SEGMENTS

9 Months Ended

Sep. 30, 2018

13.

SEGMENTS

a. Segment Reporting

The Company manages its business in three reportable 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 for 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 Supreme, and other truck body activities previously reported in the Company’s Commercial Trailer Products segment.

Previously, we managed our business in two segments: Commercial Trailer Products and Diversified Products. In the third quarter of 2017, we completed the acquisition of Supreme. As a result, we created a new reporting segment in the fourth quarter of 2017 referred to as the Final Mile Products segment, which includes the Supreme operations and certain other truck body operations which were previously included in our Commercial Trailer Products segment. The Company has not restated the historical comparative periods due to the immaterial impact of the existing truck body activities on the presented segments and periods.

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
	Trailer Products			Products			Products			Eliminations			Consolidated
Three Months Ended September 30, 2018
Net sales
External customers	$	368,301		$	97,723		$	87,049		$	-		$	553,073
Intersegment sales		41			4,638			-			(4,679	)		-
Total net sales	$	368,342		$	102,361		$	87,049		$	(4,679	)	$	553,073

Income (Loss) from operations	$	32,453		$	(6,346	)	$	(1,495	)	$	(8,099	)	$	16,513
Assets	$	358,150		$	352,494		$	475,934		$	163,629		$	1,350,207

2017
Net sales
External customers	$	339,494		$	85,604		$	-		$	-		$	425,098
Intersegment sales		(2	)		3,246			-			(3,244	)		-
Total net sales	$	339,492		$	88,850		$	-		$	(3,244	)	$	425,098

Income (Loss) from operations	$	36,319		$	5,178		$	-		$	(14,906	)	$	26,591
Assets	$	362,209		$	356,147		$	-		$	660,771		$	1,379,127

	Commercial		Diversified		Final Mile		Corporate and
	Trailer Products		Products		Products		Eliminations			Consolidated
Nine Months Ended September 30, 2018
Net sales
External customers	$	1,098,182	$	275,183	$	283,717	$	-		$	1,657,082
Intersegment sales		89		16,466		-		(16,555	)		-
Total net sales	$	1,098,271	$	291,649	$	283,717	$	(16,555	)	$	1,657,082

Income (Loss) from operations	$	102,718	$	3,078	$	9,372	$	(26,959	)	$	88,209
Assets	$	358,150	$	352,494	$	475,934	$	163,629		$	1,350,207

2017
Net sales
External customers	$	962,371	$	261,346	$	-	$	-		$	1,223,717
Intersegment sales		50		8,241		-		(8,291	)		-
Total net sales	$	962,421	$	269,587	$	-	$	(8,291	)	$	1,223,717

Income (Loss) from operations	$	111,865	$	14,844	$	-	$	(31,186	)	$	95,523
Assets	$	362,209	$	356,147	$	-	$	660,771		$	1,379,127

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 Trailer Products		Diversified Products		Final Mile Products		Corporate and Eliminations			Consolidated
	$		$		$		$			$		%
Three Months Ended September 30, 2018
New trailers		354,003		44,399		-		-			398,402		72.0
Used trailers		1,888		775		-		-			2,663		0.5
Components, parts and service		8,090		29,064		2,304		(4,676	)		34,782		6.3
Equipment and other		4,361		28,123		84,745		(3	)		117,226		21.2
Total net sales		368,342		102,361		87,049		(4,679	)		553,073		100.0

2017
New trailers		319,463		35,225		-		-			354,688		83.4
Used trailers		3,245		601		-		-			3,846		0.9
Components, parts and service		12,255		27,881		-		(3,244	)		36,892		8.7
Equipment and other		4,529		25,143		-		-			29,672		7.0
Total net sales		339,492		88,850		-		(3,244	)		425,098		100.0

	Commercial Trailer Products		Diversified Products		Final Mile Products		Corporate and Eliminations			Consolidated
	$		$		$		$			$		%
Nine Months Ended September 30, 2018
New trailers		1,049,452		115,840		-		-			1,165,292		70.3
Used trailers		8,794		2,489		-		-			11,283		0.7
Components, parts and service		25,780		94,958		7,340		(16,529	)		111,549		6.7
Equipment and other		14,245		78,362		276,377		(26	)		368,958		22.3
Total net sales		1,098,271		291,649		283,717		(16,555	)		1,657,082		100.0

2017
New trailers		906,058		99,210		-		-			1,005,268		82.1
Used trailers		5,368		2,457		-		-			7,825		0.6
Components, parts and service		38,100		93,750		-		(8,291	)		123,559		10.1
Equipment and other		12,895		74,170		-		-			87,065		7.2
Total net sales		962,421		269,587		-		(8,291	)		1,223,717		100.0