Transcat, Inc. · NASDAQ:TRNS
Transcat — Q4 FY2020 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 TRANSGAT Trust in every measure
Slide 2: Safe Harbor Statement
TRANSCAT ‘Trust in every measure 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 a
Slide 3: Decisive Action to COVID-19 Pandemic
TRANSCAT tastier messure Decisive Action to COVID-19 Pandemic Health & Safety * Established cross-functional COVID-19 response team * Standardized practices, enhanced safety and hygiene processes * Restricting travel, implemented social distancing and remote working Cost Containment * Leveraging new
Slide 4: Q4 and Full Year 2020 Execution
TRANSCAT tastier messure Q4 and Full Year 2020 Execution Consolidated Results Service Segment Distribution Segment Record revenue: Q4 +2.9% to $45.8M, FY20 +7.6% to $173.1M Operating results reflect positive impact from ongoing investments in people, process and technology Record annual net income o
Slide 5: Acquisition of TTE Laboratories
TRANSCAT tastier messure Acquisition of TTE Laboratories Expands Life Science Offerings : tte laboratories” Metrology-Driven Pipette Calibration raat! Bain 2! = * Source: CBRE 2019 U.S. Life Sciences Cluster Survey $8 million of annual revenue Increased presence in New England region (#1 Life Scienc
Slide 6: Record Revenue
Record Revenue ($ in millions) Q4 Service Segment TRANSCAT tastier messure Consolidated — Annual $24.3 $25.0 g1a3.9 $155.1 $160.9 $122.2 Ane $77.4 .( L] Q4 2019 Q4 2020 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 $20.2 Q4 2019 Q4 2020 "FY. 2016-FY 2020 @ Service © Distribution Service segment: + Organic
Slide 7: Operating Income
TRANSCAT tustin every ‘Measure Operating Income ($ in millions) Q4 Service Segment Consolidated — Annual ys $2.4 $2.6 ag $10.2 $7.9 g $6.3 z $5.2 $4.8 2 $4.2 L 10.0% 10.4% Q4 2019 Q4 2020 FY 2016 FY 2017 FY 2018 FY 2019 B Service —_—_ Distribution Q4 Distribution Segment + Ongoing productivity initi
Slide 8: Net Income & Diluted EPS
TRANSCAT stn ony esse Net Income & Diluted EPS ($ in millions, except EPS) Annual Quarterly $8.1 $7.1 $5.9 4.5 $2.7 ga. $25 $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 * Q4FY20 reflects higher tax rate due to timing of discrete income
Slide 9: Adjusted EBITDA and Margin
TRANSCAT nti sur nese Adjusted EBITDA’ and Margin (Sin millions) Q4 Service Segment Consolidated — Annual $3.9 $3.8 ang $16.4 $10.6 $9.6 $10.2 S715 a 15.6% 15.7% Q42019 Q4 2020 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 ll Service © Distribution Q4 Distribution Segment * Strong cash generation $1.8 $1.
Slide 10: Financial Flexibility Supports Growth Strategy
TRANSCAT tastier messure Financial Flexibility Supports Growth Strategy ($ in millions) Total Debt + $12.3 million available from credit facility as of March 28, 2020 + 1.53x leverage ratio at year-end $27.3 $30.3 (Total debt to TTM Adjusted EBITDA’) $194 $22.9 * Funded net $13.8 million of acquisit
Slide 11: FY 2021 Outlook
TRANSCAT iustin every measure 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
Slide 12: Conference Call and Webcast Playback
TRANSCAT tng ness 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 Transcript, when available, at
Slide 13: Supplemental Information
Supplemental Information TRANSGAT Trust in every measure
Slide 14: Adjusted EBITDA Reconciliation
TRANSCAT tustin every ‘Measure Adjusted EBITDA Reconciliation (Sin thousands) Fy 2016 FY 2017 FY 2018 Fy 2019 FY 2020 Net Income $ 4124 $ 4522 $ 5,922 $ 7,145 $ 8,067 + Interest Expense 207 79 1,018 903 934 + Other Expense / (Income) 48 51 60 a1 186 +Tax Provision 1,883 2,642 2,026 2,090 1,663 Opera
Slide 15: Segment Adjusted EBITDA Reconciliation
TRANSCAT in: ‘in every measure Segment Adjusted EBITDA Reconciliation (Sin thousands) FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Service Operating Income $ 4,155 $ 4,769 $5158 $ 5,202 § 5,672 +Depreciation & Amortization 3,216 4,660 4,397 4,754 4,929 +Other (Expense) / Income (64) (55) (61) (69) (20) +