Transcat, Inc. · NASDAQ:TRNS
Transcat — Q2 FY2019 Earnings Presentation
14 slides from Transcat's earnings presentation, Oct 24, 2018
Slide 1: Q2 Financial Results Fiscal 2019
Q2 Financial Results Fiscal 2019 Lee D. Rudow President and CEO Michael J. Tschiderer 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: Q2 FY 2019 Execution
Q2 FY 2019 Execution Revenue up 8.2% to $38.9M; organic growth of 7.4% Demonstrated operating leverage: operating income up 49% to $2.2M; Consolidated operating margin expanded 150 bps to 5.6% Results Net income nearly doubled to $1.5M; diluted EPS up $0.09 to $0.20 YTD cash from operations of $4.9M
Slide 4: Drive Double-Digit Service Growth
Drive Double-Digit Service Growth Executing Acquisition Strategy Montreal Dispersion Ottawa Boston Portland Toronto Rochester Milwaukee Pittsburgh Philadelphia Harrisburg Ft. Wayne Angel’s Instrumentation (Norfolk) Dayton St. Louis Denver Charlotte Los Angeles Excalibur Engineering Phoenix San Diego
Slide 5: Revenue
Revenue ($ in millions) 7% CAGR* Q2 Service Segment Consolidated – Annual $19.9 $155.1 $158.5 $143.9 $18.2 $123.6 $122.2 $71.1 $77.4 $80.0 $51.8 $59.2 $71.8 $63.0 $72.8 $77.7 $78.5 Q2 FY 2018 Q2 FY 2019 FY 2015 FY 2016 FY 2017 FY 2018 Q2 FY19 TTM Service Distribution Q2 Distribution Segment • Q2 Ser
Slide 6: Operating Income and Margin Expansion
Operating Income and Margin Expansion ($ in millions) 13% Q2 Service Segment Consolidated – Annual CAGR* $1.1 $10.4 $7.9 $9.0 $0.8 $6.8 $6.3 $5.7 $5.2 $4.8 $3.7 $4.2 $3.9 $4.7 4.3% 5.7% $3.1 $2.1 $3.2 Q2 FY 2018 Q2 FY 2019 FY 2015 FY 2016 FY 2017 FY 2018 Q2 FY19 TTM Service Distribution Q2 Distribut
Slide 7: Net Income & Diluted EPS
Net Income & Diluted EPS ($ in millions, except EPS) Annual Quarterly 18% CAGR* $7.2 $5.9 $1.5 $4.5 $4.0 $4.1 $0.8 $0.57 $0.58 $0.64 $0.81 $0.97 Diluted EPS $0.11 $0.20 FY 2015 FY 2016 FY 2017 FY 2018 Q2 FY19 Q2 FY 2018 Q2 FY 2019 TTM • Lower effective tax rate in Q2 FY19 of 24.9% compared with 34.2
Slide 8: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) 17% CAGR** Q2 Service Segment Consolidated – Annual $16.4 $17.6 $2.4 $14.5 $2.1 $10.3 $10.6 $10.2 $10.7 $9.6 $6.1 $7.5 11.3% 12.1% $4.9 $6.2 $6.8 $4.1 $3.1 Q2 FY 2018 Q2 FY 2019 FY 2015 FY 2016 FY 2017 FY 2018 Q2 FY19 TTM Service Distribution Q2 Distributi
Slide 9: Financial Flexibility Supports Growth Strategy
Financial Flexibility Supports Growth Strategy ($ in millions) • Angel’s Instrumentation acquisition in late Aug 2018 Total Debt – $4.7 million purchase price; $3.7 million paid in Q2 $27.3 $22.9 $25.3 • Strong cash generation $19.1 • $17.7 million available from credit facility as of $12.2 Septembe
Slide 10: FY19 Outlook – Building our Business for the Long Term
FY19 Outlook* – Building our Business for the Long Term SERVICE SEGMENT: expect double-digit revenue growth and improved productivity DISTRIBUTION SEGMENT: expect low to mid single-digit sales growth ACQUISITIONS: a key part of our strategy; active pipeline and we believe ample dry powder to execute
Slide 11: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13683727 • Telephone replay available through Wednesday, October 31, 2018 • Webcast / Presentation / Replay available at http://www.transcat.com/investor-relations/ • Transcript, when available, at http://www.transcat.com/i
Slide 12: Supplemental Information
Supplemental Information 12
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) 2QFY19 FY 2015 FY 2016 FY 2017 FY 2018 TTM Net Income $ 4,026 $ 4,124 $ 4,522 $ 5,922 $7,201 + Interest 234 247 719 1,018 904 + Other Expense / (Income) 111 48 51 60 51 + Tax Provision 2,397 1,883 2,642 2,026 2,202 Operating Income $ 6,768 $ 6,302 $ 7,
Slide 14: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) 2QFY19 FY 2015 FY 2016 FY 2017 FY 2018 TTM Service Operating Income $ 3,693 $ 4,155 $ 4,769 $ 5,158 $ 5,676 +Depreciation & Amortization 2,362 3,216 4,660 4,397 4,485 +Other (Expense) / Income (138) (64) (55) (61) (51) +Noncash Stock Compensati