Quarterly report pursuant to Section 13 or 15(d)

Business Segments and Customer Information

v3.19.1
Business Segments and Customer Information
 3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Business Segments and Customer Information
Business Segments and Customer Information

Business Segments

Management of our business operations is conducted under three reportable operating segments:

Supply Chain Management Group – Our Supply Chain Management Group supplies vehicle parts primarily through a Managed Inventory Program ("MIP") and direct sales to the United States Postal Service ("USPS"), the United States Department of Defense ("DoD") and to commercial customers.

Aviation Group – Our Aviation Group provides maintenance, repair and overhaul ("MRO") services, parts supply and distribution, and supply chain solutions for commercial aerospace and business and general aviation jet aircraft engines and engine accessories.

Federal Services Group – Our Federal Services Group provides engineering, industrial, logistics, foreign military sales, legacy equipment sustainment services, IT and technical and consulting services primarily to DoD and other government agencies.

The operating segments reported below are the segments of the Company for which separate financial information is available and for which segment results are evaluated regularly by our Chief Executive Officer in deciding how to allocate resources and in assessing performance. We evaluate segment performance based on consolidated revenues and operating income. Net sales of our business segments exclude intersegment sales as these activities are eliminated in consolidation. Our segment information is as follows (in thousands):
 
 
Three months ended March 31,
 
 
2019
 
2018
Revenues:
 
 
 
 
Supply Chain Management Group
 
$
51,704

 
$
55,864

Aviation Group
 
49,370

 
32,750

Federal Services Group
 
68,845

 
88,283

Total revenues
 
$
169,919

 
$
176,897

 
 
 
 
 
Operating income:
 
 

 
 

Supply Chain Management Group
 
$
6,988

 
$
7,596

Aviation Group
 
3,048

 
2,261

Federal Services Group
 
3,385

 
2,478

Corporate/unallocated expenses
 
(1,608
)
 
(742
)
Operating income
 
$
11,813

 
$
11,593



Customer Information

Our revenues by customer is as follows (dollars in thousands):
 
 
Three months ended March 31,
Customer
 
2019
 
%
 
2018
 
%
USPS
 
$
42,683

 
25.1
%
 
$
44,031

 
24.9
%
 
 
 
 
 
 
 
 
 
U.S. Navy
 
20,605

 
12.1
%
 
42,585

 
24.1
%
U.S. Army
 
36,719

 
21.6
%
 
42,787

 
24.2
%
U.S. Air Force
 
5,377

 
3.2
%
 
2,281

 
1.3
%
Total - DoD
 
62,701

 
36.9
%
 
87,653

 
49.6
%
 
 
 
 
 
 
 
 
 
Commercial aviation
 
48,475

 
28.5
%
 
31,535

 
17.8
%
Other commercial
 
5,084

 
3.0
%
 
3,588

 
2.0
%
Total - Commercial
 
53,559

 
31.5
%
 
35,123

 
19.8
%
 
 
 
 
 
 
 
 
 
Other government
 
10,976

 
6.5
%
 
10,090

 
5.7
%
 
 
 
 
 
 
 
 
 
Total
 
$
169,919

 
100
%
 
$
176,897

 
100
%