Transcat, Inc. · NASDAQ:TRNS

Transcat — Q1 FY2016 Earnings Presentation

15 slides from Transcat's earnings presentation, Jul 29, 2015

  1. Slide 1: Q1 Fiscal 2016 Financial Results

    Exhibit 99.2 Q1 Fiscal 2016 Financial Results Lee D. Rudow President and CEO John J. Zimmer Senior VP of Finance and CFO TRANSGAT Trustin every measure

  2. Slide 2: Safe Harbor Statement

    TRANSCAT stn ey masse 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

  3. Slide 3: First Quarter Execution

    TRANSCAT stn ey masse First Quarter Execution Revenue of $29.7 million * Service segment revenue up 11.5%. + Winning new customers: sales strategies and team are working ‘+ Maintaining high retention rate * Acquisitions continue to contribute * Strong new business pipeline Consolidated operating inc

  4. Slide 4: Top-line Growth

    Top-line Growth (Sin mons Q1 Service Segment $13.5 $12.4 QL FY 2015 aa Fv2016 Q1 Distribution Segment $17.0 $262 Qa FY 2015 cary 2016 TRANSCAT sti ower esse Consolidated — Annual 110.0 $112.3. $118.5 $123.6 $124. Fv2012 © FY2013,«FY2014»FY2015QUFY 2016 i Service it Distribution Total revenue up 2% +

  5. Slide 5: Operating Income and Margin

    Operating Income and Margin {Sin mtons Q1 Service Segment $0.6 $0.3 QL FY 2015 aa Fv2016 Q1 Distribution Segment $0.5 an Qa FY 2015 cary 2016 Consolidated — Annual hel : i FT FT Fv2012FY2013«FY2014 «FY 2015 “aun i Service it Distribution + Service operating margin expanded 260 basis points * Distrib

  6. Slide 6: Contribution Margin and % of Revenue

    Contribution Margin* and % of Revenue {Sin mons Q1 Service Segment Consolidated — Annual $19 gaa $44 81ST gag $158 QL FY 2015 a Fv2016 Fv20i2FY2013,«FY2014 «FY 2015 “aun i Service it Distribution $13 Q1 Distribution Segment + Qi Service segment up 49% $L7 SL7 + 33% CAGR for Service segment (FY 2012

  7. Slide 7: Adjusted EBITDA and Margin

    TRANSCAT sti ower esse Adjusted EBITDA* and Margin {Sin mitons Q1 Service Segment sua $0.8 anrr2015 aarv2016 Q1 Distribution Segment $0.7 $0.6 , Qi FY 2015 " QI FY 2016 : Consolidated — Annual sioo $10.3. $107 Fv2012FY2013FY2014 «FY 2015 “aun i Service it Distribution + Service segment up 69% quarte

  8. Slide 8: Bottom-line Performance

    TRANSCAT stn ey masse Bottom-line Performance (Sin mos Annual Net Income Quarterly Net Income a0 $40 $42 $3.3 3.2 $0.6 $0.4 %ot Revenue Fr2012FY2013. F204 -FY2015.QLFY 2016 ury201s qu F¥2016 ™ {$043 $049 $054 $0.57 $059 | iiss {$0.06 $008 | * 8% CAGR for net income (FY 2012- Qi FY 2016 TTM)

  9. Slide 9: Balance Sheet Supports Acquisition Strategy

    TRANSCAT tn snernesn Balance Sheet Supports Acquisition Strategy (sinmitons) Long Term Debt . Revolving credit facility: 22 suns $18.0 million available $20 576 FY 2016 CapEx = Increasing lab capabilities — Adding lab capacity Fv2012 FY2013 | FY2014FY2015 QLFY2016. — Assets for rental business + Fin

  10. Slide 10: Generating Cash to Drive Key Investments

    TRANSCAT sti ower esse Generating Cash to Drive Key Investments Historical Trailing 12 Month Key Investments and Current Quarter Debt Balance (Sheteuena) $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 ‘$6,000 $4,000 $2,000 $0 Q113 Q213 Q313 Q413 Q114 Q214 Q314 A414 QI15 Q215 Q315 Q415 A116 ROIC (TTM

  11. Slide 11: FY 2016 Outlook

    TRANSCAT rus: orr FY 2016 Outlook* * Expect double-digit Service segment revenue growth Acquisitions E-commerce platform and C3 Asset Management Software Life science market expanding Enterprise sales strategy is working * Capture Distribution market share Consolidated operating Expanding number of

  12. Slide 12: Upcoming Investor Relations Calendar

    TRANSCAT sti ower esse Upcoming Investor Relations Calendar August 27 September 2 September 9 Late October IDEAS Conference (Chicago) Sidoti 2015 Micro-Cap Conference (NYC) Annual Meeting (Rochester, NY) Q2 FY 2016 Earnings Results 7

  13. Slide 13: Supplemental Information

    SUPPLEMENTAL INFORMATION TRANSCAT ess crynesaire

  14. Slide 14: Adjusted EBITDA Reconciliation

    TRANSCAT tn snernesn Adjusted EBITDA Reconciliation (S i thousands) ane 2016 fv2012, __fy2013,_Fv201a_ey2015,_TTM service Operating Income (ss) $ (75) $ aan «$2879 § 3693 § 4.072 {Depreciation & Amortization 11958 4740 2ade 2,362 2554 +Other (Expense) / Income @7) (es) (ay (038) (182), +Noncash Stoc

  15. Slide 15: Contribution Margin Calculation

    TRANSCAT tn snernesn Contribution Margin Calculation (5 in thousands) @grTD Serie Revenue Ts SRS SI Se CostofRevenue 21788 30383 35359 37,698 3gs01 Grose Proft 3860 $1032 $i $1403 F187 Grose Marga 237% 253% 258% 22% 28% Sling, Mashating& Warehouse Expenses S sus _$ sin _$ 6690 _$ essa $62 Corton Mar

Transcat — Q1 FY2016 Earnings Presentation on 6ix