v3.26.1
Segment Information
 3 Months Ended
Jun. 30, 2026
Segment Information [Abstract]  
Segment Information
18. 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 electrical 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:
 
         
   
Three Months Ended
June 30,
 
   
2026
    
2025
 
           
Net sales to external customers for Hard Parts reportable segment
 $157,363,000   $174,889,000 
Intersegment sales for Hard Parts reportable segment
  41,000    258,000 
Total net sales for Hard Parts reportable segment
 $157,404,000   $175,147,000 
           
Reconciliation of net sales
         
Other net sales (1)
 $10,658,000   $13,475,000 
Elimination of intersegment net sales
  (41,000)    (258,000) 
Total consolidated net sales
 $168,021,000   $188,364,000 
           
Less (2):
         
Material, labor, and overhead expenses
 $99,099,000   $113,895,000 
Logistic expenses (3)
  31,540,000    30,665,000 
Revaluation of cores on customers' shelves
  705,000    1,026,000 
Foreign exchange impact of lease liabilities and forward contracts
  (1,597,000)    (8,348,000) 
Other segment items (4)
  21,721,000    19,477,000 
Total operating income for Hard Parts reportable segment
 $5,936,000   $18,432,000 
           
Reconciliation of profit (loss)
         
Other operating (loss) income (1)
  (2,458,000)    1,633,000 
Elimination of intersegment operating income
  54,000    4,000 
Interest expense, net
  (12,044,000)    (12,812,000) 
Change in fair value of compound net derivative liability
  (1,540,000)    (1,790,000) 
Total consolidated (loss) income before income tax expense
 $(10,052,000)   $5,467,000 
           
Reconciliations of other significant items and assets:
         
           
Depreciation and amortization
         
Depreciation and amortization for Hard Parts reportable segment (5)
 $2,018,000   $2,232,000 
Other depreciation and amortization (1)
  724,000    217,000 
Total consolidated depreciation and amortization
 $2,742,000   $2,449,000 
           
Capital Expenditures
         
Captial expenditures for Hard Parts reportable segment
 $1,074,000   $394,000 
Other capital expenditures (1)
  34,000    413,000 
Total consolidated capital expenditures
 $1,108,000   $807,000 
 
Assets
 
June 30, 2026
   
March 31, 2026
 
Total assets for Hard Parts reportable segment
 $1,036,994,000   $1,037,721,000 
Other assets (1)
  54,002,000    54,638,000 
Elimination of intersegment assets
  (80,972,000)    (72,922,000) 
Total consolidated assets
 $1,010,024,000   $1,019,437,000 
 
(1)
Net sales, operating income, 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.