SEGMENTS AND RELATED INFORMATION

12 Months Ended

Dec. 31, 2011

SEGMENTS AND RELATED INFORMATION

13. SEGMENTS AND RELATED INFORMATION

a. Segment Reporting

Through the third quarter of 2011, the Company segregated its operations into two reportable segments: Manufacturing and Retail and Distribution. In the fourth quarter of 2011, resulting from the execution of Company’s strategic initiative to expand its customer base, diversify its product offerings and revenues and extend its market leadership, it began reporting three segments: Commercial Trailer Products, Diversified Products and Retail. The Commercial Trailer Products segment produces and sells new trailers to the Retail segment or to customers who purchase trailers directly from the Company or through independent dealers. The Diversified Products segment focuses on the Company’s commitment to expand its customer base, diversify its product offerings and revenues and extend its market leadership by leveraging its proprietary DuraPlate® panel technology, drawing on its core manufacturing expertise and making available products that are complementary to truck trailers and transportation equipment. The Retail segment includes the sale of new and used trailers, as well as the sale of after-market parts and service, through its retail branch network.

The Company manages its business in multiple operating segments. Because of the similar economic characteristics of these operations, including the nature of the products, the same or similar customers and similar production and distribution processes, those operations have been aggregated for segment reporting purposes. The accounting policies of the segments are the same as those described in the summary of significant accounting policies except that the Company evaluates segment performance based on income from operations. The Company has not allocated certain corporate related administrative costs, interest and income taxes included in the corporate and eliminations segment to the Company’s other reportable segment. The Company accounts for intersegment sales and transfers at cost plus a specified mark-up. Reportable segment information is as follows (in thousands):

	Commercial Trailer Products			Diversified Products			Retail			Corporate and Eliminations			Consolidated
2011
Net sales
External customers	$	1,010,131		$	52,048		$	125,065		$	—		$	1,187,244
Intersegment sales		61,163			54,432			—			(115,595	)	$	—
Total net sales	$	1,071,294		$	106,480		$	125,065		$	(115,595	)	$	1,187,244
Depreciation and amortization		10,273			1,866			631			2,821			15,591
Income (Loss) from operations		18,536			14,630			(275	)		(13,101	)		19,790
Reconciling items to net income
Interest expense														4,136
Other, net														441
Income tax expense														171
Net income													$	15,042
Capital expenditures	$	4,144		$	2,724		$	370		$	26		$	7,264
Assets	$	261,102		$	52,733		$	137,416		$	(63,201	)	$	388,050
2010
Net sales
External customers	$	529,173		$	22,053		$	89,146		$	—		$	640,372
Intersegment sales		32,110			20,940			—			(53,050	)	$	—
Total net sales	$	561,283		$	42,993		$	89,146		$	(53,050	)	$	640,372
Depreciation and amortization		11,295			1,910			675			2,975			16,855
(Loss) Income from operations		(2,591	)		2,440			(1,002	)		(14,264	)		(15,417	)
Reconciling items to net loss
Increase in fair value of warrant														121,587
Interest expense														4,140
Other, net														667
Income tax benefit														(51	)
Net loss													$	(141,760	)
Capital expenditures	$	1,107		$	161		$	368		$	146		$	1,782
Assets	$	198,146		$	36,589		$	95,623		$	(27,524	)	$	302,834
2009
Net sales
External customers	$	263,388		$	9,749		$	64,703		$	—		$	337,840
Intersegment sales		12,544			7,597			—			(20,141	)	$	—
Total net sales	$	275,932		$	17,346		$	64,703		$	(20,141	)	$	337,840
Depreciation and amortization		13,885			1,554			837			3,309			19,585
Loss from operations		(42,162	)		(4,552	)		(6,663	)		(12,697	)		(66,074	)
Reconciling items to net loss
Increase in fair value of warrant														33,447
Interest expense														4,379
Other, net														866
Income tax benefit														(3,001	)
Net loss													$	(101,765	)
Capital expenditures	$	867		$	71		$	43		$	—		$	981
Assets	$	148,068		$	23,614		$	93,049		$	(40,954	)	$	223,777

b. Customer Concentration

The Company is subject to a concentration of risk as the five largest customers together accounted for approximately 32%, 32% and 41% of the Company’s aggregate net sales in 2011, 2010 and 2009, respectively, with one different customer each year representing approximately 13%, 10% and 14% of net sales in 2011, 2010 and 2009, respectively. International sales, primarily to Canadian customers, accounted for less than 10% in each of the last three years.

c. Product Information

The Company offers products primarily in four general categories: (1) new trailers, (2) used trailers, (3) components, parts and service and (4) equipment and other. The following table sets forth the major product categories and their percentage of consolidated net sales (dollars in thousands):

	2011				2010				2009
	$		%		$		%		$		%
New trailers		1,050,474		88.5		550,470		86.0		272,678		80.7
Used trailers		26,489		2.2		22,619		3.5		19,109		5.7
Components, parts and service		92,250		7.8		61,656		9.6		44,245		13.1
Equipment and other		18,031		1.5		5,627		0.9		1,808		0.5
Total net sales		1,187,244		100.0		640,372		100.0		337,840		100.0