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Note 7 - Segment and Geographic Data
 12 Months Ended
Mar. 29, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 7 – SEGMENT AND GEOGRAPHIC DATA

 

Operating segments represent 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 are 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 our Service segment, we offer calibration, repair, inspection, analytical qualifications, preventative maintenance, consulting and other related services. Through our Distribution segment, we sell and rent national and proprietary brand instruments to customers globally. There are no intersegment revenues.

 

Our CODM is Lee Rudow, President & Chief Executive Officer.  Both of our reportable segments are regularly reviewed by the CODM through monthly revenue, gross profit, operating income and consolidated financial forecast updates and through regular and monthly meetings with the executive leadership team. 

 

The primary financial measure used by the CODM for our reportable segments is Operating Income, as reported in our Consolidated Statements of Income and is most consistent with the measurement principles used in the consolidated financial statements.  This is used by the CODM to make decisions on resource allocation, assess the performance of the business, and monitor budget versus actual results.

 

Significant expenses reviewed by the CODM consist of cost of revenue and operating expenses, which individually are consistent in total with what is shown on the face of the consolidated statements of income.

 

The CODM does not review assets in evaluating the results of our segments, and therefore, such information is not presented.

 

2025:

            
  

Distribution

  

Service

  

Total

 

Revenue

 $96,993  $181,428  $278,421 

Cost of Revenue

  68,199   120,769   188,968 

Gross Profit

  28,794   60,659   89,453 

Operating Expenses

  26,101   45,478   71,579 

Operating Income

  2,693   15,181   17,874 

Capital Expenditures

  5,189   8,008   13,197 

Depreciation and Amortization

  7,485   11,082   18,567 

 

2024:

            
  

Distribution

  

Service

  

Total

 

Revenue

 $89,956  $169,525  $259,481 

Cost of Revenue

  63,403   112,272   175,675 

Gross Profit

  26,553   57,253   83,806 

Operating Expenses

  21,815   42,210   64,025 

Operating Income

  4,738   15,043   19,781 

Capital Expenditures

  7,139   6,141   13,280 

Depreciation and Amortization

  4,284   9,193   13,477 

 

 

 

2023:

            
  

Distribution

  

Service

  

Total

 

Revenue

 $85,686  $144,883  $230,569 

Cost of Revenue

  63,969   98,245   162,214 

Gross Profit

  21,717   46,638   68,355 

Operating Expenses

  16,891   35,216   52,107 

Operating Income

  4,826   11,422   16,248 

Capital Expenditures

  3,845   5,569   9,414 

Depreciation and Amortization

  2,155   8,800   10,955 

 

The following table presents geographic data for fiscal years 2025, 2024 and 2023 (dollars in thousands):

 

  

FY 2025

  

FY 2024

  

FY 2023

 

Geographic Data:

            

Revenues to Unaffiliated Customers (1):

            

United States (2)

 $255,811  $235,117  $207,143 

Canada

  17,162   16,666   16,468 

Other International

  5,448   7,698   6,958 

Total

 $278,421  $259,481  $230,569 
             

Property and Equipment:

            

United States (2)

 $44,727  $33,507  $24,721 

Canada

  4,866   5,415   4,326 

Other International

  431   22   17 

Total

 $50,024  $38,944  $29,064 

 

 

(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.