Segment Reporting

3 Months Ended

Mar. 31, 2019

SEGMENT REPORTING

The Company has two reportable segments, the OEM Segment and the Aftermarket Segment. Intersegment sales are insignificant.

The OEM Segment, which accounted for 90 percent and 92 percent of consolidated net sales for the three months ended March 31, 2019 and 2018, respectively, manufactures or distributes a broad array of engineered components for the leading OEMs in the recreation and industrial product markets, consisting of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment and other cargo; trucks; pontoon boats; trains; manufactured homes; and modular housing. Approximately 60 percent of the Company’s OEM Segment net sales for the three months ended March 31, 2019 were of components for travel trailer and fifth-wheel RVs.

The Aftermarket Segment, which accounted for ten percent and eight percent of consolidated net sales for the three months ended March 31, 2019 and 2018, respectively, supplies engineered components to the related aftermarket channels of the recreation and industrial product markets, primarily to retail dealers, wholesale distributors and service centers. The Aftermarket Segment also includes the sale of replacement glass and awnings to fulfill insurance claims.

Decisions concerning the allocation of the Company’s resources are made by the Company’s chief operating decision maker (“CODM”), with oversight by the Board of Directors. The CODM evaluates the performance of each segment based upon segment operating profit or loss, generally defined as income or loss before interest and income taxes. Decisions concerning the allocation of resources are also based on each segment’s utilization of assets. Management of debt is a corporate function. The accounting policies of the OEM and Aftermarket Segments are the same as those described in Note 2 of the Notes to Consolidated Financial Statements of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

The following table presents the Company’s revenues disaggregated by segment and geography based on the billing address of the Company’s customers:


	Three Months Ended March 31, 2019										Three Months Ended March 31, 2018
(In thousands)	U.S. (a)		Int’l (b)		Total		U.S. (a)		Int’l (b)		Total
OEM Segment:
RV OEMs:
Travel trailers and fifth-wheels	$	313,367	$	3,504	$	316,871	$	403,742	$	1,215	$	404,957
Motorhomes	31,921		13,079		45,000		43,406		9,509		52,915
Adjacent Industries OEMs	156,736		13,173		169,909		133,408		8,899		142,307
Total OEM Segment net sales	502,024		29,756		531,780		580,556		19,623		600,179
Aftermarket Segment:
Total Aftermarket Segment net sales	56,532		3,860		60,392		47,346		2,967		50,313
Total net sales	$	558,556	$	33,616	$	592,172	$	627,902	$	22,590	$	650,492

^(a)Net sales to customers in the United States of America

^(b)Net sales to customers in countries domiciled outside of the United States of America

The following table presents the Company’s operating profit by segment:


	Three Months Ended March 31,
(In thousands)	2019		2018
Operating profit:
OEM Segment	$	40,408	$	53,940
Aftermarket Segment	7,347		5,880
Total operating profit	$	47,755	$	59,820

The following table presents the Company’s revenue disaggregated by product:


	Three Months Ended March 31,
(In thousands)	2019		2018
OEM Segment:
Chassis, chassis parts and slide-out mechanisms	$	204,383	$	252,702
Windows and doors	151,919		149,520
Furniture and mattresses	91,357		105,518
Axles and suspension solutions	32,235		33,605
Other	51,886		58,834
Total OEM Segment net sales	531,780		600,179
Total Aftermarket Segment net sales	60,392		50,313
Total net sales	$	592,172	$	650,492