Note 12 - Business Segments

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(12) Business Segments

We have six current operating segments that have been aggregated into four reporting segments (Truckload, Dedicated, Intermodal and Brokerage) for financial reporting purposes. Information for the first nine months of 2014, which was previously aggregated into two reporting segments, has been shown in the same four segments for comparison purposes. We believe reporting our results in this manner will provide better visibility and understanding into our business and reflect our operational structure.

The primary source of our operating revenue is provided by our Truckload segment through a combination of regional short-haul and medium-to-long-haul full-load transportation services. We transport food and other consumer packaged goods that require a temperature-controlled or insulated environment across the United States and into and out of Mexico and Canada.

Our Dedicated segment provides customized transportation solutions tailored to meet individual customers’ requirements, utilizing temperature-controlled trailers, dry vans and other specialized equipment within the United States. Our customer contracts range from three to five years and are subject to annual rate reviews.

Our Intermodal segment transports our customers’ freight within the United States primarily utilizing our temperature-controlled trailers and also, through March 2015, our dry containers on railroad flatcars for portions of trips, with the balance of the trips using our tractors or, to a lesser extent, contracted carriers.

Our Brokerage segment arranges for smaller third-party carriers to transport freight for our customers in temperature-controlled trailers and dry vans within the United States and into and out of Mexico while we retain the billing, collection and customer management responsibilities.

7

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					Nine Months
	Ended September 30,					Ended September 30,
( Dollars in thousands )	2015		2014			2015		2014
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	86,594	$	89,515		$	262,227	$	266,633
Truckload fuel surcharge revenue		11,777		21,821			40,296		69,232
Total Truckload revenue		98,371		111,336			302,523		335,865
Dedicated revenue, net of fuel surcharge revenue		31,477		15,756			73,941		38,329
Dedicated fuel surcharge revenue		2,937		3,995			8,331		10,062
Total Dedicated revenue		34,414		19,751			82,272		48,391
Intermodal revenue, net of fuel surcharge revenue		17,158		19,229			50,278		57,989
Intermodal fuel surcharge revenue		2,673		5,793			8,991		16,929
Total Intermodal revenue		19,831		25,022			59,269		74,918
Brokerage revenue		18,730		15,441			52,157		40,208
Total operating revenue	$	171,346	$	171,550		$	496,221	$	499,382
Operating income:
Truckload	$	8,204	$	10,455		$	27,614	$	27,043
Dedicated		3,929		2,046			8,496		4,801
Intermodal		1,152		(151	)		3,372		815
Brokerage		1,069		692			2,632		1,955
Total operating income before gain on disposition of facility		14,354		13,042			42,114		34,614
Gain on disposition of facility		-		-			3,712		-
Total operating income	$	14,354	$	13,042		$	45,826	$	34,614

Truckload segment depreciation expense was $13.3 million and $13.2 million, Dedicated segment depreciation expense was $4.3 million and $2.3 million, Intermodal segment depreciation expense was $1.4 million and $1.6 million, and Brokerage segment depreciation expense was $295,000 and $247,000, in the three-month periods ended September 30, 2015 and September 30, 2014, respectively. Truckload segment depreciation expense was $40.0 million and $39.7 million, Dedicated segment depreciation expense was $10.4 million and $5.6 million, Intermodal segment depreciation expense was $4.3 million and $4.5 million, and Brokerage segment depreciation expense was $854,000 and $711,000, in the nine-month periods ended September 30, 2015 and September 30, 2014, respectively.