Note 4 - Segment Information

6 Months Ended

Sep. 23, 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 second quarter and first six months of fiscal year 2024 and fiscal year 2023 (dollars in thousands):

	Second Quarter Ended				Six Months Ended
	September 23,		September 24,		September 23,		September 24,
	2023		2022		2023		2022
Revenue:
Service	$	41,431	$	35,267	$	81,284	$	69,143
Distribution		21,373		21,172		42,118		41,957
Total		62,804		56,439		123,402		111,100
Gross Profit:
Service		14,084		11,487		27,055		22,322
Distribution		6,041		5,280		11,780		10,483
Total		20,125		16,767		38,835		32,805
Operating Expenses:
Service (1)		13,342		8,980		23,121		17,283
Distribution (1)		5,140		4,161		9,431		8,292
Total		18,482		13,141		32,552		25,575
Operating Income:
Service		742		2,507		3,934		5,039
Distribution		901		1,119		2,349		2,191
Total		1,643		3,626		6,283		7,230
Unallocated Amounts:
Interest and Other Expense, net		841		537		1,719		693
Provision for Income Taxes		342		732		1,155		1,108
Total		1,183		1,269		2,874		1,801
Net Income	$	460	$	2,357	$	3,409	$	5,429
Geographic Data:
Revenues to Unaffiliated Customers (2)
United States (3)	$	57,119	$	51,036	$	111,376	$	100,033
Canada		3,896		3,868		8,143		7,855
Other International		1,789		1,535		3,883		3,212
Total	$	62,804	$	56,439	$	123,402	$	111,100

⁽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.