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Business Segments
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Business Segments

 

NOTE 2.

Business Segments

We report two distinct business segments. The first segment is Mode, which includes the Mode Transportation, LLC (“Mode LLC”) business we acquired on April 1, 2011.  The second segment is Hub, which is all business other than Mode.

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 LLC has Independent Business Owners (“IBOs”) who sell and operate the business throughout North America, as well as sales only agents.  Mode LLC 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 LLC markets and operates its freight transportation services, consisting of intermodal, truck brokerage and logistics, primarily through agents who enter into contractual arrangements with Mode LLC.

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, 2016

 

 

Ended March 31, 2015

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Revenue

$

615,227

 

$

208,832

 

$

(18,200

)

$

805,859

 

 

$

643,443

 

$

213,522

 

$

(21,024

)

$

835,941

 

Transportation costs

 

536,073

 

 

179,599

 

 

(18,200

)

 

697,472

 

 

 

580,258

 

 

187,579

 

 

(21,024

)

 

746,813

 

Gross margin

 

79,154

 

 

29,233

 

 

-

 

 

108,387

 

 

 

63,185

 

 

25,943

 

 

-

 

 

89,128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

40,096

 

 

3,767

 

 

-

 

 

43,863

 

 

 

35,660

 

 

3,816

 

 

-

 

 

39,476

 

Agent fees and commissions

 

13

 

 

16,888

 

 

-

 

 

16,901

 

 

 

15

 

 

14,811

 

 

-

 

 

14,826

 

General and administrative

 

14,722

 

 

1,922

 

 

-

 

 

16,644

 

 

 

12,198

 

 

1,873

 

 

-

 

 

14,071

 

Depreciation and amortization

 

1,815

 

 

321

 

 

-

 

 

2,136

 

 

 

1,618

 

 

342

 

 

-

 

 

1,960

 

Total costs and expenses

 

56,646

 

 

22,898

 

 

-

 

 

79,544

 

 

 

49,491

 

 

20,842

 

 

-

 

 

70,333

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

$

22,508

 

$

6,335

 

$

-

 

$

28,843

 

 

$

13,694

 

$

5,101

 

$

-

 

$

18,795

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

$

4,631

 

$

262

 

$

-

 

$

4,893

 

 

$

14,998

 

$

59

 

$

-

 

$

15,057

 

 

 

 

As of March 31, 2016

 

 

As of December 31, 2015

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Total assets

$

1,105,289

 

$

164,742

 

$

(5,385

)

$

1,264,646

 

 

$

1,127,042

 

$

181,514

 

$

(7,410

)

$

1,301,146

 

Goodwill

 

233,151

 

 

29,389

 

 

-

 

 

262,540

 

 

 

233,205

 

 

29,389

 

 

-

 

 

262,594

 

 

 

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

 

 

 

Three Months

 

 

Three Months

 

 

Ended March 31, 2016

 

 

Ended March 31, 2015

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Intermodal

$

413,806

 

$

112,366

 

$

(17,949

)

$

508,223

 

 

$

420,952

 

$

110,692

 

$

(20,409

)

$

511,235

 

Truck brokerage

 

81,410

 

 

67,349

 

 

(27

)

 

148,732

 

 

 

89,291

 

 

74,352

 

 

(165

)

 

163,478

 

Logistics

 

120,011

 

 

29,117

 

 

(224

)

 

148,904

 

 

 

133,200

 

 

28,478

 

 

(450

)

 

161,228

 

Total revenue

$

615,227

 

$

208,832

 

$

(18,200

)

$

805,859

 

 

$

643,443

 

$

213,522

 

$

(21,024

)

$

835,941