Quarterly report pursuant to Section 13 or 15(d)

Business Segments and Customer Information

v3.8.0.1
Business Segments and Customer Information
 3 Months Ended
Mar. 31, 2018
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 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"), the United States Department of Defense ("DoD") and to other commercial 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 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 months ended March 31, 2018 and 2017 is as follows (in thousands):

 
 
Three months
 
 
2018
 
2017
Revenues:
 
 
 
 
Supply Chain Management Group
 
$
55,864

 
$
56,085

Aviation Group
 
32,750

 
32,354

Federal Services Group
 
88,283

 
108,855

Total revenues
 
$
176,897

 
$
197,294

 
 
 
 
 
Operating income:
 
 

 
 

Supply Chain Management Group
 
$
7,596

 
$
8,483

Aviation Group
 
2,261

 
2,336

Federal Services Group
 
2,478

 
3,918

Corporate/unallocated expenses
 
(742
)
 
(541
)
Operating income
 
$
11,593

 
$
14,196



Customer Information

Our revenues by customer is as follows (dollars in thousands):
 
 
Three months ended March 31,
Customer
 
2018
 
%
 
2017
 
%
U.S. Postal Service
 
$
44,031

 
24.9
%
 
$
46,469

 
23.6
%
 
 
 
 
 
 
 
 
 
U.S. Navy
 
42,585

 
24.1
%
 
52,496

 
26.6
%
U.S. Army
 
42,787

 
24.2
%
 
54,101

 
27.4
%
U.S. Air Force
 
2,281

 
1.3
%
 
1,018

 
0.5
%
Total - DoD
 
87,653

 
49.6
%
 
107,615

 
54.5
%
 
 
 
 
 
 
 
 
 
Commercial aviation
 
31,535

 
17.8
%
 
31,804

 
16.1
%
Other commercial
 
3,588

 
2.0
%
 
3,129

 
1.6
%
Total - Commercial
 
35,123

 
19.8
%
 
34,933

 
17.7
%
 
 
 
 
 
 
 
 
 
Other government
 
10,090

 
5.7
%
 
8,277

 
4.2
%
 
 
 
 
 
 
 
 
 
Total
 
$
176,897

 
100
%
 
$
197,294

 
100
%