INDUSTRY SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2012

INDUSTRY SEGMENT INFORMATION

INDUSTRY SEGMENT INFORMATION

7.The Company operates primarily in two industry groups, Heating, Ventilation and Air Conditioning (HVAC) and Construction Products. Within each of these two industry groups, the Company has identified two reportable segments: 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 produces and sells gas-fired wall furnaces, console heaters and fan coils from the Company’s wholly-owned subsidiary, Williams Furnace Co. of Colton, California (WFC). The Evaporative Cooling segment produces and sells evaporative coolers from the Company’s wholly-owned subsidiary, Phoenix Manufacturing, Inc. of Phoenix, Arizona (PMI). 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 collectively referred to as Transit Mix Concrete Co. (TMC). Doors are fabricated and sold along with the related hardware from Colorado Springs and Pueblo, Colorado through the Company’s wholly-owned subsidiary, McKinney Door and Hardware, Inc. of Pueblo, Colorado (MDHI). Sales of these two segments are highly concentrated in the Southern Front Range area in 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. An “Other” classification is used to report a real estate operation and the activity of the new business venture, Williams EcoLogix, Inc. The Company purchased the residence of and made a loan to an executive of one of the Company’s subsidiaries in connection with his relocation. The residence is classified as “Real estate held for resale — related party” on the condensed consolidated balance sheet. The residence and the loan receivable are included in the assets of the “Other” classification. The related party loan is secured by marketable securities and bears interest at 5%.

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 months ended March 31, 2012 and April 2, 2011 along with the items necessary to reconcile the segment information to the totals reported in the financial statements (amounts in thousands):

	Construction Products								HVAC Products
Quarter ended	Concrete, Aggregates & Construction					Combined Construction			Heating and		Evaporative		Combined HVAC		Unallocated
March 31, 2012	Supplies			Doors		Products			Cooling		Cooling		Products		Corporate			Other			Total
Revenues from external customers	$	6,743		$	2,930	$	9,673		$	8,866	$	5,768	$	14,634	$	3		$	86		$	24,396
Depreciation, depletion and amortization	805			33		838			100		98		198		32			—			1,068
Operating income (loss)	(1,765		)	59		(1,706		)	499		369		868		(627		)	(69		)	(1,534		)
Segment assets	29,994			5,888		35,882			16,124		14,658		30,782		3,484			1,142			71,290
Capital expenditures	76			8		84			109		60		169		4			—			257

	Construction Products								HVAC Products
	Concrete,
Quarter ended April 2, 2011	Aggregates & Construction Supplies			Doors		Combined Construction Products			Heating and Cooling		Evaporative Cooling		Combined HVAC Products		Unallocated Corporate			Other			Total
Revenues from external customers	$	7,354		$	3,113	$	10,467		$	8,395	$	5,817	$	14,212	$	3		$	86		$	24,768
Depreciation, depletion and amortization	825			33		858			105		113		218		16			—			1,092
Operating income (loss)	(1,675		)	200		(1,475		)	77		481		558		(687		)	(17		)	(1,621		)
Segment assets (a)	32,289			5,827		38,116			19,600		11,967		31,567		5,106			1,082			75,871
Capital expenditures (b)	197			13		210			26		85		111		5			—			326

(a)       Segment assets are as of December 31, 2011.

(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.