v3.25.2
Note 4 - Segment Information
 3 Months Ended
Jun. 28, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 4 – SEGMENT INFORMATION

 

Operating segments represent a component of the Company that engages in business activities from which it may recognize revenues and incur expenses whose operating results are regularly reviewed by the public entity’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.  Once operating segments are identified, the Company determined which of those operating segments are required to be presented as reportable segments based on the quantitative thresholds.

 

Transcat has two reportable segments: Service and Distribution. Through its Service segment, the Company offers calibration, repair, inspection, analytical qualifications, preventative maintenance, consulting and other related services. Through its Distribution segment, the Company sells and rents national and proprietary brand instruments to customers globally. There are no intersegment revenues.

 

The Company's CODM is Lee Rudow, President & Chief Executive Officer.  Both of the Company's reportable segments are regularly reviewed by the CODM through monthly revenue, gross profit, operating income and consolidated financial forecast updates and through regular and monthly meetings with the executive leadership team. The primary financial measure used by the CODM for the Company's reportable segments is Operating Income, as reported in the Condensed Consolidated Statements of Income and is most consistent with the measurement principles used in the consolidated financial statements.  This is used by the CODM to make decisions on resource allocation, assess the performance of the business, and monitor budget versus actual results. Significant expenses reviewed by the CODM consist of cost of revenue and operating expenses, which individually are consistent in total with what is shown on the face of the Condensed Consolidated Statements of Income.

 

The CODM does not review assets in evaluating the results of the Company's segments, and therefore, such information is not presented.

 

Three Months Ended June 28, 2025:

            
  

Distribution

  

Service

  

Total

 

Revenue

 $27,280  $49,144  $76,424 

Cost of Revenue

  17,668   32,935   50,603 

Gross Profit

  9,612   16,209   25,821 

Operating Expenses

  6,840   13,643   20,483 

Operating Income

  2,772   2,566   5,338 

Capital Expenditures

  2,113   2,485   4,598 

Depreciation and Amortization

  1,842   3,763   5,605 

 

Three Months Ended June 29, 2024:

            
  

Distribution

  

Service

  

Total

 

Revenue

 $22,929  $43,778  $66,707 

Cost of Revenue

  15,157   28,895   44,052 

Gross Profit

  7,772   14,883   22,655 

Operating Expenses

  6,764   10,792   17,556 

Operating Income

  1,008   4,091   5,099 

Capital Expenditures

  2,221   1,453   3,674 

Depreciation and Amortization

  1,712   2,401   4,113 

 

 

The following table presents geographic data for the first quarter of fiscal years 2026, and 2025 (dollars in thousands):

 

  

First Quarter Ended

 
  

June 28,

  

June 29,

 
  

2025

  

2024

 

Geographic Data:

        

Revenues (1):

        

United States (2)

 $70,945  $60,741 

Canada

  4,429   4,472 

Other International

  1,050   1,494 

Total

 $76,424  $66,707 
         

Property and Equipment:

        

United States (2)

 $46,085  $40,346 

Canada

  5,234   5,588 

Other International

  842   20 

Total

 $52,161  $45,954 

 

 

 

 

(1)

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

(2)

United States includes Puerto Rico.