REPORTABLE SEGMENTS

6 Months Ended

Jun. 30, 2020

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS

NOTE 15 – 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. In addition, 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.

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 revenues and expenses for the Flatbed Solutions segment totaled $1.8 million and $2.5 million for the three months ended June 30, 2020 and 2019, respectively, and $3.5 million and $4.6 million for the six months ended June 30, 2020 and 2019, respectively. Intersegment revenues and expenses for the Specialized Solutions segment totaled $4.8 million and $2.0 million for the three months ended June 30, 2020 and 2019, respectively, and $7.5 million and $4.1 million for the six months ended June 30, 2020 and 2019, respectively.

Certain insurance costs have been allocated to the operating segments beginning January 1, 2020, which were included in the corporate segment in 2019. Insurance costs included in the corporate segment for the three and six months ended June 30, 2019 were $1.4 million and $2.2 million, respectively, for the Flatbed Solutions segment and $4.9 million and $5.9 million, respectively, for the Specialized Solutions segment.

The following tables reflect certain financial data of the Company’s reportable segments for the three and six months ended June 30, 2020 and 2019 (in millions):

	Flatbed		Specialized
	Solutions		Solutions		Corporate/		Consolidated
	Segment		Segment		Eliminations		Total
Three Months Ended June 30, 2020
Total revenue	$	137.2	$	221.5	$	(7.0)	$	351.7
Company freight		48.9		121.6		(3.5)		167.0
Owner operator freight		60.1		38.3		(2.4)		96.0
Brokerage		15.5		43.1		(0.7)		57.9
Logistics		0.7		8.1		—		8.8
Fuel surcharge		12.0		10.4		(0.4)		22.0
Operating income (loss)		10.7		14.5		(12.8)		12.4
Depreciation		8.5		12.2		0.3		21.0
Amortization of intangible assets		0.8		1.0		—		1.8
Restructuring		0.2		2.8		—		3.0
Non-cash operating lease expense		1.2		(1.4)		—		(0.2)
Interest expense		2.4		2.8		5.8		11.0
Income (loss) before income tax		8.5		12.5		(18.4)		2.6
Total assets		341.2		605.0		187.8		1,134.0
Capital expenditures		9.2		21.4		—		30.6
Three Months Ended June 30, 2019
Total revenue	$	174.9	$	280.7	$	(5.0)	$	450.6
Company freight		55.0		154.5		(2.6)		206.9
Owner operator freight		73.4		49.6		(1.3)		121.7
Brokerage		25.7		47.7		(0.6)		72.8
Logistics		0.6		12.5		—		13.1
Fuel surcharge		20.2		16.4		(0.5)		36.1
Operating income (loss)		6.1		11.1		(12.5)		4.7
Depreciation		12.3		23.4		0.1		35.8
Amortization of intangible assets		1.3		2.6		—		3.9
Non-cash operating lease expense		3.1		3.5		0.1		6.7
Interest expense		2.7		3.3		6.7		12.7
Income (loss) before income tax		3.5		8.1		(18.7)		(7.1)
Total assets		501.5		932.4		69.1		1,503.0
Capital expenditures		15.8		14.8		0.4		31.0

	Flatbed		Specialized
	Solutions		Solutions		Corporate/		Consolidated
	Segment		Segment		Eliminations		Total
Six Months Ended June 30, 2020
Total revenue	$	292.4	$	461.9	$	(11.6)	$	742.7
Company freight		100.2		253.7		(6.0)		347.9
Owner operator freight		126.3		81.0		(3.5)		203.8
Brokerage		35.0		86.0		(1.4)		119.6
Logistics		1.5		17.3		0.1		18.9
Fuel surcharge		29.4		23.9		(0.8)		52.5
Operating income (loss)		19.3		8.0		(23.2)		4.1
Depreciation		16.8		28.1		0.6		45.5
Amortization of intangible assets		1.6		2.0		—		3.6
Impairment		—		13.4		—		13.4
Restructuring		0.2		3.3		—		3.5
Non-cash operating lease expense		2.1		0.6		—		2.7
Interest expense		4.9		5.9		12.2		23.0
Income (loss) before income tax		14.6		1.8		(35.0)		(18.6)
Capital expenditures		17.0		27.9		—		44.9
Six Months Ended June 30, 2019
Total revenue	$	343.0	$	550.2	$	(9.6)	$	883.6
Company freight		110.2		308.4		(5.5)		413.1
Owner operator freight		142.0		93.3		(2.6)		232.7
Brokerage		51.1		93.7		(0.6)		144.2
Logistics		1.3		24.2		—		25.5
Fuel surcharge		38.4		30.6		(0.9)		68.1
Operating income (loss)		9.4		18.8		(22.8)		5.4
Depreciation		25.4		47.4		0.2		73.0
Amortization of intangible assets		3.0		5.2		—		8.2
Non-cash operating lease expense		5.5		7.6		0.2		13.3
Interest expense		5.3		6.6		13.5		25.4
Income (loss) before income tax		4.4		13.1		(35.8)		(18.3)
Capital expenditures		30.5		28.5		1.0		60.0