Press release
Transcat Reports Strong First Quarter Results with Significant Gross Margin Expansion and EBITDA Growth
Consolidated Gross Profit grew 21.1% on double-digit Revenue growth Distribution gross margins expanded 620 basis points on strength of rentals Service gross
About this update from Transcat, Inc.
[{"type":"text","content":"\n\nConsolidated Gross Profit grew 21.1% on double-digit Revenue growth\n\n\n\nDistribution gross margins expanded 620 basis points on strength of rentals\n\n\n\nService gross margins expanded 150 basis points on organic growth of 6.4% and improved productivity\n\n\n\nConsolidated adjusted EBITDA grew 20.4% with margins expanding 130 basis points\n\n\n\n ROCHESTER, N.Y.--(BUSINESS WIRE)--\nTranscat, 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.\n\n\n“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.”\n\n\nMr. 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...