Quarterly report pursuant to Section 13 or 15(d)

Business Segments and Customer Information

v3.19.3
Business Segments and Customer Information
 9 Months Ended
Sep. 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 September 30,
 
Nine months ended September 30,
 
 
2019
 
2018
 
2019
 
2018
Revenues:
 
 
 
 
 
 
 
 
Supply Chain Management Group
 
$
55,369

 
$
51,834

 
$
160,878

 
$
161,961

Aviation Group
 
59,186

 
34,000

 
163,553

 
102,554

Federal Services Group
 
83,771

 
83,097

 
232,925

 
251,707

Total revenues
 
$
198,326

 
$
168,931

 
$
557,356

 
$
516,222

 
 
 
 
 
 
 
 
 
Operating income:
 
 

 
 

 
 

 
 

Supply Chain Management Group
 
$
7,843

 
$
7,783

 
$
22,388

 
$
23,547

Aviation Group
 
6,568

 
2,184

 
14,820

 
7,291

Federal Services Group
 
4,524

 
6,186

 
12,968

 
12,270

Corporate/unallocated expenses
 
(1,720
)
 
(456
)
 
(4,732
)
 
(1,963
)
Operating income
 
$
17,215

 
$
15,697

 
$
45,444

 
$
41,145



Customer Information

Our revenues by customer is as follows (dollars in thousands):
 
 
Three months ended September 30,
 
Nine months ended September 30,
Customer
 
2019
 
%
 
2018
 
%
 
2019
 
%
 
2018
 
%
USPS
 
$
42,282

 
21.3
%
 
$
43,031

 
25.5
%
 
$
127,077

 
22.8
%
 
$
130,151

 
25.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Navy
 
30,123

 
15.2
%
 
37,013

 
21.9
%
 
72,930

 
13.1
%
 
115,294

 
22.4
%
U.S. Army
 
48,529

 
24.5
%
 
38,167

 
22.6
%
 
132,581

 
23.8
%
 
122,502

 
23.7
%
U.S. Air Force
 
6,401

 
3.2
%
 
4,822

 
2.9
%
 
17,323

 
3.1
%
 
12,046

 
2.3
%
Total - DoD
 
85,053

 
42.9
%
 
80,002

 
47.4
%
 
222,834

 
40.0
%
 
249,842

 
48.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial aviation
 
56,839

 
28.7
%
 
32,641

 
19.3
%
 
159,400

 
28.6
%
 
98,213

 
19.0
%
Other commercial
 
6,015

 
3.0
%
 
3,386

 
2.0
%
 
16,189

 
2.9
%
 
10,418

 
2.0
%
Total - Commercial
 
62,854

 
31.7
%
 
36,027

 
21.3
%
 
175,589

 
31.5
%
 
108,631

 
21.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other government
 
8,137

 
4.1
%
 
9,871

 
5.8
%
 
31,856

 
5.7
%
 
27,598

 
5.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
198,326

 
100
%
 
$
168,931

 
100
%
 
$
557,356

 
100
%
 
$
516,222

 
100
%