Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.19.3.a.u2
Segment Information
 9 Months Ended
Dec. 31, 2019
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 Close Corporation ("Unitemp"), Industrial Process Insulators, Inc. ("IPI") and TPS. THS (formerly known as CCI Thermal Technologies Inc.) 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. TPS provides temporary power products that differ from our core thermal solutions business. As we anticipate that our full year operating results from TPS will comprise less than 10% of our total sales and operating income, TPS 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 December 31, 2019
 
Three Months Ended December 31, 2018
 
Nine Months Ended December 31, 2019
 
Nine Months Ended
December 31, 2018
Sales to External Customers:
 

 
 

 
 
 
 
United States and Latin America
$
38,837

 
$
51,052

 
$
123,085

 
$
115,334

Canada
34,528

 
33,466

 
92,731

 
93,061

Europe, Middle East and Africa
13,338

 
22,460

 
42,365

 
58,827

Asia-Pacific
13,765

 
12,378

 
36,934

 
31,190

 
$
100,468

 
$
119,356

 
$
295,115

 
$
298,412

Inter-Segment Sales:
 
 
 
 
 
 
 
United States and Latin America
$
11,316

 
$
12,807

 
$
36,777

 
$
38,614

Canada
1,101

 
1,613

 
3,230

 
3,829

Europe, Middle East and Africa
791

 
866

 
2,385

 
2,829

Asia-Pacific
167

 
204

 
612

 
701

 
$
13,375

 
$
15,490

 
$
43,004

 
$
45,973

Depreciation Expense:
 
 
 
 
 
 
 
United States and Latin America
$
1,566

 
$
1,264

 
$
4,661

 
$
3,574

Canada
930

 
888

 
2,530

 
2,833

Europe, Middle East and Africa
138

 
114

 
402

 
331

Asia-Pacific
29

 
47

 
132

 
129

 
$
2,663

 
$
2,313

 
$
7,725

 
$
6,867

Amortization Expense:
 
 
 
 
 
 
 
United States and Latin America
$
1,438

 
$
1,438

 
$
4,314

 
$
4,403

Canada
2,434

 
2,866

 
7,270

 
9,939

Europe, Middle East and Africa
322

 
317

 
972

 
1,020

Asia-Pacific
266

 
266

 
798

 
798

 
$
4,460

 
$
4,887

 
$
13,354

 
$
16,160

Income from operations:
 

 
 

 
 
 
 
United States and Latin America
$
2,944

 
$
7,763

 
$
9,280

 
$
13,348

Canada
8,562

 
$
5,998

 
17,339

 
13,693

Europe, Middle East and Africa
366

 
3,827

 
2,196

 
7,530

Asia-Pacific
2,280

 
1,729

 
6,377

 
4,398

Unallocated:


 


 


 


Stock compensation
(1,328
)
 
$
(1,041
)
 
(3,670
)
 
(3,130
)
Public company costs
(358
)
 
(389
)
 
(1,224
)
 
(1,040
)
 
$
12,466

 
$
17,887

 
$
30,298

 
$
34,799


 
December 31, 2019
 
March 31, 2019
Property, plant and equipment, net:
 
 
 
United States and Latin America
$
39,800

 
$
40,691

Canada
30,165

 
30,045

Europe, Middle East and Africa
3,473

 
3,497

Asia-Pacific
767

 
722

 
$
74,205

 
$
74,955

Total Assets:
 
 
 
United States and Latin America
$
229,644

 
$
230,149

Canada
296,015

 
298,233

Europe, Middle East and Africa
80,544

 
84,214

Asia-Pacific
40,514

 
43,166

 
$
646,717

 
$
655,762


Capital expenditures by geographic area were as follows:
 
 
Three Months Ended December 31, 2019
 
Three Months Ended December 31, 2018
 
Nine Months Ended
December 31, 2019
 
Nine Months Ended
December 31, 2018
Capital Expenditures:
 
 
 
 
 
 
 
 
United States and Latin America
 
$
2,122

 
$
2,350

 
$
4,110

 
$
5,781

Canada
 
289

 
424

 
1,872

 
2,482

Europe, Middle East and Africa
 
375

 
273

 
527

 
417

Asia-Pacific
 
76

 
59

 
192

 
128

 
 
$
2,862

 
$
3,106

 
$
6,701

 
$
8,808