Press release
Transcat Reports Second Quarter Adjusted EBITDA Increase of 35.5% to $7.1 Million on Strong Revenue Growth and Gross Margin Expansion
Consolidated revenue of $50.4 million up 21.1% from prior year Service segment revenue grew 20.3% and gross margin expanded 70 basis points to 32.9%; organic
About this update from Transcat, Inc.
[{"type":"text","content":"\n\nConsolidated revenue of $50.4 million up 21.1% from prior year\n\n\nService segment revenue grew 20.3% and gross margin expanded 70 basis points to 32.9%; organic revenue grew 14.0%\n\n\nDistribution segment revenue grew 22.2% and gross margin expanded 240 basis points to 23.5%\n\n\nOperating expenses include $0.8 million of one-time transaction costs from NEXA acquisition; adjusted EBITDA of $7.1 million, up 35.5% from prior year\n\n\n ROCHESTER, N.Y.--(BUSINESS WIRE)--\nTranscat, Inc. (Nasdaq: TRNS) (“Transcat” or the “Company”), a leading provider of accredited calibration, repair, inspection and laboratory instrument services and value-added distributor of professional grade handheld test, measurement and control instrumentation, today reported financial results for its second quarter ended September 25, 2021 (the “second quarter”) of fiscal year 2022, which ends March 26, 2022 (“fiscal 2022”). Results include the previously reported acquisitions of BioTek Services, Inc. (“BioTek”) effective December 16, 2020, Upstate Metrology (“Upstate”) effective April 29, 2021 and Cal OpEx Limited (d/b/a NEXA Enterprise Asset Management), (“NEXA”) effective August 31, 2021.\n\n“Our excellent second quarter results were driven by broad-based revenue strength and solid operational execution across both of our operating segments.” commented Lee D. Rudow, President and CEO. “Our Service segment revenue grew 20.3% and gross margin increased 70 basis points to a second quarter record of 32.9%. We reported 14.0% organic revenue growth as demand in our highly regulated end markets, including life sciences, remained strong. We are pleased with the continued expansion of our gross margin, which was largely driven by operating leverage on our fixed costs from organic growth.”\n\n“Our Distribution segment revenue grew 22.2% on improved demand and an easier comparison against a prior-year period that was significantly impacted by the COVID-19 pandemic. Importantly, this segment has fully recovered from last year’s lows and is now exceeding pre-pandemic levels as revenue was up double-digits when compared to the second quarter of fiscal year 2020. Overall, our Service segment performance drove second quarter consolidated adjusted EBITDA of $7.1 million, an increase of $1.9 million or 35.5% from the prior year.”\n\nMr. Rudow added, “We are excited ...