Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.10.0.1
Segment Information
 6 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Segment Information
Segment Information
We operate in four reportable segments based on four geographic countries or regions in which we operate: (i) United States and Latin America ("US-LAM"), (ii) Canada, (iii) Europe, Middle East and Africa ("EMEA") and (iv) Asia-Pacific ("APAC"). Within our four reportable segments, our core products and services are focused on thermal solutions primarily related to the electrical heat tracing industry. Each of our reportable segments serves a similar class of customers, including engineering, procurement and construction companies, international and regional oil and gas companies, commercial sub-contractors, electrical component distributors and direct sales to existing plant or industrial applications. Profitability within our segments is measured by operating income. Profitability can vary in each of our reportable segments based on the competitive environment within the region, the level of corporate overhead, such as the salaries of our senior executives, and the level of research and development and marketing activities in the region, as well as the mix of products and services. Since March 2015, we acquired THS, Unitemp, IPI and Sumac. THS (formerly known as CCI) develops and produces advanced industrial heating and filtration solutions for industrial and hazardous area applications that closely align with Thermon's core business and serves similar end markets in North America. As such, we have elected to report THS's operations through our US-LAM and Canada reportable segments. Both Unitemp and IPI offer thermal solutions and have been included in our EMEA and US-LAM reportable segments, respectively. Sumac provides temporary power products that differ from our core thermal solutions business. As we anticipate that our full year operating results from Sumac will comprise less than 10% of our total sales and operating income, Sumac has been aggregated in our Canada segment. For purposes of this note, revenue is attributed to individual countries or regions on the basis of the physical location and jurisdiction of organization of the subsidiary that invoices the material and services.
Total sales to external customers, inter-segment sales, depreciation expense, amortization expense, income from operations, property, plant and equipment, net and total assets for each of our four reportable segments are as follows:
 
Three Months Ended September 30, 2018
 
Three Months Ended September 30, 2017
 
Six Months Ended September 30, 2018
 
Six Months Ended
September 30, 2017
Sales to External Customers:
 

 
 

 
 
 
 
United States and Latin America
$
32,653

 
$
21,318

 
$
64,282

 
$
44,869

Canada
30,967

 
15,437

 
59,595

 
27,536

Europe, Middle East and Africa
15,564

 
17,447

 
36,367

 
28,064

Asia-Pacific
10,970

 
7,429

 
18,812

 
12,898

 
$
90,154

 
$
61,631

 
$
179,056

 
$
113,367

Inter-Segment Sales:
 
 
 
 
 
 
 
United States and Latin America
$
13,878

 
$
14,309

 
$
25,807

 
$
23,891

Canada
1,163

 
1,895

 
2,216

 
3,359

Europe, Middle East and Africa
858

 
362

 
1,963

 
723

Asia-Pacific
352

 
174

 
497

 
547

 
$
16,251

 
$
16,740

 
$
30,483

 
$
28,520

Depreciation Expense:
 
 
 
 
 
 
 
United States and Latin America
$
1,190

 
$
1,078

 
$
2,310

 
$
2,064

Canada
934

 
635

 
1,945

 
1,240

Europe, Middle East and Africa
108

 
124

 
217

 
214

Asia-Pacific
42

 
32

 
82

 
64

 
$
2,274

 
$
1,869

 
$
4,554

 
$
3,582

Amortization Expense:
 
 
 
 
 
 
 
United States and Latin America
$
1,460

 
$
1,505

 
$
2,965

 
$
3,010

Canada
3,424

 
901

 
7,073

 
1,741

Europe, Middle East and Africa
346

 
350

 
703

 
679

Asia-Pacific
266

 
266

 
532

 
532

 
$
5,496

 
$
3,022

 
$
11,273

 
$
5,962

Income (loss) from operations:
 

 
 

 
 
 
 
United States and Latin America
$
2,849

 
$
(1,050
)
 
$
5,585

 
$
(2,097
)
Canada
4,410

 
6,549

 
7,695

 
9,997

Europe, Middle East and Africa
1,055

 
2,378

 
3,703

 
2,232

Asia-Pacific
1,773

 
845

 
2,669

 
1,307

Unallocated:


 


 


 


Stock compensation
(1,085
)
 
(947
)
 
(2,089
)
 
(1,732
)
Public company costs
(330
)
 
(358
)
 
(651
)
 
(732
)
 
$
8,672

 
$
7,417

 
$
16,912

 
$
8,975


 
September 30, 2018
 
March 31, 2018
Property, plant and equipment, net:
 
 
 
United States and Latin America
$
38,016

 
$
37,112

Canada
32,483

 
33,076

Europe, Middle East and Africa
3,253

 
3,567

Asia-Pacific
675

 
730

 
$
74,427

 
$
74,485

Total Assets:
 
 
 
United States and Latin America
$
207,741

 
$
213,099

Canada
315,496

 
317,635

Europe, Middle East and Africa
85,936

 
89,379

Asia-Pacific
41,105

 
42,364

 
$
650,278

 
$
662,477