Business Overview
We are a diversified aftermarket products and services company providing repair
services, parts distribution, logistics, supply chain management and consulting
services for land, sea and air transportation assets to government and
commercial markets. We provide logistics and distribution services for legacy
systems and equipment and professional and technical services to commercial
customer and to the government, including federal and civilian agencies and the
Our operations are conducted within three reportable segments aligned with our
operating segments: (1) Aviation; (2) Fleet; and (3) Federal and Defense. We
provide more information about each of these reportable segments under Item 1,
"
Recent Acquisitions
See Note (2) "Acquisitions" to our Consolidated Financial Statements included in Item 1 of this filing and our 2021 Form 10-K for additional information regarding our recent acquisitions.
Impact of the COVID-19 Pandemic
The coronavirus disease (COVID-19) pandemic continues to negatively affect the
global economy, our business and operations, supply chains, and the industries
in which we operate. However, we have seen continued improvement in our
operating results during the nine months ended
Business Trends
The following discussion provides a brief description of some of the key business factors impacting our results of operations detailed by segment.
Aviation Segment
The COVID-19 pandemic impacted our Aviation segment operations, particularly in
2020 and 2021. We have seen continued improvement in our quarterly revenue
results due to the recovery in demand since the peak of the COVID-19 pandemic
impact during the second quarter of 2020. Our Aviation segment results have
benefited from strong performance following prior investments in growth
initiatives that have produced positive results with quarterly revenue of
Growth in our distribution services has been driven by several new distribution initiatives in providing "tip-to-tail" product-line management capabilities, while our repair business has benefited from a broader recovery in commercial market activity, together with share gains within the business & general aviation ("B&GA") market. Market recovery and our growth initiatives have resulted in a 105% and 38% year-over-year increase in distribution and repair revenue, respectively, during the first nine months of 2022 compared to the same period for the prior year.
We have recently secured key multi-year distribution agreements to both domestic
and new international geographic markets. We believe the new distribution
initiatives will provide sustainable and recurring revenue with growth potential
that will enhance our future results. The acquisition of Global Parts, in
We expect that the current market conditions will result in strategic opportunities for near and long-term growth. We intend to continue capitalizing on opportunities in those markets, which may require future investment.
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Our Fleet segment continues to increase revenue from commercial fleet customers
and e-commerce fulfillment sales as the business continues to progress towards
becoming a more diversified enterprise. We continue to execute on our revenue
diversification strategy as we capture new customers and increase revenue within
e-commerce fulfillment. To support continued e-commerce and e-commerce
fulfillment growth, the Fleet segment announced plans to open a new distribution
warehouse and e-commerce fulfillment center of excellence in
Federal and Defense Segment
Our Federal and Defense segment continues to focus on building our contract
backlog and optimizing legacy programs. We recently announced a transition of
leadership for our Federal and Defense segment as we work to grow our business
and mitigate the impacts of delays in both the timing of contract awards and the
funding process. Strong revenue performance in
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