Quarterly report pursuant to Section 13 or 15(d)

Business Segments and Customer Information

v3.7.0.1
Business Segments and Customer Information
 6 Months Ended
Jun. 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 six months ended June 30, 2017 and 2016 is as follows (in thousands):

 
 
Three months
 
Six months
 
 
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
 
Supply Chain Management Group
 
$
56,404

 
$
49,785

 
$
112,489

 
$
100,928

Aviation Group
 
32,590

 
32,064

 
64,944

 
65,610

Federal Services Group
 
104,866

 
78,624

 
213,721

 
137,571

Total revenues
 
$
193,860

 
$
160,473

 
$
391,154

 
$
304,109

 
 
 
 
 
 
 
 
 
Operating income:
 
 

 
 

 
 

 
 

Supply Chain Management Group
 
$
8,950

 
$
8,823

 
$
17,433

 
$
17,851

Aviation Group
 
2,579

 
2,657

 
4,915

 
5,946

Federal Services Group
 
3,992

 
1,832

 
7,910

 
3,391

Corporate/unallocated expenses
 
(516
)
 
(1,433
)
 
(1,057
)
 
(2,568
)
Operating income
 
$
15,005

 
$
11,879

 
$
29,201

 
$
24,620



Customer Information

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

 
 
Three months ended June 30,
 
Six months ended June 30,
Customer
 
2017
 
%
 
2016
 
%
 
2017
 
%
 
2016
 
%
U.S. Postal Service
 
$
45,959

 
23.7
%
 
$
44,295

 
27.6
%
 
$
92,428

 
23.6
%
 
$
90,592

 
29.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Navy
 
52,030

 
26.8
%
 
36,569

 
22.8
%
 
104,526

 
26.7
%
 
66,460

 
21.9
%
U.S. Army
 
50,399

 
26.0
%
 
34,291

 
21.4
%
 
104,500

 
26.7
%
 
56,501

 
18.5
%
U.S. Air Force
 
1,822

 
0.9
%
 
876

 
0.5
%
 
2,840

 
0.7
%
 
1,857

 
0.6
%
Total - DoD
 
104,251

 
53.7
%
 
71,736

 
44.7
%
 
211,866

 
54.1
%
 
124,818

 
41.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial aviation
 
32,265

 
16.7
%
 
32,064

 
20.0
%
 
64,069

 
16.4
%
 
65,610

 
21.6
%
Other commercial
 
3,308

 
1.7
%
 
2,804

 
1.7
%
 
6,437

 
1.7
%
 
5,087

 
1.7
%
Total - Commercial
 
35,573

 
18.4
%
 
34,868

 
21.7
%
 
70,506

 
18.1
%
 
70,697

 
23.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other civilian agencies
 
8,077

 
4.2
%
 
9,574

 
6.0
%
 
16,354

 
4.2
%
 
18,002

 
5.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
193,860

 
100
%
 
$
160,473

 
100
%
 
$
391,154

 
100
%
 
$
304,109

 
100
%