Annual report pursuant to Section 13 and 15(d)

Business Segments and Customer Information

v2.4.0.6
Business Segments and Customer Information
 12 Months Ended
Dec. 31, 2012
Business Segments and Customer Information [Abstract]  
Business Segments and Customer Information
 
(12)  Business Segments and Customer Information

Segment Information

Management of our business operations is conducted under four reportable operating segments: the Federal Group, the International Group, the IT, Energy and Management Consulting Group and the Supply Chain Management Group. These segments operate under separate management teams and financial information is produced for each segment.  The entities within each of the Federal Group, International Group, and IT, Energy and Management Consulting Group reportable segments meet the aggregation of operating segments criteria as defined by the accounting standard for segment reporting.  We evaluate segment performance based on consolidated revenues and profits or losses from operations before income taxes.

Federal Group - Our Federal Group provides legacy equipment sustainment, engineering, technical, management, integrated logistics support and information technology services to DoD and other government agencies.

International Group - Our International Group provides engineering, industrial, logistics and foreign military sales services to the U.S. military and other government agencies.

IT, Energy and Management Consulting Group – Our IT, Energy and Management Consulting Group provides technical and consulting services primarily to various civilian government agencies.

Supply Chain Management Group – Our Supply Chain Management Group supplies vehicle parts primarily through a Managed Inventory Program ("MIP") to USPS and direct sales to other clients, including DoD.
Our segment information is as follows (in thousands):

For the years ended December 31,
                  
 
  
2012
    
2011
    
2010
  
Revenues
                  
  Federal Group
  
$
140,424
    
$
184,147
    
$
454,660
  
  International Group
    
167,193
      
206,746
      
261,499
  
  IT, Energy and Management Consulting Group
    
94,225
      
106,817
      
94,796
  
  Supply Chain Group
    
144,913
      
83,052
      
-
  
    Total revenues
  
$
546,755
    
$
580,762
    
$
810,955
  
 
                        
Income before income taxes:
                        
  Federal Group
  
$
10,130
    
$
6,099
    
$
20,574
  
  International Group
    
5,604
      
5,342
      
9,376
  
  IT, Energy and Management Consulting Group
    
11,802
      
12,440
      
10,275
  
  Supply Chain
    
23,282
      
15,965
      
-
  
  Corporate
    
(6,966
)
    
(7,454
)
    
(2,484
)
    Income before income taxes
  
$
43,852
    
$
32,392
    
$
37,741
  
 
                        
Interest expense (income)
                        
  Federal Group
  
$
291
    
$
(75
)
  
$
(31
)
  International Group
    
448
      
(21
)
    
197
  
  IT, Energy and Management Consulting Group
    
14
      
(73
)
    
(49
)
  Supply Chain
    
729
      
350
      
-
  
  Corporate
    
5,742
      
3,504
      
82
  
    Total interest expense
  
$
7,224
    
$
3,685
    
$
199
  
 
                        
Depreciation and amortization expense:
                        
  Federal Group
  
$
3,093
    
$
2,906
    
$
4,115
  
  International Group
    
3,035
      
1,903
      
1,521
  
  IT, Energy and Management Consulting Group
    
3,753
      
3,256
      
1,953
  
  Supply Chain Group
    
9,914
      
5,402
      
-
  
    Total depreciation and amortization
  
$
19,795
    
$
13,467
    
$
7,589
  
 
                        
Capital expenditures:
                        
  Federal Group
  
$
763
    
$
547
    
$
496
  
  International Group
    
83
      
573
      
816
  
  IT, Energy and Management Consulting Group
    
53
      
236
      
305
  
  Supply Chain Group
    
341
      
113
      
-
  
  Corporate
    
19,623
      
5,166
      
3,188
  
    Total capital expenditures
  
$
20,863
    
$
6,635
    
$
4,805
  

 
 
  
December 31,
  
 
  
2012
    
2011
  
Total assets:
            
  Federal Group
  
$
30,130
    
$
29,653
  
  International Group
    
31,485
      
49,734
  
  IT, Energy and Management Consulting Group
    
64,502
      
70,108
  
  Infrastructure Group
    
-
      
27,372
  
  Supply Chain Group
    
193,214
      
203,241
  
  Corporate
    
90,880
      
74,404
  
    Total assets
  
$
410,211
    
$
454,512
  

Revenues are net of inter-segment eliminations.  Corporate/unallocated expenses are primarily selling, general and administrative expenses not allocated to segments.  Corporate assets are primarily cash and property and equipment.
 
Customer Information

We are engaged principally in providing diversified logistics, engineering, IT and consulting services to the government, other government prime contractors, and commercial entities. The largest customer for our services is DoD, including agencies of the U.S. Army, Navy, and Air Force. Our revenue by customer is as follows for the years ended December 31, (in thousands):

Revenues by Customer
  
(dollars in thousands)
  
Years ended December 31,
  
Customer
  
2012
    
%
    
2011
    
%
    
2010
    
%
  
U.S. Army/Army Reserve
  
$
182,412
      
33.4
    
$
231,615
      
39.9
    
$
463,378
      
57.1
  
U.S. Navy
    
120,867
      
22.1
      
140,551
      
24.2
      
198,833
      
24.5
  
U.S. Air Force
    
6,963
      
1.3
      
11,971
      
2.0
      
13,304
      
1.7
  
Total - DoD
    
310,242
      
56.8
      
384,137
      
66.1
      
675,515
      
83.3
  
 
                                                
USPS
    
130,866
      
23.9
      
75,964
      
13.1
      
-
      
-
  
Department of Treasury
    
33,369
      
6.1
      
41,434
      
7.1
      
49,332
      
6.1
  
Department of Interior
    
16,884
      
3.1
      
24,254
      
4.2
      
29,810
      
3.7
  
Department of Energy
    
20,898
      
3.8
      
23,010
      
4.0
      
21,717
      
2.7
  
Other government
    
32,231
      
5.9
      
28,160
      
4.8
      
29,598
      
3.6
  
Total – Federal civilian agencies
    
234,248
      
42.8
      
192,822
      
33.2
      
130,457
      
16.1
  
 
                                                
Commercial
    
2,265
      
0.4
      
3,803
      
0.7
      
4,983
      
0.6
  
 
                                                
Total
  
$
546,755
      
100.0
    
$
580,762
      
100.0
    
$
810,955
      
100.0
  

We do not measure revenue or profit by product or service lines, either for internal management or external financial reporting purposes, because it would be impractical to do so. Products offered and services performed are determined by contract requirements and the types of products and services provided for one contract bear no relation to similar products and services provided on another contract. Products and services provided vary when new contracts begin or current contracts expire. In many cases, more than one product or service is provided under a contract or contract task order. Accordingly, cost and revenue tracking is designed to best serve contract requirements and segregating costs and revenues by product or service lines in situations for which it is not required would be difficult and costly to both us and our customers.