Annual report pursuant to Section 13 and 15(d)

12. Segment Information

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12. Segment Information
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
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.

 

The decrease in recycling segment revenues for the fiscal year ended December 31, 2016, presented in the following table was the result of a decrease in revenues related to appliance replacement programs, recycling programs and a significant decline in byproduct revenues that resulted from decreases in the prices of the byproducts that we sell.

  

The following tables present our segment information for fiscal years 2016 and 2015:

 

    For the fiscal years ended  
    December 31,
2016		     January 2,
2016		  
Revenues:            
Retail   $ 61,551     $ 65,637  
Recycling     42,038       46,202  
Total revenues   $ 103,589     $ 111,839  
Operating income (loss):                
Retail   $ (1,646 )   $ (1,741 )
Recycling     1,101       (2,363 )
Total operating income   $ (545 )   $ (4,104 )
Cash capital expenditures:                
Retail   $ 33     $ 121  
Recycling     342       283  
Total cash capital expenditures   $ 375     $ 404  
Depreciation and amortization expense:                
Retail   $ 216     $ 197  
Recycling     1,048       1,073  
Total depreciation and amortization expense   $ 1,264     $ 1,270  
                 
Interest expense:                
Retail   $ 251     $ 437  
Recycling     1,168       855  
Total interest expense   $ 1,419     $ 1,292  
                 
      December 31, 2016      

January 2,

2016

  
Assets:                
Retail   $ 17,559     $ 18,088  
Recycling     24,297       28,691  
Total assets   $ 41,856     $ 46,779  

 

Certain items have been reclassified from prior year for presentation with no effect to net income.