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Note 4 - Segment Information
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 4.

Segment Information

 

We have four reportable segments:

 

●

Expedited: The Expedited reportable segment primarily provides truckload services to customers with high service freight and delivery standards, such as 1,000 miles in 22 hours, or 15-minute delivery windows. Expedited services generally require two-person driver teams on equipment either owned or leased by the Company.

 

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Dedicated: The Dedicated reportable segment provides customers with committed truckload capacity over contracted periods with the goal of three to five years in length. Equipment is either owned or leased by the Company.

 

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Managed Freight: The Managed Freight reportable segment includes our brokerage and transport management services (“TMS”). Brokerage services provide logistics capacity by outsourcing the carriage of customers’ freight to third parties. TMS provides comprehensive logistics services on a contractual basis to customers who prefer to outsource their logistics needs.

 

●

Warehousing: The Warehousing reportable segment provides day-to-day warehouse management services to customers who have chosen to outsource this function. We also provide shuttle and switching services related to shuttling containers and trailers in or around freight yards and to/from warehouses.

 

The Company's chief operating decision maker ("CODM"), the Chief Executive Officer, evaluates the operating results through reportable segment operating income, which includes certain corporate overhead allocations directly attributable to each of the segments. We do not report our intersegment revenues by segment to our CODM and do not believe they are a meaningful metric for evaluating the performance of our reportable segments.

 

Each segment uses certain shared infrastructure and each segment is presented with its direct costs and an allocation of shared overhead costs. Insurance and claims expense is charged to the segments based on their historic claims experience and an allocation of current insurance premiums.

 

The CODM uses operating income for each segment in the annual budget and strategic planning process. The CODM considers budget-to-actual variances on a quarterly basis as well as month-over-month variances when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses segment operating income for evaluating pricing strategy, to assess the performance of each segment by comparing the results of each segment with one another, and in determining the compensation of certain employees.

 

The following table summarizes our total revenue by our four reportable segments, as used by our CODM in making decisions regarding allocation of resources etc., for the three months ended March 31, 2025 and 2024:

 

(in thousands)

                    

Year Ended March 31, 2025

 

Expedited

  

Dedicated

  

Managed Freight

  

Warehousing

  

Consolidated

 

Revenues

                    

Freight revenue

 $80,249  $82,080  $56,850  $24,040  $243,219 

Fuel surcharge revenue(1)

  14,444   11,529   -   163   26,136 

Total revenue

 $94,693  $93,609  $56,850  $24,203  $269,355 
                     

Operating expenses:

                    

Salaries, wages, and related expenses

  31,489   39,359   2,277   11,428     

Fuel expense

  14,934   13,086   -   175     

Operations and maintenance

  10,843   10,614   (57)  1,150     

Revenue equipment rentals and purchased transportation

  16,561   8,343   47,631   1,077     

Operating taxes and licenses

  336   608   57   790     

Insurance and claims

  6,574   4,993   132   207     

Communications and utilities

  -   163   10   241     

General supplies and expenses

  244   503   790   4,404     

Depreciation and amortization

  3   4,067   22   481     

Gain on disposition of property and equipment, net

  -   82   -   -     

Total allocated overhead

  8,118   9,706   2,447   2,408     

Segment operating expenses

  89,102   91,524   53,309   22,361   256,296 

Segment operating income

 $5,591  $2,085  $3,541  $1,842  $13,059 

Other operating loss (2)

                  (5,432)

Total consolidated operating income

                 $7,627 

 

(in thousands)

                    

Year Ended March 31, 2024

 

Expedited

  

Dedicated

  

Managed Freight

  

Warehousing

  

Consolidated

 

Revenues

                    

Freight revenue

 $86,600  $72,595  $62,917  $25,573  $247,685 

Fuel surcharge revenue(1)

  18,871   11,887   -   320   31,078 

Total revenue

 $105,471  $84,482  $62,917  $25,893  $278,763 
                     

Operating expenses:

                    

Salaries, wages, and related expenses

  34,787   31,494   1,976   12,119     

Fuel expense

  17,818   12,789   -   438     

Operations and maintenance

  9,864   8,865   146   1,340     

Revenue equipment rentals and purchased transportation

  16,910   7,875   54,603   1,301     

Operating taxes and licenses

  473   243   13   537     

Insurance and claims

  6,553   3,587   219   197     

Communications and utilities

  -   76   6   226     

General supplies and expenses

  229   572   747   3,997     

Depreciation and amortization

  8   2,366   21   379     

Gain on disposition of property and equipment, net

  -   47   -   -     

Total allocated overhead

  8,492   17,649   2,721   2,729     

Segment operating expenses

  95,134   85,563   60,452   23,263   264,412 

Segment operating income

 $10,337  $(1,081) $2,465  $2,630  $14,351 

Other operating loss (2)

                  (10,016)

Total consolidated operating income

                 $4,335 
(1)The CODM does not receive fuel surcharge revenue and fuel expense individually, but is provided with fuel expense less fuel surcharge revenue (other than the fuel surcharge revenue we reimburse to independent contractors and other third parties which is included in purchased transportation), which we refer to as net fuel expense. The CODM uses net fuel expense to measure the effectiveness of our fuel surcharge program.
(2)Other operating loss is attributable to unallocated corporate expenses.

 

Balance sheet data by reportable segment is not maintained by the Company.