Slide 1: Q2 Financial Results Fiscal 2024
Q2 Financial Results Fiscal 2024 Lee D. Rudow President and CEO Mark A. Doheny 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 Section 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 ar
Slide 3: Q2 FY24 Summary
Q2 FY24 Summary Q2 revenue increased 11% to $62.8 million Consolidated Gross margin of 32.0%, an improvement of 230 bps from prior year Results Adjusted EBITDA increased 24% from prior year to $9.3 million Operating Cash Flow of $8.4 million in the quarter and $16.0 million year to date Q2 Revenue i
Slide 4: Revenue
Revenue ($ in millions) Service Segment Distribution Segment Consolidated 17% $41.4 1% 11% $62.8 $21.2 $21.4 $56.4 $35.3 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 Consolidated revenue growth of 11% on strong Service segment performance Service revenue growth of 17% with double-digit organic
Slide 5: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Service Segment Distribution Segment Consolidated $14.1 $6.0 20% $5.3 $20.1 $11.5 $16.8 32.6% 34.0% 24.9% 28.3% 29.7% 32.0% Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 Consolidated gross margin 32.0% expanded 230 bps vs prior year Service gross margin o
Slide 6: Net Income, Diluted EPS, Adjusted Diluted EPS
Net Income, Diluted EPS, Adjusted Diluted EPS* ($ in millions, except EPS) Net Income Diluted EPS Adjusted EPS* $2.4 $0.31 $0.60 $0.44 $0.5 $0.06 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 Net Income of $0.5M due to the previously disclosed non-cash charge of $2.8M for the amended NEXA Earn-
Slide 7: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) Service Segment Distribution Segment Consolidated $9.3 $6.8 $2.5 24% $7.5 $5.5 $2.0 15.7% 16.4% 9.4% 11.8% 13.3% 14.9% Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Consolidated adjusted EBITDA up 24% driven by growth in both segments Service segment adj
Slide 8: Operating Free Cash Flow
Operating Free Cash Flow ($ in millions) Six Months Ended Note: Components may not add to totals due to September September rounding 23, 2023 24, 2022 Cash Flow has improved vs prior year Net cash provided by operations $16.0 $5.2 Capital expenditures up slightly year over year and remain focused on
Slide 9: Balance Sheet Supports Growth Strategy
Balance Sheet Supports Growth Strategy ($ in millions) 1.37x leverage ratio at quarter-end (Total debt to TTM Adjusted EBITDA*) $32.0M available from credit facility at quarter-end Revolving credit facility was paid off subsequent to quarter end with the proceeds from the Secondary Offering. * See s
Slide 10: Outlook
Outlook* 2024 Expectations Service segment: For Fiscal 2024, expect Service organic revenue growth to be in the high- single digit range and Service gross margin improvement from prior year. Total Transcat: We expect the fiscal 2024 income tax rate to be in the range of 24% to 26%. The tax rate is h
Slide 11: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13742041 Telephone replay available through Tuesday, November 7, 2023 • Webcast / Presentation / Replay available at https://www.transcat.com/investor-relations 11
Slide 12: Supplemental Information
Supplemental Information 12
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation In addition to reporting net income, a U.S. generally accepted accounting principle (“GAAP”) measure, we present Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, non-cash stock compensation expense, restructuring expense and non-c
Slide 14: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation In addition to reporting net income, a U.S. generally accepted accounting principle (“GAAP”) measure, we present Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, non-cash stock compensation expense, restructuring expense a
Slide 15: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation ($ in thousands) In addition to reporting Earnings Per Share, a GAAP measure, we present Adjusted Diluted Earnings Per Share (net income plus acquisition related amortization expense, acquisition related transaction and integration expenses, acquisition amortizati