Note 4 - Segment Information

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 4. Segment Information

Until the second quarter of 2020, we had four reportable segments, Highway Services, Dedicated, Managed Freight, and Factoring. As discussed in Note 3, our Factoring reportable segment was classified as discontinued operations as of June 30, 2020.

Our remaining reportable segments are as follows:

● Highway Services: Includes the Company’s Expedited and OTR services, which are typically ad-hoc and do not include long-term contracts.

o Expedited services primarily involves high service freight with delivery standards, such as 1,000 miles in 22 hours, or 15-minute delivery windows. Expedited services generally require two-person driver teams on equipment either owned or leased by the Company.

o OTR services provide customers with one-way load capacity over irregular routes for loads that are typically shorter in nature.

● Dedicated: Specializes in providing customers with committed capacity over extended contract periods using equipment either owned or leased by the Company.

● Managed Freight: Includes the Company’s Brokerage, TMS and Warehousing services.

o Brokerage services provide logistics capacity by outsourcing the carriage of customers’ freight to contractual third parties.

o TMS provides comprehensive logistics services on a contractual basis to customers who prefer to outsource their logistics needs.

o Warehousing services provides day-to-day warehouse management services to customers who have chosen to outsource this function.

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in our 2019 Form 10-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 total revenue by our three reportable segments, disaggregated to the service offering level, as used by our chief operating decision maker in making decisions regarding allocation of resources etc., organized first by reportable segment and then by service offering for the three and six months ended June 30, 2020 and 2019:

(in thousands)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Revenues:
Highway Services
Expedited	$	67,907	$	65,230	$	135,503	$	126,852
OTR		11,871		24,433		30,435		51,139
Total Highway Services		79,778		89,663		165,938		177,991
Dedicated		65,940		85,745		147,728		170,078
Managed Freight:
Brokerage		28,443		20,277		50,222		44,583
TMS		5,919		9,431		14,877		17,801
Warehousing		11,609		11,924		23,737		23,920
Total Managed Freight		45,971		41,632		88,836		86,304
Total revenues	$	191,689	$	217,040	$	402,502	$	434,373