FINANCIAL INFORMATION BY SEGMENT & GEOGRAPHIC AREA

12 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

FINANCIAL INFORMATION BY SEGMENT & GEOGRAPHIC AREA

FINANCIAL INFORMATION BY SEGMENT & GEOGRAPHIC AREA

The Company offers its broad array of measuring and cutting products to the market through multiple channels of distribution throughout the world. The Company’s products include precision tools, electronic gauges, gauge blocks, optical vision and laser measuring equipment, custom engineered granite solutions, tape measures, levels, chalk products, squares, band saw blades, hole saws, hacksaw blades, jig saw blades, reciprocating saw blades, M1® lubricant and precision ground flat stock. The Company reviews and manages its business geographically and has historically made decisions based on worldwide operations.

The North American segment’s operations include all manufacturing and sales in the U.S., Canada and Mexico. The International segment’s operations include all locations outside North America, primarily in Brazil, United Kingdom and China. The chief operating decision maker, who is the Company’s CEO, reviews operations on a geographical basis and decisions about where to invest the Company’s resources are made based on the current results and forecasts of operations in those geographies. Since the markets for the Company’s products are sufficiently different in North America than they are in the rest of the world and in view of the significant impact that currency fluctuation plays outside the U.S. on the revenue of the Company, the Company’s business review separates North America from operations outside North America. For this reason,

the Company is reflecting two operating segments that align with management’s review of operations and decisions to allocate resources.

Segment income is measured for internal reporting purposes by excluding corporate expenses, other income and expense including interest income and interest expense and income taxes. Corporate expenses consist primarily of executive compensation, certain professional fees, and costs associated with the Company’s global headquarters. Goodwill and debt are unallocated. Financial results for each reportable segment are as follows (in thousands):

	Year Ended June 30, 2022
	North America		International		Unallocated		Total
Sales1	$141,470		$112,231		$	—	$	253,701
Restructuring (expense)	$	—	(431)		—		(431)
Operating income	$	13,873	$	15,435	$	(7,753)	21,555
Capital expenditures and software development	3,321		5,686		—		9,007
Depreciation and amortization	3,881		2,749		—		6,630
Current assets4	50,473		68,057		14,523		133,053
Long-lived assets5	30,264		21,312		14,925		66,501

	Year Ended June 30, 2021
	North America		International		Unallocated		Total
Sales2	$	119,619	$	100,025	$	—	$	219,644
Restructuring	(1,059)		(2,606)		—		(3,664)
Operating (loss) income	13,144		10,821		(7,399)		16,566
Capital expenditures and software development	3,017		2,690		—		5,707
Depreciation and amortization	4,126		2,166		—		6,292
Current assets4	39,512		70,611		9,105		119,228
Long-lived assets5	31,006		15,187		18,818		65,011

	Year Ended June 30, 2020
	North America		International		Unallocated		Total
Sales3	$	121,834	$	79,617	$	—	$	201,451
Goodwill and intangibles impairment	(6,496)		—		—		(6,496)
Restructuring	(341)		(1,239)		—		(1,580)
Operating income (loss)	(2,055)		3,841		(7,090)		(5,303)
Capital expenditures and software development	6,992		3,608		—		10,600
Depreciation and amortization	4,942		2,253		—		7,195
Current assets4	35,030		55,610		13,458		104,098
Long-lived assets5	34,354		13,213		21,018		68,585

_______________

1.Excludes $3,497 of North American segment intercompany sales to the International segment and $18,819 intercompany sales of the International segment to the North American segment.

2 Excludes $4,323 of North American segment intercompany sales to the International segment and $12,765 intercompany sales of the International segment to the North American segment.

3.Excludes $4,040 of North American segment intercompany sales to the International segment and $13,820 intercompany sales of the International segment to the North American segment. 

4.Current assets primarily consist of accounts receivable, inventories and prepaid expenses. Assets not allocated to the segments include cash and cash equivalents.

5.Long lived assets consist of property, plant and equipment, net taxes receivable, deferred tax assets, net intangible assets & goodwill.

Geographic information about the Company’s sales and long-lived assets are as follows (in thousands):

Sales	Year Ended June 30,
	2022		2021		2020
North America
United States	$	133,615	$	111,935	$	113,989
Canada & Mexico	7,855		7,684		7,845
	141,470		119,619		121,834
International
Brazil	75,873		65,198		49,254
United Kingdom	20,331		19,783		18,869
China	7,840		7,746		6,048
Australia & New Zealand	8,187		7,298		5,446
	112,231		100,025		79,617
Total Sales	$	253,701	$	219,644	$	201,451

Long-lived Assets	Year Ended June 30,
	2022		2021		2020
North America
United States	$	30,202	$	30,935	$	34,264
Canada & Mexico	62		71		90
	30,264		31,006		34,354
International
Brazil	15,359		10,796		8,050
United Kingdom	362		1,320		1,948
China	5,239		2,713		2,881
Australia & New Zealand	352		358		334
	21,312		15,187		13,213
Total Long-Lived Assets	$	51,576	$	46,193	$	47,567