Segment Information

The Company manages its business and serves its customers through reportable segments differentiated by product type, end market, and geography. In the first quarter of 2012, the Company completed a reorganization of its U.S. operational structure. The reorganization included the consolidation of all U.S. operating companies into one legal entity and realigned reporting and management responsibilities based upon the Company's residential and commercial product offerings. As a result of the restructuring, the Company has identified two U.S. reporting segments; U.S. Residential Products and U.S. Commercial Products. Prior to this restructuring, the Company's reporting segments consisted of U.S. Residential Building Products, U.S. Non-Residential Building Products and U.S. RV and Specialty Building Products. The Company's 2011 results have been adjusted to reflect the change in reportable segments. These organizational changes did not impact the Company's European reportable segments.

The Company's four reportable segments are described below:

U.S. Residential Products—The U.S. Residential Products segment utilizes aluminum, steel, copper and vinyl to produce residential roof drainage products, including preformed gutters, downspouts, elbows, soffit, drip edge, fascia, flashing, snow guards and related accessories. These products are used primarily for the repair, replacement or enhancement of residential roof drainage systems. The Company sells these products to home improvement retailers, lumber yards, distributors and contractors from manufacturing and distribution facilities throughout North America. The Company also produces specialty made-to-order vinyl replacement windows and aluminum patio and awning components sold primarily to home improvement contractors in the Western U.S.

U.S. Commercial Products—The U.S. Commercial Products segment utilizes various materials, including steel coil, aluminum coil and fiberglass to create various products with commercial applications, including roofing and siding panels, ridge caps, flashing, trim, soffit and other accessories as well as sidewall components, siding and other exterior components for the towable RV, cargo and manufactured housing markets. The Company sells these products to builders, contractors, lumber yards, home improvement retailers, OEMs, and RV manufacturers from manufacturing and distribution facilities located throughout the U.S. These products are used in the construction of a wide variety of small scale non-residential, agricultural and industrial building types on either wood or metal frames, manufactured homes, and towable RVs.

European Roll Coated Aluminum—The European Roll Coated Aluminum segment uses a roll coating process to apply paint to bare aluminum coil and, to a lesser extent, bare steel coil in order to produce specialty coated coil, which the Company also processes into specialty coated sheets and panels. The Company sells these products to building panel manufacturers, contractors and UK “holiday home,” RV and transportation OEMs throughout Europe and in parts of Asia. The Company’s customers use its specialty coated metal products to manufacture, among other things, RV sidewalls, commercial roofing panels, interior ceiling panels, and liner panels for shipping containers. The Company produces and distributes these roll coated products from facilities located in the Netherlands and the UK.

European Engineered Products—The European Engineered Products segment utilizes aluminum and vinyl extrusions to produce residential windows, doors and shower enclosures. These products are sold to home improvement retailers, distributors and factory‑built “holiday home” builders in the UK. The Company also produces windows used in the operator compartments of heavy equipment, components sold to suppliers to automotive OEMs in Western Europe and RV doors. The Company produces and distributes these engineered products from facilities in France and the UK and has developed extensive in-house manufacturing capabilities, including powder coating, glass cutting, anodizing and glass toughening.

The Company evaluates the performance of its segments and allocates resources to them based primarily on segment income or (loss) from operations. Expenses, income and assets that are not segment specific relate to holding company and business development activities conducted for the overall benefit of the Company, and accordingly, are not attributable to the Company’s segments.

Beginning in the third quarter of 2012, the Company has allocated depreciation expense related to its North American ERP system to its U.S. Residential and U.S. Commercial Products Segments. In prior quarters, depreciation expense related to the ERP system was recorded at the Company's Corporate Headquarters and included in other non-allocated expenses. Expenses related to the North American ERP system were previously allocated to its North American segments through a corporate charge, and therefore, were included in earnings (loss) from operations for the appropriate segment. Depreciation and amortization expense for the U.S. Residential Segment after allocation of ERP depreciation totaled$2,867 thousand, $2,872 thousand, and $2,926 thousand for the 1st, 2nd, and 3rd quarters of 2012 and $2,966 thousand, $3,062 thousand, and $2,976 thousand for the 1st, 2nd, and 3rd quarters of 2011, respectfully. Depreciation and amortization expense for the U.S. Commercial Segment after allocation of ERP depreciation totaled $2,713 thousand, $2,690 thousand, and $2,686 thousand for the 1st, 2nd, and 3rd quarters of 2012 and $2,774 thousand, $2,733 thousand, and $2,717 thousand for the 1st, 2nd, and 3rd quarters of 2011, respectfully. All amounts in the following tables include the adjustments described above.

The following table presents information about reported segments for the three months ended September 28, 2012:



	U.S. Residential Products		U.S. Commercial Products		European Roll Coated Aluminum		European Engineered Products			Other Non- Allocated			Eliminations			Consolidated
Three months ended September 28, 2012	(in thousands)
Net sales:
Third party	$	77,469	$	79,334	$	48,540	$	13,830		$	—		$	—		$	219,173
Intersegment	191		33		176		—			—			(400		)	—
Total net sales	$	77,660	$	79,367	$	48,716	$	13,830		$	—		$	(400	)	$	219,173
Income (loss) from operations	$	7,475	$	1,707	$	2,095	$	(1,461	)	$	(3,206	)	$	—		$	6,610
Depreciation and amortization	$	2,926	$	2,686	$	2,299	$	615		$	98		$	—		$	8,624
Capital expenditures	$	345	$	329	$	493	$	89		$	683		$	—		$	1,939

The following table presents information about reported segments for the three months ended September 30, 2011:



	U.S. Residential Products		U.S. Commercial Products			European Roll Coated Aluminum		European Engineered Products			Other Non- Allocated			Eliminations			Consolidated
Three months ended September 30, 2011	(in thousands)
Net sales:
Third party	$	90,407	$	79,766		$	57,410	$	19,197		$	—		$	—		$	246,780
Intersegment	318		137			98		—			—			(553		)	—
Total net sales	$	90,725	$	79,903		$	57,508	$	19,197		$	—		$	(553	)	$	246,780
Income (loss) from operations	$	7,889	$	(2,998	)	$	1,953	$	(1,032	)	$	(2,036	)	$	—		$	3,776
Depreciation and amortization	$	2,976	$	2,717		$	2,730	$	812		$	83		$	—		$	9,318
Capital expenditures	$	263	$	975		$	626	$	203		$	325		$	—		$	2,392

The following table presents information about reported segments for the nine months ended September 28, 2012:



	U.S. Residential Products		U.S. Commercial Products		European Roll Coated Aluminum		European Engineered Products			Other Non- Allocated			Eliminations			Consolidated
Nine months ended September 28, 2012	(in thousands)
Net sales:
Third party	$	214,665	$	222,267	$	152,012	$	52,704		$	—		$	—		$	641,648
Intersegment	774		162		441		—			—			(1,377		)	—
Total net sales	$	215,439	$	222,429	$	152,453	$	52,704		$	—		$	(1,377	)	$	641,648
Income (loss) from operations	$	18,261	$	165	$	7,979	$	(2,304	)	$	(9,712	)	$	—		$	14,389
Depreciation and amortization	$	8,665	$	8,089	$	7,054	$	1,868		$	262		$	—		$	25,938
Capital expenditures	$	1,085	$	724	$	1,243	$	541		$	993		$	—		$	4,586

The following table presents information about reported segments for the nine months ended September 30, 2011:



	U.S. Residential Products		U.S. Commercial Products			European Roll Coated Aluminum		European Engineered Products			Other Non- Allocated			Eliminations			Consolidated
Nine months ended September 30, 2011	(in thousands)
Net sales:
Third party	$	233,519	$	224,661		$	190,399	$	65,438		$	—		$	—		$	714,017
Intersegment	833		207			494		—			—			(1,534		)	—
Total net sales	$	234,352	$	224,868		$	190,893	$	65,438		$	—		$	(1,534	)	$	714,017
Income (loss) from operations	$	18,021	$	(3,035	)	$	11,390	$	(489	)	$	(12,730	)	$	—		$	13,157
Depreciation and amortization	$	9,004	$	8,224		$	8,165	$	2,440		$	231		$	—		$	28,064
Capital expenditures	$	698	$	3,010		$	1,389	$	1,385		$	1,900		$	—		$	8,382

It is impractical for the Company to provide revenues from external customers by groups of similar products. Accordingly, the following table reflects revenues from external customers by markets for the periods indicated.



		Three months ended				Nine months ended
Customers/Markets	Primary Products	September 28, 2012		September 30, 2011		September 28, 2012		September 30, 2011
		(in thousands)
Original Equipment Manufacturers (“OEMs”)	Painted aluminum sheet and coil; fabricated painted aluminum, laminated and fiberglass panels; windows and roofing and composite building panels	$	43,457	$	54,262	$	161,946	$	187,215
Home Improvement Retailers	Rain carrying systems, roofing accessories, steel roofing and siding, windows, doors and shower enclosures	51,806		62,537		139,740		155,842
Industrial and Architectural Contractors	Standing seam panels; siding and roofing accessories; and composite building panels	40,321		42,078		110,908		134,821
Rural Contractors	Steel and aluminum roofing and siding	43,116		41,882		107,412		101,934
Distributors	Metal coils, rain carrying systems and roofing accessories	23,917		26,788		68,807		75,283
Manufactured Housing	Steel siding and trim components	6,992		8,884		25,245		29,106
Home Improvement Contractors	Vinyl replacement windows; metal coils, rain carrying systems; metal roofing and insulated roofing panels; shower, patio and entrance doors; and awnings	9,564		10,349		27,590		29,816
		$	219,173	$	246,780	$	641,648	$	714,017