Transcat, Inc. · NASDAQ:TRNS
Transcat — Q4 FY2016 Earnings Presentation
13 slides from Transcat's earnings presentation, May 18, 2016
Slide 1: Q4 Financial Results Fiscal 2016
Q4 Financial Results Fiscal 2016 Lee D. Rudow President and CEO Michael J. Tschiderer 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: Performance Highlights
Performance Highlights Record Q4 and full year Service segment revenue • Up 21% in Q4; 14% in FY16 • 28th consecutive quarter of YOY revenue growth in our Service segment • Service milestone: exceeded Distribution in revenue (53% of Q4) • Consolidated revenue up 1.6% in the quarter, down 1.2% in FY1
Slide 4: Outstanding Year for Acquisitions
Outstanding Year for Acquisitions Strategic opportunities identified and closed • Increased life science business • Expanded calibration services offerings and equipment rental offerings • Regional and national footprint density/expansion Spectrum and Excalibur: largest acquisitions in recent years
Slide 5: Revenue
Revenue ($ in millions) 3% CAGR* Q4 Service Segment Consolidated – Annual $17.6 $14.5 $123.6 $110.0 $112.3 $118.5 $122.2 $36.4 $40.7 $48.2 $51.8 $59.2 $73.6 $71.6 $70.3 $71.8 $63.0 Q4 FY 2015 Q4 FY 2016 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Service Distribution Q4 Distribution Segment • Total annu
Slide 6: Operating Income and Margin
Operating Income and Margin ($ in millions) 4% CAGR* Q4 Service Segment Consolidated – Annual $6.7 $6.8 $6.3 $2.2 $5.4 $5.9 $1.9 $1.3 $2.4 $(0.2) $3.7 $4.2 $5.6 $4.6 $4.3 15.2% 10.7% $3.1 $2.1 Q4 FY 2015 Q4 FY 2016 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Service Distribution Q4 Distribution Segment
Slide 7: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) 5% CAGR** Q4 Service Segment Consolidated – Annual $3.0 $10.0 $10.3 $10.6 $2.8 $8.8 $8.9 $2.0 $3.1 $4.6 $6.1 $7.5 $6.8 $5.8 $5.4 19.5% 16.9% $4.1 $3.1 Q4 FY 2015 Q4 FY 2016 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Service Distribution Q4 Distribution Segmen
Slide 8: Net Income
Net Income ($ in millions) Annual Net Income Quarterly Net Income $4.0 $4.0 $4.1 $1.9 $3.7 $3.3 $1.6 3.3% 3.4% 3.3% 3.4% 3.0% % of 5.9% Revenue 4.8% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Q4 FY 2015 Q4 FY 2016 Diluted $0.27 $0.22 $0.43 $0.49 $0.54 $0.57 $0.58 EPS • Fourth quarter net income impacte
Slide 9: Balance Sheet Supports Growth Strategy
Balance Sheet Supports Growth Strategy ($ in millions) Long-term Debt • Financial flexibility – Strong cash generation and $19.1 expanded credit facility $12.2 – Added $10.0 million term note $8.0 $7.6 $3.4 (subsequent to fiscal year-end) – Funded Q1 FY17 Excalibur FY 2012 FY 2013 FY 2014 FY 2015 FY
Slide 10: FY 2017 Outlook
FY 2017 Outlook* • Double-digit Service segment revenue growth − Expect strong organic growth − Achieve sales and costs synergies to drive operating leverage and margin expansion − Remain selective and disciplined in acquisition approach • Stabilize Distribution segment − Still face headwinds − Expa
Slide 11: Upcoming Investor Relations Calendar
Upcoming Investor Relations Calendar Mid June Filing of FY2016 Form 10-K June 22 Midwest Investor Conference (Cleveland, OH) Late July Q1 FY 2017 Financial Results 11
Slide 12: Supplemental Information
SUPPLEMENTAL INFORMATION TRANSCAT Better by every measure
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Service Operating Income (loss) $ (175) $ 1,311 $ 2,379 $ 3,693 $ 4,155 +Depreciation & Amortization 1,959 1,740 2,144 2,362 3,216 +Other (Expense) / Income (37) (84) (141) (138) (64) +Noncash Stock Comp 263 150