Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.19.2
Segment Information
 12 Months Ended
Mar. 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, IPI and Sumac. 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. Sumac provides temporary power products that differ from our core thermal solutions business. As 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 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 and total assets classified by major geographic area in which the Company operates are as follows:
 
 
Year Ended March 31, 2019
 
Year Ended March 31, 2018
 
Year Ended March 31, 2017
Sales to External Customers:
 
 
 
 
 
 
United States and Latin America
 
$
165,648

 
$
114,548

 
$
119,791

Canada
 
127,392

 
94,427

 
41,721

Europe, Middle East and Africa
 
77,508

 
68,352

 
71,133

Asia-Pacific
 
42,094

 
31,282

 
31,485

 
 
$
412,642

 
$
308,609

 
$
264,130

Inter-segment Sales:
 
 
 
 
 
 
United States and Latin America
 
$
52,662

 
$
50,155

 
$
45,966

Canada
 
6,231

 
7,294

 
3,610

Europe, Middle East and Africa
 
3,406

 
1,614

 
1,580

Asia-Pacific
 
859

 
1,668

 
1,407

 
 
$
63,158

 
$
60,731

 
$
52,563

Depreciation Expense:
 
 
 
 
 
 
United States and Latin America
 
$
4,935

 
$
4,326

 
$
3,632

Canada
 
3,616

 
3,019

 
1,933

Europe, Middle East and Africa
 
466

 
476

 
301

Asia-Pacific
 
177

 
141

 
194

 
 
$
9,194

 
$
7,962

 
$
6,060

Amortization of Intangibles:
 
 
 
 
 
 
United States and Latin America
 
$
5,841

 
$
6,018

 
$
5,860

Canada
 
12,515

 
7,979

 
3,538

Europe, Middle East and Africa
 
1,351

 
1,398

 
1,310

Asia-Pacific
 
1,064

 
1,063

 
1,064

 
 
$
20,771

 
$
16,458

 
$
11,772

Income from Operations:
 
 
 
 
 
 
United States and Latin America
 
$
16,421

 
$
484

 
$
5,359

Canada
 
20,601

 
26,198

 
8,040

Europe, Middle East and Africa
 
11,295

 
6,842

 
9,095

Asia-Pacific
 
5,847

 
4,111

 
4,512

Unallocated:
 


 


 


Public company costs
 
(1,507
)
 
(1,378
)
 
(1,160
)
Stock compensation
 
(4,148
)
 
(3,519
)
 
(3,402
)
 
 
$
48,509

 
$
32,738

 
$
22,444

 
 
 
 
 
 
 
 
 
March 31, 2019
 
March 31, 2018
 
 
Fixed Assets:
 
 
 
 
 
 
United States and Latin America
 
$
40,691

 
$
37,112

 
 
Canada
 
30,045

 
33,076

 
 
Europe, Middle East and Africa
 
3,497

 
3,567

 
 
Asia-Pacific
 
722

 
730

 
 
 
 
$
74,955

 
$
74,485

 
 
Total Assets:
 


 


 
 
United States and Latin America
 
$
230,149

 
$
213,099

 
 
Canada
 
298,233

 
317,635

 
 
Europe, Middle East and Africa
 
84,214

 
89,379

 
 
Asia-Pacific
 
43,166

 
42,364

 
 
 
 
$
655,762

 
$
662,477

 
 
At March 31, 2019 and 2018, non-current deferred tax assets of $4,483 and $3,490 respectively, were applicable to the United States.
Capital expenditures by geographic area were as follows:
 
 
Year Ended March 31, 2019
 
Year Ended March 31, 2018
 
Year Ended March 31, 2017
Capital Expenditures:
 
 
 
 
 
 
United States and Latin America
 
$
8,432

 
$
4,257

 
$
3,882

Canada
 
2,753

 
5,295

 
3,286

Europe, Middle East and Africa
 
612

 
118

 
1,074

Asia-Pacific
 
239

 
338

 
128

 
 
$
12,036

 
$
10,008

 
$
8,370