Operating Segments

6 Months Ended

Jun. 30, 2014

Operating Segments [Abstract]

Operating Segments

Note 3.  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 most 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.  The results of our remaining unconsolidated entities, Saltholmen Shipping Ltd and Brattholmen Shipping Ltd (a joint venture owning two Asphalt Tankers), are allocated to the Specialty Contracts 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) loss (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 3) 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 June  30, 2014 and 2013:

RESULTS OF OPERATIONS

three MONTHS ENDED June 30, 2014

COMPARED TO THE three MONTHS ENDED June 30, 2013

(All Amounts in Thousands)		Jones Act			Pure Car Truck Carriers			Dry Bulk Carriers			Rail Ferry			Specialty Contracts			Other			Total
2014
Fixed Revenue	$	33,216		$	15,295		$	1,758		$	-		$	8,487		$	-		$	58,756
Variable Revenue		-			3,858			3,505			9,739			911			(17)			17,996
Total Revenue from External Customers		33,216			19,153			5,263			9,739			9,398			(17)			76,752
Intersegment Revenues (Eliminated)		-			-			-			-			-			(4,321)			(4,321)
Intersegment Expenses Eliminated		-			-			-			-			-			4,321			4,321
Voyage Expenses		27,181			16,903			3,412			7,870			8,446			(487)			63,325
Loss (Income) of Unconsolidated Entities		-			-			89			39			(48)			-			80
Gross Voyage Profit	$	6,035		$	2,250		$	1,762		$	1,830		$	1,000		$	470		$	13,347
Gross Voyage Profit Margin		18	%		12	%		33	%		19	%		11	%		2765	%		17	%
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 Revenue 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 Margin		20	%		18	%		8	%		18	%		13	%		62	%		18	%

The following table presents information about segment profit and loss for the six months ended June  30, 2014 and 2013:

RESULTS OF OPERATIONS

SIX MONTHS ENDED June 30, 2014

COMPARED TO THE SIX MONTHS ENDED June 30, 2013

(All Amounts in Thousands)		Jones Act			Pure Car Truck Carriers			Dry Bulk Carriers			Rail Ferry			Specialty Contracts			Other			Total
2014
Fixed Revenue	$	62,315		$	30,911		$	3,284		$	-		$	17,188		$	-		$	113,698
Variable Revenue		-			7,799			7,094			17,667			3,158			30			35,748
Total Revenue from External Customers		62,315			38,710			10,378			17,667			20,346			30			149,446
Intersegment Revenues(Eliminated)		-			-			-			-			-			(8,642)			(8,642)
Intersegment Expenses Eliminated		-			-			-			-			-			8,642			8,642
Voyage Expenses		52,057			34,101			7,055			14,912			18,646			(814)			125,957
Loss (Income) of Unconsolidated Entities		-			-			169			67			(48)			-			188
Gross Voyage Profit	$	10,258		$	4,609		$	3,154		$	2,688		$	1,748		$	844		$	23,301
Gross Voyage Profit Margin		16	%		12	%		30	%		15	%		9	%		2813	%		16	%
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 Margin		20	%		17	%		(10)	%		17	%		8	%		43	%		16	%

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 June 30,				Year to date as of June 30,
(All Amounts in Thousands)		2014		2013		2014		2013
Revenues	$	76,752	$	74,897	$	149,446	$	156,021
Voyage Expenses*		63,325		61,508		125,957		131,099
Net Loss of Unconsolidated Entities		80		75		188		345
Gross Voyage Profit		13,347		13,314		23,301		24,577
Vessel Depreciation		6,517		5,804		13,238		11,575
Other Depreciation		18		11		36		34
Gross Profit		6,812		7,499		10,027		12,968
Other Operating Expenses:
Administrative and General Expenses		5,232		6,170		10,811		11,603
Less:  Net Loss of Unconsolidated Entities		(80)		(75)		(188)		(345)
Total Other Operating Expenses		5,152		6,095		10,623		11,258
Operating Income (Loss)	$	1,660	$	1,404	$	(596)	$	1,710
*  Includes Intangible Amortization