Day: July 22, 2021

CVLG – Covenant sees ‘demand firing on all cylinders'

Covenant Logistics Group (NASDAQ: CVLG) reported adjusted second-quarter earnings of 96 cents per share after the close Wednesday, ahead of the consensus estimate of 67 cents per share. Adjusted net income was $16.3 million compared to just north of $400,000 in the year-ago quarter.

The quarterly result was the best in the company’s history.

“In the second quarter, we saw freight market demand firing on all cylinders as a result of growing economic activity, low inventories, and supply chain disruptions, accompanied by constrained supply due to an intensifying national driver shortage,” said David Parker, chairman and CEO, in a press release. “These conditions have continued into the third quarter.”

The Chattanooga, Tennessee-based carrier’s combined truckload fleet saw revenue excluding fuel surcharges increase 8.5% year-over-year as revenue per tractor per week increased 24.8% to $4,551 partially offset by a 13.1% decline in average tractor count at 2,451 units. The increase in revenue per tractor was driven by a 10.1% lift in revenue per loaded mile excluding fuel ($2.24) and a 13.9% increase in miles per tractor.

The year-over-year comparisons are to the second quarter of 2020, which was severely impacted by COVID protocols and widespread shutdowns.

The fleet reduction is part of the company’s efforts to focus more on its dedicated and expedited offerings versus less profitable operations like solo-driven refrigerated, which it has exited, and one-way irregular routes.

The TL segment posted a 92.7% adjusted operating ratio, 730 basis points better year-over-year. The salaries, wages and benefits line declined 450 bps as a percentage of revenue, but rent and purchased transportation expenses increased 490 bps as capacity remains very tight and rates have increased.

“Although we are pleased with these results, we recognize the opportunity for further improvement, particularly in our Dedicated segment,” Parker added. “In the short run, this means continuing to improve rates and contractual terms with customers who are not yielding the level of consistent profit we expect from this segment of the business, and in the long run, this means holding ourselves accountable for improved margins and returns across all aspects of our business.”

Covenant’s dedicated segment operated at a slim operating profit, posting a 99.4% adjusted OR, 190 bps better year-over-year.

The company will host a call at 10 a.m. on Thursday to discuss second-quarter results with analysts.

Click for more FreightWaves articles by Todd Maiden.

TCON – TRACON Pharmaceuticals Increases Previously Announced Bought Deal Offering of Common Stock to $15.0 Million

SAN DIEGO, July 21, 2021 (GLOBE NEWSWIRE) — TRACON Pharmaceuticals (NASDAQ: TCON) (“TRACON” or the “Company”), a clinical stage biopharmaceutical company focused on the development and commercialization of novel targeted cancer therapeutics, today announced that, due to demand, the underwriter has agreed to increase the size of the previously announced public offering and purchase on a firm commitment basis 3,926,702 shares of common stock of the Company at a price to the public of $3.82 per share, less underwriting discounts and commissions. In addition, the Company has granted the underwriter a 30-day option to purchase up to an additional 589,005 shares of common stock at the public offering price, less underwriting discounts and commissions. The closing of the public offering is expected to occur on or about July 26, 2021, subject to satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the sole book-running manager for the offering.

The gross proceeds of the offering are expected to be approximately $15.0 million, prior to deducting underwriting discounts, commissions and estimated offering expenses and excluding the exercise of the underwriter’s option to purchase additional shares. The Company intends to use the net proceeds from this offering to support the continued clinical development of envafolimab, as well as for working capital and general corporate purposes.

The shares of common stock are being offered pursuant to an effective registration statement on Form S-3 (File No. 333-229990) that was filed with the U.S. Securities and Exchange Commission (“SEC”) on March 1, 2019, as amended, and declared effective on October 8, 2019. The shares of common stock are offered only by means of a prospectus. A preliminary prospectus supplement and accompanying prospectus relating to the offering have been filed with the SEC and are available on the SEC’s website at Electronic copies of the preliminary prospectus supplement and accompanying prospectus relating to the offering, and, when filed, the final prospectus supplement and accompanying prospectus relating to the offering may be obtained from H.C. Wainwright & Co., LLC, 430 Park Avenue, New York, NY 10022, by email at or by phone at (646) 975-6996.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful, prior to registration or qualification under the securities laws of any such state or jurisdiction.


TRACON develops targeted therapies for cancer utilizing a capital efficient, CRO independent, product development platform. The Company’s clinical-stage pipeline includes: Envafolimab, a PD-L1 single-domain antibody given by rapid subcutaneous injection that is being studied in the pivotal ENVASARC trial for sarcoma; TRC102, a Phase 2 small molecule drug candidate for the treatment of lung cancer; and TJ004309, a CD73 antibody in Phase 1 development for the treatment of advanced solid tumors. TRACON is actively seeking additional corporate partnerships whereby it leads U.S. regulatory and clinical development, shares in the cost and risk of clinical development, and leads U.S. commercialization. In these partnerships TRACON believes it can serve as a solution for companies without clinical and commercial capabilities in the United States.

Forward-Looking Statements

Statements made in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward‐looking statements. Such statements include, but are not limited to, statements regarding TRACON’s expectations with respect to the completion of the public offering and the use of proceeds therefrom. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “plans,” “will,” “may,” “expects,” “potential” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon TRACON’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual events or results may differ materially from TRACON’s expectations. Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, risks and uncertainties associated with market and other conditions and the satisfaction of customary closing conditions related to the offering, and those factors disclosed in TRACON’s filings with the SEC, including its Quarterly Report on Form 10-Q for the quarter ended March 31, 2021. All forward‐looking statements contained in this press release speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. TRACON undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

MMAT – MMAT Stock Increased 20.06%: Why It Happened

  • The stock price of Meta Materials Inc (NASDAQ: MMAT) increased 20.06% today. This is why it happened.

The stock price of Meta Materials Inc (NASDAQ: MMAT) increased 20.06% today. Investors are responding positively to Torchlight Energy Resources (NASDAQ: TRCH) — an oil and gas exploration company based in Plano, Texas — announced it has closed on its planned business combination with Meta Materials as part of a $1.9 billion deal. 

And as a result, after the market close today, Torchlight’s name will be changed to Meta Materials. And in addition, the company’s common stock will begin trading on NASDAQ under the ticker symbol MMAT. 

According to the previous announcement — prior to the implementation of the reverse stock split — Meta Materials (NASDAQ: MMAT) shareholders were expected to receive 3.69 shares of Torchlight common stock in exchange for each of their shares of Metamaterial, resulting in Meta Material shareholders owning approximately 75% of the resulting post-merger company. Torchlight’s current portfolio includes assets focused in West and Central Texas where targets are established plays like the Permian Basin. 

Earlier this week, Meta Materials also announced that the company has joined the Stanford University SystemX Alliance industry affiliates program — which provides member companies a highly leveraged and cost-effective method to sponsor pre-competitive collaborative research at Stanford.

The company expects to sponsor basic research conducted at Stanford. And membership will also allow META to connect with students for recruitment, to advertise internship opportunities, to host a TRIP (Technology Research in Progress) visit to a META facility, and to network at workshops and conferences.

George Palikaras, President and CEO/Founder of META, said that this program “enables us to sponsor basic research, either via collaborative teams in focus areas such as photonic, augmented reality, solar and quantum technologies, or by supporting interns and individual students on jointly defined projects. We also look forward to SystemX seminars, conferences and opportunities for networking and communicating with some of the world’s most talented students and faculty.”

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.

CCL – CCL Stock Increased 9.44%: Why It Happened

  • The stock price of Carnival Corp (NYSE: CCL) increased 9.44% today. This is why it happened.

The stock price of Carnival Corp (NYSE: CCL) increased 9.44% today, going from a previous close of $21.19 to $23.19. Investors appear to be responding positively to Carnival announcing that it expects to resume guest cruise operations with 65% of its total fleet capacity by the end of 2021 across 8 of its cruise line brands. And the Carnival Cruise Line has announced plans that envision the brand’s entire fleet returning to service by the end of 2021 — which would further increase Carnival Corporation’s total operating capacity to nearly 75% by the end of the Eight of the company’s nine brands — AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, Princess Cruises, P&O Cruises (UK), and Seabourn – announced plans to resume guest operations on 54 ships to date through the end of 2021 with nearly half of the capacity represented by ships homeported in the U.S. And in addition to those ships previously announced by the company’s brands, Carnival Cruise Line’s intent to return to full fleet service in 2021 would add another 9 vessels, totaling 63 ships to date that are expected to resume guest operations this year. 

More brand restart announcements are expected in coming weeks, including resumption plans for more ships and itineraries for 2021. And collectively, the brands are continuing to resume operations from ports around the world using a gradual phased-in approach, including sailings in the U.S., Caribbean, Europe and Mediterranean along with itineraries planned in Central America and to Antarctica. And the cruises include enhanced health protocols developed in conjunction with government and health authorities, and informed by guidance from the company’s public health, epidemiological and policy experts.


“With strong ongoing demand for cruising, we look forward to serving our guests with additional ships announced across eight of our brands and nearly three-quarters of our fleet capacity returning by the end of this year, marking an important milestone for our company and all those who rely on the strong economic impacts generated by the global cruise industry.” 

“For our entire company, our highest responsibility and top priority is always compliance, environmental protection, and the health, safety and well-being of our guests, our shipboard and shoreside employees, and the communities we visit. Our ongoing restart effort closely reflects those priorities, as we continue to work together across the industry and with partners around the world to resume cruising in the best interest of public health.”

— Roger Frizzell, chief communications officer for Carnival Corporation

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.