Second Quarter 2012 Results by Business Unit
- Expedited transportation: The Express-1 business generated total revenue of $25.7 million for the quarter, an 11.6% improvement from the same period last year. The improvement in revenue was primarily due to increases in the number of transactions and revenue-per-load. The company saw growth in its domestic, international and temperature-controlled businesses. Gross margin percentage was 20.0%, compared with 19.5% in 2011. The improvement in gross margin percentage reflects an increase in high-margin domestic business and a decrease in insurance claims, partially offset by higher rates paid to owner operators. Operating income was $2.4 million for the quarter, a 17.9% increase from the same period last year.
- Freight forwarding: The Concert Group Logistics (CGL) business generated total revenue of $16.5 million for the quarter, a 4.7% increase from the same period last year. Gross margin percentage increased to 11.0% for the quarter, from 10.6% a year ago, primarily due to higher volume with company-owned branches versus lower-margin agent-owned stations. Operating income was $128,000 for the quarter, compared with $399,000 last year, reflecting higher SG&A costs associated with investments in company-owned cold-starts in Charlotte, N.C., Atlanta, Ga., and Los Angeles, Calif.
- Freight brokerage: The company's freight brokerage business generated total revenue of $13.9 million for the quarter, a 107.5% improvement from the same period last year. The acquisition of Continental Freight Services on May 8, 2012, had a positive revenue impact of $3.6 million for the quarter. Excluding the acquisition, growth was primarily driven by increased volume at the company’s brokerage cold-start locations and South Bend, Ind., operation. Gross margin percentage was 11.0% for the quarter, compared with 15.3% in 2011. The decline in gross margin was primarily due to lower-margin sales during the start-up phase of cold-start locations. Operating loss was $972,000 for the quarter, compared with operating income of $172,000 the prior year, reflecting cold-start costs partially offset by higher operating income from the South Bend operation.