Note E - Business Segments

3 Months Ended

Sep. 27, 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 (loss) income.

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

	For the Quarter Ended
	September 27, 2024			September 29, 2023
Net sales
Manufacturing segment sales	$	63,318		$	54,537
Distribution segment sales		29,583			32,853
Inter/Intra segment elimination – manufacturing		(13,372	)		(20,184	)
Inter/Intra segment elimination – distribution		(6,632	)		(3,652	)
	$	72,897		$	63,554
Net (loss) income attributable to Twin Disc
Manufacturing segment net income	$	1,869		$	1,558
Distribution segment net income		951			1,006
Corporate and eliminations		(5,585	)		(3,737	)
	$	(2,765	)	$	(1,173	)

Assets	September 27, 2024			June 30, 2024
Manufacturing segment assets	$	474,502		$	443,149
Distribution segment assets		63,108			73,033
Corporate assets and elimination of intercompany assets		(214,063	)		(204,124	)
	$	323,547		$	312,058

Disaggregated revenue:

The following table presents details deemed most relevant to the users of the financial statements for the quarters ended September 27, 2024 and September 29, 2023.

Net sales by product group for the quarter ended September 27, 2024 is summarized as follows:

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	8,797	$	1,053	$	(681	)	$	9,169
Land-based transmissions		18,153		3,563		(4,432	)		17,284
Marine and propulsion systems		36,347		20,331		(14,578	)		42,100
Other		21		4,636		(313	)		4,344
Total	$	63,318	$	29,583	$	(20,004	)	$	72,897

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

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	5,290	$	1,028	$	(634	)	$	5,684
Land-based transmissions		14,681		12,671		(8,774	)		18,578
Marine and propulsion systems		34,566		16,320		(14,422	)		36,464
Other		-		2,834		(6	)		2,828
Total	$	54,537	$	32,853	$	(23,836	)	$	63,554