Note 10 - Business Segments

6 Months Ended

Jun. 30, 2012

Segment Reporting Disclosure [Text Block]

(10)  Business Segments

We have six operating segments that have been aggregated into two reporting segments (Truckload and Logistics) for financial reporting purposes.  The primary source of our operating revenue is truckload revenue, which we generate by transporting freight for our customers and report within our Truckload segment.  Generally, we are paid by the mile for our services.  We also derive truckload revenue from fuel surcharges, loading and unloading activities, equipment detention and other ancillary services.

Our operating revenue also includes revenue reported within our Logistics segment, which consists of revenue from our internal brokerage and intermodal operations, and through our 45% interest in MWL, a third-party provider of logistics services to the transportation industry.  Brokerage services involve arranging for another company to transport freight for our customers while we retain the billing, collection and customer management responsibilities.  Intermodal services involve the transport of our trailers on railroad flatcars for a portion of a trip, with the balance of the trip using our tractors or, to a lesser extent, contracted carriers.

The following table sets forth for the periods indicated our operating revenue and operating income by segment.  We do not prepare separate balance sheets by segment and, as a result, assets are not separately identifiable by segment.

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
(Dollars in thousands)
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	94,148	$	89,637	$	183,346	$	171,610
Truckload fuel surcharge revenue		26,121		25,526		51,374		47,614
Total Truckload revenue		120,269		115,163		234,720		219,224
Logistics revenue, net of intermodal fuel surcharge revenue(1)		33,045		32,203		66,481		62,721
Intermodal fuel surcharge revenue		3,650		3,769		7,237		7,046
Total Logistics revenue		36,695		35,972		73,718		69,767
Total operating revenue	$	156,964	$	151,135	$	308,438	$	288,991
Operating income:
Truckload	$	10,973	$	9,602	$	18,101	$	14,923
Logistics		2,310		1,757		4,701		4,045
Total operating income	$	13,283	$	11,359	$	22,802	$	18,968

(1) Logistics revenue is net of $2.4 million and $4.9 million of inter-segment revenue in the three-month and six-month periods ended June 30, 2012, respectively, for loads transported by our tractors and arranged by MWL that have been eliminated in consolidation.  Inter-segment revenue was $2.1 million and $4.4 million for the three-month and six-month periods ended June 30, 2011.

Truckload segment depreciation expense was $14.0 million and $13.3 million, and Logistics segment depreciation expense was $1.0 million and $745,000, in the three-month periods ended June 30, 2012 and June 30, 2011, respectively.  Truckload segment depreciation expense was $27.7 million and $26.1 million, and Logistics segment depreciation expense was $1.9 million and $1.5 million, in the first six months of 2012 and 2011, respectively.