Note 4 - Segment Information

3 Months Ended

Jun. 24, 2023

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 first quarter of fiscal year 2024 and fiscal year 2023 (dollars in thousands):

	First Quarter Ended
	June 24,		June 25,
	2023		2022
Revenue:
Service	$	39,853	$	33,876
Distribution		20,745		20,785
Total		60,598		54,661
Gross Profit:
Service		12,971		10,835
Distribution		5,739		5,203
Total		18,710		16,038
Operating Expenses:
Service (1)		9,779		8,303
Distribution (1)		4,291		4,131
Total		14,070		12,434
Operating Income:
Service		3,192		2,532
Distribution		1,448		1,072
Total		4,640		3,604
Unallocated Amounts:
Interest and Other Expense, net		878		156
Provision for Income Taxes		813		376
Total		1,691		532
Net Income	$	2,949	$	3,072
Geographic Data:
Revenues to Unaffiliated Customers (2)
United States (3)	$	54,257	$	48,998
Canada		4,247		3,986
Other International		2,094		1,677
Total	$	60,598	$	54,661

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

⁽²⁾ Revenues 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.