Operating Segments

3 Months Ended

Mar. 31, 2014

Operating Segments [Abstract]

Operating Segments

Note 2.  Operating Segments

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; (i) administrative and general expenses, (ii) (loss) gain on sale of other assets, (iii) derivative (income) loss, (iv) income taxes, (v) gain on sale of investment, (vi) other income from vessel financing, (vii) investment income, and (viii) 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 defined further below in this Note 2) as the primary 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 March 31, 2014 and 2013:

RESULTS OF OPERATIONS

three MONTHS ENDED march 31, 2014

COMPARED TO THE three MONTHS ENDED march 31, 2013

(All Amounts in Thousands)		Jones Act			Pure Car Truck Carriers			Dry Bulk Carriers			Rail Ferry			Specialty Contracts			Other			Total
2014
Fixed Revenue	$	29,100		$	15,615		$	1,526		$	-		$	8,702		$	-		$	54,943
Variable Revenue		-			3,941			3,590			7,926			2,248			46			17,751
Total Revenue from External Customers		29,100			19,556			5,116			7,926			10,950			46			72,694
Intersegment Revenues(Eliminated)		-			-			-			-			-			(4,321)			(4,321)
Intersegment Expenses Eliminated		-			-			-			-			-			4,321			4,321
Voyage Expenses		24,876			17,198			3,643			7,042			10,200			(327)			62,632
Loss of Unconsolidated Entities		-			-			80			28			-			-			108
Gross Voyage Profit	$	4,224		$	2,358		$	1,393		$	856		$	750		$	373		$	9,954
Gross Voyage Profit Margin		15	%		12	%		27	%		11	%		7	%		811	%		14	%
2013
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)		-			-			-			-			-			(13,995)			(13,995)
Intersegment Expenses Eliminated		-			-			-			-			-			13,995			13,995
Voyage Expenses		25,556			23,684			5,203			7,671			7,497			(20)			69,591
(Income) Loss 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 Margin		20	%		15	%		(31)	%		17	%		2	%		106	%		14	%

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 March 31,
(All Amounts in Thousands)		2014		2013
Revenues	$	72,694	$	81,124
Voyage Expenses		62,632		69,591
Net Loss of Unconsolidated Entities		108		270
Gross Voyage Profit		9,954		11,263
Vessel Depreciation		6,721		5,771
Other Depreciation		18		23
Gross Profit		3,215		5,469
Other Operating Expenses:
Administrative and General Expenses		5,579		5,433
Less:  Net Loss of Unconsolidated Entities		(108)		(270)
Total Other Operating Expenses		5,471		5,163
Operating (Loss) Income	$	(2,256)	$	306