Transcat, Inc. · NASDAQ:TRNS
Transcat — Q4 FY2022 Earnings Presentation
16 slides from Transcat's earnings presentation, May 24, 2022
Slide 1: Q4 Fiscal 2022 Financial Results
Q4 Fiscal 2022 Financial Results Lee D. Rudow President and CEO Mark A. Doheny Chief Financial Officer TRANSGAT Trust in every measure
Slide 2: Safe Harbor Statement
TRANSCAT sts ony nase 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.
Slide 3: Q4 FY22 and Full Year 2022 Summary
TRANSCAT natn nasa Q4 FY22 and Full Year 2022 Summary + Q4 revenue up 14.6% to all-time quarterly record of $55.9 million + Gross margin expanded 120 bps in Q4 and 190 bps for the full year + Full year adjusted EBITDA increased 28% from prior year to $26.3 million + Net Income of $3.0 million in Q4
Slide 4: Revenue
TRANSCAT sis evry messure Revenue (Sin millions) Q4 Consolidated Q4 Service Segment Q4 Distribution Segment $48.8 Gas) e383 Gao) $34.7 $29.0 Gr) ‘ 21.2 S125 — “= el — Q42021 Q4 2022 Q4 2021 Q4 2022 Q42021 Q4 2022 + Q4 consolidated revenue up 14.6% on continued Service Full Year Consolidated segment
Slide 5: Gross Profit and Margin
Gross Profit and Margin TRANSCAT sis evry messure (Sin millions) Q4 Consolidated Q4 Service Segment Q4 Distribution Segment 200 aay $11.5 $9.8 $4.2 28.6% 29.8% 33.9% 33.1% 21.0% Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q42021 Q4 2022 Full Year Consolidated $58.4 om $46.1 cmx MService 303% 319% ‘=Distribution
Slide 6: Net Income, Diluted EPS, Adjusted EPS
TRANSCAT ts ness Net Income, Diluted EPS, Adjusted EPS (Sin millions, except EPS) Q4 Net Income Q4 Diluted EPS Q4 Adjusted EPS* $3.2 $3.0 : f — ~ “| "| Q42021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 * — Q4net income of $3.0 million down from PY on acquisition Full Year Net Income accounting impact a
Slide 7: Adjusted EBITDA and Margin
TRANSCAT ti mene Adjusted EBITDA* and Margin (Sin millions) Q4 Consolidated Q4 Service Q4 Distribution $ Segment Segment 7. 7.7 G15 $6.3 $6.0 $1.0 15.0% 13.7% 21.7% 17.4% 52% 942021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Gul Neer Gomeaeetss) * Qa consolidated adjusted EBITDA of $7.7M up 5% $26.3 $20.6 ro +
Slide 8: Operating Free Cash Flow
TRANSCAT ts ny esses Operating Free Cash Flow (Sin millions) | Twelve Months Ended | Months Ended ‘Note: Components may not add to totals due to rounding Cash flow in line with expectations on Net cash provided by operations ‘$17.6 $23.6 working capital increase to support growth * Q4 capital expend
Slide 9: Balance Sheet Supports Growth Strategy
TRANSAT ust in every measure Balance Sheet Supports Growth Strategy ($ in millions) CAPITALIZATION "Note: Components may not add to totals due to rounding Cash and cash equivalents $ 14 $ 06 Total debt 48.5 19.6 Total net debt 47.1 19.0 Shareholders’ equity 86.2 75.1 Total capitalization $ 1346 § 94
Slide 10: Outlook: FY 2023 Expectations
Outlook* TRANSAT tis very nosso 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
Slide 11: Conference Call and Webcast Playback
TRANSCAT ts ness Conference Call and Webcast Playback + Replay Number: 412-317-6671 passcode: 13729880 Telephone replay available through Tuesday, May 31, 2022 * Webcast / Presentation / Replay available at www.transcat.com/investor-relations "1
Slide 12: Supplemental Information
Supplemental Information TRANSGCAT Trust in every measure
Slide 13: Adjusted EBITDA Reconciliation
TRANSCAT ts vy nes Adjusted EBITDA Reconciliation ($ in thousands) FY2021Q4 FY 202204 Net Income $ 3,208 $ 3,048 tinterest Expense 190 258 +Other (Expense) / Income 122 14 +Tax Provision 992 1,095 lOperating Income $ 4512 $ 4515 +Depreciation & Amortization 1,984 2,578 +Restructuring Expense 290 - +
Slide 14: Segment Adjusted EBITDA Reconciliation
TRANSCAT sin evry messire Segment Adjusted EBITDA Reconciliation Fy 202104 FY 2022.04 (Sin thousands) Service Operating Income $4379 $ «3532 +#Depreciation & Amortization 1an 2,070 ++Restructuring Expense 156 ‘+Acquisition Related Add-Back - 26 +40ther (Expense) / Income (82) (82) ++Noncash Stock Co
Slide 15: Adjusted Diluted EPS Reconciliation
TRANSCAT ts vy nes Adjusted Diluted EPS Reconciliation (Sin thousands) FY 2021Q4 _ FY 202204 Net Income $ 3,208 $ 3,048 + Amortization of Intangibles 685 1,098 + Acquisition Deal Costs - 265 ess Restructuring Expense 290 - jon Amortization of Backlog - 90 + Income Tax Effect @ 25% (244) (363) Non-Ga
Slide 16: Adjusted Diluted EPS Reconciliation
TRANSCAT ts vy nes Adjusted Diluted EPS Reconciliation (Sin thousands) FY 2021 FY 2022 Net Income $ 7,791 $11,380 + Amortization of Intangibles 2,538 3,304 + Acquisition Deal Costs - 1,458 + Business Restructuring Expense 650 - + Acquisition Amortization of Backlog - 490 + Income Tax Effect @ 25% (7