Truckload and logistics provider Celadon Group Inc. said yesterday it has been given until next May 2 to file financial statements with the Securities and Exchange Commission (SEC) covering the company's annual results for fiscal 2016 and 2017, and quarterly results for a nine-month period between September 2016 and January 2017.
The SEC extension means Celadon's common shares will continue trading on the New York Stock Exchange, according to the Indianapolis-based company. Under rules set by the Exchange, a stock delisting process would be initiated if the share price closed below $1.00 a share for 30 consecutive trading days.
The price of Celadon stock dropped below $2 a share in May, after it projected a $10 million operating loss in its fiscal 2017 third quarter ending on March 31 and delayed issuing its quarterly results after disclosing that financial statements for the six quarters ending last Dec. 31 should not be relied upon.
Since hitting multi-year lows in May, Celadon's stock price has climbed to $7.35 a share, its highest level since early spring.
Celadon, the seventh-largest truckload carrier in the U.S., has blamed its financial troubles on poor management of its core truckload business, in particular the handling of its relationship with owner-operator drivers. Celadon's finances were also thrown into question by an unprofitable joint venture involving its truck-leasing division.
The disclosures triggered a dramatic reshuffling in Celadon's executive management ranks. Eric Meek, Celadon's former president and COO, resigned in the wake of the results. Jon Russell, son of Steve Russell, Celadon's late founder, was named president and COO and was put in charge of all trucking operations. Douglas Schmidt, who had been president and chief operating officer of one of Celadon's subsidiaries, was tapped to oversee the company's truckload division. In July, industry veteran Paul Svindland was named CEO, replacing Paul Will, who retired a few days later as chairman and CEO.