Note 10 - Federal and State Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

10.     Federal and State Income Taxes

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

	(in thousands)
	Year Ended December 31,
	2013			2012
Current deferred tax assets:
Accrued expenses not deductible until paid	$	7,648		$	3,885
Equity Incentive Plan		282			266
Revenue recognition		330			277
Allowance for doubtful accounts		234			162
Other		452			16
Total current deferred tax assets		8,946			4,606
Current deferred tax liabilities:
Prepaid expenses deductible when paid		(6,159	)		(5,910	)
Total current deferred tax liabilities		(6,159	)		(5,910	)
Net current deferred tax assets (liabilities)	$	2,787		$	(1,304	)
Noncurrent deferred tax assets:
Non-compete agreement		18			41
Net operating loss carry forwards		6,052			16,452
Total noncurrent deferred tax assets		6,070			16,493
Noncurrent deferred tax liabilities:
Tax over book depreciation		(41,041	)		(52,237	)
Capitalized leases		(71	)		(215	)
Other		3			6
Total noncurrent deferred tax liabilities		(41,109	)		(52,446	)
Net noncurrent deferred tax liabilities	$	(35,039	)	$	(35,953	)

The Company's federal and state net operating loss carry forwards are currently available to offset future federal taxable income, if any, and will expire during the period 2024 through 2032. The Company expects to fully utilize these net operating loss carry forwards in future years before they expire.

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

	(in thousands)
	Year Ended December 31,
	2013			2012
Current:
Federal	$	786		$	--
State		--			--
Total current		786			--
Deferred:
Federal		(4,093	)		(7,943	)
State		(681	)		(1,646	)
Total deferred		(4,774	)		(9,589	)
Total income tax (benefit) expense	$	(3,988	)	$	(9,589	)

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

	(in thousands)
	Year Ended December 31,
	2013			2012
Income tax (benefit) expense at statutory federal rate	$	(4,453	)	$	(9,268	)
Federal income tax effects of:
State income tax expense		231			558
Per diem and other nondeductible meals and entertainment		875			748
Other		40			19
Federal income tax benefit		(3,307	)		(7,943	)
State income tax benefit		(681	)		(1,646	)
Total income tax benefit	$	(3,988	)	$	(9,589	)
Effective tax rate		30.4	%		35.2	%

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.