Segment Reporting

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

The Company has two reportable segments; the recreational vehicle products segment (the “RV Segment”) and the manufactured housing products segment (the “MH Segment”). Intersegment sales are insignificant.

The RV Segment, which accounted for 92 and 90 percent of consolidated net sales for the nine month periods ended September 30, 2015 and 2014, respectively, manufactures or distributes a variety of products used in the production of RVs, including:

●Steel chassis for towable RVs	●Chassis components
●Axles and suspension solutions for towable RVs	●Furniture and mattresses
●Slide-out mechanisms and solutions	●Entry, luggage, patio and ramp doors
●Thermoformed bath, kitchen and other products	●Electric and manual entry steps

●Windows	●Awnings and slide toppers
●Manual, electric and hydraulic stabilizer and    leveling systems	●Other accessories and electronic components
●LED televisions and sound systems, navigation   systems and wireless backup cameras

The Company also supplies certain of these products to the RV aftermarket and to adjacent industries, including buses and trailers used to haul boats, livestock, equipment and other cargo, and pontoon boats. Approximately 74 percent of the Company’s RV Segment net sales for the twelve months ended September 30, 2015 were of products to original equipment manufacturers (“OEMs”) of travel trailer and fifth-wheel RVs.

The MH Segment, which accounted for 8 and 10 percent of consolidated net sales for the nine month periods ended September 30, 2015 and 2014, respectively, manufactures or distributes a variety of products used in the production of manufactured homes, including:

●Vinyl and aluminum windows	●Aluminum and vinyl patio doors
●Thermoformed bath and kitchen products	●Steel chassis and related components
●Steel and fiberglass entry doors	●Axles

The Company also supplies certain of these products to the manufactured housing aftermarket and to adjacent industries, including modular housing and mobile office units. Certain of the Company’s MH Segment customers manufacture both manufactured homes and modular homes, and certain of the products manufactured by the Company are suitable for both types of homes. As a result, the Company is not always able to determine in which type of home its products are installed.

Decisions concerning the allocation of the Company’s resources are made by the Company’s key executives, with oversight by the Board of Directors. This group evaluates the performance of each segment based upon segment operating profit or loss, generally defined as income or loss before interest and income taxes. Decisions concerning the allocation of resources are also based on each segment’s utilization of assets. Management of debt is a corporate function. The accounting policies of the RV and MH Segments are the same as those described in Note 1 of the Notes to Consolidated Financial Statements of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

Information relating to segments follows for the:
	Nine Months Ended   September 30,				Three Months Ended   September 30,
(In thousands)	2015		2014		2015		2014
Net sales:
RV Segment:
RV OEMs:
Travel trailers and fifth-wheels	$	722,157	$	643,629	$	216,093	$	196,213
Motorhomes	64,085		51,664		23,539		21,607
RV aftermarket	64,896		32,777		26,203		16,015
Adjacent industries	128,169		84,396		47,295		29,769
Total RV Segment net sales	979,307		812,466		313,130		263,604
MH Segment:
Manufactured housing OEMs	61,144		58,550		22,786		21,269
Manufactured housing aftermarket	12,010		10,849		3,880		3,677
Adjacent industries	16,377		19,566		5,500		5,721
Total MH Segment net sales	89,531		88,965		32,166		30,667
Total net sales	$	1,068,838	$	901,431	$	345,296	$	294,271

	Nine Months Ended   September 30,					Three Months Ended   September 30,
(In thousands)	2015		2014			2015		2014
Operating profit:
RV Segment	$	82,961	$	72,048		$	23,720	$	20,287
MH Segment	9,682		8,172			3,451		2,784
Total segment operating profit	92,643		80,220			27,171		23,071
Sale of extrusion assets	—		(1,954		)	—		—
Total operating profit	$	92,643	$	78,266		$	27,171	$	23,071

In the third quarter of 2015, the Company refined its methodology for categorizing sales within the RV Segment. This change improves accuracy, but has no impact on total RV Segment net sales or trends. Prior periods have been reclassified to conform to this presentation.

Potential Future Changes to Reporting Segments

Over the past several years, largely due to the growth the Company has experienced in its RV Segment, the MH Segment is now a smaller part of the Company. MH Segment net sales were 8 percent of consolidated net sales for the first nine months of 2015. In addition, the Company has recently increased its focus on the significant opportunities in the RV aftermarket, which is currently included in the RV Segment. While there were no changes to the Company’s segment reporting through September 30, 2015, the Company will continue to evaluate the information provided to its Chief Operating Decision Maker (“CODM”), and assess the impact of any changes to its reporting structures that will reflect how its CODM will assess the performance of the Company’s operating segments and make decisions about resource allocations which impact the operating segments the Company reports.