Note E - Business Segments

9 Months Ended

Mar. 29, 2024

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 Three Quarters Ended
	March 29, 2024			March 31, 2023			March 29, 2024			March 31, 2023
Net sales
Manufacturing segment sales	$	62,640		$	64,353		$	175,545		$	169,607
Distribution segment sales		37,022			33,839			107,117			83,732
Inter/Intra segment elimination – manufacturing		(19,929	)		(18,531	)		(58,908	)		(46,373	)
Inter/Intra segment elimination – distribution		(5,572	)		(5,889	)		(13,045	)		(13,930	)
	$	74,161		$	73,772		$	210,709		$	193,036
Net income attributable to Twin Disc
Manufacturing segment net income	$	5,662		$	6,480		$	9,298		$	13,321
Distribution segment net income		3,248			2,053			7,427			4,412
Corporate and eliminations		(5,088	)		(5,252	)		(13,146	)		(14,128	)
	$	3,822		$	3,281		$	3,579		$	3,605

Assets	March 29, 2024			June 30, 2023
Manufacturing segment assets	$	385,832		$	381,668
Distribution segment assets		73,586			69,213
Corporate assets and elimination of intercompany assets		(170,664	)		(161,700	)
	$	288,754		$	289,181

Disaggregated revenue:

The following tables presents details deemed most relevant to the users of the financial statements for the quarters ended March 29, 2024 and March 31, 2023.

Net sales by product group for the quarter ended March 29, 2024 is summarized as follows:

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	5,779	$	1,084	$	(631	)	$	6,232
Land-based transmissions		16,701		9,286		(6,898	)		19,089
Marine and propulsion systems		40,160		23,052		(17,968	)		45,244
Other		-		3,600		(4	)		3,596
Total	$	62,640	$	37,022	$	(25,501	)	$	74,161

Net sales by product group for the quarter ended March 31, 2023 is summarized as follows:

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	7,076	$	1,548	$	(1,321	)	$	7,303
Land-based transmissions		16,785		8,692		(5,902	)		19,575
Marine and propulsion systems		40,492		19,867		(16,505	)		43,854
Other		-		3,732		(692	)		3,040
Total	$	64,353	$	33,839	$	(24,420	)	$	73,772

Net Sales by product group for the three quarters ended March 29, 2024 is summarized as follows:

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	16,773	$	3,670	$	(1,994	)	$	18,449
Land-based transmissions		46,385		29,910		(22,765	)		53,530
Marine and propulsion systems		112,387		63,430		(47,166	)		128,651
Other		-		10,107		(28	)		10,079
Total	$	175,545	$	107,117	$	(71,953	)	$	210,709

Net Sales by product group for the three quarters ended March 31, 2023 is summarized as follows:

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	20,732	$	4,322	$	(3,208	)	$	21,846
Land-based transmissions		48,329		16,743		(14,888	)		50,184
Marine and propulsion systems		100,546		49,838		(40,751	)		109,633
Other		-		12,829		(1,456	)		11,373
Total	$	169,607	$	83,732	$	(60,303	)	$	193,036