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Note 2 - Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Significant Accounting Policies [Text Block]
2.
     
Summary of Significant Accounting Policies
 
Basis of Presentation
 
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned and majority owned subsidiaries. All significant intercompany transactions and accounts have been eliminated.
 
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with Article
10
of Regulation S-
X
promulgated under the Securities Act of
1933,
as amended. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences could be material. In the opinion of management, the accompanying financial statements include all adjustments that are necessary for a fair statement of the results of the interim periods presented, such adjustments being of a normal recurring nature.
 
Certain information and footnote disclosures have been condensed or omitted pursuant to such rules and regulations. The
December 31, 2017
balance sheet was derived from our audited balance sheet as of that date. The Company’s operating results are subject to seasonal trends when measured on a quarterly basis; therefore operating results for the
three
and
six
months ended
June 30, 2018
are
not
necessarily indicative of the results that
may
be expected for the year ending
December 31, 2018.
These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and notes thereto for the year ended
December 31, 2017.
 
Recognition
of Revenue
 
The Company generates revenues primarily from shipments executed by the Company’s Truckload and Brokerage operations. Those shipments are the Company’s performance obligations, arising under contracts we have entered into with customers. Under such contracts, revenue is recognized when obligations are satisfied, which occurs over time with the transit of shipments from origin to destination. This is appropriate as the customer simultaneously receives and consumes the benefits as the Company performs its obligation. Revenue is measured as the amount of consideration the Company expects to receive in exchange for providing services. The most significant judgment used in recognition of revenue is the determination of miles driven as the basis for determining the amount of revenue to be recognized for partially fulfilled obligations. Accessorial charges for fuel surcharge, loading and unloading, stop charges, and other immaterial charges are part of the consideration we receive for the single performance obligation of delivering shipments. Contracts entered into with our customers do
not
contain material financing components.
 
Certain incremental revenue-related costs associated with obtaining a contract are capitalized. The majority of revenue contracts with our customers have a duration of
one
year or less and do
not
require any significant start-up costs, and as such, costs incurred to obtain contracts associated with these contracts are expensed as incurred. For contracts with durations exceeding
one
year, incremental start-up costs are capitalized and amortized on a straight line basis over the contract period which materially represents the period of revenue generation. Incremental capitalized start-up costs totaled
$3.6
million with accumulated amortization of
$1.4
million at
June 30, 2018
and are included in other currents assets in our unaudited condensed consolidated balance sheets.
 
Through the Company’s Brokerage operations, the Company outsources the transportation of the loads to
third
-party carriers. The Company is a principal in these arrangements, and therefore records revenue associated with these contracts on a gross basis. The Company has the primary responsibility to meet the customer’s requirements. The Company invoices and collects from its customers and also maintains discretion over pricing. Additionally, the Company is responsible for selection of
third
-party transportation providers to the extent used to satisfy customer freight requirements.
 
The timing of revenue recognition, billings, cash collections, and allowance for doubtful accounts results in billed and unbilled receivables on the unaudited condensed consolidated balance sheet. The Company receives the unconditional right to bill when shipments are delivered to their destination. We generally receive payment within
40
days of completion of performance obligations. Unbilled receivables recorded on the unaudited condensed consolidated balance sheet were
$4.0
million and
$3.9
million at
June 30, 2018
and
December 31, 2017,
respectively and are included in customer receivables in the condensed consolidated balance sheets. The amount of revenue to be recognized related to the Company’s remaining performance obligations was
$3.7
million at
June 30, 2018.
 
The following table presents the effect of the adoption of Accounting Standard Codification
606
“Revenue from Contracts with Customers” (ASC
606
) on our unaudited condensed consolidated financial statements for the
three
and
six
months ended
June 30, 2018 (
in thousands, except per share amounts):
 
 
  
As Reported
   
 
 
 
  
Under ASC 605
    
As Reported
   
 
 
 
  
Under ASC 605
  
   
for the Three
    
Adjustments
    
for the Three
    
for the Six
    
Adjustments
    
for the Six
  
   
Months Ended
    
Due to
    
Months Ended
    
Months Ended
    
Due to
    
Months Ended
  
   
June 30, 2018
    
ASC 606
    
June 30, 2018
    
June 30, 2018
    
ASC 606
    
June 30, 2018
  
                                                 
Consolidated Statement of Comprehensive Income (Loss)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Operating revenues
    
449,758
      
14
      
449,772
      
875,466
      
(151
 )    
875,315
  
Total operating expenses
    
429,740
      
1,019
      
430,759
      
840,594
      
1,541
      
842,135
  
Operating income
    
20,018
      
(1,005
 )    
19,013
      
34,872
      
(1,692
 )    
33,180
  
Income (loss) before income tax benefit
    
(156
 )    
(1,005
 )    
(1,161
 )    
1,819
      
(1,692
 )    
127
  
Income tax provision
    
(1,191
 )    
(291
 )    
(1,482
 )    
(598
 )    
(491
 )    
(1,089
 )
Net income (loss)
    
1,035
      
(714
 )    
321
      
2,417
      
(1,201
 )    
1,216
  
Net income (loss) attributable to controlling interest
    
615
      
(714
 )    
(99
 )    
1,774
      
(1,201
 )    
573
  
Basic earnings (loss) per share
    
0.04
      
(0.05
 )    
(0.01
 )    
0.17
      
(0.12
 )    
0.06
  
Basic weighted average shares outstanding
    
14,214
      
14,214
      
14,214
      
10,321
      
10,321
      
10,321
  
Diluted earnings (loss) per share
    
0.04
      
(0.05
 )    
(0.01
 )    
0.17
      
(0.12
 )    
0.05
  
Diluted weighted average shares outstanding
    
14,456
      
14,456
      
14,456
      
10,443
      
10,443
      
10,443
  
 
   
Reported
    
Adjustments
    
Under ASC 605
  
   
Balance at
    
Due to
    
Balance at
  
Consolidated Balance Sheet
  
June 30, 2018
    
ASC 606
    
June 30, 2018
  
Customer receivables, net of allowance of $69 at June 30, 2018
   $
206,558
     $
(4,003
 )   $
202,555
  
Other current assets
    
15,892
      
(2,216
 )    
13,676
  
Total current assets
    
277,924
      
(6,219
 )    
271,705
  
Total assets
    
842,225
      
(6,219
 )    
836,006
  
Accounts payable
    
74,944
      
(2,600
 )    
72,344
  
Other accrued liabilities
    
5,420
      
(349
 )    
5,071
  
Deferred income taxes
    
14,787
      
(609
 )    
14,178
  
Accumulated deficit
    
(40,460
 )    
(2,661
 )    
(43,121
 )
Stockholder’s equity (deficit)
    
210,630
      
(2,661
 )    
207,969
  
Total stockholder's equity (deficit)
    
213,562
      
(2,661
 )    
210,901
  
Total liabilities, redeemable restricted units and stockholder's equity (deficit)
    
842,225
      
(6,219
 )    
836,006
  
                         
Operating Cash Flows
  
 
 
 
  
 
 
 
  
 
 
 
Net income (loss)
    
2,417
      
(1,201
 )    
1,216
  
Receivables
    
(17,531
 )    
(151
 )    
(17,682
 )
Other assets
    
(3,777
 )    
(1,751
 )    
(5,528
 )
Accounts payable and other accrued liabilities
    
(15,353
 )    
210
      
(15,143
 )
Deferred income tax benefit
    
(959
 )    
491
      
(468
 )
 
Recently Issued Accounting Standards
 
In
February 2018,
the Financial Accounting Standards Board (“FASB”) issued ASU
2018
-
02,
“Income Statement - Reporting Comprehensive Income (Topic
220
): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which permits stranded tax effects resulting from the passing of the Tax Cuts and Jobs Act of
2017
(the “Act”) to be reclassified to retained earnings. The provisions of this update are effective for fiscal years and interim periods beginning after
December 15, 2018,
with early adoption permitted. The Company has evaluated the provisions of the pronouncement and does
not
expect the adoption of ASU
2018
-
02
will have a material impact on the consolidated financial statements.
 
In
January 2017,
the FASB issued ASU
2017
-
04,
“Intangibles—Goodwill and Other (Topic
350
): Simplifying the Test for Goodwill Impairment,” which eliminates Step
2
from the goodwill impairment testing process. Step
2
measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. Under the new standard, a goodwill impairment loss is measured as the excess of the carrying value of a reporting unit over its fair value. The provisions of this update are effective for fiscal years beginning after
December 15, 2019.
The Company has evaluated the provisions of the pronouncement and does
not
expect the adoption of ASU
2018
-
02
will have a material impact on the consolidated financial statements.
 
In
February 2016,
the FASB issued ASU
2016
-
02,
“Leases (Topic
842
),” to increase transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The provisions of this update are effective for fiscal years beginning after
December 15, 2018.
While the Company is currently evaluating the provisions of the pronouncement and assessing the impact on the condensed consolidated financial statements, the Company expects the recognition of right-of-use assets and lease obligations will have a material impact to the consolidated balance sheet.
 
Recently
Adopted
Accounting Standards
 
In
March 2018,
the Financial Accounting Standards Board (FASB) issued ASU
2018
-
05,
“Income Taxes (Topic
740
): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin
No.
118.”
The standard adds SEC paragraphs pursuant to the SEC Staff Accounting Bulletin
No.
118,
which expresses the view of the SEC Staff regarding application of Topic
740,
Income Taxes, in the reporting period that includes
December 22, 2017 -
the date on which the Act was signed into law. The application of this guidance did
not
have a material impact on the condensed consolidated financial statements.
 
In
August 2016,
the FASB issued ASU
2016
-
15,
“Statement of Cash Flows (Topic
230
): Classification of Certain Cash Receipts and Cash Payments,” which addresses
eight
specific cash flow issues with the objective of reducing the existing diversity in practice. Entities must apply the guidance retrospectively to all periods presented but
may
apply it prospectively if retrospective application would be impracticable. The provisions of this update are effective for fiscal years beginning after
December 15, 2017.
The Company adopted ASU
2016
-
15
effective
January 1, 2018.
The application of this guidance did
not
have a material impact on the condensed consolidated financial statements.
 
In
April 2015,
the FASB issued ASU
2015
-
14,
“Revenue from Contracts with Customers (Topic
606
): Deferral of the Effective Date,” which defers the effective date of ASU
2014
-
09.
The new standard introduces a
five
-step model to determine when and how revenue is recognized. The premise of the new model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard is effective for annual periods, and interim periods within those annual periods, beginning after
December 15, 2017.
Entities are allowed to transition to the new standard by either recasting prior periods or recognizing the cumulative effect. The Company adopted ASU
2014
-
09
effective
January 1, 2018
by using the modified retrospective transition approach and recognizing the cumulative effect of the change in retained earnings. The primary impact of adopting ASC
606
is the earlier recognition of revenue for loads that are in route as of the balance sheet date.  Prior to adopting ASC
606,
the Company recognized revenue and direct costs when shipments were delivered. Under ASC
606,
the Company is required to recognize revenue and related direct costs over time as the shipment is being delivered. ASC
606
also requires substantial new disclosures regarding the nature, amount, timing and uncertainty of recognized revenue, which are provided under the heading “Recognition of Revenue” above. The adoption of ASC
606
resulted in a cumulative positive adjustment to opening equity at
December 31, 2017
of approximately
$1.5
million.