REPORTABLE SEGMENTS

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

REPORTABLE SEGMENTS

NOTE 11 – REPORTABLE SEGMENTS

The Company evaluates the performance of the segments primarily based on their respective revenues and operating income. Accordingly, interest expense and other non-operating items are not reported in segment results. The Company has disclosed a corporate segment, which is not an operating segment and includes acquisition transaction expenses, corporate salaries, interest expense and other corporate administrative expenses and intersegment eliminations. In addition, the corporate segment, from time to time when advantageous to do so, purchases and resells certain revenue equipment. During the three months ended June 30, 2022, the corporate segment purchased $2.1 million in revenue equipment, which it resold for $2.2 million. During the six months ended June 30, 2022, the corporate segment purchased $6.7 million in revenue equipment, which it resold for $7.1 million. This resulted in gains of $0.1 million and $0.4 million for the three and six months ended June 30, 2022 and was recognized within Gain on disposition of property and equipment on the consolidated statements of operations. During the three and six months ended June 30, 2021, the corporate segment did not purchase or resell any revenue equipment.

The corporate segment also leases certain revenue equipment to the Company’s operating segments. Such leases are generally billed at estimated market rates, and the intersegment expenses included within operating income (loss) are eliminated in the Company’s consolidated results. Intersegment lease expenses for the Specialized Solutions segment totaled $0.1 million for the three and six months ended June 30, 2022. There were no intersegment lease expenses for the Flatbed Solutions segment for the three and six months ended June 30, 2022. There were no intersegment lease expenses in any reportable segments for the three and six months ended June 30, 2021.

The Company’s operating segments also provide transportation and related services for one another. Such services are generally billed at cost, and no profit is earned. Such intersegment revenues and expenses are eliminated in the Company’s consolidated results. Intersegment transportation and related services revenues and expenses for the Flatbed Solutions segment totaled $1.0 million and $1.8 million for the three and six months ended June 30, 2022, respectively. Intersegment transportation and related services revenues and expenses for the Flatbed Solutions segment totaled $0.9 million and $1.8 million for the three and six months ended June 30, 2021, respectively. Intersegment transportation and related services revenues and expenses for the Specialized Solutions segment totaled $2.6 million $4.5 million for the three and six months ended June 30, 2022, respectively. Intersegment transportation and related services revenues and expenses for the Specialized Solutions segment totaled $2.0 million and $4.3 million for the three and six months ended June 30, 2021, respectively.

The following tables reflect certain financial data of the Company’s reportable segments for the three and six months ended June 30, 2022 and 2021 (in millions):

	Flatbed			Specialized			Corporate/			Consolidated
	Solutions Segment			Solutions Segment			Eliminations			Total
Three Months Ended June 30, 2022
Total revenue	$	216.0		$	268.6		$	(3.3	)	$	481.3
Company freight		42.9			127.5			(2.6	)		167.8
Owner operator freight		90.2			48.2			(0.5	)		137.9
Brokerage		47.6			44.2			0.1			91.9
Logistics		1.1			12.9			—			14.0
Fuel surcharge		34.2			35.8			(0.3	)		69.7
Operating income (loss)		24.6			22.7			(14.5	)		32.8
Depreciation		8.6			11.9			0.5			21.0
Amortization of intangible assets		0.8			0.9			—			1.7
Restructuring		—			0.4			0.2			0.6
Non-cash operating lease expense		(0.1	)		—			—			(0.1	)
Interest expense		0.8			1.3			5.4			7.5
Capital expenditures		17.1			20.0			13.3			50.4
Three Months Ended June 30, 2021
Total revenue	$	180.9		$	226.1		$	(3.0	)	$	404.0
Company freight		47.7			118.3			(2.4	)		163.6
Owner operator freight		88.9			40.7			(0.5	)		129.1
Brokerage		25.3			41.5			(0.1	)		66.7
Logistics		1.3			9.3			0			10.7
Fuel surcharge		17.7			16.3			(0.1	)		33.9
Operating income (loss)		22.9			29.0			(6.6	)		45.3
Depreciation		8.1			12.1			0.2			20.4
Amortization of intangible assets		0.8			1.0			—			1.8
Restructuring		—			0.1			—			0.1
Non-cash operating lease expense		(0.1	)		(0.3	)		—			(0.4	)
Interest expense		0.9			1.3			5.4			7.6
Capital expenditures		7.7			13.5			6.4			27.6

	Flatbed			Specialized			Corporate/			Consolidated
	Solutions Segment			Solutions Segment			Eliminations			Total
Six Months Ended June 30, 2022
Total revenue	$	411.1		$	497.1		$	(5.9	)	$	902.3
Company freight		84.4			244.0			(4.6	)		323.8
Owner operator freight		178.3			90.3			(0.9	)		267.7
Brokerage		88.8			81.3			—			170.1
Logistics		2.0			23.4			—			25.4
Fuel surcharge		57.6			58.1			(0.4	)		115.3
Operating income (loss)		40.5			40.3			(29.8	)		51.0
Depreciation		16.9			23.3			0.7			40.9
Amortization of intangible assets		1.5			1.9			—			3.4
Restructuring		—			0.5			0.7			1.2
Non-cash operating lease expense		(0.1	)		—			—			(0.1	)
Interest expense		1.6			2.5			10.5			14.6
Capital expenditures		20.4			27.9			18.2			66.5
Six Months Ended June 30, 2021
Total revenue	$	334.4		$	409.8		$	(6.3	)	$	737.9
Company freight		92.4			221.1			(4.8	)		308.7
Owner operator freight		159.9			75.3			(1.0	)		234.2
Brokerage		47.5			68.1			(0.4	)		115.2
Logistics		2.5			16.5			0.2			19.2
Fuel surcharge		32.1			28.8			(0.3	)		60.6
Operating income (loss)		33.9			39.5			(20.0	)		53.4
Depreciation		16.1			24.2			0.6			40.9
Amortization of intangible assets		1.5			2.0			—			3.5
Restructuring		—			0.1			—			0.1
Non-cash operating lease expense		(0.2	)		(0.6	)		—			(0.8	)
Interest expense		2.6			3.4			12.7			18.7
Capital expenditures		16.7			24.1			6.4			47.2

A measure of assets is not applicable, as segment assets are not regularly reviewed by the chief operating decision maker for evaluating performance or allocating resources.