Transcat, Inc. · NASDAQ:TRNS
Transcat — Q3 2025 Earnings Presentation
15 slides from Transcat's earnings presentation, Jan 28, 2025
Slide 1: Q3 Financial Results Fiscal 2025
Q3 Financial Results Fiscal 2025 Lee D. Rudow President and CEO Michael West Chief Operating Officer Tom L. Barbato Chief Financial Officer 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This news release 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: Q3 FY25 Summary
Q3 FY25 Summary Q3 revenue grew 2.4% vs prior year to $66.8M Consolidated Gross margin of 29.5% declined 260bps Results Net Income of $2.4M or $0.25 per diluted share decreased $0.13 Adjusted EBITDA decreased 13.2% from prior year to $7.9M Q3 Service revenue of $41.6M grew 0.1% vs prior year Service
Slide 4: Revenue
Revenue ($ in millions) Service Segment Distribution Segment Consolidated $41.5 0% $41.6 7% 2% $23.7 $25.2 $65.2 $66.8 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Consolidated revenue grew 2.4% year over year Service total revenue growth of 0.1%; organic revenue declined 3.8% as the segment was
Slide 5: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Service Segment Distribution Segment Consolidated -8% -2% -6% $20.9 $19.7 $13.5 $12.4 $7.4 $7.3 32.5% 29.7% 31.5% 29.1% 32.1% 29.5% Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Consolidated gross profit of $19.7M decreased 6.0% vs prior year Service gross p
Slide 6: Net Income, Diluted EPS, Adjusted Diluted EPS
Net Income, Diluted EPS, Adjusted Diluted EPS* ($ in millions, except EPS) Net Income Diluted EPS Adjusted EPS* $0.38 $0.56 $3.3 $0.45 $2.4 $0.25 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Q3 Net Income of $2.4M decreased 29.6% from prior year Diluted EPS of $0.25 vs. $0.38 in prior year Adjust
Slide 7: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) Service Segment Distribution Segment Consolidated -18% -5% $9.1 -13% $7.9 $6.0 $3.1 $3.0 $4.9 14.4% 11.8% 13.3% 11.9% 14.0% 11.9% Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Consolidated adjusted EBITDA down 13.2% Service segment adjusted EBITDA down 1
Slide 8: Operating Free Cash Flow
Operating Free Cash Flow ($ in millions) Nine Months Ended Cash Flow from operations consistent with prior year Note: Components may not add to totals December 28, December 23, due to rounding 2024 2023 Net cash provided by Capital expenditures up $1.4 million year $28.4 $26.9 over year and remain f
Slide 9: Balance Sheet Supports Growth Strategy
Balance Sheet Supports Growth Strategy ($ in millions) Capitalization Note: Components may not add to totals December 28, December 23, due to rounding 2024 2023 0.97x leverage ratio at quarter-end Cash, cash equivalents, & (Total debt to TTM Adjusted EBITDA*) $4.6 $35.2 marketable securities Total d
Slide 10: Outlook
Outlook* 2025 Expectations Service segment: For Fiscal 2025, we expect Service organic revenue growth in the mid-to- low single digits, when normalized for the extra week in fiscal 2024 Total Transcat: We expect the fiscal 2025 income tax rate to be in the range of 21% to 23%. Mid-to-long Term Outlo
Slide 11: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13750934 Telephone replay available through Tuesday, February 4th, 2024 • Webcast / Presentation / Replay available at https://www.transcat.com/investor-relations 11
Slide 12: Supplemental Information
Supplemental Information 12
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2024 FY 2025 FY 2025 Q3 Q3 Q3 TTM Net Income $ 3,348 $ 2,357 $ 16,941 + Interest Expense / (Income), net (266) (20) (901) + Other Expense / (Income) 289 (1,009) (635) + Tax Provision 923 772 4,733 Operating Income $ 4,294 $ 2,100 $ 20,138 + Deprecia
Slide 14: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) FY 2024 Q3 FY 2025 Q3 Service Operating Income $ 2,966 $ 1,412 + Depreciation & Amortization 2,362 2,451 + Transaction Expense 30 778 + Acquisition Earn-Out Adjustment 87 - + Other (Expense) / Income (203) 94 + Noncash Stock Compensation 737 18
Slide 15: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation ($ in thousands) ($ in thousands except per share data) FY 24 Q3 FY 25 Q3 GAAP Net Income $ 3,348 $ 2,357 Add back (deduct) $ 1,509 $ 1,797 Amortization of Intangibles 1,674 1,879 Acquisition deal costs 78 778 Acq Stock Expense 265 (261) Acquisition Amortization o