Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

v3.5.0.2
Segment Information (Tables)
 3 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Total sales and operating income classified by major geographic area in which the company operates
We operate in four reportable segments based on four geographic countries or regions in which we operate: the 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 engineering, procurement and construction ("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. Over the last 17 months, we 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 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:
 
Three Months Ended June 30, 2016
 
Three Months Ended June 30, 2015
Sales to External Customers:
 
 
 
United States
$
30,154

 
$
28,498

Canada
10,109

 
13,070

Europe
13,763

 
16,351

Asia
9,370

 
7,304

 
$
63,396

 
$
65,223

Inter-Segment Sales:
 
 
 
United States
$
10,639

 
$
11,555

Canada
589

 
796

Europe
601

 
369

Asia
128

 
100

 
$
11,957

 
$
12,820

Depreciation Expense:
 
 
 
United States
$
861

 
$
674

Canada
452

 
342

Europe
69

 
58

Asia
32

 
42

 
$
1,414

 
$
1,116

Amortization Expense:
 
 
 
United States
$
1,314

 
$
1,258

Canada
901

 
1,009

Europe
335

 
363

Asia
266

 
266

 
$
2,816

 
$
2,896

Income from operations:
 
 
 
United States
$
39

 
$
4,222

Canada (a)
1,733

 
1,330

Europe
1,651

 
2,385

Asia
2,044

 
1,324

Unallocated:


 


Stock compensation
(906
)
 
(875
)
Public company costs
(371
)
 
(314
)
 
$
4,190

 
$
8,072


 
June 30, 2016
 
March 31, 2016
Property, plant and equipment, net:
 
 
 
United States
$
34,439

 
$
34,528

Canada
4,299

 
3,754

Europe
2,698

 
2,769

Asia
547

 
566

 
$
41,983

 
$
41,617

Total Assets:
 
 
 
United States
$
195,389

 
$
196,400

Canada
138,062

 
145,301

Europe
72,516

 
76,754

Asia
51,004

 
50,222

 
$
456,971

 
$
468,677

(a) During the three months ended June 30, 2015, the Canadian segment's operating income was negatively impacted by $1,376 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 three months ended June 30, 2016.