Quarterly report pursuant to Section 13 or 15(d)

Business Segments and Customer Information

v2.4.0.8
Business Segments and Customer Information
 6 Months Ended
Jun. 30, 2013
Business Segments and Customer Information [Abstract]  
Business Segments and Customer Information
(6) Business Segments and Customer Information

Business Segments

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

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.

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.

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. Net sales of our business segments exclude intersegment sales as these activities are eliminated in consolidation.
 
As of the second quarter of 2013, the sale of vehicle parts to DoD is included in our Federal Group operating results instead of our Supply Chain Management Group. Accordingly, we have reclassified our prior period operating results to conform to the current year presentation.

Our segment information for the three- and six-months ended June 30, 2013 and 2012 is as follows (in thousands):

 
 
Three months
 
 
Six months
 
 
 
2013
 
 
2012
 
 
2013
 
 
2012
 
Revenues:
 
 
 
 
 
 
 
 
  Supply Chain Management Group
 
$
34,957
 
 
$
33,701
 
 
$
69,722
 
 
$
68,533
 
  Federal Group
 
 
28,751
 
 
 
35,670
 
 
 
59,260
 
 
 
69,323
 
  International Group
 
 
36,239
 
 
 
42,281
 
 
 
71,629
 
 
 
88,045
 
  IT, Energy and Management Consulting Group
 
 
19,115
 
 
 
24,019
 
 
 
37,608
 
 
 
49,757
 
    Total revenues
 
$
119,062
 
 
$
135,671
 
 
$
238,219
 
 
$
275,658
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Supply Chain Management Group
 
$
6,993
 
 
$
5,357
 
 
$
13,005
 
 
$
11,761
 
  Federal Group
 
 
2,491
 
 
 
2,907
 
 
 
3,765
 
 
 
4,669
 
  International Group
 
 
1,473
 
 
 
1,319
 
 
 
3,166
 
 
 
2,835
 
  IT, Energy and Management Consulting Group
 
 
2,492
 
 
 
2,867
 
 
 
3,731
 
 
 
5,948
 
  Corporate/unallocated expenses
 
 
(748
)
 
 
102
 
 
 
(1,024
)
 
 
(168
)
   Operating income
 
$
12,701
 
 
$
12,552
 
 
$
22,643
 
 
$
25,045
 


 
Customer Information

Our revenue by customer is as follows (in thousands):

 
 
Three months
 
 
Six months
 
 
 
ended June 30,
 
 
ended June 30,
 
 
 
2013
 
 
2012
 
 
2013
 
 
2012
 
Source of Revenues
 
 
 
 
 
 
 
 
Army/Army Reserve
 
$
28,161
 
 
$
39,574
 
 
$
59,754
 
 
$
84,807
 
U.S. Navy
 
 
27,745
 
 
 
33,087
 
 
 
53,149
 
 
 
63,040
 
U.S. Air Force
 
 
3,228
 
 
 
3,682
 
 
 
6,407
 
 
 
7,290
 
Total - DoD
 
 
59,134
 
 
 
76,343
 
 
 
119,310
 
 
 
155,137
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Postal Service
 
 
34,446
 
 
 
33,317
 
 
 
68,828
 
 
 
67,624
 
Department of Treasury
 
 
9,302
 
 
 
7,517
 
 
 
18,811
 
 
 
16,143
 
Department of Interior
 
 
2,809
 
 
 
4,514
 
 
 
5,544
 
 
 
9,205
 
Department of Energy
 
 
5,214
 
 
 
5,312
 
 
 
10,106
 
 
 
10,552
 
Other government
 
 
7,577
 
 
 
7,921
 
 
 
14,466
 
 
 
15,393
 
Total – Federal civilian agencies
 
 
59,348
 
 
 
58,581
 
 
 
117,755
 
 
 
118,917
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
580
 
 
 
747
 
 
 
1,154
 
 
 
1,604
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
119,062
 
 
$
135,671
 
 
$
238,219
 
 
$
275,658