Segments

9 Months Ended

Oct. 01, 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.

The following table represents summary financial data attributable to our operating segments for the three and nine months ended October 1, 2022, and October 2, 2021. Results of the Southeast segment for the three and nine months ended October 1, 2022 includes the results of Eco for the entire three- and nine-month periods, whereas for the three and nine months ended October 2, 2021, the three months ended October 2, 2021 includes the results of Eco for the entire three-month period, but the nine months ended October 2, 2021 includes only its post-acquisition period from February 1, 2021. Results of the Western segment for the three and nine months ended October 1, 2022 includes the results of CRi, acquired May 1, 2021, and Anlin, acquired October 25, 2021. Results of the Western segment for the three and nine months ended October 2, 2021, includes CRi's results for the post acquisition period from May 1, 2021, and no results from Anlin. Corporate overhead has been allocated to each segment using an allocation method we believe is reasonable (in thousands):

	Three Months Ended					Nine Months Ended
	October 1,		October 2,			October 1,		October 2,
	2022		2021			2022		2021
Net sales:
Southeast segment	$	288,246	$	255,170		$	867,505	$	731,257
Western segment		97,591		45,261			283,515		125,766
Total net sales	$	385,837	$	300,431		$	1,151,020	$	857,023
Income from operations:
Southeast segment	$	30,037	$	20,713		$	96,607	$	54,977
Western segment		17,366		4,895			45,132		16,091
Total income from operations		47,403		25,608			141,739		71,068
Interest expense, net		6,889		7,686			21,124		22,968
Debt extinguishment costs		—		25,472			—		25,472
Total income (loss) before income taxes	$	40,514	$	(7,550	)	$	120,615	$	22,628

Depreciation expense for the three months ended October 1, 2022 and October 2, 2021, was $6.7 million and $7.0 million for our Southeast segment, respectively, and $1.6 million and $0.9 million for our Western segment, respectively. Depreciation expense for the nine-months ended October 1, 2022 and October 2, 2021, was $20.6 million and $19.7 million for our Southeast segment, respectively, and $4.7 million and $2.6 million for our Western segment, respectively. Amortization expense for the three months ended October 1, 2022 and October 2, 2021, was $2.7 million, and $2.7 million for our Southeast segment, respectively, and $3.1 million and $2.6 million for our Western segment, respectively. Amortization expense for the nine months ended October 1, 2022 and October 2, 2021, was $8.1 million, and $7.9 million for our Southeast segment, respectively, and $11.6 million and $7.3 million for our Western segment, respectively.

Total assets of our Southeast segment as of October 1, 2022 and January 1, 2022 were $995.3 million and $911.3 million, respectively. Total assets of our Western segment as of October 1, 2022 and January 1, 2022 were $607.3 million and $549.3 million, respectively.