Transcat, Inc. · NASDAQ:TRNS
Transcat — Q3 2024 Earnings Presentation
15 slides from Transcat's earnings presentation, Jan 30, 2024
Slide 1: Q3 Financial Results Fiscal 2024
Q3 Financial Results Fiscal 2024 Lee D. Rudow President and CEO Mark A. Doheny Chief Operating Officer Tom L. Barbato Chief Financial Officer 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of 21E of the Securities Exchange Act of 1934. All statements other than historical fact are forward-looking statements. Forward-looking statements are not statements of historical fact and thus are subjec
Slide 3: Q3 FY24 Summary
Q3 FY24 Summary Q3 revenue increased 14% to $65.2 million Consolidated Gross margin of 32.1%, an improvement of 350 bps from prior year Results Adjusted EBITDA increased 39% from prior year to $9.1 million Operating Cash Flow of $10.4 million in the quarter, $26.9 million year to date Q3 Revenue gre
Slide 4: Revenue
Revenue ($ in millions) Service Segment Distribution Segment Consolidated $23.7 $65.2 15% $41.5 $21.4 10% $57.4 14% $36.0 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 Consolidated revenue growth of 14% on strong performance in both segments Service revenue growth of 15%, organic growth of 9% D
Slide 5: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Service Segment Distribution Segment Consolidated 28% $13.5 $7.4 $20.9 $10.8 $5.6 $16.4 30.0% 32.5% 26.2% 31.5% 28.6% 32.1% Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 Consolidated gross margin of 32.1% expanded 350 bps vs prior year Service gross margi
Slide 6: Net Income, Diluted EPS, Adjusted Diluted EPS
Net Income, Diluted EPS, Adjusted Diluted EPS* ($ in millions, except EPS) Net Income Diluted EPS Adjusted EPS* $0.56 $3.3 $0.38 $0.35 $1.6 $0.21 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 Net Income of $3.3M driven by strong performance and elimination of interest expense, as majority of de
Slide 7: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) Service Segment Distribution Segment Consolidated $3.1 $9.1 $6.0 39% $4.6 $6.6 $2.0 12.7% 14.4% 9.4% 13.3% 11.5% 14.0% Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Consolidated adjusted EBITDA up 39% driven by growth in both segments Service segment adj
Slide 8: Operating Free Cash Flow
Operating Free Cash Flow ($ in millions) Nine Months Ended Note: Components may not add to totals due to December December rounding 23, 2023 24, 2022 Cash Flow has improved vs prior year Net cash provided by operations $26.9 $14.0 Capital expenditures up $2 million year over year and remain focused
Slide 9: Balance Sheet Supports Growth Strategy
Balance Sheet Supports Growth Strategy ($ in millions) Capitalization Note: Components may not add to totals December 23, December 24, due to rounding 2023 2022 0.12x leverage ratio at quarter-end Cash and cash equivalents $35.2 $1.6 (Total debt to TTM Adjusted EBITDA*) Total debt 4.7 49.2 $80.0M av
Slide 10: Outlook
Outlook* 2024 Expectations Service segment: For Fiscal 2024, expect Service organic revenue growth to be in the high- single digit to low-double digit range and Service gross margin improvement from prior year. Total Transcat: We expect the fiscal 2024 income tax rate to be in the range of 24% to 26
Slide 11: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13743750 Telephone replay available through Tuesday, February 6, 2024 • Webcast / Presentation / Replay available at https://www.transcat.com/investor-relations 11
Slide 12: Supplemental Information
Supplemental Information 12
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2023 FY 2024 FY 2024 Q3 Q3 Q3 TTM Net Income $ 1,601 $ 3,348 $ 10,415 + Interest Expense 726 (266) 2,219 + Other Expense / (Income) 313 289 552 + Tax Provision 523 923 3,246 Operating Income $ 3,163 $ 4,294 $ 16,432 + Depreciation & Amortization 2,8
Slide 14: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) FY 2023 Q3 FY 2024 Q3 Service Operating Income $ 1,836 $ 2,966 + Depreciation & Amortization 2,268 2,362 + Transaction Expense 96 117 + Acquisition Earn-Out Adjustment - - + Other (Expense) / Income (214) (203) + Noncash Stock Compensation 576
Slide 15: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation ($ in thousands) ($ in thousands except per share data) FY 24 Q3 FY 23 Q3 GAAP Net Income $ 3,348 $ 1,601 Add back (deduct) $ 1,618 $ 1,075 Amortization of Intangibles 1,674 1,180 Acquisition deal costs 78 96 Acq Stock Expense 265 158 Acquisition Amortization of b