Business Segments and Customer Information

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2016 and 2015 is as follows (in thousands):

	Three months						Six months
	2016			2015			2016			2015
Revenues:
Supply Chain Management Group	$	49,785		$	47,872		$	100,928		$	94,114
Aviation Group		32,064			31,904			65,610			54,668
Federal Services Group		66,587			37,742			114,302			75,534
IT, Energy and Management Consulting Group		12,037			13,608			23,269			27,601
Total revenues	$	160,473		$	131,126		$	304,109		$	251,917
Operating income:
Supply Chain Management Group	$	8,823		$	8,681		$	17,851		$	16,987
Aviation Group		2,657			2,604			5,946			4,717
Federal Services Group		1,046			(356	)		1,717			(623	)
IT, Energy and Management Consulting Group		786			1,488			1,674			2,703
Corporate/unallocated expenses		(1,433	)		(921	)		(2,568	)		(1,604	)
Operating income	$	11,879		$	11,496		$	24,620		$	22,180

Customer Information

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

	Three months ended June 30,								Six months ended June 30,
	2016		%		2015		%		2016		%		2015		%
Customer
U.S. Postal Service	$	44,295		27.6	$	45,339		34.5	$	90,592		29.8	$	89,519		35.5
U.S. Navy		36,569		22.8		22,607		17.2		66,460		21.9		44,004		17.4
U.S. Army		34,291		21.4		18,557		14.2		56,501		18.5		37,728		15.0
U.S. Air Force		876		0.5		924		0.7		1,857		0.6		1,714		0.7
Total - DoD		71,736		44.7		42,088		32.1		124,818		41.0		83,446		33.1
Commercial aviation		32,064		20.0		31,904		24.3		65,610		21.6		54,668		21.7
Other commercial		2,804		1.7		1,760		1.4		5,087		1.7		2,967		1.2
Total - Commercial		34,868		21.7		33,664		25.7		70,697		23.3		57,635		22.9
Department of Energy		3,006		1.9		4,662		3.6		5,909		1.9		9,106		3.6
Social Security Administration		2,463		1.5		2,271		1.7		5,050		1.7		4,721		1.9
Other government		4,105		2.6		3,102		2.4		7,043		2.3		7,490		3.0
Total – Other Civilian Agencies		9,574		6.0		10,035		7.7		18,002		5.9		21,317		8.5
Total	$	160,473		100	$	131,126		100	$	304,109		100	$	251,917		100