INDUSTRY SEGMENT INFORMATION

6 Months Ended

Jun. 29, 2013

INDUSTRY SEGMENT INFORMATION

INDUSTRY SEGMENT INFORMATION

7. The Company operates primarily in two industry groups, Heating, Ventilation and Air Conditioning (HVAC) and Construction Products. The Company has identified two reportable segments within each of the industry groups: the Heating and Cooling segment and the Evaporative Cooling segment in the HVAC industry group and the CACS segment 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, Williams Furnace Co. (WFC) of Colton, California. The Evaporative Cooling segment produces and sells evaporative coolers from the Company’s wholly-owned subsidiary, Phoenix Manufacturing, Inc. (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 Front Range of Colorado operated by the Company’s wholly-owned subsidiaries Castle Concrete Company and Transit Mix Concrete Co., of Colorado Springs and Transit Mix of Pueblo, Inc. of Pueblo, Colorado (the three companies collectively are referred to as “TMC”). 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, McKinney Door and Hardware, Inc. (MDHI) which operates out of facilities in Pueblo and Colorado Springs, Colorado. Sales of these two segments are highly concentrated in the Southern Front Range of Colorado although door sales are also made throughout the United States.

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 activity of Williams EcoLogix, Inc. (WEI). WEI is a wholly-owned subsidiary of Continental Materials Corporation which was set up in anticipation of distributing a product that was being developed by a third party. See Note 13, Subsequent Event, for further discussion.

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.

The following table presents information about reported segments for the six-month and three-month periods ended June 29, 2013 and June 30, 2012 along with the items necessary to reconcile the segment information to the totals reported in the financial statements (dollar amounts in thousands):

	Construction Products								HVAC Products
	Concrete, Aggregates & Construction Supplies			Doors		Combined Construction Products			Heating and Cooling			Evaporative Cooling		Combined HVAC Products		Unallocated Corporate			Other			Total
2013
Six Months ended June 29, 2013
Revenues from external customers	$	19,594		$	8,126	$	27,720		$	15,089		$	16,226	$	31,315	$	6		$	29		$	59,070
Depreciation, depletion and amortization	1,185			62		1,247			206			179		385		27			—			1,659
Operating (loss) income	(2,122		)	610		(1,512		)	1,214			1,843		3,057		(1,530		)	(774		)	(759		)
Segment assets	31,126			6,317		37,443			15,440			12,580		28,020		5,046			625			71,134
Capital expenditures (b)	147			39		186			384			240		624		6			—			816
Quarter ended June 29, 2013
Revenues from external customers	$	11,777		$	4,401	$	16,178		$	5,530		$	11,145	$	16,675	$	4		$	—		$	32,857
Depreciation, depletion and amortization	607			31		638			103			89		192		14			—			844
Operating (loss) income	(174		)	494		320			(80		)	1,602		1,522		(806		)	(662		)	374
Segment assets	31,126			6,317		37,443			15,440			12,580		28,020		5,046			625			71,134
Capital expenditures (b)	51			3		54			318			34		352		(9		)	—			397

	Construction Products								HVAC Products
	Concrete, Aggregates & Construction Supplies			Doors		Combined Construction Products			Heating and Cooling			Evaporative Cooling		Combined HVAC Products		Unallocated Corporate			Other			Total
2012
Six Months ended June 30, 2012
Revenues from external customers	$	16,673		$	6,452	$	23,125		$	14,873		$	15,966	$	30,839	$	7		$	172		$	54,143
Depreciation, depletion and amortization	1,590			67		1,657			208			185		393		63			—			2,113
Operating (loss) income	(3,021		)	339		(2,682		)	208			1,707		1,915		(1,256		)	(141		)	(2,164		)
Segment assets (a)	31,629			5,767		37,396			17,054			12,250		29,304		3,839			1,006			71,545
Capital expenditures (b)	197			17		214			195			219		414		6			—			634
Quarter ended June 30, 2012
Revenues from external customers	$	9,930		$	3,522	$	13,452		$	6,007		$	10,198	$	16,205	$	4		$	86		$	29,747
Depreciation, depletion and amortization	785			34		819			108			87		195		31			—			1,045
Operating (loss) income	(1,256		)	281		(975		)	(291		)	1,338		1,047		(629		)	(72		)	(629		)
Segment assets (a)	31,629			5,767		37,396			17,054			12,250		29,304		3,839			1,006			71,545
Capital expenditures (b)	121			9		130			86			159		245		2			—			377

(a) Segment assets are as of December 29, 2012.

(b) Capital expenditures are presented on the accrual basis of accounting.

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 on Form 10-K.