Slide 1: Q1 Financial Results Fiscal 2025
Q1 Financial Results Fiscal 2025 Lee D. Rudow President and CEO Michael West Chief Operating Officer Tom L. Barbato Chief Financial Officer 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement • This news release 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 sta
Slide 3: Q1 FY25 Summary
Q1 FY25 Summary Q1 revenue grew 10% vs prior year to $66.7M Consolidated Gross margin of 34.0% expanded 310bps Results Net Income of $4.4M or $0.48 per diluted share grew 49% from prior year Adjusted EBITDA increased 20% from prior year to $10.2M Q1 Service revenue of $43.8M grew 10% vs prior year,
Slide 4: Revenue
Revenue ($ in millions) Service Segment Distribution Segment Consolidated 10% $43.8 11% $22.9 10% $39.9 $20.7 $66.7 $60.6 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Consolidated revenue grew 10% in Q1 as both segments experienced consistent demand Service total revenue growth of 10%; organic gr
Slide 5: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Service Segment Distribution Segment Consolidated 15% 35% 21% $22.7 $18.7 $14.9 $7.8 $13.0 $5.7 32.5% 34.0% 27.7% 33.9% 30.9% 34.0% Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Consolidated gross margin of 34.0% increased 310bps vs prior year, as both segme
Slide 6: Net Income, Diluted EPS, Adjusted Diluted EPS
Net Income, Diluted EPS, Adjusted Diluted EPS* ($ in millions, except EPS) Net Income Diluted EPS Adjusted EPS* $4.4 $0.68 $0.48 $2.9 $0.38 $0.52 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 Net Income of $4.4M grew 49% driven by strong performance and reduction of interest expense, as majorit
Slide 7: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) Service Segment Distribution Segment Consolidated 12% 44% 20% $10.2 $8.5 $6.2 $7.0 $3.2 $2.2 15.6% 15.9% 10.8% 14.2% 14.0% 15.3% Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Consolidated adjusted EBITDA up 20% with double-digit growth in both segments a
Slide 8: Operating Free Cash Flow
Operating Free Cash Flow ($ in millions) Three Months Ended Cash Flow consistent with prior year Note: Components may not add to totals June 29, June 24, due to rounding 2024 2023 Capital expenditures up $0.9 million year Net cash provided by over year and remain focused on Service $8.9 $7.5 operati
Slide 9: Balance Sheet Supports Growth Strategy
Balance Sheet Supports Growth Strategy ($ in millions) Capitalization Note: Components may not add to totals June 29, March 30, due to rounding 2024 2024 0.08x leverage ratio at quarter-end Cash, cash equivalents, & (Total debt to TTM Adjusted EBITDA*) $22.7 $35.2 marketable securities Total debt 3.
Slide 10: Outlook
Outlook* 2025 Expectations Service segment: For Fiscal 2025, expect Service organic revenue growth to be in the high- single digit to low double-digit range when normalized for the extra week in fiscal 2024 and continued Service gross margin expansion. Total Transcat: We expect the fiscal 2025 incom
Slide 11: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13747789 Telephone replay available through Tuesday, August 6th, 2024 • Webcast / Presentation / Replay available at https://www.transcat.com/investor-relations 11
Slide 12: Supplemental Information
Supplemental Information 12
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2024 FY 2025 FY 2025 Q1 Q1 Q1 TTM Net Income $ 2,949 $ 4,408 $ 15,106 + Interest Expense / (Income), net 814 (260) (47) + Other Expense / (Income) 64 131 382 + Tax Provision 813 820 4,799 Operating Income $ 4,640 $ 5,099 $ 20,240 + Depreciation & Am
Slide 14: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) FY 2024 Q1 FY 2025 Q1 Service Operating Income $ 3,192 $ 4,092 + Depreciation & Amortization 2,226 2,402 + Transaction Expense 185 146 + Other (Expense) / Income (47) (97) + Noncash Stock Compensation 676 421 Service Adjusted EBITDA $ 6,232 $ 6
Slide 15: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation ($ in thousands) ($ in thousands except per share data) FY 25 Q1 FY 24 Q1 GAAP Net Income $ 4,408 $ 2,949 Add back (deduct) $ 1,831 $ 1,095 Amortization of Intangibles 1,749 1,093 Acquisition deal costs 434 185 Acq Stock Expense 234 182 Acquisition Amortization of