Note 3 - Segment Information

6 Months Ended

Jun. 30, 2019

Segment Reporting Disclosure [Text Block]

Note

Segment Information

We have

two

reportable segments, Truckload, which is comprised of our truckload services, and Managed Freight, which provides freight brokerage and logistics services.

The Truckload segment consists of

four

service offerings that are aggregated because they have similar economic characteristics and meet the aggregation criteria. The

four

service offerings that comprise our Truckload segment are as follows: (i) Expedited, provided primarily by Covenant Transport, our historical flagship operation; (ii) Dedicated, provided by all of our operating fleets; (iii) Refrigerated, provided primarily through our Southern Refrigerated Transport, Inc. ("SRT") subsidiary; and (iv) over-the-road ("OTR"), provided primarily by our Landair Transport, Inc. subsidiary.

In addition, our Managed Freight segment has service offerings ancillary to our Truckload services, including: freight brokerage, transportation management services ("TMS"), and shuttle and switching services. These service offerings are aggregated due to similar margins and customers. Also included within Managed Freight are our warehousing and accounts receivable factoring businesses, neither of which meets the quantitative or qualitative reporting thresholds individually or in the aggregate.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies in our

2018

Annual Report on Form

-K. Substantially all intersegment sales prices are market based. We evaluate performance based on operating income of the respective business units.

The following table summarizes our revenue by our

two

reportable segments, Truckload and Managed Freight, disaggregated to the operating fleet level as used by our chief operating decision maker in making decisions regarding allocation of resources and assets, organized

first

by reportable segment (i.e. Truckload and Managed Freight) and then by operating fleet for the

three

and

six

months ended

June 30, 2019

and

2018:

(in thousands)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Total Revenues:

Truckload Segment:
Expedited	$	66,529	$	85,589	$	129,251	$	166,351
Dedicated		80,973		35,028		160,745		68,435
Refrigerated		23,134		-		48,739		-
OTR		4,772		50,094		9,334		90,473
Truckload Revenues		175,408		170,711		348,069		325,259

Managed Freight Segment:
Brokerage		20,277		24,489		44,583		42,582
TMS		9,431		-		17,801		-
Shuttle & Switching		3,562		-		7,298		-
Warehouse		8,362		-		16,622		-
Factoring		2,258		1,118		4,106		2,043
Managed Freight Revenues		43,890		25,607		90,410		44,625

Total	$	219,298	$	196,318	$	438,479	$	369,884