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Business Segments
 3 Months Ended
Mar. 31, 2017
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 multimodal solutions including 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 corporate office in Dallas, TX, a temperature protected services division, Temstar, located in Oak Brook, IL and a corporate office 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, 2017

 

 

Ended March 31, 2016

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Revenue

$

677,132

 

$

241,874

 

$

(25,558

)

$

893,448

 

 

$

615,227

 

$

208,832

 

$

(18,200

)

$

805,859

 

Transportation costs

 

605,326

 

 

212,095

 

 

(25,558

)

 

791,863

 

 

 

536,073

 

 

179,599

 

 

(18,200

)

 

697,472

 

Gross margin

 

71,806

 

 

29,779

 

 

-

 

 

101,585

 

 

 

79,154

 

 

29,233

 

 

-

 

 

108,387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

39,596

 

 

3,583

 

 

-

 

 

43,179

 

 

 

40,096

 

 

3,767

 

 

-

 

 

43,863

 

Agent fees and commissions

 

17

 

 

17,976

 

 

-

 

 

17,993

 

 

 

13

 

 

16,888

 

 

-

 

 

16,901

 

General and administrative

 

18,479

 

 

2,345

 

 

-

 

 

20,824

 

 

 

14,722

 

 

1,922

 

 

-

 

 

16,644

 

Depreciation and amortization

 

2,109

 

 

303

 

 

-

 

 

2,412

 

 

 

1,815

 

 

321

 

 

-

 

 

2,136

 

Total costs and expenses

 

60,201

 

 

24,207

 

 

-

 

 

84,408

 

 

 

56,646

 

 

22,898

 

 

-

 

 

79,544

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

$

11,605

 

$

5,572

 

$

-

 

$

17,177

 

 

$

22,508

 

$

6,335

 

$

-

 

$

28,843

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

$

6,625

 

$

-

 

$

-

 

$

6,625

 

 

$

4,631

 

$

262

 

$

-

 

$

4,893

 

 

 

 

As of March 31, 2017

 

 

As of December 31, 2016

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Total assets

$

1,169,159

 

$

172,416

 

$

(6,636

)

$

1,334,939

 

 

$

1,178,110

 

$

191,374

 

$

(9,225

)

$

1,360,259

 

Goodwill

 

232,932

 

 

29,389

 

 

-

 

 

262,321

 

 

 

232,987

 

 

29,389

 

 

-

 

 

262,376

 

 

 

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

 

 

Three Months

 

 

Three Months

 

 

Ended March 31, 2017

 

 

Ended March 31, 2016

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Inter-

 

Hub

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

 

 

 

 

 

 

Segment

 

Group

 

 

Hub

 

Mode

 

Elims

 

Total

 

 

Hub

 

Mode

 

Elims

 

Total

 

Intermodal

$

424,596

 

$

122,203

 

$

(15,237

)

$

531,562

 

 

$

413,806

 

$

112,366

 

$

(17,949

)

$

508,223

 

Truck brokerage

 

106,664

 

 

78,178

 

 

(385

)

 

184,457

 

 

 

81,410

 

 

67,349

 

 

(27

)

 

148,732

 

Logistics

 

145,872

 

 

41,493

 

 

(9,936

)

 

177,429

 

 

 

120,011

 

 

29,117

 

 

(224

)

 

148,904

 

Total revenue

$

677,132

 

$

241,874

 

$

(25,558

)

$

893,448

 

 

$

615,227

 

$

208,832

 

$

(18,200

)

$

805,859