Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.6.0.2
Segment Information
 9 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment Information
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 23 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 December 31, 2016
 
 Three Months Ended December 31, 2015
 
Nine Months Ended December 31, 2016
 
Nine Months Ended December 31, 2015
Sales to External Customers:
 

 
 

 
 
 
 
United States
$
28,945

 
$
32,461

 
$
88,937

 
$
95,570

Canada
9,126

 
16,013

 
32,286

 
41,715

Europe
18,100

 
15,257

 
50,417

 
46,853

Asia
8,169

 
10,696

 
24,908

 
25,446

 
$
64,340

 
$
74,427

 
$
196,548

 
$
209,584

Inter-Segment Sales:
 
 
 
 
 
 
 
United States
11,355

 
14,509

 
$
35,090

 
$
38,823

Canada
1,345

 
920

 
2,370

 
2,532

Europe
267

 
809

 
1,273

 
1,551

Asia
129

 
86

 
762

 
289

 
13,096

 
16,324

 
$
39,495

 
$
43,195

Depreciation Expense:
 
 
 
 
 
 
 
United States
905

 
843

 
2,656

 
2,281

Canada
467

 
310

 
1,418

 
808

Europe
74

 
95

 
216

 
211

Asia
39

 
45

 
108

 
133

 
1,485

 
1,293

 
$
4,398

 
$
3,433

Amortization Expense:
 
 
 
 
 
 
 
United States
1,505

 
1,869

 
$
4,355

 
$
4,793

Canada
870

 
867

 
2,661

 
2,872

Europe
322

 
352

 
990

 
1,076

Asia
266

 
266

 
798

 
797

 
2,963

 
3,354

 
$
8,804

 
$
9,538

Income from operations:
 

 
 

 
 
 
 
United States
$
3,848

 
$
6,561

 
$
4,311

 
$
18,362

Canada (a)
1,343

 
2,802

 
5,787

 
5,337

Europe
2,344

 
2,047

 
6,908

 
7,207

Asia
914

 
1,677

 
3,797

 
4,146

Unallocated:


 


 


 


Stock compensation
(837
)
 
(890
)
 
(2,658
)
 
(2,764
)
Public company costs
(313
)
 
(370
)
 
(981
)
 
(1,068
)
 
$
7,299

 
$
11,827

 
$
17,164

 
$
31,220


 
December 31, 2016
 
March 31, 2016
Property, plant and equipment, net:
 
 
 
United States
$
34,697

 
$
34,528

Canada
3,761

 
3,754

Europe
2,670

 
2,769

Asia
541

 
566

 
$
41,669

 
$
41,617

Total Assets:
 
 
 
United States
$
186,854

 
$
196,400

Canada
133,693

 
145,301

Europe
75,897

 
76,754

Asia
49,428

 
50,222

 
$
445,872

 
$
468,677


(a) During the three and nine months ended December 31, 2015, the Canadian segment's operating income was negatively impacted by $1,270 and $3,936 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 nine months ended December 31, 2016.