Operating Segments

6 Months Ended

Jun. 30, 2013

Operating Segments [Abstract]

Operating Segments

Note 5.  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 has better aligned our segment disclosures with the information now reviewed by our chief operating decision maker and believe it has improved 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 June 30, 2013 and 2012:

RESULTS OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2013

COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2012

(All Amounts in Thousands)	Jones Act			Pure Car Truck Carriers			Dry Bulk Carriers			Rail Ferry			Specialty Contracts			Other			Total
2013
Fixed Revenue	$	27,725		$	16,804		$	665		$	-		$	5,835		$	-		$	51,029
Variable Revenue		-			8,286			4,188			9,523			1,671			200			23,868
Total Revenues from External Customers	$	27,725		$	25,090		$	4,853		$	9,523		$	7,506		$	200		$	74,897
Intersegment Revenues (Eliminated)																	(5,519	)		(5,519	)
Intersegment Expenses (Eliminated)		-			-			-			-			-			5,519			5,519
Voyage Expenses		22,204			20,453			4,473			7,762			6,539			77			61,508
Loss of Unconsolidated Entities								7			68									75
Gross Voyage Profit		5,521			4,637			373			1,693			967			123			13,314
Gross Voyage Profit Percentage		20	%		18	%		8	%		18	%		13	%		62	%		18	%
Vessel and Other Depreciation		1,156			2,093			1,638			410			518			-			5,815
Gross Profit (Loss)		4,365			2,544			(1,265	)		1,283			449			123			7,499
Interest Expense		320			579			796			154			124			104			2,077
Segment Profit (Loss)	$	4,045		$	1,965		$	(2,061	)	$	1,129		$	325		$	19		$	5,422
2012
Fixed Revenue	$	5,522		$	16,684		$	2,431		$	-		$	8,794		$	-		$	33,431
Variable Revenue		726			12,309			4,160			9,396			-			298			26,889
Revenues from External Customers	$	6,248		$	28,993		$	6,591		$	9,396		$	8,794		$	298		$	60,320
Intersegment Revenues Eliminated																	(5,250	)		(5,250	)
Intersegment Expenses (Eliminated)		-			-			-			-			-			5,250			5,250
Voyage Expenses		5,094			22,222			4,294			7,948			7,438			30			47,026
Income of Unconsolidated Entities								(618	)		(33	)								(651	)
Gross Voyage Profit		1,154			6,771			2,915			1,481			1,356			268			13,945
Gross Voyage Profit Percentage		18	%		23	%		44	%		16	%		15	%		90	%		23	%
Vessel and Other Depreciation		305			2,612			1,575			701			520			10			5,723
Gross  Profit		849			4,159			1,340			780			836			258			8,222
Interest Expense		296			782			819			161			125			98			2,281
Segment Profit	$	553		$	3,377		$	521		$	619		$	711		$	160		$	5,941

The following table presents information about segment profit and loss for six months ended June 30, 2013 and 2012:

RESULTS OF OPERATIONS

SIX MONTHS ENDED JUNE 30, 2013

COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2012

(All Amounts in Thousands)	Jones Act			Pure Car Truck Carriers			Dry Bulk Carriers			Rail Ferry			Specialty Contracts			Other			Total
2013
Fixed Revenue	$	59,579		$	33,757		$	1,538		$	-		$	12,667		$	-		$	107,541
Variable Revenue					19,207			7,549			18,697			2,526			501			48,480
Total Revenue from External Customers	$	59,579		$	52,964		$	9,087		$	18,697		$	15,193		$	501		$	156,021
Intersegment Revenues (Eliminated)																	(11,038	)		(11,038	)
Intersegment Expenses (Eliminated)		-			-			-			-			-			11,038			11,038
Voyage Expenses		47,694			43,926			9,674			15,482			14,037			286			131,099
Loss of Unconsolidated Entities								338			7									345
Gross Voyage Profit (Loss)		11,885			9,038			(925	)		3,208			1,156			215			24,577
Gross Voyage Profit Percentage		20	%		17	%		-10	%		17	%		8	%		43	%		16	%
Vessel and Other Depreciation		2,263			4,132			3,276			905			1,033			-			11,609
Gross Profit (Loss)		9,622			4,906			(4,201	)		2,303			123			215			12,968
Interest Expense		661			1,196			1,631			317			256			217			4,278
Segment Profit (Loss)	$	8,961		$	3,710		$	(5,832	)	$	1,986		$	(133	)	$	(2	)	$	8,690
2012
Fixed Revenue	$	12,553		$	35,503		$	4,869		$	-		$	20,089		$	-		$	73,014
Variable Revenue					26,093			7,233			18,597						587			52,510
Total Revenue from External Customers	$	12,553		$	61,596		$	12,102		$	18,597		$	20,089		$	587		$	125,524
Intersegment Revenues Eliminated																	(10,311	)		(10,311	)
Intersegment Expenses (Eliminated)		-			-			-			-			-			10,311			10,311
Voyage Expenses		12,010			46,231			8,561			16,388			14,720			(58	)		97,852
(Income) Loss of Unconsolidated Entities								(660	)		79									(581	)
Gross Voyage Profit		543			15,365			4,201			2,130			5,369			645			28,253
Gross Voyage Profit Percentage		4	%		25	%		35	%		11	%		27	%		110	%		23	%
Vessel and Other Depreciation		610			6,088			2,937			1,399			1,033			13			12,080
Gross  (Loss) Profit		(67	)		9,277			1,264			731			4,336			632			16,173
Interest Expense		347			1,847			1,907			382			295			230			5,008
Segment (Loss) Profit	$	(414	)	$	7,430		$	(643	)	$	349		$	4,041		$	402		$	11,165

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 June 30,						Six Months Ended June 30,
Profit or Loss:	2013			2012			2013			2012
Total Profit for Reportable Segments	$	5,422		$	5,941		$	8,690		$	11,165
Unallocated Amounts:
Administrative and General Expenses		(6,170	)		(4,720	)		(11,603	)		(10,228	)
Gain on Sale of Other Assets		-			667			-			4,466
Ineffective Portion on Derivative Instrument		205			(117	)		282			32
Gain on Sale of Investment		-			24			-			66
Other Income from Vessel Financing		539			605			1,094			1,227
Investment Income		42			146			82			274
Foreign Exchange Gain/(Loss)		1,836			(1,734	)		5,017			1,914
(Provisions) for Income Taxes		(15	)		(108	)		(50	)		(276	)
Net Income	$	1,859		$	704		$	3,512		$	8,640