Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.10.0.1
Segment Information
 9 Months Ended
Dec. 31, 2018
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) 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 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, 2018
 
Three Months Ended December 31, 2017
 
Nine Months Ended December 31, 2018
 
Nine Months Ended
December 31, 2017
Sales to External Customers:
 

 
 

 
 
 
 
United States and Latin America
$
51,052

 
$
32,828

 
$
115,334

 
$
77,697

Canada
33,466

 
30,178

 
93,061

 
57,714

Europe, Middle East and Africa
22,460

 
20,309

 
58,827

 
48,373

Asia-Pacific
12,378

 
9,345

 
31,190

 
22,243

 
$
119,356

 
$
92,660

 
$
298,412

 
$
206,027

Inter-Segment Sales:
 
 
 
 
 
 
 
United States and Latin America
$
12,807

 
$
13,232

 
$
38,614

 
$
37,123

Canada
1,613

 
1,862

 
3,829

 
5,221

Europe, Middle East and Africa
866

 
487

 
2,829

 
1,210

Asia-Pacific
204

 
546

 
701

 
1,093

 
$
15,490

 
$
16,127

 
$
45,973

 
$
44,647

Depreciation Expense:
 
 
 
 
 
 
 
United States and Latin America
$
1,264

 
$
1,126

 
$
3,574

 
$
3,190

Canada
888

 
897

 
2,833

 
2,137

Europe, Middle East and Africa
114

 
133

 
331

 
347

Asia-Pacific
47

 
35

 
129

 
99

 
$
2,313

 
$
2,191

 
$
6,867

 
$
5,773

Amortization Expense:
 
 
 
 
 
 
 
United States and Latin America
$
1,438

 
$
1,505

 
$
4,403

 
$
4,515

Canada
2,866

 
2,632

 
9,939

 
4,373

Europe, Middle East and Africa
317

 
351

 
1,020

 
1,030

Asia-Pacific
266

 
266

 
798

 
798

 
$
4,887

 
$
4,754

 
$
16,160

 
$
10,716

Income (loss) from operations:
 

 
 

 
 
 
 
United States and Latin America
$
7,763

 
$
340

 
$
13,348

 
$
(1,757
)
Canada
5,998

 
7,622

 
13,693

 
17,619

Europe, Middle East and Africa
3,827

 
2,008

 
7,530

 
4,240

Asia-Pacific
1,729

 
1,444

 
4,398

 
2,751

Unallocated:


 


 


 


Stock compensation
(1,041
)
 
(895
)
 
(3,130
)
 
(2,627
)
Public company costs
(389
)
 
(309
)
 
(1,040
)
 
(1,041
)
 
$
17,887

 
$
10,210

 
$
34,799

 
$
19,185


 
December 31, 2018
 
March 31, 2018
Property, plant and equipment, net:
 
 
 
United States and Latin America
$
40,254

 
$
37,112

Canada
30,211

 
33,076

Europe, Middle East and Africa
3,380

 
3,567

Asia-Pacific
679

 
730

 
$
74,524

 
$
74,485

Total Assets:
 
 
 
United States and Latin America
$
231,420

 
$
213,099

Canada
289,015

 
317,635

Europe, Middle East and Africa
88,424

 
89,379

Asia-Pacific
44,941

 
42,364

 
$
653,800

 
$
662,477