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 March 31,
2014
Net sales
External customers	$	206,997	$	105,764	$	45,359	$	-	$	358,120
Intersegment sales		20,453		14,185		277		(34,915)		-
Total net sales	$	227,450	$	119,949	$	45,636	$	(34,915)	$	358,120

Income (Loss) from operations	$	8,931	$	12,857	$	1,050	$	(3,373)	$	19,465
Reconciling items to income before income taxes
Interest expense										(5,717)
Other, net										32
Income before income taxes									$	13,780

2013
Net sales
External customers	$	183,986	$	99,689	$	40,554	$	-	$	324,229
Intersegment sales		14,091		12,305		289		(26,685)		-
Total net sales	$	198,077	$	111,994	$	40,843	$	(26,685)	$	324,229

Income (Loss) from operations	$	5,320	$	13,519	$	873	$	(4,856)	$	14,856
Reconciling items to income before income taxes
Interest expense										(7,535)
Other, net										2,238
Income before income taxes									$	9,559

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 March 31,
2014
New trailers	193,000	54,847	20,271	268,118	74.9
Used trailers	11,248	1,178	3,639	16,065	4.5
Components, parts and service	580	20,420	20,698	41,698	11.6
Equipment and other	2,169	29,319	751	32,239	9.0
Total net external sales	206,997	105,764	45,359	358,120	100.0

	Commercial	Diversified
	Trailer Products	Products	Retail	Consolidated
	$	$	$	$	%
2013
New trailers	175,003	43,521	16,943	235,467	72.6
Used trailers	5,050	949	2,648	8,647	2.7
Components, parts and service	2,705	18,901	19,679	41,285	12.7
Equipment and other	1,228	36,318	1,284	38,830	12.0
Total net external sales	183,986	99,689	40,554	324,229	100.0