Segments

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 2023, and October 1, 2022. Results of the Western segment for the three and nine months ended September 30, 2023 include the results of Martin, acquired October 14, 2022, whereas such results are not included for the three and nine month ended October 1, 2022. Corporate overhead has been allocated to each segment using an allocation method we believe is reasonable (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,		October 1,		September 30,			October 1,
	2023		2022		2023			2022
Net sales:
Southeast segment	$	302,942	$	288,246	$	872,964		$	867,505
Western segment		96,989		97,591		288,730			283,515
Total net sales	$	399,931	$	385,837	$	1,161,694		$	1,151,020
Income from operations:
Southeast segment	$	43,465	$	30,037	$	123,940		$	96,607
Western segment		16,435		17,366		43,224			45,132
Restructuring costs and charges, net (1)		794		—		(1,722	)		—
Total income from operations		60,694		47,403		165,442			141,739
Interest expense, net		7,772		6,889		23,642			21,124
Total income before income taxes	$	52,922	$	40,514	$	141,800		$	120,615

(1) For the nine months ended September 30, 2023, restructuring costs and charges, net, totaling $1.7 million relates to the Southeast segment income from operations, which includes a gain of $0.8 million in the three months ended September 30, 2023 relating to the forgiveness of a portion of the operating lease liability by the landlord of the Charlotte, NC location, which we satisfied in the third quarter of 2023. See Note 18 for additional information.

Depreciation expense for the three months ended September 30, 2023 and October 1, 2022, was $6.9 million and $6.7 million for our Southeast segment, respectively, and $1.9 million and $1.6 million for our Western segment, respectively. Depreciation expense for the nine months ended September 30, 2023 and October 1, 2022, was $20.6 million and $20.6 million for our Southeast segment, respectively, and $6.0 million and $4.7 million for our Western segment, respectively. Amortization expense for the three months ended September 30, 2023 and October 1, 2022, was $2.0 million, and $2.7 million for our Southeast segment, respectively, and $4.5 million and $3.1 million for our Western segment, respectively. Amortization expense for the nine months ended September 30, 2023 and October 1, 2022, was $6.0 million, and $8.1 million for our Southeast segment, respectively, and $13.8 million and $11.6 million for our Western segment, respectively.

Total assets of our Southeast segment as of September 30, 2023 and December 31, 2022 were $908.3 million and $909.6 million, respectively. Total assets of our Western segment as of September 30, 2023 and December 31, 2022 were $700.4 million and $730.6 million, respectively.