Quarterly report pursuant to Section 13 or 15(d)

Business Segments and Customer Information

v3.19.2
Business Segments and Customer Information
 6 Months Ended
Jun. 30, 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 June 30,
 
Six months ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Revenues:
 
 
 
 
 
 
 
 
Supply Chain Management Group
 
$
53,805

 
$
54,263

 
$
105,509

 
$
110,127

Aviation Group
 
54,997

 
35,804

 
104,367

 
68,554

Federal Services Group
 
80,309

 
80,327

 
149,154

 
168,610

Total revenues
 
$
189,111

 
$
170,394

 
$
359,030

 
$
347,291

 
 
 
 
 
 
 
 
 
Operating income:
 
 

 
 

 
 

 
 

Supply Chain Management Group
 
$
7,557

 
$
8,168

 
$
14,545

 
$
15,764

Aviation Group
 
5,204

 
2,846

 
8,252

 
5,107

Federal Services Group
 
5,059

 
3,606

 
8,444

 
6,084

Corporate/unallocated expenses
 
(1,404
)
 
(765
)
 
(3,012
)
 
(1,507
)
Operating income
 
$
16,416

 
$
13,855

 
$
28,229

 
$
25,448



Customer Information

Our revenues by customer is as follows (dollars in thousands):
 
 
Three months ended June 30,
 
Six months ended June 30,
Customer
 
2019
 
%
 
2018
 
%
 
2019
 
%
 
2018
 
%
USPS
 
$
42,112

 
22.3
%
 
$
43,089

 
25.3
%
 
$
84,795

 
23.6
%
 
$
87,120

 
25.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Navy
 
22,202

 
11.8
%
 
35,696

 
20.9
%
 
42,807

 
11.9
%
 
78,281

 
22.5
%
U.S. Army
 
47,333

 
25.0
%
 
41,548

 
24.4
%
 
84,052

 
23.4
%
 
84,335

 
24.3
%
U.S. Air Force
 
5,545

 
2.9
%
 
4,943

 
2.9
%
 
10,922

 
3.1
%
 
7,224

 
2.1
%
Total - DoD
 
75,080

 
39.7
%
 
82,187

 
48.2
%
 
137,781

 
38.4
%
 
169,840

 
48.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial aviation
 
54,086

 
28.6
%
 
34,037

 
20.0
%
 
102,561

 
28.6
%
 
65,572

 
18.9
%
Other commercial
 
5,090

 
2.7
%
 
3,444

 
2.0
%
 
10,174

 
2.8
%
 
7,032

 
2.0
%
Total - Commercial
 
59,176

 
31.3
%
 
37,481

 
22.0
%
 
112,735

 
31.4
%
 
72,604

 
20.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other government
 
12,743

 
6.7
%
 
7,637

 
4.5
%
 
23,719

 
6.6
%
 
17,727

 
5.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
189,111

 
100
%
 
$
170,394

 
100
%
 
$
359,030

 
100
%
 
$
347,291

 
100
%