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Note 4 - Segment Information
 9 Months Ended
Sep. 30, 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.

 

●

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. The Dedicated reportable segment also provides shuttle and switching services related to shuttling containers and trailers in or around freight yards and to/from warehouses for Dedicated customers.

 

●

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. The Warehousing reportable segment also provides shuttle and switching services related to shuttling containers and trailers in or around freight yards and to/from warehouses for Warehousing customers.

 

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 certain 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 and nine months ended September 30, 2025 and 2024:

 

(in thousands)

                                        

Three Months Ended September 30, 2025

  

Expedited

    

Dedicated

    

Managed Freight

    

Warehousing

    

Total

  

Revenues

                                        

Freight revenue

   $ 80,184     $ 91,581     $ 72,220     $ 24,802     $ 268,787  

Fuel surcharge revenue(1)

     14,448       13,439       -       162       28,049  

Subtotal operating revenues

   $ 94,632     $ 105,020     $ 72,220     $ 24,964     $ 296,836  

Other revenues

                                     53  

Total revenue

                                   $ 296,889  
                                         

Operating expenses:

                                        

Salaries, wages, and related expenses

     30,756       43,760       2,758       12,044          

Fuel expense

     14,584       14,690       -       167          

Operations and maintenance

     10,099       12,667       689       1,471          

Revenue equipment rentals and purchased transportation

     17,742       8,453       62,545       1,052          

Operating taxes and licenses

     356       667       18       383          

Insurance and claims

     6,647       5,057       205       220          

Communications and utilities

     -       196       7       249          

General supplies and expenses

     235       482       769       4,161          

Depreciation and amortization

     1       4,369       22       461          

Loss on disposition of property and equipment, net

     -       (63 )     -       -          

Total allocated overhead

     9,133       10,643       2,247       2,258          

Segment operating expenses

     89,553       100,921       69,260       22,466       282,200  

Subtotal operating income

   $ 5,079     $ 4,099     $ 2,960     $ 2,498     $ 14,689  

Other (2)

                                     (6,763 )

Total consolidated operating income

                                     7,926  

Interest expense, net

                                     (3,468 )

Income from equity method investment

                                     3,578  

Income before income taxes

                                   $ 8,036  

 

(in thousands)

                                        

Three Months Ended September 30, 2024

  

Expedited

    

Dedicated

    

Managed Freight

    

Warehousing

    

Total

  

Revenues

                                        

Freight revenue

   $ 87,363     $ 82,676     $ 63,385     $ 25,175     $ 258,599  

Fuel surcharge revenue(1)

     16,951       12,039       -       296       29,286  

Subtotal operating revenues

   $ 104,314     $ 94,715     $ 63,385     $ 25,471     $ 287,885  

Other revenues

                                     -  

Total revenue

                                   $ 287,885  
                                         

Operating expenses:

                                        

Salaries, wages, and related expenses

     33,750       36,873       2,756       11,589          

Fuel expense

     15,469       12,686       -       347          

Operations and maintenance

     10,182       8,998       968       1,374          

Revenue equipment rentals and purchased transportation

     16,571       7,361       53,067       1,241          

Operating taxes and licenses

     358       461       11       506          

Insurance and claims

     6,638       4,176       428       203          

Communications and utilities

     -       140       5       224          

General supplies and expenses

     256       486       766       4,329          

Depreciation and amortization

     4       3,317       21       455          

Gain on disposition of property and equipment, net

     -       (132 )     -       -          

Total allocated overhead

     8,814       9,555       2,417       2,452          

Segment operating expenses

     92,042       83,921       60,439       22,720       259,122  

Segment operating income

   $ 12,272     $ 10,794     $ 2,946     $ 2,751     $ 28,763  

Other (2)

                                     (12,528 )

Total consolidated operating income

                                     16,235  

Interest expense, net

                                     (3,204 )

Income from equity method investment

                                     3,993  

Income before income taxes

                                   $ 17,024  

 

(in thousands)

                                        

Nine Months Ended September 30, 2025

  

Expedited

    

Dedicated

    

Managed Freight

    

Warehousing

    

Total

  

Revenues

                                        

Freight revenue

   $ 243,662     $ 263,827     $ 206,620     $ 74,429     $ 788,538  

Fuel surcharge revenue(1)

     42,963       37,079       -       465       80,507  

Subtotal operating revenues

   $ 286,625     $ 300,906     $ 206,620     $ 74,894     $ 869,045  

Other revenues

                                     53  

Total revenue

                                   $ 869,098  
                                         

Operating expenses:

                                        

Salaries, wages, and related expenses

     94,398       125,160       7,880       35,822          

Fuel expense

     43,854       41,328       -       498          

Operations and maintenance

     31,263       34,581       1,195       4,154          

Revenue equipment rentals and purchased transportation

     51,439       26,027       176,734       3,302          

Operating taxes and licenses

     1,033       1,927       84       1,732          

Insurance and claims

     19,964       15,221       361       666          

Communications and utilities

     1       583       25       716          

General supplies and expenses

     704       1,616       2,444       13,308          

Depreciation and amortization

     4       12,658       65       1,419          

Loss on disposition of property and equipment, net

     -       225       -       -          

Total allocated overhead

     25,830       29,308       6,870       7,019          

Segment operating expenses

     268,490       288,634       195,658       68,636       821,418  

Segment operating income

   $ 18,135     $ 12,272     $ 10,962     $ 6,258     $ 47,680  

Other (2)

                                     (20,564 )

Total consolidated operating income

                                     27,116  

Interest expense, net

                                     (8,795 )

Income from equity method investment

                                     11,622  

Income before income taxes

                                   $ 29,943  

 

(in thousands)

                                        

Nine Months Ended September 30, 2024

  

Expedited

    

Dedicated

    

Managed Freight

    

Warehousing

    

Total

  

Revenues

                                        

Freight revenue

   $ 262,881     $ 237,124     $ 186,668     $ 76,123     $ 762,796  

Fuel surcharge revenue(1)

     54,914       35,538       -       897       91,349  

Subtotal operating revenues

   $ 317,795     $ 272,662     $ 186,668     $ 77,020     $ 854,145  

Other revenues

                             -  

Total revenue

                           $ 854,145  
                                         

Operating expenses:

                                        

Salaries, wages, and related expenses

     103,673       104,485       6,819       35,270          

Fuel expense

     50,028       37,589       -       1,155          

Operations and maintenance

     30,050       27,110       1,149       4,092          

Revenue equipment rentals and purchased transportation

     50,892       22,634       158,638       3,671          

Operating taxes and licenses

     1,310       1,002       34       1,794          

Insurance and claims

     19,968       11,830       676       601          

Communications and utilities

     1       315       16       669          

General supplies and expenses

     704       1,605       2,267       12,679          

Depreciation and amortization

     19       8,557       63       1,291          

Gain on disposition of property and equipment, net

     -       (170 )     -       -          

Total allocated overhead

     25,177       26,283       7,523       7,262          

Segment operating expenses

     281,822       241,240       177,185       68,484       768,731  

Segment operating income

   $ 35,973     $ 31,422     $ 9,483     $ 8,536     $ 85,414  

Other (2)

                                     (49,267 )

Total consolidated operating income

                                     36,147  

Interest expense, net

                                     (10,341 )

Income from equity method investment

                                     11,763  

Income before income taxes

                                   $ 37,569  

 

(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 represents indirect costs not directly attributable to any one reportable segment, amortization of intangible assets, and contingent consideration liability adjustments to match the information our CODM uses to evaluate the operating results of our reportable segments.

 

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