INDUSTRY SEGMENT INFORMATION

3 Months Ended

Mar. 29, 2014

INDUSTRY SEGMENT INFORMATION

INDUSTRY SEGMENT INFORMATION

7. The Company operates primarily in two industry groups, Heating, Ventilation and Air Conditioning (HVAC) and Construction Products. The Company has identified two reportable segments in each of the two industry groups: 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. (WFC) of Colton, California. The Evaporative Cooling segment produces and sells evaporative coolers from the Company’s wholly-owned subsidiary, Phoenix Manufacturing, Inc. (PMI) of Phoenix, Arizona. 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 Castle Concrete Company and Transit Mix Concrete Co., of Colorado Springs and Transit Mix of Pueblo, Inc. of Pueblo, Colorado (the three companies collectively are referred to as “TMC”). The Door segment sells hollow metal doors, door frames and related hardware, wood doors, lavatory fixtures and electronic access and security systems from the Company’s wholly-owned subsidiary, McKinney Door and Hardware, Inc. (MDHI), which operates out of facilities in Pueblo and Colorado Springs, Colorado. 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 expenses of Williams EcoLogix, Inc. (WEI). WEI is a wholly owned subsidiary of WFC which was set up in anticipation of distributing a product that was being developed by a third party. The expenses incurred were associated with the subsidiary’s sole employee and miscellaneous related expenses. Development of the product has ceased and the sole employee was terminated in February 2013.

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 29, 2014 and March 30, 2013 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
	Concrete,
Quarter ended March 29, 2014	Aggregates & Construction Supplies			Doors		Combined Construction Products			Heating and Cooling			Evaporative Cooling		Combined HVAC Products		Unallocated Corporate			Other		Total
Revenues from external customers	$	10,318		$	3,896	$	14,214		$	6,924		$	5,683	$	12,607	$	3		$	—	$	26,824
Depreciation, depletion and amortization	456			36		492			129			105		234		12			—		738
Operating (loss) income	(1,583		)	395		(1,188		)	(30		)	263		233		(730		)	—		(1,685		)
Segment assets	31,980			6,469		38,449			15,253			16,571		31,824		2,487			133		72,893
Capital expenditures	623			34		657			56			94		150		—			—		807

	Construction Products								HVAC Products
	Concrete,
Quarter ended March 30, 2013	Aggregates & Construction Supplies			Doors		Combined Construction Products			Heating and Cooling		Evaporative Cooling		Combined HVAC Products		Unallocated Corporate			Other			Total
Revenues from external customers	$	7,817		$	3,725	$	11,542		$	9,559	$	5,081	$	14,640	$	2		$	29		$	26,213
Depreciation, depletion and amortization	578			31		609			103		90		193		13			—			815
Operating (loss) income	(1,948		)	116		(1,832		)	1,295		240		1,535		(710		)	(126		)	(1,133		)
Segment assets (a)	26,471			6,837		33,308			18,748		12,118		30,866		7,654			134			71,962
Capital expenditures (b)	96			36		132			66		206		272		15			—			419

(a)       Segment assets are as of December 28, 2013.

(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.