Quarterly report [Sections 13 or 15(d)]

Note 12 - Segment Reporting

v3.25.2
Note 12 - Segment Reporting
9 Months Ended
Jun. 30, 2025
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.

 

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 Estonian subsidiary, Nestor Cables Baltics OÜ, on July 26, 2022. These entities comprise the Nestor Cables Segment.

 

The following table summarizes the amounts between the two reportable segments for the three and nine months ended June 30, 2025, and 2024:

 

   

Three months ended June 30, 2025

 
   

Clearfield

   

Nestor Cables

   

Eliminations

   

Consolidated

 
(in thousands)                                

Revenue from external customers

 

$

38,755    

$

11,148    

$

-    

$

49,903  

Revenue from internal customers (Clearfield, Inc.)

    -       262       (262

)

    -  

Net investment income

    1,646       -       (58

)

    1,588  

Interest expense

    -       164       (58

)

    106  

Depreciation and amortization

    1,581       336       -       1,917  

Stock based compensation

    1,196       117       -       1,313  

Income tax expense

    787       585       -       1,372  

Net income (loss)

    2,219       (709 )     96       1,606  

Capital expenditures

    406       1       -       407  

 

   

Nine months ended June 30, 2025

 
   

Clearfield

   

Nestor Cables

   

Eliminations

   

Consolidated

 
(in thousands)                                

Revenue from external customers

 

$

109,074    

$

23,473    

$

-    

$

132,547  

Revenue from internal customers (Clearfield, Inc.)

    -       1,226       (1,226

)

    -  

Net investment income

    5,099       -       (179

)

    4,920  

Interest expense

    -       454       (179

)

    275  

Depreciation and amortization

    4,763       1,003       -       5,766  

Stock based compensation

    3,417       323       -       3,740  

Income tax expense (benefit)

    1,562       (161 )     -       1,401  

Net income (loss)

    4,064       (3,335 )     299       1,028  

Capital expenditures

    2,796       1,684       -       4,480  

 

 

   

Three months ended June 30, 2024

 
   

Clearfield

   

Nestor Cables

   

Eliminations

   

Consolidated

 

(in thousands)

                               

Revenue from external customers

 

$

33,670    

$

15,123    

$

-    

$

48,793  

Revenue from internal customers (Clearfield, Inc.)

    -       389       (389

)

    -  

Net investment income

    1,799       -       (64

)

    1,735  

Interest expense

    -       213       (60

)

    153  

Depreciation and amortization

    1,535       375       -       1,910  

Stock based compensation

    1,080       72       -       1,152  

Income tax benefit

    (249

)

    (28

)

    -       (277

)

Net income (loss)

    (478

)

    (164

)

    195       (447 )

Capital expenditures

    1,115       106       -       1,221  

 

   

Nine months ended June 30, 2024

 
   

Clearfield

   

Nestor Cables

   

Eliminations

   

Consolidated

 

(in thousands)

                               

Revenue from external customers

 

$

89,371    

$

30,562    

$

-    

$

119,933  

Revenue from internal customers (Clearfield, Inc.)

    -       1,490       (1,490 )     -  

Net investment income

    5,832       -       (179 )     5,653  

Interest expense

    -       558       (177 )     381  

Depreciation and amortization

    4,383       1,098       -       5,481  

Stock based compensation

    3,242       195       -       3,437  

Income tax benefit

    (2,657 )     (654 )     -       (3,311 )

Net loss

    (8,862 )     (2,836 )     72       (11,626 )

Capital expenditures

    4,207       1,401       -       5,608  

 

The following table summarizes the amounts between the two reportable segments as of June 30, 2025, and as of September 30, 2024:

 

   

June 30, 2025

 
   

Clearfield

   

Nestor Cables

   

Eliminations

   

Consolidated

 

(in thousands)

                               

Goodwill

 

$

4,709    

$

2,031    

$

-    

$

6,740  

Total assets

 

$

292,178    

$

46,204    

$

(23,672

)

 

$

314,710  

 

 

   

September 30, 2024

 

(in thousands)

 

Clearfield

   

Nestor Cables

   

Eliminations

   

Consolidated

 

Goodwill

 

$

4,709    

$

1,918    

$

-    

$

6,627  

Total assets

 

$

300,472    

$

38,773    

$

(23,970

)

 

$

315,275