Press release
Transcat Reports Strong First Quarter Results on 23% Service Revenue Growth and Solid Gross Margin Expansion
Consolidated revenue of $54.7 million up 14.4% from prior year; consolidated gross margin expanded 100 basis points to 29.3% Service segment revenue grew
About this update from Transcat, Inc.
[{"type":"text","content":"\n\nConsolidated revenue of $54.7 million up 14.4% from prior year; consolidated gross margin expanded 100 basis points to 29.3%\n\n\nService segment revenue grew 22.9% and gross margin increased to 32.0%; organic revenue grew 8.6%\n\n\nAdjusted EBITDA of $7.3 million up 19.6% from prior year; diluted earnings per share of $0.40 and adjusted diluted earnings per share of $0.54\n\n\nEnhanced leadership structure announced to support growth strategy; Mark Doheny appointed Chief Operating Officer and Tom Barbato appointed Chief Financial Officer\n\n\n ROCHESTER, N.Y.--(BUSINESS WIRE)--\nTranscat, Inc. (Nasdaq: TRNS) (“Transcat” or the “Company”), a leading provider of accredited calibration services, enterprise asset management services, and value-added distributor of professional grade handheld test, measurement and control instrumentation, today reported financial results for its first quarter ended June 25, 2022 (the “first quarter”) of fiscal year 2023, which ends March 25, 2023 (“fiscal 2023”). Results include the previously reported acquisitions of Upstate Metrology Inc. (“Upstate Metrology”) effective April 29, 2021, Cal OpEx Limited (d/b/a NEXA Enterprise Asset Management) (“NEXA”) effective August 31, 2021, Tangent Labs, LLC (“Tangent”) effective December 31, 2021 and Charlton Jeffmont Inc., Raitz Inc. and Toolroom Calibration Inc. (d/b/a Alliance Calibration) (“Alliance”) effective May 31, 2022.\n\n“The start to our fiscal year 2023 was strong as we delivered another quarter of well-rounded financial performance.” commented Lee D. Rudow, President and CEO. “Service segment revenue grew 23% as demand in our highly-regulated end markets, including life sciences, remained strong and our recent acquisitions continued to perform at a high level. We reported 9% organic growth, which included several new client-based lab implementations in the quarter. We are pleased with these wins, the first since the onset of COVID-19, and are excited by the level of activity in our new client-based lab pipeline, which is supportive of a return to pre-pandemic client-based lab growth levels. Our gross margin expanded 20 basis points to 32.0%, even with elevated levels of implementation start-up costs, which is typical for new client-based labs.”\n\n“Distribution segment first quarter revenue increased 2.7% as growth rates continued to be nega...