Quarterly report pursuant to Section 13 or 15(d)

Business Segments and Customer Information

v3.2.0.727
Business Segments and Customer Information
 6 Months Ended
Jun. 30, 2015
Business Segments and Customer Information [Abstract]  
Business Segments and Customer Information
(6) 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 clients.

Aviation Group - Our Aviation Group, formed in January 2015 when we completed the Aviation Acquisition, provides MRO services, parts supply and distribution, and supply chain solutions for business aviation and regional jet aircraft engines and engine accessories.

Federal Services Group - Our Federal Services Group, which represents the consolidation in the beginning of 2015 of our former International and Federal groups, 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 each of the Federal Services Group and IT, Energy and Management Consulting Group reportable segments 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 six-months ended June 30, 2015 and 2014 is as follows (in thousands):

   
Three months
    
Six months
  
   
2015
    
2014
    
2015
    
2014
  
Revenues:
                
  Supply Chain Management Group
  
$
47,872
    
$
42,313
    
$
94,114
    
$
82,936
  
  Aviation Group
    
31,904
      
-
      
54,668
      
-
  
  Federal Services Group
    
37,742
      
49,931
      
75,534
      
113,202
  
  IT, Energy and Management Consulting Group
    
13,608
      
15,718
      
27,601
      
31,233
  
    Total revenues
  
$
131,126
    
$
107,962
    
$
251,917
    
$
227,371
  
                                 
Operating income:
                                
  Supply Chain Management Group
  
$
8,681
    
$
7,697
    
$
16,987
    
$
15,518
  
  Aviation Group
    
2,604
      
-
      
4,717
      
-
  
  Federal Services Group
    
(356
)
    
1,646
      
(623
)
    
4,364
  
  IT, Energy and Management Consulting Group
    
1,488
      
1,832
      
2,703
      
3,285
  
  Corporate/unallocated expenses
    
(921
)
    
(472
)
    
(1,604
)
    
(1,107
)
   Operating income
  
$
11,496
    
$
10,703
    
$
22,180
    
$
22,060
  
 
   
June 30,
    
December 31,
  
   
2015
    
2014
  
Total assets:
        
  Supply Chain Management Group
  
$
190,372
    
$
192,720
  
  Aviation Group
    
272,890
      
-
  
  Federal Services Group
    
33,823
      
36,225
  
  IT, Energy and Management Consulting Group
    
49,633
      
49,790
  
  Corporate
    
85,312
      
76,595
  
   Total assets
  
$
632,030
    
$
355,330
  
 
Customer Information

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

   
Three months ended June 30,
    
Six months ended June 30,
  
   
2015
    
%
    
2014
    
%
    
2015
    
%
    
2014
    
%
  
Source of Revenues
                                
U.S. Navy
  
$
22,607
      
17.2
    
$
24,142
      
22.4
    
$
44,004
      
17.4
    
$
48,756
      
21.5
  
Army/Army Reserve
    
18,557
      
14.2
      
28,026
      
26.0
      
37,728
      
15.0
      
61,724
      
27.1
  
U.S. Air Force
    
924
      
0.7
      
809
      
0.7
      
1,714
      
0.7
      
1,605
      
0.7
  
Total - DoD
    
42,088
      
32.1
      
52,977
      
49.1
      
83,446
      
33.1
      
112,085
      
49.3
  
                                                                 
U.S. Postal Service
    
45,339
      
34.5
      
41,263
      
38.2
      
89,519
      
35.5
      
80,592
      
35.4
  
Department of Energy
    
4,662
      
3.6
      
4,923
      
4.5
      
9,106
      
3.6
      
9,549
      
4.2
  
Department of Treasury
    
572
      
0.4
      
573
      
0.5
      
987
      
0.4
      
8,931
      
3.9
  
Other government
    
4,801
      
3.7
      
7,288
      
6.8
      
11,224
      
4.5
      
14,467
      
6.4
  
Total – Federal civilian agencies
    
55,374
      
42.2
      
54,047
      
50.0
      
110,836
      
44.0
      
113,539
      
49.9
  
                                                                 
Commercial Aviation
    
31,904
      
24.3
      
-
      
-
      
54,668
      
21.7
      
-
      
-
  
Other commercial
    
1,760
      
1.4
      
938
      
0.9
      
2,967
      
1.2
      
1,747
      
0.8
  
Commercial
    
33,664
      
25.7
      
938
      
0.9
      
57,635
      
22.9
      
1,747
      
0.8
  
                                                                 
Total
  
$
131,126
      
100
    
$
107,962
      
100
    
$
251,917
      
100
    
$
227,371
      
100