DISCONTINUED OPERATIONS.

12 Months Ended

Dec. 31, 2016

DISCONTINUED OPERATIONS.

DISCONTINUED OPERATIONS.

2.            DISCONTINUED OPERATIONS.

On December 31, 2013, the Company announced its intention to divest its shuttle bus business. The progressively competitive environment in the bus industry led to intensified price cutting, making it more difficult to sustain profitability.  Shuttle bus products represented less than 13% of the Company’s consolidated sales for the year ended December 28, 2013, but had a material adverse effect on reported financial results. On February 28, 2014, the Company entered into an Asset Purchase Agreement (the “Agreement”) for the sale of certain assets of the Company’s shuttle bus division.

The Company continued to operate the business for a period of time following the date of the Agreement to finish certain orders.  The transaction closed on March 28, 2014. Net proceeds from the sale were $3.9 million and net assets of the shuttle bus operations sold consisted of inventory of $4.1 million, machinery and equipment of $0.2 million, reduced by a warranty obligation of $0.5 million, resulting in a gain of $0.1 million, net of tax, recorded during the three-month period ended March 29, 2014. The Agreement contains a five-year period during which the Company will not compete in the shuttle bus business, with the exception that the non-competition does not apply to the Company’s trolley division.

The results for the shuttle bus division are classified as discontinued operations as follows:

	2014
Net sales	$	6,549,209
Pretax loss from operations	(2,306,655		)
Net loss	(1,567,423		)