Note 4 - Segment Information

9 Months Ended

Dec. 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 third quarter and first nine months of fiscal year 2024 and fiscal year 2023 (dollars in thousands):

	Third Quarter Ended				Nine Months Ended
	December 23,		December 24,		December 23,		December 24,
	2023		2022		2023		2022
Revenue:
Service	$	41,509	$	35,977	$	122,793	$	105,120
Distribution		23,657		21,425		65,775		63,382
Total		65,166		57,402		188,568		168,502
Gross Profit:
Service		13,494		10,793		40,549		33,115
Distribution		7,442		5,607		19,222		16,090
Total		20,936		16,400		59,771		49,205
Operating Expenses:
Service (1)		10,528		8,957		33,649		26,240
Distribution (1)		6,114		4,280		15,545		12,572
Total		16,642		13,237		49,194		38,812
Operating Income:
Service		2,966		1,836		6,900		6,875
Distribution		1,328		1,327		3,677		3,518
Total		4,294		3,163		10,577		10,393
Unallocated Amounts:
Interest and Other Expense, net		23		1,039		1,742		1,732
Provision for Income Taxes		923		523		2,078		1,631
Total		946		1,562		3,820		3,363
Net Income	$	3,348	$	1,601	$	6,757	$	7,030
Geographic Data:
Revenues to Unaffiliated Customers (2)
United States (3)	$	59,090	$	51,209	$	170,466	$	151,241
Canada		4,083		4,221		12,226		12,075
Other International		1,993		1,972		5,876		5,186
Total	$	65,166	$	57,402	$	188,568	$	168,502

⁽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.