13.

SEGMENTS

a. Segment Reporting

The Company manages its business in three segments: Commercial Trailer Products, Diversified Products, and Final Mile Products. The Commercial Trailer Products segment manufactures standard and customized van and platform trailers and other transportation related equipment to customers who purchase directly from the Company or through independent dealers. The Diversified Products segment, comprised of four strategic business units including, Tank Trailer, Aviation &; Truck Equipment, Process Systems and Composites, 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 Final Mile Products segment includes the operations of the recent acquisition, Supreme, and other truck body activities previously reported in the Company’s Commercial Trailer Products segment.

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 segments. The Company accounts for intersegment sales and transfers at cost plus a specified mark-up.

Reportable segment information is as follows (in thousands):

	Commercial		Diversified		Final Mile		Corporate and
Three Months Ended March 31,	Trailer Products		Products		Products		Eliminations		Consolidated
2018
Net Sales
External Customers	$	327,397	$	88,463	$	75,459	$	-	$	491,319
Intersegment Sales		25		6,740		-		(6,765)		-
Total Net Sales	$	327,422	$	95,203	$	75,459	$	(6,765)	$	491,319
Income (Loss) from operations	$	29,481	$	5,028	$	609	$	(9,462)	$	25,656
Assets	$	350,187	$	356,852	$	467,994	$	234,515	$	1,409,548

2017
Net Sales
External Customers	$	274,750	$	87,966	$	-	$	-	$	362,716
Intersegment Sales		39		1,944		-		(1,983)		-
Total Net Sales	$	274,789	$	89,910	$	-	$	(1,983)	$	362,716
Income (Loss) from operations	$	33,392	$	4,604	$	-	$	(7,732)	$	30,264
Assets	$	323,001	$	375,338	$	-	$	250,944	$	949,283

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		Final Mile		Corporate and
	Trailer Products		Products		Products		Eliminations		Consolidated
Three Months Ended March 31,	$		$		$		$		$		%
2018
New Trailers		310,318		33,839		-		-		344,157		70.0
Used Trailers		4,407		1,086		-		-		5,493		1.1
Components, parts and service		8,648		33,968		2,413		(6,762)		38,267		7.8
Equipment and other		4,049		26,310		73,046		(3)		103,402		21.1
Total net sales		327,422		95,203		75,459		(6,765)		491,319		100.0

2017
New Trailers		257,190		30,695		-		-		287,885		79.4
Used Trailers		887		1,219		-		-		2,106		0.6
Components, parts and service		12,743		33,675		-		(1,983)		44,435		12.3
Equipment and other		3,969		24,321		-		-		28,290		7.7
Total net sales		274,789		89,910		-		(1,983)		362,716		100.0