Transcat, Inc. · NASDAQ:TRNS
Transcat — Q4 FY2021 Earnings Presentation
15 slides from Transcat's earnings presentation, May 19, 2021
Slide 1: Financial Results Q4 Fiscal 2021
Financial Results Q4 Fiscal 2021 Lee D. Rudow President and CEO Mark A. Doheny Chief Financial Officer TRANSGAT Trust in every measure
Slide 2: Safe Harbor Statement
TRANSCAT ins: ‘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 as
Slide 3: Q4 and Full Year 2021 Execution
TRANSCAT ttn over measure Q4 and Full Year 2021 Execution Record Consolidated Results Service Segment Distribution Segment Q4 revenue of $48.8 million up 6.6% in challenging operating environment Gross margin expanded 230 bps in Q4 and 210 bps for full year Exceeded expectations: generated $4.5M of
Slide 4: Revenue
TRANSCAT ‘rns: overy neti Revenue (Sin millions) Q4 Consolidated Q4 Service Segment Q4 Distribution Segment $48.8 sas.8 Ger) 5290 $25.0 Csr) LJ i [ 7 ~ Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Full Year Consolidated Consolidated Q4 revenue of $48.8 million, up 6.6% $173.1 $173.3 Q4 Service in
Slide 5: Gross Profit and Margin
TRANSCAT in: ‘In every measure Gross Profit and Margin (S in millions) Q4 Consolidated Q4 Service Segment Q4 Distribution Segment $14.0 : 7.2 ae al $4.8 $4.2 a4 2020 a4 2021 94.2020 Q4 2021 24 2020 4.2021 Full Year TS Consolidated Q4 gross margin up 230 basis points Q4 Service gross margin of 33.9%
Slide 6: Operating Income and Margin
Operating Income and Margin (Sin millions) Q4 Consolidated Q4 Service Segment Q4 Distribution Segment $4.5 $4.4 $3. 7 Gr) 2.6 = L. a 0.2% — 1% $0.1 ws ed 4.2020 4.2021 24.2020 a4 2021 4.2020 Q4 2021 Full Year Consolidated Q4 operating Income up 20.6% to $4.5 million $10.9 $11.1 Q4 Service operating
Slide 7: Net Income & Diluted EPS
TRANSCAT ins: ‘in every measure Net Income & Diluted EPS ($ in millions, except EPS) Quarterly Full Year $8.1 $78 $32 $2.5 $0.42 $1.08 $1.03 Q4 2020 24 2021 FY 2020 FY 2021 Q4 net income up nearly 29% to $3.2 million; Diluted EPS 40.42 vs. $0.33 in prior year Full year fiscal 2021 tax rate was 21.9%
Slide 8: Adjusted EBITDA and Margin
TRANSCAT in: ‘In every measure Adjusted EBITDA* and Margin ($ in millions) Q4 Consolidated Q4 Service Segment Q4 Distribution Segment $7.3 $6.3 $5.6 3.9 gE $1.7 $1.0 12.3% 15.0% 15.7% 21.7% 31% 5.2% 4.2020 4 2021 a4 2020 4.2021 Q4 2020 4.2021 Full Year Consolidated Q4 consolidated adjusted EBITDA of
Slide 9: Record Cash Generation
TRANSCAT ists soy ness Record Cash Generation (Sin millions) Fiscal Year Ended prs eeiueniend Hadi Kael had March 2: March 28, 2021 2020 FY21 net cash provided by operations Net cash provided by operations $23.6 $11.7 doubled to $23.6M CapEx focused on technology Capital expenditures (CapEx) (6.6) (
Slide 10: Balance Sheet Supports Growth Strategy
Balance Sheet Supports Growth Strategy (Sin millions) CAPITALIZATION ‘Note: Components may not add to totals pprepaneal March 2: 2021 Paid down $10.7M of debt during FY21 0.94x leverage ratio at year-end Cash and cash equivalents $ 06 $ 0.5 (Total debt to TTM Adjusted EBITDA*) Total debt 19.6 30.3 $
Slide 11: Outlook
TRANSCAT extn oy ness Outlook* Q1 FY 2022 Service segment: expect similar organic growth as the fourth quarter of fiscal 2021; improvement in gross margin, but not to the same degree experienced in fiscal 2021 Distribution segment: expect high double-digit revenue growth when compared with prior fis
Slide 12: Conference Call and Webcast Playback
TRANSCAT ‘srustin every measure Conference Call and Webcast Playback ¢ Replay Number: 412-317-6671 passcode: 13718348 Telephone replay available through Wednesday, May 26, 2021 * Webcast / Presentation / Replay available at ¢ Transcript, when available, at
Slide 13: Supplemental Information
Supplemental Information TRANSGAT Trust in every measure
Slide 14: Adjusted EBITDA Reconciliation
TRANSCAT ‘srustin every measure Adjusted EBITDA Reconciliation (Sin thousands) FY 2017 FY 2018 FY 2019 FY 2020 Fy 2021 Net Income $ 4522 $ 5,922 $ 7145 $ 8067 $ 7,791 + Interest Expense 719 1,018 903 934 850 + Other Expense / (Income) sa 60 91 186 241 +Tax Provision 2,642 2,026 2,090 1,663 2,191 Ope
Slide 15: Segment Adjusted EBITDA Reconciliation
TRANSCAT ‘srustin every measure Segment Adjusted EBITDA Reconciliation ($ in thousands) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Service Operating Income $ 4,769 $ 5,158 $ 5,202 $ 5,672 $ 10,441 +Depr n & Amorti 4,660 4,397 4,754 4,929 5,597 +Restructuring Expense - - - - 349 +Other (Expense) / Incom