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Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting

NOTE 4. Segment Reporting

 

Our CEO has been identified as our Chief Operating Decision Maker (“CODM”). We have two reportable segments: Intermodal and Transportation Solutions (“ITS”) and Logistics which are based primarily on the services each segment provides. Our ITS segment includes our asset-light business lines: intermodal and dedicated trucking. Our Logistics segment includes our non-asset business lines: managed transportation, truck brokerage, final mile and consolidation and fulfillment services. Our CODM uses operating income by segment to make decisions over the allocation of capital and resources and assess the performance of our segments.

 

Intermodal and Transportation Solutions. Our ITS segment offers high service, nationwide door-to-door intermodal transportation, providing value, visibility and reliability in both transcontinental and local lanes by combining rail transportation with local trucking. This segment includes our trucking operations which provides our customers with local pickup and delivery (referred to as “drayage”) as well as high service local and regional trucking transportation using equipment dedicated to their needs. We arrange for the movement of our customers’ freight in one of our approximately 50,000 containers. As of March 31, 2025, we operated trucking terminals at 32 locations throughout the United States and Mexico, with locations in many large metropolitan areas. We also contract for services with independent owner-operators who supply their own equipment and operate under our regulatory authority. These assets and contractual services are used to support drayage for our intermodal service offering and to serve our customers who require high service local and regional trucking transportation using equipment dedicated to their needs. We contract with railroads to provide transportation for the long-haul portion of the shipment between rail terminals. Drayage between origin or destination and rail terminals are provided by our own trucking operations and third parties with whom we contract. Our dedicated service operation offers fleets of equipment and drivers to each customer on a contract basis, as well as the management and infrastructure to operate according to the customer’s high service expectations. As of March 31, 2025, our trucking transportation operation consisted of approximately 2,300 tractors, 3,300 employee drivers and 4,600 trailers. We also contract for services with approximately 500 independent owner-operators.

 

Logistics. Our Logistics segment offers a wide range of services including transportation management, freight brokerage services, shipment optimization, load consolidation, mode selection, carrier management, load planning and execution, warehousing, fulfillment, cross-docking, consolidation services and final mile delivery. These services include a full range of trucking transportation services, including dry van, expedited, less-than-truckload, refrigerated and flatbed, all of which is provided by third party carriers with whom we contract. We also leverage proprietary technology along with collaborative relationships with third party service providers to deliver cost savings and performance-enhancing supply chain services to our clients. Our transportation management offering also serves as a source of volume for our ITS segment. Many of the customers for these solutions are consumer goods companies who sell into the retail channel. Our final mile delivery offering provides residential final mile delivery and installation of appliances and big and bulky goods. Final mile operates through a network of independent service providers in company, customer and third-party facilities throughout the continental United States. Our business operates or has access to approximately 7 million square feet of warehousing and cross-dock space across North America, to which our customers ship their goods to be stored and distributed to destinations including residences, retail stores and other commercial locations. These services offer our customers shipment visibility, transportation cost savings, high service and compliance with retailers’ increasingly stringent supply chain requirements. Logistics also includes our brokerage business which provides third-party truckload, less-than-truckload (“LTL”), flatbed and temperature-controlled needs.

 

The following tables summarize our financial and operating data by segment (in thousands):

 

 

 

 

 

 

Inter-Segment

 

 

 

Three Months Ended March 31, 2024

ITS

 

Logistics

 

Eliminations

 

Total

 

 

 

 

 

 

 

 

 

 

Operating revenue

$

552,033

 

$

480,224

 

$

(32,764

)

$

999,493

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

   Purchased transportation and warehousing

 

388,205

 

 

384,425

 

 

(32,430

)

 

 

   Salaries and benefits

 

85,401

 

 

34,708

 

 

-

 

 

 

   Depreciation and amortization

 

24,057

 

 

8,821

 

 

-

 

 

 

   Insurance and claims

 

9,842

 

 

1,785

 

 

(334

)

 

 

   General and administrative

 

6,843

 

 

5,836

 

 

-

 

 

 

   Corporate allocations

 

25,155

 

 

20,541

 

 

-

 

 

 

   (Gain) / loss on sale of assets, net

 

(501

)

 

-

 

 

-

 

 

 

Total operating expenses

 

539,002

 

 

456,116

 

 

(32,764

)

 

962,354

 

 

 

 

 

 

 

 

 

 

Operating income

$

13,031

 

$

24,108

 

$

-

 

$

37,139

 

 

 

 

 

 

 

 

Inter-Segment

 

 

 

Three Months Ended March 31, 2025

ITS

 

Logistics

 

Eliminations

 

Total

 

 

 

 

 

 

 

 

 

 

Operating revenue

$

530,022

 

$

411,001

 

$

(25,807

)

$

915,216

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

   Purchased transportation and warehousing

 

363,915

 

 

319,520

 

 

(25,513

)

 

 

   Salaries and benefits

 

89,531

 

 

34,856

 

 

-

 

 

 

   Depreciation and amortization

 

18,950

 

 

8,286

 

 

-

 

 

 

   Insurance and claims

 

8,899

 

 

1,591

 

 

(294

)

 

 

   General and administrative

 

8,571

 

 

4,487

 

 

-

 

 

 

   Corporate allocations

 

26,172

 

 

18,972

 

 

-

 

 

 

   (Gain) / loss on sale of assets, net

 

(65

)

 

-

 

 

-

 

 

 

Total operating expenses

 

515,973

 

 

387,712

 

 

(25,807

)

 

877,878

 

 

 

 

 

 

 

 

 

 

Operating income

$

14,049

 

$

23,289

 

$

-

 

$

37,338

 

 

Revenue from external customers attributable to the United States was $890.5 million and $999.4 million for the three months ended March 31, 2025 and March 31, 2024, respectively. Revenue attributable to Mexico was $24.7 million and $0.1 million for the three months ended March 31, 2025 and March 31, 2024, respectively.

 

Separate balance sheets are not presented by segment to our Chief Operating Decision Maker (“CODM”). Our CODM uses consolidated asset information to make capital decisions.