Note E - Business Segments

6 Months Ended

Dec. 29, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

E. Business Segments

The Company and its subsidiaries are engaged in the manufacture and sale of marine and heavy-duty off-highway power transmission equipment. Principal products include marine transmissions, azimuth drives, surface drives, propellers and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches and controls systems. The Company sells to both domestic and foreign customers in a variety of market areas, principally pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government and industrial markets. The Company's worldwide sales to both domestic and foreign customers are transacted through a direct sales force and a distributor network.

The Company has two reportable segments: manufacturing and distribution.  These segment structures reflect the way management makes operating decisions and manages the growth and profitability of the business. It also corresponds with management’s approach of allocating resources and assessing the performance of its segments. The accounting practices of the segments are the same as those described in the summary of significant accounting policies. Transfers among segments are at established inter-company selling prices.  Management evaluates the performance of its segments based on net income.

Information about the Company’s segments is summarized as follows:

	For the Quarter Ended						For the Two Quarters Ended
	December 29, 2023			December 30, 2022			December 29, 2023			December 30, 2022
Net sales
Manufacturing segment sales	$	58,368		$	56,678		$	112,906		$	105,675
Distribution segment sales		37,242			25,584			70,095			49,892
Inter/Intra segment elimination – manufacturing		(18,795	)		(14,198	)		(38,979	)		(27,842	)
Inter/Intra segment elimination – distribution		(3,821	)		(4,713	)		(7,475	)		(8,461	)
	$	72,994		$	63,351		$	136,547		$	119,264
Net income (loss) attributable to Twin Disc
Manufacturing segment net income	$	2,078		$	4,439		$	3,636		$	6,841
Distribution segment net income		3,173			1,403			4,179			2,359
Corporate and eliminations		(4,321	)		(4,096	)		(8,058	)		(8,876	)
	$	930		$	1,746		$	(243	)	$	324

Assets	December 29, 2023			June 30, 2023
Manufacturing segment assets	$	380,283		$	381,668
Distribution segment assets		70,391			69,213
Corporate assets and elimination of intercompany assets		(165,484	)		(161,700	)
	$	285,190		$	289,181

Disaggregated revenue:

The following table presents details deemed most relevant to the users of the financial statements for the quarters ended December 29, 2023 and December 30, 2022.

Net sales by product group for the quarter ended December 29, 2023 is summarized as follows:

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	5,704	$	1,557	$	(730	)	$	6,531
Land-based transmissions		15,003		7,953		(7,093	)	$	15,863
Marine and propulsion systems		37,661		24,058		(14,773	)	$	46,946
Other		-		3,674		(20	)	$	3,654
Total	$	58,368	$	37,242	$	(22,616	)	$	72,994

Net sales by product group for the quarter ended December 30, 2022 is summarized as follows:

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	6,963	$	1,726	$	(1,177	)	$	7,512
Land-based transmissions		15,256		3,445		(4,030	)	$	14,671
Marine and propulsion systems		34,262		15,427		(13,223	)	$	36,466
Other		197		4,986		(481	)	$	4,702
Total	$	56,678	$	25,584	$	(18,911	)	$	63,351

Net Sales by product group for the two quarters ended December 29, 2023 is summarized as follows:

						Elimination of
	Manufacturing			Distribution		Intercompany Sales			Total
Industrial	$	10,994		$	2,586	$	(1,364	)	$	12,216
Land-based transmissions		29,684			20,623		(15,867	)	$	34,440
Marine and propulsion systems		72,228			40,378		(29,197	)	$	83,409
Other		(0	)		6,508		(26	)	$	6,482
Total	$	112,906		$	70,095	$	(46,454	)	$	136,547

Net Sales by product group for the two quarters ended December 30, 2022 is summarized as follows:

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	13,656	$	2,774	$	(1,886	)	$	14,544
Land-based transmissions		31,543		8,051		(8,985	)	$	30,609
Marine and propulsion systems		60,077		29,971		(24,246	)	$	65,802
Other		399		9,096		(1,186	)	$	8,309
Total	$	105,675	$	49,892	$	(36,303	)	$	119,264