Business Segments and Customer Information

12 Months Ended

Dec. 31, 2012

Business Segments and Customer Information [Abstract]

Business Segments and Customer Information

 

(12)  Business Segments and Customer Information

Segment Information

Management of our business operations is conducted under four reportable operating segments: the Federal Group, the International Group, the IT, Energy and Management Consulting Group and the Supply Chain Management Group. These segments operate under separate management teams and financial information is produced for each segment.  The entities within each of the Federal Group, International 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 profits or losses from operations before income taxes.

Federal Group - Our Federal Group provides legacy equipment sustainment, engineering, technical, management, integrated logistics support and information technology services to DoD and other government agencies.

International Group - Our International Group provides engineering, industrial, logistics and foreign military sales services to the U.S. military 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 civilian government agencies.

Supply Chain Management Group – Our Supply Chain Management Group supplies vehicle parts primarily through a Managed Inventory Program ("MIP") to USPS and direct sales to other clients, including DoD.

Our segment information is as follows (in thousands):

For the years ended December 31,
	2012			2011			2010
Revenues
Federal Group	$	140,424		$	184,147		$	454,660
International Group		167,193			206,746			261,499
IT, Energy and Management Consulting Group		94,225			106,817			94,796
Supply Chain Group		144,913			83,052			-
Total revenues	$	546,755		$	580,762		$	810,955
Income before income taxes:
Federal Group	$	10,130		$	6,099		$	20,574
International Group		5,604			5,342			9,376
IT, Energy and Management Consulting Group		11,802			12,440			10,275
Supply Chain		23,282			15,965			-
Corporate		(6,966	)		(7,454	)		(2,484	)
Income before income taxes	$	43,852		$	32,392		$	37,741
Interest expense (income)
Federal Group	$	291		$	(75	)	$	(31	)
International Group		448			(21	)		197
IT, Energy and Management Consulting Group		14			(73	)		(49	)
Supply Chain		729			350			-
Corporate		5,742			3,504			82
Total interest expense	$	7,224		$	3,685		$	199
Depreciation and amortization expense:
Federal Group	$	3,093		$	2,906		$	4,115
International Group		3,035			1,903			1,521
IT, Energy and Management Consulting Group		3,753			3,256			1,953
Supply Chain Group		9,914			5,402			-
Total depreciation and amortization	$	19,795		$	13,467		$	7,589
Capital expenditures:
Federal Group	$	763		$	547		$	496
International Group		83			573			816
IT, Energy and Management Consulting Group		53			236			305
Supply Chain Group		341			113			-
Corporate		19,623			5,166			3,188
Total capital expenditures	$	20,863		$	6,635		$	4,805

	December 31,
	2012		2011
Total assets:
Federal Group	$	30,130	$	29,653
International Group		31,485		49,734
IT, Energy and Management Consulting Group		64,502		70,108
Infrastructure Group		-		27,372
Supply Chain Group		193,214		203,241
Corporate		90,880		74,404
Total assets	$	410,211	$	454,512

Revenues are net of inter-segment eliminations.  Corporate/unallocated expenses are primarily selling, general and administrative expenses not allocated to segments.  Corporate assets are primarily cash and property and equipment.

Customer Information

We are engaged principally in providing diversified logistics, engineering, IT and consulting services to the government, other government prime contractors, and commercial entities. The largest customer for our services is DoD, including agencies of the U.S. Army, Navy, and Air Force. Our revenue by customer is as follows for the years ended December 31, (in thousands):

Revenues by Customer
(dollars in thousands)
Years ended December 31,
Customer	2012		%		2011		%		2010		%
U.S. Army/Army Reserve	$	182,412		33.4	$	231,615		39.9	$	463,378		57.1
U.S. Navy		120,867		22.1		140,551		24.2		198,833		24.5
U.S. Air Force		6,963		1.3		11,971		2.0		13,304		1.7
Total - DoD		310,242		56.8		384,137		66.1		675,515		83.3
USPS		130,866		23.9		75,964		13.1		-		-
Department of Treasury		33,369		6.1		41,434		7.1		49,332		6.1
Department of Interior		16,884		3.1		24,254		4.2		29,810		3.7
Department of Energy		20,898		3.8		23,010		4.0		21,717		2.7
Other government		32,231		5.9		28,160		4.8		29,598		3.6
Total – Federal civilian agencies		234,248		42.8		192,822		33.2		130,457		16.1
Commercial		2,265		0.4		3,803		0.7		4,983		0.6
Total	$	546,755		100.0	$	580,762		100.0	$	810,955		100.0

We do not measure revenue or profit by product or service lines, either for internal management or external financial reporting purposes, because it would be impractical to do so. Products offered and services performed are determined by contract requirements and the types of products and services provided for one contract bear no relation to similar products and services provided on another contract. Products and services provided vary when new contracts begin or current contracts expire. In many cases, more than one product or service is provided under a contract or contract task order. Accordingly, cost and revenue tracking is designed to best serve contract requirements and segregating costs and revenues by product or service lines in situations for which it is not required would be difficult and costly to both us and our customers.