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Segments
12 Months Ended
Jan. 01, 2022
Segment Reporting [Abstract]  
Segments

20. Segments

We have two reportable segments: the Southeast segment, and the Western segment.

The Southeast reporting segment, which is also an operating segment, is composed of sales from our facilities in Florida. The Western reporting segment, also an operating segment, is composed of sales from our facilities in Arizona and California.

Centralized financial and operational oversight, including resource allocation and assessment of performance on an income (loss) from operations basis, is performed by our CEO, whom we have determined to be our chief operating decision maker (“CODM”), with oversight by the Board of Directors. Total asset information by segment is not included herein as asset information by segment is not presented to or reviewed by the CODM.

The following table represents summary financial data attributable to our operating segments for the years ended January 1, 2022, January 2, 2021, and December 28, 2019. Results of the Southeast segment for the year ended January 1, 2022 includes the results of Eco for its post-acquisition period from February 1, 2021, and for the year ended January 2, 20201 includes the results of NewSouth for its post-acquisition period from February 1, 2020. Results of the Western segment for the year ended January 1, 2022 includes the results of CRi for its post-acquisition period from May 1, 2021, and Anlin for its post-acquisition period from October 25, 2021. Corporate overhead has been allocated to each segment using an allocation method we believe is reasonable (in thousands):

 

 

 

Year Ended

 

 

 

January 1,

 

 

January 2,

 

 

December 28,

 

 

 

2022

 

 

2021

 

 

2019

 

Net sales:

 

 

 

 

 

 

 

 

 

Southeast segment

 

$

968,693

 

 

$

752,432

 

 

$

606,631

 

Western segment

 

 

192,771

 

 

 

130,189

 

 

 

138,325

 

 

 

 

 

 

 

 

 

 

 

Total net sales

 

$

1,161,464

 

 

$

882,621

 

 

$

744,956

 

 

 

 

 

 

 

 

 

 

 

Income from operations:

 

 

 

 

 

 

 

 

 

Southeast segment

 

$

74,815

 

 

$

85,794

 

 

$

75,484

 

Western segment

 

 

25,641

 

 

 

11,144

 

 

 

8,572

 

Impairment of trade name

 

 

 

 

 

(8,000

)

 

 

 

Restructuring costs and charges

 

 

 

 

 

(4,227

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total income from operations

 

 

100,456

 

 

 

84,711

 

 

 

84,056

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

30,029

 

 

 

27,719

 

 

 

26,417

 

Debt extinguishment costs

 

 

25,472

 

 

 

-

 

 

 

1,512

 

 

 

 

 

 

 

 

 

 

 

Total income before income taxes

 

$

44,955

 

 

$

56,992

 

 

$

56,127

 

Depreciation expense for the years ended January 1, 2022, January 2, 2021 and December 28, 2019, was $26.5 million, $20.9 million, and $15.8 million for our Southeast segment, respectively, and $4.0 million, $3.1 million, and $3.1 million for our Western segment, respectively. Amortization expense for the years ended January 1, 2022, January 2, 2021 and December 28, 2019, was $10.7 million, $9.2 million, and $6.4 million for our Southeast segment, respectively, and $10.4 million, $9.6 million, and $9.4 million for our Western segment, respectively.