Operating Segments

6 Months Ended

Jun. 30, 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 June 30, 2015 and 2014:

RESULTS OF OPERATIONS

three MONTHS ENDED JUNE30, 2015

COMPARED TO THE three MONTHS ENDED JUNE 30, 2014

(All Amounts in Thousands)				Pure Car
	Jones			Truck			Dry Bulk			Rail			Specialty
	Act			Carriers			Carriers			Ferry			Contracts			Other		Total
2015
Fixed Revenue	$	19,550		$	14,512		$	1,866		$	-		$	11,073		$	-	$	47,001
Variable Revenue		-			8,656			1,113			9,827			647			64		20,307
Total Revenue		19,550			23,168			2,979			9,827			11,720			64		67,308
Voyage Expenses		16,702			18,041			1,936			7,590			9,662			(122)		53,809
Amortization Expense		3,114			776			60			136			262			-		4,348
Income of Unconsolidated Entities		-			-			(208)			(117)			(340)			-		(665)
Gross Voyage Profit (excluding Depreciation Expense)	$	(266)		$	4,351		$	1,191		$	2,218		$	2,136		$	186	$	9,816
Gross Voyage Profit Margin		(1)	%		19	%		40	%		23	%		18	%		-		15	%
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		33,216			19,153			5,263			9,739			9,398			(17)		76,752
Voyage Expenses		23,503			16,093			3,380			7,577			7,736			(487)		57,802
Amortization Expense		3,678			810			32			256			710			-		5,486
Loss (Income) of Unconsolidated Entities		-			-			89			39			(48)			-		80
Gross Voyage Profit (excluding Depreciation Expense)	$	6,035		$	2,250		$	1,762		$	1,867		$	1,000		$	470	$	13,384
Gross Voyage Profit Margin		18	%		12	%		33	%		19	%		11	%		-		17	%

The following table presents information about segment profit and loss for the six months ended June 30, 2015 and 2014:

RESULTS OF OPERATIONS

SIX MONTHS ENDED JUNE 30, 2015

COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2014

(All Amounts in Thousands)				Pure Car
	Jones			Truck			Dry Bulk			Rail			Specialty
	Act			Carriers			Carriers			Ferry			Contracts			Other		Total
2015
Fixed Revenue	$	44,145		$	28,759		$	3,734		$	-		$	21,644		$	-	$	98,282
Variable Revenue		-			16,189			2,368			17,612			832			51		37,052
Total Revenue		44,145			44,948			6,102			17,612			22,476			51		135,334
Voyage Expenses		35,292			35,061			4,516			14,476			17,219			(544)		106,020
Amortization Expense		6,942			1,491			121			421			560			-		9,535
Income of Unconsolidated Entities		-			-			(843)			(43)			(672)			-		(1,558)
Gross Voyage Profit (excluding Depreciation Expense)	$	1,911		$	8,396		$	2,308		$	2,758		$	5,369		$	595	$	21,337
Gross Voyage Profit Margin		4	%		19	%		38	%		16	%		24	%		-		16	%
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		62,315			38,710			10,378			17,667			20,346			30		149,446
Voyage Expenses		44,712			32,756			6,946			14,423			17,212			(814)		115,235
Amortization Expense		7,345			1,345			109			416			1,434			-		10,649
Loss (Income) of Unconsolidated Entities		-			-			169			67			(48)			-		188
Gross Voyage Profit (excluding Depreciation Expense)	$	10,258		$	4,609		$	3,154		$	2,761		$	1,748		$	844	$	23,374
Gross Voyage Profit Margin		16	%		12	%		30	%		16	%		9	%		-		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:

(All Amounts in Thousands)	Three Months Ended June 30,				Six Months Ended June 30,
		2015		2014		2015		2014
Revenues	$	67,308	$	76,752	$	135,334	$	149,446
Voyage Expenses		53,809		57,802		106,020		115,235
Amortization Expense		4,348		5,486		9,535		10,649
Net (Income) Loss of Unconsolidated Entities		(665)		80		(1,558)		188
Gross Voyage Profit		9,816		13,384		21,337		23,374
Vessel Depreciation		5,490		6,516		11,033		13,237
Other Depreciation		187		180		371		364
Gross Profit		4,139		6,688		9,933		9,773
Other Operating Expenses:
Administrative and General Expenses		4,788		5,108		9,810		10,557
Impairment Loss		1,828		-		1,828		-
Gain on Sale of Other Assets		(4,747)		-		(4,679)		-
Less:  Net Income (Loss) of Unconsolidated Entities		665		(80)		1,558		(188)
Total Other Operating Expenses		2,534		5,028		8,517		10,369
Operating Income (Loss)	$	1,605	$	1,660	$	1,416	$	(596)