CHATTANOOGA, TN – Covenant Logistics Group, Inc. (NYSE:CVLG), a leader in the trucking industry, disclosed the upcoming retirement of Samuel F. Hough, the company’s Executive Vice President – Expedited Operations, in a recent 8-K filing with the Securities and Exchange Commission. Mr. Hough will step down from his current role effective December 31, 2024, and will transition to a part-time position focusing on customer development and retention.
The announcement, made public on Monday, follows Mr. Hough's notification to the board of directors on December 27, 2024, regarding his decision to retire. His new role will come with an adjusted annualized base salary of $220,000, effective January 1, 2025. This change was approved by the company's Compensation Committee in conjunction with his retirement. The company has maintained strong financial performance, with InvestingPro data showing a healthy gross profit margin of 23.4% and revenue of $1.13 billion in the last twelve months.
With an overall Financial Health Score of "FAIR" according to InvestingPro, which offers comprehensive analysis of 1,400+ US stocks through its Pro Research Reports, David Parker, the Chief Executive Officer and Chairman of the Board of Covenant Logistics, commented on the transition, acknowledging Mr. Hough's significant contributions to the company over the past decade, especially in the Expedited operations segment. "I want to thank Sam for his decade of leadership, particularly in our legacy Expedited operations," said Parker. "Sam has always been focused on serving our existing customer and building new customers. I look forward to continuing to work with Sam as he transitions into his new role at Covenant."
The filing did not indicate a successor for Mr. Hough's current position but highlighted the company's intention to retain his expertise in a reduced capacity to maintain and grow its customer base.
Covenant Logistics, headquartered at 400 Birmingham Highway, Chattanooga, TN, operates under the trucking (no local) [4213] Standard Industrial Classification. The company, formerly known as Covenant Transport Inc. and Covenant Transportation Group (NASDAQ:CVLG) Inc., has seen several evolutions since its name change in 1994 and 2007, respectively.
The company's strong fundamentals are reflected in its P/E ratio of 16.7 and return on equity of 10%, with analysts maintaining positive forecasts for future profitability. For deeper insights into CVLG's valuation and growth prospects, investors can access exclusive analysis and additional ProTips through InvestingPro.
This news is based on information provided by Covenant Logistics Group, Inc. in a recent SEC filing.
In other recent news, Covenant Logistics Group reported a steady growth in its third-quarter earnings for 2024. The company's consolidated freight revenue increased by 2.1% year-over-year, reaching $258.6 million, while its adjusted operating income rose by 8.3% to $19.3 million. Despite challenges in its Expedited segment, the company's Dedicated segment led the growth.
Covenant Logistics is also focusing on operational improvements and rate increases, with management anticipating 2% to 3% rate increases in the upcoming bid season. The company's net indebtedness decreased by $36.6 million to $236.7 million, highlighting its financial health.
In other developments, TD Cowen maintained a positive outlook on the company, adjusting the price target to $69 from the previous $70. The firm reaffirmed its Buy rating on Covenant Logistics stock, highlighting the company's ability to generate free cash flow that could support debt reduction or potential mergers and acquisitions.
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