Business Segments and Customer Information

3 Months Ended

Mar. 31, 2016

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 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 months ended March 31, 2016 and 2015 is as follows (in thousands):

	Three months ended March 31,
	2016			2015
Revenues:
Supply Chain Management Group	$	51,143		$	46,242
Aviation Group		33,546			22,764
Federal Services Group		47,715			37,792
IT, Energy and Management Consulting Group		11,232			13,993
Total revenues	$	143,636		$	120,791
Operating income:
Supply Chain Management Group	$	9,028		$	8,306
Aviation Group		3,289			2,113
Federal Services Group		389			(267	)
IT, Energy and Management Consulting Group		888			1,215
Corporate/unallocated expenses		(853	)		(683	)
Operating income	$	12,741		$	10,684

Customer Information

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

	Three months ended March 31,
Customer	2016		%		2015		%
U. S. Postal Service	$	46,297		32.2	$	44,180		36.6
U.S. Navy		29,891		20.8		21,397		17.7
U.S. Army		22,210		15.5		19,171		15.9
U.S. Air Force		981		0.7		790		0.6
Total-DoD		53,082		37.0		41,358		34.2
Commercial Aviation		33,546		23.3		22,764		18.9
Other Commercial		2,283		1.6		1,207		1.0
Total-Commercial		35,829		24.9		23,971		19.9
Department of Energy		2,903		2.0		4,444		3.7
Social Security Administration		2,587		1.8		2,450		2.0
Other Government		2,938		2.1		4,388		3.6
Total-Other Civilian Agencies		8,428		5.9		11,282		9.3
Total	$	143,636		100.0	$	120,791		100.0