Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.7.0.1
Segment Information
 12 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Segment Information
Segment Information
We operate in four reportable segments based on four geographic countries or regions; United States, Canada, Europe and Asia. Within our four reportable segments, our primary 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 large EPC 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 have acquired Unitemp, IPI and Sumac. Both Unitemp and IPI offer thermal solutions and have been included in our Europe and United States reportable segments, respectively. Sumac provides temporary power products that differ from our core thermal solutions business. As our operating results from Sumac 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 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 and total assets classified by major geographic area in which the Company operates are as follows:
 
 
Year Ended March 31, 2017
 
Year Ended March 31, 2016
 
Year Ended March 31, 2015
Sales to External Customers:
 
 
 
 
 
 
United States
 
$
119,791

 
$
126,033

 
$
115,388

Canada
 
41,721

 
56,925

 
98,500

Europe
 
71,133

 
65,370

 
57,450

Asia
 
31,485

 
33,600

 
37,240

 
 
$
264,130

 
$
281,928

 
$
308,578

Inter-segment Sales:
 
 
 
 
 
 
United States
 
$
45,966

 
$
50,807

 
$
62,642

Canada
 
3,610

 
3,886

 
4,801

Europe
 
1,580

 
2,367

 
1,870

Asia
 
1,407

 
435

 
381

 
 
$
52,563

 
$
57,495

 
$
69,694

Depreciation Expense:
 
 
 
 
 
 
United States
 
$
3,632

 
$
3,117

 
$
2,592

Canada
 
1,933

 
1,071

 
365

Europe
 
301

 
296

 
246

Asia
 
194

 
171

 
166

 
 
$
6,060

 
$
4,655

 
$
3,369

Amortization of Intangibles:
 
 
 
 
 
 
United States
 
$
5,860

 
$
6,080

 
$
5,033

Canada
 
3,538

 
3,543

 
3,234

Europe
 
1,310

 
1,426

 
1,446

Asia
 
1,064

 
1,063

 
1,062

 
 
$
11,772

 
$
12,112

 
$
10,775

Income from Operations:
 
 
 
 
 
 
United States
 
$
5,359

 
$
20,607

 
$
25,914

Canada (a)
 
8,040

 
7,302

 
33,307

Europe (b)
 
9,095

 
8,586

 
7,262

Asia
 
4,512

 
5,541

 
5,391

Unallocated:
 


 


 


Public company costs
 
(3,402
)
 
(1,526
)
 
(1,518
)
Stock compensation
 
(1,160
)
 
(3,749
)
 
(3,295
)
 
 
$
22,444

 
$
36,761

 
$
67,061

 
 
 
 
 
 
 
 
 
March 31, 2017
 
March 31, 2016
 
 
Fixed Assets:
 
 
 
 
 
 
United States
 
$
34,563

 
$
34,528

 
 
Canada
 
4,674

 
3,754

 
 
Europe
 
3,532

 
2,769

 
 
Asia
 
497

 
566

 
 
 
 
$
43,266

 
$
41,617

 
 
Total Assets:
 


 


 
 
United States
 
$
186,300

 
$
196,400

 
 
Canada
 
136,688

 
145,301

 
 
Europe
 
80,589

 
76,754

 
 
Asia
 
50,503

 
50,222

 
 
 
 
$
454,080

 
$
468,677

 
 

(a) During the year ended March 31, 2016, the Canadian segment's operating income was negatively impacted by $5,706 due to acquisition related contingent consideration accounted for as compensation. As part of the Sumac transaction, we issued the sellers a $5,905 non-interest bearing note that matured on April 1, 2016. The terms of the performance-based note assume the continued employment of Sumac's principals, and as a result, the performance note payment is accounted for as compensation expense. The performance note was settled during the first quarter of fiscal 2017.
b) During the year ended March 31, 2016, the European segment's operating income was negatively impacted by a $1,713 impairment charge to Unitemp's goodwill and other intangible assets.
At March 31, 2017 and 2016, non-current deferred tax assets of $3,470 and $4,805 respectively, were applicable to the United States.