Transcat, Inc. · NASDAQ:TRNS
Transcat — Q2 FY2018 Earnings Presentation
13 slides from Transcat's earnings presentation, Oct 25, 2017
Slide 1: Q2 Financial Results Fiscal 2018
Q2 Financial Results Fiscal 2018 Lee D. Rudow President and CEO Michael J. Tschiderer Chief Financial Officer TRANSGAT Trust in every measure
Slide 2: Safe Harbor Statement
TRANSCAT sts vy mess Safe Harbor Statement This presentation 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.
Slide 3: Second Quarter Fiscal 2018 Execution
TRANSCAT sti very measure Second Quarter Fiscal 2018 Execution Consolidated Results Service Segment Distribution Segment Revenue up 4.2% to $35.9 million Operating income down slightly given investments to enhance operating infrastructure and impact from hurricanes Net income of $0.8 million, or $0.
Slide 4: Revenue
TRANSCAT sti very measure Revenue ($ in millions) Q2 Service Segment Consolidated — Annual e182) $143.9 $148.5 $16.9 $118.5 $123.6 $122.2 a = Q2 FY 2017 Q2 FY 2018 FY 2014 FY 2015 FY 2016 FY 2017 Q2 FY 2018 T™™ | Service —_— Distribution Q2 Distribution Segment Service segment continues its strong o
Slide 5: Operating Income and Margin
TRANSCAT sti very measure Operating Income and Margin ($ in millions) Q2 Service Segment $0.8 $0.8 Q2 FY 2017 Q2 FY 2018 Q2 Distribution Segment - " Q2 FY 2017 Q2 FY 2018 *FY2014— Q2 FY 2018TTM Consolidated — Annual $7.9 $7.8 : ° S = < FY 2014 FY 2015 FY 2016 FY 2017 Q2 FY 2018 ™™™M \ Service @ Dist
Slide 6: Adjusted EBITDA and Margin
TRANSAT tiustin every measure Adjusted EBITDA* and Margin ($ in millions) Q2 Service Segment Consolidated — Annual $2.0 $2.1 = = ~ ‘i = , Q2 FY 2017 Q2 FY 2018 ' FY 2014 FY 2015 FY 2016 FY2017. Q2 FY 2018 T™ © Service @ Distribution CR DIS GET EGIRS Ua * 23% CAGR for Service segment** — Validates st
Slide 7: Net Income & Diluted EPS
TRANSAT tiustin every measure Net Income & Diluted EPS ($ in millions, except EPS) juarterl Annual < sf Fy2014FY2015— FY2016 = FY 2017 ae Q2 FY 2017 Q2 FY 2018 * Q2 effective tax rate of 34.2% compared with 33.9% + Income tax rate expected to range between 34% and 36% for full year fiscal 2018*
Slide 8: Financial Flexibility Supports Growth Strategy
TRANSAT tiustin every measure Financial Flexibility Supports Growth Strategy ($ in millions) Total Debt orate * $8.3 million available from credit facility 3 $29.7 as of September 23, 2017 27.3 * Total debt to TTM Adjusted EBITDA* 2.0x i 1 ae a at quarter-end r | * YTD FY18 CapEx of $3.9M for rental
Slide 9: FY 2018 Outlook -- Strong Momentum
TRANSCAT ins: ‘in every measure FY 2018 Outlook* -- Strong Momentum Value proposition continues to resonate in the market Service segment: Expect solid organic growth and improved productivity Distribution segment: Optimistic that performance will continue Expect impact of Hurricane Harvey on Housto
Slide 10: Upcoming Investor Relations Calendar
TRANSCAT ust ovry measure Upcoming Investor Relations Calendar Nov 15/16 IDEAS Southwest Conference (DAL) Dec 14 Benchmark Micro Cap Discovery Conference
Slide 11: Supplemental Information
Supplemental Information TRANSGAT Trust in every measure
Slide 12: Adjusted EBITDA Reconciliation
TRANSCAT rusts ny nse Adjusted EBITDA Reconciliation (Sin thousands) Fy 2014 FY 2015 FY 2016 FY2017__Q2FY8TTM Net Income $ 3,984 $ 4026 $ 4124 $ 4522 $ 4,337 + Interest Expense 130 234 247 79 919 + Other Expense / (Income) 129 a 43 Br 35 +Tax Provision 2,462 2,397 1,883 2,642 2,496 Operating income
Slide 13: Segment Adjusted EBITDA Reconciliation
TRANSCAT rusts ny nse Segment Adjusted EBITDA Reconciliation (Sin thousands) FY 2014 Fy 2015 FY 2016 FY2017__Q2FY18TTM Service Operating Income $ 2379 $ 3693 $ 4155 $ 4769 $ 4609 + Depreciation & Amortization 2,144 2,362 3,216 4,860 4,493 +Other (Expense) / Income (241) (138) (64) (55) (40) +Noncash