v3.26.1
Segment Information
 12 Months Ended
Mar. 31, 2026
Segment Information [Abstract]  
Segment Information
20. Segment Information
 
The Company has identified its Chief Executive Officer as its chief operating decision maker (“CODM”). The Company has identified its operating segments based on the nature of the products the Company sells, the Company’s organizational and management reporting structure, and the operating results that are regularly reviewed by the Company’s CODM to make decisions about the resources to be allocated to the business units and to assess performance. The CODM primarily uses operating income to evaluate the performance of the Company’s operating segments and to allocate resources.
 
The Company’s three operating segments are:
 
●
Hard Parts, which include (i) light duty rotating electric products such as alternators and starters and (ii) brake-related products, which includes brake calipers, brake boosters, brake rotors, brake pads and brake master cylinders, and wheel hub assemblies and bearings,
●
Test Solutions and Diagnostic Equipment, which includes (i) applications for combustion engine vehicles, including bench-top testers for alternators and starters, (ii) equipment for the pre- and post-production of electric vehicles, and (iii) software emulation of power system applications for the electrification of all forms of transportation (including automobiles, trucks, the emerging electrification of systems within the aerospace industry, and electric vehicle charging stations), and
●
Heavy Duty, which includes non-discretionary automotive aftermarket replacement hard parts for heavy-duty truck, industrial, marine, and agricultural applications.
The Company’s Hard Parts operating segment meets the criteria of a reportable segment. The Test Solutions and Diagnostic Equipment and Heavy Duty segments are not material, and are not required to be separately reported.
 
Financial information relating to the Company’s segments is as follows:
 
             
    Years Ended March 31,      
    2026     2025     2024  
                
Net sales to external customers for Hard Parts reportable segment
 $741,243,000   $707,210,000   $669,904,000 
Intersegment sales for Hard Parts reportable segment
  701,000    1,016,000    895,000 
Total net sales for Hard Parts reportable segment
  741,944,000    708,226,000    670,799,000 
                
Reconciliation of net sales
              
Other net sales (1)
  48,563,000    50,144,000    47,780,000 
Elimination of intersegment net sales
  (701,000)    (1,016,000)    (895,000) 
Total consolidated net sales
 $789,806,000   $757,354,000   $717,684,000 
                
Less (2):
              
Material, labor, and overhead expenses
  460,623,000    465,656,000    450,913,000 
Logistic expenses (3)
  131,205,000    99,264,000    92,969,000 
Revaluation of cores on customers' shelves
  3,590,000    2,805,000    5,353,000 
Foreign exchange impact of lease liabilities and forward contracts
  (8,924,000)    15,892,000    (3,814,000) 
Other segment items (4)
  88,028,000    83,693,000    76,878,000 
Total operating income for Hard Parts reportable segment
 $67,422,000   $40,916,000   $48,500,000 
                
Reconciliation of profit (loss)
              
Other operating loss (1)
  (1,624,000)    (1,064,000)    (2,431,000) 
Elimination of intersegment operating income
  37,000    71,000    51,000 
Interest expense, net
  (46,696,000)    (55,550,000)    (60,040,000) 
Change in fair value of compound net derivative liability
  1,130,000    (60,000)    1,020,000 
Loss on extinguishment of debt
   -      -     (168,000) 
Total consolidated income (loss) before income tax expense
 $20,269,000   $(15,687,000)   $(13,068,000) 
                
Reconciliations of other significant items and assets:
              
                
Depreciation and amortization
              
Depreciation and amortization for Hard Parts reportable segment (5)
 $8,454,000   $9,579,000   $10,371,000 
Other depreciation and amortization (1)
  1,334,000    821,000    1,248,000 
Total consolidated depreciation and amortization
 $9,788,000   $10,400,000   $11,619,000 
                
Capital Expenditures
              
Captial expenditures for Hard Parts reportable segment
 $2,136,000   $3,445,000   $621,000 
Other capital expenditures (1)
  1,560,000    1,133,000    379,000 
Total consolidated capital expenditures
 $3,696,000   $4,578,000   $1,000,000 
                
Assets
 
March 31, 2026
   
March 31, 2025
      
Total assets for Hard Parts reportable segment
 $1,037,721,000   $967,178,000      
Other assets (1)
  54,638,000    58,355,000      
Elimination of intersegment assets
  (72,922,000)    (67,897,000)      
Total consolidated assets
 $1,019,437,000   $957,636,000      
(1)
Net sales, operating loss, depreciation and amortization, capital expenditures, and assets from segments below the quantitative threshold are attributable to the Company’s Test Solutions and Diagnostic Equipment and the Heavy Duty operating segments. Neither of these two operating segments has ever met any of the quantitative thresholds for determining reportable segments.
(2)
The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM for the Company’s Hard Parts reportable segment. Intersegment expenses are included within the amounts shown.
(3)
Logistic expenses include freight, tariffs, and customs duties.
(4)
Other segment items include general and administrative expenses, sales and marketing expenses, and research and development expenses.
(5)
Depreciation and amortization for the Company’s Hard Parts reportable segment are included within material, labor, and overhead expenses and other segment items.