Covenant Transportation Group, Inc. (CVTI) has reported a 54.78 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $5.98 million, or $0.33 a share in the quarter, compared with $13.23 million, or $0.73 a share for the same period last year.

Revenue during the quarter dropped 8.21 percent to $190.98 million from $208.06 million in the previous year period. Gross margin for the quarter contracted 202 basis points over the previous year period to 79.71 percent. Total expenses were 93.58 percent of quarterly revenues, up from 88.30 percent for the same period last year. That has resulted in a contraction of 527 basis points in operating margin to 6.42 percent.

Operating income for the quarter was $12.27 million, compared with $24.34 million in the previous year period.

Chairman, and Chief Executive Officer, David R. Parker, made the following comments: "The trucking environment in the fourth quarter improved sequentially compared with the third quarter of 2016. The peak freight season was more condensed than in 2015 as rapidly growing e-commerce sales continue to compress the holiday inventory stocking and delivery season. This year, the pace of freight and need for our value-added expedited services was concentrated largely between the week of Thanksgiving through Christmas Day, which was shorter than the past two peak seasons."