OPERATING SEGMENTS

6 Months Ended

Apr. 28, 2013

Segment Reporting [Abstract]

BUSINESS SEGMENTS [Text Block]

NOTE 13 — OPERATING SEGMENTS 

Operating segments are defined as components of an enterprise that engage in business activities and by which discrete financial information is available that is evaluated on a regular basis by the chief operating decision maker to make decisions about how to allocate resources to the segment and assess the performance of the segment. We have three operating segments: (i) metal coil coating; (ii) metal components; and (iii) engineered building systems. All operating segments operate primarily in the nonresidential construction market. Sales and earnings are influenced by general economic conditions, the level of nonresidential construction activity, metal roof repair and retrofit demand and the availability and terms of financing available for construction. Products of our operating segments use similar basic raw materials. The metal coil coating segment consists of cleaning, treating, painting and slitting continuous steel coils before the steel is fabricated for use by construction and industrial users. The metal components segment products include metal roof and wall panels, doors, metal partitions, metal trim, insulated panels and other related accessories. Metl-Span is included in the metal components segment. See Note 2 – Acquisition. The engineered building systems segment includes the manufacturing of main frames, Long Bay ^® Systems and value-added engineering and drafting, which are typically not part of metal components or metal coil coating products or services. The operating segments follow the same accounting policies used for our consolidated financial statements.

We evaluate a segment’s performance based primarily upon operating income before corporate expenses. Intersegment sales are recorded based on standard material costs plus a standard markup to cover labor and overhead and consist of: (i) hot-rolled, light gauge painted and slit material and other services provided by the metal coil coating segment to both the engineered building systems and metal components segments; (ii) building components provided by the metal components segment to the engineered building systems segment; and (iii) structural framing provided by the engineered building systems segment to the metal components segment.

Corporate assets consist primarily of cash but also include deferred financing costs, deferred taxes and property, plant and equipment associated with our headquarters in Houston, Texas. These items (and income and expenses related to these items) are not allocated to the operating segments. Corporate unallocated expenses include executive, legal, finance, tax, treasury, human resources, information technology, purchasing, marketing and corporate travel expenses. Additional unallocated expenses include interest income, interest expense and other (expense) income.

The following table represents sales, operating income and total assets attributable to these operating segments for the periods indicated (in thousands):

	Fiscal Three Months Ended						Fiscal Six Months Ended
	April 28, 2013			April 29, 2012			April 28, 2013			April 29, 2012
Total sales:
Metal coil coating	$	49,790		$	48,839		$	99,061		$	97,922
Metal components		147,163			106,742			301,067			212,494
Engineered building systems		148,095			148,715			295,661			289,013
Intersegment sales		(51,649	)		(54,065	)		(104,806	)		(105,595	)
Total sales	$	293,399		$	250,231		$	590,983		$	493,834
External sales:
Metal coil coating	$	21,887		$	19,572		$	41,108		$	39,810
Metal components		129,181			85,324			265,709			172,620
Engineered building systems		142,331			145,335			284,166			281,404
Total sales	$	293,399		$	250,231		$	590,983		$	493,834
Operating income (loss):
Metal coil coating	$	4,755		$	4,890		$	10,297		$	10,192
Metal components		5,137			9,018			11,209			14,559
Engineered building systems		4,196			6,740			8,237			14,336
Corporate		(16,033	)		(15,704	)		(31,290	)		(29,858	)
Total operating income (loss)	$	(1,945	)	$	4,944		$	(1,547	)	$	9,229
Unallocated other expense		(5,903	)		(2,681	)		(11,753	)		(5,951	)
Income (loss) before income taxes	$	(7,848	)	$	2,263		$	(13,300	)	$	3,278

	April 28, 2013		October 28, 2012
Total assets:
Metal coil coating	$	68,137	$	60,169
Metal components		381,577		381,028
Engineered building systems		210,067		214,227
Corporate		64,787		96,060
Total assets	$	724,568	$	751,484