INDUSTRY SEGMENT INFORMATION

12 Months Ended

Dec. 29, 2012

INDUSTRY SEGMENT INFORMATION

INDUSTRY SEGMENT INFORMATION

16. INDUSTRY SEGMENT INFORMATION

The Company operates primarily in two industry groups, HVAC and Construction Products. The Company has identified two reportable segments in each of the two industry groups: the Heating and Cooling segment and the Evaporative Cooling segment in the HVAC industry group and the Concrete, Aggregates and Construction Supplies segment (CACS) and the Door segment in the Construction Products industry group. The Heating and Cooling segment produces and sells gas-fired wall furnaces, console heaters and fan coils from the Company’s wholly-owned subsidiary, WFC of Colton, California. The Evaporative Cooling segment produces and sells evaporative coolers from the Company’s wholly-owned subsidiary, PMI of Phoenix, Arizona. Sales of these two segments are nationwide, but are concentrated in the southwestern United States. Concrete, aggregates and construction supplies are offered from numerous locations along the Southern portion of the Front Range of Colorado operated by the Company’s wholly-owned subsidiaries collectively referred to as TMC. Rocky Mountain Ready Mix Concrete, Inc. of Denver, formerly included in the CACS segment, was sold on July 17, 2009 and is not included in the segment information presented in the table below but rather has been reported as a discontinued operation. The Door segment sells hollow metal doors, door frames and related hardware, wood doors, lavatory fixtures and electronic access and security systems from the Company’s wholly-owned subsidiary, MDHI, which operates out of facilities in Pueblo and Colorado Springs, Colorado. Sales of these latter two segments are highly concentrated in the Southern Front Range area in Colorado although door sales are also made throughout the United States.

The Company evaluates the performance of its segments and allocates resources to them based on a number of criteria including operating income, return on investment and other strategic objectives. Operating income is determined by deducting operating expenses from all revenues. In computing operating income, none of the following has been added or deducted: unallocated corporate expenses, interest, other income or loss or income taxes.

In addition to the above reporting segments, an “Unallocated Corporate” classification is used to report the unallocated expenses of the corporate office which provides treasury, insurance and tax services as well as strategic business planning and general management services. Expenses related to the corporate information technology group are allocated to all locations, including the corporate office. An “Other” classification is used to report a real estate operation and the expenses of WEI. WEI is a wholly owned subsidiary of WFC which was set up in anticipation of distributing a product that was being developed by a third party. The expenses incurred were associated with the subsidiary’s sole employee and miscellaneous related expenses. Development of the product has ceased and the sole employee was terminated in February 2013.

The following table presents information about reported segments for the fiscal years 2012 and 2011 along with the items necessary to reconcile the segment information to the totals reported in the financial statements (amounts in thousands):

	Construction Products Industry								HVAC Industry
	Concrete, Aggregates & Construction Supplies			Doors		Combined Construction Products			Heating and Cooling		Evaporative Cooling		Combined HVAC		Unallocated Corporate (a)			Other (b)			Total
2012
Revenues from external customers	$	40,231		$	12,690	$	52,921		$	34,215	$	25,734	$	59,949	$	14		$	344		$	113,228
Depreciation, depletion and amortization	2,736			138		2,874			369		326		695		58			—			3,627
Operating (loss) income	(4,991		)	527		(4,464		)	1,736		2,129		3,865		(2,803		)	(322		)	(3,724		)
Segment assets	31,651			5,767		37,418			17,054		12,250		29,304		3,506			1,006			71,234
Capital expenditures	921			28		949			417		458		875		9			—			1,833

	Construction Products Industry								HVAC Industry
	Concrete, Aggregates & Construction Supplies			Doors		Combined Construction Products			Heating and Cooling		Evaporative Cooling		Combined HVAC		Unallocated Corporate (a)			Other (b)			Total
2011
Revenues from external customers	$	31,714		$	12,330	$	44,044		$	37,480	$	25,324	$	62,804	$	14		$	344		$	107,206
Depreciation, depletion and amortization	3,239			140		3,379			379		379		758		56			—			4,193
Operating (loss) income	(4,975		)	553		(4,422		)	2,730		2,212		4,942		(2,582		)	(226		)	(2,288		)
Segment assets	32,289			5,827		38,116			19,600		11,967		31,567		5,106			1,082			75,871
Capital expenditures	991			62		1,053			234		188		422		17			—			1,492

(a) Includes unallocated corporate office expenses and assets which consist primarily of cash and cash equivalents, prepaid expenses, property, plant and equipment and at December 31, 2011, a $4,340,000 cash deposit with the Company’s insurer to secure the self-insured portion of claims under the Company’s casualty insurance program. This deposit was replaced by a Letter of Credit during 2012.

(b) Includes a real estate operation and WEI discussed in Note 1.

There are no differences in the basis of segmentation or in the basis of measurement of segment profit or loss from the last annual report.