Transcat, Inc. · NASDAQ:TRNS
Transcat — Q4 2020 Earnings Presentation
15 slides from Transcat's earnings presentation, May 20, 2020
Slide 1: Q4 Financial Results Fiscal 2020
Q4 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: Decisive Action to COVID-19 Pandemic
Decisive Action to COVID-19 Pandemic Health & Safety Operations • Established cross-functional COVID-19 response • An essential business supporting critical industries team • All 42 lab locations, distribution and support • Standardized practices, enhanced safety and facilities are operating hygiene
Slide 4: Q4 and Full Year 2020 Execution
Q4 and Full Year 2020 Execution Record revenue: Q4 +2.9% to $45.8M, FY20 +7.6% to $173.1M Operating results reflect positive impact from ongoing investments in people, Consolidated process and technology Results Record annual net income of $8.1M or $1.08 per diluted share Generated $11.6M in cash fr
Slide 5: Acquisition of TTE Laboratories Expands Life Science Offerings
Acquisition of TTE Laboratories Expands Life Science Offerings $8 million of annual revenue Increased presence in New England region (#1 Life Science cluster¹) Adds new Service capabilities, especially in pipettes Attractive sales synergies with core Transcat Life Science offerings Now own
Slide 6: Record Revenue
Record Revenue ($ in millions) 9% Q4 Service Segment Consolidated – Annual CAGR¹ $25.0 $160.9 $173.1 $24.3 $143.9 $155.1 $122.2 $77.4 $84.0 $93.0 $71.1 $59.2 $63.0 $72.8 $77.7 $76.9 $80.1 Q4 2019 Q4 2020 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Service Distribution Q4 Distribution Segment Service seg
Slide 7: Operating Income
Operating Income ($ in millions) 14% Q4 Service Segment Consolidated – Annual CAGR¹ $2.6 $10.2 $10.8 $2.4 $9.0 $7.9 $6.3 $5.2 $5.7 $5.2 $4.8 $4.2 $3.9 $5.0 $5.2 10.0% 10.4% $2.1 $3.2 Q4 2019 Q4 2020 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Service Distribution Q4 Distribution Segment • Ongoing produc
Slide 8: Net Income & Diluted EPS
Net Income & Diluted EPS ($ in millions, except EPS) Annual Quarterly 19% CAGR¹ $8.1 $7.1 $5.9 $4.5 $2.7 $2.5 $4.1 $0.58 $0.64 $0.81 $0.95 $1.08 Diluted EPS $0.35 $0.33 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Q4 2019 Q4 2020 • Q4 FY20 reflects higher tax rate due to timing of discrete income tax ben
Slide 9: Adjusted EBITDA and Margin
Adjusted EBITDA¹ and Margin ($ in millions) 15% CAGR² Q4 Service Segment Consolidated – Annual $3.9 $17.8 $18.4 $3.8 $16.4 $14.5 $10.6 $10.6 $11.1 $10.2 $9.6 $7.5 15.6% 15.7% $4.9 $6.2 $7.2 $7.4 $3.1 Q4 2019 Q4 2020 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Service Distribution Q4 Distribution Segment
Slide 10: Financial Flexibility Supports Growth Strategy
Financial Flexibility Supports Growth Strategy ($ in millions) Total Debt • $12.3 million available from credit facility as of March 28, 2020 • 1.53x leverage ratio at year-end $30.3 (Total debt to TTM Adjusted EBITDA¹) $27.3 $22.9 $21.0 • Funded net $13.8 million of acquisitions $19.1 • CapEx focus
Slide 11: FY 2021 Outlook
FY 2021 Outlook* Near Term: • Believe we are in strong position to navigate this challenging environment • Expect Q1 FY21 to be low point: anticipate being in range of breaking even on consolidated operating income basis in Q1 • We believe highly-regulated Life Science and other critical industries
Slide 12: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13700723 • Telephone replay available through Wednesday, May 27, 2020 • Webcast / Presentation / Replay available at http://www.transcat.com/investor-relations/ • Transcript, when available, at http://www.transcat.com/inves
Slide 13: Supplemental Information
Supplemental Information 13
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Net Income $ 4,124 $ 4,522 $ 5,922 $ 7,145 $ 8,067 + Interest Expense 247 719 1,018 903 934 + Other Expense / (Income) 48 51 60 91 186 + Tax Provision 1,883 2,642 2,026 2,090 1,663 Operating Income $ 6,302 $ 7,93
Slide 15: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Service Operating Income $ 4,155 $ 4,769 $ 5,158 $ 5,202 $ 5,672 +Depreciation & Amortization 3,216 4,660 4,397 4,754 4,929 +Other (Expense) / Income (64) (55) (61) (69) (20) +Noncash Stock Compensation 1