Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.19.2
Segment Information
 3 Months Ended
Jun. 30, 2019
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 June 30, 2019
 
Three Months Ended
June 30, 2018
Sales to External Customers:
 
 
 
United States and Latin America
$
40,427

 
$
31,629

Canada
27,252

 
28,628

Europe, Middle East and Africa
13,339

 
20,803

Asia-Pacific
10,694

 
7,842

 
$
91,712

 
$
88,902

Inter-Segment Sales:
 
 
 
United States and Latin America
$
9,741

 
$
11,929

Canada
1,124

 
1,053

Europe, Middle East and Africa
561

 
1,105

Asia-Pacific
288

 
145

 
$
11,714

 
$
14,232

Depreciation Expense:
 
 
 
United States and Latin America
$
1,499

 
$
1,120

Canada
760

 
1,010

Europe, Middle East and Africa
139

 
109

Asia-Pacific
54

 
40

 
$
2,452

 
$
2,279

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

 
$
1,505

Canada
2,402

 
3,649

Europe, Middle East and Africa
327

 
357

Asia-Pacific
266

 
266

 
$
4,433

 
$
5,777

Income (loss) from operations:
 
 
 
United States and Latin America
$
1,003

 
$
2,736

Canada
3,495

 
3,285

Europe, Middle East and Africa
357

 
2,648

Asia-Pacific
1,570

 
896

Unallocated:


 


Stock compensation
(1,019
)
 
(1,004
)
Public company costs
(415
)
 
(321
)
 
$
4,991

 
$
8,240


 
June 30, 2019
 
March 31, 2019
Property, plant and equipment, net:
 
 
 
United States and Latin America
$
40,500

 
$
40,691

Canada
30,129

 
30,045

Europe, Middle East and Africa
3,647

 
3,497

Asia-Pacific
672

 
722

 
$
74,948

 
$
74,955

Total Assets:
 
 
 
United States and Latin America
$
245,454

 
$
230,149

Canada
304,828

 
298,233

Europe, Middle East and Africa
86,077

 
84,214

Asia-Pacific
34,867

 
43,166

 
$
671,226

 
$
655,762


Capital expenditures by geographic area were as follows:
 
 
Three Months Ended June 30, 2019
 
Three Months Ended June 30, 2018
Capital Expenditures:
 
 
 
 
United States and Latin America
 
$
1,162

 
$
1,521

Canada
 
388

 
1,211

Europe, Middle East and Africa
 
169

 
118

Asia-Pacific
 
7

 
16

 
 
$
1,726

 
$
2,866