Transcat, Inc. · NASDAQ:TRNS
Transcat — Q2 FY2021 Earnings Presentation
14 slides from Transcat's earnings presentation, Oct 28, 2020
Slide 1: Q2 Financial Results Fiscal 2021
Q2 Financial Results Fiscal 2021 Lee D. Rudow President and CEO Michael J. Tschiderer Chief Financial Officer TRANSGAT Trust in every measure
Slide 2: Safe Harbor Statement
TRANSOAT stn oy esse 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.
Slide 3: Q2 FY21 Execution
TRANSCAT stn overy measure Q2 FY21 Execution Consolidated Results Service Segment ==>] Distribution So Segment Revenue of $41.6M Gross margin expanded 260 bps to 27.6% on revenue similar to prior year Q2 Exceeded expectations: generated $3.1M of operating income Achieved net income of $2.0M or $0.27
Slide 4: Revenue
Revenue (Sin millions) Q2 Service Segment TRANSCAT stn overy measure Consolidated — Annual 288 1 $1609 © $173.1 $169.5 $23.5 giaag $3554 L LJ = Q2 2020 Q2 2021 FY 2017 FY 2018 FY 2019 FY 2020 Q2 FY21 TTM Q2 Distribution Segment $18.3 $17.1 Q2 2020 Q2 2021 ll Service © Distribution Service segment: *
Slide 5: Operating Income
Operating Income TRANSCAT stn overy measure (S in millions) Q2 Service Segment Consolidated — Annual $3.0 $10.2 al $9.9 $9.0 528 $7.2 esas Q2 2020 Q2 2021 FY 2017 FY 2018 FY 2019 FY 2020 Q2 FY21TTM Q2 Distribution Segment $1.2 $0.1 0.6% — Q2 2020 Q2 2021 ll Service © Distribution Significant Service
Slide 6: Net Income & Diluted EPS
TRANSOAT stn oy esse Net Income & Diluted EPS ($ in millions, except EPS) Annual Quarterly 5 i l 7 | ited EFS G _ FY 2017 FY 2018 FY 2019 FY 2020 wee ae Q2 2020 Q2 2021 Last fiscal year’s second quarter benefited from a lower tax rate due to increased discrete income tax benefits related to stock-ba
Slide 7: Adjusted EBITDA and Margin
TRANSCAT stn overy measure Adjusted EBITDA* and Margin (Sin millions) Q2 Service Segment $4.5 $3.1 18.2% Consolidated — Annual $17.8 $18.4 $18.4 $14.5 $16.4 Q2 2020 Q2 2021 Q2 Distribution Segment $1.7 $0.7 Q2 2020 Q2 2021 FY 2017 FY 2018 FY 2019 FY2020 Q2FY21TTM i Service © Distribution Continued t
Slide 8: Flexible Balance Sheet Supports Growth Strategy
TRANSCAT ‘rustinovry measure Flexible Balance Sheet Supports Growth Strategy (Sin millions) ee Comper ay et a et Sept 26, | March 28, id 2020 2020 Cash and cash equivalents $ Lo |S Total debt 22.7 Total net debt 217 Shareholders’ equity 70.1 Total capitalization $ 92.8 $ Debt/total capitalization 24
Slide 9: Strong Cash Generation
TRANSCAT tists every measure Strong Cash Generation ($ in millions) $24.7M in working capital at end of Q2 FY21 Note: Components may not add to totals Sept 26, Sept 28, E 5 due to rounding Accounts recelvable decreased 583M " Q2 FY21 Net cash provided by operations $85 $2.0 Capital investments prima
Slide 10: Outlook
TRANSCAT inst oy nessun Outlook* Q3 FY 2021 Expectations Service: Expect revenue to grow modestly versus last fiscal year’s third quarter, with solid improved gross margin versus prior year Q3 Distribution: Expect sales to continue to be negatively impacted by the current COVID-19 economic environme
Slide 11: Conference Call and Webcast Playback
TRANSOAT stn sy en Conference Call and Webcast Playback ¢ Replay Number: 412-317-6671 passcode: 13710941 ¢ Telephone replay available through Wednesday, November 4, 2020 * Webcast / Presentation / Replay available at http://www.transcat.com/investor-relations/ * Transcript, when available, at http:/
Slide 12: Supplemental Information
Supplemental Information TRANSGAT Trust in every measure
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (Sin thousands) TRANSCAT stn overy measure 2 Fy21 FY 2017 FY 2018 FY 2019 FY 2020 TT™ Net Income $ 4522 $ 5,922 $ 7,145 $ 8,067 $ 6,792 + Interest Expense 719 1,018 903 934 904 + Other Expense / (Income) 51 60 a1 186 194 +Tax Provision 2,642 2,026 2,090 1,663 1,985 Ope
Slide 14: Segment Adjusted EBITDA Reconciliation
TRANSCAT stn ory nea Segment Adjusted EBITDA Reconciliation (Sin thousands) az Fy21 FY 2017 FY 2018 FY 2019 FY 2020 T™ Service Operating Income $ 4,769 $ 5,158 $ 5,202 $ 5672 $ 7,203 +Depreciation & Amortization 4,660 4,397 4,754 4,929 5,216 +Restructuring Expense - - - : 193 +Other (Expense) / Inco