Quarterly report pursuant to Section 13 or 15(d)

Business Segments and Customer Information

v3.10.0.1
Business Segments and Customer Information
 9 Months Ended
Sep. 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 September 30,
 
Nine months ended September 30,
 
 
2018
 
2017
 
2018
 
2017
Revenues:
 
 
 
 
 
 
 
 
Supply Chain Management Group
 
$
51,834

 
$
51,174

 
$
161,961

 
$
163,663

Aviation Group
 
34,000

 
31,059

 
102,554

 
96,003

Federal Services Group
 
83,097

 
91,931

 
251,707

 
305,652

Total revenues
 
$
168,931

 
$
174,164

 
$
516,222

 
$
565,318

 
 
 
 
 
 
 
 
 
Operating income:
 
 

 
 

 
 

 
 

Supply Chain Management Group
 
$
7,783

 
$
8,178

 
$
23,547

 
$
25,611

Aviation Group
 
2,184

 
1,983

 
7,291

 
6,898

Federal Services Group
 
6,186

 
2,593

 
12,270

 
10,503

Corporate/unallocated expenses
 
(456
)
 
(517
)
 
(1,963
)
 
(1,574
)
Operating income
 
$
15,697

 
$
12,237

 
$
41,145

 
$
41,438



In the third quarter of 2018, we completed the sale of a contract we had been awarded by the National Institutes of Health, which resulted in a $1.7 million gain recorded within our Federal Services Group.

Customer Information

Our revenues by customer is as follows (dollars in thousands):
 
 
Three months ended September 30,
 
Nine months ended September 30,
Customer
 
2018
 
%
 
2017
 
%
 
2018
 
%
 
2017
 
%
U.S. Postal Service
 
$
43,031

 
25.5
%
 
$
43,833

 
25.2
%
 
$
130,151

 
25.2
%
 
$
136,261

 
24.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Navy
 
37,013

 
21.9
%
 
38,895

 
22.3
%
 
115,294

 
22.4
%
 
143,421

 
25.4
%
U.S. Army
 
38,167

 
22.6
%
 
45,717

 
26.3
%
 
122,502

 
23.7
%
 
150,217

 
26.6
%
U.S. Air Force
 
4,822

 
2.9
%
 
2,967

 
1.7
%
 
12,046

 
2.3
%
 
5,807

 
1.0
%
Total - DoD
 
80,002

 
47.4
%
 
87,579

 
50.3
%
 
249,842

 
48.4
%
 
299,445

 
53.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial aviation
 
32,641

 
19.3
%
 
30,637

 
17.6
%
 
98,213

 
19.0
%
 
94,706

 
16.8
%
Other commercial
 
3,386

 
2.0
%
 
2,833

 
1.6
%
 
10,418

 
2.0
%
 
9,270

 
1.6
%
Total - Commercial
 
36,027

 
21.3
%
 
33,470

 
19.2
%
 
108,631

 
21.0
%
 
103,976

 
18.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other government
 
9,871

 
5.8
%
 
9,282

 
5.3
%
 
27,598

 
5.4
%
 
25,636

 
4.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
168,931

 
100
%
 
$
174,164

 
100
%
 
$
516,222

 
100
%
 
$
565,318

 
100
%