Discontinued Operations

6 Months Ended

Jun. 30, 2020

Discontinued Operations [Abstract]

Discontinued Operations

(2) Discontinued Operations

As discussed in Note 1, net assets of the logistics business of $6.6 million and $29.0 million were reclassified as held for sale as of June 30, 2020 and December 31, 2019, respectively, and the related operations of the logistics business were reclassified as discontinued operations in the accompanying unaudited consolidated statements of operations and cash flows. The net assets of the logistics business are expected to be sold before the end of 2020.

The Company’s held for sale assets and liabilities as of the dates indicated are made up as follows (in thousands):

	June 30,		December 31,
	2020		2019
Assets
Accounts receivable, net of allowance for doubtful accounts	$	10,815	$	15,601
Prepaid expenses and other assets		1,693		2,263
Goodwill		15,794		15,794
Intangible assets		3,318		4,123
Loss on classification as held for sale		(18,477)		-
Assets held for sale	$	13,143	$	37,781
Liabilities
Accounts payable	$	2,256	$	2,757
Accrued expenses and other current liabilities		4,261		5,995
Liabilities held for sale	$	6,517	$	8,752
Net assets	$	6,626	$	29,029

‎

The following table summarizes the components of loss from discontinued operations in the accompanying unaudited consolidated statements of income for the three and six months ended June 30, 2020 and 2019 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Revenue
Logistics revenue	$	22,648	$	29,802	$	52,754	$	57,518
Operating expenses
Logistics transportation costs		19,533		26,091		46,348		50,610
Administrative expenses		4,107		5,319		8,269		10,541
Loss on classification as held for sale		18,477		-		18,477		-
Total operating expenses		42,117		31,410		73,094		61,151
Operating loss		(19,469)		(1,608)		(20,340)		(3,633)
Interest income		(3)		(4)		(6)		(8)
Loss before income taxes		(19,466)		(1,604)		(20,334)		(3,625)
Income tax benefit		(2,884)		(383)		(3,088)		(872)
Net loss from discontinued operations	$	(16,582)	$	(1,221)	$	(17,246)	$	(2,753)

The loss on classification as held for sale for both the three and six months ended June 30, 2020 includes an impairment charge of $15.8 million and $2.3 million to reduce the book value of goodwill and intangible assets, respectively, to their estimated fair value based on estimated sale proceeds for the business. The net assets of the logistics business were classified within Level 3 of the fair value hierarchy.