Transcat, Inc. · NASDAQ:TRNS
Transcat — Q1 FY2022 Earnings Presentation
15 slides from Transcat's earnings presentation, Jul 28, 2021
Slide 1: Q1 Fiscal 2022 Financial Results
Q1 Fiscal 2022 Financial Results Lee D. Rudow President and CEO Mark A. Doheny Chief Financial Officer TRANSGAT Trust in every measure
Slide 2: Safe Harbor Statement
TRANSCAT ‘Trust 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 a
Slide 3: Q1 FY22 Execution
TRANSCAT ‘tusti ovry messue Q1 FY22 Execution Consolidated Results Service Segment Distribution Segment Revenue up 22.8% to a first quarter record of $47.8M Gross margin expanded 410 basis points to 28.3% Exceeded expectations: generated $6.1M of adjusted EBITDA, up 75% vs. PY Achieved net income of
Slide 4: Revenue
TRANSCAT ‘tusti ovry messue Revenue ($ in millions) Q1 Consolidated Q1 Service Segment $27.6 $47.8 $23.0 $38.9 i : 012021 - 12022 Qi 2021 Q1 2022 Q1 Distribution Segment Consolidated revenue up 23% with broad-based strength across both operating segments $20.2 Service organic growth accelerated to 1
Slide 5: Gross Profit and Margin
TRANSCAT in: ‘in every measure Gross Profit and Margin ($ in millions) Q1 Consolidated Q1 Service Segment $13.5 $9.4 [| —— -— 24.2% _ 28.3% mam oA Qi 2021 Qi 2022 Q1 Distribution Segment Consolidated gross margin expanded 410 basis points Service gross margin of 31.8% expanded 540 basis points on op
Slide 6: Operating Income
TRANSCAT ‘tusti ovry messue Operating Income ($ in millions) Q1 Consolidated Q1 Service Segment $3.7 $3.0 $1.1 012022 Qi2021 Qi 2022 Q1 Distribution Segment Consolidated operating income up $2.7 million from PY Service operating margin of 10.8% expanded 590 basis points and drove consolidated result
Slide 7: Net Income & Diluted EPS
TRANSCAT iustin every measure Net Income & Diluted EPS (Sin millions, except EPS) Q1 Net Income Q1 Diluted EPS $3.7 $0.49 $0.11 $0.8 =| I, Qi 2021 Q1 2022 Qi 2021 Qi 2022 Both Q1 FY22 and Q1 FY21 included discrete tax benefits due to tax accounting associated with share- based awards and stock optio
Slide 8: Adjusted EBITDA and Margin
TRANSCAT in: ‘in every measure Adjusted EBITDA* and Margin ($ in millions) Q1 Consolidated Q1 Service Segment $4.7 $6.1 $2.9 12.8% eke 1.2022 Qi 2021 Qi 2022 Ql! Distribution Segment Consolidated adjusted EBITDA of $6.1M up 75% Service segment adjusted EBITDA margin expanded 460 basis points to 17.1
Slide 9: Cash Flow
TRANSCAT ‘Trust in every measure Cash Flow (Sin millions) Q1 Cash flow in line with expectations on Net cash provided by operations $2.1 $4.0 working capital increase to support growth Capital expenditures primarily focused on Capital expenditures (CapEx) (1.2) (1.3) technology, Service segment capa
Slide 10: Balance Sheet Supports Growth Strategy
TRANSCAT ‘tusti ovry messue Balance Sheet Supports Growth Strategy (Sin millions) PITALIZATION Cash and cash equivalents Total debt Total net debt Shareholders’ equity Total capitalization Debt/total capitalization Net debt/net total capitalization 22.2 19.6 21.9 19.0 76.7 75.1 $ 986 $ 94.6 22.5% 20
Slide 11: Outlook
TRANSCAT rusts nn esse Outlook* Q2 FY 2022 Service segment: expect organic revenue growth to be similar to what we achieved in the trailing first quarter fiscal 2022; more modest improvement in gross margin compared to the last several quarters due to a more difficult technician productivity compari
Slide 12: Conference Call and Webcast Playback
TRANSCAT iustin every measure Conference Call and Webcast Playback * Replay Number: 412-317-6671 passcode: 13721676 Telephone replay available through Wednesday, August 4, 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 iustin every measure Adjusted EBITDA Reconciliation (Sin thousands) FY 2018 FY 2019 Fy 2020 Fy2021_ FY 2022Q1 Net Income $ 5922 $ 7,145 $ 8067 $ 7,791 $ 3,688 +Interest Expense 1,018 903 934 850 189 +Other (Expense) / Income 60 91 186 241 6 +Tax Provision 2,026 2,090 1,663 2,191 (194) Opera
Slide 15: Segment Adjusted EBITDA Reconciliation
TRANSCAT iustin every measure Segment Adjusted EBITDA Reconciliation (Sin thousands) F¥2017__-FY2018_—_—=FY2019_—_—=FY2020_—«—_—~FY2021_——FY 20221 Service Operating Income $ 4769 § 5158 $ 5202 $ 5672 § 10441 $ 2,974 +Depreciation & Amortization 4,860 4,397 4,754 4,929 5,597 1,488 +Restructuring Expe