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SEASONALITY AND CURRENT ECONOMIC CONDITIONS | 3 Months Ended
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Mar. 28, 2020
SEASONALITY AND CURRENT ECONOMIC CONDITIONS |
SEASONALITY AND CURRENT ECONOMIC CONDITIONS | 5. Seasonality and Current Economic Conditions Certain products within the Company’s portfolio are seasonal, primarily furnaces and evaporative coolers in the HVAC segment which are sensitive to weather conditions particularly during their respective peak selling seasons. Other products within the HVAC segment, specifically fan-coils and dryer boxes, and Door segment sales are, to a significant extent, dependent on construction activity. Historically, the Company has experienced operating losses during the first quarter and typically improved in the second and third quarters reflecting more favorable weather conditions for legacy products. Fourth quarter results have typically varied based on weather conditions affecting the Company’s discontinued operations as well as in the principal markets for the Company’s heating equipment. The 2019 sale of the Company’s ready-mix and Daniels Sand operations along with the acquisitions completed in 2019 are expected to reduce the seasonality of the Company’s operations. The first quarter of 2020 has presented significant economic challenges from the effects of COVID-19. The Company cannot reasonably determine what the future impact on revenue, cash flow or earnings from operations will be. Our operations were considered essential and thus far all businesses within the portfolio continue to manufacture and sell product, but we are seeing a slowdown in demand and are anticipating potentially significant impacts through the remainder of 2020.

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