Note 3 - Segment Information

6 Months Ended

Jun. 30, 2011

Segment Reporting Disclosure [Text Block]

Note 3.   Segment Information

We have two reportable segments: Asset-Based Truckload Services ("Truckload") and our Brokerage Services, also known as Covenant Transport Solutions, Inc. ("Solutions").

The Truckload segment consists of three asset-based operating fleets that are aggregated because they have similar economic characteristics and meet the aggregation criteria.  The three operating fleets that comprise our Truckload segment are as follows: (i) Covenant Transport, Inc. ("Covenant Transport"), our historical flagship operation, which provides expedited long-haul, dedicated, and regional solo-driver service; (ii) Southern Refrigerated Transportation, Inc. ("SRT"), which provides primarily long-haul and regional temperature-controlled service; and (iii) Star Transportation, Inc. ("Star"), which provides regional solo-driver service.

The Solutions segment provides freight brokerage services directly and through freight brokerage agents who are paid a commission for the freight they provide.  The brokerage operation has helped us continue to serve customers when we lacked capacity in a given area or when the load has not met the operating profile of our Truckload segment.

"Unallocated Corporate Overhead" includes expenses that are incidental to our activities and are not specifically allocated to one of the segments.

The following tables summarize our segment information:

(in thousands)	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Total Revenues:
Asset-Based Truckload Services	$	165,459		$	158,160		$	315,344		$	299,923
Brokerage Services		7,406			10,819			13,912			21,067
Total	$	172,865		$	168,979		$	329,256		$	320,990
Operating Income (Loss):
Asset-Based Truckload Services	$	12,124		$	13,751		$	15,273		$	18,799
Brokerage Services		251			295			830			706
Unallocated Corporate Overhead		(5,141	)		(4,004	)		(8,568	)		(7,647	)
Total	$	7,234		$	10,042		$	7,535		$	11,858