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Note 4 - Segment Information
 6 Months Ended
Sep. 27, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 4 – SEGMENT INFORMATION

 

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 its Service segment, the Company offers calibration, repair, inspection, analytical qualifications, preventative maintenance, consulting and other related services. Through its Distribution segment, the Company sells and rents national and proprietary brand instruments to customers globally. There are no intersegment revenues.

 

The Company's CODM is Lee Rudow, President & Chief Executive Officer.  Both of the Company's 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 the Company's reportable segments is Operating Income, as reported in the Condensed 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 Condensed Consolidated Statements of Income.

 

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

 

Three Months Ended September 27, 2025:

            
  

Distribution

  

Service

  

Total

 

Revenue

 $29,436  $52,836  $82,272 

Cost of Revenue

  19,667   35,843   55,510 

Gross Profit

  9,769   16,993   26,762 

Operating Expenses

  7,184   16,073   23,257 

Operating Income

  2,585   920   3,505 

Capital Expenditures

  1,240   3,192   4,432 

Depreciation and Amortization

  1,925   4,562   6,487 

 

Three Months Ended September 28, 2024:

            
  

Distribution

  

Service

  

Total

 

Revenue

 $23,743  $44,083  $67,826 

Cost of Revenue

  17,128   29,492   46,620 

Gross Profit

  6,615   14,591   21,206 

Operating Expenses

  6,584   10,887   17,471 

Operating Income

  31   3,704   3,735 

Capital Expenditures

  2,540   1,419   3,959 

Depreciation and Amortization

  1,944   2,455   4,399 

 

Six Months Ended September 27, 2025:

            
  

Distribution

  

Service

  

Total

 

Revenue

 $56,716  $101,980  $158,696 

Cost of Revenue

  37,335   68,778   106,113 

Gross Profit

  19,381   33,202   52,583 

Operating Expenses

  14,025   29,715   43,740 

Operating Income

  5,356   3,487   8,843 

Capital Expenditures

  3,353   5,677   9,030 

Depreciation and Amortization

  3,767   8,325   12,092 

 

Six Months Ended September 28, 2024:

            
  

Distribution

  

Service

  

Total

 

Revenue

 $46,672  $87,861  $134,533 

Cost of Revenue

  32,285   58,387   90,672 

Gross Profit

  14,387   29,474   43,861 

Operating Expenses

  13,347   21,680   35,027 

Operating Income

  1,040   7,794   8,834 

Capital Expenditures

  4,761   2,872   7,633 

Depreciation and Amortization

  3,655   4,857   8,512 

 

The following tables present geographic data for the second quarter and first six months of fiscal year 2026 and fiscal year 2025 (dollars in thousands):

 

  

Second Quarter Ended

  

Six Months Ended

 
  

September 27,

  

September 28,

  

September 27,

  

September 28,

 
  

2025

  

2024

  

2025

  

2024

 

Geographic Data:

                

Revenues (1):

                

United States (2)

 $76,623  $62,492  $147,569  $123,232 

Canada

  4,229   3,794   8,658   8,266 

Other International

  1,420   1,540   2,469   3,035 

Total

 $82,272  $67,826  $158,696  $134,533 

 

  

Second Quarter Ended

 
  

September 27,

  

September 28,

 
  

2025

  

2024

 

Property and Equipment:

        

United States (2)

 $52,033  $41,699 

Canada

  4,995   5,618 

Other International

  1,099   176 

Total

 $58,127  $47,493 

 

(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.