Slide 1: Q3 Fiscal 2022 Financial Results
Q3 Fiscal 2022 Financial Results Lee D. Rudow President and CEO Mark A. Doheny Chief Financial Officer TRANSGCAT Trust in every measure
Slide 2: Safe Harbor Statement
TRANSCAT rastin 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 assu
Slide 3: Q3 FY22 Summary
TRANSAT tustin ovary measure Q3 FY22 Summary Consolidated Results Service Segment Distribution Revenue up 15.5% to third quarter record $50.9 million Gross margin expanded 130 basis points from PY to 26.8% Adjusted EBITDA increased 20% from prior year to $5.5 million Net Income of $1.6 million or $0
Slide 4: Revenue
Revenue (Sin millions) Q3 Consolidated Q3 2021 Q3 2022 Consolidated revenue up 15.5% on Service segment strength and continued recovery in Distribution Service total revenue growth of 22%; organic growth remained strong at 10.2% Distribution revenue modestly below expectations on extended vendor lea
Slide 5: Gross Profit and Margin
TRANSAT tustin ovary measure Gross Profit and Margin (Sin millions) Q3 Consolidated Q3 Service Segment $13.6 $9.0 $11.2 $6.9 poe 25.5% 26.8% 1 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
Slide 6: Operating Income
Operating Income (Sin millions) Q3 Consolidated S28 $2.4 Q3 2021 Q3 2022 Consolidated and Service operating income unfavorably impacted by $0.7 million from NEXA acquisition accounting NEXA Intangibles amortization expense of $0.4 million in quarter will be ongoing; acquired backlog amortization wil
Slide 7: Net Income & Diluted EPS
TRANSCAT rst soy measure Net Income & Diluted EPS ($ in millions, except EPS) Net Income Diluted EPS 1. $1.8 mg a a ~ — 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 t
Slide 8: Adjusted EBITDA and Margin
TRANSCAT ins: ‘in every measure: Adjusted EBITDA* and Margin (Sin millions) Q3 Consolidated Q3 Service Segment 4.4 $3.4 8 u ae ake 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 $0.6 million
Slide 9: Operating Free Cash Flow
TRANSOAT sts wy ness Operating Free Cash Flow ($ in millions) Net cash provided by operations $12.4 $15.6 Cash flow in line with expectations on working capital increase to support growth Capital expenditures (CapEx) (5.9) (4.3) Capital expenditures primarily focused on technology, Service capabilit
Slide 10: Balance Sheet Supports Growth Strategy
TRANSAT tustin ovary measure Balance Sheet Supports Growth Strategy ($ in millions) CAPITALIZATION sponents may not add to totals Dec 25, Mar 27, due to round 202% 2028 Cash and cash equivalents $ 2.8 Total debt 40.8 Total net debt 38.0 Shareholders’ equity 82.9 Total capitalization $ 123.7 Debt/tot
Slide 11: Outlook
Outlook* TRANSCAT rnstin oy mosis 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 marg
Slide 12: Conference Call and Webcast Playback
TRANSAT irstin overy measure Conference Call and Webcast Playback * Replay Number: 412-317-6671 passcode: 13726586 Telephone replay available through Wednesday, February 9, 2022
Slide 13: Supplemental Information
Supplemental Information TRANSGCAT Trust in every measure
Slide 14: Adjusted EBITDA Reconciliation
TRANSCAT iustin every measure Adjusted EBITDA Reconciliation ($ in thousands) FY 2021 FY 2022 Q3 Net Income $ 1761 $ 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
Slide 15: Segment Adjusted EBITDA Reconciliation
TRANSCAT ins: ‘in every measure: Segment Adjusted EBITDA Reconciliation (S in thousands) FY 2021 FY 2022 Q3 Q3 Service Operating Income $ 1957 $ 1,661 +Depreciation & Amortization 1,346 1,861 +Acquisition Related Add-Back : 55 +Other (Expense) / Income (8) 36 +Noncash Stock Compensation 126 475 Serv