Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.5.0.2
Segment Information
 6 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Segment Information
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 19 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 we anticipate that our full year operating results from Sumac will 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, property, plant and equipment, net and total assets for each of our four reportable segments are as follows:
 
 Three Months Ended September 30, 2016
 
 Three Months Ended September 30, 2015
 
Six Months Ended September 30, 2016
 
Six Months Ended September 30, 2015
Sales to External Customers:
 

 
 

 
 
 
 
United States
$
29,838

 
$
34,611

 
$
59,992

 
$
63,109

Canada
13,051

 
12,632

 
23,160

 
25,702

Europe
18,554

 
15,245

 
32,317

 
31,596

Asia
7,369

 
7,446

 
16,739

 
14,750

 
$
68,812

 
$
69,934

 
$
132,208

 
$
135,157

Inter-Segment Sales:
 
 
 
 
 
 
 
United States
13,096

 
12,759

 
$
23,735

 
$
24,314

Canada
436

 
816

 
1,025

 
1,612

Europe
405

 
373

 
1,006

 
742

Asia
505

 
103

 
633

 
203

 
14,442

 
14,051

 
$
26,399

 
$
26,871

Depreciation Expense:
 
 
 
 
 
 
 
United States
890

 
764

 
1,751

 
1,438

Canada
499

 
156

 
951

 
498

Europe
73

 
58

 
142

 
116

Asia
37

 
46

 
69

 
88

 
1,499

 
1,024

 
$
2,913

 
$
2,140

Amortization Expense:
 
 
 
 
 
 
 
United States
1,536

 
1,666

 
$
2,850

 
$
2,924

Canada
890

 
996

 
1,791

 
2,005

Europe
333

 
361

 
668

 
724

Asia
266

 
265

 
532

 
531

 
3,025

 
3,288

 
$
5,841

 
$
6,184

Income from operations:
 

 
 

 
 
 
 
United States
$
424

 
$
7,579

 
$
463

 
$
11,801

Canada (a)
2,711

 
1,205

 
4,444

 
2,535

Europe
2,913

 
2,775

 
4,564

 
5,160

Asia
839

 
1,145

 
2,883

 
2,469

Unallocated:


 


 


 


Stock compensation
(915
)
 
(999
)
 
(1,821
)
 
(1,874
)
Public company costs
(297
)
 
(384
)
 
(668
)
 
(698
)
 
$
5,675

 
$
11,321

 
$
9,865

 
$
19,393


 
September 30, 2016
 
March 31, 2016
Property, plant and equipment, net:
 
 
 
United States
$
34,627

 
$
34,528

Canada
4,048

 
3,754

Europe
2,716

 
2,769

Asia
587

 
566

 
$
41,978

 
$
41,617

Total Assets:
 
 
 
United States
$
193,165

 
$
196,400

Canada
136,524

 
145,301

Europe
74,841

 
76,754

Asia
50,130

 
50,222

 
$
454,660

 
$
468,677

(a) During the three and six months ended September 30, 2015, the Canadian segment's operating income was negatively impacted by $1,290 and $2,666 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 was accounted for as compensation expense. The performance note was settled during the six months ended September 30, 2016.