- Fourth Quarter Service gross margin expanded 170 basis points
driven by 13% Service organic growth
- Fourth Quarter Distribution gross margin expands 510 basis
points to 30.3% on strength of Rentals
- Fourth Quarter Consolidated adjusted EBITDA grew 29.8% with
margins expanding 200 basis points
- Generated $32.6M of Operating Cash Flow in fiscal 2024, 92%
growth versus prior year
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
fourth quarter ended March 30, 2024 (the “fourth quarter”) of
fiscal year 2024, which ends March 30, 2024 (“fiscal 2024”).
Results include the previously reported acquisitions of TIC-MS,
Inc. ("TIC-MS") effective March 27, 2023, SteriQual, Inc.
("SteriQual"), effective July 12, 2023 and Axiom Test Equipment,
Inc. (“Axiom”), effective August 8, 2023. Transcat operates on a
52/53 week fiscal year, ending the last Saturday in March. In a
52-week fiscal year, each of the four quarters is a 13-week period.
In a 53-week fiscal year (which occurs once every five or six
years), the last quarter is a 14-week period. Fiscal 2024 consisted
of 53 weeks while the fiscal year 2023 consisted of 52 weeks.
“We are extremely pleased with our fourth quarter and full year
fiscal 2024 results as double-digit organic Service revenue growth
and increased productivity drove Service gross margin expansion
while Distribution gross margins soared due to growth in Rentals,”
commented Lee D. Rudow, President and CEO. “Adjusted EBITDA growth
of 30% for the fourth quarter reflects our ability to leverage
organic Service revenue growth and the successful integration of
acquired companies. Fourth quarter Consolidated revenue was up 14%
with gross margin expansion of 300 basis points year over year
driven by our widened breadth of service offerings, excellent
performance in the higher-margin rental business, and execution of
automation and process improvement initiatives. Service segment
revenue grew 18% in the fourth quarter as demand in highly
regulated end markets, including life sciences, remained strong and
our differentiated value proposition continues to resonate
throughout Transcat’s expanded addressable markets.”
Mr. Rudow added, “In the fiscal year we completed three
acquisitions, TIC-MS, SteriQual, and Axiom Test Equipment that have
expanded our addressable markets, widened the breadth of offerings,
and allowed us to leverage our existing infrastructure. The key
differentiator of the Transcat acquisition strategy is the
effectiveness of our integration processes enabling new
acquisitions to very quickly be accretive to the overall company.
In addition to strong returns, the acquisitions present compelling
cross-sell synergies to drive organic calibration service growth
and rental sales into these newly acquired customer bases. On a
final note, we are extremely excited about our recent rental
acquisition, Becnel Rental Tools, which closed just after the end
of the fiscal year. Becnel is a well-run business, with great
customer relationships, which will differentiate our higher margin
rental portfolio and will in time provide significant opportunities
for cross-selling of Transcat’s products and services.”
Fourth Quarter Fiscal 2024 Review (Results are compared
with the fourth quarter of the fiscal year ended March 25, 2023
("fiscal 2023"))
($ in thousands)
Change
FY24 Q4
FY23 Q4
$'s
%
Service Revenue
$
46,732
$
39,763
$
6,969
17.5
%
Distribution Sales
24,181
22,304
1,877
8.4
%
Revenue
$
70,913
$
62,067
$
8,846
14.3
%
Gross Profit
$
24,035
$
19,150
$
4,885
25.5
%
Gross Margin
33.9
%
30.9
%
Operating Income
$
9,204
$
5,855
$
3,349
57.2
%
Operating Margin
13.0
%
9.4
%
Net Income
$
6,890
$
3,658
$
3,232
88.4
%
Net Margin
9.7
%
5.9
%
Adjusted EBITDA*
$
11,682
$
8,998
$
2,684
29.8
%
Adjusted EBITDA* Margin
16.5
%
14.5
%
Diluted EPS
$
0.77
$
0.48
$
0.29
60.0
%
Adjusted Diluted EPS*
$
0.66
$
0.60
$
0.06
9.8
%
*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 $70.9 million, an increase of 14.3%,
and includes the benefit of the 53rd week in fiscal 2024.
Consolidated gross profit was $24.0 million, an increase of $4.9
million, or 25.5%, while gross margin expanded 300 basis points due
to margin improvements in both operating segments. Operating
expenses were $14.8 million, an increase of $1.5 million, or 11.6%,
driven by incremental expenses from acquired businesses (including
stock-based compensation expense), increased intangibles
amortization expense, higher sales-based incentives, and a reversal
of the non-cash charge related to the amended NEXA Earn-Out
agreement. Adjusted EBITDA was $11.7 million which represented an
increase of $2.7 million or 29.8%. Net income per diluted share of
$0.77 was up from $0.48 and adjusted diluted earnings per share
increased to $0.66 versus $0.60 last year, which includes the
non-cash reversal of $2.4 million for the amended NEXA Earn-Out
agreement and a higher effective tax rate.
Service segment delivers record fourth quarter
results
Represents the accredited calibration, repair, inspection and
laboratory instrument services business (65.9% of total revenue for
the fourth quarter of fiscal 2024).
($ in thousand)
Change
FY24 Q4
FY23 Q4
$'s
%
Service Segment Revenue
$
46,732
$
39,763
$
6,969
17.5
%
Gross Profit
$
16,704
$
13,523
$
3,181
23.5
%
Gross Margin
35.7
%
34.0
%
Operating Income
$
8,144
$
4,547
$
3,597
79.1
%
Operating Margin
17.4
%
11.4
%
Adjusted EBITDA*
$
8,741
$
7,039
$
1,702
24.2
%
Adjusted EBITDA* Margin
18.7
%
17.7
%
*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 $46.7 million, an increase of $7.0
million or 17.5% and included $1.2 million of incremental revenue
from acquisitions. Organic revenue growth was 13.0% driven by
strong end market demand and continued market share gains. When
normalized for the 53rd week, organic revenue growth falls within
the range of high single-digit to low double-digit guidance. The
segment gross margin increased 170 basis points from prior year
primarily due to continued productivity improvements.
Distribution segment shows continued margin
improvement
Represents the sale and rental of new and used professional
grade handheld test, measurement and control instrumentation (34.1%
of total revenue for the fourth quarter of fiscal 2024).
($ in thousands)
Change
FY24 Q4
FY23 Q4
$'s
%
Distribution Segment Sales
$
24,181
$
22,304
$
1,877
8.4
%
Gross Profit
$
7,331
$
5,627
$
1,704
30.3
%
Gross Margin
30.3
%
25.2
%
Operating Income
$
1,060
$
1,308
$
(248
)
(19.0
)%
Operating Margin
4.4
%
5.9
%
Adjusted EBITDA*
$
2,941
$
1,959
$
982
50.1
%
Adjusted EBITDA* Margin
12.2
%
8.8
%
*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 $24.2 million, an increase of 8.4% on
improved end market demand and strength in our Rentals business.
Distribution segment gross margin was 30.3%, an increase of 510
basis points due to a favorable sales mix driven by strength in the
Rentals business.
Full-Year Fiscal 2024 Review (Results are compared with
full-year fiscal 2023)
($ in thousands)
Change
FY 2024
FY 2023
$'s
%
Service Revenue
169,525
144,883
$
24,642
17.0
%
Distribution Sales
89,956
85,686
4,270
5.0
%
Revenue
$
259,481
$
230,569
$
28,912
12.5
%
Gross Profit
$
83,806
$
68,355
$
15,451
22.6
%
Gross Margin
32.3
%
29.6
%
Operating Income
$
19,781
$
16,248
$
3,533
21.7
%
Operating Margin
7.6
%
7.0
%
Net Income
$
13,647
$
10,688
$
2,959
27.7
%
Net Margin
5.3
%
4.6
%
Adjusted EBITDA*
$
38,613
$
30,421
$
8,192
26.9
%
Adjusted EBITDA* Margin
14.9
%
13.2
%
Diluted EPS
$
1.63
$
1.40
$
0.23
16.7
%
Adjusted Diluted EPS*
$
2.36
$
1.93
$
0.43
22.1
%
*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.
Total revenue was $259.5 million, an increase of $28.9 million
or 12.5%. Consolidated gross profit was $83.8 million, up $15.5
million, or 22.6%, and gross margin expanded to 32.3% or 270 basis
points. Consolidated operating expenses were $64.0 million, an
increase of $11.9 million, or 22.9%, driven by incremental expenses
from acquired businesses (including stock-based compensation
expense), increased intangibles amortization expense, and
investments in technology and our employee base to support future
growth. As a result, consolidated operating income was $19.8
million compared with $16.2 million in last fiscal year’s period,
an increase of 21.7%.
Adjusted EBITDA was $38.6 million which represented an increase
of $8.2 million or 26.9%. Net income per diluted share increased to
$1.63 from $1.40 and adjusted diluted earnings per share was $2.36
versus $1.93 last year.
Balance Sheet and Cash Flow Overview
On March 30, 2024, the Company had $35.2 million of cash and
marketable securities on hand and $80.0 million available for
borrowing under its secured revolving credit facility. Total debt
of $4.2 million was down $44.9 million from fiscal 2023 year-end
due to cash proceeds from our secondary stock offering. The
Company’s leverage ratio, as defined in the credit agreement, was
0.10 on March 30, 2024, compared with 1.60 on March 25, 2023.
Outlook
Mr. Rudow concluded, “The Transcat team continues to deliver
strong revenue growth and sustainable gross margin expansion as can
be seen over the past decade and a half of profitable growth. As we
think ahead into fiscal 2025, our business will continue to benefit
from recurring revenue streams in highly regulated end markets,
including life sciences, along with a growing Rentals business that
performs well throughout various economic cycles. 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 process improvement will continue to be key
enablers of future margin expansion.”
“We continue to be proud of our work on the leadership
development front. We couldn’t be happier with our new COO Mike
West; his performance has been stellar and impactful since taking
over the role. Likewise, we are promoting John Cummins to lead the
significant new growth opportunity Transcat Single Source Solution
(TS3). TS3 is a comprehensive value proposition, full suite of
services, sold to high level decision makers for new capital
projects and existing operations, and a critical next step towards
integration of NEXA's Cost, Control and Optimization services with
the Transcat calibration business. The NEXA earnout agreement
accrual has been reversed and converted to an incentive program
associated with this new and expanded role. On a final note, we are
very proud to announce Jim Jenkins was offered and accepted the
role as CEO of Lakeland Industries. Jim has been our General
Counsel for the last four years and we would like to thank him for
his contributions to Transcat.”
“The Service segment has substantial runway ahead for growth,
both organically and through acquisition. Our robust acquisition
pipeline should enable strategic, accretive acquisitions that drive
synergistic growth opportunities and will be a key component of our
go-forward strategy. Transcat has a diverse portfolio designed to
generate high returns for years to come. We believe strong
execution, paired with several strategic acquisitions, will drive
significant gains in the market and across key business channels.
Our investments in leadership development, automation, and process
improvement have made Transcat a stronger company and we are well
positioned to continue to generate sustainable long-term
shareholder value.”
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, May
21, 2024 at 11:00 a.m. ET. Management will review the financial and
operating results for the fourth quarter and full fiscal year, 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 8, 2024. To listen to the
archived call, dial (412) 317-6671 and enter conference ID number
13746612, 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, Cost, Control and Optimizations services, 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)
(Unaudited)
Fourth Quarter Ended
Fiscal Year Ended
March 30,
March 25,
March 30,
March 25,
2024
2023
2024
2023
Service Revenue
$
46,732
$
39,763
$
169,525
$
144,883
Distribution Sales
24,181
22,304
89,956
85,686
Total Revenue
70,913
62,067
259,481
230,569
Cost of Service Revenue
30,028
26,240
112,272
98,245
Cost of Distribution Sales
16,850
16,677
63,403
63,969
Total Cost of Revenue
46,878
42,917
175,675
162,214
Gross Profit
24,035
19,150
83,806
68,355
Selling, Marketing and Warehouse
Expenses
7,866
6,446
28,710
24,761
General and Administrative Expenses
6,965
6,849
35,315
27,346
Total Operating Expenses
14,831
13,295
64,025
52,107
Operating Income
9,204
5,855
19,781
16,248
Interest and Other Expense, net
(400
)
1,029
1,342
2,761
Income Before Income Taxes
9,604
4,826
18,439
13,487
Provision for Income Taxes
2,714
1,168
4,792
2,799
Net Income
$
6,890
$
3,658
$
13,647
$
10,688
Basic Earnings Per Share
$
0.78
$
0.48
$
1.66
$
1.42
Average Shares Outstanding
8,832
7,562
8,239
7,551
Diluted Earnings Per Share
$
0.77
$
0.48
$
1.63
$
1.40
Average Shares Outstanding
8,972
7,688
8,352
7,645
TRANSCAT, INC.
CONSOLIDATED BALANCE
SHEETS
(In Thousands, Except Share and
Per Share Amounts)
March 30,
March 25,
2024
2023
ASSETS
Current Assets:
Cash and Cash Equivalents
$
19,646
$
1,531
Marketable Securities
15,533
-
Accounts Receivable, less allowance for
credit losses of $544 and $457 as of March 30, 2024 and March 25,
2023, respectively
47,779
44,698
Other Receivables
506
506
Inventory, net
17,418
16,929
Prepaid Expenses and Other Current
Assets
4,276
3,935
Total Current Assets
105,158
67,599
Property and Equipment, net
38,944
29,064
Goodwill
105,585
69,360
Intangible Assets, net
19,987
13,799
Right to Use Assets, net
16,823
14,876
Other Assets
1,055
1,051
Total Assets
$
287,552
$
195,749
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities:
Accounts Payable
$
11,495
$
15,869
Accrued Compensation and Other Current
Liabilities
16,739
10,201
Income Taxes Payable
2,926
-
Current Portion of Long-Term Debt
2,339
2,248
Total Current Liabilities
33,499
28,318
Long-Term Debt
1,817
46,869
Deferred Tax Liabilities, net
9,291
6,538
Lease Liabilities
14,873
12,960
Other Liabilities
2,903
1,434
Total Liabilities
62,383
96,119
Shareholders' Equity:
Common Stock, par value $0.50 per share,
30,000,000 shares authorized; 8,839,299 and 7,562,604 shares issued
and outstanding as of March 30, 2024 and March 25, 2023,
respectively
4,420
3,781
Capital in Excess of Par Value
141,624
27,886
Accumulated Other Comprehensive Loss
(949
)
(1,200
)
Retained Earnings
80,074
69,163
Total Shareholders' Equity
225,169
99,630
Total Liabilities and Shareholders'
Equity
$
287,552
$
195,749
TRANSCAT, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In Thousands)
(Unaudited)
Fiscal Year Ended
March 30,
March 25,
2024
2023
Cash Flows from Operating
Activities:
Net Income
$
13,647
$
10,688
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Net Loss on Disposal of Property and
Equipment
53
88
Deferred Income Taxes
(1,597
)
(186
)
Depreciation and Amortization
13,544
10,955
Provision for Accounts Receivable and
Inventory Reserves
406
74
Stock-Based Compensation Expense
4,512
3,377
Changes in Assets and Liabilities, net of
acquisitions:
Accounts Receivable and Other
Receivables
(1,259
)
(5,226
)
Inventory
2,318
(3,377
)
Prepaid Expenses and Other Current
Assets
(299
)
1,119
Accounts Payable
(5,005
)
1,600
Accrued Compensation and Other Current
Liabilities
3,397
(2,161
)
Income Taxes Payable
2,899
-
Net Cash Provided by Operating
Activities
32,616
16,951
Cash Flows from Investing
Activities:
Purchases of Property and Equipment
(13,280
)
(9,414
)
Proceeds from Sale of Property and
Equipment
-
10
Business Acquisitions, net of cash
acquired
(12,859
)
(9,109
)
Purchases of Marketable Securities
(15,533
)
-
Net Cash Used in Investing Activities
(41,672
)
(18,513
)
Cash Flows from Financing
Activities:
Proceeds from Revolving Credit Facility,
net
(42,713
)
2,786
Repayments of Term Loan
(2,248
)
(2,121
)
Issuance of Common Stock, net of direct
costs
77,266
658
Repurchase of Common Stock
(4,906
)
(447
)
Net Cash Provided by Financing
Activities
27,399
876
Effect of Exchange Rate Changes on Cash
and Cash Equivalents
(228
)
821
Net Increase in Cash and Cash
Equivalents
18,115
135
Cash and Cash Equivalents at Beginning of
Period
1,531
1,396
Cash and Cash Equivalents at End of
Period
$
19,646
$
1,531
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
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 Expense
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 Expense
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 Expense
-
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 EBITDA Reconciliation
Table
(In thousands)
(Unaudited)
Fiscal 2023
Q1
Q2
Q3
Q4
YTD
Net Income
$
3,072
$
2,357
$
1,601
$
3,658
$
10,688
+ Interest Expense
360
550
726
781
2,417
+ Other Expense / (Income)
(204
)
(13
)
313
248
344
+ Tax Provision
376
732
523
1,168
2,799
Operating Income
$
3,604
$
3,626
$
3,163
$
5,855
$
16,248
+ Depreciation & Amortization
2,641
2,778
2,824
2,712
10,955
+ Transaction Expense
30
-
96
59
185
+ Other (Expense) / Income
204
13
(313
)
(248
)
(344
)
+ Noncash Stock Compensation
828
1,114
815
620
3,377
Adjusted EBITDA
$
7,307
$
7,531
$
6,585
$
8,998
$
30,421
Segment
Breakdown
Service Operating Income
$
2,532
$
2,507
$
1,836
$
4,547
$
11,422
+ Depreciation & Amortization
2,139
2,246
2,268
2,147
8,800
+ Transaction Expense
30
-
96
59
185
+ Other (Expense) / Income
134
3
(214
)
(170
)
(247
)
+ Noncash Stock Compensation
638
793
576
456
2,463
Service Adjusted EBITDA
$
5,473
$
5,549
$
4,562
$
7,039
$
22,623
Distribution Operating Income
$
1,072
$
1,119
$
1,327
$
1,308
$
4,826
+ Depreciation & Amortization
502
532
556
565
2,155
+ Other (Expense) / Income
70
10
(99
)
(78
)
(97
)
+ Noncash Stock Compensation
190
321
239
164
914
Distribution Adjusted EBITDA
$
1,834
$
1,982
$
2,023
$
1,959
$
7,798
TRANSCAT, INC.
Adjusted Diluted EPS
Reconciliation Table
(In Thousands, Except Per Share
Amounts)
(Unaudited)
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
Fiscal 2023
Q1
Q2
Q3
Q4
YTD
Net Income
$
3,072
$
2,357
$
1,601
$
3,658
$
10,688
+ Amortization of Intangible Assets
1,084
1,147
1,180
1,043
4,454
+ Acquisition Deal Costs
30
-
96
59
185
+ Acquisition Stock Expense
269
239
158
167
833
+ Income Tax Effect at 25%
(346
)
(346
)
(359
)
(317
)
(1,368
)
Adjusted Net Income
$
4,109
$
3,397
$
2,676
$
4,610
$
14,792
Average Diluted Shares Outstanding
7,629
7,646
7,666
7,688
7,645
Diluted Earnings Per Share
$
0.40
$
0.31
$
0.21
$
0.48
$
1.40
Adjusted Diluted Earnings Per Share
$
0.54
$
0.44
$
0.35
$
0.60
$
1.93
TRANSCAT, INC.
Additional Information -
Business Segment Data
(Dollars in thousands)
(Unaudited)
Change
SERVICE
FY 2024 Q4
FY 2023 Q4
$'s
%
Service Revenue
$
46,732
$
39,763
$
6,969
17.5
%
Cost of Revenue
30,028
26,240
3,788
14.4
%
Gross Profit
$
16,704
$
13,523
$
3,181
23.5
%
Gross Margin
35.7
%
34.0
%
Selling, Marketing & Warehouse
Expenses
$
4,490
$
4,121
$
369
9.0
%
General and Administrative Expenses
4,070
4,855
(785
)
(16.2
)%
Operating Income
$
8,144
$
4,547
$
3,597
79.1
%
% of Revenue
17.4
%
11.4
%
Change
DISTRIBUTION
FY 2024 Q4
FY 2023 Q4
$'s
%
Distribution Sales
$
24,181
$
22,304
$
1,877
8.4
%
Cost of Sales
16,850
16,677
173
1.0
%
Gross Profit
$
7,331
$
5,627
$
1,704
30.3
%
Gross Margin
30.3
%
25.2
%
Selling, Marketing & Warehouse
Expenses
$
3,376
$
2,325
$
1,051
45.2
%
General and Administrative Expenses
2,895
1,994
901
45.2
%
Operating Income
$
1,060
$
1,308
$
(248
)
(19.0
)%
% of Sales
4.4
%
5.9
%
Change
TOTAL
FY 2024 Q4
FY 2023 Q4
$'s
%
Total Revenue
$
70,913
$
62,067
$
8,846
14.3
%
Total Cost of Revenue
46,878
42,917
3,961
9.2
%
Gross Profit
$
24,035
$
19,150
$
4,885
25.5
%
Gross Margin
33.9
%
30.9
%
Selling, Marketing & Warehouse
Expenses
$
7,866
$
6,446
$
1,420
22.0
%
General and Administrative Expenses
6,965
6,849
116
1.7
%
Operating Income
$
9,204
$
5,855
$
3,349
57.2
%
% of Revenue
13.0
%
9.4
%
TRANSCAT, INC.
Additional Information -
Business Segment Data
(Dollars in thousands)
(Unaudited)
Change
FY 2024
FY 2023
SERVICE
YTD
YTD
$'s
%
Service Revenue
$
169,525
$
144,883
$
24,642
17.0
%
Cost of Revenue
112,272
98,245
14,027
14.3
%
Gross Profit
$
57,253
$
46,638
$
10,615
22.8
%
Gross Margin
33.8
%
32.2
%
Selling, Marketing & Warehouse
Expenses
$
16,942
$
15,725
$
1,217
7.7
%
General and Administrative Expenses
25,268
19,491
5,777
29.6
%
Operating Income
$
15,043
$
11,422
$
3,621
31.7
%
% of Revenue
8.9
%
7.9
%
Change
FY 2024
FY 2023
DISTRIBUTION
YTD
YTD
$'s
%
Distribution Sales
$
89,956
$
85,686
$
4,270
5.0
%
Cost of Sales
63,403
63,969
(566
)
(0.9
)%
Gross Profit
$
26,553
$
21,717
$
4,836
22.3
%
Gross Margin
29.5
%
25.3
%
Selling, Marketing & Warehouse
Expenses
$
11,769
$
9,036
$
2,733
30.2
%
General and Administrative Expenses
10,046
7,855
2,191
27.9
%
Operating Income
$
4,738
$
4,826
$
(88
)
(1.8
)%
% of Sales
5.3
%
5.6
%
Change
FY 2024
FY 2023
TOTAL
YTD
YTD
$'s
%
Total Revenue
$
259,481
$
230,569
$
28,912
12.5
%
Total Cost of Revenue
175,675
162,214
13,461
8.3
%
Gross Profit
$
83,806
$
68,355
$
15,451
22.6
%
Gross Margin
32.3
%
29.6
%
Selling, Marketing & Warehouse
Expenses
$
28,711
$
24,761
$
3,950
16.0
%
General and Administrative Expenses
35,314
27,346
7,968
29.1
%
Operating Income
$
19,781
$
16,248
$
3,533
21.7
%
% of Revenue
7.6
%
7.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240520145167/en/
Tom Barbato (585) 505-6530 Thomas.Barbato@transcat.com
Grafico Azioni Transcat (NASDAQ:TRNS)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Transcat (NASDAQ:TRNS)
Storico
Da Feb 2024 a Feb 2025
