ROCHESTER, N.Y.--(BUSINESS WIRE)--Transcat, Inc. (Nasdaq: TRNS) ("Transcat" or the "Company"), a leading provider of accredited calibration services, cost control and optimization services, and distribution and rental of value-added professional grade handheld test, measurement, and control instrumentation, today reported financial results for its first quarter ended June 29, 2024 (the "first quarter") of fiscal year 2025, which ends March 29, 2025 ("fiscal 2025"). Results include the previously reported acquisitions of TIC-MS, Inc. ("TIC-MS") effective March 27, 2023, SteriQual, Inc. ("SteriQual"), effective July 12, 2023, Axiom Test Equipment, Inc. ("Axiom"), effective August 8, 2023 and Becnel Rental Tools, LLC ("Becnel") effective April 15, 2024.
"We are pleased with our strong first quarter results as gross margins expanded 310 basis points versus prior year from increased Service productivity and growth in Rentals in the Distribution segment. Consolidated revenue was up 10% driven by consistent demand in highly regulated end markets, our successful integration of acquired companies, and widened breadth of offerings," commented Lee D. Rudow, President and CEO. "The Transcat team performed well during the first quarter as adjusted EBITDA grew 20% and margins expanded driven by our differentiated value proposition along with outstanding execution of automation and productivity enhancements."
Mr. Rudow added, "Transcat's positive acquisition momentum continued in the first quarter with the purchase of Becnel Rental Tools. Becnel is a well-run business that has cultivated strong customer relationships, with companies which are high users of Transcat's core instrumentation and calibration services. Becnel differentiates our higher margin rental portfolio along with a growing operator-based service model and has already provided opportunities for cross-selling of Transcat's products and services. Our growing, diversified portfolio enables strong performance when combined with our team's commitment to execution points to a very bright future ahead for Transcat."
First Quarter Fiscal 2025 Review
(Results are compared with the first quarter of the fiscal year ended March 30, 2024 ("fiscal 2024"))
($ in thousands) | Change | |||||||||||||||
FY25 Q1 | FY24 Q1 | $'s | % | |||||||||||||
Service Revenue | $ | 43,778 | $ | 39,853 | $ | 3,925 | 9.8 | % | ||||||||
Distribution Sales | 22,929 | 20,745 | 2,184 | 10.5 | % | |||||||||||
Revenue | $ | 66,707 | $ | 60,598 | $ | 6,109 | 10.1 | % | ||||||||
Gross Profit | $ | 22,655 | $ | 18,710 | $ | 3,945 | 21.1 | % | ||||||||
Gross Margin | 34.0 | % | 30.9 | % | ||||||||||||
Operating Income | $ | 5,099 | $ | 4,640 | $ | 459 | 9.9 | % | ||||||||
Operating Margin | 7.6 | % | 7.7 | % | ||||||||||||
Net Income | $ | 4,408 | $ | 2,949 | $ | 1,459 | 49.5 | % | ||||||||
Net Margin | 6.6 | % | 4.9 | % | ||||||||||||
Adjusted EBITDA* | $ | 10,212 | $ | 8,481 | $ | 1,731 | 20.4 | % | ||||||||
Adjusted EBITDA* Margin | 15.3 | % | 14.0 | % | ||||||||||||
Diluted EPS | $ | 0.48 | $ | 0.38 | $ | 0.10 | 26.3 | % | ||||||||
Adjusted Diluted EPS* | $ | 0.68 | $ | 0.52 | $ | 0.16 | 30.8 | % | ||||||||
*See Note 1 on page 5 for a description of these non-GAAP financial measures and pages 10, 11 and 12 for the reconciliation tables. |
Consolidated revenue was $66.7 million, an increase of $6.1 million or 10.1%. Consolidated gross profit was $22.7 million, an increase of $3.9 million, or 21.1%, while gross margin expanded 310 basis points due to improvements in both operating segments. Operating expenses were $17.6 million, an increase of $3.5 million, or 24.8%, driven by incremental expenses from acquired businesses (including stock-based compensation expense) and higher incentive-based employee costs due to sales growth. Adjusted EBITDA was $10.2 million which represented an increase of $1.7 million or 20.4%. Net income per diluted share was $0.48 compared to $0.38 last year. Adjusted diluted earnings per share was $0.68 versus $0.52 last year.
Service segment delivers strong first quarter results
Represents the accredited calibration, repair, inspection and laboratory instrument services business (65.6% of total revenue for the third quarter of fiscal 2024).
($ in thousand) | Change | |||||||||||||||
FY25 Q1 | FY24 Q1 | $'s | % | |||||||||||||
Service Segment Revenue | $ | 43,778 | $ | 39,853 | $ | 3,925 | 9.8 | % | ||||||||
Gross Profit | $ | 14,883 | $ | 12,971 | $ | 1,912 | 14.7 | % | ||||||||
Gross Margin | 34.0 | % | 32.5 | % | ||||||||||||
Operating Income | $ | 4,090 | $ | 3,192 | $ | 898 | 28.1 | % | ||||||||
Operating Margin | 9.3 | % | 8.0 | % | ||||||||||||
Adjusted EBITDA* | $ | 6,964 | $ | 6,232 | $ | 732 | 11.7 | % | ||||||||
Adjusted EBITDA* Margin | 15.9 | % | 15.6 | % | ||||||||||||
*See Note 1 on page 5 for a description of this non-GAAP financial measure and pages 10 and 11 for the Adjusted EBITDA Reconciliation tables. |
Service segment revenue was $43.8 million, an increase of $3.9 million or 9.8%, and included $1.3 million of incremental revenue from acquisitions. Organic revenue growth was 6.4% and was driven by strong end-market demand and continued market share gains. The segment gross margin was 34.0%, an increase of 150 basis points from prior year primarily due to continued productivity improvements.
Distribution segment shows continued margin improvement
Represents the sale and rental of new and used professional grade handheld test, measurement and control instrumentation (34.4% of total revenue for the third quarter of fiscal 2024).
($ in thousands) | Change | |||||||||||||||
FY25 Q1 | FY24 Q1 | $'s | % | |||||||||||||
Distribution Segment Sales | $ | 22,929 | $ | 20,745 | $ | 2,184 | 10.5 | % | ||||||||
Gross Profit | $ | 7,772 | $ | 5,739 | $ | 2,033 | 35.4 | % | ||||||||
Gross Margin | 33.9 | % | 27.7 | % | ||||||||||||
Operating Income | $ | 1,009 | $ | 1,448 | $ | (439 | ) | (30.3 | )% | |||||||
Operating Margin | 4.4 | % | 7.0 | % | ||||||||||||
Adjusted EBITDA* | $ | 3,248 | $ | 2,249 | $ | 999 | 44.4 | % | ||||||||
Adjusted EBITDA* Margin | 14.2 | % | 10.8 | % | ||||||||||||
*See Note 1 on page 5 for a description of this non-GAAP financial measure and pages 10 and 11 for the Adjusted EBITDA Reconciliation tables. |
Distribution sales were $22.9 million, which represented an increase of $2.2 million or 10.5%, driven by growth in the Rental business including acquisitions. Distribution segment gross margin was 33.9%, an increase of 620 basis points due to a favorable sales mix driven by strength in the Rentals business.
Balance Sheet and Cash Flow Overview
On June 29, 2024, the Company had $22.7 million in cash and cash equivalents on hand and $80.0 million available for borrowing under its secured revolving credit facility. Total debt of $3.6 million versus $4.2 million on March 30, 2024. The Company's leverage ratio, as defined in the credit agreement, was 0.08 on June 29, 2024, compared with 0.10 on March 30, 2024.
Outlook
Mr. Rudow concluded, "We are proud of our dedicated team, which has delivered exceptional results through various economic cycles as can be seen over the past decade and a half of profitable growth. We have successfully and consistently delivered organic Service revenue growth, gross margin expansion, free cash flow, and expanded our addressable markets through acquisition. We believe our unique value proposition drives a sustainable competitive advantage in the highly regulated markets that we serve, particularly the Life Science, Aerospace, and Defense markets, along with a growing Rentals business. We expect another year of organic Service revenue growth in the high single-digit to low double-digit range when normalized for the extra week in fiscal 2024 and gross margin expansion. Automation of our calibration processes and overall productivity improvements will continue to be key enablers of future margin expansion. We will continue to leverage our expertise and proven track record of successful acquisitions to drive synergistic growth opportunities with a sharp focus on integration. Our robust and diverse acquisition pipeline enables strategic, accretive acquisitions that will be a key component of our go-forward strategy."
Transcat expects its income tax rate to range between 24% and 26% in fiscal 2025. This estimate includes Federal, various state, Canadian and Irish income taxes and reflects the discrete tax accounting associated with share-based payment awards.
Webcast and Conference Call
Transcat will host a conference call and webcast on Tuesday, July 30, 2024 at 11:00 a.m. ET. Management will review the financial and operating results for the first quarter, as well as the Company's strategy and outlook. A question and answer session will follow the formal discussion. The review will be accompanied by a slide presentation, which will be available at www.transcat.com/investor-relations. The conference call can be accessed by calling (201) 689-8471. Alternatively, the webcast can be monitored at www.transcat.com/investor-relations.
A telephonic replay will be available from 2:00 p.m. ET on the day of the call through Tuesday, August 6, 2024. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13747789, access the webcast replay at www.transcat.com/investor-relations, where a transcript will be posted once available.
NOTE 1 - Non-GAAP Financial Measures
In addition to reporting net income, a U.S. generally accepted accounting principle ("GAAP") measure, we present Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, non-cash stock compensation expense, acquisition related transaction expenses, non-cash loss on sale of building and restructuring expense), which is a non-GAAP measure. The Company's management believes Adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the performance of its core operations from period to period by removing the impact of the capital structure (interest), tangible and intangible asset base (depreciation and amortization), taxes, stock-based compensation expense and other items, which is not always commensurate with the reporting period in which it is included. As such, the Company uses Adjusted EBITDA as a measure of performance when evaluating its business segments and as a basis for planning and forecasting. Adjusted EBITDA is not a measure of financial performance under GAAP and is not calculated through the application of GAAP. As such, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. Adjusted EBITDA, as presented, may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies. See pages 10 and 11 for the Adjusted EBITDA Reconciliation tables.
In addition to reporting Diluted Earnings Per Share, a GAAP measure, we present Adjusted Diluted Earnings Per Share (net income plus acquisition related amortization expense, acquisition related transaction expenses, acquisition related stock-based compensation, acquisition amortization of backlog and restructuring expense; divided by the average diluted shares outstanding during the period), which is a non-GAAP measure. Our management believes Adjusted Diluted Earnings Per Share is an important measure of our operating performance because it provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted Diluted Earnings Per Share is not a measure of financial performance under GAAP and is not calculated through the application of GAAP. As such, it should not be considered as a substitute or alternative for the GAAP measure of Diluted Earnings Per Share and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. Adjusted Diluted Earnings Per Share, as presented, may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies. See page 12 for the Adjusted Diluted EPS Reconciliation table.
ABOUT TRANSCAT
Transcat, Inc. is a leading provider of accredited calibration, reliability, maintenance optimization, quality and compliance, validation, Computerized Maintenance Management System (CMMS), and pipette services. The Company is focused on providing best-in-class services and products to highly regulated industries, particularly the Life Science industry, which includes pharmaceutical, biotechnology, medical device, and other FDA-regulated businesses, as well as aerospace and defense, and energy and utilities. Transcat provides periodic on-site services, mobile calibration services, pickup and delivery, in-house services at its 29 Calibration Service Centers strategically located across the United States, Puerto Rico, Canada, and Ireland. In addition, Transcat operates calibration labs in 21 imbedded customer-site locations. The breadth and depth of measurement parameters addressed by Transcat's ISO/IEC 17025 scopes of accreditation are believed to be the best in the industry.
Transcat also operates as a leading value-added distributor that markets, sells and rents new and used national and proprietary brand instruments to customers primarily in North America. The Company believes its combined Service and Distribution segment offerings, experience, technical expertise, and integrity create a unique and compelling value proposition for its customers.
Transcat's strategy is to leverage its strong brand and unique value proposition that includes its comprehensive instrument service capabilities, enterprise asset management, and leading distribution platform to drive organic sales growth. The Company will also look to expand its addressable calibration market through acquisitions and capability investments to further realize the inherent leverage of its business model. More information about Transcat can be found at: Transcat.com.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact and thus are subject to risks, uncertainties and assumptions. Forward-looking statements relate to expectations, estimates, beliefs, assumptions and predictions of future events and are identified by words such as "aim," "anticipates," "believes," "can," "could," "designed," "estimates," "expects," "focus," "goal," "intends," "may," "plan," "outlook," "potential," "seek," "strategy," "strive," "target," "will," "would," and other similar words. All statements addressing operating performance, events or developments that Transcat expects or anticipates will occur in the future, including but not limited to statements relating to anticipated revenue, profit margins, the commercialization of software projects, sales operations, capital expenditures, cash flows, operating income, growth strategy, segment growth, potential acquisitions, integration of acquired businesses, market position, customer preferences, outlook and changes in market conditions in the industries in which Transcat operates are forward-looking statements. Forward-looking statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include those more fully described in Transcat's Annual Report and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled "Risk Factors." Should one or more of these risks or uncertainties materialize or should any of the Company's underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company's forward-looking statements, which speak only as of the date they are made. Except as required by law, the Company disclaims any obligation to update, correct or publicly announce any revisions to any of the forward-looking statements contained in this news release, whether as the result of new information, future events or otherwise.
FINANCIAL TABLES FOLLOW.
TRANSCAT, INC. CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Per Share Amounts) | ||||||||
(Unaudited) | ||||||||
First Quarter Ended | ||||||||
June 29, | June 24, | |||||||
2024 | 2023 | |||||||
Service Revenue | $ | 43,778 | $ | 39,853 | ||||
Distribution Sales | 22,929 | 20,745 | ||||||
Total Revenue | 66,707 | 60,598 | ||||||
Cost of Service Revenue | 28,895 | 26,882 | ||||||
Cost of Distribution Sales | 15,157 | 15,006 | ||||||
Total Cost of Revenue | 44,052 | 41,888 | ||||||
Gross Profit | 22,655 | 18,710 | ||||||
Selling, Marketing and Warehouse Expenses | 7,801 | 6,469 | ||||||
General and Administrative Expenses | 9,755 | 7,601 | ||||||
Total Operating Expenses | 17,556 | 14,070 | ||||||
Operating Income | 5,099 | 4,640 | ||||||
Interest Expense | 52 | 814 | ||||||
Interest Income | (312 | ) | - | |||||
Other Expense | 131 | 64 | ||||||
Total Interest and Other | (129 | ) | 878 | |||||
Income Before Provision For Income Taxes | 5,228 | 3,762 | ||||||
Provision for Income Taxes | 820 | 813 | ||||||
Net Income | $ | 4,408 | $ | 2,949 | ||||
Basic Earnings Per Share | $ | 0.49 | $ | 0.39 | ||||
Average Shares Outstanding | 9,064 | 7,622 | ||||||
Diluted Earnings Per Share | $ | 0.48 | $ | 0.38 | ||||
| Average Shares Outstanding | 9,196 | 7,762 | ||||||
TRANSCAT, INC. CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share and Per Share Amounts) | ||||||||
(Unaudited) | (Audited) | |||||||
June 29, | March 30, | |||||||
2024 | 2024 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 22,657 | $ | 19,646 | ||||
Marketable Securities | - | $ | 15,533 | |||||
Accounts Receivable, less allowance for credit losses of $492 and $544 as of June 29, 2024 and March 30, 2024, respectively | 48,156 | 47,779 | ||||||
Other Receivables | 242 | 506 | ||||||
Inventory, net | 18,128 | 17,418 | ||||||
Prepaid Expenses and Other Current Assets | 5,070 | 4,276 | ||||||
Total Current Assets | 94,253 | 105,158 | ||||||
Property and Equipment, net | 45,954 | 38,944 | ||||||
Goodwill | 138,146 | 105,585 | ||||||
Intangible Assets, net | 26,254 | 19,987 | ||||||
Right to Use Assets, net | 17,996 | 16,823 | ||||||
Other Assets | 1,049 | 1,055 | ||||||
Total Assets | $ | 323,652 | $ | 287,552 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts Payable | $ | 13,076 | $ | 11,495 | ||||
Accrued Compensation and Other Current Liabilities | 12,677 | 16,739 | ||||||
Income Taxes Payable | 3,687 | 2,926 | ||||||
Current Portion of Long-Term Debt | 2,362 | 2,339 | ||||||
Total Current Liabilities | 31,802 | 33,499 | ||||||
Long-Term Debt | 1,218 | 1,817 | ||||||
Deferred Tax Liabilities, net | 9,287 | 9,291 | ||||||
Lease Liabilities | 15,400 | 14,873 | ||||||
Other Liabilities | 3,657 | 2,903 | ||||||
Total Liabilities | 61,364 | 62,383 | ||||||
Shareholders' Equity: | ||||||||
Common Stock, par value $0.50 per share, 30,000,000 shares authorized; 9,144,731 and 8,839,299 shares issued and outstanding as of June 29, 2024 and March 30, 2024, respectively | 4,572 | 4,420 | ||||||
Capital in Excess of Par Value | 175,299 | 141,624 | ||||||
Accumulated Other Comprehensive Loss | (1,104 | ) | (949 | ) | ||||
Retained Earnings | 83,521 | 80,074 | ||||||
Total Shareholders' Equity | 262,288 | 225,169 | ||||||
Total Liabilities and Shareholders' Equity | $ | 323,652 | $ | 287,552 | ||||
TRANSCAT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
June 29, | June 24, | |||||||
2024 | 2023 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net Income | $ | 4,408 | $ | 2,949 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||||
Net (Gain)/Loss on Disposal of Property and Equipment | (4 | ) | 8 | |||||
Deferred Income Taxes | (4 | ) | 44 | |||||
Depreciation and Amortization | 4,113 | 2,790 | ||||||
(Recovery of)/Provision for Accounts Receivable and Inventory Reserves | (89 | ) | 138 | |||||
Stock-Based Compensation Expense | 697 | 930 | ||||||
Changes in Assets and Liabilities, net of acquisitions: | ||||||||
Accounts Receivable and Other Receivables | 2,814 | 3,115 | ||||||
Inventory | (235 | ) | 1,950 | |||||
Prepaid Expenses and Other Current Assets | (687 | ) | 531 | |||||
Accounts Payable | 1,425 | (4,315 | ) | |||||
Accrued Compensation and Other Current Liabilities | (4,273 | ) | (1,203 | ) | ||||
Income Taxes Payable | 759 | 599 | ||||||
Net Cash Provided by Operating Activities | 8,924 | 7,536 | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchase of Property and Equipment | (3,674 | ) | (2,767 | ) | ||||
Proceeds from Sale of Property and Equipment | - | - | ||||||
Business Acquisitions, net of cash acquired | (15,953 | ) | (2,869 | ) | ||||
Sales of Marketable Securities | 15,533 | - | ||||||
Net Cash Used in Investing Activities | (4,094 | ) | (5,636 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Repayment of Revolving Credit Facility, net | - | (204 | ) | |||||
Repayments of Term Loan | (576 | ) | (553 | ) | ||||
Issuance of Common Stock, net of direct costs | 260 | 199 | ||||||
Repurchase of Common Stock | (1,619 | ) | (301 | ) | ||||
Net Cash Used in Financing Activities | (1,935 | ) | (859 | ) | ||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 116 | (423 | ) | |||||
Net Increase in Cash and Cash Equivalents | 3,011 | 618 | ||||||
Cash and Cash Equivalents at Beginning of Period | 19,646 | 1,531 | ||||||
Cash and Cash Equivalents at End of Period | $ | 22,657 | $ | 2,149 | ||||
TRANSCAT, INC. Adjusted EBITDA Reconciliation Table (In thousands) (Unaudited) | ||||||||||||||||||||
Fiscal 2025 | ||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||
Net Income | $ | 4,408 | $ | 4,408 | ||||||||||||||||
+ Interest Income | (260 | ) | (260 | ) | ||||||||||||||||
+ Other Expense / (Income) | 131 | 131 | ||||||||||||||||||
+ Tax Provision | 820 | 820 | ||||||||||||||||||
Operating Income | $ | 5,099 | $ | - | $ | - | $ | - | $ | 5,099 | ||||||||||
+ Depreciation & Amortization | 4,113 | 4,113 | ||||||||||||||||||
+ Transaction Expenses | 434 | 434 | ||||||||||||||||||
+ Acquisition Earn-Out Adjustment | - | - | ||||||||||||||||||
+ Other (Expense) / Income | (131 | ) | (131 | ) | ||||||||||||||||
+ Noncash Stock Compensation | 697 | 697 | ||||||||||||||||||
Adjusted EBITDA | $ | 10,212 | $ | - | $ | - | $ | - | $ | 10,212 | ||||||||||
Segment Breakdown | ||||||||||||||||||||
Service Operating Income | $ | 4,091 | $ | 4,091 | ||||||||||||||||
+ Depreciation & Amortization | 2,402 | 2,402 | ||||||||||||||||||
+ Transaction Expenses | 146 | 146 | ||||||||||||||||||
+ Other (Expense) / Income | (96 | ) | (96 | ) | ||||||||||||||||
+ Noncash Stock Compensation | 421 | 421 |
| |||||||||||||||||
Service Adjusted EBITDA | $ | 6,964 | $ | - | $ | - | $ | - | $ | 6,964 | ||||||||||
Distribution Operating Income | $ | 1,008 | $ | 1,008 | ||||||||||||||||
+ Depreciation & Amortization | 1,711 | 1,711 | ||||||||||||||||||
+ Transaction Expenses | 288 | 288 | ||||||||||||||||||
+ Other (Expense) / Income | (35 | ) | (35 | ) | ||||||||||||||||
+ Noncash Stock Compensation | 276 | 276 | ||||||||||||||||||
Distribution Adjusted EBITDA | $ | 3,248 | $ | - | $ | - | $ | - | $ | 3,248 | ||||||||||
TRANSCAT, INC. Adjusted EBITDA Reconciliation Table (In thousands) (Unaudited) | ||||||||||||||||||||
Fiscal 2024 | ||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||
Net Income | $ | 2,949 | $ | 460 | $ | 3,348 | $ | 6,890 | $ | 13,647 | ||||||||||
+ Interest Expense / (Income) | 814 | 890 | (266 | ) | (411 | ) | 1,027 | |||||||||||||
+ Other Expense / (Income) | 64 | (49 | ) | 289 | 11 | 315 | ||||||||||||||
+ Tax Provision | 813 | 342 | 923 | 2,714 | 4,792 | |||||||||||||||
Operating Income | $ | 4,640 | $ | 1,643 | $ | 4,294 | $ | 9,204 | $ | 19,781 | ||||||||||
+ Depreciation & Amortization | 2,790 | 3,269 | 3,783 | 3,635 | 13,477 | |||||||||||||||
+ Transaction Expenses | 185 | 328 | 78 | 37 | 628 | |||||||||||||||
+ Acquisition Earn-Out Adjustment | - | 2,800 | 87 | (2,357 | ) | 530 | ||||||||||||||
+ Other (Expense) / Income | (64 | ) | 49 | (289 | ) | (11 | ) | (315 | ) | |||||||||||
+ Noncash Stock Compensation | 930 | 1,241 | 1,167 | 1,174 | 4,512 | |||||||||||||||
Adjusted EBITDA | $ | 8,481 | $ | 9,330 | $ | 9,120 | $ | 11,682 | $ | 38,613 | ||||||||||
Segment Breakdown | ||||||||||||||||||||
Service Operating Income | $ | 3,192 | $ | 742 | $ | 2,966 | $ | 8,144 | $ | 15,044 | ||||||||||
+ Depreciation & Amortization | 2,226 | 2,325 | 2,362 | 2,280 | 9,193 | |||||||||||||||
+ Transaction Expenses | 185 | 76 | 30 | (44 | ) | 247 | ||||||||||||||
+ Acquisition Earn-Out Adjustment | - | 2,800 | 87 | (2,357 | ) | 530 | ||||||||||||||
+ Other (Expense) / Income | (47 | ) | 29 | (203 | ) | (18 | ) | (239 | ) | |||||||||||
+ Noncash Stock Compensation | 676 | 826 | 737 | 736 | 2,975 | |||||||||||||||
Service Adjusted EBITDA | $ | 6,232 | $ | 6,798 | $ | 5,979 | $ | 8,741 | $ | 27,750 | ||||||||||
Distribution Operating Income | $ | 1,448 | $ | 901 | $ | 1,328 | $ | 1,060 | $ | 4,737 | ||||||||||
+ Depreciation & Amortization | 564 | 944 | 1,421 | 1,355 | 4,284 | |||||||||||||||
+ Transaction Expenses | - | 252 | 48 | 81 | 381 | |||||||||||||||
+ Other (Expense) / Income | (17 | ) | 20 | (86 | ) | 7 | (76 | ) | ||||||||||||
+ Noncash Stock Compensation | 254 | 415 | 430 | 438 | 1,537 | |||||||||||||||
Distribution Adjusted EBITDA | $ | 2,249 | $ | 2,532 | $ | 3,141 | $ | 2,941 | $ | 10,863 | ||||||||||
TRANSCAT, INC. Adjusted Diluted EPS Reconciliation Table (In Thousands, Except Per Share Amounts) (Unaudited) | ||||||||||||||||||||
Fiscal 2025 | ||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||
Net Income | $ | 4,408 | $ | 4,408 | ||||||||||||||||
+ Amortization of Intangible Assets | 1,749 | 1,749 | ||||||||||||||||||
+ Acquisition Amortization of Backlog | 24 | 24 | ||||||||||||||||||
+ Acquisition Deal Costs | 434 | 434 | ||||||||||||||||||
+ Acquisition Stock Expense | 234 | 234 | ||||||||||||||||||
+ Income Tax Effect at 25% | (610 | ) | (610 | ) | ||||||||||||||||
+ Acquisition Earn-Out Adjustment | - | - | ||||||||||||||||||
Adjusted Net Income | $ | 6,239 | $ | - | $ | - | $ | - | $ | 6,239 | ||||||||||
Average Diluted Shares Outstanding | 9,196 | 9,196 | ||||||||||||||||||
Diluted Earnings Per Share | $ | 0.48 | $ | - | $ | - | $ | - | $ | 0.48 | ||||||||||
Adjusted Diluted Earnings Per Share | $ | 0.68 | $ | - | $ | - | $ | - | $ | 0.68 | ||||||||||
Fiscal 2024 | ||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||
Net Income | $ | 2,949 | $ | 460 | $ | 3,348 | $ | 6,890 | $ | 13,647 | ||||||||||
+ Amortization of Intangible Assets | 1,093 | 1,416 | 1,674 | 1,447 | 5,630 | |||||||||||||||
+ Acquisition Amortization of Backlog | - | 19 | 24 | 24 | 67 | |||||||||||||||
+ Acquisition Deal Costs | 185 | 328 | 78 | 81 | 672 | |||||||||||||||
+ Acquisition Stock Expense | 182 | 274 | 265 | 258 | 979 | |||||||||||||||
+ Income Tax Effect at 25% | (365 | ) | (509 | ) | (532 | ) | (431 | ) | (1,837 | ) | ||||||||||
+ Acquisition Earn-Out Adjustment | - | 2,800 | 87 | (2,358 | ) | 529 | ||||||||||||||
Adjusted Net Income | $ | 4,044 | $ | 4,788 | $ | 4,944 | $ | 5,911 | $ | 19,687 | ||||||||||
Average Diluted Shares Outstanding | 7,762 | 7,948 | 8,752 | 8,972 | 8,352 | |||||||||||||||
Diluted Earnings Per Share | $ | 0.38 | $ | 0.06 | $ | 0.38 | $ | 0.77 | $ | 1.63 | ||||||||||
Adjusted Diluted Earnings Per Share | $ | 0.52 | $ | 0.60 | $ | 0.56 | $ | 0.66 | $ | 2.36 | ||||||||||
TRANSCAT, INC. Additional Information - Business Segment Data (Dollars in thousands) (Unaudited) | ||||||||||||||||
Change | ||||||||||||||||
SERVICE | FY 2025 Q1 | FY 2024 Q1 | $'s | % | ||||||||||||
Service Revenue | $ | 43,778 | $ | 39,853 | $ | 3,925 | 9.8 | % | ||||||||
Cost of Revenue | 28,895 | 26,882 | 2,013 | 7.5 | % | |||||||||||
Gross Profit | $ | 14,883 | $ | 12,971 | $ | 1,912 | 14.7 | % | ||||||||
Gross Margin | 34.0 | % | 32.5 | % | ||||||||||||
Selling, Marketing & Warehouse Expenses | $ | 4,303 | $ | 4,106 | $ | 197 | 4.8 | % | ||||||||
General and Administrative Expenses | 6,490 | 5,673 | 817 | 14.4 | % | |||||||||||
Operating Income | $ | 4,090 | $ | 3,192 | $ | 898 | 28.1 | % | ||||||||
% of Revenue | 9.3 | % | 8.0 | % | ||||||||||||
Change | ||||||||||||||||
DISTRIBUTION | FY 2025 Q1 | FY 2024 Q1 | $'s | % | ||||||||||||
Distribution Sales | $ | 22,929 | $ | 20,745 | $ | 2,184 | 10.5 | % | ||||||||
Cost of Sales | 15,157 | 15,006 | 151 | 1.0 | % | |||||||||||
Gross Profit | $ | 7,772 | $ | 5,739 | $ | 2,033 | 35.4 | % | ||||||||
Gross Margin | 33.9 | % | 27.7 | % | ||||||||||||
Selling, Marketing & Warehouse Expenses | $ | 3,498 | $ | 2,363 | $ | 1,135 | 48.0 | % | ||||||||
General and Administrative Expenses | 3,265 | 1,928 | 1,337 | 69.3 | % | |||||||||||
Operating Income | $ | 1,009 | $ | 1,448 | $ | (439 | ) | (30.3 | )% | |||||||
% of Sales | 4.4 | % | 7.0 | % | ||||||||||||
Change | ||||||||||||||||
TOTAL | FY 2025 Q1 | FY 2024 Q1 | $'s | % | ||||||||||||
Total Revenue | $ | 66,707 | $ | 60,598 | $ | 6,109 | 10.1 | % | ||||||||
Total Cost of Revenue | 44,052 | 41,888 | 2,164 | 5.2 | % | |||||||||||
Gross Profit | $ | 22,655 | $ | 18,710 | $ | 3,945 | 21.1 | % | ||||||||
Gross Margin | 34.0 | % | 30.9 | % | ||||||||||||
Selling, Marketing & Warehouse Expenses | $ | 7,801 | $ | 6,469 | $ | 1,332 | 20.6 | % | ||||||||
General and Administrative Expenses | 9,755 | 7,601 | 2,154 | 28.3 | % | |||||||||||
Operating Income | $ | 5,099 | $ | 4,640 | $ | 459 | 9.9 | % | ||||||||
% of Revenue | 7.6 | % | 7.7 | % | ||||||||||||
Contacts
Tom Barbato
(585) 505-6530
Thomas.Barbato@transcat.com
