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, 2011
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 five reportable operating segments: the Federal Group, the International Group, the IT, Energy and Management Consulting Group, the Infrastructure 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. The Federal Group consists of four divisions: CED, ELD, FSS and SED.  

International Group - Our International Group provides engineering, industrial, logistics and foreign military sales services to the U.S. military and other government agencies. It consists of two divisions: GLOBAL and FMD.
 
IT, Energy and Management Consulting Group – Our IT, Energy and Management Consulting Group provides technical and consulting services primarily to various civilian government agencies. This group consists of Energetics, G&B and Akimeka.

Infrastructure Group – Our Infrastructure Group is engaged principally in providing diversified technical and management services to the government, including transportation infrastructure services, construction management services and aerospace services.  This group consists of ICRC.

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,
                    
   
2011
    
2010
    
2009
    
Revenues
                    
  Federal Group
   $ 184,147     $ 454,660     $ 585,951  
  International Group
     206,746       261,499       314,134  
  IT, Energy and Management Consulting Group
    106,817       94,796       74,117  
  Infrastructure Group
     37,830       55,081       40,437  
  Supply Chain Group
     83,052       -       -  
    Total revenues
   $ 618,592     $ 866,036     $ 1,014,639  
                           
Income before income taxes:
                          
  Federal Group
   $ 6,099     $ 20,574     $ 21,311  
  International Group
     5,342       9,376       9,569  
  IT, Energy and Management Consulting Group
    12,440       10,275       7,402  
  Infrastructure Group
     580       292       990  
  Supply Chain
     15,965       -       -  
  Corporate
     (7,454 )     (2,484 )     (673 )
    Income before income taxes
   $ 32,972     $ 38,033     $ 38,599  
                           
Interest (income) expense
                          
  Federal Group
   $ (75 )   $ (31 )   $ (89 )
  International Group
     (21 )     197       436  
  IT, Energy and Management Consulting Group
    (73 )     (49 )     (35 )
  Infrastructure Group
     23       (19 )     (14 )
  Supply Chain
     350       -       -  
  Corporate
     3,504       82       (418 )
    Total interest (income) expense
   $ 3,708     $ 180     $ (120 )
                           
Depreciation and amortization expense:
                          
  Federal Group
   $ 2,906     $ 4,115     $ 4,008  
  International Group
     1,903       1,521       1,211  
  IT, Energy and Management Consulting Group
    3,256       1,953       1,168  
  Infrastructure Group
     1,433       1,348       1,235  
  Supply Chain Group
     5,402       -       -  
    Total depreciation and
      amortization
   $ 14,900     $ 8,937     $ 7,622  
                           
Capital expenditures:
                          
  Federal Group
   $ 547     $ 496     $ 2,894  
  International Group
     573       816       423  
  IT, Energy and Management Consulting Group
    236       305       268  
  Infrastructure Group
     170       161       162  
  Supply Chain Group
     113       -       -  
  Corporate
     4,996       3,027       5,028  
    Total capital expenditures
   $ 6,635     $ 4,805     $ 8,775  
                           
 
 
   
December 31,
  
   
2011
    
2010
  
Total assets:
            
  Federal Group
   $ 29,653     $ 67,452  
  International Group
     49,734       62,062  
  IT, Energy and Management Consulting Group
    70,108       24,658  
  Infrastructure Group
     27,372       21,239  
  Supply Chain Group
     203,241          
  Corporate
     74,404       113,015  
    Total assets
   $ 454,512     $ 288,426  

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, construction management 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
  
2011
    
%
    
2010
    
%
    
2009
    
%
  
U.S. Army/Army Reserve
   $ 235,055       38.0     $ 463,305       53.5     $ 555,238       54.7  
U.S. Navy
     140,575       22.7       198,833       23.0       271,189       26.7  
U.S. Air Force
     11,971       1.9       13,303       1.5       13,839       1.4  
Total - DoD
     387,601       62.6       675,441       78.0       840,266       82.8  
                                                 
U. S. Postal Service
     75,964       12.3       -       -       -       -  
Department of  U.S. Treasury
     41,434       6.7       49,332       5.7       47,676       4.7  
Department of Transportation
     25,386       4.1       51,497       6.0       35,722       3.5  
Department of Interior
     24,254       3.9       29,810       3.4       29,275       2.9  
Department of Energy
     23,005       3.7       21,890       2.5       16,111       1.6  
Other government
     32,524       5.3       33,055       3.8       42,670       4.2  
Total – Federal Civil Agencies
    222,567       36.0       185,584       21.4       171,454       16.9  
                                                 
Commercial
     8,424       1.4       5,011       0.6       2,919       0.3  
                                                 
Total
   $ 618,592       100.0     $ 866,036       100.0     $ 1,014,639       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.