Transcat, Inc. · NASDAQ:TRNS
Transcat — Q4 FY2023 Earnings Presentation
15 slides from Transcat's earnings presentation, May 2023
Slide 1: Q4 Financial Results Fiscal 2023
Q4 Financial Results Fiscal 2023 Lee D. Rudow President and CEO Mark A. Doheny Chief Operating Officer Tom L. Barbato 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: Q4 FY23 and Full Year FY23 Summary
Q4 FY23 and Full Year FY23 Summary Q4 revenue up 11.1% to all-time quarterly record of $62.1 million Consolidated Gross margin of 29.6% expanded 110 bps for the full year Results Adjusted EBITDA increased 18% from prior year to $9.0 million in Q4 and increased 16% to $30.4M for the full year Net Inc
Slide 4: Revenue
Revenue ($ in millions) Service Segment Distribution Segment Consolidated +15% $21.2 +5% $22.3 +11% $62.1 $39.8 $55.9 $34.7 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Full Year Consolidated Consolidated revenue up Q4 11% and FY 12% on $205.0 +12% $230.6 Service segment strength and modest growt
Slide 5: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Service Segment Distribution Segment $13.5 Consolidated $5.2 $5.6 $11.5 +15% $19.2 $16.7 33.1% 34.0% 29.8% 30.9% 24.5% 25.2% Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Full Year Consolidated Consolidated gross margin of FY 29.6% expanded 110 bps $68.4 $58
Slide 6: Net Income, Diluted EPS, Adjusted Diluted EPS
Net Income, Diluted EPS, Adjusted Diluted EPS* ($ in millions, except EPS) Net Income Diluted EPS Adjusted EPS* $3.7 $3.0 $0.48 $0.40 $0.60 $0.54 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 net income of $3.7 million up 20% from PY and Full Year Net Income Diluted EPS $0.48 vs. $0.40 in prior
Slide 7: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) Service Segment Distribution Segment Consolidated $7.0 +18% $9.0 $6.0 $2.0 $7.7 $1.6 17.4% 17.7% 7.7% 8.8% 13.7% 14.5% Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Full Year Consolidated $26.3 $30.4 AM% AM% Consolidated adjusted EBITDA up Q4 18% and FY
Slide 8: Operating Free Cash Flow
Operating Free Cash Flow ($ in millions) Twelve Months Ended Note: Components may not add to totals due to rounding Mar 25, Mar 26, 2023 2022 Cash flow consistent with prior year Net cash provided by operations $17.0 $17.6 Capital expenditures primarily focused on technology, Service capabilities/ex
Slide 9: Balance Sheet Supports Growth Strategy
Balance Sheet Supports Growth Strategy ($ in millions) Capitalization Note: Components may not add to totals Mar 25, Mar 26, due to rounding 2023 2022 Cash and cash equivalents $1.5 $1.4 1.60x leverage ratio at quarter-end Total debt 49.1 48.5 (Total debt to TTM Adjusted EBITDA*) Total net debt $47.
Slide 10: Outlook
Outlook* 2024 Expectations Service segment: For Fiscal 2024, expect Service organic revenue growth to be in the high- single digit range and Service gross margin improvement from prior year. Investments in the high-growth NEXA business as well as new client-based labs will support additional revenue
Slide 11: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13738813 Telephone replay available through Tuesday, May 30, 2023 • Webcast / Presentation / Replay available at www.transcat.com/investor-relations 11
Slide 12: Supplemental Information
Supplemental Information 12
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2022 Q4 FY 2022 FY 2023 Q4 FY 2023 Net Income $ 3,048 $ 11,380 $ 3,658 $ 10,688 +Interest Expense 258 810 781 2,417 +Other (Expense) / Income 114 143 248 344 +Tax Provision 1,095 1,810 1,168 2,799 Operating Income $ 4,515 $ 14,143 $ 5,855 $ 16,248 +
Slide 14: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) FY 2022 Q4 FY 2023 Q4 Service Operating Income $ 3,532 $ 4,547 +Depreciation & Amortization 2,070 2,147 +Acquisition Related Add-Back 26 59 +Other (Expense) / Income (82) (170) +Noncash Stock Compensation 482 456 Service Adjusted EBITDA $ 6,028
Slide 15: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation ($ in thousands) Q4 FY22 Q4 FY 23 GAAP Net Income (loss) $ 3,048 $ 3,658 Add back (deduct) Amortization of Intangibles 1,098 1,043 Acquisition deal costs 26 59 Acq Stock Expense 239 167 Acquisition Amortization of backlog 90 - Income Tax Effect at 25% (363) (317)