v3.26.1
Note 4 - Segment Information
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 4.

Segment Information

 

We have four reportable segments:

 

●

Expedited: The Expedited reportable 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 reportable 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. The Dedicated reportable segment also provides shuttle and switching services related to shuttling containers and trailers in or around freight yards and to/from warehouses for Dedicated customers.

 

●

Managed Freight: The Managed Freight reportable 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 reportable segment provides day-to-day warehouse management services to customers who have chosen to outsource this function. The Warehousing reportable segment also provides shuttle and switching services related to shuttling containers and trailers in or around freight yards and to/from warehouses for Warehousing customers.

 

The Company's chief operating decision maker ("CODM"), the Chief Executive Officer, evaluates the operating results through reportable segment operating income, which includes certain corporate overhead allocations directly attributable to each of the segments. We do not report our intersegment revenues by segment to our CODM and do not believe they are a meaningful metric for evaluating the performance of our reportable segments.

 

Each segment uses certain shared infrastructure and each segment is presented with its direct costs and an allocation of certain shared overhead costs. Insurance and claims expense is charged to the segments based on their historic claims experience and an allocation of current insurance premiums.

 

The CODM uses operating income for each segment in the annual budget and strategic planning process. The CODM considers budget-to-actual variances on a quarterly basis as well as month-over-month variances when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses segment operating income for evaluating pricing strategy, to assess the performance of each segment by comparing the results of each segment with one another, and in determining the compensation of certain employees.

 

The following table summarizes our total revenue by our four reportable segments, as used by our CODM in making decisions regarding allocation of resources etc., for the three and six months ended June 30, 2026 and 2025:

 

(in thousands)

                    

Three Months Ended June 30, 2026

 

Expedited

  

Dedicated

  

Managed Freight

  

Warehousing

  

Total

 

Revenues

                    

Freight revenue

 $73,742  $94,020  $99,542  $26,722  $294,026 

Fuel surcharge revenue(1)

  19,678   18,346   -   156   38,180 

Subtotal operating revenues

 $93,420  $112,366  $99,542  $26,878  $332,206 

Other revenues

                  667 

Total revenue

                 $332,873 
                     

Operating expenses:

                    

Salaries, wages, and related expenses

  27,631   44,748   3,931   13,823     

Fuel expense

  18,189   19,094   -   245     

Operations and maintenance

  8,924   11,701   765   1,828     

Revenue equipment rentals and purchased transportation

  14,825   6,956   88,802   1,109     

Operating taxes and licenses

  273   742   13   430     

Insurance and claims

  6,312   5,589   706   246     

Communications and utilities

  1   226   34   292     

General supplies and expenses

  452   400   1,165   4,062     

Depreciation and amortization

  -   4,924   102   425     

Loss on disposition of property and equipment, net

  -   13   -   -     

Total allocated overhead

  8,427   10,195   2,285   2,844     

Segment operating expenses

  85,034   104,588   97,803   25,304   312,729 

Subtotal operating income

 $8,386  $7,778  $1,739  $1,574  $20,144 

Other (2)

                  (11,303)

Total consolidated operating income

                  8,841 

Interest expense, net

                  (2,981)

Income from equity method investment

                  5,265 

Income before income taxes

                 $11,125 

 

(in thousands)

                    

Three Months Ended June 30, 2025

 

Expedited

  

Dedicated

  

Managed Freight

  

Warehousing

  

Total

 

Revenues

                    

Freight revenue

 $83,229  $90,166  $77,550  $25,587  $276,532 

Fuel surcharge revenue(1)

  14,071   12,111   -   140   26,322 

Subtotal operating revenues

 $97,300  $102,277  $77,550  $25,727  $302,854 

Other revenues

                  - 

Total revenue

                 $302,854 
                     

Operating expenses:

                    

Salaries, wages, and related expenses

  32,153   42,041   2,844   12,350     

Fuel expense

  14,335   13,552   -   156     

Operations and maintenance

  10,322   11,300   563   1,534     

Revenue equipment rentals and purchased transportation

  17,136   9,230   66,558   1,173     

Operating taxes and licenses

  341   652   9   559     

Insurance and claims

  6,743   5,170   25   239     

Communications and utilities

  -   224   8   227     

General supplies and expenses

  225   631   885   4,742     

Depreciation and amortization

  1   4,222   22   476     

Gain on disposition of property and equipment, net

  -   207   -   -     

Total allocated overhead

  8,578   8,835   2,174   2,355     

Segment operating expenses

  89,834   96,064   73,088   23,811   282,797 

Segment operating income

 $7,466  $6,213  $4,462  $1,916  $20,057 

Other (2)

                  (8,494)

Total consolidated operating income

                  11,563 

Interest expense, net

                  (2,470)

Income from equity method investment

                  4,268 

Income before income taxes

                 $13,361 

 

(in thousands)

                    

Six Months Ended June 30, 2026

 

Expedited

  

Dedicated

  

Managed Freight

  

Warehousing

  

Total

 

Revenues

                    

Freight revenue

 $145,691  $185,084  $190,273  $54,274  $575,322 

Fuel surcharge revenue(1)

  32,400   30,705   -   311   63,416 

Subtotal operating revenues

 $178,091  $215,789  $190,273  $54,585  $638,738 

Other revenues

                  1,296 

Total revenue

                 $640,034 
                     

Operating expenses:

                    

Salaries, wages, and related expenses

  55,655   88,992   7,103   28,563     

Fuel expense

  32,699   33,256   -   463     

Operations and maintenance

  18,225   22,811   1,266   3,682     

Revenue equipment rentals and purchased transportation

  29,907   14,154   168,172   2,305     

Operating taxes and licenses

  561   1,463   45   869     

Insurance and claims

  12,962   11,199   1,174   489     

Communications and utilities

  1   447   68   670     

General supplies and expenses

  807   794   2,394   8,010     

Depreciation and amortization

  1   9,798   201   848     

Loss on disposition of property and equipment, net

  -   13   -   -     

Total allocated overhead

  16,066   19,497   4,408   5,334     

Segment operating expenses

  166,884   202,424   184,831   51,233   605,372 

Segment operating income

 $11,207  $13,365  $5,442  $3,352  $34,662 

Other (2)

                  (19,539)

Total consolidated operating income

                  15,123 

Interest expense, net

                  (6,867)

Income from equity method investment

                  8,952 

Income before income taxes

                 $17,208 

 

(in thousands)

                    

Six Months Ended June 30, 2025

 

Expedited

  

Dedicated

  

Managed Freight

  

Warehousing

  

Total

 

Revenues

                    

Freight revenue

 $163,478  $172,246  $134,400  $49,627  $519,751 

Fuel surcharge revenue(1)

  28,515   23,640   -   303   52,458 

Subtotal operating revenues

 $191,993  $195,886  $134,400  $49,930  $572,209 

Other revenues

                  - 

Total revenue

                 $572,209 
                     

Operating expenses:

                    

Salaries, wages, and related expenses

  63,642   81,400   5,122   23,777     

Fuel expense

  29,270   26,662   -   331     

Operations and maintenance

  21,165   21,915   506   2,683     

Revenue equipment rentals and purchased transportation

  33,697   17,574   114,189   2,251     

Operating taxes and licenses

  677   1,260   66   1,349     

Insurance and claims

  13,317   10,163   157   446     

Communications and utilities

  1   387   18   467     

General supplies and expenses

  469   1,134   1,675   9,146     

Depreciation and amortization

  3   8,289   43   957     

Gain on disposition of property and equipment, net

  -   288   -   -     

Total allocated overhead

  16,696   18,554   4,622   4,763     

Segment operating expenses

  178,937   187,626   126,398   46,170   539,131 

Segment operating income

 $13,056  $8,260  $8,002  $3,760  $33,078 

Other (2)

                  (13,888)

Total consolidated operating income

                  19,190 

 

(1)The CODM does not receive fuel surcharge revenue and fuel expense individually, but is provided with fuel expense less fuel surcharge revenue (other than the fuel surcharge revenue we reimburse to independent contractors and other third parties which is included in purchased transportation), which we refer to as net fuel expense. The CODM uses net fuel expense to measure the effectiveness of our fuel surcharge program.
(2)Other represents indirect costs not directly attributable to any one reportable segment, amortization of intangible assets, and contingent consideration liability adjustments to match the information our CODM uses to evaluate the operating results of our reportable segments.

 

Balance sheet data by reportable segment is not maintained by the Company.