Business Segments and Customer Information

6 Months Ended

Jun. 30, 2014

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") to USPS and direct sales to other clients.

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

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.

IT, Energy and Management Consulting Group – Our IT, Energy and Management Consulting Group provides technical and consulting services primarily to various civilian government agencies.

These segments operate under separate management teams and financial information is produced for each segment.  The entities within each of the Supply Chain Management Group, International Group, Federal 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 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, 2014 and 2013 is as follows (in thousands):

	Three months						Six months
	2014			2013			2014			2013
Revenues:
Supply Chain Management Group	$	42,313		$	36,891		$	82,936		$	74,594
International Group		26,794			36,239			61,510			71,629
Federal Group		23,137			26,817			51,692			54,388
IT, Energy and Management Consulting Group		15,718			19,115			31,233			37,608
Total revenues	$	107,962		$	119,062		$	227,371		$	238,219
Operating income:
Supply Chain Management Group	$	7,697		$	6,974		$	15,518		$	13,129
International Group		759			1,473			3,148			3,166
Federal Group		887			2,510			1,216			3,641
IT, Energy and Management Consulting Group		1,832			2,492			3,285			3,731
Corporate/unallocated expenses		(472	)		(748	)		(1,107	)		(1,024	)
Operating income	$	10,703		$	12,701		$	22,060		$	22,643

Customer Information

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

	Three months				Six months
	ended June 30,				ended June 30,
	2014		2013		2014		2013
Source of Revenues
Army/Army Reserve	$	28,026	$	28,161	$	61,724	$	59,754
U.S. Navy		24,142		27,745		48,756		53,149
U.S. Air Force		809		3,228		1,605		6,407
Total - DoD		52,977		59,134		112,085		119,310
U.S. Postal Service		41,263		34,446		80,592		68,828
Department of Energy		4,923		5,214		9,549		10,106
Department of Treasury		573		9,302		8,931		18,811
Department of Interior		500		2,809		695		5,544
Other government		6,788		7,577		13,772		14,466
Total – Federal civilian agencies		54,047		59,348		113,539		117,755
Commercial		938		580		1,747		1,154
Total	$	107,962	$	119,062	$	227,371	$	238,219