Integrated Capacity Solutions (ICS)
- Fourth Quarter 2012 Segment Revenue: $129 million; up 30%
- Fourth Quarter 2012 Operating Income: $4.6 million; up 13%
ICS revenue increased 30% in the current quarter vs. the fourth quarter 2011 mostly due to a 47% increase in load volume. Volumes grew faster than revenue primarily due to a change in freight mix driven by customer demand. Both contractual and transactional business realized volume increases, however contractual business continues to grow at a faster pace. Contractual business comprised approximately 67% of the total load volume in the current quarter vs. 59% a year ago.
Operating income increased 13% over the same period in 2011. Fourth quarter 2011 results include an approximate $0.2 million expense for severance and charitable commitments. Gross profit margin increased slightly to 14.1% in the current period from 13.9% last year. Positive results from increased and steady load growth at higher margins and improved productivity of a more experienced workforce were partially offset with cost increases for additional headcount, branch network expansion and a single large claim settlement. ICS’s carrier base increased 12% and the employee count increased 18% from a year ago.
- Fourth quarter 2012 Segment Revenue: $113 million; down 12%
- Fourth quarter 2012 Operating Income: $ 5.2 million; down 27%