Quarterly report pursuant to Section 13 or 15(d)

Note 11 - Segment Reporting

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Note 11 - Segment Reporting
 3 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 11. Segment Reporting

 

The Company’s reportable segments are based on the Company’s method of internal reporting. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. The internal reporting of these operating segments is defined based, in part, on the reporting and review process used by the Company’s Chief Executive Officer.

 

Upon closing of the acquisition of Nestor Cables on July 26, 2022, the Company reassessed its operating segments as defined under Accounting Standards Codification (“ASC”) 280, Segment Reporting. Under ASC 280, operating segments are defined as components of an enterprise where discrete financial information is available that is evaluated regularly by the chief operating decision-maker (“CODM”), in deciding how to allocate resources and in assessing performance. Based upon the Company’s assessment, the Company determined that the business of Nestor Cables was considered a second reportable segment as of July 26, 2022.

 

For the first quarter of fiscal 2023, the Company has two reportable segments: (1) Clearfield and (2) Nestor Cables. Clearfield’s Finnish holding company Clearfield Finland Ltd purchased Nestor Cables Ltd, including its Estonian subsidiary Nestor Cables Baltics on July 26, 2022. These entities comprise the Nestor Cables Segment.

 

Financial results for the reportable segments are prepared on a basis consistent with the internal disaggregation of financial information to assist the CODM in making internal operating decisions. For consolidated reporting, the Company eliminates transactions between reportable segments.

 

 

The following table summarizes the amounts between the two reportable segments for the three months ended December 31, 2022:

 

   

Three months ended December 31, 2022

  
(In thousands)  

Clearfield

    

Nestor Cables

    

Eliminations

    

Consolidated

  

Revenue from external customers

   $ 78,355     $ 7,587     $ -     $ 85,942  

Revenue from internal customers (Clearfield, Inc.)

     -       1,186       (1,186 )     -  

Net investment income

     301       2       -       303  

Interest expense

     170       73       -       243  

Depreciation and amortization

     1,009       344       -       1,353  

Stock based compensation

     660       -       -       660  

Income taxes

     3,773       (78 )     -       3,695  

Net income (loss)

     14,718       (310 )     (153 )     14,255  

Capital expenditures

     1,787       197       -       1,984  

Goodwill

     4,709       1,836       -       6,545  

Total assets

     334,465       34,692       (17,360 )     351,797