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LEASES
3 Months Ended
Mar. 31, 2020
LEASES  
LEASES

NOTE 7 – LEASES

The components of lease expense for each of the periods presented are as follows:

​

​

​

​

​

​

​

​

March 31, 2020

​

March 31, 2019

​

(in thousands)

Operating lease costs

$

2,166

 

$

2,159

Finance lease costs:

​

​

​

​

​

Amortization of assets

 

4,723

​

 

2,691

Interest on lease liabilities

 

790

​

 

546

Total finance lease costs

 

5,513

​

 

3,237

Variable and short-term lease costs

 

127

​

 

561

Total lease costs

$

7,806

 

$

5,957

​

​

​

​

​

​

​

​

Supplemental information and balance sheet location related to leases is as follows:

​

​

​

​

​

​

​

​

​

​

March 31, 2020

​

December 31, 2019

Operating leases:

(dollars in thousands)

Operating lease right-of-use assets

$

9,830

 

$

11,775

​

​

​

​

​

​

​

​

Current operating lease obligations

 

4,602

​

 

6,050

Long-term operating lease obligations

 

5,347

​

 

5,812

Total operating lease liabilities

$

9,949

​

$

11,862

​

​

​

​

​

​

​

​

Finance leases:

​

​

​

 

​

​

​

Property and equipment, at cost

 

121,421

​

 

120,236

Accumulated amortization

 

(35,464)

​

 

(30,990)

Property and equipment, net

$

85,957

​

$

89,246

​

​

​

​

​

​

​

​

Current finance lease obligations

 

29,363

​

 

30,779

Long-term finance lease obligations

 

56,847

​

 

58,397

​

$

86,210

​

$

89,176

​

​

​

​

​

​

​

​

Weighted average remaining lease term:

 

(in months)

​

 

(in months)

Operating leases

 

47 months

​

 

45 months

Finance leases

 

41 months

​

 

44 months

​

​

​

​

​

​

​

​

Weighted average discount rate:

​

​

​

​

​

​

​

Operating leases

 

4.02

%

​

 

4.03

%

Finance leases

 

3.34

%

​

 

3.34

%

​

​

​

​

​

​

​

​

​

Supplemental cash flow information related to leases is as follows for the three months ended:

​

​

​

​

​

​

​

​

March 31, 2020

​

March 31, 2019

Cash paid for amounts included in measurement of liabilities:

(in thousands)

Operating cash flows from operating leases

$

33

​

$

2,067

Operating cash flows from finance leases

​

790

​

​

546

Financing cash flows from finance leases

​

4,150

​

​

3,110

​

​

​

​

​

​

ROU assets obtained in exchange for lease liabilities:

​

​

​

​

​

Operating leases

​

—

​

​

563

Finance leases

​

1,184

​

​

4,327

​

​

​

​

​

​

​

OTHER COMMITMENTS

As of March 31, 2020, the Company had $7.3 million in noncancellable commitments for acquisition of revenue equipment.  We anticipate funding these commitments with cash flows from operating and financing activities.

RELATED PARTY LEASE

In the normal course of business, the Company leases office and shop space from a related party under a monthly operating lease.  Rent expense for this space was approximately $0.04 million for the three months ended March 31, 2020 and 2019.  This expense is included in the “Operations and maintenance” line item in the accompanying condensed consolidated statement of (loss) income and comprehensive (loss) income.