Annual report pursuant to Section 13 and 15(d)

Note 12 - Segment Reporting

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Note 12 - Segment Reporting
 12 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 12. 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, the Company reassessed its operating segments as defined under 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 year ended September 30, 2023, the Company has two reportable segments: (1) Clearfield and (2) Nestor Cables. Clearfield’s Finnish holding company Clearfield Finland Oy purchased Nestor Cables Oy, including its Estonia subsidiary Nestor Cables Baltics on July 26, 2022. These entities comprise the Nestor Cables segment. Refer to Note 11 - Acquisition of Nestor Cables for additional information on this transaction.

 

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 year ended September 30, 2023:

 

   

Year ended September 30, 2023

  
(in thousands)  

Clearfield

    

Nestor Cables

    

Eliminations

    

Consolidated

  

Revenue from external customers

   $ 225,722     $ 42,998     $ -     $ 268,720  

Revenue from internal customers (Clearfield)

     -       5,408       (5,408 )     -  

Net investment income

     5,315       7       (116 )     5,206  

Interest Expense

     170       827       (116 )     881  

Depreciation and amortization

     4.598       1,456       -       6,054  

Stock based compensation

     3,528       50       -       3,578  

Income taxes

     8,883       196       -       9,079  

Net Income

     32,834       719       (1,020 )     32,533  

Capital Expenditures

     6,759       925       -       7,684  

 

The following table summarizes the amounts between the two reportable segments for the year ended September 30, 2022:

 

   

Year ended September 30, 2022

  
(in thousands)  

Clearfield

    

Nestor Cables

    

Eliminations

    

Consolidated

  

Revenue from external customers

   $ 263,822     $ 7,061     $ -     $ 270,883  

Revenue from internal customers (Clearfield)

     -       182       (182 )     -  

Net investment income

     327       1       -       328  

Interest Expense

     141       170       -       311  

Depreciation and amortization

     3,187       239       -       3,426  

Stock based compensation

     2,339       -       -       2,339  

Income taxes

     14,258       214       -       14,472  

Net Income (loss)

     49,771       (389 )     (20 )     49,362  

Capital Expenditures

     8,487       13       -       8,500  

 

The following table summarizes the amounts between the two reportable segments as of September 30, 2023, and September 30, 2022:

 

   

Year ended September 30, 2023

  
(in thousands)  

Clearfield

    

Nestor Cables

    

Eliminations

    

Consolidated

  

Goodwill

   $ 4,709     $ 1,819     $ -     $ 6,528  

Total assets

   $ 335,412     $ 43,550     $ (23,445 )   $ 355,517  

 

   

Year ended September 30, 2022

  
(in thousands)  

Clearfield

    

Nestor Cables

    

Eliminations

    

Consolidated

  

Goodwill

   $ 4,709     $ 1,693     $ -     $ 6,402  

Total assets

   $ 214,785     $ 31,023     $ (16,680 )   $ 229,128