Segment Reporting

3 Months Ended

Mar. 31, 2016

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 93 percent of consolidated net sales for each of the three month periods ended March 31, 2016 and 2015, respectively, manufactures or distributes a variety of products assembled in the production of RVs. The Company also supplies certain of these products to the RV aftermarket and to adjacent industries, including buses, trailers used to haul boats, livestock, equipment and other cargo, and pontoon boats. Approximately 72 percent of the Company’s RV Segment net sales for the twelve months ended March 31, 2016 were of products to original equipment manufacturers (“OEMs”) of travel trailer and fifth-wheel RVs.

The MH Segment, which accounted for seven percent of consolidated net sales for each of the three month periods ended March 31, 2016 and 2015, respectively, manufactures or distributes a variety of products assembled in the production of manufactured homes. 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, 2015.

Information relating to segments follows for the:
	Three Months Ended   March 31,
(In thousands)	2016		2015
Net sales:
RV Segment:
RV OEMs:
Travel trailers and fifth-wheels	$	283,369	$	259,695
Motorhomes	28,523		22,309
RV aftermarket	24,968		17,209
Adjacent industries	54,819		35,358
Total RV Segment net sales	391,679		334,571
MH Segment:
Manufactured housing OEMs	21,229		17,823
Manufactured housing aftermarket	4,649		3,829
Adjacent industries	5,241		5,234
Total MH Segment net sales	31,119		26,886
Total net sales	$	422,798	$	361,457
Operating profit:
RV Segment	$	51,281	$	29,133
MH Segment	4,447		2,705
Total operating profit	$	55,728	$	31,838

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.

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 seven percent of consolidated net sales for the first three months of 2016. 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. In response to the changes, subsequent to March 31, 2016, the Company made changes to its internal reporting structure, reflecting a change in how its Chief Operating Decision Maker will assess the performance of the Company’s operating results and make decisions about resource allocations. The Company is in the process of evaluating changes to its reportable operating segments as a result of this change. The revised segments are anticipated to be effective with the Company’s Quarterly Report on Form 10-Q for the second quarter of 2016.