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Business Segments
 6 Months Ended
Jun. 30, 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 June 30, 2015

 

 

Ended June 30, 2014

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Revenue

$

686,451

 

$

233,847

 

$

(20,785

)

$

899,513

 

 

$

682,049

 

$

231,538

 

$

(19,657

)

$

893,930

 

Transportation costs

 

614,289

 

 

204,280

 

 

(20,785

)

 

797,784

 

 

 

611,351

 

 

203,651

 

 

(19,657

)

 

795,345

 

Gross margin

 

72,162

 

 

29,567

 

 

-

 

 

101,729

 

 

 

70,698

 

 

27,887

 

 

-

 

 

98,585

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

35,288

 

 

3,549

 

 

-

 

 

38,837

 

 

 

32,047

 

 

3,509

 

 

-

 

 

35,556

 

Agent fees and commissions

 

14

 

 

16,672

 

 

-

 

 

16,686

 

 

 

5

 

 

15,539

 

 

-

 

 

15,544

 

General and administrative

 

13,194

 

 

1,569

 

 

-

 

 

14,763

 

 

 

12,817

 

 

1,864

 

 

-

 

 

14,681

 

Depreciation and amortization

 

1,647

 

 

320

 

 

-

 

 

1,967

 

 

 

1,538

 

 

339

 

 

-

 

 

1,877

 

Total costs and expenses

 

50,143

 

 

22,110

 

 

-

 

 

72,253

 

 

 

46,407

 

 

21,251

 

 

-

 

 

67,658

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

$

22,019

 

$

7,457

 

$

-

 

$

29,476

 

 

$

24,291

 

$

6,636

 

$

-

 

$

30,927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

$

8,550

 

$

109

 

$

-

 

$

8,659

 

 

$

13,223

 

$

185

 

$

-

 

$

13,408

 

 

The following table summarizes our revenue by segment and business line (in thousands) for the quarter ended June 30:

 

Three Months

 

 

Three Months

 

 

Ended June 30, 2015

 

 

Ended June 30, 2014

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Intermodal

$

464,904

 

$

118,121

 

$

(19,958

)

$

563,067

 

 

$

455,763

 

$

113,744

 

$

(19,037

)

$

550,470

 

Truck brokerage

 

93,067

 

 

82,691

 

 

(417

)

 

175,341

 

 

 

86,407

 

 

86,537

 

 

(91

)

 

172,853

 

Logistics

 

128,480

 

 

33,035

 

 

(410

)

 

161,105

 

 

 

139,879

 

 

31,257

 

 

(529

)

 

170,607

 

Total revenue

$

686,451

 

$

233,847

 

$

(20,785

)

$

899,513

 

 

$

682,049

 

$

231,538

 

$

(19,657

)

$

893,930

 

 

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

 

 

Six Months

 

 

Six Months

 

 

Ended June 30, 2015

 

 

Ended June 30, 2014

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Revenue

$

1,329,894

 

$

447,369

 

$

(41,809

)

$

1,735,454

 

 

$

1,335,458

 

$

440,444

 

$

(33,523

)

$

1,742,379

 

Transportation costs

 

1,194,547

 

 

391,859

 

 

(41,809

)

 

1,544,597

 

 

 

1,200,262

 

 

388,311

 

 

(33,523

)

 

1,555,050

 

Gross margin

 

135,347

 

 

55,510

 

 

-

 

 

190,857

 

 

 

135,196

 

 

52,133

 

 

-

 

 

187,329

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

70,948

 

 

7,365

 

 

-

 

 

78,313

 

 

 

65,384

 

 

7,264

 

 

-

 

 

72,648

 

Agent fees and commissions

 

29

 

 

31,483

 

 

-

 

 

31,512

 

 

 

16

 

 

29,194

 

 

-

 

 

29,210

 

General and administrative

 

25,392

 

 

3,442

 

 

-

 

 

28,834

 

 

 

26,557

 

 

3,556

 

 

-

 

 

30,113

 

Depreciation and amortization

 

3,265

 

 

662

 

 

-

 

 

3,927

 

 

 

3,055

 

 

880

 

 

-

 

 

3,935

 

Total costs and expenses

 

99,634

 

 

42,952

 

 

-

 

 

142,586

 

 

 

95,012

 

 

40,894

 

 

-

 

 

135,906

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

$

35,713

 

$

12,558

 

$

-

 

$

48,271

 

 

$

40,184

 

$

11,239

 

$

-

 

$

51,423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

$

23,548

 

$

168

 

$

-

 

$

23,716

 

 

$

46,103

 

$

340

 

$

-

 

$

46,443

 

 

 

 

As of June 30, 2015

 

 

As of December 31, 2014

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Total assets

$

1,073,007

 

$

184,957

 

$

(5,916

)

$

1,252,048

 

 

$

1,030,722

 

$

189,787

 

$

(8,382

)

$

1,212,127

 

Goodwill

 

233,315

 

 

29,389

 

 

-

 

 

262,704

 

 

 

233,424

 

 

29,389

 

 

-

 

 

262,813

 

 

The following table summarizes our revenue by segment and business line (in thousands) for the six months ended June 30:

 

 

Six Months

 

 

Six Months

 

 

Ended June 30, 2015

 

 

Ended June 30, 2014

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Intermodal

$

885,855

 

$

228,813

 

$

(40,367

)

$

1,074,301

 

 

$

891,195

 

$

214,180

 

$

(32,239

)

$

1,073,136

 

Truck brokerage

 

182,359

 

 

157,043

 

 

(582

)

 

338,820

 

 

 

170,374

 

 

165,060

 

 

(536

)

 

334,898

 

Logistics

 

261,680

 

 

61,513

 

 

(860

)

 

322,333

 

 

 

273,889

 

 

61,204

 

 

(748

)

 

334,345

 

Total revenue

$

1,329,894

 

$

447,369

 

$

(41,809

)

$

1,735,454

 

 

$

1,335,458

 

$

440,444

 

$

(33,523

)

$

1,742,379