Quarterly report pursuant to Section 13 or 15(d)

Business Segments and Customer Information

v3.5.0.2
Business Segments and Customer Information
6 Months Ended
Jun. 30, 2016
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”) and direct sales to the United States Postal Service (“USPS”) and to other customers.

Aviation Group - Our Aviation Group provides MRO services, parts supply and distribution, and supply chain solutions for general aviation 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 the United States Department of Defense (“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 the IT, Energy and Management Consulting Group reportable segment 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 and six months ended June 30, 2016 and 2015 is as follows (in thousands):

   
Three months
   
Six months
 
   
2016
   
2015
   
2016
   
2015
 
Revenues:
                       
  Supply Chain Management Group
 
$
49,785
   
$
47,872
   
$
100,928
   
$
94,114
 
  Aviation Group
   
32,064
     
31,904
     
65,610
     
54,668
 
  Federal Services Group
   
66,587
     
37,742
     
114,302
     
75,534
 
  IT, Energy and Management Consulting Group
   
12,037
     
13,608
     
23,269
     
27,601
 
    Total revenues
 
$
160,473
   
$
131,126
   
$
304,109
   
$
251,917
 
                                 
Operating income:
                               
  Supply Chain Management Group
 
$
8,823
   
$
8,681
   
$
17,851
   
$
16,987
 
  Aviation Group
   
2,657
     
2,604
     
5,946
     
4,717
 
  Federal Services Group
   
1,046
     
(356
)
   
1,717
     
(623
)
  IT, Energy and Management Consulting Group
   
786
     
1,488
     
1,674
     
2,703
 
  Corporate/unallocated expenses
   
(1,433
)
   
(921
)
   
(2,568
)
   
(1,604
)
   Operating income
 
$
11,879
   
$
11,496
   
$
24,620
   
$
22,180
 

 
Customer Information

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

   
Three months ended June 30,
   
Six months ended June 30,
 
   
2016
   
%
   
2015
   
%
   
2016
   
%
   
2015
   
%
 
Customer
                                               
U.S. Postal Service
 
$
44,295
     
27.6
   
$
45,339
     
34.5
   
$
90,592
     
29.8
   
$
89,519
     
35.5
 
                                                                 
U.S. Navy
   
36,569
     
22.8
     
22,607
     
17.2
     
66,460
     
21.9
     
44,004
     
17.4
 
U.S. Army
   
34,291
     
21.4
     
18,557
     
14.2
     
56,501
     
18.5
     
37,728
     
15.0
 
U.S. Air Force
   
876
     
0.5
     
924
     
0.7
     
1,857
     
0.6
     
1,714
     
0.7
 
Total - DoD
   
71,736
     
44.7
     
42,088
     
32.1
     
124,818
     
41.0
     
83,446
     
33.1
 
                                                                 
Commercial aviation
   
32,064
     
20.0
     
31,904
     
24.3
     
65,610
     
21.6
     
54,668
     
21.7
 
Other commercial
   
2,804
     
1.7
     
1,760
     
1.4
     
5,087
     
1.7
     
2,967
     
1.2
 
Total - Commercial
   
34,868
     
21.7
     
33,664
     
25.7
     
70,697
     
23.3
     
57,635
     
22.9
 
                                                                 
Department of Energy
   
3,006
     
1.9
     
4,662
     
3.6
     
5,909
     
1.9
     
9,106
     
3.6
 
Social Security Administration
   
2,463
     
1.5
     
2,271
     
1.7
     
5,050
     
1.7
     
4,721
     
1.9
 
Other government
   
4,105
     
2.6
     
3,102
     
2.4
     
7,043
     
2.3
     
7,490
     
3.0
 
Total – Other Civilian Agencies
   
9,574
     
6.0
     
10,035
     
7.7
     
18,002
     
5.9
     
21,317
     
8.5
 
                                                                 
Total
 
$
160,473
     
100
   
$
131,126
     
100
   
$
304,109
     
100
   
$
251,917
     
100