Transcat, Inc. · NASDAQ:TRNS
Transcat — Q1 FY2019 Earnings Presentation
13 slides from Transcat's earnings presentation, Jul 25, 2018
Slide 1: Q1 Financial Results Fiscal 2019
Q1 Financial Results Fiscal 2019 Lee D. Rudow President and CEO Michael J. Tschiderer Chief Financial Officer TRANSGAT Trust in every measure
Slide 2: Safe Harbor Statement
TRANSCAT ‘Trust in every measure 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 a
Slide 3: Q1 FY 2019 Execution
TRANSCAT ust very messure Q1 FY 2019 Execution Consolidated Results Service Segment Distribution Segment Operating leverage and early impact from operational excellence initiatives: Operating income increased nearly 44% on 1% revenue growth; up 17% when normalized for Q1 FY18 one-off stock compensat
Slide 4: Revenue
TRANSCAT ust very messure Revenue ($ in millions) Q1 Service Segment Consolidated — Annual $155.1 $155.5 $19.3 $143.9 : - “hE = = = QiFy 2018 Qi FY 2019 FY 2015 FY 2016 FY 2017 FY2018 Q1FY19TTM \. Service & Distribution 1 Distribution Si it Sete utIOn Seamer * Q1 Service up 5% on all organic growth
Slide 5: Operating Income and Margin Expansion
TRANSCAT ust very messure Operating Income and Margin Expansion ($ in millions) Q1 Service Segment $1.1 . = QL FY 2018 Qi FY 2019 Q1 Distribution Segment $1.0 $0.5 Q1FY 2018 Qi FY 2019 FY 2015- QI FYI9T™M Consolidated — Annual p 8 $79 $9.0 29.6) ‘i : ia = = FY 2015 FY 2016 FY 2017 FY 2018 Qi FY19TTM
Slide 6: Net Income & Diluted EPS
TRANSCAT tiustin every nezsure Net Income & Diluted EPS ($ in millions, except EPS) a i le . : | Diluted EPS al Fy2015 FY2016 «= FY2017_—Ss FY2018 eae re Qi FY 2018 Qi FY 2019 Annual Quarterly * Lower effective tax rate in Q1 FY19 of 20.7% compared with 24.8% in the prior-year period primarily due t
Slide 7: Adjusted EBITDA and Margin
TRANSCAT tiustin every nezsure Adjusted EBITDA* and Margin (Sin millions) es Q1 Service Segment Consolidated — Annual $16.4 $16.8 $2.2 $2.4 $14.5 - = a = = = = Qi FY 2018 Qi FY 2019 FY 2015 FY 2016 FY 2017 Fy 2018 Q1FY19TTM \. Service & Distribution 1 Distribution Segment Q IB * Total Q1 Adjusted EB
Slide 8: Financial Flexibility Supports Growth Strategy
TRANSCAT tiustin every nezsure Financial Flexibility Supports Growth Strategy ($ in millions) Total Debt * Strong cash generation $27.3 * $22.0 million available from credit facility ga $22.9 $21.5 as of June 30, 2018 $12.2 * 1.28x leverage ratio at quarter-end (Total debt to TTM Adjusted EBITDA*) *
Slide 9: FY19 Outlook — Building our Business for the Long Term
TRANSCAT ust very messure FY19 Outlook* — Building our Business for the Long Term SERVICE SEGMENT: expect mid to high single-digit organic growth and improved productivity DISTRIBUTION SEGMENT: expect low to mid single-digit growth ACQUISITIONS: incremental to our overall growth expectations; active
Slide 10: Conference Call and Webcast Playback
TRANSCAT ‘srstin ovary moasure Conference Call and Webcast Playback * Replay Number: 412-317-6671 passcode: 13680879 * Telephone replay available through Wednesday, August 1, 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
TRANSAT in: ‘In every measure Adjusted EBITDA Reconciliation (Sin thousands) 1QFY19 FY 2015 FY 2016 FY 2017 FY 2018 ™ Net Income $ 4026 $ 4124 $ 4522 $ 5,922 $6,494 + Interest 234 247 ns 1,018 988 +Other Expense / (Income) an 43 si 60 44 +Tax Provision 2,397 1,883 2,642 2,026 2,115 Operating Income
Slide 13: Segment Adjusted EBITDA Reconciliation
TRANSAT in: ‘In every measure Segment Adjusted EBITDA Reconciliation (Sin thousands) 1QFY19 FY 2015 FY 2016 FY 2017 Fy 2018 TM. Service Operating Income $ 3,693 $ 4155 $ 4,769 $ 5158 § 5,342 +Depreciation & Amortization 2,362 3,216 4,660 4,397 4A77 +Other (Expense) / Income (138) (64) (55) (61) (47)