Celadon Group, Inc. provides truckload freight transportation in the United States and internationally. The company’s primary services involve point-to-point shipping for major customers within the Unites States, between the United States and Mexico, and between the United States and Canada. The company complements these services with various warehousing, supply chain logistics, tractor leasing, and other services.
Segments
The company operates its business through three segments, Asset Based,...
Celadon Group, Inc. provides truckload freight transportation in the United States and internationally. The company’s primary services involve point-to-point shipping for major customers within the Unites States, between the United States and Mexico, and between the United States and Canada. The company complements these services with various warehousing, supply chain logistics, tractor leasing, and other services.
Segments
The company operates its business through three segments, Asset Based, Asset Light, and Equipment Leasing and Services.
The company’s primary asset based services include the United States domestic dry van, refrigerated, and flatbed service; cross-border service between the United States and each of Mexico and Canada; intra-Mexico and intra-Canada service; contract service; regional and specialized short haul service; and rail intermodal service.
The company’s primary asset light services include freight brokerage, warehousing, less-than truckload consolidation, and supply chain logistics services.
The company, through its Quality Companies subsidiaries, provides tractor leasing and ancillary services to owner-operators who contract with the company or with other trucking companies.
The company’s primary equipment leasing and services include tractor and trailer sales and leasing. This segment also includes revenues from insurance, maintenance, and other ancillary services that the company provides for, or makes available to, independent contractors.
Other Services
Celadon Dedicated Services: The company provides warehousing and dedicated trucking services through Celadon Dedicated Services. Its warehouse facilities are located near its customers' manufacturing plants. The company also transports the manufacturing component parts to its warehouses and sequences those parts for its customers. It then transports completed units from its customers' plants. The company also offers less-than-truckload, intermodal, and refrigerated services to all its customers.
Quality Companies: In 2014, the company entered into a transaction with its third party financing provider, under which it purchases portfolios of independent contractor leases and directly provides financing to its independent contractors. The portfolios were held in the company’s Quality Companies business unit (‘Quality’). Quality diversifies the company’s income stream by providing a suite of ‘tractors under management’ services, which includes tractor purchasing and sales, maintenance, loan and lease servicing, repossession, and other services to independent contractor drivers and their finance providers.
Customers
The company targets large service-sensitive customers with time-definite delivery requirements throughout the United States, Canada, and Mexico. Its customers frequently ship in the north-south lanes (to and from locations in Mexico and locations in the United States and Eastern Canada). The company services approximately 5,000 customers.
Strategy
The company’s strategy includes the following: seeking high yielding freight from targeted industries, customers, regions, and lanes that improves overall network density and diversifying its customer and freight mix; focusing on asset productivity; operating a modern fleet to reduce expenses and improve safety and driver retention; continuing emphasis on service, safety, and technology; maintaining leading position in cross-border truckload shipments while offering diversified, nationwide transportation services in the U.S.; and seeking strategic acquisitions to broaden existing operations.
Seasonality
The company’s third quarter net income historically has been lower than net income in each of the other three quarters of the year, excluding the impact of fuel surcharges. The company’s equipment utilization typically improves substantially between May and October of each year because of seasonal increased shipping and better weather.
Regulations
The company’s operations are regulated and licensed by various United States federal and state, Canadian provincial, and Mexican federal agencies. Interstate motor carrier operations are subject to safety requirements prescribed by the United States Department of Transportation (DOT). Matters such as weight and equipment dimensions are also subject to the United States federal and state regulation and Canadian provincial regulations. The company operates in the United States throughout the 48 contiguous states pursuant to operating authority granted by the DOT, in various Canadian provinces pursuant to operating authority granted by the Ministries of Transportation and Communications in such provinces, and within Mexico pursuant to operating authority granted by Secretaria de Communiciones y Transportes. To the extent that the company conducts operations outside the United States, the company is subject to the Foreign Corrupt Practices Act.
History
Celadon Group, Inc. was founded in 1985. The company was incorporated in 1986.
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