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