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Business Segments
 9 Months Ended
Sep. 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 September 30, 2015

 

 

Ended September 30, 2014

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Revenue

$

680,559

 

$

239,375

 

$

(20,065

)

$

899,869

 

 

$

691,835

 

$

245,421

 

$

(23,870

)

$

913,386

 

Transportation costs

 

606,081

 

 

208,789

 

 

(20,065

)

 

794,805

 

 

 

627,752

 

 

216,308

 

 

(23,870

)

 

820,190

 

Gross margin

 

74,478

 

 

30,586

 

 

-

 

 

105,064

 

 

 

64,083

 

 

29,113

 

 

-

 

 

93,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

32,917

 

 

3,440

 

 

-

 

 

36,357

 

 

 

27,428

 

 

3,440

 

 

-

 

 

30,868

 

Agent fees and commissions

 

14

 

 

17,848

 

 

-

 

 

17,862

 

 

 

15

 

 

16,577

 

 

-

 

 

16,592

 

General and administrative

 

13,659

 

 

1,802

 

 

-

 

 

15,461

 

 

 

12,144

 

 

1,724

 

 

-

 

 

13,868

 

Depreciation and amortization

 

1,647

 

 

319

 

 

-

 

 

1,966

 

 

 

1,627

 

 

340

 

 

-

 

 

1,967

 

Driver settlement and related costs

 

-

 

 

-

 

 

-

 

 

-

 

 

 

10,343

 

 

-

 

 

-

 

 

10,343

 

Impairment of software

 

-

 

 

-

 

 

-

 

 

-

 

 

 

11,881

 

 

-

 

 

-

 

 

11,881

 

Total costs and expenses

 

48,237

 

 

23,409

 

 

-

 

 

71,646

 

 

 

63,438

 

 

22,081

 

 

-

 

 

85,519

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

$

26,241

 

$

7,177

 

$

-

 

$

33,418

 

 

$

645

 

$

7,032

 

$

-

 

$

7,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

$

15,817

 

$

1,418

 

$

-

 

$

17,235

 

 

$

29,287

 

$

151

 

$

-

 

$

29,438

 

 

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

 

 

Three Months

 

 

Three Months

 

 

Ended September 30, 2015

 

 

Ended September 30, 2014

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Intermodal

$

459,921

 

$

124,009

 

$

(18,699

)

$

565,231

 

 

$

460,935

 

$

123,438

 

$

(22,626

)

$

561,747

 

Truck brokerage

 

83,828

 

 

80,612

 

 

(696

)

 

163,744

 

 

 

84,208

 

 

87,420

 

 

(181

)

 

171,447

 

Logistics

 

136,810

 

 

34,754

 

 

(670

)

 

170,894

 

 

 

146,692

 

 

34,563

 

 

(1,063

)

 

180,192

 

Total revenue

$

680,559

 

$

239,375

 

$

(20,065

)

$

899,869

 

 

$

691,835

 

$

245,421

 

$

(23,870

)

$

913,386

 

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

 

 

Nine Months

 

 

Nine Months

 

 

Ended September 30, 2015

 

 

Ended September 30, 2014

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Revenue

$

2,010,453

 

$

686,744

 

$

(61,874

)

$

2,635,323

 

 

$

2,027,293

 

$

685,865

 

$

(57,393

)

$

2,655,765

 

Transportation costs

 

1,800,628

 

 

600,648

 

 

(61,874

)

 

2,339,402

 

 

 

1,828,014

 

 

604,619

 

 

(57,393

)

 

2,375,240

 

Gross margin

 

209,825

 

 

86,096

 

 

-

 

 

295,921

 

 

 

199,279

 

 

81,246

 

 

-

 

 

280,525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

103,865

 

 

10,805

 

 

-

 

 

114,670

 

 

 

92,812

 

 

10,704

 

 

-

 

 

103,516

 

Agent fees and commissions

 

43

 

 

49,331

 

 

-

 

 

49,374

 

 

 

31

 

 

45,771

 

 

-

 

 

45,802

 

General and administrative

 

39,051

 

 

5,244

 

 

-

 

 

44,295

 

 

 

38,701

 

 

5,280

 

 

-

 

 

43,981

 

Depreciation and amortization

 

4,912

 

 

981

 

 

-

 

 

5,893

 

 

 

4,682

 

 

1,220

 

 

-

 

 

5,902

 

Driver settlement and related costs

 

-

 

 

-

 

 

-

 

 

-

 

 

 

10,343

 

 

-

 

 

-

 

 

10,343

 

Impairment of software

 

-

 

 

-

 

 

-

 

 

-

 

 

 

11,881

 

 

-

 

 

-

 

 

11,881

 

Total costs and expenses

 

147,871

 

 

66,361

 

 

-

 

 

214,232

 

 

 

158,450

 

 

62,975

 

 

-

 

 

221,425

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

$

61,954

 

$

19,735

 

$

-

 

$

81,689

 

 

$

40,829

 

$

18,271

 

$

-

 

$

59,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

$

39,365

 

$

1,586

 

$

-

 

$

40,951

 

 

$

75,390

 

$

491

 

$

-

 

$

75,881

 

 

 

 

As of September 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

$

1,108,594

 

$

178,457

 

$

(6,090

)

$

1,280,961

 

 

$

1,030,722

 

$

189,787

 

$

(8,382

)

$

1,212,127

 

Goodwill

 

233,260

 

 

29,389

 

 

-

 

 

262,649

 

 

 

233,424

 

 

29,389

 

 

-

 

 

262,813

 

 

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

 

Nine Months

 

 

Nine Months

 

 

Ended September 30, 2015

 

 

Ended September 30, 2014

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Intermodal

$

1,345,776

 

$

352,822

 

$

(59,066

)

$

1,639,532

 

 

$

1,352,130

 

$

337,618

 

$

(54,865

)

$

1,634,883

 

Truck brokerage

 

266,187

 

 

237,655

 

 

(1,278

)

 

502,564

 

 

 

254,582

 

 

252,480

 

 

(717

)

 

506,345

 

Logistics

 

398,490

 

 

96,267

 

 

(1,530

)

 

493,227

 

 

 

420,581

 

 

95,767

 

 

(1,811

)

 

514,537

 

Total revenue

$

2,010,453

 

$

686,744

 

$

(61,874

)

$

2,635,323

 

 

$

2,027,293

 

$

685,865

 

$

(57,393

)

$

2,655,765