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Note 3 - Segment Reporting
 12 Months Ended
May 01, 2021
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 3. Segment Reporting

 

We organize and manage our business by the following five segments which meet the definition of reportable segments under ASC 280-10, Segment Reporting: Commercial, Live Events, High School Park and Recreation, Transportation, and International. These segments are based on the customer type or geography and are the same as our business units. Separate financial information is available and regularly evaluated by our chief operating decision-maker (CODM), who is our president and chief executive officer, in making resource allocation decisions for our segments. Our CODM evaluates segment performance to the GAAP measure of gross profit.

 

Our Commercial business unit primarily consists of sales of our integrated video display systems, digital billboards, Galaxy® and Fuelight™ product lines, and dynamic messaging systems to resellers (primarily sign companies), out-of-home ("OOH") companies, national retailers, quick-serve restaurants, casinos, shopping centers, cruise ships, commercial building owners, and petroleum retailers. Our Live Events business unit primarily consists of sales of integrated scoring and video display systems to college and professional sports facilities and convention centers and sales of our mobile display technology to video rental organizations and other live events type venues. Our High School Park and Recreation business unit primarily consists of sales of scoring systems, Galaxy® displays and video display systems to primary and secondary education facilities and resellers (primarily sign companies). Our Transportation business unit primarily consists of sales of intelligent transportation systems dynamic messaging signs for road management, mass transit, and aviation applications and other electronic signage for advertising and way-finding needs, which includes our Vanguard® and Galaxy® product lines and other intelligent transportation systems dynamic message signs, to governmental transportation departments, transportation industry contractors, airlines and other transportation related customers. Our International business unit consists of sales of all product lines outside the United States and Canada. In our International business unit, we focus on product lines related to integrated scoring and video display systems for sports and commercial applications, OOH advertising products, architectural lighting, and transportation related products for sale outside of the United States and Canada to the related type of company, including sports and commercial business facilities, OOH companies, and governmental transportation agencies.

 

Assets are not allocated to the segments. Depreciation and amortization are allocated to each segment based on various financial measures; however, some depreciation and amortization are corporate in nature and remain unallocated. Our segments follow the same accounting policies as those described in "Note 1. Nature of Business and Summary of Significant Accounting Policies." Some expenses or services are not directly allocable to a sale or segment or the resources and related expenses are shared across business segment areas. These expenses are allocated using estimates and allocation methodologies based on some financial measures and professional judgment. Shared or unabsorbed manufacturing costs are allocated to the business unit benefiting most from that manufacturing location's production capabilities. Shared or unabsorbed costs of domestic field sales and services infrastructure, including most field administrative staff, are allocated to the Commercial, Live Events, High School Park and Recreation, and Transportation business units based on cost of sales. Shared manufacturing, buildings and utilities, and procurement costs are allocated based on payroll dollars, square footage and various other financial measures in the segment analysis.

 

We do not maintain information on sales by products; therefore, disclosure of such information is not practical.

 

The following table sets forth certain financial information for each of our five reporting segments for the periods indicated:

 

  

Year Ended

 
  May 1, 2021  May 2, 2020  April 27, 2019 

Net sales:

            

Commercial

 $127,300  $152,627  $148,833 

Live Events

  143,049   196,591   170,952 

High School Park and Recreation

  91,557   96,414   91,187 

Transportation

  58,284   70,139   64,391 

International

  61,843   93,161   94,341 
Total company net sales  482,033   608,932   569,704 
             

Gross profit:

            

Commercial

  33,072   29,246   31,785 

Live Events

  24,397   39,518   32,164 

High School Park and Recreation

  31,472   28,874   26,858 

Transportation

  20,329   23,910   22,525 

International

  11,313   17,152   16,962 
   120,583   138,700   130,294 
             

Operating expenses

            

Selling

  48,649   65,902   64,648 

General and administrative

  27,980   35,193   34,817 

Product design and development

  26,846   37,772   35,557 
   103,475   138,867   135,022 

Operating income (loss)

  17,108   (167)  (4,728)
             

Nonoperating income (expense):

            

Interest income

  230   805   1,031 

Interest expense

  (295)  (106)  (160)

Other (expense) income, net

  (2,983)  (541)  (1,087)

Income (loss) before income taxes

 $14,060  $(9) $(4,944)
             

Depreciation and amortization:

            

Commercial

 $3,037  $3,682  $4,795 

Live Events

  5,798   5,605   5,194 

High School Park and Recreation

  1,942   2,025   1,965 

Transportation

  979   1,029   1,102 

International

  2,887   2,460   2,829 

Unallocated corporate depreciation

  2,434   2,917   2,750 
  $17,077  $17,718  $18,635 

 

No single geographic area comprises a material amount of our net sales or property and equipment, net of accumulated depreciation, other than the United States. The following table presents information about net sales and property and equipment, net of accumulated depreciation, in the United States and elsewhere:

 

  

Year Ended

 
  May 1, 2021  May 2, 2020  April 27, 2019 

Net sales:

            

United States

 $413,211  $504,931  $460,099 

Outside United States

  68,822   104,001   109,605 
  $482,033  $608,932  $569,704 

Property and equipment, net of accumulated depreciation:

            

United States

 $50,130  $58,422  $59,192 

Outside United States

  8,552   9,062   6,122 
  $58,682  $67,484  $65,314 

 

We have numerous customers worldwide for sales of our products and services, and no customer accounted for 10% or more of net sales; therefore, we are not economically dependent on a limited number of customers for the sale of our products and services.

 

We have numerous raw material and component suppliers, and no supplier accounts for 10% or more of our cost of sales; however, we have a number of single-source suppliers that could limit our supply or cause delays in obtaining raw material and components needed in manufacturing.