Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.7.0.1
Segment Information
 3 Months Ended
Jun. 30, 2017
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. Since March 2015, 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 June 30, 2017
 
Three Months Ended June 30, 2016
Sales to External Customers:
 
 
 
United States
$
23,551

 
$
30,154

Canada
12,099

 
10,109

Europe
10,617

 
13,763

Asia
5,469

 
9,370

 
$
51,736

 
$
63,396

Inter-Segment Sales:
 
 
 
United States
$
9,582

 
$
10,639

Canada
1,464

 
589

Europe
361

 
601

Asia
373

 
128

 
$
11,780

 
$
11,957

Depreciation Expense:
 
 
 
United States
986

 
861

Canada
605

 
452

Europe
90

 
69

Asia
32

 
32

 
$
1,713

 
$
1,414

Amortization Expense:
 
 
 
United States
$
1,504

 
$
1,314

Canada
840

 
901

Europe
329

 
335

Asia
266

 
266

 
$
2,939

 
$
2,816

Income from operations:
 
 
 
United States
$
(1,047
)
 
$
39

Canada
3,448

 
1,733

Europe
(146
)
 
1,651

Asia
462

 
2,044

Unallocated:


 


Stock compensation
(785
)
 
(906
)
Public company costs
(374
)
 
(371
)
 
$
1,558

 
$
4,190


 
June 30, 2017
 
March 31, 2017
Property, plant and equipment, net:
 
 
 
United States
$
34,925

 
$
34,563

Canada
4,632

 
4,674

Europe
3,544

 
3,532

Asia
493

 
497

 
$
43,594

 
$
43,266

Total Assets:
 
 
 
United States
$
177,269

 
$
186,300

Canada
142,255

 
136,688

Europe
80,463

 
80,589

Asia
49,458

 
50,503

 
$
449,445

 
$
454,080