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Segment and Geographic Information
 12 Months Ended
May 29, 2021
Segment Reporting [Abstract]  
Segment and Geographic Information

9.

SEGMENT AND GEOGRAPHIC INFORMATION

In accordance with ASC 280-10, Segment Reporting, we have identified three reportable segments: PMT, Canvys and Healthcare.

PMT combines our core engineered solutions capabilities, power grid and microwave tube business with new disruptive RF, Wireless and Power technologies. As a designer, manufacturer, technology partner and authorized distributor, PMT’s strategy is to provide specialized technical expertise and engineered solutions based on our core engineering and manufacturing capabilities on a global basis. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket technical service and repair—all through our existing global infrastructure. PMT’s focus is on products for power, RF and microwave applications for customers in 5G, alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets. PMT focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar and radiation oncology. PMT also offers its customers technical services for both microwave and industrial equipment.

Canvys provides customized display solutions serving the corporate enterprise, financial, healthcare, industrial and medical original equipment manufacturers markets. Our engineers design, manufacture, source and support a full spectrum of solutions to

match the needs of our customers. We offer long term availability and proven custom display solutions that include touch screens, protective panels, custom enclosures, All-In-One computers, specialized cabinet finishes and application specific software packages and certification services. We partner with both private label manufacturing companies and leading branded hardware vendors to offer the highest quality display and touch solutions and customized computing platforms.

Healthcare manufactures, repairs, refurbishes and distributes high value replacement parts and equipment for the healthcare market including hospitals, medical centers, asset management companies, independent service organizations and multi-vendor service providers. Products include diagnostic imaging replacement parts for CT and MRI systems; replacement CT and MRI tubes; CT service training; MRI coils, cold heads and RF amplifiers; hydrogen thyratrons, klystrons, magnetrons; flat panel detector upgrades; pre-owned CT systems; and additional replacement solutions currently under development for the diagnostic imaging service market. Through a combination of newly developed products and partnerships, service offerings and training programs, we believe we can help our customers improve efficiency and deliver better clinical outcomes while lowering the cost of healthcare delivery.

The CEO, who is the chief operating decision maker, evaluates performance and allocates resources primarily based on the gross profit of each segment.

Operating results by segment are summarized in the following table (in thousands):

 

 

Fiscal Year Ended

 

 

 

May 29, 2021

 

 

May 30, 2020

 

 

June 1, 2019

 

PMT

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

137,280

 

 

$

118,480

 

 

$

128,902

 

Gross Profit

 

 

45,951

 

 

 

38,288

 

 

 

40,254

 

Canvys

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

29,319

 

 

$

28,926

 

 

$

27,968

 

Gross Profit

 

 

10,274

 

 

 

9,313

 

 

 

9,085

 

Healthcare

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

10,338

 

 

$

8,492

 

 

$

9,782

 

Gross Profit

 

 

2,600

 

 

 

2,072

 

 

 

2,396

 

 

A reconciliation of assets to the relevant consolidated amount is as follows (in thousands):

 

 

 

May 29, 2021

 

 

May 30, 2020

 

Segment assets

 

$

100,638

 

 

$

89,231

 

Cash and cash equivalents

 

 

43,316

 

 

 

30,535

 

Investments - current

 

 

—

 

 

 

16,000

 

Other current assets (1)

 

 

1,918

 

 

 

2,545

 

Net property, plant and equipment

 

 

9,300

 

 

 

10,267

 

Operating lease ROU asset

 

 

732

 

 

 

1,285

 

Financing lease ROU asset

 

 

308

 

 

 

401

 

Other assets - non-current deferred income taxes

 

 

541

 

 

 

456

 

Total assets

 

$

156,753

 

 

$

150,720

 

 

(1)

Other current assets include miscellaneous receivables and prepaid expenses.

Assets are not disclosed by reportable segment as the Company does not track assets by reportable segment and certain assets are not specific to any reportable segment.

Capital expenditures for our Healthcare segment during fiscal 2021 and fiscal 2020 were approximately $1.7 million and $0.4 million, respectively. In addition, we also had capital expenditures during fiscal 2021 and fiscal 2020 related to the Company’s ERP system as well as facilities that were not specific to any particular reportable segment.

Geographic net sales information is primarily grouped by customer destination into five areas: North America; Asia/Pacific; Europe; Latin America; and Other.

Net sales and gross profit by geographic region are summarized in the following table (in thousands):

 

 

Fiscal Year Ended

 

 

 

May 29, 2021

 

 

May 30, 2020

 

 

June 1, 2019

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

73,625

 

 

$

65,259

 

 

$

66,228

 

Asia/Pacific

 

 

40,839

 

 

 

32,979

 

 

 

34,681

 

Europe

 

 

52,549

 

 

 

49,394

 

 

 

55,038

 

Latin America

 

 

9,651

 

 

 

8,308

 

 

 

10,653

 

Other (1)

 

 

273

 

 

 

(42

)

 

 

52

 

Total

 

$

176,937

 

 

$

155,898

 

 

$

166,652

 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

28,639

 

 

$

24,494

 

 

$

24,776

 

Asia/Pacific

 

 

13,520

 

 

 

10,629

 

 

 

10,905

 

Europe

 

 

16,958

 

 

 

15,483

 

 

 

17,425

 

Latin America

 

 

3,405

 

 

 

2,804

 

 

 

3,863

 

Other (1)

 

 

(3,697

)

 

 

(3,737

)

 

 

(5,234

)

Total

 

$

58,825

 

 

$

49,673

 

 

$

51,735

 

 

(1)

Other includes primarily net sales not allocated to a specific geographical region, unabsorbed value-add costs and other unallocated expenses.

Major Customers

During fiscal 2021, fiscal 2020 and fiscal 2019, no one customer accounted for more than 10 percent of the Company’s consolidated net sales.

We sell our products to customers in diversified industries and perform periodic credit evaluations of our customers’ financial condition. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe and Latin America. Estimates of credit losses are recorded in the financial statements based on monthly reviews of outstanding accounts.

Net assets by geographic region are summarized in the following table (in thousands):

 

 

Fiscal Year Ended

 

 

 

May 29, 2021

 

 

May 30, 2020

 

Net Assets

 

 

 

 

 

 

 

 

North America

 

$

77,698

 

 

$

81,533

 

Asia/Pacific

 

 

10,547

 

 

 

10,370

 

Europe

 

 

31,289

 

 

 

24,973

 

Latin America

 

 

2,026

 

 

 

1,784

 

Total

 

$

121,560

 

 

$

118,660

 

 

The Company had long-lived assets of $19.3 million as of May 29, 2021 and $20.2 million as of May 30, 2020. The long-lived assets, which include our fixed assets and intangibles, were primarily in the US. There were approximately $0.4 million of long-lived assets that belong to our foreign affiliates as of May 29, 2021 and $0.6 million as of May 30, 2020.

The Company had depreciation and amortization expense of $3.4 million, $3.4 million and $3.2 million for fiscal 2021, fiscal 2020 and fiscal 2019, respectively. The depreciation and amortization, which includes our fixed assets and intangibles, were primarily in the US. Depreciation and amortization expense that belong to our foreign affiliates was approximately $0.3 million for fiscal 2021, $0.3 million for fiscal 2020 and $0.2 million for fiscal 2019, respectively.