Transcat, Inc. · NASDAQ:TRNS
Transcat — Q4 FY2019 Earnings Presentation
15 slides from Transcat's earnings presentation, May 21, 2019
Slide 1: Q4 Financial Results Fiscal 2019
Q4 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: Q4 and Full Fiscal Year 2019 Results
Q4 and Full Fiscal Year 2019 Results Record revenue: Q4 up $2.0M to $44.5M; Full year up $5.8M to $160.9M Record Record net income: $2.7 million or $0.35 per diluted share in Q4 Consolidated $7.1 million or $0.95 per diluted share in FY19 Results Strong cash generation: Cash from operations up $2.7M
Slide 4: Woodington Award
Woodington Award This award, sponsored as a memorial to the late Andrew J. Woodington, is the measurement community’s recognition of an individual who represents the highest level of professionalism, and dedication to the Metrology profession Howard Zion – 2019 Winner Chris Grachanan – 2018 Winner T
Slide 5: Record Revenue
Record Revenue ($ in millions) 7% Q4 Service Segment Consolidated – Annual CAGR¹ $24.3 $155.1 $160.9 $22.0 $143.9 $123.6 $122.2 $71.1 $77.4 $84.0 $51.8 $59.2 $71.8 $63.0 $72.8 $77.7 $76.9 Q4 FY 2018 Q4 FY 2019 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Service Distribution Q4 Distribution Segment • 52
Slide 6: Operating Income
Operating Income ($ in millions) 11% Q4 Service Segment Consolidated – Annual CAGR¹ $2.4 $2.4 $10.2 $7.9 $9.0 $6.8 $6.3 $5.2 $5.2 $4.8 $3.7 $4.2 $3.9 $5.0 11.0% 10.0% $3.1 $2.1 $3.2 Q4 FY 2018 Q4 FY 2019 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Service Distribution Q4 Distribution Segment • Service m
Slide 7: Record Net Income & Diluted EPS
Record Net Income & Diluted EPS ($ in millions, except EPS) Annual Quarterly 15% CAGR¹ $7.1 $5.9 $4.5 $2.7 $4.0 $4.1 $2.5 $0.57 $0.58 $0.64 $0.81 $0.95 Diluted EPS $0.33 $0.35 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Q4 FY 2018 Q4 FY 2019 • Expect tax rate to range between 22% and 23% for full fiscal
Slide 8: Adjusted EBITDA and Margin
Adjusted EBITDA¹ and Margin ($ in millions) 15% Q4 Service Segment CAGR² Consolidated – Annual $16.4 $17.8 $3.8 $14.5 $3.6 $10.3 $10.6 $10.6 $10.2 $9.6 $6.1 $7.5 16.6% 15.6% $4.9 $6.2 $7.2 $4.1 $3.1 Q4 FY 2018 Q4 FY 2019 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Service Distribution Q4 Distribution Se
Slide 9: Financial Flexibility Supports Growth Strategy
Financial Flexibility Supports Growth Strategy ($ in millions) Total Debt • Strong cash generation $27.3 • $23.5 million available from credit facility as of $22.9 March 30, 2019 $19.1 $21.0 – $15.0M term loan replaced in Dec 2018; extended $12.2 maturity to Dec 2025 and converted to fixed rate of 4
Slide 10: Calibrated by Transcat
CALIBRATED BY TRANSGAT
Slide 11: FY20 Outlook – Building our Business for the Long Term
FY20 Outlook* – Building our Business for the Long Term Technology and automation: Multi-year operational excellence program to drive process improvements and productivity is expected to result in increased capacity and higher margins Service segment: Expect to achieve double-digit revenue growth an
Slide 12: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13689948 • Telephone replay available through Wednesday, May 29, 2019 • Webcast / Presentation / Replay available at http://www.transcat.com/investor-relations/ • Transcript, when available, at http://www.transcat.com/inves
Slide 13: Supplemental Information
Supplemental Information 13
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Net Income $ 4,026 $ 4,124 $ 4,522 $ 5,922 $7,145 + Interest 234 247 719 1,018 903 + Other Expense / (Income) 111 48 51 60 91 + Tax Provision 2,397 1,883 2,642 2,026 2,090 Operating Income $ 6,768 $ 6,302 $ 7,934
Slide 15: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Service Operating Income $ 3,693 $ 4,155 $ 4,769 $ 5,158 $ 5,202 +Depreciation & Amortization 2,362 3,216 4,660 4,397 4,754 +Other (Expense) / Income (138) (64) (55) (61) (69) +Noncash Stock Compensation