Note 2 - Restatement - Accounting for Leases

6 Months Ended

Dec. 31, 2011

Capital Leases in Financial Statements of Lessee Disclosure [Text Block]

2. Restatement- Accounting for Leases

The Company has restated most of its revenue equipment operating leases as capital leases based upon certain provisions included in the lease agreements. Specifically, the leases have certain default clauses, including material adverse change, cross-default provisions, and other provisions which are not objectively determinable or do not represent pre-defined criteria at the inception of the lease. As a result, the maximum consideration the Company could be required to pay the lessor in the event of a default is included in the lease payments for lease classification purposes at the inception of the lease. For these leases, the maximum consideration usually approximates or exceeds the cost of the revenue equipment at the inception of the lease and, when included in minimum lease payments for purposes of applying ASC 840-10-25-1(d) (i.e., the 90% test), results in capital lease classification, in accordance with the guidance for default covenants related to non-performance as discussed in ASC 840-10-25-14.

As a result of the restatement, the Company has recorded additional capital lease assets and related capital lease obligations on the consolidated balance sheets. The Company also adjusted its deferred income tax liability to take into account the temporary differences created to reflect the capital lease obligations and assets for financial reporting purposes. Lease payments related to this revenue equipment are now recognized as principal reductions in the capital lease obligations and interest expense, rather than as revenue equipment rent expense. The consolidated statements of income also include depreciation on the capital lease assets over the terms of the respective leases.

In addition, the Company has reclassified the rental payments received for equipment rented to third parties from a reduction in the revenue equipment rental classification to freight revenue as part of the restatement. The reclassification of rents has no impact on net income.

The restatement also impacted opening stockholders equity and the classification of cash flows from operating, investing and financing activities; however, there was no impact on the net increase or decrease in cash and cash equivalents reported in the consolidated statements of cash flows.

The adjustment to net income for the three and sixth months ended December 31, 2011 and 2010, is summarized below (amounts in thousands):

	For the three months ended December 31,						For the six months ended December 31,
	2011			2010			2011			2010
Net income as previously reported:	$	5,448		$	2,858		$	10,820		$	7,279
Freight revenue		2,686			2,652			5,166			4,882
Revenue equipment rentals		5,336			6,689			10,272			13,908
Depreciation and amortization		(6,647	)		(7,207	)		(12,584	)		(14,907	)
Interest expense		(1,364	)		(1,701	)		(2,703	)		(3,497	)
Tax effect on restatement adjustment		(4	)		(165	)		(58	)		(147	)
Net income, as restated	$	5,455		$	3,126		$	10,913		$	7,518

The impact of the restatement on the consolidated financial statements is summarized below (amounts in thousands except per share amounts):

	December 31, 2011				June 30, 2011
Consolidated Balance Sheets	As Previously Reported		As Restated		As Previously Reported		As Restated
Property and equipment	$	247,991	$	476,971	$	213,222	$	418,698
Less accumulated depreciation and amortization		76,319		130,505		80,592		141,584
Net property and equipment		171,672		346,466		132,630		277,114
Total assets		315,577		490,371		272,182		416,666

Current maturities of capital lease obligations		363		65,380		354		75,521
Total current liabilities		64,683		129,700		66,001		141,168
Capital lease obligations, net of current maturities		1,556		112,307		1,740		72,182
Deferred income taxes		35,229		34,962		31,740		31,416
Retained Earnings		92,297		91,589		82,367		81,566
Total stockholders' equity		179,578		178,871		172,701		171,900
Total liabilities and stockholders' equity		315,577		490,371		272,182		416,666

	Three months ended December 31,				Three months ended December 31,
	2011				2010
Consolidated Statements of Income	As Previously Reported		As Restated		As Previously Reported		As Restated
Freight revenue	$	112,379	$	115,065	$	111,553	$	114,205
Total revenue		141,514		144,200		133,131		135,783
Revenue equipment rentals		6,269		933		6,728		39
Depreciation and amortization		5,766		12,413		6,769		13,976
Total operating expenses		133,076		134,387		127,495		128,013
Operating income		8,438		9,813		5,636		7,770
Interest expense		160		1,524		565		2,266
Income before income taxes		8,533		8,544		5,165		5.598
Provision for income taxes		3,085		3,089		2,307		2,472
Net income		5,448		5,455		2,858		3,126
Diluted income per common share	$	0.24	$	0.24	$	0.13	$	0.14
Basic income per common share	$	0.24	$	0.25	$	0.13	$	0.14

	Six months ended December 31,				Six months ended December 31,
	2011				2010
Consolidated Statements of Income	As Previously Reported		As Restated		As Previously Reported		As Restated
Freight revenue	$	224,676	$	229,842	$	231,023	$	235,905
Total revenue		282,993		288,159		273,420		278,302
Revenue equipment rentals		12,178		1,906		14,277		369
Depreciation and amortization		11,360		23,944		14,296		29,203
Total operating expenses		265,627		267,939		259,703		260,702
Operating income		17,366		20,220		13,717		17,600
Interest expense		203		2,906		1,027		4,524
Income before income taxes		17,713		17,864		12,867		13,253
Provision for income taxes		6,893		6,951		5,588		5,735
Net income		10,820		10,913		7,279		7,518
Diluted income per common share	$	0.48	$	0.48	$	0.32	$	0.33
Basic income per common share	$	0.49	$	0.49	$	0.33	$	0.34

	Six months ended December 31,						Six months ended December 31,
	2011						2010
	As Previously Reported			As Restated			As Previously Reported			As Restated
Consolidated Statements of Cash Flows:
Net income	$	10,820		$	10,913		$	7,279		$	7,518
Depreciation and amortization expense		13,941			26,526			15,411			30,318
Deferred income taxes		3,583			3,640			(133	)		14
Net cash provided by operating activities		25,978			38,713			22,709			38,002
Purchase of property and equipment		(88,446	)		(64,121	)		(34,342	)		(22,193	)
Net cash used in investing activities		(83,395	)		(59,090	)		(13,320	)		(1,171	)
Principal payments under capital lease obligations		(175	)		(37,215	)		(16,319	)		(43,761	)
Net cash provided by (used in) financing activities		33,945			(3,095	)		(16,425	)		(43,867	)
Interest paid in cash during the period		160			2,864			1,078			4,579
Lease obligation incurred in the purchase of equipment		---			67,200			---			5,060