Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.20.2
Segment Information
 3 Months Ended
Jun. 30, 2020
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 June 30, 2020 Three Months Ended June 30, 2019
Sales to External Customers:
United States and Latin America $ 18,643    $ 40,427   
Canada 19,313    27,252   
Europe, Middle East and Africa 9,467    13,339   
Asia-Pacific 9,425    10,694   
  $ 56,848    $ 91,712   
Inter-Segment Sales:
United States and Latin America $ 11,273    $ 9,741   
Canada 1,492    1,124   
Europe, Middle East and Africa 695    561   
Asia-Pacific 173    288   
$ 13,633    $ 11,714   
Depreciation Expense:
United States and Latin America $ 1,538    $ 1,499   
Canada 1,032    760   
Europe, Middle East and Africa 112    139   
Asia-Pacific 47    54   
$ 2,729    $ 2,452   
Amortization Expense:
United States and Latin America $ 676    $ 1,438   
Canada 1,897    2,402   
Europe, Middle East and Africa 364    327   
Asia-Pacific 96    266   
$ 3,033    $ 4,433   
Income (Loss) from Operations:
United States and Latin America $ (8,728)   $ 1,003   
Canada 2,159    3,495   
Europe, Middle East and Africa 352    357   
Asia-Pacific 997    1,570   
Unallocated:
Stock compensation (1,133)   (1,019)  
Public company costs (402)   (415)  
  $ (6,755)   $ 4,991   
June 30, 2020 March 31, 2020
Property, Plant and Equipment, Net:
United States and Latin America $ 39,866    $ 39,815   
Canada 29,060    28,703   
Europe, Middle East and Africa 3,270    3,246   
Asia-Pacific 761    778   
$ 72,957    $ 72,542   
Total Assets:
United States and Latin America $ 225,781    $ 239,751   
Canada 280,819    270,055   
Europe, Middle East and Africa 73,990    73,334   
Asia-Pacific 39,357    37,765   
$ 619,947    $ 620,905   

Capital expenditures by geographic area were as follows:
Three Months Ended June 30, 2020 Three Months Ended June 30, 2019
Capital Expenditures:
United States and Latin America $ 1,793    $ 1,162   
Canada 233    388   
Europe, Middle East and Africa 20    169   
Asia-Pacific 13    7   
  $ 2,059    $ 1,726