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Note 9 - Equity Method Investment
 3 Months Ended
Mar. 31, 2012
Equity Method Investments and Joint Ventures Disclosure [Text Block]
Note 9.              Equity Method Investment

On May 31, 2011, we acquired a 49.0% interest in Transport Enterprise Leasing, LLC ("TEL") for $1.5 million in cash. Additionally, TEL’s majority owners are eligible to receive an earn-out of up to $4.5 million over two years, of which $1.0 million is included in accrued expenses at March 31, 2012 and December 31, 2011 on the consolidated balance sheet related to amounts due TEL’s majority owners as a result of its 2011 earnings.  Any earn-out payments will increase our investment balance should they be required. TEL is a tractor and trailer equipment leasing company and used equipment reseller. We have not guaranteed any of TEL’s debt and have no obligation to provide funding or assets. Under the agreement, we have an option to acquire 100% of TEL between January 1, 2013 and May 31, 2016, by purchasing the majority owners’ interest based on a multiple of TEL’s average earnings before income and taxes, adjusted for certain items including cash and debt balances as of the acquisition date. Subsequent to May 31, 2016, TEL’s majority owners’ have the option to acquire our interest based on the same terms detailed above. During the three month period ended March 31, 2012, we sold tractors and trailers to TEL for $4.1 million and deferred $0.3 million in gains on the tractors and trailers sold to TEL until the equipment is subsequently sold to a third party.  The deferred gains are being carried as a reduction in our investment in TEL.  At March 31, 2012 and December 31, 2011, we had a receivable from TEL for $1.0 million and $0.6 million related to cash disbursements made pursuant to a cash management agreement and related to providing various maintenance services, certain back-office functions and for miscellaneous equipment.

We have accounted for our investment in TEL using the equity method of accounting and thus our financial results include our proportionate share of TEL’s 2012 net income, or $0.2 million. Our investment in TEL, totaling $2.3 million, net of $0.9 million of deferred gains, and $2.4 million, net of $0.6 million of deferred gains, at March 31, 2012 and December 31, 2011, respectively, is included in other assets in the accompanying consolidated condensed balance sheets.

See TEL’s summarized financial information below.

 (in thousands)
 
As of and
for the three
months ended
March 31, 2012
 
Current Assets
  $ 4,007  
Non-current Assets
    17,698  
Current Liabilities
    2,037  
Non-current Liabilities
    17,984  
Total Equity
    1,684  
         
Revenue
  $ 13,283  
Operating Expenses
    12,585  
Operating Income
    698  
Net Income
  $ 500