Exhibit 99.3

Unaudited Pro Forma Financial Statements

On September 14, 2006, Covenant Transport, Inc., a Nevada corporation (the "Company"), executed and closed a Stock Purchase Agreement whereby the Company acquired 100% of the outstanding capital stock of Star Transportation, Inc., a Tennessee corporation ("Star") from Beth D. Franklin, David D. Dortch, Rose D. Shipp, David W. Dortch, and James F. Brower, Jr.

The aggregate purchase price for the Star stock was approximately $39 million in cash. The Company funded the purchase price for the stock from available borrowing under its revolving line of credit. In addition, Star had an estimated $42 million in existing debt that became part of the Company's consolidated obligations as a result of the transaction.

The unaudited pro forma balance sheet combines the historical balance sheets of the Company and Star as if the transaction had taken place on June 30, 2006. The unaudited pro forma statements of operations  for the year ended December 31, 2005 and for the six month period ended June 30, 2006 combine the historical statements of operations of the Company and Star as if the transaction had taken place on January 1, 2005. The historical financial information has been adjusted to give effect to pro forma events that are (i) directly attributable to the transaction and (ii) factually supportable. In addition, with respect to the statements of operations, the pro forma events must be expected to have a continuing impact on the combined results.

This information should be read in conjunction with (i) the accompanying notes to the unaudited pro forma financial statements, (ii) the Company’s separate historical audited financial statements as of and for the year ended December 31, 2005, included in its Annual Report on Form 10-K previously filed with the U.S. Securities and Exchange Commission ("SEC"), and (iii) the Company’s separate historical financial information as of and for the six month period ended June 30, 2006, included in its Quarterly Report on Form 10-Q previously filed with the SEC.

The unaudited pro forma financial information is presented for informational purposes only. The pro forma information is not necessarily indicative of what the financial position or results of operations actually would have been had the transaction been completed as of the date indicated. In addition, the unaudited pro forma financial information does not purport to project the future financial position or operating results of the Company after the transaction.

The pro forma adjustments are based on preliminary estimates, available information, and certain assumptions, all as more fully described in the notes to the unaudited pro forma financial statements, and may be revised as additional information becomes available.
 

COVENANT TRANSPORT, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
As of June 30, 2006
(In thousands)
  
           
Pro Forma
Adjustments
          
   
Covenant
Transport
  
Star
Transportation
  
Debit
      
Credit
      
Pro Forma
Combined
  
                               
ASSETS
                              
Current assets:
                              
Cash and cash equivalents
  
$
2,583
  
$
11,246
              
$
12,477
    
(f
)
$
1,352
  
Accounts receivable, net
    
69,678
   
9,806
               
35
   
(d
)
  
79,449
 
Driver advances and other receivables
    
6,693
   
107
                           
6,800
 
Inventory and supplies
    
4,656
   
39
                           
4,695
 
Prepaid expenses
    
12,585
   
1,334
                           
13,919
 
Assets held for sale
    
9,820
   
-
                           
9,820
 
Deferred income taxes
    
16,763
   
106
                           
16,869
 
Income taxes receivable
    
6,008
   
-
                           
6,008
 
Total current assets
    
128,786
   
22,638
                           
138,912
 
                                             
Net property and equipment
    
203,079
   
51,889
   
9,952
   
(b
)
              
264,920
 
                                             
Other assets, net
    
23,825
   
705 
    
23,234
   
(c
)
              
47,764
  
                                             
Total assets
  
$
355,690
  
$
75,232
                          
$
451,596
  
                                             
LIABILITIES AND STOCKHOLDERS' EQUITY
                                            
Current liabilities:
                                            
Current maturities of long-term debt
  
$
-
  
$
5,881
                          
$
5,881
  
Securitization facility
    
47,781
   
-
                           
47,781
 
Accounts payable
    
7,217
   
2,401
                           
9,618
 
Accrued expenses
    
17,613
   
2,695
               
178
   
(d
)
  
20,486
 
Current portion of insurance and claims accrual
    
16,932
   
2,499
               
118
   
(d
)
  
19,549
 
Total current liabilities
    
89,543
   
13,476
                           
103,315
 
                                             
Long-term debt, less current maturities
    
24,000
   
33,469
               
38,973
   
(e
)
  
96,442
 
Insurance and claims accrual, net of current portion
    
19,941
   
-
                           
19,941
 
Deferred income taxes
    
33,494
   
1,061
               
8,631
   
(a
)
  
43,186
 
Total liabilities
    
166,978
   
48,006
                            
262,884
  
                                             
                                             
Stockholders' equity:
                                            
Class A common stock
    
135
   
1
   
1
    (g )         
 
 
  
135
 
Class B common stock
    
24
   
-
                           
24
 
Additional paid-in-capital
    
91,823
   
-
                           
91,823
 
Treasury stock
    
(21,582
)
  
-
                           
(21,582
)
Accumulated other comprehensive income (loss)
    
-
   
383
   
383
                     
-
 
Retained earnings
    
118,312
   
26,842
   
26,842
                     
118,312
 
Total stockholders' equity
    
188,712
   
27,226
                           
188,712
 
Total liabilities and stockholders' equity
  
$
355,690
  
$
75,232
                          
$
451,596
  




COVENANT TRANSPORT, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 2005
(In thousands, except per share data)
  
           
Pro Forma
Adjustments
     
   
Covenant
Transport
 
Star
Transportation
 
Debit
     
Credit
 
Pro Forma
Combined
 
                           
                           
Revenues
                         
Freight revenue
 
$
555,428
  
$
86,387
                    
$
641,815
  
Fuel surcharges
   
87,626
   
11,083
                     
98,709
 
Total revenue
   
643,054
   
97,470
                     
740,524
 
                                       
Operating expenses:
                                     
Salaries, wages, and related expenses
   
242,157
   
38,359
                     
280,516
 
Fuel, operations and maintenance
    
204,207
   
30,459
                     
234,666
 
Revenue equipment rentals and purchased transportation
   
61,701
   
5,040
                     
66,741
 
Operating taxes and licenses
   
13,431
   
1,892
                     
15,323
 
Insurance and claims
   
41,034
   
4,789
                     
45,823
 
Communications and utilities
   
6,579
   
858
                     
7,437
 
General supplies and expenses
   
17,778
   
2,895
                     
20,673
 
Depreciation and amortization, including gains (losses) on
    disposition of equipment
   
39,101
   
5,618
   
562
   
(h
)
        
45,281
 
Total operating expenses
   
625,988
   
89,910
                     
716,460
  
Operating income
   
17,066
   
7,560
                     
24,064
 
                                       
Other (income) expenses:
                                     
Interest expense
   
4,203
   
1,237
   
1,218
   
(i
)
        
6,658
 
Interest income
   
(273
)
  
(76
)
                    
(349
)
Other
   
(538
)
  
- 
                      
(538
)
Other expenses, net
   
3,392
   
1,161
                     
5,771
  
                                       
Income before income taxes
   
13,674
   
6,399
                     
18,293
 
Income tax expense
   
8,003
   
638
   
1,129
   
(j
)
        
9,770
 
Income before cumulative effect of change in accounting principle
    
5,671
   
5,761
                     
8,523
 
Cumulative effect of change in accounting principle, net of tax
   
(485
)
  
-
                     
(485
)
Net income (loss)
 
$
5,186
  
$
5,761
                    
$
8,038
  
                                       
Net income (loss) per share:
                                     
                                       
Basic earnings (loss) per share:
 
$
0.37
                          
$
0.57
  
                                       
Diluted earnings (loss) per share:
 
$
0.37
                          
$
0.56
  
                                       
Basic weighted average shares outstanding
   
14,175
                           
14,175
 
                                       
Diluted weighted average shares outstanding
   
14,270
                           
14,270
 




COVENANT TRANSPORT, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA STATEMENTS OF OPERATIONS
PERIOD ENDED JUNE 30, 2006
(In thousands, except per share data)
  
           
Pro Forma
Adjustments
     
   
Covenant
Transport
 
Star
Transportation
 
Debit
     
Credit
 
Pro Forma
Combined
 
                           
                           
Revenues
                         
Freight revenue
 
$
268,778
  
$
46,139
                    
$
314,917
  
Fuel surcharges
   
52,109
   
7,296
                     
59,405
 
Total revenue
   
320,887
   
53,435
                     
374,322
 
                                       
Operating expenses:
                                     
Salaries, wages, and related expenses
   
123,063
   
19,812
                     
142,875
 
Fuel, operations and maintenance
    
109,488
   
18,084
                     
127,572
 
Revenue equipment rentals and purchased transportation
   
30,136
   
1,613
                     
31,749
 
Operating taxes and licenses
   
6,767
   
1,003
                     
7,770
 
Insurance and claims
   
16,414
   
2,361
                     
18,775
 
Communications and utilities
   
3,117
   
484
                     
3,601
 
General supplies and expenses
   
10,044
   
1,564
                     
11,608
 
Depreciation and amortization, including gains (losses)
     on disposition of equipment
   
18,555
   
3,606
   
281
   
(k
)
        
22,442
 
Total operating expenses
   
317,584
   
48,527
                     
366,392
 
Operating income
   
3,303
   
4,908
                     
7,930
 
                                       
Other (income) expenses:
                                     
Interest expense
   
2,199
   
843
   
1,049
   
(l
)
        
4,091
 
Interest income
   
(259
)
  
(154
)
                    
(413
)
Other
   
(75
)
  
-
                     
(75
)
Other expenses, net
   
1,865
   
689
                     
3,603
 
                                       
Income before income taxes
   
1,438
   
4,219
                     
4,327
 
Income tax expense
   
2,721
   
274
   
831
   
(j
)
        
3,826
 
Net income (loss)
 
$
(1,283
)
$
3,945
                    
$
501
  
                                       
Net income (loss) per share:
                                     
                                       
Basic earnings (loss) per share:
 
$
(0.09
)
                        
$
0.04
  
                                       
Diluted earnings (loss) per share:
 
$
(0.09
)
                        
$
0.04
  
                                       
Basic weighted average shares outstanding
   
13,991
                           
13,991
 
                                       
Diluted weighted average shares outstanding
   
13,991
                           
13,991
 



Notes to the Unaudited Pro Forma Financial Statements

The notes to the unaudited pro forma financial statements that follow are intended to provide additional information regarding the effect of the pro forma adjustments on the consolidated financial statements.

(a)
To record federal deferred tax liability upon conversion from an S-corporation to a C-corporation.
   
(b)
To record real estate and revenue equipment to fair market value.
   
(c)
To record various items:
   
Deferred acquisition costs
$                245
   
Write-off previously acquired goodwill
(156)
   
Goodwill
19,995
   
Tradename
1,950
   
Customer Contracts
1,200
     
$          23,234
   
(d)
To revise certain estimates based on Covenant's review of the balance sheet.
   
(e)
To record cash paid to selling shareholders and deferred acquisition costs.
   
(f)
 To record cash distributed to shareholders prior to closing of acquisition.
 
(g)
To record the acquisition of 100% of the outstanding stock of Star for a purchase price of $38,973,000.
   
(h)
To record twelve months of amortization for the tradename and customer contracts.
   
(i)
To record interest expense for the twelve months associated with the purchase of the stock.
$38,793,000 purchase price for the stock at an average interest rate of 3.14%.
   
(j)
To adjust Star's tax expense to a blended rate of 38.25%.
   
(k)
 To record six months of amortization for the tradename and customer contracts.
   
(l)
To record interest expense for the six months associated with the purchase of the stock.
$38,793,000 purchase price for the stock at an average interest rate of 5.41%.

Reclassifications
 
Certain reclassifications have been made to the Star Transportation, Inc. December 31, 2005 unaudited proforma income statement in order to conform with the Covenant Transport, Inc. presentation. These reclassifications have no effect on net income as previously reported.
 
Back to Form 8-K/A