Segments

3 Months Ended

Apr. 02, 2022

Segment Reporting [Abstract]

Segments

NOTE 16. 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 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 three-month periods ended April 2, 2022, and April 3, 2021. Results of the Southeast segment for the three-month period ended April 2, 2022 includes the results of Eco for the entire three-month period, whereas for the three-month period ended April 3, 2021 for only its post-acquisition period from February 1, 2021. Results of the Western segment for the three-month period ended April 2, 2022 includes the results of CRi, acquired May 1, 2021, and Anlin, acquired October 25, 2021, whereas there were no results from either CRi or Anlin in the three-month period ended April 3, 2021.

Corporate overhead has been allocated to each segment using an allocation method we believe is reasonable (in thousands):

	Three Months Ended
	April 2,		April 3,
	2022		2021
Net sales:
Southeast segment	$	271,767	$	233,638
Western segment		86,895		37,454
Total net sales	$	358,662	$	271,092
Income from operations:
Southeast segment	$	25,556	$	18,743
Western segment		13,155		5,453
Total income from operations		38,711		24,196
Interest expense, net		7,080		7,457
Total income before income taxes	$	31,631	$	16,739

Depreciation expense for the three-month periods ended April 2, 2022 and April 3, 2021, was $6.9 million and $5.8 million for our Southeast segment, respectively, and $1.6 million and $0.9 million for our Western segment, respectively. Amortization expense for the three-month periods ended April 2, 2022 and April 3, 2021, $2.7 million, and $2.4 million for our Southeast segment, respectively, and $5.3 million and $2.3 million for our Western segment, respectively.

Total assets of our Southeast segment as of April 2, 2022 and January 1, 2022 were $936.5 million and $911.3 million, respectively. Total assets of our Western segment as of April 2, 2022 and January 1, 2022 were $562.6 million and $549.3 million, respectively.