Business Segments and Customer Information

3 Months Ended

Mar. 31, 2015

Business Segments and Customer Information [Abstract]

Business Segments and Customer Information

(6) Business Segments and Customer Information

Business Segments

Beginning in 2015, we have consolidated our former International and Federal Groups into a single operating group and named it our Federal Services Group. 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 USPS and to other clients.

Aviation Group - Our Aviation Group, formed in January 2015 when we acquired our aviation businesses, provides MRO services, parts supply and distribution, and supply chain solutions for business aviation and regional 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 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 each of the Federal Services 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 months ended March 31, 2015 and 2014 is as follows (in thousands):

	Three Months
	ended March 31,
	2015			2014
Revenues:
Supply Chain Management Group	$	46,242		$	40,623
Aviation Group		22,764			-
Federal Services Group		37,792			63,270
IT, Energy and Management Consulting Group		13,993			15,516
Total revenues	$	120,791		$	119,409
Operating income:
Supply Chain Management Group	$	8,306		$	7,821
Aviation Group		2,113			-
Federal Services Group		(267	)		2,718
IT, Energy and Management Consulting Group		1,215			1,453
Corporate/unallocated expenses		(683	)		(635	)
Operating income	$	10,684		$	11,357

	March 31,		December 31,
	2015		2014
Total assets:
Supply Chain Management Group	$	216,098	$	192,720
Aviation Group		277,844		-
Federal Services Group		38,050		36,225
IT, Energy and Management Consulting Group		24,722		49,790
Corporate/unallocated expenses		86,756		76,595
Total assets	$	643,470	$	355,330

Customer Information

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

	Three Months
	ended March 31,
	2015		%		2014		%
Source of Revenues
U.S. Navy	$	21,397		17.7	$	24,614		20.6
Army/Army Reserve		19,171		15.9		33,698		28.2
U.S. Air Force		790		0.7		796		0.7
Total - DoD		41,358		34.3		59,108		49.5
U.S. Postal Service		44,180		36.6		39,329		32.9
Department of Energy		4,444		3.7		4,626		3.9
Department of Treasury		415		0.3		8,358		7.0
Other government		6,423		5.3		7,179		6.0
Total – Federal civilian agencies		55,462		45.9		59,492		49.8
Commercial		23,971		19.8		809		0.7
Total	$	120,791		100.0	$	119,409		100.0