SEGMENT REPORTING

6 Months Ended

Jun. 30, 2022

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 3 – 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 expenses, operating ratios and operating income, as well as on key operating statistics, to make operating decisions.

Trucking.  Trucking is comprised of truckload and dedicated freight service offerings.  Truckload service offerings provide motor carrier services as a common and contract carrier, utilizing equipment owned or leased by the Company or independent contractors.  Dedicated freight service offerings provide 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.  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				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Operating revenue (1)	(in thousands)
Trucking revenue	$	122,515	$	105,361	$	238,586	$	208,464
Trucking intersegment eliminations		(111)		(259)		(153)		(586)
Trucking operating revenue		122,404		105,102		238,433		207,878
USAT Logistics revenue		86,271		78,749		183,715		147,130
USAT Logistics intersegment eliminations		(6,545)		(13,820)		(18,955)		(26,472)
USAT Logistics operating revenue		79,726		64,929		164,760		120,658
Total operating revenue	$	202,130	$	170,031	$	403,193	$	328,536

1) Includes foreign revenue of $14.6 million and $10.0 million for the three months ended June 30, 2022 and 2021, respectively, and $27.0 million and $18.9 million for the six months ended June 30, 2022, and 2021, respectively.

A summary of operating income by segment is as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Operating income	(in thousands)
Trucking	$	4,296	$	3,057	$	16,925	$	6,577
USAT Logistics		3,688		3,872		9,742		6,398
Unallocated merger costs		(2,132)		—		(2,132)		—
Total operating income	$	5,852	$	6,929	$	24,535	$	12,975

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Depreciation and amortization	(in thousands)
Trucking	$	8,576	$	8,901	$	16,296	$	18,197
USAT Logistics		410		262		714		536
Total depreciation and amortization	$	8,986	$	9,163	$	17,010	$	18,733