SEGMENT REPORTING

9 Months Ended

Sep. 30, 2019

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 4 – SEGMENT REPORTING

The Company’s two reportable segments are Trucking and USAT Logistics.  In determining its reportable segments, the Company’s chief operating decision maker focuses on financial information, such as operating revenue, operating expense categories, operating ratios and operating income, as well as on key operating statistics, to make operating decisions.

Trucking. Trucking is comprised of one-way truckload and dedicated freight motor carrier services.  Truckload provides motor carrier services as a medium-haul common and contract carrier.  USA Truck has provided truckload motor carrier services since its inception, and continues to derive the largest portion of its gross revenue from these services.  Dedicated freight provides truckload motor carrier services to specific customers for movement of freight over particular routes at specified times.

USAT Logistics. USAT Logistics’ service offerings consist of freight brokerage, logistics, and rail intermodal services.  Each of these service offerings match customer shipments with available equipment of authorized third-party motor carriers and other service providers.  The Company provides these services to many existing Trucking customers, many of whom prefer to rely on a single service provider, or a small group of service providers, to provide all their transportation solutions.

Revenue equipment assets are not allocated to USAT Logistics as freight services for customers are brokered through arrangements with third-party motor carriers who utilize their own equipment.  To the extent rail intermodal or other USAT Logistics operations require the use of Company-owned assets, they are obtained from the Company’s Trucking segment on an as-needed basis.  Depreciation and amortization expense is allocated to USAT Logistics based on the Company-owned assets specifically utilized to generate USAT Logistics revenue.  All intercompany transactions between segments reflect rates similar to those that would be negotiated with independent third parties.  All other expenses for USAT Logistics are specifically identifiable direct costs or are allocated to USAT Logistics based on relevant cost drivers, as determined by management.

A summary of operating revenue by segment is as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Operating revenue	(in thousands)
Trucking revenue (1)	$	93,587	$	86,801	$	284,965	$	251,332
Trucking intersegment eliminations		(233)		(1,272)		(1,002)		(1,501)
Trucking operating revenue		93,354		85,529		283,963		249,831
USAT Logistics revenue		39,365		49,136		120,390		146,527
USAT Logistics intersegment eliminations		(1,795)		(2,082)		(5,833)		(3,381)
USAT Logistics operating revenue		37,570		47,054		114,557		143,146
Total operating revenue	$	130,924	$	132,583	$	398,520	$	392,977

(1) Includes foreign revenue of $9.5 million and $10.6 million for the three months ended September 30, 2019 and 2018, respectively, and $28.5 million and $31.6 million for the nine months ended September 30, 2019 and 2018, respectively.  All foreign revenue is collected in U.S. dollars.

A summary of operating (loss) income by segment is as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Operating (loss) income	(in thousands)
Trucking	$	(278)	$	2,605	$	2,168	$	4,294
USAT Logistics		244		3,198		3,702		8,212
Total operating (loss) income	$	(34)	$	5,803	$	5,870	$	12,506

A summary of depreciation and amortization by segment is as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Depreciation and amortization	(in thousands)
Trucking	$	9,435	$	6,562	$	26,867	$	20,887
USAT Logistics		217		173		728		505
Total depreciation and amortization	$	9,652	$	6,735	$	27,595	$	21,392