Two of the largest shareholders of Chattanooga, TN-based truckload carrier Covenant Transport think the time is right to sell over two million shares of stock – largely because Covenant’s financial position has markedly improved this year.
The offering, priced at $19.50 a share, involves one million shares owned by David and Jacqueline Parker and another million owned by Clyde Fuller. David Parker is Covenant’s chairman, president, and CEO, and Fuller is his stepfather. The sale is being underwritten by Bear, Stearns & Co., Stephens Inc., and BB&T Capital Markets.
The stock sale comes at time of improving fiscal health for Covenant. Its third quarter earnings jumped 12.1% to $4.1 million and revenue increased 3.7% to $146.5 million compared to the third quarter in 2002. For the first nine months of 2003, Covenant’s net income rose 63.5% to $8.1 million and revenue increased 3% to $430.3 million compared to the same period last year.