Quarterly report pursuant to Section 13 or 15(d)

Business Segments and Customer Information

v2.4.1.9
Business Segments and Customer Information
3 Months Ended
Mar. 31, 2015
Business Segments and Customer Information [Abstract]  
Business Segments and Customer Information
(6) Business Segments and Customer Information

Business Segments

Beginning in 2015, we have consolidated our former International and Federal Groups into a single operating group and named it our Federal Services Group. Management of our business operations is conducted under four reportable operating segments:

Supply Chain Management GroupOur Supply Chain Management Group supplies vehicle parts primarily through a Managed Inventory Program ("MIP") and direct sales to USPS and to other clients.

Aviation Group - Our Aviation Group, formed in January 2015 when we acquired our aviation businesses, provides MRO services, parts supply and distribution, and supply chain solutions for business aviation and regional jet aircraft engines and engine accessories.

Federal Services Group - Our Federal Services Group provides engineering, industrial, logistics, foreign military sales, and legacy equipment sustainment services to DoD 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 DoD and 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 Services 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 operating income. Net sales of our business segments exclude intersegment sales as these activities are eliminated in consolidation.

Our segment information for the three months ended March 31, 2015 and 2014 is as follows (in thousands):

   
Three Months
 
   
ended March 31,
 
   
2015
   
2014
 
Revenues:
       
  Supply Chain Management Group
 
$
46,242
   
$
40,623
 
  Aviation Group
   
22,764
     
-
 
  Federal Services Group
   
37,792
     
63,270
 
  IT, Energy and Management Consulting Group
   
13,993
     
15,516
 
    Total revenues
 
$
120,791
   
$
119,409
 
                 
Operating income:
               
  Supply Chain Management Group
 
$
8,306
   
$
7,821
 
  Aviation Group
   
2,113
     
-
 
  Federal Services Group
   
(267
)
   
2,718
 
  IT, Energy and Management Consulting Group
   
1,215
     
1,453
 
  Corporate/unallocated expenses
   
(683
)
   
(635
)
   Operating income
 
$
10,684
   
$
11,357
 
   
March 31,
   
December 31,
 
   
2015
   
2014
 
Total assets:
       
  Supply Chain Management Group
 
$
216,098
   
$
192,720
 
  Aviation Group
   
277,844
     
-
 
  Federal Services Group
   
38,050
     
36,225
 
  IT, Energy and Management Consulting Group
   
24,722
     
49,790
 
  Corporate/unallocated expenses
   
86,756
     
76,595
 
   Total assets
 
$
643,470
   
$
355,330
 

Customer Information

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

   
Three Months
 
   
ended March 31,
 
   
2015
   
%
   
2014
   
%
 
Source of Revenues
               
                 
U.S. Navy
 
$
21,397
     
17.7
   
$
24,614
     
20.6
 
Army/Army Reserve
   
19,171
     
15.9
     
33,698
     
28.2
 
U.S. Air Force
   
790
     
0.7
     
796
     
0.7
 
Total - DoD
   
41,358
     
34.3
     
59,108
     
49.5
 
                                 
U.S. Postal Service
   
44,180
     
36.6
     
39,329
     
32.9
 
Department of Energy
   
4,444
     
3.7
     
4,626
     
3.9
 
Department of Treasury
   
415
     
0.3
     
8,358
     
7.0
 
Other government
   
6,423
     
5.3
     
7,179
     
6.0
 
Total – Federal civilian agencies
   
55,462
     
45.9
     
59,492
     
49.8
 
                                 
Commercial
   
23,971
     
19.8
     
809
     
0.7
 
                                 
Total
 
$
120,791
     
100.0
   
$
119,409
     
100.0