Transcat, Inc. · NASDAQ:TRNS
Transcat — Q4 FY2018 Earnings Presentation
13 slides from Transcat's earnings presentation, May 23, 2018
Slide 1: Q4 Financial Results Fiscal 2018
Q4 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: Q4 and Full Fiscal Year 2018 Execution
TRANSCAT sts vy mess Q4 and Full Fiscal Year 2018 Execution Record revenue: Q4 up 10% to $42.5 million Record Full year up 8% to 155.1 million Consolidated Annual operating income increased 14% to $9.0 million; Results operating margin expanded 30 bps to 5.8% Record net income of $5.9 million, or $0
Slide 4: Record Revenue
Record Revenue ($ in millions) Q4 Service Segment TRANSCAT sti very measure a $155.1 Consolidated — Annual $22.0 $143.9 $19.5 = $118.5 $123.6 $122.2 = a Q4 FY 2017 Q4 FY 2018 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Q4 Distribution Segment $20.5 : - Q4FY 2017 Q4 FY 2018 “FY 2014—FY 2018 © Service @ D
Slide 5: Improved Operating Income and Margin
TRANSAT tiustin every measure Improved Operating Income and Margin ($ in millions) Q4 Service Segment Consolidated — Annual = $2.4 $9.0 : = " ° . ‘a - Q4 FY 2017 Q4 FY 2018 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 © Service @ Distribution 4 Distribution Segment Q ui * Annual consolidated operating ma
Slide 6: Record Net Income & Diluted EPS
TRANSAT tiustin every measure Record Net Income & Diluted EPS ($ in millions, except EPS) Annual Quarterly $5.9 $2.5 $4.5 $4.0 $4.0 $4. $1.4 i Diluted EPS FY2014 «-FY2015 = FY2016=-FY2017_~—sFY 2018 Q4FY 2017 Q4 FY 2018 * 10% CAGR for net income (Fy 2014 - FY 2018) + Lower effective tax rate in Q4 1
Slide 7: Adjusted EBITDA and Margin
TRANSCAT sti very measure Adjusted EBITDA* and Margin ($ in millions) Q4 Service Segment $3.6 ; = Q4 FY 2017 Q4 FY 2018 Q4 Distribution Segment $1.7 " = Q4 FY 2017 Q4 FY 2018 Consolidated — Annual $16.4 - 5 $10.0 $10.3 $10.6 ail FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 \ Service @ Distribution * Tota
Slide 8: Financial Flexibility Supports Growth Strategy
TRANSAT tiustin every messure Financial Flexibility Supports Growth Strategy ($ in millions) Total Debt * Strong cash generation $27.3 * $21.3 million available from credit facility as of March 31, 2018 * 1.4x leverage ratio at year-end (Total debt to TTM Adjusted EBITDA*) * CapEx focused on rental
Slide 9: FY19 Outlook — Building our Business for the Long Term
TRANSAT rusts ovry noasre FY19 Outlook* — Building our Business for the Long Term Service segment: Value proposition continues to resonate in the market; Expect mid to high single-digit organic growth and improved productivity Distribution segment: Optimistic performance will continue Operational Ex
Slide 10: Conference Call and Webcast Playback
TRANSCAT ‘srstin overy moasure Conference Call and Webcast Playback * Replay Number: 412-317-6671 passcode: 13678786 * Telephone replay available through Wednesday, May 30, 2018 * Webcast / Presentation / Replay available at * Transcript, when available, at
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 FY 2017 FY 2018 Net Income $ 3,984 $ 4026 $ 4124 $ 4522 $ 5,922 + Interest 130 234 247 79 1,018 + Other Expense / (Income) 129 aa 48 51 60 + Tax Provision 2,462 2,397 1,883 2,642 2,026 Operating Income $ 670
Slide 13: Segment Adjusted EBITDA Reconciliation
TRANSCAT rusts ny nse Segment Adjusted EBITDA Reconciliation (Sin thousands) FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Service Operating Income (loss) $ 2,379 $ 3,693 $ 4,155 $ 4769 $5,158 +Depreciation & Amortization 2,148 2,362 3,216 4,660 4,397 +Other (Expense) / Income (143) (138) (64) (55) (61) +