Nevada		88-0320154
(State or other jurisdiction of incorporation		(I.R.S. Employer Identification No.)
or organization)
400 Birmingham Hwy.
Chattanooga, TN		37419
(Address of principal executive offices)		(Zip Code)

 

 

PART I FINANCIAL INFORMATION
		Page Number
Item 1.	Financial Statements
	Consolidated Balance Sheets as of March 31, 2005 (Unaudited) and December 31, 2004	3
	Consolidated Statements of Operations for the three months ended March 31, 2005 and 2004 (Unaudited)	4
	Consolidated Statements of Cash Flows for the three months ended March 31, 2005 and 2004 (Unaudited)	5
	Notes to Consolidated Financial Statements (Unaudited)	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	11
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	23
Item 4.	Controls and Procedures	24
PART II OTHER INFORMATION
		Page Number
Item 1.	Legal Proceedings	25
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25
Item 6.	Exhibits	26

COVENANT TRANSPORT, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data)
		March 31, 2005			December 31, 2004
ASSETS		(unaudited)
Current assets:
Cash and cash equivalents		$	1,459		$	5,066
Accounts receivable, net of allowance of $1,800 in 2005 and $1,700 in 2004			61,189			74,127
Drivers advances and other receivables			5,458			7,400
Inventory and supplies			3,829			3,581
Prepaid expenses			11,943			11,643
Deferred income taxes			19,832			19,832
Income taxes receivable			5,689			5,689
Total current assets			109,399			127,338
Property and equipment, at cost			296,474			298,389
Less accumulated depreciation and amortization			(84,314	)		(88,967	)
Net property and equipment			212,160			209,422
Other assets			26,029			23,266
Total assets		$	347,588		$	360,026
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt			9			9
Securitization facility			40,281			44,148
Accounts payable			10,752			6,574
Accrued expenses			13,649			15,253
Insurance and claims accrual			49,347			46,200
Total current liabilities			114,038			112,184
Long-term debt, less current maturities			10			8,013
Deferred income taxes			43,530			44,130
Total liabilities			157,578			164,327
Commitments and contingent liabilities
Stockholders' equity:
Class A common stock, $.01 par value; 20,000,000 shares authorized; 13,447,608 and 13,421,527 shares issued;    12,030,008 and 12,323,927 outstanding as of March 31, 2005 and December 31, 2004, respectively			130			134
Class B common stock, $.01 par value; 5,000,000 shares authorized; 2,350,000 shares issued and outstanding    as of March 31, 2005 and December 31, 2004			24			24
Additional paid-in-capital			91,530			91,058
Treasury Stock at cost; 1,417,600 and 1,097,600 shares as of March 31, 2005 and December 31, 2004, respectively			(15,434	)		(9,925	)
Retained earnings			113,760			114,408
Total stockholders' equity			190,010			195,699
Total liabilities and stockholders' equity		$	347,588		$	360,026

		Three months ended March 31, (unaudited)
		2005			2004
Freight revenue		$	123,570		$	130,590
Fuel surcharges			14,356			7,077
Total revenue		$	137,926		$	137,667
Operating expenses:
Salaries, wages, and related expenses			53,946			51,958
Fuel expense			33,491			27,551
Operations and maintenance			7,228			7,711
Revenue equipment rentals and purchased transportation			15,360			18,564
Operating taxes and licenses			3,339			3,479
Insurance and claims			8,834			8,265
Communications and utilities			1,639			1,781
General supplies and expenses			4,150			3,497
Depreciation and amortization, including gains (losses) on disposition of equipment			9,663			11,803
Total operating expenses			137,650			134,609
Operating income			276			3,058
Other (income) expenses:
Interest expense			614			608
Interest income			(44	)		(11	)
Other			(236	)		20
Other expenses, net			334			617
Income (loss) before income taxes			(58	)		2,441
Income tax expense			591			1,720
Net income (loss)		$	(649	)	$	721
Earnings (loss) per share: