Operating Segments

3 Months Ended

Mar. 31, 2013

Operating Segments [Abstract]

Operating Segments

Note 4.  Operating Segments

Following our acquisition of UOS in late 2012, we internally restructured our business reporting to replace our prior operating segments (listed below) with the following new segments. We believe this reorganization will better align our segment disclosures with the information now reviewed by our chief operating decision maker and believe it improves the transparency with which we communicate our financial results to our investors. All prior period data for each of our segments has been restated based on this new segmentation methodology.

New Segments	Prior Segments
·Jones Act	·Time Charter Contracts – U.S. Flag
·Pure Car Truck Carriers	·Time Charter Contracts – International flag
·Dry Bulk Carriers	·Contracts of Affreightment
·Rail-Ferry	·Rail-Ferry Service
·Specialty Contracts	·Other
·Other

Our six operating segments, Jones Act, Pure Car Truck Carriers, Dry Bulk Carriers, Rail-Ferry, Specialty Contracts, and Other are based primarily by the market in which the segment assets are deployed, the physical characteristics of those assets, and the type of services provided to our customers. We report in the Other category the results of several of our subsidiaries that provide ship charter brokerage, ship management services and agency services to our operating subsidiaries as well as third party customers. 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. Additionally, we also allocate the results of our unconsolidated entities to our segment results. We do not allocate to our segments; administrative and general expenses, gain on sale/purchase of other assets, derivative (income) loss, income taxes, gain on sale of investment, other income from vessel financing, investment income, and foreign exchange loss (gain). 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 March 31, 2013 and 2012:

(All Amounts in Thousands)	Jones Act	Pure Car Truck Carriers	Dry Bulk Carriers	Rail Ferry	Specialty Contracts	Other	Total
2013
Revenues from External Customers
Fixed Revenue	$ 31,855	$ 16,395	$ 874	$ -	$ 6,832	$ -	$ 55,956
Variable Revenue	-	11,477	3,361	9,128	855	347	25,168
Total Revenue from External Customers	31,855	27,872	4,235	9,128	7,687	347	81,124
Intersegment Revenues (Eliminated)	-	-	-	-	-	5,519	5,519
Intersegment Expenses (Eliminated)	-	-	-	-	-	(5,519)	(5,519)
Voyage Expenses	25,556	23,684	5,203	7,671	7,497	(20)	69,591
Loss (Income) of Unconsolidated Entities			331	(61)			270
Gross Voyage Profit (Loss)	6,299	4,188	(1,299)	1,518	190	367	11,263
Gross Voyage Profit Percentage	20%	15%	-31%	17%	2%	106%	14%
Vessel and Other Depreciation	1,107	2,039	1,638	495	515	-	5,794
Gross Profit (Loss)	5,192	2,149	(2,937)	1,023	(325)	367	5,469
Interest Expense	341	616	835	163	133	113	2,201
Segment Profit (Loss)	$ 4,851	$ 1,533	$ (3,772)	$ 860	$ (458)	$ 254	$ 3,268
2012
Revenues from External Customers
Fixed Revenue	$ 6,306	$ 20,015	$ 2,437	$ -	$ -	$ -	$ 28,758
Variable Revenue	-	12,587	3,073	9,201	11,298	287	36,446
Total Revenue from External Customers	6,306	32,602	5,510	9,201	11,298	287	65,204
Intersegment Revenues Eliminated	-	-	-	-	-	5,061	5,061
Intersegment Expenses (Eliminated)	-	-	-	-	-	(5,061)	(5,061)
Voyage Expenses	6,753	24,168	4,267	8,440	7,285	(87)	50,826
Loss (Income) of Unconsolidated Entities			(42)	112			70
Gross Voyage Profit (Loss)	(447)	8,434	1,285	649	4,013	374	14,308
Gross Voyage Profit Percentage	-7%	26%	23%	7%	36%	130%	22%
Vessel and Other Depreciation	305	3,473	1,363	698	516	2	6,357
Gross (Loss) Profit	(752)	4,961	(78)	(49)	3,497	372	7,951
Interest Expense	52	1,065	1,087	221	170	132	2,727
Segment (Loss) Profit	$ (804)	$ 3,896	$ (1,165)	$ (270)	$ 3,327	$ 240	$ 5,224

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)	Three Months Ended March 31,
Profit or Loss:	2013			2012
Total Profit for Reportable Segments	$	3,268		$	5,224
Unallocated Amounts:
Administrative and General Expenses		(5,433	)		(5,508	)
Gain on Sale of Other Assets		-			3,799
Derivative Gain		77			149
Gain on Sale of Investment		-			42
Other Income from Vessel Financing		555			622
Investment Income		40			128
Foreign Exchange Gain		3,181			3,648
Provisions for Income Taxes		(35	)		(168	)
Net Income	$	1,653		$	7,936