Note 11 - Federal and State Income Taxes

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Text Block]

11.      Federal and State Income Taxes

Significant components of the Company’s deferred tax assets and liabilities are as follows:

	(in thousands)
	December 31,
	2012			2011
Current deferred tax assets:
Accrued expenses not deductible until paid	$	3,885		$	2,766
Equity Incentive Plan		266			299
Revenue recognition		277			229
Allowance for doubtful accounts		162			161
Other		16			15
Total current deferred tax assets		4,606			3,470
Current deferred tax liabilities:
Prepaid expenses deductible when paid		(5,910	)		(5,163	)
Total current deferred tax liabilities		(5,910	)		(5,163	)
Net current deferred tax liabilities	$	(1,304	)	$	(1,693	)
Noncurrent deferred tax assets:
Non-compete agreement		41			63
Net operating loss carryforwards		16,452			12,551
Total noncurrent deferred tax assets		16,493			12,614
Noncurrent deferred tax liabilities:
Tax over book depreciation		(52,237	)		(57,612	)
Capitalized leases		(215	)		(157	)
Other		6			(38	)
Total noncurrent deferred tax liabilities		(52,446	)		(57,807	)
Net noncurrent deferred tax liabilities	$	(35,953	)	$	(45,193	)

The Company's federal net operating loss carryforwards are currently available to offset future federal taxable income, if any, and will expire during the period 2029 through 2032. Approximately $8.1 million of the Company’s state net operating loss carryforwards will expire during the period 2014 through 2023 and approximately $37.0 million will expire during the period 2024 through 2032. The Company expects to fully utilize these net operating loss carryforwards in future years before they expire.

Significant components of the provision (benefits) for income taxes are as follows:

	(in thousands)
	Year Ended December 31,
	2012			2011
Current:
Federal	$	--		$	--
State		--			--
Total current		--			--
Deferred:
Federal		(7,943	)		(4,113	)
State		(1,646	)		(852	)
Total deferred		(9,589	)		(4,965	)
Total income tax (benefit) expense	$	(9,589	)	$	(4,965	)

A reconciliation between the effective income tax rate and the statutory federal income tax rate is as follows:

	(in thousands)
	Year Ended December 31,
	2012			2011
Income tax (benefit) expense at statutory federal rate	$	(9,268	)	$	(5,352	)
Federal income tax effects of:
State income tax expense		558			290
Per diem and other nondeductible meals and entertainment		748			900
Other		19			49
Federal income tax (benefit) expense		(7,943	)		(4,113	)
State income tax (benefit) expense		(1,646	)		(852	)
Total income tax (benefit) expense	$	(9,589	)	$	(4,965	)
Effective tax rate		35.2	%		31.5	%

The effective rates varied from the statutory federal tax rate primarily due to state income taxes and certain non-deductible expenses including a per diem pay structure for drivers.  Due to the partially nondeductible effect of per diem pay, the Company’s tax rate will fluctuate in future periods based on fluctuations in earnings and in the number of drivers who elect to receive this pay structure.