Segments

3 Months Ended

Apr. 01, 2023

Segment Reporting [Abstract]

Segments

NOTE 15. 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, Utah 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 months ended April 1, 2023, and April 2, 2022. Results of the Western segment for the three months ended April 1, 2023 include the results of Martin, acquired October 14, 2022, whereas such results are not included for the three month ended April 2, 2022. Corporate overhead has been allocated to each segment using an allocation method we believe is reasonable (in thousands):

	Three Months Ended
	April 1,		April 2,
	2023		2022
Net sales:
Southeast segment	$	282,045	$	271,767
Western segment		94,784		86,895
Total net sales	$	376,829	$	358,662
Income from operations:
Southeast segment	$	40,521	$	25,556
Western segment		12,797		13,155
Total income from operations		53,318		38,711
Interest expense, net		7,656		7,080
Total income before income taxes	$	45,662	$	31,631

Depreciation expense for the three months ended April 1, 2023 and April 2, 2022, was $6.8 million and $6.9 million for our Southeast segment, respectively, and $2.1 million and $1.6 million for our Western segment, respectively. Amortization expense for the three months ended April 1, 2023 and April 2, 2022, was $2.0 million, and $2.7 million for our Southeast segment, respectively, and $4.8 million and $5.3 million for our Western segment, respectively.

Total assets of our Southeast segment as of April 1, 2023 and December 31, 2022 were $907.4 million and $909.6 million, respectively. Total assets of our Western segment as of April 1, 2023 and December 31, 2022 were $717.0 million and $730.6 million, respectively.