Transcat, Inc. · NASDAQ:TRNS
Transcat — Q3 FY2022 Earnings Presentation
15 slides from Transcat's earnings presentation, Feb 4, 2022
Slide 1: Q3 Financial Results Fiscal 2022
Q3 Financial Results Fiscal 2022 Lee D. Rudow President and CEO Mark A. Doheny Chief Financial Officer 1
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: Q3 FY22 Summary
Q3 FY22 Summary Revenue up 15.5% to third quarter record $50.9 million Consolidated Gross margin expanded 130 basis points from PY to 26.8% Results Adjusted EBITDA increased 20% from prior year to $5.5 million Net Income of $1.6 million or $0.21 per diluted share Revenue up 22.0%; 10.2% organic grow
Slide 4: Revenue
Revenue ($ in millions) Q3 Consolidated Q3 Service Segment $50.9 $44.1 +16% +22% $30.2 $24.8 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 Distribution Segment Consolidated revenue up 15.5% on Service segment strength and continued recovery in Distribution $19.3 +7% $20.7 Service total revenue growth of 22%; o
Slide 5: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Q3 Consolidated Q3 Service Segment $13.6 $9.0 $11.2 +21% $6.9 27.9% 29.7% 25.5% 26.8% Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 Distribution Segment Consolidated gross margin expanded 130 basis points Service gross margin of 29.7% expanded 180 basis points on $4.3 $4
Slide 6: Operating Income
Operating Income ($ in millions) Q3 Service Segment Q3 Consolidated $2.5 $2.4 -6% $2.0 $1.7 7.9% 5.5% 5.7% 4.6% Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 Distribution Segment Consolidated and Service operating income unfavorably impacted by $0.7 million from NEXA acquisition accounting NEXA Intangibles amo
Slide 7: Net Income & Diluted EPS
Net Income & Diluted EPS ($ in millions, except EPS) Net Income Diluted EPS $1.8 -7% $1.6 $0.23 $0.21 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 FY22 net income of $1.6 million down from PY on NEXA acquisition accounting impact; Diluted EPS $0.21 vs. $0.23 in prior year Q3 FY22 effective tax rate was 26.8%;
Slide 8: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) Q3 Consolidated Q3 Service Segment +20% $5.5 $4.1 $4.6 $3.4 13.9% 13.5% 10.4% 10.7% Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 Distribution Segment Consolidated adjusted EBITDA of $5.5M up 20% Service segment adjusted EBITDA of $4.1 million up over $0.6 million fr
Slide 9: Operating Free Cash Flow
Operating Free Cash Flow ($ in millions) Nine Months Ended Note: Components may not add to totals due to rounding Dec 25, Dec 26, 2021 2020 Net cash provided by operations $12.4 $15.6 Cash flow in line with expectations on working capital increase to support growth Capital expenditures (CapEx) (5.9)
Slide 10: Balance Sheet Supports Growth Strategy
Balance Sheet Supports Growth Strategy ($ in millions) CAPITALIZATION Note: Components may not add to totals due to rounding Dec 25, Mar 27, 2021 2021 Cash and cash equivalents $ 2.8 $ 0.6 1.47x leverage ratio at quarter-end Total debt (Total debt to TTM Adjusted EBITDA*) 40.8 19.6 Total net debt 38
Slide 11: Outlook
Outlook* Q4 FY 2022 Expectations Service segment: For the fourth quarter of fiscal 2022, historically the strongest quarter of our fiscal year due to the seasonality of our Service business, we expect Service total revenue growth to be in the high-teens. We expect gross margin to be in the range of
Slide 12: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13726586 Telephone replay available through Wednesday, February 9, 2022 • Webcast / Presentation / Replay available at www.transcat.com/investor-relations 12
Slide 13: Supplemental Information
Supplemental Information 13
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2021 FY 2022 Q3 Q3 Net Income $ 1,761 $ 1,629 +Interest Expense 204 194 +Other (Expense) / Income 16 (58) +Tax Provision 539 596 Operating Income $ 2,520 $ 2,361 +Depreciation & Amortization 1,860 2,368 +Acquisition Related Add-Back - 55 +Other (Exp
Slide 15: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) FY 2021 FY 2022 Q3 Q3 Service Operating Income $ 1,957 $ 1,661 +Depreciation & Amortization 1,346 1,861 +Acquisition Related Add-Back - 55 +Other (Expense) / Income (8) 36 +Noncash Stock Compensation 126 475 Service Adjusted EBITDA $ 3,421 $ 4,