Transcat, Inc. · NASDAQ:TRNS
Transcat — Q3 FY2020 Earnings Presentation
13 slides from Transcat's earnings presentation, Feb 5, 2020
Slide 1: Q3 Financial Results Fiscal 2020
Q3 Financial Results Fiscal 2020 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: Q3 2020 Execution
Q3 2020 Execution Record Q3 revenue of $43.2M, up $2.3M or 5.7% Consolidated Revenue and profit margins impacted by December 2019 holiday timing Results Net income of $1.5M or $0.20 per diluted share Generated $8.2 million in cash from year-to-date operations, up 13.6% 7.8% revenue growth – all orga
Slide 4: Record Revenue
Record Revenue ($ in millions) 10% Q3 Service Segment Consolidated – Annual CAGR¹ $22.1 $171.8 $20.5 $155.1 $160.9 $143.9 $122.2 $77.4 $84.0 $92.3 $71.1 $59.2 $63.0 $72.8 $77.7 $76.9 $79.5 Q3 FY 2019 Q3 FY 2020 FY 2016 FY 2017 FY 2018 FY 2019 Q3 FY20 TTM Service Distribution Q3 Distribution Segment
Slide 5: Operating Income
Operating Income ($ in millions) 15% Q3 Service Segment Consolidated – Annual CAGR¹ $10.2 $10.7 $0.6 $9.0 $0.5 $7.9 $6.3 $5.2 $5.5 $5.2 $4.8 $4.2 $3.9 $5.0 $5.2 2.8% 2.2% $2.1 $3.2 Q3 FY 2019 Q3 FY 2020 FY 2016 FY 2017 FY 2018 FY 2019 Q3 FY20 TTM Service Distribution Q3 Distribution Segment • Servic
Slide 6: Net Income & Diluted EPS
Net Income & Diluted EPS ($ in millions, except EPS) Quarterly 20% Annual CAGR¹ $8.2 $7.1 $5.9 $4.5 $1.6 $1.5 $4.1 $0.58 $0.64 $0.81 $0.95 $1.09 Diluted EPS $0.21 $0.20 FY 2016 FY 2017 FY 2018 FY 2019 Q3 FY20 Q3 FY 2019 Q3 FY 2020 TTM • Q3 FY20 reflects lower income tax from increased discrete incom
Slide 7: Adjusted EBITDA and Margin
Adjusted EBITDA¹ and Margin ($ in millions) 16% Q3 Service Segment CAGR² Consolidated – Annual $2.0 $18.4 $1.9 $17.8 $16.4 $14.5 $10.6 $10.6 $10.9 $10.2 $9.6 $7.5 9.7% 8.4% $4.9 $6.2 $7.2 $7.5 $3.1 Q3 FY 2019 Q3 FY 2020 FY 2016 FY 2017 FY 2018 FY 2019 Q3 FY20 TTM Service Distribution Q3 Distribution
Slide 8: Financial Flexibility Supports Growth Strategy
Financial Flexibility Supports Growth Strategy ($ in millions) Total Debt • $23.4 million available from credit facility as of $27.3 December 28, 2019 $22.9 $21.0 $19.1 $19.7 • 1.07x leverage ratio at quarter-end (Total debt to TTM Adjusted EBITDA¹) • YTD CapEx focused on technology infrastructure t
Slide 9: FY2020 Outlook – Building our Business for the Long Term
FY2020 Outlook* – Building our Business for the Long Term January and early February show bounce back from slow December 2019 On track to achieve record results in fiscal 2020 We believe added technical capacity supports growth strategies Distribution segment focused on higher value, higher margin o
Slide 10: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13697525 • Telephone replay available through Wednesday, February 12, 2020 • Webcast / Presentation / Replay available at http://www.transcat.com/investor-relations/ • Transcript, when available, at http://www.transcat.com/
Slide 11: Supplemental Information
Supplemental Information 11
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Q3 FY20 FY 2016 FY 2017 FY 2018 FY 2019 TTM Net Income $ 4,124 $ 4,522 $ 5,922 $ 7,145 $ 8,234 + Interest Expense 247 719 1,018 903 953 + Other Expense / (Income) 48 51 60 91 102 + Tax Provision 1,883 2,642 2,026 2,090 1,453 Operating Income $ 6,302 $
Slide 13: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) Q3 FY20 FY 2016 FY 2017 FY 2018 FY 2019 TTM Service Operating Income $ 4,155 $ 4,769 $ 5,158 $ 5,202 $ 5,494 +Depreciation & Amortization 3,216 4,660 4,397 4,754 4,873 +Other (Expense) / Income (64) (55) (61) (69) 32 +Noncash Stock Compensation