Two of the largest shareholders of Chattanooga TN-based truckload carrier Covenant Transport think the time is right to sell more than two million shares of stockÑlargely because Covenant's financial position has markedly improved this year.
This 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 chief executive officer; 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 with third-quarter 2002. For the first nine months of 2003, Covenant's net income rose 63.5% to $8.1 million, and revenue climbed 3% to $430.3 million versus the same period a year ago.