Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-03676 | |
Entity Registrant Name | VSE CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 54-0649263 | |
Entity Address, Address Line One | 6348 Walker Lane | |
Entity Address, City or Town | Alexandria, | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22310 | |
City Area Code | 703 | |
Local Phone Number | 960-4600 | |
Title of 12(b) Security | Common Stock, par value $0.05 per share | |
Trading Symbol | VSEC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 12,779,729 | |
Entity Central Index Key | 0000102752 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 498 | $ 518 |
Receivables (net of allowance of $1.6 million and $1.7 million, respectively) | 83,958 | 76,587 |
Unbilled receivables | 31,211 | 31,882 |
Inventories | 332,023 | 322,702 |
Other current assets | 26,966 | 32,304 |
Total current assets | 474,656 | 463,993 |
Property and equipment (net of accumulated depreciation of $68 million and $66 million, respectively) | 44,478 | 42,486 |
Intangible assets (net of accumulated amortization of $124 million and $135 million, respectively) | 103,527 | 108,263 |
Goodwill | 248,837 | 248,753 |
Operating lease - right-of-use assets | 26,061 | 27,327 |
Other assets | 23,413 | 27,736 |
Total assets | 920,972 | 918,558 |
Current liabilities: | ||
Current portion of long-term debt | 14,162 | 14,162 |
Accounts payable | 94,923 | 115,064 |
Accrued expenses and other current liabilities | 46,684 | 49,465 |
Dividends payable | 1,276 | 1,273 |
Total current liabilities | 157,045 | 179,964 |
Long-term debt, less current portion | 289,683 | 270,407 |
Deferred compensation | 13,773 | 14,328 |
Long-term operating lease obligations | 26,336 | 27,168 |
Deferred tax liabilities | 10,343 | 9,108 |
Other long-term liabilities | 0 | 250 |
Total liabilities | 497,180 | 501,225 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Common stock, par value $0.05 per share, authorized 15,000,000 shares; issued and outstanding 12,768,983 and 12,726,659, respectively | 638 | 636 |
Additional paid-in capital | 89,830 | 88,515 |
Retained earnings | 333,324 | 328,358 |
Accumulated other comprehensive loss | 0 | (176) |
Total stockholders' equity | 423,792 | 417,333 |
Total liabilities and stockholders' equity | $ 920,972 | $ 918,558 |
Unaudited Consolidated Balanc_2
Unaudited Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Stockholders' equity: | ||
Allowance for credit loss | $ 1,600 | $ 1,700 |
Accumulated amortization | (124,000) | (135,000) |
Accumulated depreciation | $ (68,000) | $ (66,000) |
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, issued (in shares) | 12,768,983 | 12,726,659 |
Common stock, outstanding (in shares) | 12,768,983 | 12,726,659 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Total revenues | $ 231,239 | $ 164,981 |
Costs and operating expenses: | ||
Selling, general and administrative expenses | 906 | 38 |
Amortization of intangible assets | 4,736 | 4,288 |
Total costs and operating expenses | 219,325 | 155,378 |
Operating income | 11,914 | 9,603 |
Interest expense, net | 3,609 | 3,030 |
Income before income taxes | 8,305 | 6,573 |
Provision for income taxes | 2,061 | 1,462 |
Net income | $ 6,244 | $ 5,111 |
Basic earnings per share (in dollars per share) | $ 0.49 | $ 0.42 |
Basic weighted average shares outstanding (in shares) | 12,741,394 | 12,076,509 |
Diluted earnings per share (in dollars per share) | $ 0.49 | $ 0.42 |
Diluted weighted average shares outstanding (in shares) | 12,803,279 | 12,171,828 |
Dividends declared per share (in dollars per share) | $ 0.10 | $ 0.09 |
Products | ||
Revenues: | ||
Total revenues | $ 137,231 | $ 78,580 |
Costs and operating expenses: | ||
Costs and operating expenses | 122,455 | 70,712 |
Services | ||
Revenues: | ||
Total revenues | 94,008 | 86,401 |
Costs and operating expenses: | ||
Costs and operating expenses | $ 91,228 | $ 80,340 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 6,244 | $ 5,111 |
Change in fair value of interest rate swap agreements, net of tax | 176 | 511 |
Other comprehensive income, net of tax | 176 | 511 |
Comprehensive income | $ 6,420 | $ 5,622 |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance, beginning balance (in shares) at Dec. 31, 2020 | 11,055,000 | ||||
Balance, beginning balance at Dec. 31, 2020 | $ 356,317 | $ 553 | $ 31,870 | $ 325,097 | $ (1,203) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock (in shares) | 1,599,000 | ||||
Issuance of common stock | 52,017 | $ 80 | 51,937 | ||
Net income | 5,111 | 5,111 | |||
Stock-based compensation (in shares) | 37,000 | ||||
Stock-based compensation | 1,491 | $ 2 | 1,489 | ||
Other comprehensive gain (loss), net of tax | 511 | 511 | |||
Dividends declared | (1,144) | (1,144) | |||
Balance, ending balance (in shares) at Mar. 31, 2021 | 12,691,000 | ||||
Balance, ending balance at Mar. 31, 2021 | $ 414,303 | $ 635 | 85,296 | 329,064 | (692) |
Balance, beginning balance (in shares) at Dec. 31, 2021 | 12,726,659 | 12,727,000 | |||
Balance, beginning balance at Dec. 31, 2021 | $ 417,333 | $ 636 | 88,515 | 328,358 | (176) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 6,244 | 6,244 | |||
Stock-based compensation (in shares) | 42,000 | ||||
Stock-based compensation | 1,317 | $ 2 | 1,315 | ||
Other comprehensive gain (loss), net of tax | 176 | 176 | |||
Dividends declared | $ (1,278) | (1,278) | |||
Balance, ending balance (in shares) at Mar. 31, 2022 | 12,768,983 | 12,769,000 | |||
Balance, ending balance at Mar. 31, 2022 | $ 423,792 | $ 638 | $ 89,830 | $ 333,324 | $ 0 |
Unaudited Consolidated Statem_4
Unaudited Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per share (in dollars per share) | $ 0.10 | $ 0.09 |
Unaudited Consolidated Statem_5
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 6,244 | $ 5,111 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,547 | 5,944 |
Deferred taxes | 1,177 | 1,457 |
Stock-based compensation | 1,308 | 1,415 |
Changes in operating assets and liabilities, net of impact of acquisitions: | ||
Receivables | (7,371) | (2,787) |
Unbilled receivables | 671 | (17,341) |
Inventories | (9,321) | (28,910) |
Other current assets and noncurrent assets | 6,158 | (10,306) |
Accounts payable and deferred compensation | (20,997) | 1,051 |
Accrued expenses and other current and noncurrent liabilities | (2,590) | 7,999 |
Net cash used in operating activities | (18,174) | (36,367) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,269) | (2,109) |
Proceeds from the sale of property and equipment | 0 | 14 |
Proceeds from payments on notes receivable | 2,662 | 412 |
Cash paid for acquisitions, net of cash acquired | 0 | (14,785) |
Net cash provided by (used in) investing activities | 1,393 | (16,468) |
Cash flows from financing activities: | ||
Borrowings on loan agreement | 112,071 | 146,431 |
Repayments on loan agreement | (93,005) | (144,257) |
Proceeds from issuance of common stock, net of underwriters' discounts and issuance costs | 0 | 52,017 |
Earn-out obligation payments | (500) | 0 |
Payments of taxes for equity transactions | (530) | (390) |
Dividends paid | (1,275) | (997) |
Net cash provided by financing activities | 16,761 | 52,804 |
Net decreases in cash and cash equivalents | (20) | (31) |
Cash and cash equivalents at beginning of period | 518 | 378 |
Cash and cash equivalents at end of period | $ 498 | $ 347 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Nature of Operations VSE Corporation (“VSE,” the “Company,” “we,” “us,” or “our”) is 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 commercial and government markets. Our operations are conducted under three reporting units aligned with our operating segments: (1) Aviation; (2) Fleet; and (3) Federal and Defense. In February 2021, we completed the issuance and sale of 1,428,600 shares of the Company's common stock, in a public offering at a price of $35.00 per share. The underwriters exercised their option to purchase an additional 170,497 shares. The transaction closed on February 2, 2021. We received net proceeds of approximately $52 million after deducting underwriting discounts, commissions and offering related expenses, which were used for general corporate purposes, including financing strategic acquisitions and working capital requirements for new program launches. Basis of Presentation Our accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and in accordance with the instructions to SEC Form 10-Q and Article 10 of SEC Regulation S-X. Therefore, such financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 ("2021 Form 10-K"). In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates affecting the financial statements include fair value measurements, inventory provisions, estimated profitability of long-term contracts, valuation allowances on deferred tax assets, fair value of goodwill and other intangible assets and contingencies. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers," which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, "Revenue from Contracts with Customers," as if the acquirer had originated the contracts. The new standard is effective on a prospective basis for fiscal years and interim reporting periods within those fiscal years beginning after December 15, 2022, with early adoption permitted. We elected to early adopt this standard during the first quarter 2022 and will apply the guidance prospectively to business combinations entered into subsequent to adoption. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Global Parts Group, Inc. On July 26, 2021, we acquired Global Parts Group, Inc. ("Global Parts") for a preliminary purchase price of $40 million, net of cash acquired. The preliminary purchase price includes $2 million of contingent consideration, representing the fair value recognized for potential future earn-out payments. See Note (8) "Fair Value Measurements," for additional information regarding the earn-out obligation. HAECO Special Services, LLC On March 1, 2021, we acquired HAECO Special Services, LLC ("HSS") from HAECO Airframe Services, LLC, a division of HAECO Americas ("HAECO") for the purchase price of $14.8 million. HSS operating results are included in our Federal and Defense segment. The acquisition was not material to our consolidated financial statements. During the three months ended March 31, 2021, we incurred $0.3 million of acquisition-related expenses, which are included in selling, general and administrative expenses. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenues Our revenues are derived from the delivery of products to our customers and from services performed for commercial customers, various government agencies, the United States Department of Defense ("DoD") or federal civilian agencies. Revenues by customer for our each of our operating segments for the three months ended March 31, 2022 and 2021 were as follows (in thousands): Three months ended March 31, 2022 Aviation Fleet Federal and Defense Total Commercial $ 91,912 $ 27,856 $ 92 $ 119,860 DoD — 1,729 50,395 52,124 Other government 1,378 37,445 20,432 59,255 Total $ 93,290 $ 67,030 $ 70,919 $ 231,239 Three months ended March 31, 2021 Aviation Fleet Federal and Defense Total Commercial $ 44,346 $ 14,437 $ 318 $ 59,101 DoD — 3,102 42,786 45,888 Other government 25 37,208 22,759 59,992 Total $ 44,371 $ 54,747 $ 65,863 $ 164,981 Revenues by type for our each of our operating segments for the three months ended March 31, 2022 and 2021 were as follows (in thousands): Three months ended March 31, 2022 Aviation Fleet Federal and Defense Total Repair $ 22,363 $ — $ — $ 22,363 Distribution 70,927 67,030 — 137,957 Cost Plus Contract — — 30,577 30,577 Fixed Price Contract — — 18,361 18,361 T&M Contract — — 21,981 21,981 Total $ 93,290 $ 67,030 $ 70,919 $ 231,239 Three months ended March 31, 2021 Aviation Fleet Federal and Defense Total Repair $ 18,316 $ — $ — $ 18,316 Distribution 26,055 54,747 — 80,802 Cost Plus Contract — — 16,551 16,551 Fixed Price Contract — — 23,931 23,931 T&M Contract — — 25,381 25,381 Total $ 44,371 $ 54,747 $ 65,863 $ 164,981 Contract Balances Unbilled receivables (contract assets) represent our right to consideration in exchange for goods or services that we have transferred to the customer prior to us having the right to payment for such goods or services. Contract liabilities are recorded when customers remit contractual cash payments in advance of us satisfying related performance obligations under contractual arrangements, including those with performance obligations to be satisfied over a period of time. We present our unbilled receivables and contract liabilities on a contract-by-contract basis. If a contract liability exists, it is netted against the unbilled receivables balance for that contract. Unbilled receivables were $31.2 million as of March 31, 2022 and $31.9 million as of December 31, 2021. Contract liabilities, which are included in accrued expenses and other current liabilities in our consolidated balance sheets, were $7.4 million as of March 31, 2022 and $7.1 million as of December 31, 2021. For the three months ended March 31, 2022 and 2021, we recognized revenue that was previously included in the beginning balance of contract liabilities of $2.1 million and $0.9 million, respectively. Performance Obligations Our performance obligations are satisfied either at a point in time or over time as work progresses. Revenues from products and services transferred to customers at a point in time accounted for approximately 60% and 49% of our revenues for the three months ended March 31, 2022 and 2021, respectively, primarily related to the sale of vehicle and aircraft parts in our Fleet and Aviation segments. Revenues from products and services transferred to customers over time accounted for approximately 40% and 51% of our revenues for the three months ended March 31, 2022 and 2021, respectively, primarily related to revenues in our Federal and Defense segment and MRO services in our Aviation segment. As of March 31, 2022, the aggregate amount of transaction prices allocated to unsatisfied or partially unsatisfied performance obligations was $198 million. The performance obligations expected to be satisfied within one year and greater than one year are 92% and 8%, respectively. We have applied the practical expedient for certain parts sales and MRO services to exclude the amount of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which we recognize revenue in proportion to the amount we have the right to invoice for services performed. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt consisted of the following (in thousands): March 31, December 31, 2022 2021 Bank credit facility - term loan $ 56,425 $ 60,175 Bank credit facility - revolver loans 249,375 226,559 Principal amount of long-term debt 305,800 286,734 Less debt issuance costs (1,955) (2,165) Total long-term debt 303,845 284,569 Less current portion (14,162) (14,162) Long-term debt, less current portion $ 289,683 $ 270,407 We had letters of credit outstanding totaling $1.0 million as of March 31, 2022 and December 31, 2021. We pay interest on the term and revolving loan borrowings at LIBOR plus a base margin or at a base rate (typically the prime rate) plus a base margin. As of March 31, 2022, the LIBOR margin was 2.25% and the base margin was 3.50%. The margins increase or decrease in increments as our Total Funded Debt/EBITDA Ratio increases or decreases. As of March 31, 2022, interest rates on our outstanding debt ranged from 4.00% to 5.75%, and the effective interest rate on our aggregate outstanding debt was 4.09%. Interest expense incurred on bank loan borrowings and interest rate hedges was $3.4 million and $2.7 million for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, there was no hedged portion of our debt as our two remaining hedges expired in February and March of 2022. As of December 31, 2021, the portion of our debt with interest rate swap agreements was $75 million. Our required term and revolver loan principal payments after March 31, 2022 are as follows (in thousands): Year Ending Term Loan Revolver Loan Total Remainder of 2022 $ 11,250 $ — $ 11,250 2023 15,000 — 15,000 2024 30,175 249,375 279,550 Total $ 56,425 $ 249,375 $ 305,800 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareBasic earnings per share ("EPS") is computed by dividing net income by the weighted average number of shares of common stock outstanding during each period. Shares issued during the period are weighted for the portion of the period that they were outstanding. Our calculation of diluted earnings per common share includes the dilutive effects for the assumed vesting of outstanding stock-based awards. There were no antidilutive common stock equivalents excluded from the diluted per share calculation. The weighted-average number of shares outstanding used to compute basic and diluted EPS were as follows: Three months ended March 31, 2022 2021 Basic weighted average common shares outstanding 12,741,394 12,076,509 Effect of dilutive shares 61,885 95,319 Diluted weighted average common shares outstanding 12,803,279 12,171,828 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingencies We may have certain claims in the normal course of business, including legal proceedings, against us and against other parties. In our opinion, the resolution of these claims will not have a material adverse effect on our results of operations, financial position or cash flows. However, because the results of any legal proceedings cannot be predicted with certainty, the amount of loss, if any, cannot be reasonably estimated. Further, from time-to-time, government agencies audit or investigate whether our operations are being conducted in accordance with applicable contractual and regulatory requirements. Government audits or investigations of us, whether relating to government contracts or conducted for other reasons, could result in administrative, civil or criminal liabilities, including repayments, fines or penalties being imposed upon us, or could lead to suspension or debarment from future government contracting. Government investigations often take years to complete and many result in no adverse action against us. We believe, based upon current information, that the outcome of any such government disputes, audits and investigations will not have a material adverse effect on our results of operations, financial condition or cash flows. |
Business Segments and Customer
Business Segments and Customer Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segments and Customer Information | Business Segments and Customer Information Business Segments Management of our business operations is conducted under three reportable operating segments: Aviation Our Aviation segment provides aftermarket repair and distribution services to commercial, business and general aviation, cargo, military and defense, and rotorcraft customers globally. Core services include parts distribution, engine accessory maintenance, MRO services, rotable exchange and supply chain services. Fleet Our Fleet segment provides parts, inventory management, e-commerce fulfillment, logistics, supply chain support and other services to support the commercial aftermarket medium- and heavy-duty truck market, the United States Postal Service ("USPS"), and the DoD. Core services include vehicle parts distribution, sourcing, IT solutions, customized fleet logistics, warehousing, kitting, just-in-time supply chain management, alternative product sourcing, and engineering and technical support. Federal and Defense Our Federal and Defense segment provides aftermarket MRO and logistics services to improve operational readiness and extend the life cycle of military vehicles, ships and aircraft for the DoD, federal agencies and international defense customers. Core services include procurement; supply chain management; vehicle, maritime and aircraft sustainment services; base operations support; IT services and energy consulting. We evaluate segment performance based on consolidated revenues and operating income. Net sales of our business segments exclude inter-segment sales as these activities are eliminated in consolidation. Corporate expenses are primarily selling, general and administrative expenses not allocated to segments. Our segment information is as follows (in thousands): Three months ended March 31, 2022 2021 Revenues: Aviation $ 93,290 $ 44,371 Fleet 67,030 54,747 Federal and Defense 70,919 65,863 Total revenues $ 231,239 $ 164,981 Operating income (loss): Aviation $ 7,622 $ (332) Fleet 6,381 5,741 Federal and Defense (688) 5,025 Corporate/unallocated expenses (1,401) (831) Operating income $ 11,914 $ 9,603 Customer Information The USPS and U.S. Navy are our largest customers. Our customers also include various other commercial entities and government agencies. Our revenue by customer is as follows (in thousands): Three months ended March 31, Customer 2022 % 2021 % Commercial $ 119,860 52 $ 59,101 36 DoD 52,124 22 45,888 28 Other government 59,255 26 59,992 36 Total $ 231,239 100 $ 164,981 100 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 and the level they fall within the fair value hierarchy (in thousands): Amounts Recorded at Fair Value Financial Statement Classification Fair Value Hierarchy Fair Value March 31, 2022 Fair Value December 31, 2021 Non-COLI assets held in Deferred Supplemental Compensation Plan Other assets Level 1 $ 577 $ 598 Interest rate swap agreements Accrued expenses and other current liabilities Level 2 $ — $ 234 Earn-out obligation - short-term Accrued expenses and other current liabilities Level 3 $ 750 $ 1,000 Earn-out obligation - long-term Other long-term liabilities Level 3 $ — $ 250 Non-Company Owned Life Insurance ("COLI") assets held in our deferred supplemental compensation plan consist of equity funds with fair value based on observable inputs such as quoted prices for identical assets in active markets and changes in fair value are recorded as selling, general and administrative expenses. We were a party to interest rate swap agreements qualifying as cash flow hedges under which we hedged a portion of our variable-rate debt until the agreements expired in February and March 2022. As of December 31, 2021, the fair value of such swap agreements was $0.2 million, a liability recorded in accrued expenses and other current liabilities in our consolidated balance sheets. As of December 31, 2021, we had $0.2 million, net of an income tax effect of $58 thousand, included in accumulated other comprehensive income in the accompanying balance sheets related to the cash flow hedges. The amounts paid and received on the swap agreements are recorded in interest expense in the period during which the related floating-rate interest is incurred. In connection with the acquisition of Global Parts in July 2021, we may be required to pay earn-out obligation payments of up to $2.0 million should Global Parts meet certain financial targets during the twelve months following the acquisition and meet a certain milestone event on or before March 2023. Changes in the earn-out obligation measured at fair value on a recurring basis using unobservable inputs (Level 3) for the three months ended March 31, 2022 are as follows (in thousands): Current portion Long-term portion Total Balance as of December 31, 2021 $ 1,000 $ 250 $ 1,250 Reclassification from long-term to current 250 (250) — Earn-out payments (500) — (500) Balance as of March 31, 2022 $ 750 $ — $ 750 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense during interim periods is based on our estimated annual effective income tax rate plus any discrete items that are recorded in the period in which they occur. Our tax rate is affected by discrete items that may occur in any given year but may not be consistent from year to year. Our effective tax rate was 24.8% and 22.2% for the three months ended March 31, 2022 and 2021, respectively. The effective tax rate was higher for the three months ended March 31, 2022 compared to the same period of prior year primarily due to 1) book expense in connection with the fair market value decrease in our COLI plan in the period ended March 31, 2022 that was reversed for tax purposes as opposed to book income in the same period in 2021, and 2) significantly lower tax deduction projected for foreign derived intangible income ("FDII") in 2022 due to reduced profitability within our Federal and Defense segment. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Our accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and in accordance with the instructions to SEC Form 10-Q and Article 10 of SEC Regulation S-X. Therefore, such financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 ("2021 Form 10-K"). In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022. |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates affecting the financial statements include fair value measurements, inventory provisions, estimated profitability of long-term contracts, valuation allowances on deferred tax assets, fair value of goodwill and other intangible assets and contingencies. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers," which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, "Revenue from Contracts with Customers," as if the acquirer had originated the contracts. The new standard is effective on a prospective basis for fiscal years and interim reporting periods within those fiscal years beginning after December 15, 2022, with early adoption permitted. We elected to early adopt this standard during the first quarter 2022 and will apply the guidance prospectively to business combinations entered into subsequent to adoption. |
Earnings Per Share | Basic earnings per share ("EPS") is computed by dividing net income by the weighted average number of shares of common stock outstanding during each period. Shares issued during the period are weighted for the portion of the period that they were outstanding. Our calculation of diluted earnings per common share includes the dilutive effects for the assumed vesting of outstanding stock-based awards. |
Business Segments | Management of our business operations is conducted under three reportable operating segments: Aviation Our Aviation segment provides aftermarket repair and distribution services to commercial, business and general aviation, cargo, military and defense, and rotorcraft customers globally. Core services include parts distribution, engine accessory maintenance, MRO services, rotable exchange and supply chain services. Fleet Our Fleet segment provides parts, inventory management, e-commerce fulfillment, logistics, supply chain support and other services to support the commercial aftermarket medium- and heavy-duty truck market, the United States Postal Service ("USPS"), and the DoD. Core services include vehicle parts distribution, sourcing, IT solutions, customized fleet logistics, warehousing, kitting, just-in-time supply chain management, alternative product sourcing, and engineering and technical support. Federal and Defense Our Federal and Defense segment provides aftermarket MRO and logistics services to improve operational readiness and extend the life cycle of military vehicles, ships and aircraft for the DoD, federal agencies and international defense customers. Core services include procurement; supply chain management; vehicle, maritime and aircraft sustainment services; base operations support; IT services and energy consulting. |
Revenue from Contract with Customer | Unbilled receivables (contract assets) represent our right to consideration in exchange for goods or services that we have transferred to the customer prior to us having the right to payment for such goods or services. Contract liabilities are recorded when customers remit contractual cash payments in advance of us satisfying related performance obligations under contractual arrangements, including those with performance obligations to be satisfied over a period of time. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenues by customer for our each of our operating segments for the three months ended March 31, 2022 and 2021 were as follows (in thousands): Three months ended March 31, 2022 Aviation Fleet Federal and Defense Total Commercial $ 91,912 $ 27,856 $ 92 $ 119,860 DoD — 1,729 50,395 52,124 Other government 1,378 37,445 20,432 59,255 Total $ 93,290 $ 67,030 $ 70,919 $ 231,239 Three months ended March 31, 2021 Aviation Fleet Federal and Defense Total Commercial $ 44,346 $ 14,437 $ 318 $ 59,101 DoD — 3,102 42,786 45,888 Other government 25 37,208 22,759 59,992 Total $ 44,371 $ 54,747 $ 65,863 $ 164,981 Revenues by type for our each of our operating segments for the three months ended March 31, 2022 and 2021 were as follows (in thousands): Three months ended March 31, 2022 Aviation Fleet Federal and Defense Total Repair $ 22,363 $ — $ — $ 22,363 Distribution 70,927 67,030 — 137,957 Cost Plus Contract — — 30,577 30,577 Fixed Price Contract — — 18,361 18,361 T&M Contract — — 21,981 21,981 Total $ 93,290 $ 67,030 $ 70,919 $ 231,239 Three months ended March 31, 2021 Aviation Fleet Federal and Defense Total Repair $ 18,316 $ — $ — $ 18,316 Distribution 26,055 54,747 — 80,802 Cost Plus Contract — — 16,551 16,551 Fixed Price Contract — — 23,931 23,931 T&M Contract — — 25,381 25,381 Total $ 44,371 $ 54,747 $ 65,863 $ 164,981 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following (in thousands): March 31, December 31, 2022 2021 Bank credit facility - term loan $ 56,425 $ 60,175 Bank credit facility - revolver loans 249,375 226,559 Principal amount of long-term debt 305,800 286,734 Less debt issuance costs (1,955) (2,165) Total long-term debt 303,845 284,569 Less current portion (14,162) (14,162) Long-term debt, less current portion $ 289,683 $ 270,407 |
Schedule of Term Loan Payments | Our required term and revolver loan principal payments after March 31, 2022 are as follows (in thousands): Year Ending Term Loan Revolver Loan Total Remainder of 2022 $ 11,250 $ — $ 11,250 2023 15,000 — 15,000 2024 30,175 249,375 279,550 Total $ 56,425 $ 249,375 $ 305,800 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The weighted-average number of shares outstanding used to compute basic and diluted EPS were as follows: Three months ended March 31, 2022 2021 Basic weighted average common shares outstanding 12,741,394 12,076,509 Effect of dilutive shares 61,885 95,319 Diluted weighted average common shares outstanding 12,803,279 12,171,828 |
Business Segments and Custome_2
Business Segments and Customer Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Our segment information is as follows (in thousands): Three months ended March 31, 2022 2021 Revenues: Aviation $ 93,290 $ 44,371 Fleet 67,030 54,747 Federal and Defense 70,919 65,863 Total revenues $ 231,239 $ 164,981 Operating income (loss): Aviation $ 7,622 $ (332) Fleet 6,381 5,741 Federal and Defense (688) 5,025 Corporate/unallocated expenses (1,401) (831) Operating income $ 11,914 $ 9,603 |
Revenue by Customer | Our revenue by customer is as follows (in thousands): Three months ended March 31, Customer 2022 % 2021 % Commercial $ 119,860 52 $ 59,101 36 DoD 52,124 22 45,888 28 Other government 59,255 26 59,992 36 Total $ 231,239 100 $ 164,981 100 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 and the level they fall within the fair value hierarchy (in thousands): Amounts Recorded at Fair Value Financial Statement Classification Fair Value Hierarchy Fair Value March 31, 2022 Fair Value December 31, 2021 Non-COLI assets held in Deferred Supplemental Compensation Plan Other assets Level 1 $ 577 $ 598 Interest rate swap agreements Accrued expenses and other current liabilities Level 2 $ — $ 234 Earn-out obligation - short-term Accrued expenses and other current liabilities Level 3 $ 750 $ 1,000 Earn-out obligation - long-term Other long-term liabilities Level 3 $ — $ 250 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | Changes in the earn-out obligation measured at fair value on a recurring basis using unobservable inputs (Level 3) for the three months ended March 31, 2022 are as follows (in thousands): Current portion Long-term portion Total Balance as of December 31, 2021 $ 1,000 $ 250 $ 1,250 Reclassification from long-term to current 250 (250) — Earn-out payments (500) — (500) Balance as of March 31, 2022 $ 750 $ — $ 750 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 02, 2021 | Feb. 28, 2021 |
Accounting Policies [Abstract] | ||
Public offering, issued (in shares) | 170,497 | 1,428,600 |
Public offering, price (in dollars per share) | $ 35 | |
Public offering proceeds | $ 52 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Jul. 26, 2021 | Mar. 01, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Business Acquisition [Line Items] | ||||
Cash paid for acquisitions, net of cash acquired | $ 0 | $ 14,785 | ||
Global Parts | ||||
Business Acquisition [Line Items] | ||||
Cash paid for acquisitions, net of cash acquired | $ 40,000 | |||
Earn-out payments | $ 2,000 | |||
HAECO Special Services, LLC | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 14,800 | |||
Acquisition related expenses | $ 300 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 231,239 | $ 164,981 |
Repair | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 22,363 | 18,316 |
Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 137,957 | 80,802 |
Cost Plus Contract | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 30,577 | 16,551 |
Fixed Price Contract | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 18,361 | 23,931 |
T&M Contract | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 21,981 | 25,381 |
Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 119,860 | 59,101 |
DoD | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 52,124 | 45,888 |
Other government | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 59,255 | 59,992 |
Aviation | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 93,290 | 44,371 |
Aviation | Repair | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 22,363 | 18,316 |
Aviation | Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 70,927 | 26,055 |
Aviation | Cost Plus Contract | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Aviation | Fixed Price Contract | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Aviation | T&M Contract | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Aviation | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 91,912 | 44,346 |
Aviation | DoD | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Aviation | Other government | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,378 | 25 |
Fleet | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 67,030 | 54,747 |
Fleet | Repair | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Fleet | Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 67,030 | 54,747 |
Fleet | Cost Plus Contract | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Fleet | Fixed Price Contract | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Fleet | T&M Contract | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Fleet | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 27,856 | 14,437 |
Fleet | DoD | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,729 | 3,102 |
Fleet | Other government | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 37,445 | 37,208 |
Federal and Defense | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 70,919 | 65,863 |
Federal and Defense | Repair | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Federal and Defense | Distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Federal and Defense | Cost Plus Contract | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 30,577 | 16,551 |
Federal and Defense | Fixed Price Contract | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 18,361 | 23,931 |
Federal and Defense | T&M Contract | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 21,981 | 25,381 |
Federal and Defense | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 92 | 318 |
Federal and Defense | DoD | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 50,395 | 42,786 |
Federal and Defense | Other government | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 20,432 | $ 22,759 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unbilled receivables | $ 31,211 | $ 31,882 | |
Contract with customer, liability | 7,400 | $ 7,100 | |
Contract with customer, liability, revenue recognized | 2,100 | $ 900 | |
Revenue, remaining performance obligation | $ 198,000 | ||
Revenue from Contract with Customer Benchmark | Product Concentration Risk | Transferred at Point in Time | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Concentration risk, percentage | 60.00% | 49.00% | |
Revenue from Contract with Customer Benchmark | Product Concentration Risk | Transferred over Time | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Concentration risk, percentage | 40.00% | 51.00% |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) | Mar. 31, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, remaining performance obligation, percentage | 92.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, remaining performance obligation, percentage | 8.00% |
Debt - Long-term debt (Details)
Debt - Long-term debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 305,800 | $ 286,734 |
Less debt issuance costs | (1,955) | (2,165) |
Total long-term debt | 303,845 | 284,569 |
Less current portion | (14,162) | (14,162) |
Long-term debt, less current portion | 289,683 | 270,407 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | 56,425 | 60,175 |
Revolver Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 249,375 | $ 226,559 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2022USD ($)derivativeInstrument | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |||
Number of derivative instruments expired | derivativeInstrument | 2 | ||
Loans Payable And Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 4.09% | ||
Interest expense, net | $ 3,400,000 | $ 2,700,000 | |
Loans Payable And Revolving Credit Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate range | 4.00% | ||
Loans Payable And Revolving Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate range | 5.75% | ||
Loans Payable And Revolving Credit Facility | Swap | |||
Debt Instrument [Line Items] | |||
Derivative notional amount | $ 0 | $ 75,000,000 | |
Loans Payable And Revolving Credit Facility | LIBOR | |||
Debt Instrument [Line Items] | |||
Base margin | 2.25% | ||
Loans Payable And Revolving Credit Facility | Base Rate | |||
Debt Instrument [Line Items] | |||
Base margin | 3.50% | ||
Revolver Loan | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding | $ 1,000,000 |
Debt - Loan Payments (Details)
Debt - Loan Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2022 | $ 11,250 | |
2023 | 15,000 | |
2024 | 279,550 | |
Long-term debt | 305,800 | $ 286,734 |
Long-term debt | 305,800 | 286,734 |
Term Loan | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2022 | 11,250 | |
2023 | 15,000 | |
2024 | 30,175 | |
Long-term debt | 56,425 | |
Long-term debt | 56,425 | |
Revolver Loan | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2022 | 0 | |
2023 | 0 | |
2024 | 249,375 | |
Long-term debt | 249,375 | 226,559 |
Long-term debt | $ 249,375 | $ 226,559 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Basic weighted average common shares outstanding (in shares) | 12,741,394 | 12,076,509 |
Effect of dilutive shares (in shares) | 61,885 | 95,319 |
Diluted weighted average common shares outstanding (in shares) | 12,803,279 | 12,171,828 |
Business Segments and Custome_3
Business Segments and Customer Information - Segment Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segments | segment | 3 | |
Number of reportable segments | segment | 3 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 231,239 | $ 164,981 |
Operating income (loss) | 11,914 | 9,603 |
Corporate/unallocated expenses | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | (1,401) | (831) |
Aviation | ||
Segment Reporting Information [Line Items] | ||
Revenues | 93,290 | 44,371 |
Aviation | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | 7,622 | (332) |
Fleet | ||
Segment Reporting Information [Line Items] | ||
Revenues | 67,030 | 54,747 |
Fleet | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | 6,381 | 5,741 |
Federal and Defense | ||
Segment Reporting Information [Line Items] | ||
Revenues | 70,919 | 65,863 |
Federal and Defense | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | $ (688) | $ 5,025 |
Business Segments and Custome_4
Business Segments and Customer Information - Major Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue, Major Customer [Line Items] | ||
Revenues | $ 231,239 | $ 164,981 |
Commercial | ||
Revenue, Major Customer [Line Items] | ||
Revenues | 119,860 | 59,101 |
DoD | ||
Revenue, Major Customer [Line Items] | ||
Revenues | 52,124 | 45,888 |
Other government | ||
Revenue, Major Customer [Line Items] | ||
Revenues | $ 59,255 | $ 59,992 |
Customer Concentration Risk | Revenue from Contract with Customer Benchmark | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue by customer | 100.00% | 100.00% |
Customer Concentration Risk | Revenue from Contract with Customer Benchmark | Commercial | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue by customer | 52.00% | 36.00% |
Customer Concentration Risk | Revenue from Contract with Customer Benchmark | DoD | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue by customer | 22.00% | 28.00% |
Customer Concentration Risk | Revenue from Contract with Customer Benchmark | Other government | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue by customer | 26.00% | 36.00% |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Level 1 | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-COLI assets held in Deferred Supplemental Compensation Plan | $ 577 | $ 598 |
Level 2 | Accrued expenses and other current liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | 0 | 234 |
Level 3 | Accrued expenses and other current liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current portion of earn-out obligation | 750 | 1,000 |
Level 3 | Long-term portion | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Earn-out obligation, less current portion | $ 0 | $ 250 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Jul. 26, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Income tax expense benefit on interest rate swap | $ 58 | |||||
Stockholders' Equity Attributable to Parent | $ 423,792 | $ 417,333 | $ 414,303 | $ 356,317 | ||
Accumulated Other Comprehensive Loss | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | $ 0 | $ (176) | $ (692) | $ (1,203) | ||
Global Parts | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Earn-out payments | $ 2,000 |
Fair Value Measurements - Earn-
Fair Value Measurements - Earn-out Obligations (Details) - Level 3 - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 1,250,000 | |
Reclassification from long-term to current | $ 0 | |
Earn-out payments | (500,000) | |
Ending balance | 750,000 | |
Current portion | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 1,000,000 | |
Reclassification from long-term to current | 250,000 | |
Earn-out payments | (500,000) | |
Ending balance | 750,000 | |
Long-term portion | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 250,000 | |
Reclassification from long-term to current | $ (250,000) | |
Earn-out payments | 0 | |
Ending balance | $ 0 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 24.80% | 22.20% |