Slide 1: Q4 Financial Results Fiscal 2024
Q4 Financial Results Fiscal 2024 Lee D. Rudow President and CEO Michael West Chief Operating Officer Tom L. Barbato Chief Financial Officer 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of 21E of the Securities Exchange Act of 1934. All statements other than historical fact are forward-looking statements. Forward-looking statements are not statements of historical fact and thus are subjec
Slide 3: Q4 FY24 and Full Year FY24 Summary
Q4 FY24 and Full Year FY24 Summary Q4 revenue grew 14% vs prior year to $70.9M Consolidated Gross margin of 33.9% expanded 300bps Q4 Results Adjusted EBITDA increased 30% from prior year to $11.7M in Q4 and increased 27% to $38.6M for the full year Net Income of $6.9M or $0.77 per diluted share in Q
Slide 4: Revenue
Revenue ($ in millions) Service Segment Distribution Segment Consolidated 18% $46.7 8% 14% $70.9 $39.8 $24.2 $62.1 $22.3 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Full Year Consolidated Consolidated revenue up Q4 14% and FY 13% as 13% both segments posted robust growth (includes the $259.5 $23
Slide 5: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Service Segment Distribution Segment Consolidated 24% 30% 26% $24.0 $19.1 $16.7 $7.3 $13.5 $5.6 34.0% 35.7% 25.2% 30.3% 30.9% 33.9% Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Full Year Consolidated 23% Consolidated gross margin of 33.9% in Q4, an increase
Slide 6: Net Income, Diluted EPS, Adjusted Diluted EPS
Net Income, Diluted EPS, Adjusted Diluted EPS* ($ in millions, except EPS) Net Income Diluted EPS Adjusted EPS* $0.66 $6.9 $0.60 $0.77 $3.7 $0.48 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 Net Income of $6.9M grew 88% and Diluted EPS Full Year Net Income of $0.77 vs. $0.48 in prior year. Net
Slide 7: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) Service Segment Distribution Segment Consolidated 24% 50% 30% $11.7 $9.0 $8.7 $2.9 $7.0 $2.0 17.7% 18.7% 8.8% 12.2% 14.5% 16.5% Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Full Year Consolidated 27% Consolidated adjusted EBITDA grew Q4 30% and FY 27% $
Slide 8: Operating Free Cash Flow
Operating Free Cash Flow ($ in millions) Twelve Months Ended Cash Flow has significantly improved vs prior year Note: Components may not add to totals March 25, March 30, due to rounding 2024 2023 Net cash provided by Capital expenditures up $4 million year $32.6 $17.0 operations over year and remai
Slide 9: Balance Sheet Supports Growth Strategy
Balance Sheet Supports Growth Strategy ($ in millions) Capitalization Note: Components may not add to totals March 25, March 30, due to rounding 2024 2023 0.1x leverage ratio at quarter-end Cash, cash equivalents, & $35.2 $1.5 (Total debt to TTM Adjusted EBITDA*) marketable securities Total debt 4.2
Slide 10: Outlook
Outlook* 2025 Expectations Service segment: For Fiscal 2025, expect Service organic revenue growth to be in the high- single digit to low double-digit range when normalized for the extra week in fiscal 2024 and continued Service gross margin expansion. Total Transcat: We expect the fiscal 2025 incom
Slide 11: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13746612 Telephone replay available through Tuesday, August 8, 2024 • Webcast / Presentation / Replay available at https://www.transcat.com/investor-relations 11
Slide 12: Supplemental Information
Supplemental Information 12
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2023 FY 2024 FY 2024 Q4 Q4 Q4 TTM Net Income $ 3,658 $ 6,890 $ 13,647 + Interest Expense 781 (411) 1,027 + Other Expense / (Income) 248 11 315 + Tax Provision 1,168 2,714 4,792 Operating Income $ 5,855 $ 9,204 $ 19,781 + Depreciation & Amortization
Slide 14: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) FY 2023 Q4 FY 2024 Q4 Service Operating Income $ 4,547 $ 8,143 + Depreciation & Amortization 2,147 2,281 + Transaction Expense 59 (44) + Acquisition Earn-Out Adjustment - (2,357) + Other (Expense) / Income (170) (17) + Noncash Stock Compensatio
Slide 15: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation ($ in thousands) ($ in thousands except per share data) FY 24 Q4 FY 23 Q4 GAAP Net Income $ 6,890 $ 3,658 Add back (deduct) $ (1,001) $ 952 Amortization of Intangibles 1,447 1,043 Acquisition deal costs 81 59 Acq Stock Expense 258 167 Acquisition Amortization of b