11.

SEGMENTS

a. Segment Reporting

The Company manages its business in three segments: Commercial Trailer Products, Diversified Products and Retail. The Commercial Trailer Products segment produces and sells new trailers to the Retail segment and 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 and tank trailers and transportation equipment. The results related to the purchased Beall assets from the date of the purchase, February 4, 2013, are included in the Diversified Products segment. 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 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 segments. The Company accounts for intersegment sales and transfers at cost plus a specified mark-up. The Company manages its assets on a consolidated basis, not by operating segment, as the assets of the Diversified Products segment are intermixed with those of the Commercial Trailer Products segment. Therefore, our chief operating decision maker does not review any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Reportable segment information is as follows (in thousands):

	Commercial		Diversified				Corporate and
	Trailer Products		Products		Retail		Eliminations		Consolidated
Three Months Ended June 30,
2013
Net sales
External customers	$	244,060	$	121,360	$	47,706	$	-	$	413,126
Intersegment sales		21,775		14,107		430		(36,312)		-
Total net sales	$	265,835	$	135,467	$	48,136	$	(36,312)	$	413,126

Income (Loss) from operations	$	14,555	$	19,262	$	1,261	$	(4,626)	$	30,452
Reconciling items to income before income taxes
Interest expense										(6,577)
Other, net										(333)
Income before income taxes									$	23,542

2012
Net sales
External customers	$	263,350	$	61,054	$	38,004	$	-	$	362,408
Intersegment sales		17,380		11,067		167		(28,614)		-
Total net sales	$	280,730	$	72,121	$	38,171	$	(28,614)	$	362,408

Income (Loss) from operations	$	13,735	$	9,285	$	1,027	$	(15,479)	$	8,568
Reconciling items to income before income taxes
Interest expense										(5,441)
Other, net										(56)
Income before income taxes									$	3,071

	Commercial		Diversified				Corporate and
	Trailer Products		Products		Retail		Eliminations		Consolidated
Six Months Ended June 30,
2013
Net Sales
External customers	$	428,148	$	220,947	$	88,260	$	-	$	737,355
Intersegment sales		35,762		26,536		719		(63,017)		-
Total net sales	$	463,910	$	247,483	$	88,979	$	(63,017)	$	737,355

Income (Loss) from operations	$	19,873	$	32,782	$	2,134	$	(9,481)	$	45,308
Reconciling items to income before income taxes
Interest expense										(14,112)
Other, net										1,905
Income before income taxes									$	33,101

2012
Net Sales
External customers	$	496,910	$	80,056	$	63,124	$	-	$	640,090
Intersegment sales		27,200		23,655		167		(51,022)		-
Total net sales	$	524,110	$	103,711	$	63,291	$	(51,022)	$	640,090

Income (Loss) from operations	$	19,922	$	14,669	$	952	$	(21,526)	$	14,017
Reconciling items to income before income taxes
Interest expense										(6,174)
Other, net										(60)
Income before income taxes									$	7,783

b. 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):

	Commercial		Diversified
	Trailer Products		Products		Retail		Consolidated
	$		$		$		$		%
Three Months Ended June 30,
2013
New trailers		232,848		51,232		22,864		306,944		74.3
Used trailers		6,265		671		3,657		10,593		2.6
Components, parts and service		2,592		30,515		19,795		52,902		12.8
Equipment and other		2,355		38,942		1,390		42,687		10.3
Total net external sales		244,060		121,360		47,706		413,126		100.0

	Commercial		Diversified
	Trailer Products		Products		Retail		Consolidated
	$		$		$		$		%
2012
New trailers		255,543		21,007		16,513		293,063		80.9
Used trailers		4,825		293		4,294		9,412		2.6
Components, parts and service		814		20,433		16,203		37,450		10.3
Equipment and other		2,168		19,321		994		22,483		6.2
Total net external sales		263,350		61,054		38,004		362,408		100.0

	Commercial		Diversified
	Trailer Products		Products		Retail		Consolidated
	$		$		$		$		%
Six Months Ended June 30,
2013
New trailers		407,850		94,753		39,807		542,410		73.6
Used trailers		11,315		1,620		6,305		19,240		2.6
Components, parts and service		5,401		49,314		39,474		94,189		12.8
Equipment and other		3,582		75,260		2,674		81,516		11.1
Total net external sales		428,148		220,947		88,260		737,355		100.0

	Commercial		Diversified
	Trailer Products		Products		Retail		Consolidated
	$		$		$		$		%
2012
New trailers		480,842		21,007		26,404		528,253		82.5
Used trailers		8,973		293		7,731		16,997		2.7
Components, parts and service		1,373		34,683		27,972		64,028		10.0
Equipment and other		5,722		24,073		1,017		30,812		4.8
Total net external sales		496,910		80,056		63,124		640,090		100.0