Transcat, Inc. · NASDAQ:TRNS
Transcat — Q3 FY2021 Earnings Presentation
16 slides from Transcat's earnings presentation, Feb 3, 2021
Slide 1: Financial Results Q3 Fiscal 2021
Financial Results Q3 Fiscal 2021 Lee D. Rudow President and CEO Mark A. Doheny Chief Financial Officer TRANSGAT Trust in every measure
Slide 2: Safe Harbor Statement
TRANSAT restin ‘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 FY21 Execution
TRANSCAT stn overy measure Q3 FY21 Execution Consolidated Results Service Segment Distribution Segment Revenue of $44.1 million up 2% in challenging operating environment Gross margin expanded 250 basis points to 25.5% Exceeded expectations: generated $2.5M of operating income, up 20% YoY Achieved n
Slide 4: Revenue
TRANSCAT stn overy measure Revenue (Sin millions) Q3 Consolidated Q3 Service 2 $24.8 44.1 $43.2 $ fan ‘f Q3 2020 Q3 2021 23 2020 Qs 202% Q3 Distribution Segment Consolidated revenue up YoY for the first time in fiscal year 2021 co $19.3 Service increased 12.2% with 5.9% organic growth Distribution d
Slide 5: Gross Profit and Margin
TRANSAT ins: ‘In every measure Gross Profit and Margin (Sin millions) Q3 Consolidated Q3 Service Segment $11.2 $6.9 $9.9 $4.9 Lal — r ced r cated . Q3 2020 Q3 2021 Q3 2020 Q3 2021 Consolidated gross profit up 13% and gross margin Q3 Distribution Segment expanded 250 basis points. Service gross margi
Slide 6: Operating Income
TRANSCAT sts ow ase Operating Income (Sin millions) Q3 Consolidated Q3 Service Segment $2.5 $2.1 $2.0 $0.5 , 4.8% 5.7% eee: Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 Distribution Segment Consolidated operating income up 20% Service operating margin of 7.9% expanded 570 basis $1.6 points and drove consolida
Slide 7: Net Income & Diluted EPS
Net Income & Diluted EPS (S in millions, except EPS) Net Income Diluted EPS $1.8 $15 $0.23 : - Q3 2020 Q3 2021 Q3 2020 : Q3 2021 Q3 net income up 19.2% to $1.8 million; Diluted EPS $0.23 vs. $0.20 in prior year Q3 effective tax rate was 23.4%; Expect full fiscal 2021 tax rate to range between 22% an
Slide 8: Adjusted EBITDA and Margin
TRANSAT ins: ‘In every measure Adjusted EBITDA* and Margin ($ in millions) Q3 Consolidated Q3 Service Segment $4.1 £88 ae $1.9 10.4% aoe i Gon - Goo Y Q3 2020 Q3 2021 Q3 Distribution Segment Consolidated adjusted EBITDA of $4.6M up 12% Service segment adjusted EBITDA margin expanded $2.2 550 basis p
Slide 9: Strong Cash Generation
TRANSCAT ‘Trust in every measure Strong Cash Generation (in millions) Year-to-date net cash provided by operations nearly doubled to $15.6M Net cash provided by operations $15.6 $8.2 $27.2M in working capital at end of Q3 FY21 Capital expenditures (CapEx) (4.3) (5.0) Capital expenditures primarily f
Slide 10: Balance Sheet Supports Growth Strategy
TRANSAT ins: In every measure Balance Sheet Supports Growth Strategy (Sin millions) CAPITALIZATION Total net debt down $6.4M from fiscal Cash and cash equivalents S AOS 0.5 2020 year-end Roteucebt | 2) 1.24x leverage ratio at quarter-end Total net debt 23.4 29.8 (Total debt to TTM Adjusted EBITDA*)
Slide 11: Outlook
TRANSCAT instnoynessue Outlook* Q4 FY 2021 Expectations (versus last year’s fourth quarter) Service segment: expect solid revenue growth and improvement in gross margin, but not to the same degree experienced in the last two quarters Distribution segment: expect to continue to be negatively impacted
Slide 12: Measured and Targeted Approach Driving Results
TRANSCT ius: In every measure Measured and Targeted Approach Driving Results (Sin millions) Consolidated Revenue Service segment performance validates strategy Strength of team and long-term strategy provides resiliency and solid Q3 FY 21 TTM results Continued to generate cash in this challenging en
Slide 13: Conference Call and Webcast Playback
TRANSAT ins: ‘In every measure Conference Call and Webcast Playback ¢ Replay Number: 412-317-6671 passcode: 13714787 Telephone replay available through Wednesday, February 10, 2021 * Webcast / Presentation / Replay available at www.transcat.com/investor-relations * Transcript, when available, at www
Slide 14: Supplemental Information
Supplemental Information Trust in every measure
Slide 15: Adjusted EBITDA Reconciliation
TRANSCAT “srustin every measure Adjusted EBITDA Reconciliation (Sin thousands) Q3 FY21 FY 2017 FY 2018 FY 2019 FY 2020 TT™ Net Income $ 4522 $ 5922 $ 7,145 $ 8067 $ 7,076 + Interest Expense 719 1,018 903 934 891 + Other Expense / (Income) 51 60 91 186 232 +Tax Provision 2,642 2,026 2,090 1,663 2,104
Slide 16: Segment Adjusted EBITDA Reconciliation
TRANSCAT “srustin every measure Segment Adjusted EBITDA Reconciliation (Sin thousands) 03 FY21 Fy 2017 Fy 2018 FY 2019 FY 2020 TT™ Service Operating Income $ 4,769 $ 5,158 $ 5202 $ 5672 $ 8671 +Depreciation & Amortization 4,660 4,397 4,754 4,929 5,382 +Restructuring Expense - - - - 193 +Other (Expen