Slide 1: Q2 Financial Results Fiscal 2025
Q2 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: Q2 FY25 Summary
Q2 FY25 Summary Q2 revenue grew 8% vs prior year to $67.8M Consolidated Gross profit grew 5% vs prior year to $21.2M Results Net Income of $3.3M or $0.35 per diluted share compared to $0.06 last year Q2 Service revenue of $44.1M grew 6% vs prior year, the 62nd consecutive Service quarter of YoY grow
Slide 4: Revenue
Revenue ($ in millions) Service Segment Distribution Segment Consolidated $23.7 $41.4 6% $44.1 $21.4 11% 8% $67.8 $62.8 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 Consolidated revenue grew 8% Service total revenue growth of 6% driven by core Calibration Service organic growth of 4%, 9% organ
Slide 5: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Service Segment Distribution Segment Consolidated 4% 10% 5% $21.2 $20.1 $14.1 $14.6 $6.6 $6.0 34.0% 33.1% 28.3% 27.9% 32.0% 31.3% Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Consolidated gross profit of $21.2M increased 5% vs prior year Service gross profi
Slide 6: Net Income, Diluted EPS, Adjusted Diluted EPS*
Net Income, Diluted EPS, Adjusted Diluted EPS* ($ in millions, except EPS) Net Income Diluted EPS Adjusted EPS* $3.3 $0.35 $0.60 $0.52 $0.5 $0.06 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 Net Income of $3.3M grew 614% from prior year (Q2 of last year included a $2.8 million non- cash charge
Slide 7: Adjusted EBITDA* and Margin
Adjusted EBITDA* and Margin ($ in millions) Service Segment Distribution Segment Consolidated $9.3 $8.9 -3% -12% -5% $6.8 $6.6 $2.5 $2.2 16.4% 15.0% 11.8% 9.4% 14.9% 13.1% Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Consolidated adjusted EBITDA down 5% Service segment adjusted EBITDA down 3% neg
Slide 8: Operating Free Cash Flow
Operating Free Cash Flow ($ in millions) Six Months Ended Cash Flow from operations consistent with prior year Note: Components may not add to totals September 28, September 23, due to rounding 2024 2023 Net cash provided by Capital expenditures up $2.2 million year $15.8 $16.0 operations over year
Slide 9: Balance Sheet Supports Growth Strategy
Balance Sheet Supports Growth Strategy ($ in millions) Capitalization Note: Components may not add to totals September 28, September 23, due to rounding 2024 2023 0.08x leverage ratio at quarter-end Cash, cash equivalents, & (Total debt to TTM Adjusted EBITDA*) $23.8 $1.2 marketable securities Total
Slide 10: Outlook*
Outlook* 2025 Expectations Service segment: For Fiscal 2025, expect Service organic revenue growth to be in the mid- single digits when normalized for the extra week in fiscal 2024 and Service gross margin expansion. Total Transcat: We expect the fiscal 2025 income tax rate to be in the range of 21%
Slide 11: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13749365 Telephone replay available through Tuesday, November 5th, 2024 • Webcast / Presentation / Replay available at https://www.transcat.com/investor-relations 11
Slide 12: Supplemental Information
Supplemental Information 12
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2024 FY 2025 FY 2025 Q2 Q2 Q2 TTM Net Income $ 460 $ 3,286 $ 17,932 + Interest Expense / (Income), net 890 (210) (1,147) + Other Expense / (Income) (49) 232 663 + Tax Provision 342 427 4,884 Operating Income $ 1,643 $ 3,735 $ 22,332 + Depreciation &
Slide 14: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) FY 2024 Q2 FY 2025 Q2 Service Operating Income $ 742 $ 3,701 + Depreciation & Amortization 2,325 2,455 + Transaction Expense 76 + Acquisition Earn-Out Adjustment 2,800 + Other (Expense) / Income 29 (164) + Noncash Stock Compensation 826 629 Ser
Slide 15: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation ($ in thousands) ($ in thousands except per share data) FY 25 Q2 FY 24 Q2 GAAP Net Income $ 3,286 $ 460 Add back (deduct) $ 1,541 $ 1,528 Amortization of Intangibles 1,888 1,416 Acquisition deal costs 33 328 Acq Stock Expense 130 274 Acquisition Amortization of ba