Note 4 - Segment Information

6 Months Ended

Sep. 24, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 4 – SEGMENT INFORMATION

The basis for determining our operating segments is the manner in which financial information is used in monitoring our operations. Transcat has two reportable segments: Service and Distribution. Through our Service segment, we offer calibration, repair, inspection, analytical qualifications, preventative maintenance, consulting and other related services. Through our Distribution segment, we sell and rent national and proprietary brand instruments to customers globally. The Company has no inter-segment sales. We believe that reporting performance at the operating income level is the best indicator of segment performance. The following table presents segment and geographic data for the second quarter and first six months of fiscal year 2023 and fiscal year 2022 (dollars in thousands):

	Second Quarter Ended				Six Months Ended
	September 24,		September 25,		September 24,		September 25,
	2022		2021		2022		2021
Revenue:
Service	$	35,267	$	29,544	$	69,143	$	57,101
Distribution		21,172		20,843		41,957		41,076
Total		56,439		50,387		111,100		98,177
Gross Profit:
Service		11,487		9,712		22,322		18,464
Distribution		5,280		4,899		10,483		9,667
Total		16,767		14,611		32,805		28,131
Operating Expenses:
Service (1)		8,980		7,065		17,283		12,843
Distribution (1)		4,161		3,968		8,292		8,021
Total		13,141		11,033		25,575		20,864
Operating Income:
Service		2,507		2,647		5,039		5,621
Distribution		1,119		931		2,191		1,646
Total		3,626		3,578		7,230		7,267
Unallocated Amounts:
Interest and Other Expense, net		537		250		693		445
Provision for Income Taxes		732		313		1,108		119
Total		1,269		563		1,801		564
Net Income	$	2,357	$	3,015	$	5,429	$	6,703
Geographic Data:
Revenues to Unaffiliated Customers (2)
United States (3)	$	51,036	$	46,441	$	100,033	$	90,353
Canada		3,868		3,454		7,855		7,100
Other International		1,535		492		3,212		724
Total	$	56,439	$	50,387	$	111,100	$	98,177

(1) Operating expense allocations between segments are based on actual amounts, a percentage of revenues, headcount, and management’s estimates.

(2) Revenues to unaffiliated customers are attributed to the countries based on the destination of a product shipment or the location where service is rendered.

(3) United States includes Puerto Rico.