Transcat, Inc. · NASDAQ:TRNS
Transcat — Q1 FY2023 Earnings Presentation
15 slides from Transcat's earnings presentation, August 2022
Slide 1: Q1 Financial Results Fiscal 2023
Q1 Financial Results Fiscal 2023 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 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 FY23 Summary
Q1 FY23 Summary Revenue up 14.4% to $54.7 million Consolidated Gross margin expanded 100 basis points from PY to 29.3% Results Adjusted EBITDA increased 20% from prior year to $7.3 million Net Income of $3.1 million or $0.40 per diluted share Revenue up 22.9%; 8.6% organic growth Service Gross margi
Slide 4: Revenue
Revenue ($ in millions) Q1 Consolidated Q1 Service Segment $47.8 $54.7 +14% +23% $33.9 $27.6 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 Distribution Segment Consolidated revenue up 14.4% on Service segment strength and modest growth in Distribution $20.2 +3% $20.8 Service total revenue growth of 22.9%; orga
Slide 5: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Q1 Consolidated Q1 Service Segment $10.8 $13.5 $16.0 $8.8 +19% 31.8% 32.0% 28.3% 29.3% Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 Distribution Segment Consolidated gross margin expanded 100 basis points Service gross margin of 32.0% expanded 20 basis points on $4.8 $5
Slide 6: Net Income, Diluted EPS, Adjusted EPS
Net Income, Diluted EPS, Adjusted EPS ($ in millions, except EPS) Net Income Diluted EPS Adjusted EPS* $3.7 $3.1 -17% $0.49 $0.55 $0.54 $0.40 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 FY23 net income of $3.1 million down from PY due to impact of increased intangible amortization from acquis
Slide 7: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) Q1 Consolidated Q1 Service Segment +20% $7.3 $4.7 $5.5 $6.1 17.1% 16.2% 12.8% 13.4% Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 Distribution Segment Consolidated adjusted EBITDA of $7.3 million up 20% Service segment adjusted EBITDA of $5.5 million up $0.8 million
Slide 8: Operating Free Cash Flow
Operating Free Cash Flow ($ in millions) Q1 Ended Note: Components may not add to totals due to rounding Jun 26, Jun 25, 2022 2021 Cash flow impacted by increased inventory as the result of strategic buys ahead of price Net cash provided by operations $2.0 $2.1 increases and mitigate supply chain ri
Slide 9: Balance Sheet Supports Growth Strategy
Balance Sheet Supports Growth Strategy ($ in millions) CAPITALIZATION Note: Components may not add to totals due to rounding Jun 25, Mar 26, 2022 2022 Cash and cash equivalents $ 0.4 $ 1.4 1.83x leverage ratio at quarter-end (Total debt to TTM Adjusted EBITDA*) Total debt 51.8 48.5 Total net debt 51
Slide 10: Outlook
Outlook* FY 2023 Expectations Service segment: For fiscal 2023, we expect Service organic revenue growth to be in the high- single digit range and expect gross margin improvement from prior year Total Transcat: We expect the fiscal 2023 income tax rate to be in the range of 22% to 24% Mid-to-long Te
Slide 11: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13731736 Telephone replay available through Tuesday, August 9, 2022 • Webcast / Presentation / Replay available at www.transcat.com/investor-relations 11
Slide 12: Supplemental Information
Supplemental Information 12
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2022 Q1 FY 2023 Q1 Net Income $ 3,688 $ 3,072 +Interest Expense 189 360 +Other (Expense) / Income 6 (204) +Tax Provision (194) 376 Operating Income $ 3,689 $ 3,604 +Depreciation & Amortization 1,990 2,641 +Acquisition Related Add-Back - 30 +Other (E
Slide 14: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) FY 2022 Q1 FY 2023 Q1 Service Operating Income $ 2,974 $ 2,532 +Depreciation & Amortization 1,488 2,139 +Acquisition Related Add-Back - 30 +Other (Expense) / Income (2) 134 +Noncash Stock Compensation 261 638 Service Adjusted EBITDA $ 4,721 $ 5
Slide 15: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation ($ in thousands except per share data) Quarters Q1 FY22 Q1 FY 23 Net Income $ 3,688 $ 3,072 Add back (deduct) + Amortization of Intangibles 620 1,084 + Acquisition deal costs - 299 Income Tax Effect at 25% (155) (346) Non-GAAP adjusted net income $ 4,153 $ 4,109 A