Slide 1: Financial Results Q2 Fiscal 2023
Financial Results Q2 Fiscal 2023 Lee D. Rudow President and CEO Mark A. Doheny Chief Operating Officer Tom L. Barbato Chief Financial Officer Trust in every measure
Slide 2: Safe Harbor Statement
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 assumptions. Forward-looking state
Slide 3: Q2 FY23 Summary
TRANSCAT ins: in every measure Q2 FY23 Summary Revenue grew 12% from prior year Consolidated Gross margin expanded 70 basis points from PY to 29.7% Results Adjusted EBITDA increased 6% from prior year to $7.5 million Net Income of $2.4 million or $0.31 per diluted share Revenue up 19%; 9.3% organic
Slide 4: Revenue
TRANSCAT ist in every measure Revenue (Sin millions) Q2 Consolidated Q2 Service Segment $56.4 D) ' $50.4 Gass ae $29.5 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 ; ; Q2 Distribution Segment Consolidated revenue up 12% on Service segment strength and modest growth in Distribution $20.8 $21.2 Service total reven
Slide 5: Gross Profit and Margin
Gross Profit and Margin (S$ in millions) Q2 Consolidated $14.6 68 a7 Q2 FY22 Q2 FY23 Consolidated gross margin expanded 70 basis points Service gross margin of 32.6% contracted 30 basis points primarily due to increased start-up costs from new client- based lab implementations Distribution gross mar
Slide 6: Net Income, Diluted EPS, Adjusted Diluted EPS
TRANSCAT ist in every measure Net Income, Diluted EPS, Adjusted Diluted EPS* (Sin millions, except EPS) Net Income Diluted EPS Adjusted Diluted EPS* $0.57 $3.0 oa $0.40 $0.44 i . $0.31 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY23 net income of $2.4 million down 23% from PY and Diluted EPS
Slide 7: Adjusted EBITDA and Margin
TRANSCAT ins: in every measure Adjusted EBITDA* and Margin (Sin millions) Q2 Consolidated Q2 Service Segment $7.1 $7.5 $5.5 $5.5 “ ae Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 Distribution Segment ' m Hi $2.0 Consolidated adjusted EBITDA of $7.5 million up 6% $1.6 Service segment adjusted EBITDA of $5.5 mi
Slide 8: Operating Free Cash Flow
Operating Free Cash Flow (Sin millions) Cash flow impacted by increased inventory . . as the result of strategic buys ahead of price et cash) provided by operations ae on increases and mitigate supply chain risk Capital expenditures primarily focused on ital it ‘Cap (4.3 5 Copital expenditures (Cape
Slide 9: Balance Sheet Supports Growth Strategy
Balance Sheet Supports Growth Strategy (Sin millions) 1.81x leverage ratio at quarter-end (Total debt to TTM Adjusted EBITDA*) Cash and cash equivalents $0.9 $1.4 Total debt 50.8 48.5 $36.7M available from credit facility at Total net debt $49.9 $47.1 quarter-end Shareholders’ equity be _I e2B Calib
Slide 10: Outlook
Outlook* FY 2023 Expectations Service segment: For fiscal 2023, we expect Service organic revenue growth to be in the high- single digit range and expect gross margin improvement from prior year Total Transcat: We expect the fiscal 2023 income tax rate to be in the range of 22% to 24% Mid-to-long Te
Slide 11: Conference Call and Webcast Playback
Conference Call and Webcast Playback ¢ Replay Number: 412-317-6671 passcode: 13733840 Telephone replay available through Tuesday, November 8, 2022 * Webcast / Presentation / Replay available at www.transcat.com/investor-relations
Slide 12: Supplemental Information
Supplemental Information Trust in every measure
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (Sin thousands) FY 2022 Q2 FY2023Q2_ FY 2023 Q2TTM Net Income $ 3,015 $ 2357 $ 10,106 +Interest Expense 169 550 1,362 +Other (Expense) / Income 81 (13) (161) +Tax Provision 313 732 2,799 (Operating Income $ 3578 $ 3,626 $ 14,106 ++Depreciation & Amortization 2,41 2,778
Slide 14: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation (Sin thousands) FY 2022 a2 FY 2023 G2 Service Operating Income 2,647 2507 +Depreciation & Amortization 1,634 2,246 +Restructuring Expense g : +Acquisition Related Add-Back 821 5 +Other (Expense) / Income (56) 3 +Noncash Stock Compensation 44 793 Service Adjuste
Slide 15: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation ($ in thousands) Q2 FY22 Q2 FY 23 GAAP Net Income (loss) $ 3,015 $ 2,357 ‘Add back (deduct) ‘Amortization of Intangibles n9 1148 Acquisition deal costs 1,000° ay ‘Acg Stock Expense : 239 Income Tax Effect at 25% (432) (347) Non-GAAP adjusted net income $ 4312 $ 3,