Operating Segments

9 Months Ended

Sep. 30, 2012

Operating Segments [Abstract]

Operating Segments

Note 2.  Operating Segments

Our five operating segments, Time Charter Contracts – U.S. Flag, Time Charter Contracts – International Flag,Contracts of Affreightment ("COA"), Rail-Ferry Service and Other, are identified primarily by the characteristics of the contracts and terms under which our assets are operated.  In the Rail-Ferry Service category, we report the results of our two vessels engaged in the transport of rail-cars from Mobile, Alabama to Coatzacoalcos, Mexico.  We also report the operating results of the newly acquired FSI rail-car repair yard facility in this segments.  See Note 20 for more information on FSI.  We report in the Other category the results of several of our subsidiaries that provide ship charter brokerage, ship management services and agency services.  Also included in the Other category are corporate related items, results of insignificant operations, and income and expense items not allocated to the other reportable segments. We manage each reportable segment separately, as each requires different resources depending on the nature of the contract or terms under which the vessels within the segment operate.

We allocate interest expense to the segments in proportion to the fixed assets (defined as the carrying value of vessels, property, and other equipment) within each segment.  We do not allocate to our segments administrative and general expenses, gain on Dry Bulk transaction, gain on sale/purchase of other assets, derivative (income) loss, income taxes, gain on sale of investment, other income from vessel financing, investment income, foreign exchange loss (gain) and equity in net (loss) income of unconsolidated entities.  Intersegment revenues are based on market prices and include revenues earned by our subsidiaries that provide specialized services to our operating companies.

The following table presents information about segment profit and loss for the three months ended September 30, 2012 and 2011:

(Amounts in Thousands)	Time Charter Contracts- U.S. Flag			Time Charter Contracts- International Flag			COA			Rail-Ferry Service			Other			Total
Three months ended September 30, 2012
Revenues from External Customers	$	36,121		$	12,400		$	4,796		$	7,513		$	332		$	61,162
Intersegment Revenues (Eliminated)		-			-			-			-			(4,594	)		(4,594	)
Intersegment Expenses (Eliminated)		-			-			-			-			4,594			4,594
Voyage Expenses		27,003			8,221			3,518			6,611			41			45,394
Gross Voyage Profit *		9,118			4,179			1,278			902			291			15,768
Gross Voyage Profit Percentage		25	%		34	%		27	%		12	%		88	%		26	%
Vessel Depreciation		2,301			2,789			304			715			-			6,109
Gross Profit *		6,817			1,390			974			187			291			9,659
Interest Expense		557			1,208			111			158			110			2,144
Segment Profit		6,260			182			863			29			181			7,515
Three months ended September 30, 2011
Revenues from External Customers	$	38,069		$	14,609		$	4,766		$	9,121		$	522		$	67,087
Intersegment Revenues (Eliminated)		-			-			-			-			(4,664	)		(4,664	)
Intersegment Expenses (Eliminated)		-			-			-			-			4,664			4,664
Voyage Expenses		27,233			7,173			4,685			7,685			135			46,911
Gross Voyage Profit *		10,836			7,436			81			1,436			387			20,176
Gross Voyage Profit Percentage		28	%		51	%		2	%		16	%		74	%		30	%
Vessel Depreciation		2,707			3,151			-			915			2			6,775
Gross  Profit *		8,129			4,285			81			521			385			13,401
Interest Expense		914			1,688			-			155			93			2,850
Segment Profit		7,215			2,597			81			366			292			10,551

*Information used by Chief Decision Makers; see "Management's Discussion and Analysis of Financial Condition and Results of Operation- Non-GAAP Financial Measures."

The following table presents information about segment profit and loss for the nine months ended September 30, 2012 and 2011:

(Amounts in Thousands)	Time Charter Contracts- U.S. Flag			Time Charter Contracts- International Flag			COA			Rail-Ferry Service			Other			Total
Nine months ended September 30, 2012
Revenues from External Customers	$	109,638		$	37,626		$	12,397		$	26,108		$	917		$	186,686
Intersegment Revenues (Eliminated)		-			-			-			-			(14,905	)		(14,905	)
Intersegment Expenses (Eliminated)		-			-			-			-			14,905			14,905
Voyage Expenses (Income)		85,965			22,608			11,828			22,983			(138	)		143,246
Gross Voyage Profit *		23,673			15,018			569			3,125			1,055			43,440
Gross Voyage Profit Percentage		22	%		40	%		5	%		12	%		115	%		23	%
Vessel Depreciation		7,174			8,582			304			2,129			-			18,189
Gross Profit *		16,499			6,436			265			996			1,055			25,251
Interest Expense		1,865			4,037			370			540			340			7,152
Segment Profit (Loss)		14,634			2,399			(105	)		456			715			18,099
Nine Months ended September 30, 2011
Revenues from External Customers	$	116,381		$	41,777		$	13,497		$	27,894		$	1,833		$	201,382
Intersegment Revenues (Eliminated)		-			-			-			-			(13,995	)		(13,995	)
Intersegment Expenses (Eliminated)		-			-			-			-			13,995			13,995
Voyage Expenses		87,190			22,516			13,597			23,973			439			147,715
Gross Voyage Profit *		29,191			19,261			(100	)		3,921			1,394			53,667
Gross Voyage Profit Percentage		25	%		46	%		-1	%		14	%		76	%		27	%
Vessel Depreciation		7,712			7,837			-			2,687			8			18,244
Gross  Profit (Loss)*		21,479			11,424			(100	)		1,234			1,386			35,423
Interest Expense		2,267			4,326			-			541			336			7,470
Segment Profit (Loss)		19,212			7,098			(100	)		693			1,050			27,953

*Information used by Chief Decision Makers; see "Management's Discussion and Analysis of Financial Condition and Results of Operation- Non-GAAP Financial Measures."

The following table is a reconciliation of the totals reported for the operating segments to the applicable line items in the consolidated financial statements:

(All Amounts in Thousands)	Nine Months Ended September 30,						Three Months Ended September 30,
Profit or Loss:	2012			2011			2012			2011
Total Profit for Reportable Segments	$	18,099		$	27,953		$	7,515		$	10,551
Unallocated Amounts:
Administrative and General Expenses		(15,871	)		(16,053	)		(5,643	)		(4,769	)
Gain (Loss) on Sale/Purchase of Other Assets		4,463			-			(3	)		-
Derivative Loss		(97	)		(109	)		(129	)		(124	)
Gain on Sale of Investment		66			181			-			67
Other Income from Vessel Financing		1,815			2,014			588			654
Investment Income		391			522			117			137
Foreign Exchange Gain (Loss)		771			(3,075	)		(1,143	)		(2,664	)
Gain on Dry Bulk Transaction		-			18,844			-			-
Income Before Provision for    Income Taxes and Equity in Net Income (Loss) of Unconsolidated Entities	$	9,637		$	30,277		$	1,302		$	3,852