Quarterly report pursuant to Section 13 or 15(d)

Business Segments and Customer Information

v3.5.0.2
Business Segments and Customer Information
 9 Months Ended
Sep. 30, 2016
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Business Segments and Customer Information
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 nine months ended September 30, 2016 and 2015 is as follows (in thousands):

 
 
Three months
 
Nine months
 
 
2016
 
2015
 
2016
 
2015
Revenues:
 
 
 
 
 
 
 
 
Supply Chain Management Group
 
$
51,152

 
$
50,315

 
$
152,080

 
$
144,429

Aviation Group
 
34,688

 
32,976

 
100,298

 
87,644

Federal Services Group
 
75,377

 
42,240

 
189,679

 
117,774

  IT, Energy and Management Consulting Group
 
11,563

 
11,865

 
34,832

 
39,466

Total revenues
 
$
172,780

 
$
137,396

 
$
476,889

 
$
389,313

 
 
 
 
 
 
 
 
 
Operating income:
 
 

 
 

 
 

 
 

Supply Chain Management Group
 
$
8,749

 
$
9,235

 
$
26,600

 
$
26,222

Aviation Group
 
3,950

 
2,116

 
9,896

 
6,833

Federal Services Group
 
666

 
1,152

 
2,383

 
529

  IT, Energy and Management Consulting Group
 
984

 
1,169

 
2,658

 
3,872

Corporate/unallocated expenses
 
(726
)
 
(429
)
 
(3,294
)
 
(2,033
)
Operating income
 
$
13,623

 
$
13,243

 
$
38,243

 
$
35,423




Customer Information

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

 
 
Three months ended September 30,
 
Nine months ended September 30,
Customer
 
2016
 
%
 
2015
 
%
 
2016
 
%
 
2015
 
%
U.S. Postal Service
 
$
44,433

 
25.7
%
 
$
47,356

 
34.5
%
 
$
135,025

 
28.3
%
 
$
136,875

 
35.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Navy
 
43,424

 
25.1
%
 
24,036

 
17.5
%
 
109,884

 
23.0
%
 
68,040

 
17.5
%
U.S. Army
 
40,155

 
23.3
%
 
20,476

 
14.9
%
 
96,656

 
20.3
%
 
58,204

 
15.0
%
U.S. Air Force
 
757

 
0.4
%
 
869

 
0.6
%
 
2,614

 
0.5
%
 
2,583

 
0.6
%
Total - DoD
 
84,336

 
48.8
%
 
45,381

 
33.0
%
 
209,154

 
43.8
%
 
128,827

 
33.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial aviation
 
32,489

 
18.8
%
 
32,976

 
24.0
%
 
98,099

 
20.6
%
 
87,644

 
22.5
%
Other commercial
 
2,720

 
1.6
%
 
1,587

 
1.2
%
 
7,807

 
1.6
%
 
4,554

 
1.2
%
Total - Commercial
 
35,209

 
20.4
%
 
34,563

 
25.2
%
 
105,906

 
22.2
%
 
92,198

 
23.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Department of Energy
 
2,981

 
1.7
%
 
2,817

 
2.0
%
 
8,890

 
1.9
%
 
11,923

 
3.1
%
Social Security Administration
 
2,376

 
1.4
%
 
2,431

 
1.7
%
 
7,426

 
1.6
%
 
7,152

 
1.8
%
Other government
 
3,445

 
2.0
%
 
4,848

 
3.6
%
 
10,488

 
2.2
%
 
12,338

 
3.2
%
Total – Other Civilian Agencies
 
8,802

 
5.1
%
 
10,096

 
7.3
%
 
26,804

 
5.7
%
 
31,413

 
8.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
172,780

 
100
%
 
$
137,396

 
100
%
 
$
476,889

 
100
%
 
$
389,313

 
100
%