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Business Segments
 3 Months Ended
Mar. 31, 2015
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, Canada 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, Canada 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 Oak Brook, 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 March 31, 2015

 

 

Ended March 31, 2014

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Revenue

$

643,443

 

$

213,522

 

$

(21,024

)

$

835,941

 

 

$

653,409

 

$

208,906

 

$

(13,866

)

$

848,449

 

Transportation costs

 

580,258

 

 

187,579

 

 

(21,024

)

 

746,813

 

 

 

588,912

 

 

184,659

 

 

(13,866

)

 

759,705

 

Gross margin

 

63,185

 

 

25,943

 

 

-

 

 

89,128

 

 

 

64,497

 

 

24,247

 

 

-

 

 

88,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

35,660

 

 

3,816

 

 

-

 

 

39,476

 

 

 

33,337

 

 

3,755

 

 

-

 

 

37,092

 

Agent fees and commissions

 

15

 

 

14,811

 

 

-

 

 

14,826

 

 

 

11

 

 

13,655

 

 

-

 

 

13,666

 

General and administrative

 

12,198

 

 

1,873

 

 

-

 

 

14,071

 

 

 

13,739

 

 

1,693

 

 

-

 

 

15,432

 

Depreciation and amortization

 

1,618

 

 

342

 

 

-

 

 

1,960

 

 

 

1,517

 

 

541

 

 

-

 

 

2,058

 

Total costs and expenses

 

49,491

 

 

20,842

 

 

-

 

 

70,333

 

 

 

48,604

 

 

19,644

 

 

-

 

 

68,248

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

$

13,694

 

$

5,101

 

$

-

 

$

18,795

 

 

$

15,893

 

$

4,603

 

$

-

 

$

20,496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

$

14,998

 

$

59

 

$

-

 

$

15,057

 

 

$

32,880

 

$

155

 

$

-

 

$

33,035

 

 

 

 

 

As of March 31, 2015

 

 

As of December 31, 2014

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Total assets

$

1,050,296

 

$

178,407

 

$

(6,376

)

$

1,222,327

 

 

$

1,030,722

 

$

189,787

 

$

(8,382

)

$

1,212,127

 

Goodwill

 

233,370

 

 

29,389

 

 

-

 

 

262,759

 

 

 

233,424

 

 

29,389

 

 

-

 

 

262,813

 

 

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

 

 

Three Months

 

 

Three Months

 

 

Ended March 31, 2015

 

 

Ended March 31, 2014

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Intermodal

$

420,952

 

$

110,692

 

$

(20,409

)

$

511,235

 

 

$

435,432

 

$

100,436

 

$

(13,202

)

$

522,666

 

Truck brokerage

 

89,291

 

 

74,352

 

 

(165

)

 

163,478

 

 

 

83,967

 

 

78,523

 

 

(445

)

 

162,045

 

Logistics

 

133,200

 

 

28,478

 

 

(450

)

 

161,228

 

 

 

134,010

 

 

29,947

 

 

(219

)

 

163,738

 

Total revenue

$

643,443

 

$

213,522

 

$

(21,024

)

$

835,941

 

 

$

653,409

 

$

208,906

 

$

(13,866

)

$

848,449