Transcat, Inc. · NASDAQ:TRNS
Transcat — Q1 FY2022 Earnings Presentation
15 slides from Transcat's earnings presentation, Jul 28, 2021
Slide 1: Q1 Financial Results Fiscal 2022
Q1 Financial Results Fiscal 2022 Lee D. Rudow President and CEO Mark A. Doheny Chief Financial Officer 1
Slide 2: Safe Harbor Statement
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. Forward-looking state
Slide 3: Q1 FY22 Execution
Q1 FY22 Execution Revenue up 22.8% to a first quarter record of $47.8M Consolidated Gross margin expanded 410 basis points to 28.3% Results Exceeded expectations: generated $6.1M of adjusted EBITDA, up 75% vs. PY Achieved net income of $3.7M or $0.49 per diluted share 16.6% organic revenue growth; t
Slide 4: Revenue
Revenue ($ in millions) Q1 Consolidated Q1 Service Segment $47.8 $27.6 $23.0 +20% +23% $38.9 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 Distribution Segment Consolidated revenue up 23% with broad-based strength across both operating segments $20.2 Service organic growth accelerated to 16.6% $15.9 27% Distri
Slide 5: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Q1 Consolidated Q1 Service Segment $13.5 $8.8 $6.1 +44% $9.4 26.4% 31.8% 24.2% 28.3% Q1 2021 Q1 2022 Q1 2021 Q1 2022 Consolidated gross margin expanded 410 basis points Q1 Distribution Segment Service gross margin of 31.8% expanded 540 basis points $4.8 on ope
Slide 6: Operating Income
Operating Income ($ in millions) Q1 Service Segment Q1 Consolidated $3.0 $3.7 +283% $1.1 $1.0 4.9% 10.8% 2.5% 7.7% Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 Distribution Segment Consolidated operating income up $2.7 million from PY Service operating margin of 10.8% expanded 590 basis points and drove conso
Slide 7: Net Income & Diluted EPS
Net Income & Diluted EPS ($ in millions, except EPS) Q1 Net Income Q1 Diluted EPS $3.7 $0.49 $0.11 $0.8 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Both Q1 FY22 and Q1 FY21 included discrete tax benefits due to tax accounting associated with share- based awards and stock option activity Now expect full fiscal 2
Slide 8: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) Q1 Consolidated Q1 Service Segment $4.7 $6.1 $2.9 +75% $3.5 12.5% 17.1% 9.0% 12.8% Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 Distribution Segment Consolidated adjusted EBITDA of $6.1M up 75% Service segment adjusted EBITDA margin expanded 460 basis points to 17.1
Slide 9: Cash Flow
Cash Flow ($ in millions) Three Months Ended Note: Components may not add to totals due to rounding June 26, June 27, 2021 2020 Q1 Cash flow in line with expectations on Net cash provided by operations $2.1 $4.0 working capital increase to support growth Capital expenditures primarily focused on Cap
Slide 10: Balance Sheet Supports Growth Strategy
Balance Sheet Supports Growth Strategy ($ in millions) CAPITALIZATION Note: Components may not add to totals due to rounding June 26, March 27, 2021 2021 0.96x leverage ratio at quarter-end Cash and cash equivalents $ 0.3 $ 0.6 (Total debt to TTM Adjusted EBITDA*) Total debt 22.2 19.6 $27.9M availab
Slide 11: Outlook
Outlook* Q2 FY 2022 Service segment: expect organic revenue growth to be similar to what we achieved in the trailing first quarter fiscal 2022; more modest improvement in gross margin compared to the last several quarters due to a more difficult technician productivity comparison in second quarter D
Slide 12: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13721676 Telephone replay available through Wednesday, August 4, 2021 • Webcast / Presentation / Replay available at www.transcat.com/investor-relations • Transcript, when available, at www.transcat.com/investor-relations 1
Slide 13: Supplemental Information
Supplemental Information 13
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Q1 Net Income $ 5,922 $ 7,145 $ 8,067 $ 7,791 $ 3,688 +Interest Expense 1,018 903 934 850 189 +Other (Expense) / Income 60 91 186 241 6 +Tax Provision 2,026 2,090 1,663 2,191 (194) Operating Income $ 9,026 $ 10,2
Slide 15: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Q1 Service Operating Income $ 4,769 $ 5,158 $ 5,202 $ 5,672 $ 10,441 $ 2,974 +Depreciation & Amortization 4,660 4,397 4,754 4,929 5,597 1,488 +Restructuring Expense - - - - 349 - +Other (Expense)