Segment Information

6 Months Ended

Apr. 04, 2020

Segment Reporting [Abstract]

Segment Information

7. Segment Information

We manage our business in two operating segments: (i) the Bus segment, which includes the manufacturing and assembly of buses to be sold to a variety of customers across the United States, Canada and in international markets; and (ii) the Parts segment, which consists primarily of the purchase of parts from third parties to be sold to dealers within the Company’s network. The tables below present segment net sales and gross profit for the periods presented:

Net sales

	Three Months Ended				Six Months Ended
(in thousands of dollars)	April 4, 2020		March 30, 2019		April 4, 2020		March 30, 2019
Bus (1)	$	238,697	$	195,065	$	373,469	$	334,275
Parts (1)	16,715		16,577		35,160		32,293
Segment net sales	$	255,412	$	211,642	$	408,629	$	366,568

(1) Parts segment revenue includes $1.2 million and $0.9 million for the three months ended April 4, 2020 and March 30, 2019, respectively, and $2.4 million and $1.5 million for the six months ended April 4, 2020 and March 30, 2019, respectively, related to inter-segment sales of parts that was eliminated by the Bus segment upon consolidation.

Gross profit

	Three Months Ended				Six Months Ended
(in thousands of dollars)	April 4, 2020		March 30, 2019		April 4, 2020		March 30, 2019
Bus	$	17,938	$	20,142	$	32,805	$	33,657
Parts	6,231		5,812		12,664		11,407
Segment gross profit	$	24,169	$	25,954	$	45,469	$	45,064

The following table is a reconciliation of segment gross profit to consolidated loss before income taxes for the periods presented:

	Three Months Ended						Six Months Ended
(in thousands of dollars)	April 4, 2020			March 30, 2019			April 4, 2020			March 30, 2019
Segment gross profit	$	24,169		$	25,954		$	45,469		$	45,064
Adjustments:
Selling, general and administrative expenses	(19,858		)	(22,928		)	(40,353		)	(40,201		)
Interest expense	(5,658		)	(3,998		)	(7,555		)	(6,872		)
Interest income	—			—			—			9
Other income (expense), net	180			(275		)	374			(624		)
Loss before income taxes	$	(1,167	)	$	(1,247	)	$	(2,065	)	$	(2,624	)

Sales are attributable to geographic areas based on customer location and were as follows for the periods presented:

	Three Months Ended				Six Months Ended
(in thousands of dollars)	April 4, 2020		March 30, 2019		April 4, 2020		March 30, 2019
United States	$	232,477	$	191,684	$	368,743	$	343,169
Canada	22,746		18,784		35,902		21,860
Rest of world	189		1,174		3,984		1,539
Total net sales	$	255,412	$	211,642	$	408,629	$	366,568