Transcat, Inc. · NASDAQ:TRNS
Transcat — Q3 FY2019 Earnings Presentation
13 slides from Transcat's earnings presentation, Feb 5, 2019
Slide 1: Q3 Financial Results Fiscal 2019
Q3 Financial Results Fiscal 2019 Lee D. Rudow President and CEO Michael J. Tschiderer Chief Financial Officer TRANSGAT Trust in every measure
Slide 2: Safe Harbor Statement
TRANSCAT rusts oy nssus 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 assumption
Slide 3: Q3 FY 2019 Execution
TRANSAT stinovry noasure Q3 FY 2019 Execution Consolidated Results Service Segment Distribution Segment Revenue increased 1.0% to $40.9M — the highest ever for a third quarter Encouraged with early read into January YTD cash from operations of $7.2M, up $1.4M or 25% Performance and integration of th
Slide 4: Revenue
TRANSCAT ust ovrymessure Revenue ($ in millions) Q3 Service Segment Consolidated — Annual $20.5 $143.9 9255-1 $158.9 : a “T a | | Q3 FY 2018 Q3 FY 2019 FY 2015 FY 2016 FY 2017 FY2018 = Q3FY19TTM ) Service @ Distribution 3 Distribution S it OS Distributor SeEmien * Q3 Service up 9.2% overall, 5.2% or
Slide 5: Operating Income
TRANSCAT usin evry moasuro Operating Income ($ in millions) Q3 Service Segment Consolidated — Annual $1.1 $6.8 $6.3 $0.6 Q3 FY 2018 Q3 FY 2019 FY 2015 FY 2016 FY 2017 FY2018 Q3FY19TTM \) Service @ Distribution Q3 Distribution Segment . a * Service margin impacts: — Incurred ramp-up expenses prior to
Slide 6: Net Income & Diluted EPS
TRANSCAT rusts oy nssus Net Income & Diluted EPS (Sin millions, except EPS) Annual Quarterly $6.9 $5.9 1.8 $4.5 2 $4.0 $4.1 $1.6 | a | Diluted EPS = FY 2015 FY 2016 FY 2017 FY 2018 Q3 FY19 Q3 FY 2018 Q3 FY 2019 T™ * Higher effective tax rate in Q3 FY19 of 25.3% compared with 21.9% — Prior-year perio
Slide 7: Adjusted EBITDA and Margin
TRANSCAT ‘rte nose Adjusted EBITDA* and Margin (Sin millions) poe Q3 Service Segment Consolidated — Annual 17.5 $2.3 gus S184 $ $2.0 - = = “oz S Q3 FY 2018 Q3 FY 2019 FY 2015 FY 2016 FY 2017 FY 2018 Q3 FY19 TTM \) Service @ Distribution 3 Distribution Segment Q 2 * Total Q3 FY19 Adjusted EBITDA* dow
Slide 8: Financial Flexibility Supports Growth Strategy
TRANSCAT sti over measure Financial Flexibility Supports Growth Strategy ($ in millions) Total Debt $27.3 $19.1 $12.2 all FY2015 FY2016 FY 2017 Capital Expenditures $5.3 : il . Fy2015 FY2016 FY 2017 * See supplemental slides for a description of this non-GAAP financial measure, for Adjusted EBITDA r
Slide 9: Outlook — Building our Business for the Long Term
TRANSAT stinovry noasure Outlook* — Building our Business for the Long Term Q4 FY19: expect favorable quarter-over-quarter comparisons when excluding the extra week from last year’s fourth quarter FY 2019: expect to close the year with record consolidated revenue and earnings CapEx: Refined expected
Slide 10: Conference Call and Webcast Playback
TRANSCAT tn cur mene Conference Call and Webcast Playback * Replay Number: 412-317-6671 passcode: 13686189 * Telephone replay available through Tuesday, February 12, 2019 * Webcast / Presentation / Replay available at Transcript, when available, at
Slide 11: Supplemental Information
Supplemental Information TRANSGAT Trust in every measure
Slide 12: Adjusted EBITDA Reconciliation
TRANSCAT ‘rte nose Adjusted EBITDA Reconciliation (Sin thousands) 3QFY19 FY 2015 FY 2016 FY 2017 FY 2018, 1! Net Income $ 40268 $ 4124 $ 4522 $ 5922 $6,939 + Interest 234 247 ns 1,018 904 +Other Expense / (Income) aa 43 si 60 35 +Tax Provision 2,397 1,883 2,642 2,026 2,220 Operating Income $ 6768 $
Slide 13: Segment Adjusted EBITDA Reconciliation
TRANSCAT ‘rte nose Segment Adjusted EBITDA Reconciliation (Sin thousands) 3QFY19 FY 2015 FY 2016 FY 2017 Fy 2018 ™ Service Operating Income $ 3,693 $ 4,155 $ 4,769 $ 5158 § 5,191 +Depreciation & Amortization 2,362 3,216 4,660 4,397 4,607 +Other (Expense) / Income (138) (64) (55) (61) (41) +Noncash S