Quarterly report pursuant to Section 13 or 15(d)

Business Segments and Customer Information

v3.7.0.1
Business Segments and Customer Information
 3 Months Ended
Mar. 31, 2017
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Business Segments and Customer Information
Business Segments and Customer Information

Business Segments

Beginning in 2017, we changed our structure and as a result our former IT, Energy and Management Consulting Group is now combined with our Federal Services Group. Consequently, our segment financial information for 2016 has been restated to reflect such change. Management of our business operations is conducted under three 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 maintenance, repair and overhaul ("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, legacy equipment sustainment services, and technical and consulting services to the United States Department of Defense ("DoD") and other government agencies.

The operating segments reported below are the segments of the Company for which separate financial information is available and for which segment results are evaluated regularly by the Chief Executive Officer in deciding how to allocate resources and in assessing performance. 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, 2017 and 2016 is as follows (in thousands):

 
 
Three months
 
 
2017
 
2016
Revenues:
 
 
 
 
Supply Chain Management Group
 
$
56,085

 
$
51,143

Aviation Group
 
32,354

 
33,546

Federal Services Group
 
108,855

 
58,947

Total revenues
 
$
197,294

 
$
143,636

 
 
 
 
 
Operating income:
 
 

 
 

Supply Chain Management Group
 
$
8,483

 
$
9,028

Aviation Group
 
2,336

 
3,289

Federal Services Group
 
3,918

 
1,277

Corporate/unallocated expenses
 
(541
)
 
(853
)
Operating income
 
$
14,196

 
$
12,741



Customer Information

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

 
 
Three months ended March 31,
Customer
 
2017
 
%
 
2016
 
%
U.S. Postal Service
 
$
46,469

 
23.6
%
 
$
46,297

 
32.2
%
 
 
 
 
 
 
 
 
 
U.S. Navy
 
52,496

 
26.6
%
 
29,891

 
20.8
%
U.S. Army
 
54,101

 
27.4
%
 
22,210

 
15.5
%
U.S. Air Force
 
1,018

 
0.5
%
 
981

 
0.7
%
Total - DoD
 
107,615

 
54.5
%
 
53,082

 
37.0
%
 
 
 
 
 
 
 
 
 
Commercial aviation
 
31,804

 
16.1
%
 
33,546

 
23.3
%
Other commercial
 
3,129

 
1.6
%
 
2,283

 
1.6
%
Total - Commercial
 
34,933

 
17.7
%
 
35,829

 
24.9
%
 
 
 
 
 
 
 
 
 
Department of Energy
 
2,903

 
1.5
%
 
2,903

 
2.0
%
Social Security Administration
 
2,181

 
1.1
%
 
2,587

 
1.8
%
Other government
 
3,193

 
1.6
%
 
2,938

 
2.1
%
Total – Other Civilian Agencies
 
8,277

 
4.2
%
 
8,428

 
5.9
%
 
 
 
 
 
 
 
 
 
Total
 
$
197,294

 
100
%
 
$
143,636

 
100
%