v3.26.1
Note 7 - Segment and Geographic Data
 12 Months Ended
Mar. 28, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

NOTE 7 – SEGMENT AND GEOGRAPHIC DATA

 

An operating segment is 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 were 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 the President & Chief Executive Officer. Both of the Company's reportable segments are regularly reviewed by the CODM through monthly revenue, operating income and consolidated financial forecast updates and through regular and monthly meetings with the executive leadership team. The primary financial measures used by the CODM for the Company's reportable segments are revenue and operating income (loss). These measures are used by the CODM to make decisions on resource allocation, assess the performance of the business, and monitor budget versus actual results. Significant expenses that are regularly reviewed by the CODM include segment cost of revenue, segment selling, general and administrative expenses and various items affecting comparability, which are primarily related to the Company's acquisitive nature. The primary drivers of segment cost of revenue include labor, product and facilities costs, and the primary drivers of segment selling, general and administrative expenses include payroll, benefit and incentive costs. Items affecting comparability include depreciation, amortization, executive transition costs, transaction expenses and non-cash stock compensation.

 

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

 

Year Ended March 28, 2026:

   
 

Distribution

Service

Total

Revenue

$ 114,668

$ 217,209

$ 331,877

Less Significant Segment Expenses

   

Cost of Revenue

76,896

146,677

 

Selling, Marketing & Warehouse Expenses

15,073

27,692

 

General and Administrative Expenses

14,379

37,897

 

Operating Income

$ 8,320

$ 4,943

$ 13,263

Reconciliation of Segment Operating Income to Income Before Taxes

   

Interest Expense

  

4,602

Interest Income

  

(23)

Other Expense

  

695

Income Before Provision For Income Taxes

  

$ 7,989

    

Capital Expenditures

$ 6,779

$ 8,519

 

Depreciation and Amortization

$ 7,526

$ 18,646

 

 

Year Ended March 29, 2025:

   
 

Distribution

Service

Total

Revenue

$ 96,993

$ 181,428

$ 278,421

Less Significant Segment Expenses

   

Cost of Revenue

68,199

120,769

 

Selling, Marketing & Warehouse Expenses

14,328

19,013

 

General and Administrative Expenses

11,772

26,466

 

Operating Income

$ 2,694

$ 15,180

$ 17,874

Reconciliation of Segment Operating Income to Income Before Taxes

   

Interest Expense

  

798

Interest Income

  

(825)

Other Income

  

(425)

Income Before Provision For Income Taxes

  

$ 18,326

    

Capital Expenditures

$ 8,007

$ 5,190

 

Depreciation and Amortization

$ 7,485

$ 11,082

 

 

Year Ended March 30, 2024:

   
 

Distribution

Service

Total

Revenue

$ 89,956

$ 169,525

$ 259,481

Less Significant Segment Expenses

   

Cost of Revenue

63,403

112,272

 

Selling, Marketing & Warehouse Expenses

11,769

16,941

 

General and Administrative Expenses

10,046

25,269

 

Operating Income

$ 4,738

$ 15,043

$ 19,781

Reconciliation of Segment Operating Income to Income Before Taxes

   

Interest Expense

  

1,835

Interest Income

  

(808)

Other Expense

  

315

Income Before Provision For Income Taxes

  

$ 18,439

    

Capital Expenditures

$ 7,139

$ 6,141

 

Depreciation and Amortization

$ 4,284

$ 9,193

 

 

The following table presents geographic data for fiscal years 2026, 2025 and 2024 (dollars in thousands):

 

  

FY 2026

  

FY 2025

  

FY 2024

 

Geographic Data:

            

Revenues to Unaffiliated Customers (1):

            

United States (2)

 $309,883  $255,811  $235,117 

Canada

  17,275   17,162   16,666 

Other International

  4,719   5,448   7,698 

Total

 $331,877  $278,421  $259,481 
             

Property and Equipment:

            

United States (2)

 $51,891  $44,727  $33,507 

Canada

  4,830   4,866   5,415 

Other International

  1,080   431   22 

Total

 $57,801  $50,024  $38,944 

 

 

(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.