Business Segments

9 Months Ended

Sep. 29, 2012

Business Segments

Business Segments

7.Business Segments

Our operations consist of two reportable segments: snack products and frozen products.  The snack products segment produces potato chips, potato crisps, potato skins, sheeted dough snacks, pellet snacks, kettle chips, and extruded product for sale primarily to snack food distributors and retailers.  This segment includes a limited number of snack food products purchased and sold through our local distribution network in Arizona.  The frozen products segment produces frozen fruit products, such as berries and smoothies, for sale primarily to club stores, groceries and mass merchandisers.  Our reportable segments offer different products and services.  The majority of our revenues are attributable to external customers in the United States.  We sell to external customers internationally, however the revenues attributable to those customers are immaterial.  All of our assets are located in the United States.

The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies (Note 1).  We do not allocate assets, selling, general and administrative expenses, income taxes or other income and expense to segments.

	Snack  Products		Frozen  Products		Consolidated
Quarter ended September 29, 2012
Net revenues from external customers	$	23,800,699	$	22,800,633	$	46,601,332
Depreciation and amortization included in segment gross profit	507,223		256,857		764,080
Segment gross profit	4,148,259		5,323,044		9,471,303
Goodwill	5,986,252		5,629,973		11,616,225
Quarter ended September 24, 2011
Net revenues from external customers	$	23,473,328	$	14,045,006	$	37,518,334
Depreciation and amortization included in segment gross profit	509,634		217,878		727,512
Segment gross profit	4,333,033		2,073,556		6,406,589
Goodwill	5,986,252		5,629,973		11,616,225
Nine months ended September 29, 2012
Net revenues from external customers	$	72,831,257	$	68,805,871	$	141,637,128
Depreciation and amortization included in segment gross profit	1,497,814		689,839		2,187,653
Segment gross profit	14,636,609		13,383,124		28,019,733
Goodwill	5,986,252		5,629,973		11,616,225
Nine months ended September 24, 2011
Net revenues from external customers	$	70,136,637	$	47,631,715	$	117,768,352
Depreciation and amortization included in segment gross profit	1,364,667		635,647		2,000,314
Segment gross profit	13,945,502		8,489,135		22,434,637
Goodwill	5,986,252		5,629,973		11,616,225

The following table reconciles reportable segment gross profit to our consolidated income (loss) before income tax provision for the quarters and nine months ended September 29, 2012 and September 24, 2011:

	Quarter Ended					Nine Months Ended
	September 29,  2012		September 24,  2011			September 29,  2012		September 24,  2011
Segment gross profit	$	9,471,303	$	6,406,589		$	28,019,733	$	22,434,637
Unallocated amounts:
Selling, general and administrative expenses	6,534,955		6,615,271			19,414,315		18,669,356
Interest expense, net	178,905		227,316			613,129		645,047
Income (loss) before income tax provision	$	2,757,443	$	(435,998	)	$	7,992,289	$	3,120,234