Operating Segments

3 Months Ended

Mar. 31, 2015

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 include the results of two of our unconsolidated entities, Oslo Bulk, AS and  Oslo Bulk Holding Pte. Ltd, in our Dry Bulk Carriers segment, and the results of another unconsolidated entity, Terminales Transgolfo, S.A. de C.V., to our Rail-Ferry segment.  The results of our remaining unconsolidated entities, Saltholmen Shipping Ltd (a company owning two Chemical Tankers) and Brattholmen Shipping Ltd (a company owning two Asphalt Tankers), are included in our Specialty Contracts segment.  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) loss of extinguishment of debt, (vii) other income from vessel financing, (viii) investment income, and (ix) 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 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, 2015 and 2014:

RESULTS OF OPERATIONS

three MONTHS ENDED MARCH 31, 2015

COMPARED TO THE three MONTHS ENDED MARCH 31, 2014

(All Amounts in Thousands)				Pure Car
	Jones			Truck			Dry Bulk			Rail			Specialty
	Act			Carriers			Carriers			Ferry			Contracts			Other		Total
2015
Fixed Revenue	$	24,595		$	14,247		$	1,868		$	-		$	10,571		$	-	$	51,281
Variable Revenue		-			7,533			1,255			7,785			185			(13)		16,745
Total Revenue from External Customers		24,595			21,780			3,123			7,785			10,756			(13)		68,026
Voyage Expenses		18,590			17,020			2,580			6,886			7,557			(422)		52,211
Amortization Expense		3,828			715			61			285			298			-		5,187
Loss (Income) of Unconsolidated Entities		-			-			(635)			74			(332)			-		(893)
Gross Voyage Profit	$	2,177		$	4,045		$	1,117		$	540		$	3,233		$	409	$	11,521
Gross Voyage Profit Margin		9	%		19	%		36	%		7	%		30	%		-		17	%
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
Voyage Expenses		21,209			16,663			3,566			6,846			9,476			(327)		57,433
Amortization Expense		3,667			535			77			160			724			-		5,163
Loss of Unconsolidated Entities		-			-			80			28			-			-		108
Gross Voyage Profit	$	4,224		$	2,358		$	1,393		$	892		$	750		$	373	$	9,990
Gross Voyage Profit Margin		15	%		12	%		27	%		11	%		7	%		-		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:

(All Amounts in Thousands)	Three Months Ended March 31,
		2015		2014
Revenues	$	68,026	$	72,694
Voyage Expenses		52,211		57,433
Amortization Expense		5,187		5,163
Net (Income) Loss of Unconsolidated Entities		(893)		108
Gross Voyage Profit		11,521		9,990
Vessel Depreciation		5,543		6,721
Other Depreciation		184		184
Gross Profit		5,794		3,085
Other Operating Expenses:
Administrative and General Expenses		5,022		5,449
Loss on Sale of Other Assets		68		-
Less:  Net Income (Loss) of Unconsolidated Entities		893		(108)
Total Other Operating Expenses		5,983		5,341
Operating Loss	$	(189)	$	(2,256)