Covenant Logistics Group, Inc. (NASDAQ:CVLG) (“Covenant” or the “Company”) announced today that it has agreed to sell a California terminal for approximately $44.0 million, as well as the declaration of a quarterly cash dividend of $0.08 per share of common stock.
Real Estate Sale
The Company has agreed to sell a California terminal for approximately $44.0 million in cash net of transaction costs. The buyer has paid a $2.0 million deposit on the property that is non-refundable, subject to limited exceptions. The transaction is expected to close by the end of the third quarter, subject to customary conditions. The Company expects to record a pretax gain on sale of property of approximately $37.5 million. The Company anticipates relocating personnel and equipment to other locations and lowering operating expenses associated with Southern California by approximately $500,000 annually with no disruption in service. Â
