Transcat, Inc. · NASDAQ:TRNS
Transcat — Q1 FY2023 Earnings Presentation
15 slides from Transcat's earnings presentation, Aug 2, 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 TRANSGAT Trust in every measure
Slide 2: Safe Harbor Statement
TRANSCAT rnatioon ness 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: Q1 FY23 Summary
TRANSCAT nstiony nese 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 grow
Slide 4: Revenue
Revenue (Sinmitions) Q1 Consolidated $47.8 ) ce Qi 2022 Q1 2023 Consolidated revenue up 14.4% on Service segment strength and modest growth in Distribution Service total revenue growth of 22.9%; organic growth remained strong at 8.6% Distribution revenue growth of 2.7% on continued extended vendor l
Slide 5: Gross Profit and Margin
Gross Profit and Margin (Sin millions) Q1 Consolidated $13.5 $16.0 1.2022 1.2023 Consolidated gross margin expanded 100 basis points Service gross margin of 32.0% expanded 20 basis points on ‘strong growth at NEXA offset somewhat by client-based lab start-up costs Distribution gross margin of 25.0%,
Slide 6: Net Income, Diluted EPS, Adjusted EPS
TRANSCAT nstinonn mene Net Income, Diluted EPS, Adjusted EPS (Sin milions, except EPS) Net Income Diluted EPS Adjusted EPS* $3.1 . | $0.49 $0.40 $0.55 $0.54 Qi 2022 Q12022 Q1 2023 Q1 2022 Qi 2023 Q1 FY23 net income of $3.1 million down from PY due to impact of increased intangible amortization from
Slide 7: Adjusted EBITDA and Margin
TRANSCAT ‘nator mnie Adjusted EBITDA* and Margin (Sin milions) Q1 Consolidated Q1 Service Segment $73 $4.7 $5.5, $6.1 12022 01.2023 Qi 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 from PY $14
Slide 8: Operating Free Cash Flow
TRANSCAT nats nse Operating Free Cash Flow Nei Component ot ta Ee Jun 2! 2021 h P A Cash flow impacted by increased inventory as the result of strategic buys ahead of price Net cash provided by operations 7 ge in ol C 1 increases and mitigate supply chain risk Capital expenditures primarily focused
Slide 9: Balance Sheet Supports Growth Strategy
TRANSCAT natn oun mse Balance Sheet Supports Growth Strategy (Sinmitions) CAPITALIZATION "Note: Components may not add to totals, ‘due to rounding Cash and cash equivalents $ 04 $ 14 — 1.83x leverage ratio at quarter-end (Total debt to TTM Adjusted EBITDA*) Total debt 518 48.5 nee cia aa. $36.3Mavai
Slide 10: Outlook
Outlook* TRANSAT ‘sti oxy measure FY 2023 Expectations Service segment: For fiscal 2023, we expect Service organic revenue growth to be in the high- single digit range and expect gross margin improvement from prior year Total Transcat: We expect the fiscal 2023 income tax rate to be in the range of
Slide 11: Conference Call and Webcast Playback
TRANSCAT nstinoon mene Conference Call and Webcast Playback * Replay Number: 412-317-6671 passcode: 13731736 Telephone replay available through Tuesday, August 9, 2022 * Webcast / Presentation / Replay available at www.transcat.com/investor-relations "
Slide 12: Supplemental Information
Supplemental Information TRANSGAT Trust in every measure
Slide 13: Adjusted EBITDA Reconciliation
TRANSCAT nstinonn mene Adjusted EBITDA Reconciliation ($ in thousands) FY 2022 Q1 FY 2023 QL let Income $3,688 $ 3,072 +interest Expense 189 360 +Other (Expense) / Income 6 (204) +Tax Provision 194) 376 jperating Income $3,689 $3,604 +Depreciation & Amortization 1,990 2,641 +Acquisition Related Add-
Slide 14: Segment Adjusted EBITDA Reconciliation
TRANSAT ‘sti oxy measure Segment Adjusted EBITDA Reconciliation [$ in thousands) FY 2022 QI FY 2023 QL bervice Operating Income 3 2978 5 2532 +Depreciation & Amortization 1,488 2,139 +Acquisition Related Add-Back - 30 +Other (Expense) / Income (2) 134 +Noncash Stock Compensation 261 638 ervice Adjus
Slide 15: Adjusted Diluted EPS Reconciliation
TRANSCAT nstinonn mene Adjusted Diluted EPS Reconciliation (S In thousands except per share data) Quarters Qury22__Qiry23 Net income $3688 5 | 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 i