Operating Segments

9 Months Ended

Sep. 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 distinguished 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 and cargo 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 allocate the results of our unconsolidated entities, Oslo Bulk, AS, Oslo Bulk Holding Pte. Ltd., and Terminales Transgolfo, S.A. de C.V., to the Dry Bulk Carriers and Rail-Ferry results.  We do not allocate to our segments; administrative and general expenses, (loss) gain on sale 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. Finally, we use “gross voyage profit” as the chosen measure for our segments’ profitability to assist in monitoring and managing our business.

The following table presents information about segment profit and loss for the three months ended September 30, 2013 and 2012:

RESULTS OF OPERATIONS

three MONTHS ENDED september 30, 2013

COMPARED TO THE three MONTHS ENDED september 30, 2012

(All Amounts in Thousands)		Jones Act			Pure Car Truck Carriers			Dry Bulk Carriers			Rail Ferry			Specialty Contracts			Other			Total
2013
Fixed Revenue	$	31,003		$	14,843		$	919		$	-		$	7,928		$	-		$	54,693
Variable Revenue		-			7,990			4,634			10,419			227			(25)			23,245
Total Revenue from External Customers		31,003			22,833			5,553			10,419			8,155			(25)			77,938
Intersegment Revenues (Eliminated)		-			-			-			-			-			(5,519)			(5,519)
Intersegment Expenses Eliminated		-			-			-			-			-			5,519			5,519
Voyage Expenses		24,400			19,728			4,801			8,494			7,602			(193)			64,832
Loss of Unconsolidated Entities		-			-			315			45			-			-			360
Gross Voyage Profit	$	6,603		$	3,105		$	437		$	1,880		$	553		$	168		$	12,746
Gross Voyage Profit Margin		21	%		14	%		8	%		18	%		7	%		(672)	%		16	%
2012
Fixed Revenue	$	7,544		$	15,562		$	2,211		$	-		$	8,088		$	-		$	33,405
Variable Revenue		-			14,864			5,047			7,532			-			314			27,757
Total Revenue from External Customers		7,544			30,426			7,258			7,532			8,088			314			61,162
Intersegment Revenues (Eliminated)		-			-			-			-			-			(4,664)			(4,664)
Intersegment Expenses Eliminated		-			-			-			-			-			4,664			4,664
Voyage Expenses		5,915			22,640			5,373			6,868			4,690			(92)			45,394
(Income) Loss of Unconsolidated Entities		-			-			(250)			166			-			-			(84)
Gross Voyage Profit	$	1,629		$	7,786		$	2,135		$	498		$	3,398		$	406		$	15,852
Gross Voyage Profit Margin		22	%		26	%		29	%		7	%		42	%		129	%		26	%

The following table presents information about segment profit and loss for the nine months ended September 30, 2013 and 2012:

RESULTS OF OPERATIONS

NINE MONTHS ENDED september 30, 2013

COMPARED TO THE NInE MONTHS ENDED september 30, 2012

(All Amounts in Thousands)		Jones Act			Pure Car Truck Carriers			Dry Bulk Carriers			Rail Ferry			Specialty Contracts			Other			Total
2013
Fixed Revenue	$	90,581		$	48,043		$	2,457		$	-		$	21,519		$	-		$	162,600
Variable Revenue		-			27,755			12,183			29,115			2,253			53			71,359
Total Revenue from External Customers		90,581			75,798			14,640			29,115			23,772			53			233,959
Intersegment Revenues (Eliminated)		-			-			-			-			-			(16,557)			(16,557)
Intersegment Expenses Eliminated		-			-			-			-			-			16,557			16,557
Voyage Expenses		72,106			63,574			14,688			23,894			22,100			(431)			195,931
Loss of Unconsolidated Entities		-			-			653			52			-			-			705
Gross Voyage Profit (Loss)	$	18,475		$	12,224		$	(701)		$	5,169		$	1,672		$	484		$	37,323
Gross Voyage Profit Margin		20	%		16	%		(5)	%		18	%		7	%		913	%		16	%
2012
Fixed Revenue	$	19,372		$	52,577		$	7,080		$	-		$	28,176		$	-		$	107,205
Variable Revenue					40,181			12,274			26,127			514			385			79,481
Total Revenue from External Customers		19,372			92,758			19,354			26,127			28,690			385			186,686
Intersegment Revenues (Eliminated)		-			-			-			-			-			(13,995)			(13,995)
Intersegment Expenses Eliminated		-			-			-			-			-			13,995			13,995
Voyage Expenses		17,197			70,046			13,931			23,018			19,219			(165)			143,246
(Income) Loss of Unconsolidated Entities		-			-			(910)			245			-			-			(665)
Gross Voyage Profit	$	2,175		$	22,712		$	6,333		$	2,864		$	9,471		$	550		$	44,105
Gross Voyage Profit Margin		11	%		24	%		33	%		11	%		33	%		143	%		24	%

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

	Three Months Ended September 30,				Year to date as of September 30,
		2013		2012		2013		2012
Revenues	$	77,938	$	61,162	$	233,959	$	186,686
Voyage Expenses		64,832		45,394		195,931		143,246
Net Loss (Income) of Unconsolidated Entities		360		(84)		705		(665)
Gross Voyage Profit		12,746		15,852		37,323		44,105
Vessel Depreciation		6,130		6,100		17,705		18,180
Other Depreciation		17		9		51		9
Gross Profit		6,599		9,743		19,567		25,916
Other Operating Expenses:
Administrative and General Expenses		4,994		5,643		16,597		15,871
Loss (Gain) on Sale  of Other Assets		6		3		6		(4,463)
Net (Income) Loss of Unconsolidated Entities		(360)		84		(705)		665
Total Other Operating Expenses		4,640		5,730		15,898		12,073
Operating Income	$	1,959	$	4,013	$	3,669	$	13,843