Segment Information

9 Months Ended

Sep. 30, 2013

Segment Information

Segment Information

9. Segment Information

The Company is organized into three reportable segments. The segments are defined by the regions where the Company’s products are manufactured, marketed and distributed to the Company’s customers. The three regional segments are the North America segment, comprising primarily the United States and Canada, the Europe segment, comprising continental Europe and the United Kingdom, and the Asia/Pacific segment, comprising the Company’s operations in China, Hong Kong, the South Pacific and the Middle East. These segments are similar in several ways, including the types of materials, the production processes, the distribution channels and the product applications.

The Company’s measure of profit or loss for its reportable segments is income (loss) from operations. The reconciling amounts between consolidated income before tax and consolidated income from operations are net interest income, which is primarily attributed to Administrative and All Other.

The following table illustrates certain measurements used by management to assess the performance as of or for the following periods:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands)	2013			2012			2013			2012
Net Sales
North America	$	157,278		$	137,145		$	444,772		$	409,644
Europe	33,887			31,880			89,903			94,236
Asia/Pacific	4,475			2,851			10,621			7,958
Administrative and all other	237			237			712			712
Total	$	195,877		$	172,113		$	546,008		$	512,550
Sales to Other Segments*
North America	$	1,316		$	969		$	3,247		$	3,783
Europe	20			105			332			258
Asia/Pacific	3,968			3,894			12,979			12,191
Total	$	5,304		$	4,968		$	16,558		$	16,232
Income (Loss) from Operations
North America	$	28,659		$	22,102		$	73,582		$	66,558
Europe	3,682			1,172			1,742			889
Asia/Pacific	(649		)	(1,043		)	(1,878		)	(1,860		)
Administrative and all other	(807		)	(241		)	(3,871		)	(2,940		)
Total	$	30,885		$	21,990		$	69,575		$	62,647

* The sales to other segments are eliminated in consolidation.

					At
	At September 30,				December 31,
(in thousands)	2013		2012		2012
Total Assets
North America	$	630,459	$	568,878	$	583,501
Europe	196,958		196,883		194,000
Asia/Pacific	32,757		31,067		30,455
Administrative and all other	74,002		82,168		82,366
Total	$	934,176	$	878,996	$	890,322

Cash collected by the Company’s United States subsidiaries is routinely transferred into the Company’s cash management accounts and, therefore, has been included in the total assets of “Administrative and all other.” Cash and cash equivalent balances in the “Administrative and all other” segment were $120.1 million, $107.3 million, and $91.9 million, as of September 30, 2013 and 2012, and December 31, 2012, respectively.

The following table illustrates how the Company’s net sales are distributed by product group for the following periods:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2013		2012		2013		2012
Wood Construction	$	164,094	$	145,987	$	462,761	$	438,576
Concrete Construction	31,506		25,849		82,361		73,079
Other	277		277		886		895
Total	$	195,877	$	172,113	$	546,008	$	512,550

Wood construction products include connectors, truss plates, fastening systems, fasteners and pre-fabricated shearwalls and are used for connecting and strengthening wood-based construction primarily in the residential construction market. Concrete construction products include adhesives, chemicals, mechanical anchors, carbide drill bits, powder actuated tools and fiber reinforcing materials and are used for restoration, protection or strengthening concrete, masonry and steel construction in residential, industrial, commercial and infrastructure construction.