What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2022-11-09 compared with 2022-08-09 · 195 added, 185 removed, 427 unchanged (47% of the section changed)

10 unchanged sentences

Intermodal also offers dedicated contract and Container Freight Station (“CFS ” ) warehouse and handling services, and in select locations, linehaul and LTL services.

We plan to grow our Intermodal geographic footprint through acquisitions as well as greenfield start-ups where no suitable acquisition is available.

We plan to grow our Intermodal geographic footprint through acquisitions as well as through greenfield start-ups where no suitable acquisition is available.

Our operations, particularly our network of hubs and terminals, represent substantial fixed costs.

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We continue to execute synergies across our services, particularly with services offered in the Expedited Freight reportable segment.

Synergistic opportunities include the ability to share resources, particularly our fleet resources.

Synergistic opportunities include the ability to share resources, in particular our fleet resources.

We monitor and analyze a number of key operating statistics in order to manage our business and evaluate our financial and operating performance.

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Fuel shortages, changes in fuel prices, and the potential volatility in fuel surcharge revenue may impact our results of operations and overall profitability.

Fuel surcharge revenue as a percentage of operating revenues increased to 18.4% for the three months ended June 30, 2022 compared to 11.6% for the three months ended June 30, 2021, as a result of the changes in fuel prices.

Fuel surcharge revenue as a percentage of operating revenues increased to 17.7% for the three months ended September 30, 2022 compared to 11.6% for the three months ended September 30, 2021, as a result of the changes in fuel prices.

Environmental Protection and Community Support

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Results from Operations

The following table sets forth our consolidated financial data for the three months ended June 30, 2022 and 2021 (unaudited and in thousands):

The following table sets forth our consolidated financial data for the three months ended September 30, 2022 and 2021 (unaudited and in thousands):

Three Months Ended

2022 June 30,

September 30,

2022 September 30,

2021 Change Percent Change

27 unchanged sentences

Operating Revenues

Operating revenues increased $94,548, or 22.5%, to $515,219 for the three months ended June 30, 2022 compared to $420,671 for the three months ended June 30, 2021.

Operating revenues increased $90,398, or 21.5%, to $510,023 for the three months ended September 30, 2022 compared to $419,625 for the three months ended September 30, 2021.

The increase was primarily due to an increase in our Expedited Freight segment of $54,078 driven by Network, Truckload and Final Mile revenue, and in our Intermodal segment of $36,248, driven by increased drayage and accessorial revenues.

Operating Expenses

Operating expenses increased $61,127, or 16.1%, to $439,674 for the three months ended June 30, 2022 compared to $378,547 for the three months ended June 30, 2021.

The increase was primarily due to an increase in purchased transportation expense of $24,273, fuel expense of $4,255 and other operating expenses of $23,307 in both our Expedited Freight and Intermodal segments.

Operating expenses increased $61,209, or 16.2%, to $438,358 for the three months ended September 30, 2022 compared to $377,149 for the three months ended September 30, 2021.

The increase was primarily due to an increase in purchased transportation expense of $23,852, salaries, wages and employee benefits of $6,345 and other operating expenses of $19,306 in both our Expedited Freight and Intermodal segments.

Purchased transportation expense includes our independent contractor fleet owners and owner-operators, who lease their equipment to our motor carrier (“Leased Capacity Providers ”) and third party carriers, while Company-employed drivers are included in salaries, wages and employee benefits.

Purchased transportation expense increased due to higher Leased Capacity Provider and third party carrier costs, and the utilization of more third party carriers over the prior year.

Fuel expense increased due to rise in the average price of fuel in the second quarter of 2022.

Other operating expenses increased due to higher bad debt expense, travel expenses, recruiting costs, terminal and office expenses, and legal and professional fees.

Purchased transportation expense increased due to higher Leased Capacity Provider and third party carrier costs, partially offset by the change in the mix of freight capacity purchased from Leased Capacity Providers, third party carriers and Company-employed drivers.

Salaries, wages and employee benefits increased primarily due to the additional employees hired in response to the increase in volumes for the third quarter of 2022, and an increase in the reserve for incentive compensation.

Other operating expenses increased due to higher travel expenses, maintenance costs, and terminal and office expenses.

Other operating expenses also increased due to additional expenses incurred in support of the higher accessorial revenues as noted above for the Intermodal segment.

Income from Continuing Operations and Segment Operations

Income from continuing operations increased $33,421, or 79.3%, to $75,545 for the three months ended June 30, 2022 compared to $42,124 for the three months ended June 30, 2021.

Income from continuing operations increased $29,189, or 68.7%, to $71,665 for the three months ended September 30, 2022 compared to $42,476 for the three months ended September 30, 2021.

The increase was primarily driven by an increase in income from continuing operations in our Expedited Freight segment and Intermodal segment of $21,668 and $7,898, respectively.

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Interest Expense

Interest expense was $1,193 for the three months ended June 30, 2022 compared to $1,323 for the three months ended June 30, 2021.

The decrease in interest expense was due to a lower variable interest rate during the second quarter of 2022 as compared to the same period in the prior year.

The interest rate on the outstanding borrowings under our credit facility was 2.14% and 3.25% during the three months ended June 30, 2022 and 2021, respectively.

Interest expense was $1,544 for the three months ended September 30, 2022 compared to $973 for the three months ended September 30, 2021.

The increase in interest expense was due to a higher variable interest rate during the third quarter of 2022 as compared to the same period in the prior year.

The weighted-average interest rate on the outstanding borrowings under our credit facility was 3.33% and 1.35% during the three months ended September 30, 2022 and 2021, respectively.

Income Taxes on a Continuing Basis

The effective tax rate on a continuing basis for the three months ended June 30, 2022 was 25.4% compared to 24.8% for the three months ended June 30, 2021.

The higher effective tax rate for the three months ended June 30, 2022 was primarily due to decreased excess tax benefits realized on share-based awards in 2022 compared to the same period in 2021.

As a result of the foregoing factors, net income increased $24,753, or 80.7%, to $55,430 for the three months ended June 30, 2022 compared to $30,677 for the three months ended June 30, 2021.

Expedited Freight - Three Months Ended June 30, 2022 compared to Three Months Ended June 30, 2021

The following table sets forth the financial data of our Expedited Freight segment for the three months ended June 30, 2022 and 2021 (unaudited and in thousands):

The effective tax rate on a continuing basis for the three months ended September 30, 2022 was 25.7% compared to 26.5% for the three months ended September 30, 2021.

The lower effective tax rate for the three months ended September 30, 2022 was primarily due to a return to provision expense adjustment recorded in the third quarter of 2021.

A similar adjustment was not recorded in the third quarter of 2022.

As a result of the foregoing factors, net income increased $28,597, or 121.5%, to $52,133 for the three months ended September 30, 2022 compared to $23,536 for the three months ended September 30, 2021.

Expedited Freight - Three Months Ended September 30, 2022 compared to Three Months Ended September 30, 2021

The following table sets forth the financial data of our Expedited Freight segment for the three months ended September 30, 2022 and 2021 (unaudited and in thousands):

Three Months Ended

2022 Percent of Revenue June 30,

September 30,

2022 Percent of Revenue September 30,

2021 Percent of Revenue Change Percent Change

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Three Months Ended

2022 June 30,

September 30,

2022 September 30,

2021 Percent Change

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Operating Revenues

Expedited Freight operating revenues increased $57,122, or 16.2%, to $408,857 for the three months ended June 30, 2022 from $351,735 for the three months ended June 30, 2021.

Expedited Freight operating revenues increased $54,078, or 15.8%, to $395,635 for the three months ended September 30, 2022 from $341,557 for the three months ended September 30, 2021.

The increase was attributable to higher Network, Truckload and Final Mile revenue.

Network revenue increased due to a 0.3% increase in tonnage and a 9.9% increase in revenue per hundredweight ex fuel as compared to the prior year.

The increase in tonnage reflects an increase in weight per shipment of 14.5% on 12.3% fewer number of shipments.

The increase in the weight per shipment was the result of more dense freight in our network driven by our freight rationalization actions to capture higher quality freight.

Network revenue increased due to a 1.5% increase in tonnage and a 7.0% increase in revenue per hundredweight ex fuel as compared to the same period in the prior year.

The increase in tonnage reflects a decrease in weight per shipment of 6.4% on 8.4% higher number of shipments.

The decrease in the weight per shipment was the result of a change in the mix of freight in our network.

The increase in the revenue per hundredweight ex fuel was driven by the execution of our revenue growth strategies, pricing initiatives, including our general rate increase, and continued strong demand for our services.

Network fuel surcharge revenue increased $29,950, or 86.3% as a result of the rise in rise in the average price of fue l.

Truckload and Fina l Mile revenue increased $3,176 and $3,145, respectively, primarily due to continued strong demand for our services.

Other revenue, which includes warehousing and terminal handling, decreased $2,536 due to the lower number of shipments.

Network fuel surcharge revenue increased $26,195, or 76.6% as a result of the rise in the average price of fuel and an increase in tonnage.

Truckload and Final Mile revenue increased $1,956 and $5,467, respectively, primarily due to continued strong demand for our services.

Other revenue, which includes warehousing and terminal handling, increased $5,533 due to the higher number of shipments and pricing initiatives.

Purchased Transportation

Expedited Freight purchased transportation increased $20,927, or 10.9%, to $212,575 for the three months ended June 30, 2022 from $191,648 for the three months ended June 30, 2021.

Purchased transportation was 52.0% of Expedited Freight operating revenues for the three months ended June 30, 2022 compared to 54.5% for the same period in 2021.

Expedited Freight purchased transportation increased $18,187, or 10.0%, to $200,783 for the three months ended September 30, 2022 from $182,596 for the three months ended September 30, 2021.

Purchased transportation was 50.7% of Expedited Freight operating revenues for the three months ended September 30, 2022 compared to 53.5% for the same period in 2021.

Expedited Freight purchased transportation includes Leased Capacity Providers and third party carriers, while Company-employed drivers are included in salaries, wages and employee benefits.

The increase in purchased transportation expense was primarily due to higher Leased Capacity Provider and third party carrier costs, partially offset by the change in the mix of freight capacity purchased from Leased Capacity Providers, third party carriers and Company-employed drivers for Network and Truckload services.

In the second quarter of 2022, we purchased 64.5%, 32.3% and 3.2% of our freight capacity from Leased Capacity Providers, third party carriers and Company-employed drivers, respectively.

This compares to 63.0%, 33.7% and 3.3% in the same period in 2021.

In the third quarter of 2022, we purchased 68.3%, 28.1% and 3.6% of our freight capacity from Leased Capacity Providers, third party carriers and Company-employed drivers, respectively.

This c ompares to 66.0%, 30.2% and 3.8% in the same period in 2021.

Salaries, Wages and Employee Benefits

Expedited Freight salaries, wages and employee benefits increased $1,937, or 2.9%, to $69,497 for the three months ended June 30, 2022 from $67,560 for the three months ended June 30, 2021.

Salaries, wages and employee benefits were 17.0% of Expedited Freight operating revenues for the three months ended June 30, 2022 compared to 19.2% for the same period in 2021.

The increase in salaries, wages and employee benefits expense was primarily due to additional employees hired in response to the increased volumes in the second quarter of 2022 and higher salaries and wages as compared to the same period in 2021.

Expedited Freight salaries, wages and employee benefits increased $5,645, or 8.6%, to $71,543 for the three months ended September 30, 2022 from $65,898 for the three months ended September 30, 2021.

Salaries, wages and employee benefits were 18.1% of Expedited Freight operating revenues for the three months ended September 30, 2022 compared to 19.3% for the same period in 2021.

The increase in salaries, wages and employee benefits expense was primarily due to additional employees hired in response to the increased volumes in the third quarter of 2022, higher salaries and wages, and an increase in the reserve for incentive compensation compared to the same period in 2021.

Operating Leases

Expedited Freight operating leases increased $1,065, or 7.2%, to $15,933 for the three months ended June 30, 2022 from $14,868 for the three months ended June 30, 2021.

Operating leases were 3.9% of Expedited Freight operating revenues for the three months ended June 30, 2022 compared to 4.2% for the same period in 2021.

The increase in operating leases expense was primarily due to higher facility expense in the second quarter of 2022 as compared to the same period in 2021.

Expedited Freight operating leases increased $1,132, or 7.7%, to $15,819 for the three months ended September 30, 2022 from $14,687 for the three months ended September 30, 2021.

Operating leases were 4.0% of Expedited Freight operating revenues for the three months ended September 30, 2022 compared to 4.3% for the same period in 2021.

The increase in operating leases expense was primarily due to higher facility expense in the third quarter of 2022 as compared to the same period in 2021.

Depreciation and Amortization

Expedited Freight depreciation and amortization increased $1,038, or 15.3%, to $7,817 for the three months ended June 30, 2022 from $6,779 for the three months ended June 30, 2021.

Depreciation and amortization was 1.9% of Expedited Freight operating revenues for both the three months ended June 30, 2022 and 2021.

The increase in depreciation and amortization expense was primarily due to an increase in equipment depreciation in the second quarter of 2022 as compared to the same period in 2021 .

Expedited Freight depreciation and amortization increased $1,356, or 20.0%, to $8,140 for the three months ended September 30, 2022 from $6,784 for the three months ended September 30, 2021.

Depreciation and amortization was 2.1% of Expedited Freight operating revenues for the three months ended September 30, 2022 compared to 2.0% for the same period in 2021.

The increase in depreciation and amortization expense was primarily due to an increase in equipment depreciation in the third quarter of 2022 as compared to the same period in 2021 .

Insurance and Claims

Expedited Freight insurance and claims decreased $74, or 0.9%, to $8,311 for the three months ended June 30, 2022 from $8,385 for the three months ended June 30, 2021.

Insurance and claims was 2.0% of Expedited Freight operating revenues for the three months ended June 30, 2022 compared to 2.4% for the same period in 2021.

The decrease in insurance and claims expense was primarily due to a decrease in vehicle liability and cargo claims, offset by an increase in vehicle repairs and insurance premiums in the second quarter of 2022 as compared to the same period in 2021 .

Expedited Freight insurance and claims increased $1,122, or 13.9%, to $9,196 for the three months ended September 30, 2022 from $8,074 for the three months ended September 30, 2021.

Insurance and claims was 2.3% of Expedited Freight operating revenues for the three months ended September 30, 2022 compared to 2.4% for the same period in 2021.

The increase in insurance and claims expense was primarily due to an increase in insurance premiums and vehicle repairs offset by a decrease in cargo claims in the third quarter of 2022 as compared to the same period in 2021 .

See additional discussion over the consolidated change in self-insurance reserves in the “Other Operations ” section below.

Expedited Freight fuel expense increased $1,082, or 50.4%, to $3,229 for the three months ended June 30, 2022 from $2,147 for the three months ended June 30, 2021.

Fuel expense was 0.8% of Expedited Freight operating revenues for the three months ended June 30, 2022 compared to 0.6% for the same period in 2021.

Fuel expense increased primarily due to a rise in the average price of fuel in the second quarter of 2022 as compared to the same period in 2021.

Expedited Freight fuel expense increased $648, or 29.1%, to $2,873 for the three months ended September 30, 2022 from $2,225 for the three months ended September 30, 2021.

Fuel expense was 0.7% of Expedited Freight operating revenues for both the three months ended September 30, 2022 and 2021.

Fuel expense increased primarily due to a rise in the average price of fuel in the third quarter of 2022 as compared to the same period in 2021.

Other Operating Expenses

Expedited Freight other operating expenses increased $2,728, or 10.6%, to $28,388 for the three months ended June 30, 2022 from $25,660 for the three months ended June 30, 2021.

Other operating expenses were 7.0% of Expedited Freight operating revenues for the three months ended June 30, 2022 compared to 7.3% for the same period in 2021.

Expedited Freight other operating expenses increased $4,320, or 16.2%, to $30,977 for the three months ended September 30, 2022 from $26,657 for the three months ended September 30, 2021.

Other operating expenses were 7.8% of Expedited Freight operating revenues for both the three months ended September 30, 2022 and 2021.

Other operating expenses include equipment maintenance, facility expenses, legal and professional fees, and other over-the-road costs.

The increase in other operating expenses was primarily due to an increase in equipment maintenance costs, terminal and office expenses, recruiting costs, professional fees and travel expenses in the second quarter of 2022 as compared to the same period in 2021.

The increase in other operating expenses was primarily due to an increase in maintenance costs, terminal and office expenses, and travel expenses in the third quarter of 2022 as compared to the same period in 2021.

Income from Operations

Expedited Freight income from operations increased $28,419, or 81.9%, to $63,107 for the three months ended June 30, 2022 compared to $34,688 for the three months ended June 30, 2021.

Income from operations was 15.4% of Expedited Freight operating revenues for the three months ended June 30, 2022 compared to 9.9% for the same period in 2021.

Expedited Freight income from operations increased $21,668, or 62.6%, to $56,304 for the three months ended September 30, 2022 compared to $34,636 for the three months ended September 30, 2021.

Income from operations was 14.2% of Expedited Freight operating revenues for the three months ended September 30, 2022 compared to 10.1% for the same period in 2021.

Intermodal - Three Months Ended June 30, 2022 compared to Three Months Ended June 30, 2021

The following table sets forth the financial data of our Intermodal segment for the three months ended June 30, 2022 and 2021 (unaudited and in thousands):

Intermodal - Three Months Ended September 30, 2022 compared to Three Months Ended September 30, 2021

The following table sets forth the financial data of our Intermodal segment for the three months ended September 30, 2022 and 2021 (unaudited and in thousands):

Three Months Ended

2022 Percent of Revenue June 30,

September 30,

2022 Percent of Revenue September 30,

2021 Percent of Revenue Change Percent Change

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Three Months Ended

2022 June 30,

September 30,

2022 September 30,

2021 Percent Change

4 unchanged sentences

Operating Revenues

Intermodal operating revenues increased $37,278, or 53.9%, to $106,411 for the three months ended June 30, 2022 from $69,133 for the three months ended June 30, 2021.

Intermodal operating revenues increased $36,248, or 46.4%, to $114,421 for the three months ended September 30, 2022 from $78,173 for the three months ended September 30, 2021.

The increase in operating revenue was primarily due to a 62.1% increase in drayage revenue per shipment as compared to the same period in 2021.

The increase in drayage revenue per shipment was driven by the execution of our pricing initiatives, the acquisition of BarOle in November 2021 and Edgmon in May 2022, higher accessorial revenue in support of our customers and continued strong dem and for our services.

In addition, fuel surcharge revenue increased $7,710, or 109.3% as a result of the rise in rise in the average price of fue l.

The increase in drayage revenue per shipment was driven by the execution of our pricing initiatives, the acquisitions of BarOle in November 2021 and Edgmon in May 2022, higher accessorial revenue in support of our customers and continued strong dem and for our services.

In addition, fuel surcharge revenue increas ed $8,317, or 114.3% as a re sult of the rise in the average price of fue l.

Purchased Transportation

Intermodal purchased transportation increased $3,196, or 13.4%, to $26,963 for the three months ended June 30, 2022 from $23,767 for the three months ended June 30, 2021.

Purchased transportation was 25.3% of Intermodal operating revenues for the three months ended June 30, 2022 compared to 34.4% for the same period in 2021.

Intermodal purchased transportation increased $5,626, or 24.5%, to $28,610 for the three months ended September 30, 2022 from $22,984 for the three months ended September 30, 2021.

Purchased transportation was 25.0% of Intermodal operating revenues for the three months ended September 30, 2022 compared to 29.4% for the same period in 2021.

Intermodal purchased transportation includes Leased Capacity Providers and third party carriers, while Company-employed drivers are included in salaries, wages and employee benefits.

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Salaries, Wages and Employee Benefits

Intermodal salaries, wages and employee benefits increased $2,601, or 16.0%, to $18,831 for the three months ended June 30, 2022 compared to $16,230 for the three months ended June 30, 2021.

Salaries, wages and employee benefits were 17.7% of Intermodal operating revenues for the three months ended June 30, 2022 compared to 23.5% for the same period in 2021.

The increase in salaries, wages and employee benefits expense was primarily due to additional employees hired in the second quarter of 2022 and an increased reserve for incentive compensation as compared to the same period in 2021.

Intermodal salaries, wages and employee benefits increased $349, or 2.0%, to $17,945 for the three months ended September 30, 2022 compared to $17,596 for the three months ended September 30, 2021.

Salaries, wages and employee benefits were 15.7% of Intermodal operating revenues for the three months ended September 30, 2022 compared to 22.5% for the same period in 2021.

The increase in salaries, wages and employee benefits expense was primarily due to additional employees hired in the third quarter of 2022 and higher salaries and wages as compared to the same period in 2021.

Operating Leases

Intermodal operating leases increased $2,026, or 36.8%, to $7,526 for the three months ended June 30, 2022 compared to $5,500 for the three months ended June 30, 2021.

Operating leases were 7.1% of Intermodal operating revenues for the three months ended June 30, 2022 compared to 8.0% for the same period in 2021.

The increase in operating leases expense was primarily due to additional equipment leases in the second quarter of 2022 as compared to the same period in 2021.

Intermodal operating leases increased $3,290, or 56.2%, to $9,146 for the three months ended September 30, 2022 compared to $5,856 for the three months ended September 30, 2021.

Operating leases were 8.0% of Intermodal operating revenues for the three months ended September 30, 2022 compared to 7.5% for the same period in 2021.

The increase in operating leases expense was due to higher facility expense and additional equipment leases in the third quarter of 2022 as compared to the same period in 2021.

Depreciation and Amortization

Intermodal depreciation and amortization increased $1,104, or 42.3%, to $3,716 for the three months ended June 30, 2022 from $2,612 for the three months ended June 30, 2021.

Depreciation and amortization was 3.5% of Intermodal operating revenues for the three months ended June 30, 2022 compared to 3.8% for the same period in 2021 .

Intermodal depreciation and amortization increased $1,513, or 57.8%, to $4,129 for the three months ended September 30, 2022 from $2,616 for the three months ended September 30, 2021.

Depreciation and amortization was 3.6% of Intermodal operating revenues for the three months ended September 30, 2022 compared to 3.3% for the same period in 2021 .

The increase in depreciation and amortization expense was primarily due to the equipment and intangible assets acquired in connection with the acquisitions completed in the fourth quarter of 2021 and the second quarter of 2022.

Insurance and Claims

Intermodal insurance and claims decreased $17, or 0.7%, to $2,338 for the three months ended June 30, 2022 from $2,355 for the three months ended June 30, 2021.

Insurance and claims were 2.2% of Intermodal operating revenues for the three months ended June 30, 2022 compared to 3.4% for the same period in 2021.

The decrease in insurance and claims expense was primarily due to the decrease in insurance premiums, offset by an increase in vehicle liability claims and vehicle repairs during the second quarter of 2022 as compared to the same period in 2021.

Intermodal insurance and claims decreased $467, or 17.2%, to $2,241 for the three months ended September 30, 2022 from $2,708 for the three months ended September 30, 2021.

Insurance and claims were 2.0% of Intermodal operating revenues for the three months ended September 30, 2022 compared to 3.5% for the same period in 2021.

The decrease in insurance and claims expense was primarily due to the decrease in insurance premiums and vehicle liability claims, offset by an increase in vehicle repairs during the third quarter of 2022 as compared to the same period in 2021.

See additional discussion over the consolidated change in self-insurance reserves in the “Other Operations ” section below.

Intermodal fuel expense increased $3,172, or 165.9%, to $5,084 for the three months ended June 30, 2022 from $1,912 for the three months ended June 30, 2021.

Fuel expense was 4.8% of Intermodal operating revenues for the three months ended June 30, 2022 compared to 2.8% for the same period in 2021.

Intermodal fuel expense increased primarily due to the rise in the average price of fuel in the second quarter of 2022 as compared to the same period in 2021.

Intermodal fuel expense increased $1,668, or 74.8%, to $3,899 for the three months ended September 30, 2022 from $2,231 for the three months ended September 30, 2021.

Fuel expense was 3.4% of Intermodal operating revenues for the three months ended September 30, 2022 compared to 2.9% for the same period in 2021.

Intermodal fuel expense increased primarily due to the rise in the average price of fuel in the third quarter of 2022 as compared to the same period in 2021.

Other Operating Expenses

Intermodal other operating expenses increased $18,333, or 219.0%, to $26,704 for the three months ended June 30, 2022 from $8,371 for the three months ended June 30, 2021.

Other operating expenses were 25.1% of Intermodal operating revenues for the three months ended June 30, 2022 compared to 12.1% for the same period in 2021.

The increase in Intermodal other operating expenses was primarily due to additional expenses incurred in support of the increased accessorial revenues, increased bad debt expense and higher professional fees in the second quarter of 2022 as compared to the same period in 2021.

Intermodal other operating expenses increased $16,371, or 105.8%, to $31,841 for the three months ended September 30, 2022 from $15,470 for the three months ended September 30, 2021.

Other operating expenses were 27.8% of Intermodal operating revenues for the three months ended September 30, 2022 compared to 19.8% for the same period in 2021.

The increase in Intermodal other operating expenses was primarily due to additional expenses incurred in support of the increased accessorial revenues, and maintenance costs in the third quarter of 2022 as compared to the same period in 2021.

Income from Operations

Intermodal income from operations increased $6,863, or 81.8%, to $15,249 for the three months ended June 30, 2022 compared to $8,386 for the three months ended June 30, 2021.

Income from operations was 14.3% of Intermodal operating revenues for the three months ended June 30, 2022 compared to 12.1% for the same period in 2021.

Intermodal income from operations increased $7,898, or 90.7%, to $16,610 for the three months ended September 30, 2022 compared to $8,712 for the three months ended September 30, 2021.

Income from operations was 14.5% of Intermodal operating revenues for the three months ended September 30, 2022 compared to 11.1% for the same period in 2021.

The increase in income from operations as a percentage of operating revenues was primarily due to increased drayage revenue per shipment, partially offset by the change in mix of freight capacity purchased from Leased Capacity Providers, third party carriers and Company-employed drivers and higher Leased Capacity Provider and third party carrier costs.

Other Operations - Three Months Ended June 30, 2022 compared to Three Months Ended June 30, 2021

Other operations included an $2,811 operating loss during the three months ended June 30, 2022 compared to a $950 operating loss during the three months ended June 30, 2021.

The change in the operating loss was primarily due to an increase in self-insurance reserves for vehicle liability claims, legal reserves, bad debt expense related to other receivables and professional fees, partially offset by a decrease in the reserves for group health insurance claims.

Other Operations - Three Months Ended September 30, 2022 compared to Three Months Ended September 30, 2021

Other operations included a $1,249 operating loss during the three months ended September 30, 2022 compared to an $872 operating loss during the three months ended September 30, 2021.

The change in the operating loss was primarily due to an increase in self-insurance reserves for vehicle liability claims, partially offset by a decrease in the reserves for group health insurance claims and the recovery of bad debt related to other receivables.

The increase in the self-insurance reserves for vehicle liability claims was due to the unfavorable loss development factor of historical claims.

Results from Operations

The following table sets forth our consolidated financial data for the six months ended June 30, 2022 and 2021 (unaudited and in thousands):

Six Months Ended

2022 June 30,

The following table sets forth our consolidated financial data for the nine months ended September 30, 2022 and 2021 (unaudited and in thousands):

Nine Months Ended

September 30,

2022 September 30,

2021 Change Percent Change

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Operating Revenues

Operating revenues increased $199,307, or 25.5% to $982,180 for the six months ended June 30, 2022 compared to $782,873 for the six months ended June 30, 2021.

Operating revenues increased $289,705, or 24.1% to $1,492,203 for the nine months ended September 30, 2022 compared to $1,202,498 for the nine months ended September 30, 2021.

The increase was primarily due to an increase in our Expedited Freight segment of $183,605, driven by increased Network, Truckload and Final Mile revenue, and in our Intermodal segment of $105,452 driven by increased drayage and accessorial revenues.

Operating Expenses

Operating expenses increased $131,259, or 18.3%, to $849,284 for the six months ended June 30, 2022 compared to $718,025 for the six months ended June 30, 2021.

Operating expenses increased $192,468, or 17.6%, to $1,287,642 for the nine months ended September 30, 2022 compared to $1,095,174 for the nine months ended September 30, 2021.

The increase was primarily due to an increase in purchased transportation expense of $88,349, salaries, wages and employee benefits of $19,246 and other operating expenses of $51,548 in both our Expedited Freight and Intermodal segments.

Purchased transportation expense includes Leased Capacity Providers and third party carriers, while Company-employed drivers are included in salaries, wages and employee benefits.

Purchased transportation expense increased due to higher Lease Capacity Provider and third party carrier costs, and the utilization of more third party carriers over the prior year.

Salaries, wages and employee benefits increased primarily due to the additional employees hired in response to the increase in volumes in 2022, higher salaries and wages, and an increased reserve for incentive compensation.

Other operating expenses increased due to higher bad debt expense, travel expenses, recruiting costs, and terminal and office expenses, partially offset by lower professional fees.

Purchased transportation expense increased due to higher Lease Capacity Provider and third party carrier costs, and the change in the mix of freight capacity purchased from Leased Capacity Providers, third party carriers and Company-employed drivers.

Other operating expenses increased due to maintenance costs, travel expenses, recruiting costs, and terminal and office expenses, partially offset by lower professional fees.

Other operating expenses also increased due to additional expenses incurred in support of the increased accessorial revenues as noted above for the Intermodal segment.

Income from Continuing Operations and Segment Operations

Income from continuing operations increased $68,048, or 104.9%, to $132,896 for the six months ended June 30, 2022 compared to $64,848 for the six months ended June 30, 2021.

Income from continuing operations increased $97,237, or 90.6%, to $204,561 for the nine months ended September 30, 2022 compared to $107,324 for the nine months ended September 30, 2021.

The increase was primarily driven by an increase in income from continuing operations in our Expedited Freight segment and Intermodal segment of $73,237 and $21,398, respectively.

The results of our two reportable segments are discussed below in the following sections.

The results of our two reportable segments are discussed below in more detail.

Interest Expense

Interest expense was $1,977 for the six months ended June 30, 2022 compared to $2,488 for the six months ended June 30, 2021.

The decrease in interest expense was due to a lower variable interest rate during the six months ended June 30, 2022 as compared to the same period in the prior year.

The interest rate on the outstanding borrowings under our credit facility was 1.80% and 3.25 % during the six months ended June 30, 2022 and 2021, respectively.

Interest expense was $3,521 for the nine months ended September 30, 2022 compared to $3,461 for the nine months ended September 30, 2021.

The increase in interest expense was due to a higher borrowings outstanding under our credit facility during the nine months ended September 30, 2022 partially offset by a lower weighted-average interest rate during the nine months ended September 30, 2022.

The weighted-average interest rate on the outstanding borrowings under our credit facility was 2.27% and 2.51% during the nine months ended September 30, 2022 and 2021, respectively.

Income Taxes on a Continuing Basis

The effective tax rate on a continuing basis for the six months ended June 30, 2022 was 25.1% compared to a rate of 24.0% for the six months ended June 30, 2021.

The higher effective tax rate for the six months ended June 30, 2022 was primarily due to decreased excess tax benefits realized on share-based awards in 2022 compared to the same period in 2021.

The effective tax rate on a continuing basis for the nine months ended September 30, 2022 was 25.3% compared to a rate of 25.0% for the nine months ended September 30, 2021.

The higher effective tax rate for the nine months ended September 30, 2022 was primarily due to lower excess tax benefits realized on share-based awards in 2022 compared to the same period in 2021.

Loss from Discontinued Operation, net of tax

There was no loss from discontinued operation, net of tax for the six months ended June 30, 2022 compared to a loss from discontinued operation, net of tax of $5,533 for the six months ended June 30, 2021.

There was no loss from discontinued operation, net of tax for the nine months ended September 30, 2022 compared to a loss from discontinued operation, net of tax of $12,500 for the nine months ended September 30, 2021.

Loss from discontinued operation includes our Pool business and, as discussed above, the Pool business was sold on February 12, 2021.

As a result of the foregoing factors, net income increased by $56,258, or 134.4%, to $98,116 for the six months ended June 30, 2022 compared to $41,858 for the six months ended June 30, 2021.

Expedited Freight - Six Months Ended June 30, 2022 compared to Six Months Ended June 30, 2021

The following table sets forth the financial data of our Expedited Freight segment for the six months ended June 30, 2022 and 2021 (unaudited and in thousands):

Six Months Ended

2022 Percent of Revenue June 30,

As a result of the foregoing factors, net income increased by $84,855, or 129.8%, to $150,249 for the nine months ended September 30, 2022 compared to $65,394 for the nine months ended September 30, 2021.

Expedited Freight - Nine Months Ended September 30, 2022 compared to Nine Months Ended September 30, 2021

The following table sets forth the financial data of our Expedited Freight segment for the nine months ended September 30, 2022 and 2021 (unaudited and in thousands):

Nine Months Ended

September 30,

2022 Percent of Revenue September 30,

2021 Percent of Revenue Change Percent Change

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Expedited Freight Operating Statistics

Six Months Ended

2022 June 30,

Nine Months Ended

September 30,

2022 September 30,

2021 Percent Change

18 unchanged sentences

Operating Revenues

Expedited Freight operating revenues increased $129,527, or 19.7%, to $785,448 for the six months ended June 30, 2022 from $655,921 for the six months ended June 30, 2021.

Expedited Freight operating revenues increased $183,605, or 18.4%, to $1,181,083 for the nine months ended September 30, 2022 from $997,478 for the nine months ended September 30, 2021.

The increase was attributable to higher Network, Truckload and Final Mile revenue.

Network revenue increased due to a 4.9% increase in tonnage and a 10.9% increase in revenue per hundredweight ex fuel as compared to the prior year.

Network revenue increased due to a 3.8% increase in tonnage and a 9.6% increase in revenue per hundredweight ex fuel as compared to the same period in the prior year.

The increase in tonnage reflects an increase in weight per shipment of 11.2% on 6.7% fewer number of shipments.

The increase in the weight per shipment was the result of more dense freight in our network driven by our freight rationalization actions to capture higher quality freight.

The increase in the weight per shipment was the result of more dense freight in our network primarily driven by our freight rationalization actions to capture higher quality freight.

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Truckload and Final Mile revenue increased $8,660 and $12,114, respectively, primarily due to continued strong demand for our services.

Other revenue, which includes warehousing and terminal handling, decreased $1,948 due to the lower number of shipments.

Other revenue, which includes warehousing and terminal handling, increased $16,150 due to the pricing initiatives, partially offset by the lower number of shipments.

Purchased Transportation

Expedited Freight purchased transportation increased $56,597, or 15.9%, to $412,609 for the six months ended June 30, 2022 from $356,012 for the six months ended June 30, 2021.

Purchased transportation was 52.5% of Expedited Freight operating revenue for the six months ended June 30, 2022 compared to 54.3% for the same period in 2021.

Expedited Freight purchased transportation increased $74,784, or 13.9%, to $613,392 for the nine months ended September 30, 2022 from $538,608 for the nine months ended September 30, 2021.

Purchased transportation was 51.9% of Expedited Freight operating revenue for the nine months ended September 30, 2022 compared to 54.0% for the same period in 2021.

Expedited Freight purchased transportation includes Leased Capacity Providers and third party carriers, while Company-employed drivers are included in salaries, wages and employee benefits.

The increase in purchased transportation expense was primarily due to higher Leased Capacity Provider and third party carrier costs, and the change in the mix of freight capacity purchased from Leased Capacity Providers, third party carriers and Company-employed drivers for Network and Truckl oad services.

For the six months ended June 30, 2022, we purchased 62.6%, 34.1% and 3.3% of our freight capacity from Leased Capacity Providers, third party carriers and Company-employed drivers, respectively.

For the nine months ended September 30, 2022, we purchased 65.7%, 30.9% and 3.4% of our freight capacity from Leased Capacity Providers, third party carriers and Company-employed drivers, respectively.

This compares to 66.7%, 29.7% and 3.6% in the same period in 2021.

Salaries, Wages, and Employee Benefits

Expedited Freight salaries, wages and employee benefits increased $8,470, or 6.6%, to $137,717 for the six months ended June 30, 2022 from $129,247 for the six months ended June 30, 2021.

Salaries, wages and employee benefits were 17.5% of Expedited Freight operating revenues for the six months ended June 30, 2022 compared to 19.7% for the same period in 2021.

The increase in salaries, wages and employee benefits expense was primarily due to additional employees hired in response to the increased volumes for the six months ended June 30, 2022, higher salaries and wages and an increased reserve for incentive compensation as compared to the same period in 2021.

Expedited Freight salaries, wages and employee benefits increased $14,114, or 7.2%, to $209,259 for the nine months ended September 30, 2022 from $195,145 for the nine months ended September 30, 2021.

Salaries, wages and employee benefits were 17.7% of Expedited Freight operating revenues for the nine months ended September 30, 2022 compared to 19.6% for the same period in 2021.

The increase in salaries, wages and employee benefits expense was primarily due to additional employees hired in response to the increased volumes in 2022, higher salaries and wages, and an increase in the reserve for incentive compensation as compared to the same period in 2021.

Operating Leases

Expedited Freight operating leases increased $2,578, or 8.9%, to $31,664 for the six months ended June 30, 2022 from $29,086 for the six months ended June 30, 2021.

Operating leases were 4.0% of Expedited Freight operating revenues for the six months ended June 30, 2022 compared to 4.4% for the same period in 2021.

The increase in operating leases expense was primarily due to higher facility expense, partially offset by fewer equipment leases for the six months ended June 30, 2022 as compared to the same period in 2021.

Expedited Freight operating leases increased $3,710, or 8.5%, to $47,483 for the nine months ended September 30, 2022 from $43,773 for the nine months ended September 30, 2021.

Operating leases were 4.0% of Expedited Freight operating revenues for the nine months ended September 30, 2022 compared to 4.4% for the same period in 2021.

The increase in operating leases expense was primarily due to higher facility expense, partially offset by fewer equipment leases for the nine months ended September 30, 2022 as compared to the same period in 2021.

Depreciation and Amortization

Expedited Freight depreciation and amortization increased $1,721, or 12.7%, to $15,298 for the six months ended June 30, 2022 from $13,577 for the six months ended June 30, 2021.

Depreciation and amortization was 1.9% of Expedited Freight operating revenues for the six months ended June 30, 2022 compared to 2.1% for the same period in 2021.

The increase in depreciation and amortization expense was primarily due to an increase in equipment depreciation for the six months ended June 30, 2022 as compared to the same period in 2021 .

Expedited Freight depreciation and amortization increased $3,077, or 15.1%, to $23,438 for the nine months ended September 30, 2022 from $20,361 for the nine months ended September 30, 2021.

Depreciation and amortization was 2.0% of Expedited Freight operating revenues for both the nine months ended September 30, 2022 and 2021.

The increase in depreciation and amortization expense was primarily due to an increase in equipment depreciation for the nine months ended September 30, 2022 as compared to the same period in 2021 .

Insurance and Claims

Expedited Freight insurance and claims increased $1,066, or 6.7%, to $17,062 for the six months ended June 30, 2022 from $15,996 for the six months ended June 30, 2021.

Insurance and claims were 2.2% of Expedited Freight operating revenues for the six months ended June 30, 2022 compared to 2.4% for the same period in 2021.

The increase in insurance and claims expense was primarily due to an increase in vehicle repairs and insurance premiums, partially offset by a decrease in cargo claims for the six months ended June 30, 2022 as compared to the same period in 2021 .

Expedited Freight insurance and claims increased $2,188, or 9.1%, to $26,258 for the nine months ended September 30, 2022 from $24,070 for the nine months ended September 30, 2021.

Insurance and claims were 2.2% of Expedited Freight operating revenues for the nine months ended September 30, 2022 compared to 2.4% for the same period in 2021.

The increase in insurance and claims expense was primarily due to an increase in insurance premiums and vehicle repairs, partially offset by a decrease in cargo claims and vehicle liability claims for the nine months ended September 30, 2022 as compared to the same period in 2021 .

See additional discussion over the consolidated change in self-insurance reserves in the “Other Operations ” section below.

Expedited Freight fuel expense increased $1,739, or 42.0%, to $5,879 for the six months ended June 30, 2022 from $4,140 for the six months ended June 30, 2021.

Fuel expense was 0.7% of Expedited Freight operating revenues for the six months ended June 30, 2022 compared to 0.6% for the same period in 2021.

Fuel expense increased primarily due to the rise in the average price of fuel during the six months ended June 30, 2022.

Expedited Freight fuel expense increased $2,387, or 37.5%, to $8,752 for the nine months ended September 30, 2022 from $6,365 for the nine months ended September 30, 2021.

Fuel expense was 0.7% of Expedited Freight operating revenues for the nine months ended September 30, 2022 compared to 0.6% for the same period in 2021.

Fuel expense increased primarily due to the rise in the average price of fuel during the nine months ended September 30, 2022.

Other Operating Expenses

Expedited Freight other operating expenses increased $5,787, or 11.9%, to $54,432 for the six months ended June 30, 2022 from $48,645 for the six months ended June 30, 2021.

Other operating expenses were 6.9% of Expedited Freight operating revenues for the six months ended June 30, 2022 compared to 7.4% for the same period in 2021.

Expedited Freight other operating expenses increased $10,108, or 13.4%, to $85,410 for the nine months ended September 30, 2022 from $75,302 for the nine months ended September 30, 2021.

Other operating expenses were 7.2% of Expedited Freight operating revenues for the nine months ended September 30, 2022 compared to 7.5% for the same period in 2021.

Other operating expenses include equipment maintenance, facility expenses, legal and professional fees, and other over-the-road costs.

The increase in other operating expenses was primarily due to an increase in equipment maintenance costs, terminal and office expenses, recruiting costs, professional fees and travel expenses for the six months ended June 30, 2022 as compared to the same period in 2021 .

The increase in other operating expenses was primarily due to an increase in maintenance costs, terminal and office expenses, recruiting costs, and travel expenses for the nine months ended September 30, 2022 as compared to the same period in 2021 .

Income from Operations

Expedited Freight income from operations increased $51,569, or 87.1%, to $110,787 for the six months ended June 30, 2022 compared to $59,218 for the six months ended June 30, 2021.

Income from operations was 14.1% of Expedited Freight operating revenues in the six months ended June 30, 2022 compared to 9.0% for the same period in 2021.

Expedited Freight income from operations increased $73,237, or 78.0%, to $167,091 for the nine months ended September 30, 2022 compared to $93,854 for the nine months ended September 30, 2021.

Income from operations was 14.1% of Expedited Freight operating revenues in the nine months ended September 30, 2022 compared to 9.4% for the same period in 2021.

The increase in income from operations as a percentage of operating revenues was primarily due to increased tonnage and revenue per hundredweight ex fuel combined with higher fuel surcharge revenue, partially offset by the change in mix of freight capacity purchased from Leased Capacity Providers, third party carriers and Company-employed drivers, and higher Leased Capacity Provider and third party carrier costs.

Intermodal - Six Months Ended June 30, 2022 compared to Six Months Ended June 30, 2021

The following table sets forth the financial data of our Intermodal segment for the six months ended June 30, 2022 and 2021 (unaudited and in thousands):

Six Months Ended

2022 Percent of Revenue June 30,

Intermodal - Nine Months Ended September 30, 2022 compared to Nine Months Ended September 30, 2021

The following table sets forth the financial data of our Intermodal segment for the nine months ended September 30, 2022 and 2021 (unaudited and in thousands):

Nine Months Ended

September 30,

2022 Percent of Revenue September 30,

2021 Percent of Revenue Change Percent Change

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Intermodal Operating Statistics

Six Months Ended

2022 June 30,

Nine Months Ended

September 30,

2022 September 30,

2021 Percent Change

4 unchanged sentences

Operating Revenues

Intermodal operating revenues increased $69,204, or 54.2%, to $196,851 for the six months ended June 30, 2022 from $127,647 for the six months ended June 30, 2021.

Intermodal operating revenues increased $105,452, or 51.2%, to $311,272 for the nine months ended September 30, 2022 from $205,820 for the nine months ended September 30, 2021.

The increase in operating revenue was primarily attributable to a 58.7% increase in drayage revenue per shipment as compared to the same period in 2021.

The increase in drayage revenue per shipment was driven by execution of our pricing initiatives, the acquisition of BarOle in November 2021 and Edgmon in May 2022, higher accessorial revenue in support of our customers and continued strong demand for our services.

The increase in drayage revenue per shipment was driven by execution of our pricing initiatives, the acquisitions of BarOle in November 2021 and Edgmon in May 2022, higher accessorial revenue in support of our customers and continued strong demand for our services.

In addition, fuel surcharge revenue increased $19,978, or 101.5% as a result of the rise in the average price of fuel.

Purchased Transportation

Intermodal purchased transportation increased $7,461, or 16.8%, to $51,831 for the six months ended June 30, 2022 from $44,370 for the six months ended June 30, 2021.

Purchased transportation was 26.3% of Intermodal operating revenues for the six months ended June 30, 2022 compared to 34.8% for the same period in 2021.

Intermodal purchased transportation increased $13,087, or 19.4%, to $80,441 for the nine months ended September 30, 2022 from $67,354 for the nine months ended September 30, 2021.

Purchased transportation was 25.8% of Intermodal operating revenues for the nine months ended September 30, 2022 compared to 32.7% for the same period in 2021.

Intermodal purchased transportation includes Leased Capacity Providers and third party carriers, while Company-employed drivers are included in salaries, wages and employee benefits.

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Salaries, Wages, and Employee Benefits

Intermodal salaries, wages and employee benefits increased $6,473, or 21.4%, to $36,766 for the six months ended June 30, 2022 compared to $30,293 for the six months ended June 30, 2021.

Salaries, wages and employee benefits were 18.7% of Intermodal operating revenues for the six months ended June 30, 2022 compared to 23.7% for the same period in 2021.

The increase in salaries, wages and employee benefits expense was primarily due to additional employees hired for the six months ended June 30, 2022 and an increased reserve for incentive compensation as compared to the same period in 2021.

Intermodal salaries, wages and employee benefits increased $6,822, or 14.2%, to $54,711 for the nine months ended September 30, 2022 compared to $47,889 for the nine months ended September 30, 2021.

Salaries, wages and employee benefits were 17.6% of Intermodal operating revenues for the nine months ended September 30, 2022 compared to 23.3% for the same period in 2021.

The increase in salaries, wages and employee benefits expense was primarily due to additional employees hired in 2022 and an increase in the reserve for incentive compensation as compared to the same period in 2021.

Operating Leases

Intermodal operating leases increased $4,130, or 40.0%, to $14,467 for the six months ended June 30, 2022 from $10,337 for the six months ended June 30, 2021.

Operating leases were 7.3% of Intermodal operating revenues for the six months ended June 30, 2022 compared to 8.1% for the same period in 2021.

The increase in operating leases expense was primarily due to additional equipment leases for the six months ended June 30, 2022 as compared to the same period in 2021.

Intermodal operating leases increased $7,420, or 45.8%, to $23,613 for the nine months ended September 30, 2022 from $16,193 for the nine months ended September 30, 2021.

Operating leases were 7.6% of Intermodal operating revenues for the nine months ended September 30, 2022 compared to 7.9% for the same period in 2021.

The increase in operating leases expense was due to higher facility expense and additional equipment leases for the nine months ended September 30, 2022 as compared to the same period in 2021.

Depreciation and Amortization

Intermodal depreciation and amortization increased $2,278, or 45.1%, to $7,326 for the six months ended June 30, 2022 from $5,048 for the six months ended June 30, 2021.

Depreciation and amortization was 3.7% of Intermodal operating revenues for the six months ended June 30, 2022 compared to 4.0% for the same period in 2021 .

Intermodal depreciation and amortization increased $3,791, or 49.5%, to $11,455 for the nine months ended September 30, 2022 from $7,664 for the nine months ended September 30, 2021.

Depreciation and amortization was 3.7% of Intermodal operating revenues for the nine months ended September 30, 2022 compared to 3.7% for the same period in 2021 .

Insurance and Claims

Intermodal insurance and claims decreased $359, or 7.5%, to $4,398 for the six months ended June 30, 2022 from $4,757 for the six months ended June 30, 2021.

Insurance and claims were 2.2% of Intermodal operating revenues for the six months ended June 30, 2022 compared to 3.7% for the same period in 2021.

The decrease in insurance and claims expense was primarily due to the decrease in insurance premiums and vehicle liability claims, partially offset by an increase in vehicle repairs during the six months ended June 30, 2022 as compared to the same period in 2021.

Intermodal insurance and claims decreased $826, or 11.1%, to $6,639 for the nine months ended September 30, 2022 from $7,465 for the nine months ended September 30, 2021.

Insurance and claims were 2.1% of Intermodal operating revenues for the nine months ended September 30, 2022 compared to 3.6% for the same period in 2021.

The decrease in insurance and claims expense was primarily due to the decrease in insurance premiums and vehicle liability claims, partially offset by an increase in vehicle repairs during the nine months ended September 30, 2022 as compared to the same period in 2021.

See additional discussion over the consolidated change in self-insurance reserves in the “Other Operations ” section below.

Intermodal fuel expense increased $4,677, or 129.1%, to $8,299 for the six months ended June 30, 2022 from $3,622 for the six months ended June 30, 2021.

Fuel expense was 4.2% of Intermodal operating revenues for the six months ended June 30, 2022 compared to 2.8% for the same period in 2021.

Intermodal fuel expense increased primarily due to the rise in the average price of fuel for the six months ended June 30, 2022 as compared to the same period in 2021.

Intermodal fuel expense increased $6,345, or 108.4%, to $12,198 for the nine months ended September 30, 2022 from $5,853 for the nine months ended September 30, 2021.

Fuel expense was 3.9% of Intermodal operating revenues for the nine months ended September 30, 2022 compared to 2.8% for the same period in 2021.

Intermodal fuel expense increased primarily due to the rise in the average price of fuel for the nine months ended September 30, 2022 as compared to the same period in 2021.

Other Operating Expenses

Intermodal other operating expenses increased $31,044, or 190.2%, to $47,369 for the six months ended June 30, 2022 compared to $16,325 for the six months ended June 30, 2021.

Other operating expenses were 24.1% of Intermodal operating revenues for the six months ended June 30, 2022 compared to 12.8% for the same period in 2021.

The increase in Intermodal other operating expenses was primarily due to additional expenses incurred in support of the increased accessorial revenues, increased bad debt expense and higher legal and professional fees for the six months ended June 30, 2022 as compared to the same period in 2021.

Intermodal other operating expenses increased $47,415, or 149.1%, to $79,210 for the nine months ended September 30, 2022 compared to $31,795 for the nine months ended September 30, 2021.

Other operating expenses were 25.4% of Intermodal operating revenues for the nine months ended September 30, 2022 compared to 15.4% for the same period in 2021.

The increase in Intermodal other operating expenses was primarily due to additional expenses incurred in support of the increased accessorial revenues, maintenance costs, bad debt expense, terminal and office expenses and legal and professional fees for the nine months ended September 30, 2022 as compared to the same period in 2021.

Income from Operations

Intermodal income from operations increased by $13,500, or 104.7%, to $26,395 for the six months ended June 30, 2022 compared to $12,895 for the six months ended June 30, 2021.

Income from operations was 13.4% of Intermodal operating revenues for the six months ended June 30, 2022 compared to 10.1% for the same period in 2021.

Intermodal income from operations increased by $21,398, or 99.0%, to $43,005 for the nine months ended September 30, 2022 compared to $21,607 for the nine months ended September 30, 2021.

Income from operations was 13.8% of Intermodal operating revenues for the nine months ended September 30, 2022 compared to 10.5% for the same period in 2021.

Other Operations - Six Months Ended June 30, 2022 compared to Six Months Ended June 30, 2021

Other operating included an $4,286 operating loss during the six months ended June 30, 2022 compared to a $7,265 operating loss during the six months ended June 30, 2021.

The change in the operating loss was primarily due to an increase in s elf-insurance reserves for vehicle liability claims, reserve for an incentive program established for certain employees in 2021, legal reserves and bad debt expense related to other receivables, partially offset by a decrease in the reserves for group health insurance claims and professional fees.

Other Operations - Nine Months Ended September 30, 2022 compared to Nine Months Ended September 30, 2021

Other operating included an $5,535 operating loss during the nine months ended September 30, 2022 compared to a $8,137 operating loss during the nine months ended September 30, 2021.

The change in the operating loss was primarily due to an increase in self-insurance reserves for vehicle liability claims, reserve for an incentive program established for certain employees in 2021, and legal reserves, partially offset by a decrease in the reserves for group health insurance claims and professional fees.

The increase in the self-insurance reserves for vehicle liability claims was due to the unfavorable loss development factor of historical claims.

Professional fees related to cybersecurity and shareholder engagement activities in the amount of $6,955 were incurred during the six months ended June 30, 2021.

Similar professional fees were not incurred during the six months ended June 30, 2022.

Professional fees related to cybersecurity and shareholder engagement activities in the amount of $6,955 were incurred during the nine months ended September 30, 2021.

Similar professional fees were not incurred during the nine months ended September 30, 2022.

Critical Accounting Policies

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with the remaining unpaid principal being due on July 20, 2026.

As of June 30, 2022, we were in compliance with our financial covenants contained in the credit facility and expect to maintain such compliance.

As of September 30, 2022, we were in compliance with our financial covenants contained in the credit facility and expect to maintain such compliance.

In the event that we encounter difficulties, our historical relationships with our lenders has been strong and we anticipate their continued long-term support of our business.

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Continuing Operations

Net cash provided by operating activities of continuing operations was $112,820 for the six months ended June 30, 2022 compared to $39,661 for the six months ended June 30, 2021.

The increase in net cash provided by operating activities of continuing operations was primarily due to the increase in net income from continuing operations after consideration of non-cash items and a decrease in other receivables, partially offset by a decrease in accounts payable, accrued expenses and other long-term liabilities.

Net cash provided by operating activities of continuing operations was $196,814 for the nine months ended September 30, 2022 compared to $82,752 for the nine months ended September 30, 2021.

Other receivables changed due to the completion of the services rendered under the Transition Services Agreement with the buyer of the Pool business in October 2021.

Accounts payable, accrued expenses and other long-term liabilities changed due to the number of days to accrue for payroll expense.

Net cash used in investing activities of continuing operations was $58,339 for the six months ended June 30, 2022 compared to $29,804 for the six months ended June 30, 2021.

Capital expenditures for the first six months of 2022 were $18,673, which primarily related to the purchase of technology and operating equipment, and the investment in the expansion of our national hub in Columbus, Ohio.

Capital expenditures for the first six months of 2021 were $8,575, which primarily related to the investment in the expansion of our national hub in Columbus, Ohio.

Investing activities of continuing operations for the first six months of 2022 included the acquisition of Edgmon Trucking, LLC for a preliminary purchase price of $40,433 while investing activities for the first six months of 2021 included the acquisition of Proficient Transport for $15,000 and J&P Hall Express Delivery for $7,543.

Net cash used in financing activities of continuing operations was $44,411 for the six months ended June 30, 2022 compared to cash provided by financing activities of continuing operations of $733 for the six months ended June 30, 2021.

The change in the net cash used in financing activities of continuing operations was primarily due to the decreased proceeds from the credit facility, partially offset by the decreased repurchases and retirement of common stock for the first six months of 2022 as compared to the same period in 2021.

During the first six month of 2021, proceeds from the credit facility were $45,000 as compared to during the first six months of 2022 payments on the credit facility were $8,250.

Net cash used in investing activities of continuing operations was $64,411 for the nine months ended September 30, 2022 compared to $43,729 for the nine months ended September 30, 2021.

Capital expenditures for the first nine months of 2022 were $25,401, which primarily related to the purchase of technology and operating equipment, and the investment in the expansion of our national hub in Columbus, Ohio.

Capital expenditures for the first nine months of 2021 were $23,015, which primarily related to the investment in the expansion of our national hub in Columbus, Ohio.

Investing activities of continuing operations for the first nine months of 2022 included the acquisition of Edgmon Trucking, LLC for a preliminary purchase price of $40,433 while investing activities for the first nine months of 2021 included the acquisition of Proficient Transport for $15,510 and J&P Hall Express Delivery for $7,543.

Net cash used in financing activities of continuing operations was $122,873 for the nine months ended September 30, 2022 compared to $27,347 for the nine months ended September 30, 2021.

The change in the net cash used in financing activities of continuing operations was primarily due to the proceeds received from credit facility in 2021 and the payments made on the credit facility in 2022.

During the first nine months of 2021, proceeds from the credit facility were $45,000 as compared to during the first nine months of 2022 payments on the credit facility were $48,625 .

Discontinued Operation

Net cash used in operating activities of discontinued operation was $— for the six months ended June 30, 2022 compared to $6,902 for the six months ended June 30, 2021.

Net cash used in operating activities of discontinued operation was $— for the nine months ended September 30, 2022 compared to $6,902 for the nine months ended September 30, 2021.

The change in net cash used in operating activities of discontinued operation was primarily related to a decrease in net income of discontinued operation after consideration of non-cash items.

The sale of Pool was completed on February 12, 2021.

Net cash provided by investing activities of discontinued operation was $— for the six months ended June 30, 2022 compared to $8,020 for the six months ended June 30, 2021.

The change in the net cash provided by investing activities of discontinued operation was due to the proceeds received from the sale of the Pool business during the first six months of 2021 .

Net cash provided by investing activities of discontinued operation was $— for the nine months ended September 30, 2022 compared to $8,020 for the nine months ended September 30, 2021.

The change in the net cash provided by investing activities of discontinued operation was due to the proceeds received from the sale of the Pool business during the first nine months of 2021 .

The sale of Pool was completed on February 12, 2021.

Net cash used in financing activities of discontinued operation was $— for the six months ended June 30, 2022 compared to $1,118 for the six months ended June 30, 2021.

Net cash used in financing activities of discontinued operation was $— for the nine months ended September 30, 2022 compared to $1,118 for the nine months ended September 30, 2021.

The change in the net cash used in financing activities of discontinued operation was due to decreased contributions to the parent.

1 unchanged sentence

Share Repurchase Program

During the six months ended June 30, 2022 and 2021, we repurchased 176 and 366 shares of our common stock, respectively, for approximately $17,780 and $33,992, respectively, through open market transactions.

During the nine months ended September 30, 2022 and 2021, we repurchased 466 and 535 shares of our common stock, respectively, for approximately $47,774 and $48,989, respectively, through open market transactions.

All shares received were retired upon receipt, and the excess of the purchase price over the par value per share was recorded to “Retained Earnings” in our Condensed Consolidated Balance Sheets.

24 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis