Note 5 - Segment Information

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 5. Segment Information

Until the second quarter of 2020, we had four reportable segments, Highway Services, Dedicated, Managed Freight, and Factoring Services. As discussed above, our Factoring reportable segment was classified as discontinued operations as of June 30, 2020. As of September 30, 2020, the segment formerly known as Highway Services is now reflected as Expedited, given the change in business mix surrounding the exit of the majority of the solo-refrigerated business in the second quarter of 2020. In addition, given management changes and growth, we have reported Warehousing as a separate reportable segment from Managed Freight. We believe the updated reportable segments reflect our service offerings, strategic direction, and how management, including our chief operating decision maker, monitors our performance.

Our four reportable segments include:

● Expedited: The Expedited segment primarily provides truckload services to customers with high service freight and 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.

● Dedicated: The Dedicated segment provides customers with committed truckload capacity over contracted periods with the goal of three to five years in length. Equipment is either owned or leased by the Company. Many of our Dedicated contract customers are automotive companies or shippers of produce, where the nature of the product we ship requires high service standards.

● Managed Freight: The Managed Freight segment includes our brokerage and transport management services (“TMS”). Brokerage services provide logistics capacity by outsourcing the carriage of customers’ freight to third parties. TMS provides comprehensive logistics services on a contractual basis to customers who prefer to outsource their logistics needs.

● Warehousing: The Warehousing segment 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 2020 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 four reportable segments, as used by our chief operating decision maker in making decisions regarding allocation of resources etc., for the three and six months ended June 30, 2021 and 2020:

(in thousands)
Three Months Ended June 30, 2021	Expedited		Dedicated			Managed Freight		Warehousing		Consolidated
Total revenue from external customers	$	87,369	$	81,868		$	71,635	$	15,452	$	256,324
Intersegment revenue		1,734		-			-		-		1,734
Operating income (loss)		10,225		(191	)		7,316		982		18,332

Six Months Ended June 30, 2021	Expedited		Dedicated			Managed Freight		Warehousing		Consolidated
Total revenue from external customers	$	165,849	$	157,314		$	123,032	$	31,018	$	477,213
Intersegment revenue		2,180		-			-		-		2,180
Operating income (loss)		16,436		(1,990	)		12,261		2,136		28,843

Three Months Ended June 30, 2020	Expedited			Dedicated			Managed Freight			Warehousing		Consolidated
Total revenue from external customers	$	79,778		$	65,940		$	34,362		$	11,609	$	191,689
Intersegment revenue		4,723			-			-			-		4,723
Operating (loss) income		(12,844	)		(13,177	)		(3,611	)		682		(28,950	)

Six Months Ended June 30, 2020	Expedited			Dedicated			Managed Freight			Warehousing		Consolidated
Total revenue from external customers	$	165,938		$	147,728		$	65,099		$	23,737	$	402,502
Intersegment revenue		7,603			-			-			-		7,603
Operating (loss) income		(14,396	)		(14,718	)		(2,946	)		1,656		(30,404	)

(in thousands)	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2021			2020			2021			2020
Total external revenues for reportable segments	$	256,324		$	191,689		$	477,213		$	402,502
Intersegment revenues for reportable segments		1,734			4,723			2,180			7,603
Elimination of intersegment revenues		(1,734	)		(4,723	)		(2,180	)		(7,603	)
Total consolidated revenues	$	256,324		$	191,689		$	477,213		$	402,502

Prior period segment results have been recast for internal reporting changes so that they are comparable to current period reporting.