(1) Basis of PresentationConsolidated Financial Statements

The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial statements, and therefore do not include all information and disclosures required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, such statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present our consolidated financial condition, results of operations and cash flows for the interim periods presented. The results of operations for any interim period do not necessarily indicate the results for the full year. The unaudited interim consolidated condensed financial statements should be read with reference to the consolidated financial statements and notes to consolidated financial statements in our 20132014 Annual Report on Form 10-K.

(2) Earnings per Common Share

Basic and diluted earnings per common share were computed as follows: 

              Options totaling 171,500 equivalent shares for each of the three-month160,800 and nine-month periods ended September 30, 2014, and 67,500 and 355,350108,500 equivalent shares for the three-month and nine-month periods ended September 30, 2013,March 31, 2015 and March 31, 2014, respectively, were outstanding but were not included in the calculation of diluted earnings per share because including the options in the denominator would be antidilutive, or decrease the number of weighted-average shares, due to their exercise prices exceeding the average market price of the common shares, or because inclusion of average unrecognized compensation expense in the calculation would cause the options to be antidilutive.

Unvested performance unit awards totaling 39,88548,861 and 35,964 equivalent shares for each of the three-month and nine-month periods ended September 30,March 31, 2015 and March 31, 2014, and 49,404 equivalent shares for each of the three-month and nine-month periods ended September 30, 2013,respectively, were considered outstanding but were not included in the calculation of diluted earnings per share because inclusion of average unrecognized compensation expense in the calculation would cause the performance units to be antidilutive.

(3) Stock Split

On June 14, 2013, we effected a three - for - two stock split of our common stock, $.01 par value, in the form of a 50% stock dividend. Our consolidated condensed financial statements, related notes, and other financial data contained in this report have been adjusted to give retroactive effect to the stock split for all periods presented.

(4)   Long-Term Debt

We maintain a credit agreement that provides for an unsecured committed credit facility which matures in May 2016.December 2019. The aggregate principal amount of the credit facility of $50.0 million may be increased at our option, subject to completion of signed amendments with the lender, up to a maximum aggregate principal amount of $75.0 million. At September 30, 2014,March 31, 2015, there was anno outstanding principal balance of $24.7 million on the credit facility. As of that date, we had outstanding standby letters of credit of $9.2 million and remaining borrowing availability of $16.1$40.8 million. This facility bears interest at a variable rate based on the London Interbank Offered Rate or the lender’s Prime Rate, in each case plus/minus applicable margins. The weighted average interest rate for the facility was 0.99%0.84% at September 30, 2014.December 31, 2014, the last quarter-end date with an outstanding principal balance.

(4)   Related Party Transactions

We purchase fuel and obtain tires and related services from Bauer Built, Inc., or BBI. Jerry M. Bauer, one of our directors, is the chairman of the board and chief executive officer and the principal stockholder of BBI. We paid BBI $413,000$55,000 in the first ninethree months of 20142015 and $449,000$138,000 in the first ninethree months of 20132014 for fuel and tire services. In addition, we paid $1.1 million$219,000 in the first ninethree months of 20142015 and $1.3 million$238,000 in the first ninethree months of 20132014 to tire manufacturers for tires that we purchased from the tire manufacturers but were provided by BBI. BBI received commissions from the tire manufacturers related to these purchases.

We provide transportation services to MWLMW Logistics, LLC (MWL) as described in Note 8.7.

(5)   Dividends

In 2010, we announced that our Board of Directors approved a regular cash dividend program to our stockholders, subject to approval each quarter. Quarterly cash dividends of $0.025 per share of common stock were declared in each of the first three quarters of 2014. Quarterly cash dividends of $0.017 per share of common stock were declared in each of the first two quarters of 2013,2015 and of $0.025 per share of common stock were declared in the third quarter of 2013.2014.

(6)   Accounting for Share-based Payment Arrangement Compensation

We account for share-based payment arrangements in accordance with Financial Accounting Standards Board Accounting Standards Codification, or FASB ASC, 718,Compensation – Stock Compensation. During the first ninethree months of 2014,2015, there were no significant changes to the structure of our stock-based award plans. Pre-tax compensation expense related to stock options and performance unit awards recorded in the first ninethree months of 2015 and 2014 was $273,000 and 2013 was $720,000 and $862,000,$211,000, respectively. See Note 11 to our consolidated financial statements in our 20132014 Annual Report on Form 10-K for a detailed description of stock-based awards under our 2005 Stock Incentive Plan.

(7)   Equity Investment

We own a 45% equity interest in MWL, a third-party provider of logistics services to the transportation industry. A non-related party owns the other 55% equity interest in MWL. Pursuant to the guidance in the Variable Interest Entities (VIE) Subsections of FASB ASC 810,Consolidation, we included the accounts of MWL in our consolidated financial statements from April 1, 2004 to March 27, 2013, as we were deemed to be the entity’s primary beneficiary. On March 28, 2013, the other member of MWL made a capital contribution to MWL which triggered a VIE reconsideration event, and it was no longer required to be consolidated as of that date. Accordingly, we deconsolidated MWL and have accounted for our ownership interest in MWL under the equity method of accounting, effective as of March 28, 2013.

Under the deconsolidation accounting guidelines, the investor’s opening investment is recorded at fair value as of the date of deconsolidation. The difference between this initial fair value of the investment and the net carrying value is recognized as a gain or loss in earnings. We completed a valuation analysis and have determined that the net carrying value of our equity interest in MWL as of March 28, 2013 of $2.6 million was equal to its fair value and, as such, no gain or loss was recognized upon deconsolidation of MWL. In determining the fair value, we utilized a combination of the income and market approaches, and equally weighed the business enterprise value of MWL provided by each approach. The income approach included the following inputs and assumptions: (a) an expectation regarding the growth of MWL’s revenue at a compounded average growth rate; (b) a perpetual long-term growth rate; and (c) a discount rate that was based on MWL’s estimated weighted average cost of capital. The market approach included a range of multiples of selected comparable companies applied to MWL’s financial metrics for the trailing twelve months in order to obtain an indication of MWL’s business enterprise value on a minority, marketable basis.

Due to the significance of inputs used in determining the fair value of our equity interest in MWL that are unobservable, the investment is classified within Level 3 of the fair value hierarchy that prioritizes from Level 1 to Level 3 the inputs to fair value valuation techniques under the provisions of the accounting guidance for fair value measurements. Fair value measurements using Level 1 inputs provide the most reliable measure of fair value, while Level 3 inputs generally require significant management judgment.

Following the deconsolidation, as an equity method investment, MWL is considered a related party. We received $5.7$2.0 million and $6.3$1.7 million of our revenue for loads transported by our tractors and arranged by MWL in the nine-monththree-month periods ended September 30, 2014 and September 30, 2013, respectively. Prior to deconsolidation effective March 28, 2013, these inter-segment revenues were eliminated in consolidation. Inter-segment revenue eliminated in consolidation was $2.1 million for the three-month period ended March 31, 2013.2015 and March 31, 2014, respectively. As of September 30, 2014,March 31, 2015, we also had both a trade receivable in the amount of $1.1$880,000 from MWL and an accrued liability of $2.9 million and a current receivable of $1.7 million fromto MWL for the excess of amounts drawn by MWL over the payments by MWL’s customers into our lockbox account.account over the amounts drawn on the account by MWL.

(8)   Fair Value of Financial Instruments

The carrying amounts of accounts receivable and accounts payable approximate fair value because of the short maturity of these instruments. The carrying amount of our long-term debt approximates fair value as its interest rate is based upon prevailing market rates.

(9)  Commitments and Contingencies

We are committed to purchase $12.8$67.8 million of new revenue equipment in the remainder of 20142015; building construction expenditures of $4.9 million in the remainder of 2015; and operating lease obligation expenditures totaling $685,000$759,000 through 2017.2018.

We self-insure, in part, for losses relating to workers’ compensation, auto liability, general liability, cargo and property damage claims, along with employees’ health insurance with varying risk retention levels. We maintain insurance coverage for per-incident and total losses in excess of these risk retention levels in amounts we consider adequate based upon historical experience and our ongoing review, and reserve currently for the estimated cost of the uninsured portion of pending claims.

We are also involved in other legal actions that arise in the ordinary course of business. In the opinion of management, based upon present knowledge of the facts, it is remote that the ultimate outcome of any such legal actions will have a material adverse effect upon our long-term financial position or results of operations.

(10)  Business Segments

We have six current operating segments that have been aggregated into twofour reporting segments (Truckload, Dedicated, Intermodal and Logistics)Brokerage) for financial reporting purposes. Information for the first quarter of 2014, which was previously aggregated into two reporting segments, has been shown in the same four segments for comparison purposes.

The primary source of our operating revenue is truckload revenue, which we generateprovided by transporting freight for our customers and report within our Truckload segment. Generally, we are paid by the mile for oursegment through a combination of regional short-haul and medium-to-long-haul full-load transportation services. We also derive truckload revenue from fuel surcharges, loading and unloading activities, equipment detentiontransport food and other ancillary services.consumer packaged goods that require a temperature-controlled or insulated environment across the United States and into and out of Mexico and Canada.

Our operating revenue also includes revenue reportedDedicated segment provides customized transportation solutions tailored to meet individual customers’ requirements, utilizing temperature-controlled trailers, dry vans and other specialized equipment within the United States. Our customer contracts range from three to five years and are subject to annual rate reviews.

Our Intermodal segment transports our Logistics segment, which consists of revenue from our internal brokerage and intermodal operations, and through our 45% interest in MWL, a third-party provider of logistics services tocustomers’ freight within the transportation industry, until we deconsolidated MWL effective March 28, 2013. Brokerage services involve arranging for another company to transport freight for our customers while we retain the billing, collection and customer management responsibilities. Intermodal services involve the transport ofUnited States primarily utilizing our temperature-controlled trailers and also, through March 2015, our dry containers on railroad flatcars for portions of trips, with the balance of the trips using our tractors or, to a lesser extent, contracted carriers.

Our Brokerage segment arranges for smaller third-party carriers to transport freight for our customers in temperature-controlled trailers and dry vans within the United States and into and out of Mexico while we retain the billing, collection and customer management responsibilities.

The following table sets forth for the periods indicated our operating revenue and operating income by segment. We do not prepare separate balance sheets by segment and, as a result, assets are not separately identifiable by segment.

             Truckload segment depreciation expense was $15.5$13.2 million and $15.0$13.3 million, and LogisticsDedicated segment depreciation expense was $1.8$2.9 million and $1.3$1.5 million, Intermodal segment depreciation expense was $1.5 million and $1.4 million, and Brokerage segment depreciation expense was $270,000 and $224,000, in the three-month periods ended September 30,March 31, 2015 and March 31, 2014, and September 30, 2013, respectively. Truckload segment depreciation expense was $45.3 million and $44.5 million, and Logistics segment depreciation expense was $5.2 million and $3.7 million, in the first nine months of 2014 and 2013, respectively.

(11) Use of Estimates

             We must make estimates and assumptions to prepare the consolidated condensed financial statements in conformity with U.S. generally accepted accounting principles. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities in the consolidated condensed financial statements and the reported amount of revenue and expenses during the reporting period. These estimates are primarily related to insurance and claims accruals and depreciation. Ultimate results could differ from these estimates.

(13)

Item 2. Management’s Discussion and Analysis of Financial Condition andResults of Operations.

              The following discussion and analysis of our financial condition and results of operations should be read together with the selected consolidated financial data and our consolidated condensed financial statements and the related notes appearing elsewhere in this report. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including but not limited to those included in our Form 10-K, Part 1, Item 1A for the year ended December 31, 20134. We do not assume, and specifically disclaim, any obligation to update any forward-looking statement contained in thisreport.

Overview

The primary source of our operating revenue is truckload revenue, which we generateprovided by transporting regional, long-haul and dedicated freight for our customers and report within our Truckload segment. segment through a combination of regional short-haul and medium-to-long-haul full-load transportation services. We transport food and other consumer packaged goods that require a temperature-controlled or insulated environment across the United States and into and out of Mexico and Canada.

Our Dedicated segment provides customized transportation solutions tailored to meet individual customers’ requirements, utilizing temperature-controlled trailers, dry vans and other specialized equipment within the United States. Our customer contracts range from three to five years and are subject to annual rate reviews.

Generally, we are paid by the mile for our Truckload and Dedicated services. We also derive truckloadTruckload and Dedicated revenue from fuel surcharges, loading and unloading activities, equipment detention and other ancillary services. The main factors that affect our truckloadTruckload and Dedicated revenue are the rate per mile we receive from our customers, the percentage of miles for which we are compensated, the number of miles we generate with our equipment and changes in fuel prices. We monitor our revenue production primarily through average truckloadTruckload and Dedicated revenue, net of fuel surcharges, per tractor per week. We also analyze our average truckloadTruckload and Dedicated revenue, net of fuel surcharges, per total mile, non-revenue miles percentage, the miles per tractor we generate, our fuel surcharge revenue, our accessorial revenue and our other sources of operating revenue.

Our operating revenue also includes revenue reportedIntermodal segment transports our customers’ freight within our Logistics segment, which consists of revenue from our internal brokerage and intermodal operations, and through our 45% interest in MWL, a third-party provider of logistics services to the transportation industry, until we deconsolidated MWL effective March 28, 2013. Brokerage services involve arranging for another company to transport freight for our customers while we retain the billing, collection and customer management responsibilities. Intermodal services involve the transport ofUnited States primarily utilizing our temperature-controlled trailers and also, through March 2015, our dry containers on railroad flatcars for portions of trips, with the balance of the trips using our tractors or, to a lesser extent, contracted carriers. The main factors that affect our logisticsIntermodal revenue are the rate per mile and other charges we receive from our customers.

Our Brokerage segment arranges for smaller third-party carriers to transport freight for our customers in temperature-controlled trailers and dry vans within the United States and into and out of Mexico while we retain the billing, collection and customer management responsibilities. The main factors that affect our Brokerage revenue are the rate per mile and other charges we receive from our customers.

In addition to the factors discussed above, our operating revenue is also affected by, among other things, the United States economy, inventory levels, the level of truck and rail capacity in the transportation market, a contracting driver market, severe weather conditions and specific customer demand.

Our operating revenue increased $6.4$1.9 million, or 1.3%1.2%, in the first ninethree months of 2014.2015. Our operating revenue, net of fuel surcharges, and MWL revenue, increased $12.9$13.2 million, or 3.3%10.3%, compared with the first ninethree months of 2013.2014. Truckload segment revenue, net of fuel surcharges, was $86.8 million in each of the 2015 and 2014 periods. Dedicated segment revenue, net of fuel surcharges, increased 2.3%85.2% primarily due to an increase in our average truckloadfleet size of 85.5% from the first three months of 2014. Intermodal segment revenue, net of fuel surcharges, per tractor per weekdecreased 7.3% due to the disposal of 3.1%,the overhead-intensive containers that were used in our intermodal operations, partially offset by a decreaseincreased volume with our temperature-controlled trailer service. Brokerage revenue increased 46.2% in our average fleet size of 0.8% from the first ninethree months of 2013. The increase in our average revenue per tractor was primarily2015 due to an increase in our average rate per mile.volume. Fuel surcharge revenue increaseddecreased to $96.2$20.6 million in the first ninethree months of 2015 from $31.9 million in the first three months of 2014, from $96.0 million in the same period of 2013. Logistics segment revenue, net of intermodalwhich was primarily due to lower fuel surcharges and MWL revenue, increased 6.5% compared with the first nine months of 2013. This increase resulted primarily from volume growth in our intermodal services. Logistics revenue as a percentage of our operating revenue, with each net of MWL revenue, was 23.1% in the first nine months of 2014 compared to 22.1% in the first nine months of 2013.prices.

Our profitability is impacted by the variable costs of transporting freight for our customers, fixed costs, and expenses containing both fixed and variable components. The variable costs include fuel expense, driver-related expenses, such as wages, benefits, training, and recruitment, and independent contractor costs, which are recorded under purchased transportation. Expenses that have both fixed and variable components include maintenance and tire expense and our cost of insurance and claims. These expenses generally vary with the miles we travel, but also have a controllable component based on safety, fleet age, efficiency and other factors. Our main fixed costs relate to the acquisition of long-term assets, such as revenue equipment and operating terminals. We expect our annual cost of tractor and trailer ownership will increase in future periods as a result of higher prices of new equipment. Although certain factors affecting our expenses are beyond our control, we monitor them closely and attempt to anticipate changes in these factors in managing our business. For example, fuel prices have significantly fluctuated over the past several years. We manage our exposure to changes in fuel prices primarily through fuel surcharge programs with our customers, as well as through volume fuel purchasing arrangements with national fuel centers and bulk purchases of fuel at our terminals. To help further reduce fuel expense, we have installed and tightly manage the use of auxiliary power units in our tractors to provide climate control and electrical power for our drivers without idling the tractor engine, and also have improved the fuel usage in the temperature-control units on our trailers. For our Logistics segment,Intermodal and Brokerage segments, our profitability is impacted by the percentage of logistics revenue we pay to providers for the transportation services we arrange.arrange, which is included within purchased transportation in our consolidated condensed statements of operations.

Our operating expenses as a percentage of operating revenue, or “operating ratio,” increasedimproved to 93.1%89.3% in the first ninethree months of 20142015 from 92.0%94.6% in the first ninethree months of 2013.2014. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, increasedsurcharges, improved to 91.4%87.7% in the first three months of 2015 from 93.2% in the first three months of 2014. Our operating ratio for the first ninethree months of 2014 from 90.1% for2015, net of a gain on the first nine monthsdisposition of 2013.a facility of $3.7 million, improved to 91.6% and, net of both fuel surcharges and the facility disposition gain, improved to 90.3%. Our net income decreasedincreased by 92.7% to $20.9$10.2 million, or $0.30 per diluted share, in the first ninethree months of 20142015 from $22.8$5.3 million, or $0.16 per diluted share, in the first ninethree months of 2013.2014. The decreaseincrease in profitability in the first ninethree months of 20142015 was primarily causeddriven by the $0.06 per diluted share impact of the facility disposition gain, the increase in our average Truckload revenue per tractor, the disposal of the overhead-intensive containers that were used in a portion of our intermodal operations, an improvement in net fuel expense with the lower fuel prices, and the impact that the severe weather conditions inhad on the first quarter of 2014 on both freight volumes and operating costs, a significant reduction in the gain on disposition of revenue equipment, and costs associated with rail service interruption and delay issues that constrained our intermodal operations, partially offset by thean increase in our average truckload revenue per tractor.insurance and claims.

Our business requires substantial, ongoing capital investments, particularly for new tractors and trailers. At September 30, 2014,March 31, 2015, we had $187,000$21.7 million of cash and cash equivalents, $24.7 million of long-term debt outstanding and $379.4$398.7 million in stockholders’ equity.equity and no long-term debt outstanding. In the first ninethree months of 2014,2015, net cash flows provided by operating activities of $58.4 million, borrowings under our credit facility of $24.7 million, and cash and cash equivalents of $13.5$53.2 million were primarily used to purchase new revenue equipment, net of proceeds from dispositions, in the amount of $67.3$7.1 million, to acquire and partially construct regional operating facilities in the amountrepay $24.4 million of $24.6 million,long-term debt, and to payincrease cash dividends of $2.5and cash equivalents by $21.6 million. We estimate that capital expenditures, net of proceeds from dispositions, will be approximately $15$95 million for the remainder of 2014.2015. We believe our sources of liquidity are adequate to meet our current and anticipated needs for at least the next twelve months. Based upon anticipated cash flows, existing cash and cash equivalents balances, current borrowing availability and other sources of financing we expect to be available to us, we do not anticipate any significant liquidity constraints in the foreseeable future.

We have transformed our business strategy to a multifaceted set of transportation service solutions, primarily regional Truckload temperature-controlled operations along with intermodalDedicated, Intermodal and brokerageBrokerage services, while developing a diverse customer base that gains value from and expands each of these operating units.segments. We believe that we are well-positioned regardless of the economic environment with this transformation of our services combined with our competitive position, cost control emphasis, modern fleet and strong balance sheet.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations includes discussions of operating and logistics revenue, each net of fuel surcharge revenue and MWL revenue, truckload revenue, net of fuel surcharge revenue; Truckload, Dedicated and Intermodal revenue, net of fuel surcharge revenue; operating expenses as a percentage of operating revenue, each net of fuel surcharge revenue, the facility disposition gain, and the sum of both amounts; and net fuel expense (fuel and fuel taxes net of fuel surcharge revenue and surcharges passed through to independent contractors, outside drayage carriers and railroads). We provide these additional disclosures because management believes these measures provide a more consistent basis for comparing results of operations from period to period. These financial measures in this report have not been determined in accordance with U.S. generally accepted accounting principles (GAAP). Pursuant to Item 10(e) of Regulation S-K, we have included the amounts necessary to reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures of operating revenue, operating expenses divided by operating revenue, and fuel and fuel taxes.

Stock Split

On June 14, 2013, we effected a three-for-two stock split of our common stock, $.01 par value, in the form of a 50% stock dividend. Our consolidated condensed financial statements, related notes, and other financial data contained in this report have been adjusted to give retroactive effect to the stock split for all periods presented.

Results of Operations

The following table sets forth for the periods indicated certain operating statistics regarding our revenue and operations:

Comparison of ThreeMonths Ended September 30, 2014March 31, 2015 to Three Months Ended September 30, 2013March 31, 2014

The following table sets forth for the periods indicated our operating revenue, operating income and operating ratio by segment, along with the change for each component:

Our operating revenue increased $4.4$1.9 million, or 2.7%1.2%, to $171.6$161.3 million in the 20142015 period from $167.1$159.4 million in the 20132014 period. Our operating revenue, net of fuel surcharges, increased $5.4$13.2 million, or 4.0%10.3%, to $139.9$140.7 million in the 20142015 period from $134.5$127.5 million in the 20132014 period. This increase was primarily due to ana $9.1 million increase in truckloadDedicated revenue, net of fuel surcharges, and growtha $5.4 million increase in brokerageBrokerage revenue. Fuel surcharge revenue decreased to $31.6$20.6 million in the 2015 period from $31.9 million in the 2014 period, from $32.6 million in the 2013 period.which was primarily due to lower fuel prices.

Truckload segment revenue increased $807,000,decreased $9.1 million, or 0.6%8.2%, to $131.1$101.4 million in the 20142015 period from $130.3$110.5 million in the 20132014 period. Truckload segment revenue, net of fuel surcharges increased 2.1% primarily due to an increasewas $86.8 million in our average truckload revenue, neteach of fuel surcharges, per tractor per week of 1.3%,the 2015 and an increase in our average fleet size of 0.7% from the 2013 period.2014 periods. The increase in our average revenue per tractorprofitability in the 2015 period was primarily due to an increase in our average raterevenue per mile.The increasetractor, an improvement in profitabilityour net fuel expense with the lower fuel prices, and the impact of severe weather conditions in the 2014 period wason both freight volumes and operating costs, partially offset by an increase in insurance and claims.

Dedicated segment revenue increased $8.9 million, or 65.7%, to $22.5 million in the 2015 period from $13.6 million in the 2014 period. Dedicated segment revenue, net of fuel surcharges, increased 85.2% primarily due to an increase in our average truckloadfleet size of 85.5% driven by a significant increase in our number of Dedicated contracts with customers. The increase in the operating ratio in the 2015 period was primarily due to the addition of contracts with higher operating ratios than the average in the 2014 period.

Intermodal segment revenue per tractor.decreased $3.3 million, or 13.9%, to $20.4 million in the 2015 period from $23.7 million in the 2014 period. Intermodal segment revenue, net of fuel surcharges, decreased 7.3% due to the disposal of the dry containers that were used in a portion of our intermodal operations, partially offset by increased volume with our temperature-controlled trailer service. The increase in profitability in the 2015 period was primarily due to the volume decrease in our dry container service, which produced a higher operating ratio than our temperature-controlled trailer service, rate increases in the fourth quarter of 2014 and the first quarter of 2015, and the impact of severe weather conditions in the 2014 period on both freight volumes and operating costs.

Brokerage segment revenue increased $5.4 million, or 46.2%, to $17.0 million in the 2015 period from $11.7 million in the 2014 period, primarily due to an increase in volume. The increase in the operating ratio for our Brokerage segment in the 2015 period was primarily due to an increase in the payments to carriers for transportation services which we arranged as a percentage of our Brokerage revenue.

Logistics segment revenue increased $3.6 million, or 9.9%, to $40.5 million in the 2014 period from $36.8 million in the 2013 period. Logistics segment revenue, net of intermodal fuel surcharges, increased 10.4%. This increase was primarily the result of volume growth in our brokerage services. The increase in the operating ratio for our Logistics segment in the 2014 period was primarily due to costs associated with rail service interruption and delay issues that constrained our intermodal operations and volume growth in our dry container intermodal service, which produces a higher operating ratio than the other components of our Logistics segment.

The following table sets forth for the periods indicated the dollar and percentage increase or decrease of the items in our unaudited consolidated condensed statements of operations, and those items as a percentage of operating revenue: