Quarterly report pursuant to Section 13 or 15(d)

Business Segments and Customer Information

v3.3.0.814
Business Segments and Customer Information
9 Months Ended
Sep. 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 GroupOur 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, formed in January 2015 when we completed the Aviation Acquisition, provides 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, 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 the IT, Energy and Management Consulting Group reportable segment 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 nine-months ended September 30, 2015 and 2014 is as follows (in thousands):

   
Three months
   
Nine months
 
   
2015
   
2014
   
2015
   
2014
 
Revenues:
               
  Supply Chain Management Group
 
$
50,315
   
$
44,542
   
$
144,429
   
$
127,478
 
  Aviation Group
   
32,976
     
-
     
87,644
     
-
 
  Federal Services Group
   
42,240
     
41,915
     
117,774
     
155,117
 
  IT, Energy and Management Consulting Group
   
11,865
     
15,292
     
39,466
     
46,525
 
    Total revenues
 
$
137,396
   
$
101,749
   
$
389,313
   
$
329,120
 
                                 
Operating income:
                               
  Supply Chain Management Group
 
$
9,235
   
$
6,195
   
$
26,222
   
$
21,713
 
  Aviation Group
   
2,116
     
-
     
6,833
     
-
 
  Federal Services Group
   
1,152
     
(105
)
   
529
     
4,259
 
  IT, Energy and Management Consulting Group
   
1,169
     
1,866
     
3,872
     
5,151
 
  Corporate/unallocated expenses
   
(429
)
   
(773
)
   
(2,033
)
   
(1,880
)
   Operating income
 
$
13,243
   
$
7,183
   
$
35,423
   
$
29,243
 
 
   
September 30,
   
December 31,
 
   
2015
   
2014
 
Total assets:
       
  Supply Chain Management Group
 
$
196,355
   
$
192,720
 
  Aviation Group
   
269,743
     
-
 
  Federal Services Group
   
33,014
     
36,225
 
  IT, Energy and Management Consulting Group
   
47,559
     
49,790
 
  Corporate
   
78,018
     
76,595
 
   Total assets
 
$
624,689
   
$
355,330
 
 
Customer Information

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

   
Three months ended September 30,
   
Nine months ended September 30,
 
 
 
 
2015
   
%
   
2014
   
%
   
2015
   
%
   
2014
   
%
 
Source of Revenues
                               
U.S. Postal Service
 
$
47,356
     
34.5
   
$
43,273
     
42.5
   
$
136,875
     
35.1
   
$
123,865
     
37.6
 
Department of Energy
   
2,817
     
2.0
     
4,791
     
4.7
     
11,923
     
3.1
     
14,340
     
4.4
 
Department of Treasury
   
418
     
0.3
     
263
     
0.3
     
1,405
     
0.4
     
9,194
     
2.8
 
Other government
   
6,861
     
5.0
     
9,197
     
9.0
     
18,085
     
4.6
     
23,664
     
7.2
 
Total – Federal civilian agencies
   
57,452
     
41.8
     
57,524
     
56.5
     
168,288
     
43.2
     
171,063
     
52.0
 
                                                                 
U.S. Navy
   
24,036
     
17.5
     
20,568
     
20.2
     
68,040
     
17.5
     
69,324
     
21.1
 
Army/Army Reserve
   
20,476
     
14.9
     
21,855
     
21.5
     
58,204
     
15.0
     
83,579
     
25.4
 
U.S. Air Force
   
869
     
0.6
     
800
     
0.8
     
2,583
     
0.6
     
2,405
     
0.7
 
Total - DoD
   
45,381
     
33.0
     
43,223
     
42.5
     
128,827
     
33.1
     
155,308
     
47.2
 
                                                                 
Commercial Aviation
   
32,976
     
24.0
     
-
     
-
     
87,644
     
22.5
     
-
     
-
 
Other commercial
   
1,587
     
1.2
     
1,002
     
1.0
     
4,554
     
1.2
     
2,749
     
0.8
 
Commercial
   
34,563
     
25.2
     
1,002
     
1.0
     
92,198
     
23.7
     
2,749
     
0.8
 
                                                                 
Total
 
$
137,396
     
100
   
$
101,749
     
100
   
$
389,313
     
100
   
$
329,120
     
100