Celadon Group Engages Former Swift Transportation CEO, Richard Stocking, as Chief Transformation Officer

DPX Consulting, founded by Stocking, will oversee U.S. Truckload turnaround

Celadon Group, Inc. has engaged DPX Consulting LLC and that Richard Stocking, DPX founder and former CEO of Swift Transportation Company, will serve as Chief Transformation Officer of the Celadon Trucking Services, Inc., the Company’s primary U.S truckload business (“Celadon Trucking”).

Company Commentary
Chief Executive Officer, Paul Svindland, commented: “We are excited to have Richard Stocking and the entire DPX team working with us to accelerate needed improvements in our U.S. Truckload business.  DPX brings Richard’s decades of experience with Swift as well as the deep analytical and front-line operations capability of two other seasoned truckload executives. All are veterans at instilling sales and operating discipline, accountability, and a winning culture.  With the recent closing of our refinancing, we are laser-focused on returning to profitable operations, and we expect DPX to help us achieve a rapid and resilient pace of change. We especially appreciate Richard’s personal commitment to our turnaround, evidenced by accepting the role of Chief Transformation Officer.  This vote of confidence by an industry leader shows how far the organization has come over the past several quarters and is inspiring to our people.”

DPX Commentary
“Celadon is a respected player in the North American supply chain.  We have studied the Company for several months and are convinced of the inherent potential of the franchise. We plan to work with Celadon’s leaders to adopt proven methods that enhance efficiency, set clear and measurable goals, and empower people through ownership of their results.  Not only will performance improve, the entire organization will be energized by creating a winning culture.  I’m looking forward to working with Paul and the team as we roll out the program through every part of the business.”

Consulting Agreement Highlights
The Company and DPX have entered into a Consulting Agreement under which DPX will provide broad-based management services overseeing Celadon Trucking.  The business, with a run rate of approximately $400 million in annual revenue, comprises approximately 75% of consolidated revenue and offers the Company’s largest opportunity for earnings improvement. Highlights of the agreement include the following:

• DPX will oversee sales, operations, and maintenance for Celadon Trucking and will provide customer and vendor introductions and support as needed
• Richard Stocking will provide primary leadership of the Celadon Trucking team
• Compensation includes an incentive component linked to achievement of progressively improving operating margin benchmarks

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