Note 4 - Segment Information

9 Months Ended

Dec. 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 third quarter and first nine months of fiscal year 2023 and fiscal year 2022 (dollars in thousands):

	Third Quarter Ended				Nine Months Ended
	December 24,		December 25,		December 24,		December 25,
	2022		2021		2022		2021
Revenue:
Service	$	35,977	$	30,237	$	105,120	$	87,338
Distribution		21,425		20,665		63,382		61,741
Total		57,402		50,902		168,502		149,079
Gross Profit:
Service		10,793		8,983		33,115		27,447
Distribution		5,607		4,653		16,090		14,320
Total		16,400		13,636		49,205		41,767
Operating Expenses:
Service (1)		8,957		7,322		26,240		20,165
Distribution (1)		4,280		3,953		12,572		11,974
Total		13,237		11,275		38,812		32,139
Operating Income:
Service		1,836		1,661		6,875		7,282
Distribution		1,327		700		3,518		2,346
Total		3,163		2,361		10,393		9,628
Unallocated Amounts:
Interest and Other Expense, net		1,039		136		1,732		581
Provision for Income Taxes		523		596		1,631		715
Total		1,562		732		3,363		1,296
Net Income	$	1,601	$	1,629	$	7,030	$	8,332
Geographic Data:
Revenues to Unaffiliated Customers (2)
United States (3)	$	51,209	$	46,005	$	151,242	$	136,359
Canada		4,221		3,749		12,075		10,849
Other International		1,972		1,148		5,185		1,871
Total	$	57,402	$	50,902	$	168,502	$	149,079

(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.