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Business Segments
 9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
Business Segments

NOTE 2. Business Segments

We report two business segments, Hub and Mode, based on the way we manage, evaluate and internally report our business activities.

Hub offers comprehensive intermodal, truck brokerage and logistics services. Our employees operate the freight through a network of operating centers located in the United States and Mexico. Each operating center is strategically located in a market with a significant concentration of shipping customers and one or more railheads. Hub has full time employees located throughout the United States and Mexico.

Mode has independent business owners who sell and operate the business throughout North America, as well as sales only agents. Mode also has a company managed operation and corporate offices in Dallas, TX, a temperature protected services division, Temstar, located in Downers Grove, IL and corporate offices in Memphis, TN.

Mode markets and operates its freight transportation services, consisting of intermodal, truck brokerage and logistics, primarily through agents who enter into contractual arrangements with Mode.

 

The following is a summary of operating results and certain other financial data for our business segments (in thousands):

 

    Three Months     Three Months  
    Ended September 30, 2013     Ended September 30, 2012  
                Inter-     Hub                 Inter-     Hub  
                Segment     Group                 Segment     Group  
    Hub     Mode     Elims     Total     Hub     Mode     Elims     Total  

Revenue

   $ 678,573      $ 217,424      $ (13,016 )    $ 882,981      $ 619,336      $ 199,903      $ (14,351 )    $ 804,888   

Transportation costs

     611,344        191,529        (13,016 )      789,857        552,071        175,581        (14,351 )      713,301   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross margin

     67,229        25,895        —          93,124        67,265        24,322        —          91,587   

Costs and expenses:

                

Salaries and benefits

     28,274        3,614        —          31,888        27,852        3,533        —          31,385   

Agent fees and commissions

     425        14,132        —          14,557        401        13,409        —          13,810   

General and administrative

     12,065        1,692        —          13,757        12,566        1,864        —          14,430   

Depreciation and amortization

     1,088        539        —          1,627        1,118        493        —          1,611   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total costs and expenses

     41,852        19,977        —          61,829        41,937        19,299        —          61,236   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

   $ 25,377      $ 5,918      $ —        $ 31,295      $ 25,328      $ 5,023      $ —        $ 30,351   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Capital expenditures

   $ 26,834      $ 43      $ —        $ 26,877      $ 11,853      $ 1,775      $ —        $ 13,628   

The following tables summarize our revenue by segment and business line (in thousands):

 

    Three Months     Three Months  
    Ended September 30, 2013     Ended September 30, 2012  
                Inter-     Hub                 Inter-     Hub  
                Segment     Group                 Segment     Group  
    Hub     Mode     Elims     Total     Hub     Mode     Elims     Total  

Intermodal

   $ 466,849      $ 102,105      $ (11,962 )    $ 556,992      $ 444,760      $ 92,552      $ (13,240 )    $ 524,072   

Truck brokerage

     88,281        81,708        (549 )      169,440        87,782        79,746        (717 )      166,811   

Logistics

     123,443        33,611        (505 )      156,549        86,794        27,605        (394 )      114,005   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenue

   $ 678,573      $ 217,424      $ (13,016 )    $ 882,981      $ 619,336      $ 199,903      $ (14,351 )    $ 804,888   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

    Nine Months     Nine Months  
    Ended September 30, 2013     Ended September 30, 2012  
                Inter-     Hub                 Inter-     Hub  
                Segment     Group                 Segment     Group  
    Hub     Mode     Elims     Total     Hub     Mode     Elims     Total  

Revenue

   $ 1,916,149      $ 608,802      $ (36,305 )    $ 2,488,646      $ 1,778,436      $ 581,378      $ (36,729 )    $ 2,323,085   

Transportation costs

     1,712,314        536,702        (36,305 )      2,212,711        1,584,844        512,283        (36,729 )      2,060,398   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross margin

     203,835        72,100        —          275,935        193,592        69,095        —          262,687   

Costs and expenses:

                

Salaries and benefits

     90,259        11,214        —          101,473        84,523        11,597        —          96,120   

Agent fees and commissions

     1,223        40,294        —          41,517        1,526        39,580        —          41,106   

General and administrative

     37,101        4,575        —          41,676        34,004        5,737        —          39,741   

Depreciation and amortization

     3,169        1,604        —          4,773        3,338        1,670        —          5,008   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total costs and expenses

     131,752        57,687        —          189,439        123,391        58,584        —          181,975   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

   $ 72,083      $ 14,413      $ —        $ 86,496      $ 70,201      $ 10,511      $ —        $ 80,712   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Capital expenditures

   $ 64,989      $ 1,090      $ —        $ 66,079      $ 32,175      $ 2,496      $ —        $ 34,671   

The following tables summarize our revenue by segment and business line (in thousands):

 

    Nine Months     Nine Months  
    Ended September 30, 2013     Ended September 30, 2012  
                Inter-     Hub                 Inter-     Hub  
                Segment     Group                 Segment     Group  
    Hub     Mode     Elims     Total     Hub     Mode     Elims     Total  

Intermodal

   $ 1,342,656      $ 284,056      $ (34,280 )    $ 1,592,432      $ 1,280,825      $ 260,823      $ (33,414 )    $ 1,508,234   

Truck brokerage

     255,688        234,551        (1,110 )      489,129        247,900        241,062        (2,259 )      486,703   

Logistics

     317,805        90,195        (915 )      407,085        249,711        79,493        (1,056 )      328,148   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenue

   $ 1,916,149      $ 608,802      $ (36,305 )    $ 2,488,646      $ 1,778,436      $ 581,378      $ (36,729 )    $ 2,323,085   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

    As of September 30, 2013     As of December 31, 2012  
                Inter-     Hub                 Inter-     Hub  
                Segment     Group                 Segment     Group  
    Hub     Mode     Elims     Total     Hub     Mode     Elims     Total  

Total assets

   $ 898,806      $ 168,822      $ (3,822 )    $ 1,063,806      $ 759,797      $ 163,719      $ (3,663 )    $ 919,853   

Goodwill

   $ 233,698      $ 29,389      $ —        $ 263,087      $ 233,862      $ 29,389      $ —        $ 263,251