Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.19.3
Segment Information
 6 Months Ended
Sep. 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 Close Corporation ("Unitemp"), Industrial Process Insulators, Inc. ("IPI") and TPS (formerly known as Sumac Fabrication Co. Ltd.). THS (formerly known as CCI Thermal Technologies Inc.) 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. TPS provides temporary power products that differ from our core thermal solutions business. As we anticipate that our full year operating results from TPS will comprise less than 10% of our total sales and operating income, TPS 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, 2019
 
Three Months Ended September 30, 2018
 
Six Months Ended September 30, 2019
 
Six Months Ended
September 30, 2018
Sales to External Customers:
 

 
 

 
 
 
 
United States and Latin America
$
43,821

 
$
32,653

 
$
84,248

 
$
64,282

Canada
30,951

 
30,967

 
58,203

 
59,595

Europe, Middle East and Africa
15,688

 
15,564

 
29,027

 
36,367

Asia-Pacific
12,475

 
10,970

 
23,169

 
18,812

 
$
102,935

 
$
90,154

 
$
194,647

 
$
179,056

Inter-Segment Sales:
 
 
 
 
 
 
 
United States and Latin America
$
15,720

 
$
13,878

 
$
25,461

 
$
25,807

Canada
1,005

 
1,163

 
2,129

 
2,216

Europe, Middle East and Africa
1,033

 
858

 
1,594

 
1,963

Asia-Pacific
157

 
352

 
445

 
497

 
$
17,915

 
$
16,251

 
$
29,629

 
$
30,483

Depreciation Expense:
 
 
 
 
 
 
 
United States and Latin America
$
1,596

 
$
1,190

 
$
3,095

 
$
2,310

Canada
840

 
934

 
1,600

 
1,945

Europe, Middle East and Africa
125

 
108

 
264

 
217

Asia-Pacific
49

 
42

 
103

 
82

 
$
2,610

 
$
2,274

 
$
5,062

 
$
4,554

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

 
$
1,460

 
$
2,876

 
$
2,965

Canada
2,434

 
3,424

 
4,836

 
7,073

Europe, Middle East and Africa
323

 
346

 
650

 
703

Asia-Pacific
266

 
266

 
532

 
532

 
$
4,461

 
$
5,496

 
$
8,894

 
$
11,273

Income from operations:
 

 
 

 
 
 
 
United States and Latin America
$
5,333

 
$
2,849

 
$
6,336

 
$
5,585

Canada
5,282

 
$
4,410

 
8,777

 
7,695

Europe, Middle East and Africa
1,472

 
1,055

 
1,829

 
3,703

Asia-Pacific
2,527

 
1,773

 
4,097

 
2,669

Unallocated:


 


 


 


Stock compensation
(1,323
)
 
$
(1,085
)
 
(2,342
)
 
(2,089
)
Public company costs
(450
)
 
(330
)
 
(865
)
 
(651
)
 
$
12,841

 
$
8,672

 
$
17,832

 
$
16,912


 
September 30, 2019
 
March 31, 2019
Property, plant and equipment, net:
 
 
 
United States and Latin America
$
40,260

 
$
40,691

Canada
30,465

 
30,045

Europe, Middle East and Africa
3,144

 
3,497

Asia-Pacific
711

 
722

 
$
74,580

 
$
74,955

Total Assets:
 
 
 
United States and Latin America
$
242,683

 
$
230,149

Canada
293,879

 
298,233

Europe, Middle East and Africa
79,477

 
84,214

Asia-Pacific
39,651

 
43,166

 
$
655,690

 
$
655,762


Capital expenditures by geographic area were as follows:
 
 
Three Months Ended September 30, 2019
 
Three Months Ended September 30, 2018
 
Six Months Ended
September 30, 2019
 
Six Months Ended
September 30, 2018
Capital Expenditures:
 
 
 
 
 
 
 
 
United States and Latin America
 
$
827

 
$
1,912

 
$
1,988

 
$
3,431

Canada
 
1,196

 
847

 
1,584

 
2,058

Europe, Middle East and Africa
 
(17
)
 
26

 
151

 
144

Asia-Pacific
 
109

 
53

 
116

 
69

 
 
$
2,115

 
$
2,838

 
$
3,839

 
$
5,702