INDUSTRY SEGMENT INFORMATION

9 Months Ended

Oct. 03, 2015

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.

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 nine-month and three-month periods ended October 3, 2015 and September 27, 2014 along with the items necessary to reconcile the segment information to the totals reported in the financial statements (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			Total
2015
Nine Months ended October 3, 2015
Revenues from external customers	$	41,414		$	13,140	$	54,554	$	24,493	$	22,656	$	47,149	$	12		$	101,715
Depreciation, depletion and amortization	1,007			94		1,101		427		369		796		40			1,937
Operating (loss) income	(170		)	1,068		898		994		1,850		2,844		(2,365		)	1,377
Segment assets	33,814			7,031		40,845		22,286		11,864		34,150		2,635			77,630
Capital expenditures (b)	825			32		857		355		167		522		—			1,379
Three Months ended October 3, 2015
Revenues from external customers	$	16,759		$	4,271	$	21,030	$	9,473	$	5,658	$	15,131	$	4		$	36,165
Depreciation, depletion and amortization	330			31		361		142		123		265		14			640
Operating income (loss)	686			274		960		692		154		846		(841		)	965
Segment assets	33,814			7,031		40,845		22,286		11,864		34,150		2,635			77,630
Capital expenditures (b)	647			—		647		146		66		212		—			859

	Construction Products								HVAC Products
	Concrete, Aggregates & Construction Supplies			Doors		Combined Construction Products			Heating and Cooling		Evaporative Cooling		Combined HVAC Products		Unallocated Corporate			Total
2014
Nine Months ended September 27, 2014
Revenues from external customers	$	43,526		$	12,439	$	55,965		$	21,091	$	21,490	$	42,581	$	11		$	98,557
Depreciation, depletion and amortization	1,403			103		1,506			387		314		701		38			2,245
Operating (loss) income	(7,734		)	1,087		(6,647		)	27		1,746		1,773		(2,294		)	(7,168		)
Segment assets (a)	30,800			6,518		37,318			17,762		13,290		31,052		3,431			71,801
Capital expenditures (b)	1,258			37		1,295			163		179		342		—			1,637
Three Months ended September 27, 2014
Revenues from external customers	$	16,185		$	4,018	$	20,203		$	8,473	$	5,686	$	14,159	$	4		$	34,366
Depreciation, depletion and amortization	483			32		515			130		105		235		14			764
Operating (loss) income	(6,376		)	151		(6,225		)	426		97		523		(815		)	(6,517		)
Segment assets (a)	30,800			6,518		37,318			17,762		13,290		31,052		3,431			71,801
Capital expenditures (b)	33			2		35			52		45		97		—			132

(a) Segment assets are as of January 3, 2015

(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.