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 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, 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