INDUSTRY SEGMENT INFORMATION

6 Months Ended

Jul. 04, 2015

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 within each of the 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 of 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.

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 six-month and three-month periods ended July 4, 2015 and June 28, 2014 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, Aggregates & Construction Supplies			Doors		Combined Construction Products			Heating and Cooling			Evaporative Cooling		Combined HVAC Products		Unallocated Corporate			Total
2015
Six Months ended July 4, 2015
Revenues from external customers	$	24,655		$	8,869	$	33,524		$	15,020		$	16,998	$	32,018	$	8		$	65,550
Depreciation, depletion and amortization	677			63		740			285			246		531		26			1,297
Operating (loss) income	(856		)	794		(62		)	302			1,696		1,998		(1,524		)	412
Segment assets	31,931			7,111		39,042			17,696			12,733		30,429		3,413			72,884
Capital expenditures (b)	178			32		210			209			101		310		—			520
Quarter ended July 4, 2015
Revenues from external customers	$	14,090		$	4,681	$	18,771		$	5,874		$	10,216	$	16,090	$	4		$	34,865
Depreciation, depletion and amortization	340			32		372			143			123		266		13			651
Operating (loss) income	(128		)	456		328			(195		)	1,245		1,050		(747		)	631
Segment assets	31,931			7,111		39,042			17,696			12,733		30,429		3,413			72,884
Capital expenditures (b)	178			32		210			149			68		217		—			427

	Construction Products								HVAC Products
	Concrete, Aggregates & Construction Supplies			Doors		Combined Construction Products			Heating and Cooling			Evaporative Cooling		Combined HVAC Products		Unallocated Corporate			Total
2014
Six Months ended June 28, 2014
Revenues from external customers	$	27,341		$	8,421	$	35,762		$	12,618		$	15,804	$	28,422	$	7		$	64,191
Depreciation, depletion and amortization	920			71		991			257			209		466		24			1,481
Operating (loss) income	(1,358		)	936		(422		)	(399		)	1,649		1,250		(1,479		)	(651		)
Segment assets (a)	30,800			6,518		37,318			17,762			13,290		31,052		3,431			71,801
Capital expenditures (b)	1,225			35		1,260			111			134		245		—			1,505
Quarter ended June 28, 2014
Revenues from external customers	$	17,023		$	4,525	$	21,548		$	5,694		$	10,121	$	15,815	$	4		$	37,367
Depreciation, depletion and amortization	464			35		499			128			104		232		12			743
Operating income (loss)	225			541		766			(369		)	1,386		1,017		(749		)	1,034
Segment assets (a)	30,800			6,518		37,318			17,762			13,290		31,052		3,431			71,801
Capital expenditures (b)	602			1		603			55			40		95		—			698

(a) Segment assets are as of January 3, 2015.

(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.