Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.3.1.900
Segment Information
 12 Months Ended
Jan. 02, 2016
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.

The decrease in recycling segment revenues for the fiscal year ended January 2, 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 2015 and 2014:
 
For the fiscal years ended
 
January 2, 2016
 
January 3, 2015
Revenues:
 
 
 
Retail
$
66,225

 
$
68,023

Recycling
45,614

 
62,907

Total revenues
$
111,839

 
$
130,930

 
 
 
 
Operating income (loss):
 

 
 

Retail
$
(1,815
)
 
$
(1,764
)
Recycling
(1,667
)
 
4,969

Unallocated corporate costs
(622
)
 
(654
)
Total operating income
$
(4,104
)
 
$
2,551

 
 
 
 
Cash capital expenditures:
 

 
 

Retail
$
121

 
$
443

Recycling
43

 
132

Corporate
240

 
243

Total cash capital expenditures
$
404

 
$
818

 
 
 
 
Depreciation and amortization expense:
 

 
 

Retail
$
197

 
$
164

Recycling
835

 
886

Corporate
238

 
305

Total depreciation and amortization expense
$
1,270

 
$
1,355

 
 
 
 
Interest expense:
 
 
 

Retail
$
437

 
$
240

Recycling
595

 
466

Corporate
260

 
290

Total interest expense
$
1,292

 
$
996

 
 
 
 
 
As of
 
January 2, 2016
 
January 3, 2015
Assets:
 
 
 
Retail
$
18,088

 
$
15,778

Recycling
22,122

 
24,019

Corporate assets not allocable
6,636

 
7,163

Total assets
$
46,846

 
$
46,960