INDUSTRY SEGMENT INFORMATION

3 Months Ended

Apr. 02, 2016

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 primarily 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 primarily 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 and wood doors, door frames and related hardware, 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 three-month periods ended April 2, 2016 and April 4, 2015 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 &				Combined		Heating				Combined
	Construction				Construction		and		Evaporative		HVAC		Unallocated
	Supplies		Doors		Products		Cooling		Cooling		Products		Corporate		Total
Three Months ended April 2, 2016
Revenues from external customers	$	12,199	$	3,855	$	16,054	$	11,150	$	7,020	$	18,170	$	4	$	34,228
Depreciation, depletion and amortization		347		31		378		138		119		257		4		639
Operating (loss) income		(194)		310		116		1,034		453		1,487		(751)		852
Segment assets		31,419		6,834		38,253		18,959		16,002		34,961		2,800		76,014
Capital expenditures		919		22		941		117		24		141		—		1,082

	Construction Products Industry						HVAC Industry
	Concrete,
	Aggregates &				Combined		Heating				Combined		Unallocated
	Construction				Construction		and		Evaporative		HVAC		Corporate
	Supplies		Doors		Products		Cooling		Cooling		Products		(a)		Total
Three Months ended April 4, 2015
Revenues from external customers	$	10,565	$	4,188	$	14,753	$	9,146	$	6,782	$	15,928	$	4	$	30,685
Depreciation, depletion and amortization		337		31		368		142		123		265		13		646
Operating (loss) income		(728)		338		(390)		497		451		948		(777)		(219)
Segment assets (a)		31,791		6,471		38,262		22,628		12,730		35,358		2,135		75,755
Capital expenditures (b)		—		1		1		59		33		92		—		93

(a) Segment assets are as of January 2, 2016.

(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.