Note 5 - Segment Reporting

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 5 – SEGMENT REPORTING

The Company’s two reportable segments are Trucking and Strategic Capacity Solutions (“SCS”).

Truck

ing

. Trucking is comprised of truckload and dedicated freight services. Truckload provides services as a medium- to long-haul common carrier. USA Truck has provided truckload services since its inception, and derives the largest portion of its revenue from these services. Dedicated freight provides truckload services to specific customers for shipments over particular routes at particular times utilizing Company revenue equipment.

Strategic Capacity Solutions.

SCS consists of freight brokerage and rail intermodal services. Both of these service offerings match customer shipments with available equipment of authorized carriers and provide services that complement the Company’s trucking operations. USA Truck provides these services primarily to existing trucking customers, many of whom prefer to rely on a single carrier, or a small group of carriers, to provide all their transportation solutions.

In determining its reportable segments, the Company focuses on financial information, such as operating revenues, operating expense categories, operating ratios, operating income and key operating statistics, which the Company’s management uses to make operating decisions.

Assets are not allocated to SCS, as those operations provide truckload freight services to customers through arrangements with third party carriers who utilize their own equipment. To the extent rail intermodal 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 SCS based on the assets specifically utilized to generate revenue. All intercompany transactions between segments reflect rates similar to those that would be negotiated with independent third parties. All other expenses for SCS are specifically identifiable direct costs or are allocated to SCS based on relevant drivers.

A summary of operating revenue by segment is as follows (in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Operating revenue
Trucking revenue (1)	$	85,369		$	108,440		$	275,617		$	317,664
Trucking intersegment eliminations		(387	)		(122	)		(1,421	)		(434	)
Trucking operating revenue		84,982			108,318			274,196			317,230
SCS revenue		39,505			49,359			119,781			144,507
SCS intersegment eliminations		(997	)		(4,059	)		(4,027	)		(9,332	)
SCS operating revenue		38,508			45,300			115,754			135,175
Total operating revenue	$	123,490		$	153,618		$	389,950		$	452,405

(1) Includes foreign revenue of $10.7 million and $32.5 million for the three and nine months ended September 30, 2015, respectively, and $14.6 million and $45.0 million for the three and nine months ended September 30, 2014, respectively. All foreign revenue is paid in US dollars.

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
			(Recast)				(Recast)
Operating income (loss)
Trucking	$	2,460	$	2,176	$	6,565	$	(6,338	)
SCS		2,999		5,336		9,234		16,405
Total operating income	$	5,459	$	7,512	$	15,799	$	10,067

A summary of depreciation and amortization by segment is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
			(Recast)				(Recast)
Depreciation and amortization
Trucking	$	8,608	$	10,746	$	29,733	$	33,257
SCS		94		46		218		138
Total depreciation and amortization	$	8,702	$	10,792	$	29,951	$	33,395