Annual report pursuant to Section 13 and 15(d)

Segment Information

v2.4.0.8
Segment Information
 12 Months Ended
Dec. 28, 2013
Segment Reporting [Abstract]  
Segment Information
Segment Information
 
We operate within targeted markets through two reportable segments: retail and recycling.  The retail segment is comprised of income generated through our ApplianceSmart stores, which includes appliance sales and byproduct revenues from collected appliances.  The recycling segment includes all fees charged and costs incurred for collecting, recycling and installing appliances for utilities and other customers. The recycling segment also includes byproduct revenue, which is primarily generated through the recycling of appliances and includes all revenues from AAP.  The nature of products, services and customers for both segments varies significantly.  As such, the segments are managed separately.  Our Chief Executive Officer has been identified as the Chief Operating Decision Maker (“CODM”).  The CODM evaluates performance and allocates resources based on sales and income from operations of each segment.  Income from operations represents revenues less cost of revenues and operating expenses, including certain allocated selling, general and administrative costs.  There are no inter-segment sales or transfers.
On December 30, 2012, we modified the estimate used to allocate certain selling, general and administrative costs and, as a result, approximately $569 of corporate services were not allocated to the retail and recycling segments during fiscal year 2013. The impact of the change in estimate to the retail and recycling segments during fiscal year 2013 was $142 and $427, respectively.

The increase in recycling segment revenues and assets for the fiscal year ended December 28, 2013, presented in the table below was the result of an increase in revenues and accounts receivable, respectively, related to appliance replacement programs.

The following tables present our segment information for fiscal years 2013 and 2012:
 
For the fiscal years ended
 
December 28, 2013
 
December 29, 2012
Revenues:
 
 
 
Retail
$
69,642

 
$
72,360

Recycling
59,419

 
41,875

Total revenues
$
129,061

 
$
114,235

 
 
 
 
Operating income (loss):
 

 
 

Retail
$
(1,064
)
 
$
(2,645
)
Recycling
6,270

 
(241
)
Unallocated corporate costs
(627
)
 
(336
)
Total operating income (loss)
$
4,579

 
$
(3,222
)
 
 
 
 
Assets:
 
 
 

Retail
$
17,682

 
$
18,476

Recycling
23,290

 
18,658

Corporate assets not allocable
4,007

 
4,670

Total assets
$
44,979

 
$
41,804

 
 
 
 
Cash capital expenditures:
 

 
 

Retail
$
11

 
$
228

Recycling
354

 
332

Corporate
136

 
258

Total cash capital expenditures
$
501

 
$
818

 
 
 
 
Depreciation and amortization expense:
 

 
 

Retail
$
191

 
$
226

Recycling
815

 
609

Corporate
363

 
386

Total depreciation and amortization expense
$
1,369

 
$
1,221

 
 
 
 
Interest expense:
 
 
 

Retail
$
494

 
$
377

Recycling
423

 
468

Corporate
280

 
298

Total interest expense
$
1,197

 
$
1,143