Quarterly report pursuant to Section 13 or 15(d)

Business Segments and Customer Information

v3.10.0.1
Business Segments and Customer Information
 6 Months Ended
Jun. 30, 2018
Segment Reporting [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 commercial aviation and business and 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 is as follows (in thousands):
 
 
Three months ended June 30,
 
Six months ended June 30,
 
 
2018
 
2017
 
2018
 
2017
Revenues:
 
 
 
 
 
 
 
 
Supply Chain Management Group
 
$
54,263

 
$
56,404

 
$
110,127

 
$
112,489

Aviation Group
 
35,804

 
32,590

 
68,554

 
64,944

Federal Services Group
 
80,327

 
104,866

 
168,610

 
213,721

Total revenues
 
$
170,394

 
$
193,860

 
$
347,291

 
$
391,154

 
 
 
 
 
 
 
 
 
Operating income:
 
 

 
 

 
 

 
 

Supply Chain Management Group
 
$
8,168

 
$
8,950

 
$
15,764

 
$
17,433

Aviation Group
 
2,846

 
2,579

 
5,107

 
4,915

Federal Services Group
 
3,606

 
3,992

 
6,084

 
7,910

Corporate/unallocated expenses
 
(765
)
 
(516
)
 
(1,507
)
 
(1,057
)
Operating income
 
$
13,855

 
$
15,005

 
$
25,448

 
$
29,201



Customer Information

Our revenues by customer is as follows (dollars in thousands):
 
 
Three months ended June 30,
 
Six months ended June 30,
Customer
 
2018
 
%
 
2017
 
%
 
2018
 
%
 
2017
 
%
U.S. Postal Service
 
$
43,089

 
25.3
%
 
$
45,959

 
23.7
%
 
$
87,120

 
25.1
%
 
$
92,428

 
23.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Navy
 
35,696

 
20.9
%
 
52,030

 
26.8
%
 
78,281

 
22.5
%
 
104,526

 
26.7
%
U.S. Army
 
41,548

 
24.4
%
 
50,399

 
26.1
%
 
84,335

 
24.3
%
 
104,500

 
26.7
%
U.S. Air Force
 
4,943

 
2.9
%
 
1,822

 
0.9
%
 
7,224

 
2.1
%
 
2,840

 
0.7
%
Total - DoD
 
82,187

 
48.2
%
 
104,251

 
53.8
%
 
169,840

 
48.9
%
 
211,866

 
54.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial aviation
 
34,037

 
20.0
%
 
32,265

 
16.6
%
 
65,572

 
18.9
%
 
64,069

 
16.4
%
Other commercial
 
3,444

 
2.0
%
 
3,308

 
1.7
%
 
7,032

 
2.0
%
 
6,437

 
1.7
%
Total - Commercial
 
37,481

 
22.0
%
 
35,573

 
18.3
%
 
72,604

 
20.9
%
 
70,506

 
18.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other government
 
7,637

 
4.5
%
 
8,077

 
4.2
%
 
17,727

 
5.1
%
 
16,354

 
4.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
170,394

 
100
%
 
$
193,860

 
100
%
 
$
347,291

 
100
%
 
$
391,154

 
100
%