in utilization, partially offset by a 2.4% increase in freight revenue per total mile."

#### Dedicated Truckload Revenue
"For the quarter, freight revenue in our Dedicated segment increased $8.3 million, or 10.2%. Average total tractors increased by 162 units, or 11.7%, to 1,546, compared to 1,384 in the prior year's quarter. Average freight revenue per tractor per week decreased 1.4% as a result of a 7.7% decrease in utilization, partially offset by a 7.0% increase in freight revenue per total mile."

------

#### Combined Truckload Operating Expenses
Mr. Bunn continued, "Rising operating costs in our combined truckload segment negatively impacted operating margins compared to the prior year quarter. Higher costs primarily include salaries, wages and related expenses and operations and maintenance costs necessary to seat and operate our equipment. Most expense increases were expected, as they relate to growth in high-service and low-mileage operations. The expense increases were partially offset by a 5.9% increase in revenue per total mile.

"Salaries, wages and related expenses increased year-over-year by 7 cents, or approximately 6%, on a per total mile basis. The increase was driven primarily from the year-over-year impact of significant growth in our dedicated protein supply chain business. As we grow our dedicated fleet in niche services, it requires hiring and retaining skilled drivers and maintenance professionals to operate and maintain specialized equipment on loads that typically move heavy weights on non-paved roads with shorter lengths of haul, resulting in higher costs on a per total mile basis.

"Operations and maintenance expenses increased 2 cents per total mile, or approximately 10%, compared to the prior year quarter primarily due to increased maintenance on Dedicated equipment in niche service areas with high stress demands on equipment and short length of haul.

"Fuel expense for the current quarter was comparable to the prior year on a cents per total mile basis. However, when the cost of fuel is netted with fuel surcharge revenue, the impact to operating income was unfavorable by 5 cents per total mile. As fuel quickly fluctuates in price, the impact to our fuel surcharge recovery model may be delayed, resulting in temporary favorable or unfavorable margins. In this case, compared to the prior year, quickly rising fuel prices at the end of the quarter created an unfavorable impact to our operating income.

"Safety continues to be our priority as we consistently strive to raise our own standards by hiring highly qualified drivers, implementing proactive training sessions, and investing in and implementing the latest safety equipment and technology. For the past several years, our safety statistics have been at or near the best in our history. Insurance and claims expense for the current quarter was comparable to the prior year on a cents per total mile basis. Given the self-insured portions and limits of our insurance program, and the risk of extremely large awards and settlements in our industry (so-called "nuclear verdicts/settlements"), the amount of expense recognized from period to period can fluctuate materially.

#### Managed Freight Segment

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **($000s)** | **2025** | **2024** | **2025** | **2024** |
| Freight Revenue | $77550 | $60366 | $134400 | $123283 |
| Segment Operating Income <sup>(1)</sup> | $4462 | $3808 | $8002 | $6538 |
| Adj. Seg. Operating Income <sup>(2)</sup> | $4171 | $3594 | $7520 | $6127 |
| Segment Operating Ratio <sup>(1)</sup> | 94.2% | 93.7% | 94.0% | 94.7% |
| Adj. Seg. Operating Ratio <sup>(2)</sup> | 94.6% | 94.0% | 94.4% | 95.0% |

---

(1) Segment operating income and segment operating ratio exclude indirect costs not directly attributable to any one reportable segment, amortization
 of intangible assets, and contingent consideration liability adjustments to match the information our Chief Operating Decision Maker uses to evaluate the operating results of our reportable segments. The prior year periods have been
 conformed to this presentation.

(2) Represents non-GAAP measures.

"For the quarter, Managed Freight's freight revenue increased 28.5%, from the prior year quarter. Operating income improved 17.2% and adjusted operating income improved 16.1% compared to the second quarter of 2024. The growth in this segment is attributable to new business awarded in the year that surged in the current quarter, as well as the team's effort to identify and execute on overflow capacity for our Expedited fleet."

#### Warehousing Segment

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **($000s)** | **2025** | **2024** | **2025** | **2024** |
| Freight Revenue | $25587 | $25375 | $49627 | $50948 |
| Segment Operating Income <sup>(1)</sup> | $1916 | $2895 | $3760 | $5786 |
| Adj. Seg. Operating Income <sup>(2)</sup> | $1258 | $2288 | $2557 | $4526 |
| Segment Operating Ratio <sup>(1)</sup> | 92.6% | 88.7% | 92.5% | 88.8% |
| Adj. Seg. Operating Ratio <sup>(2)</sup> | 95.1% | 91.0% | 94.8% | 91.1% |

---

(1) Segment operating income and segment operating ratio exclude indirect costs not directly attributable to any one reportable segment, amortization
 of intangible assets, and contingent consideration liability adjustments to match the information our Chief Operating Decision Maker uses to evaluate the operating results of our reportable segments. The prior year periods have been
 conformed to this presentation.

(2) Represents non-GAAP measures.

"For the quarter, Warehousing's freight revenue increased 0.8% versus the prior year quarter. Operating income and adjusted operating income for the Warehousing segment decreased $1.0 million compared to the second quarter of 2024, driven by the combination of facility-related cost increases for which we have not yet negotiated rate increases with our customers and start-up costs and inefficiencies related to new business. We expect margins to gradually improve on existing operations as the start-up phase rolls off and rate negotiations are concluded."

------

#### Capitalization, Liquidity and Capital Expenditures
Tripp Grant, the Company's Chief Financial Officer, added the following comments: "At June 30, 2025, our total indebtedness, composed of total debt and finance lease obligations, net of cash ("net indebtedness"), increased by $49.0 million to approximately $268.7 million as compared to December 31, 2024. In addition, our net indebtedness to total capitalization increased to 39.2% at June 30, 2025, from 33.4% at December 31, 2024.

"The increase to net indebtedness in the first half of the year is primarily attributable to the payment of acquisition-related payments of $19.2 million and repurchasing approximately $35.2 million of common stock outstanding.

"At June 30, 2025, we had cash and cash equivalents totaling $0.1 million. Under our ABL credit facility, we had $24.6 million of outstanding borrowings, undrawn letters of credit outstanding of $19.9 million, and available borrowing capacity of $65.5 million.

"At the end of the quarter, we had $6.2 million in assets held for sale that we anticipate disposing of within twelve months. The average age of our tractors slightly increased to 22 months compared to 21 months a year ago.

"Our expectations for net capital equipment expenditures for the remainder of the year is $50 million to $60 million, more than originally anticipated as a result of growth expected in our dedicated fleet. Our equipment plan reflects our priorities of maintaining the average age of our fleet in a manner that allows us to optimize operational uptime and related operating costs and offer a fleet of equipment that our professional drivers are proud to operate. We expect the benefits of improved utilization, fuel economy and maintenance costs to produce acceptable returns despite increased prices of new equipment and potentially lower values of used equipment."

#### Outlook

Mr. Parker concluded, "We believe that general freight market fundamentals are slowly improving, although progress is uneven due to ongoing fluctuations in inventory levels, government policies, supply chain patterns, and industry-wide tractor capacity. We believe capacity is slowly exiting the market through a combination of fleet downsizing by larger companies, bankruptcies of smaller companies, and enforcement of English Language Proficiency and B-1 visa regulations. We are optimistic that demand will improve as excess inventories from import pull-forwards are reduced, tax and monetary policy changes take hold, and trade policy becomes clear. Improved market fundamentals typically benefit the general commodity freight within our Expedited, Dedicated, and Managed Freight segments, although the Managed Freight segment can see margin pressure until rates reset. Outside the general market, the specialized freight within our Dedicated and Expedited segments are growing, and we see resilient demand for our services. We continue to remain focused on positioning the Company to execute quickly and gain operating leverage as conditions improve, continuing to capture new dedicated contracts to expand the fleet organically, and evaluating multiple acquisition and investment opportunities. Our goal remains to grow profitably and generate meaningful returns for our stockholders while providing world-class career opportunities for our team members."

#### Conference Call Information
The Company will host a live conference call tomorrow, July 24, 2025, at 10:00 a.m. Eastern time to discuss the quarter. Individuals may access the call by dialing 877-550-1505 (U.S./Canada) and 0800-524-4760 (International). An audio replay will be available for one week following the call at 800-645-7964, access code 3895#. For additional financial and statistical information regarding the Company that is expected to be discussed during the conference call, please visit our website at www.covenantlogistics.com/investors under the icon "Earnings Info."

Covenant Logistics Group, Inc., through its subsidiaries, offers a portfolio of transportation and logistics services to customers throughout the United States. Primary services include asset- based expedited and dedicated truckload capacity, as well as asset-light warehousing, transportation management, and freight brokerage capability. In addition, Transport Enterprise Leasing is an affiliated company providing revenue equipment sales and leasing services to the trucking industry. Covenant's Class A common stock is traded on the New York Stock Exchange under the symbol, "CVLG."

<sup>(1)</sup> See GAAP to Non-GAAP Reconciliation in the schedules included with this release. In addition to operating income, segment operating income, operating ratio, segment operating income, net income, and earnings per diluted share, we use adjusted operating income, adjusted segment operating income, adjusted operating ratio, adjusted segment operating ratio, adjusted net income, and adjusted earnings per diluted share, non-GAAP measures, as key measures of profitability. Adjusted operating income, adjusted segment operating income, adjusted operating ratio, adjusted segment operating ratio, adjusted net income, and adjusted earnings per diluted share are not substitutes for operating income, segment operating income, operating ratio, segment operating income, net income, and earnings per diluted share measured in accordance with GAAP. There are limitations to using non-GAAP financial measures. We believe our presentation of these non-GAAP financial measures are useful because it provides investors and securities analysts with supplemental information that we use internally for purposes of assessing profitability. Further, our Board and management use non-GAAP operating income, segment operating income, operating ratio, segment operating income, net income, and earnings per diluted share measures on a supplemental basis to remove items that may not be an indicator of performance from period-to-period. Although we believe that adjusted operating income, adjusted segment operating income, adjusted operating ratio, adjusted segment operating ratio, adjusted net income, and adjusted earnings per diluted share improves comparability in analyzing our period-to-period performance, they could limit comparability to other companies in our industry, if those companies define such measures differently. Because of these limitations, adjusted operating income, adjusted segment operating income, adjusted operating ratio, adjusted segment operating ratio, adjusted net income, and adjusted earnings per diluted share should not be considered measures of income generated by our business or discretionary cash available to us to invest in the growth of our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis.

------

For further information contact:

M. Paul Bunn, President

PBunn@covenantlogistics.com

Tripp Grant, Chief Financial Officer

TGrant@covenantlogistics.com

For copies of Company information contact:

Brooke McKenzie, Executive Administrative Assistant

BMcKenzie@covenantlogistics.com

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Covenant Logistics Group, Inc.** | **Covenant Logistics Group, Inc.** | **Covenant Logistics Group, Inc.** | **Covenant Logistics Group, Inc.** | **Covenant Logistics Group, Inc.** | **Covenant Logistics Group, Inc.** | **Covenant Logistics Group, Inc.** |
| **Key Financial and Operating Statistics** | **Key Financial and Operating Statistics** | **Key Financial and Operating Statistics** | **Key Financial and Operating Statistics** | **Key Financial and Operating Statistics** | **Key Financial and Operating Statistics** | **Key Financial and Operating Statistics** |
|  | **Income Statement Data** | **Income Statement Data** | **Income Statement Data** | **Income Statement Data** | **Income Statement Data** | **Income Statement Data** |
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **($s in 000s, except per share data)** | **2025** | **2024** | **% Change** | **2025** | **2024** | **% Change** |
| Revenues |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Freight revenue | $**276532** | $**256512** | 7.8<br>**%** | $**519751** | $**504197** | 3.1<br>**%** |
| &nbsp;&nbsp;&nbsp;&nbsp; Fuel surcharge revenue | 26322 | 30985 | (15.0<br> %) | 52458 | 62063 | (15.5<br> %) |
| Total revenue | $302854 | $287497 | 5.3% | $572209 | $566260 | 1.1% |
| Operating expenses: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Salaries, wages, and related expenses | 109148 | 106373 |  | 214100 | 206708 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Fuel expense | 27989 | 29093 |  | 56157 | 60045 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Operations and maintenance | 17066 | 15552 |  | 32816 | 29148 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Revenue equipment rentals and purchased transportation | 76791 | 62755 |  | 133596 | 129506 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating taxes and licenses | 3436 | 2283 |  | 7022 | 5644 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance and claims | 17307 | 17148 |  | 32590 | 32538 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Communications and utilities | 1481 | 1272 |  | 2949 | 2675 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; General supplies and expenses | 14657 | 14477 |  | 28252 | 35307 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 23121 | 22130 |  | 44916 | 43238 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Loss on disposition of property and equipment, net | 295 | 837 |  | 621 | 1539 |  |
| Total operating expenses | 291291 | 271920 |  | 553019 | 546348 |  |
| Operating income | 11563 | 15577 |  | 19190 | 19912 |  |
| Interest expense, net | 2470 | 3799 |  | 5327 | 7137 |  |
| Income from equity method investment | (4268) | (4094) |  | (8044) | (7770) |  |
| Income from continuing operations before income taxes | 13361 | 15872 |  | 21907 | 20545 |  |
| Income tax expense | 3521 | 3828 |  | 5504 | 4677 |  |
| Income from continuing operations | 9840 | 12044 |  | 16403 | 15868 |  |
| Income from discontinued operations, net of tax | - | 150 |  | - | 300 |  |
| Net income | $9840 | $12194 |  | $16403 | $16168 |  |
| **Basic earnings per share <sup>(1)</sup>** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Income from continuing operations | $0.38 | $0.46 |  | $0.62 | $0.60 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Income from discontinued operations | $- | $0.01 |  | $- | $0.01 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income per basic share | $0.38 | $0.46 |  | $0.62 | $0.62 |  |
| **Diluted earnings per share <sup>(1)</sup>** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Income from continuing operations | $0.36 | $0.44 |  | $0.60 | $0.57 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Income from discontinued operations | $- | $0.01 |  | $- | $0.01 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income per diluted share | $0.36 | $0.44 |  | $0.60 | $0.59 |  |
| Basic weighted average shares outstanding (000s) | 26041 | 26292 |  | 26295 | 26234 |  |
| Diluted weighted average shares outstanding (000s) | 27228 | 27662 |  | 27564 | 27604 |  |

---

(1) Total may not sum due to rounding.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Segment Freight Revenues** | **Segment Freight Revenues** | **Segment Freight Revenues** | **Segment Freight Revenues** | **Segment Freight Revenues** | **Segment Freight Revenues** |
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **($s in 000's)** | **2025** | **2024** | **% Change** | **2025** | **2024** | **% Change** |
| Expedited - Truckload | $83229 | $88918 | (6.4%) | $163478 | $175518 | (6.9%) |
| Dedicated - Truckload | 90166 | 81853 | 10.2% | 172246 | 154448 | 11.5% |
| &nbsp;&nbsp;&nbsp;&nbsp; Combined Truckload | 173395 | 170771 | 1.5% | 335724 | 329966 | 1.7% |
| Managed Freight | 77550 | 60366 | 28.5% | 134400 | 123283 | 9.0% |
| Warehousing | 25587 | 25375 | 0.8% | 49627 | 50948 | (2.6%) |
| &nbsp;&nbsp;&nbsp;&nbsp; Consolidated Freight Revenue | $276532 | $256512 | 7.8% | $519751 | $504197 | 3.1% |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Truckload Operating Statistics** | **Truckload Operating Statistics** | **Truckload Operating Statistics** | **Truckload Operating Statistics** | **Truckload Operating Statistics** | **Truckload Operating Statistics** |
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **% Change** | **2025** | **2024** | **% Change** |
| Average freight revenue per loaded mile | $2.96 | $2.73 | 8.4% | $2.97 | $2.70 | 10.0% |
| Average freight revenue per total mile | $2.52 | $2.38 | 5.9% | $2.52 | $2.37 | 6.3% |
| Average freight revenue per tractor per week | $5543 | $5726 | (3.2%) | $5480 | $5688 | (3.7%) |
| Average miles per tractor per period | 28620 | 31270 | (8.5%) | 56146 | 62459 | (10.1%) |
| Weighted avg. tractors for period | 2406 | 2294 | 4.9% | 2369 | 2231 | 6.2% |
| Tractors at end of period | 2401 | 2314 | 3.8% | 2401 | 2314 | 3.8% |
| Trailers at end of period | 6639 | 6314 | 5.1% | 6639 | 6314 | 5.1% |

---

------

---

| | | |
|:---|:---|:---|
|  | **Selected Balance Sheet Data** | **Selected Balance Sheet Data** |
| **($s in '000's, except per share data)** | **6/30/2025** | **12/31/2024** |
| Total assets | $1009092 | $997768 |
| Total stockholders' equity | $416874 | $438340 |
| Total indebtedness, comprised of total debt and finance leases, net of cash | $268694 | $219620 |
| Net Indebtedness to Capitalization Ratio | 39.2% | 33.4% |
| Leverage Ratio<sup>(1)</sup> | 2.02 | 1.65 |
| Tangible book value per end-of-quarter basic share | $9.65 | $10.17 |

---

(1) Leverage Ratio is calculated as total indebtedness, comprised of total debt and finance leases, net of cash, divided by the trailing twelve months
 sum of operating income, depreciation and amortization, and gain on disposition of property and equipment, net.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Covenant Logistics Group, Inc.** | **Covenant Logistics Group, Inc.** | **Covenant Logistics Group, Inc.** | **Covenant Logistics Group, Inc.** | **Covenant Logistics Group, Inc.** | **Covenant Logistics Group, Inc.** | **Covenant Logistics Group, Inc.** |
| **Non-GAAP Reconciliation (Unaudited)** | **Non-GAAP Reconciliation (Unaudited)** | **Non-GAAP Reconciliation (Unaudited)** | **Non-GAAP Reconciliation (Unaudited)** | **Non-GAAP Reconciliation (Unaudited)** | **Non-GAAP Reconciliation (Unaudited)** | **Non-GAAP Reconciliation (Unaudited)** |
| **Adjusted Operating Income and Adjusted Operating Ratio<sup>(1)</sup>** | **Adjusted Operating Income and Adjusted Operating Ratio<sup>(1)</sup>** | **Adjusted Operating Income and Adjusted Operating Ratio<sup>(1)</sup>** | **Adjusted Operating Income and Adjusted Operating Ratio<sup>(1)</sup>** | **Adjusted Operating Income and Adjusted Operating Ratio<sup>(1)</sup>** | **Adjusted Operating Income and Adjusted Operating Ratio<sup>(1)</sup>** | **Adjusted Operating Income and Adjusted Operating Ratio<sup>(1)</sup>** |
| ***(Dollars in thousands)*** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **GAAP Presentation** | **2025** | **2024** | **bps Change** | **2025** | **2024** | **bps Change** |
| Total revenue | $**302854** | $**287497** |  | $**572209** | $**566260** |  |
| Total operating expenses | 291291 | 271920 |  | 553019 | 546348 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating income | $11563 | $15577 |  | $19190 | $19912 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating ratio | 96.2% | 94.6% | 160 | 96.6% | 96.5% | 10 |
| **Non-GAAP Presentation** | **2025** | **2024** | **bps Change** | **2025** | **2024** | **bps Change** |
| Total revenue | $**302854** | $**287497** |  | $**572209** | $**566260** |  |
| Fuel surcharge revenue | (26322) | (30985) |  | (52458) | (62063) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Freight revenue (total revenue, excluding fuel surcharge) | 276532 | 256512 |  | 519751 | 504197 |  |
| Total operating income | 11563 | 15577 |  | 19190 | 19912 |  |
| Adjusted for: |  |  |  |  |  |  |
| Amortization of intangibles <sup>(2)</sup> | 2746 | 2373 |  | 5117 | 4744 |  |
| Contingent consideration liability adjustment | 710 | 720 |  | 1420 | 8814 |  |
| Transaction costs | - | - |  | 149 | - |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjusted operating income | 15019 | 18670 |  | 25876 | 33470 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjusted operating ratio | 94.6% | 92.7% | 190 | 95.0% | 93.4% | 160 |

---

(1) Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP operating income and operating ratio to consolidated non-GAAP
 adjusted operating income and adjusted operating ratio.

(2) "Amortization of intangibles" reflects the non-cash amortization expense relating to intangible assets.

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br> **Non-GAAP Reconciliation (Unaudited)**<br> **Adjusted Net Income and Adjusted EPS<sup>(1)</sup>** | <br> **Non-GAAP Reconciliation (Unaudited)**<br> **Adjusted Net Income and Adjusted EPS<sup>(1)</sup>** | <br> **Non-GAAP Reconciliation (Unaudited)**<br> **Adjusted Net Income and Adjusted EPS<sup>(1)</sup>** | <br> **Non-GAAP Reconciliation (Unaudited)**<br> **Adjusted Net Income and Adjusted EPS<sup>(1)</sup>** | <br> **Non-GAAP Reconciliation (Unaudited)**<br> **Adjusted Net Income and Adjusted EPS<sup>(1)</sup>** |
| ***(Dollars in thousands)*** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **GAAP Presentation - Net income** | $9840 | $12194 | $16403 | $16168 |
| Adjusted for: |  |  |  |  |
| Amortization of intangibles <sup>(2)</sup> | 2746 | 2373 | 5117 | 4744 |
| Discontinued operations reversal of loss contingency <sup>(3)</sup> | - | (200) | - | (400 |
| Contingent consideration liability adjustment | 710 | 720 | 1420 | 8814 |
| Transaction costs | - | - | 149 | - |
| Total adjustments before taxes | 3456 | 2893 | 6686 | 13158 |
| Provision for income tax expense at effective rate | (881) | (635) | (1705) | (3357 |
| Tax effected adjustments | $2575 | $2258 | $4981 | $9801 |
| **Non-GAAP Presentation - Adjusted net income** | $12415 | $14452 | $21384 | $25969 |
| GAAP Presentation - Diluted earnings per share ("EPS") <sup>(4)</sup> | $0.36 | $0.44 | $0.60 | $0.59 |
| Adjusted for: |  |  |  |  |
| Amortization of intangibles <sup>(2)</sup> | 0.10 | 0.09 | 0.19 | 0.17 |
| Discontinued operations reversal of loss contingency<sup>(3)</sup> | - | (0.01) | - | (0.02 |
| Contingent consideration liability adjustment | 0.03 | 0.02 | 0.05 | 0.32 |
| Transaction costs | - | - | 0.01 | - |
| Total adjustments before taxes | 0.13 | 0.10 | 0.25 | 0.47 |
| Provision for income tax expense at effective rate | (0.04) | (0.02) | (0.07) | (0.12 |
| Tax effected adjustments | $0.09 | $0.08 | $0.18 | $0.35 |
| Non-GAAP Presentation - Adjusted EPS | $0.45 | $0.52 | $0.78 | $0.94 |

---

(1) Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP net income to consolidated non-GAAP adjusted net income and
 consolidated GAAP diluted earnings per share to non-GAAP consolidated Adjusted EPS.

(2) "Amortization of intangibles" reflects the non-cash amortization expense relating to intangible assets.

(3) "Discontinued Operations reversal of loss contingency" reflects the non-cash reversal of a previously recorded loss contingency that is no longer
 considered probable. The original loss contingency was recorded in Q4 2020 as a result of our disposal of our former accounts receivable factoring segment, TFS.

(4) Total may not sum due to rounding.

------

---

| |
|:---|
| **Covenant Logistics Group, Inc** |
| **Non-GAAP Reconciliation (Unaudited)** |
| **Adjusted Operating Income and Adjusted Operating Ratio <sup>(1)</sup>** |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(Dollars in thousands)*** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** |
| **GAAP Presentation** | **2025** | **2025** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | Expedited | Dedicated | Combined Truckload | Managed Freight | Warehousing | Expedited | Dedicated | Combined Truckload | Managed Freight | Warehousing |
| Total revenue | $**97300** | $**102277** | $**199577** | $**77550** | $**25727** | $**108010** | $**93465** | $**201475** | $**60366** | $**25656** |
| Total segment operating expenses <sup>(2)</sup> | 89834 | 96064 | 185898 | 73088 | 23811 | 95179 | 81159 | 176338 | 56558 | 22761 |
| Segment operating income <sup>(2)</sup> | $7466 | $6213 | $13679 | $4462 | $1916 | $12831 | $12306 | $25137 | $3808 | $2895 |
| Segment operating ratio <sup>(2)</sup> | 92.3% | 93.9% | 93.1% | 94.2% | 92.6% | 88.1% | 86.8% | 87.5% | 93.7% | 88.7% |
| **Non-GAAP Presentation** |  |  |  |  |  |  |  |  |  |  |
| Total revenue | $**97300** | $**102277** | $**199577** | $**77550** | $**25727** | $**108010** | $**93465** | $**201475** | $**60366** | $**25656** |
| Fuel surcharge revenue | (14071) | (12111) | (26182) | - | (140) | (19092) | (11612) | (30704) | - | (281) |
| Freight revenue (total revenue, excluding fuel surcharge) | 83229 | 90166 | 173395 | 77550 | 25587 | 88918 | 81853 | 170771 | 60366 | 25375 |
| Total segment operating income <sup>(2)</sup> | $7466 | $6213 | 13679 | $4462 | $1916 | $12831 | $12306 | 25137 | $3808 | $2895 |
| Adjusted for: |  |  |  |  |  |  |  |  |  |  |
| Other <sup>(3)</sup> | (2389) | (1700) | (4089) | (291) | (658) | (7529) | (4820) | (12349) | (214) | (607) |
| Adjusted segment operating income | 5077 | 4513 | 9590 | 4171 | 1258 | 5302 | 7486 | 12788 | 3594 | 2288 |
| Adjusted segment operating ratio | 93.9% | 95.0% | 94.5% | 94.6% | 95.1% | 94.0% | 90.9% | 92.5% | 94.0% | 91.0% |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **GAAP Presentation** | **2025** | **2025** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | Expedited | Dedicated | Combined Truckload | Managed Freight | Warehousing | Expedited | Dedicated | Combined Truckload | Managed Freight | Warehousing |
| Total revenue | $**191993** | $**195886** | $**387879** | $**134400** | $**49930** | $**213481** | $**177947** | $**391428** | $**123283** | $**51549** |
| Total segment operating expenses <sup>(2)</sup> | 178937 | 187626 | 366563 | 126398 | 46170 | 189782 | 157318 | 347100 | 116745 | 45763 |
| Segment operating income <sup>(2)</sup> | $13056 | $8260 | $21316 | $8002 | $3760 | $23699 | $20629 | $44328 | $6538 | $5786 |
| Segment operating ratio <sup>(2)</sup> | 93.2% | 95.8% | 94.5% | 94.0% | 92.5% | 88.9% | 88.4% | 88.7% | 94.7% | 88.8% |
| **Non-GAAP Presentation** |  |  |  |  |  |  |  |  |  |  |
| Total revenue | $**191993** | $**195886** | $**387879** | $**134400** | $**49930** | $**213481** | $**177947** | $**391428** | $**123283** | $**51549** |
| Fuel surcharge revenue | (28515) | (23640) | (52155) | - | (303) | (37963) | (23499) | (61462) | - | (601) |
| Freight revenue (total revenue, excluding fuel surcharge) | 163478 | 172246 | 335724 | 134400 | 49627 | 175518 | 154448 | 329966 | 123283 | 50948 |
| Total segment operating income <sup>(2)</sup> | $13056 | $8260 | $21316 | $8002 | $3760 | $23699 | $20629 | $44328 | $6538 | $5786 |
| Adjusted for: |  |  |  |  |  |  |  |  |  |  |
| Other <sup>(3)</sup> | (3325) | (2341) | (5666) | (482) | (1203) | (13080) | (8431) | (21511) | (411) | (1260) |
| Transaction costs | - | 149 | 149 | - | - | - | - | - | - | - |
| Adjusted segment operating income | 9731 | 6068 | 15799 | 7520 | 2557 | 10619 | 12198 | 22817 | 6127 | 4526 |
| Adjusted segment operating ratio | 94.0% | 96.5% | 95.3% | 94.4% | 94.8% | 93.9% | 92.1% | 93.1% | 95.0% | 91.1% |

---

(1) Pursuant to the requirements of Regulation G, this table reconciles consolidated GAAP segment operating income and segment operating ratio to
 consolidated non-GAAP adjusted segment operating income and adjusted segment operating ratio.

(2) Segment operating expenses, segment operating income, and segment operating ratio exclude indirect costs not directly attributable to any one
 reportable segment, amortization of intangible assets, and contingent consideration liability adjustments to match the information our Chief Operating Decision Maker uses to evaluate the operating results of our reportable segments. The
 prior year periods have been conformed to this presentation.

(3) Represents indirect costs not directly attributable to any one reportable segment, amortization of intangible assets, and contingent consideration
 liability adjustments.

[<u>Back to Form 8-K</u>](form8k.htm)<br>