Quarterly report pursuant to Section 13 or 15(d)

Business Segments and Customer Information

v3.8.0.1
Business Segments and Customer Information
 9 Months Ended
Sep. 30, 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, IT and technical and consulting services primarily 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 our 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 and nine months ended September 30, 2017 and 2016 is as follows (in thousands):

 
 
Three months
 
Nine months
 
 
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
 
Supply Chain Management Group
 
$
51,174

 
$
51,152

 
$
163,663

 
$
152,080

Aviation Group
 
31,059

 
34,688

 
96,003

 
100,298

Federal Services Group
 
91,931

 
86,940

 
305,652

 
224,511

Total revenues
 
$
174,164

 
$
172,780

 
$
565,318

 
$
476,889

 
 
 
 
 
 
 
 
 
Operating income:
 
 

 
 

 
 

 
 

Supply Chain Management Group
 
$
8,178

 
$
8,749

 
$
25,611

 
$
26,600

Aviation Group
 
1,983

 
3,950

 
6,898

 
9,896

Federal Services Group
 
2,593

 
1,650

 
10,503

 
5,041

Corporate/unallocated expenses
 
(517
)
 
(726
)
 
(1,574
)
 
(3,294
)
Operating income
 
$
12,237

 
$
13,623

 
$
41,438

 
$
38,243



Customer Information

Our revenue by customer is as follows (dollars in thousands):
 
 
Three months ended September 30,
 
Nine months ended September 30,
Customer
 
2017
 
%
 
2016
 
%
 
2017
 
%
 
2016
 
%
U.S. Postal Service
 
$
43,833

 
25.2
%
 
$
44,433

 
25.7
%
 
$
136,261

 
24.1
%
 
$
135,025

 
28.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Navy
 
38,895

 
22.3
%
 
43,424

 
25.1
%
 
143,421

 
25.4
%
 
109,884

 
23.0
%
U.S. Army
 
45,717

 
26.3
%
 
40,155

 
23.3
%
 
150,217

 
26.6
%
 
96,656

 
20.2
%
U.S. Air Force
 
2,967

 
1.7
%
 
757

 
0.4
%
 
5,807

 
1.0
%
 
2,614

 
0.6
%
Total - DoD
 
87,579

 
50.3
%
 
84,336

 
48.8
%
 
299,445

 
53.0
%
 
209,154

 
43.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial aviation
 
30,637

 
17.6
%
 
32,489

 
18.8
%
 
94,706

 
16.8
%
 
98,099

 
20.6
%
Other commercial
 
2,833

 
1.6
%
 
2,720

 
1.6
%
 
9,270

 
1.6
%
 
7,807

 
1.6
%
Total - Commercial
 
33,470

 
19.2
%
 
35,209

 
20.4
%
 
103,976

 
18.4
%
 
105,906

 
22.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other civilian agencies
 
9,282

 
5.3
%
 
8,802

 
5.1
%
 
25,636

 
4.5
%
 
26,804

 
5.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
174,164

 
100
%
 
$
172,780

 
100
%
 
$
565,318

 
100
%
 
$
476,889

 
100
%