Transcat, Inc. · NASDAQ:TRNS
Transcat — Q3 FY2020 Earnings Presentation
13 slides from Transcat's earnings presentation, Feb 5, 2020
Slide 1: Q3 Financial Results Fiscal 2020
Q3 Financial Results Fiscal 2020 Lee D. Rudow President and CEO Michael J. Tschiderer Chief Financial Officer TRANSGAT Trust in every measure
Slide 2: Safe Harbor Statement
TRANSCAT rusts oy nssus 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 assumption
Slide 3: Q3 2020 Execution
TRANSCAT stn ony msairo Q3 2020 Execution Record Q3 revenue of $43.2M, up $2.3M or 5.7% Consolidated Revenue and profit margins impacted by December 2019 holiday timing Results Net income of $1.5M or $0.20 per diluted share Generated $8.2 million in cash from year-to-date operations, up 13.6% 7.8% r
Slide 4: Record Revenue
TRANSCAT rusts oy nssus Record Revenue ($ in millions) Q3 Service Segment Consolidated — Annual $22.1 $171.8 $20.5 $143.9 — $160.9 = | S ai = z Q3 FY 2019 Q3 FY 2020 FY 2016 FY 2017 FY 2018 FY2019 Q3FY20TTM ) Service @ Distribution Q3 Distribution Segment * Q3 Service up 7.8% in spite of December 20
Slide 5: Operating Income
Operating Income ($ in millions) Q3 Service Segment - . Q3 FY 2019 Q3 FY 2020 Q3 Distribution Segment $1.8 wi Q3 FY 2019 Q3 FY 2020 "Fy 2016-Q3 FY20TT™M All figures are rounded to the nearest million. Therefore totals shown in graphs may not equal the sum of the segments. TRANSCAT sti over measure C
Slide 6: Net Income & Diluted EPS
TRANSCAT ists ny esse Net Income & Diluted EPS (Sin millions, except EPS) Quarterly Annual $8.2 $7.1 $5.9 5 4.5 6 1.5 $4.1 g S | | i | Diluted EPS a FY2016 © FY2017. «= FY2018 «= FY2019 3 FY20 Q3 FY 2019 Q3 FY 2020 TT™ * Q3FY20 reflects lower income tax from increased discrete income tax benefits re
Slide 7: Adjusted EBITDA and Margin
TRANSAT extn cw nonin Adjusted EBITDA' and Margin ($ in millions) Q3 Service Segment Consolidated — Annual a mo) si7g ($18.4 $14.5 $16.4 : a aa = a = Q3 FY 2019 Q3 FY 2020 FY 2016 FY 2017 FY 2018 FY 2019 Q3 FY20 TTM ) Service @ Distribution Q3 Distribution Segment * Total Q3 Adjusted EBITDA' down 7.
Slide 8: Financial Flexibility Supports Growth Strategy
TRANSCAT sti over measure Financial Flexibility Supports Growth Strategy ($ in millions) Total Debt $27.3 $22.9 $19.4 . Fy2016 FY2017_ FY 2018 Capital Expenditures $5.3 ~ ail TL Fy2016 FY2017_ FY 2018 * $23.4 million available from credit facility as of December 28, 2019 * 1.07x leverage ratio at qu
Slide 9: FY2020 Outlook — Building our Business for the Long Term
TRANSAT rust very measure FY2020 Outlook* — Building our Business for the Long Term January and early February show bounce back from slow December 2019 On track to achieve record results in fiscal 2020 We believe added technical capacity supports growth strategies Distribution segment focused on hig
Slide 10: Conference Call and Webcast Playback
TRANSCAT tn cur mene Conference Call and Webcast Playback * Replay Number: 412-317-6671 passcode: 13697525 * Telephone replay available through Wednesday, February 12, 2020 * 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 ‘rte nose Adjusted EBITDA Reconciliation (Sin thousands) Q3 FY20 FY 2016 FY 2017 FY 2018 FY 2019 TM. Net Income $ 4124 -§ 4522 $ «5,922 $ «7,145 $8,234 + Interest Expense 247 719 1,018 903 953 + Other Expense / (Income) 43 51 60 1 102 +Tax Provision 1,883 2,642 2,026 2,090 1,453 Operating I
Slide 13: Segment Adjusted EBITDA Reconciliation
TRANSCAT ‘rte nose Segment Adjusted EBITDA Reconciliation (Sin thousands) 93 FY20 FY 2016 FY 2017 FY 2018 FY 2019 TM. Service Operating Income $ 4,155 $ 4,769 $5158 $ 5,202 $ 5,494 +Depreciation & Amortization 3,216 4,660 4,397 4,754 4,873 +Other (Expense) / Income (64) (55) (61) (69) 32 +Noncash St