Slide 1: Q3 Financial Results Fiscal 2023
Q3 Financial Results Fiscal 2023 Lee D. Rudow President and CEO Mark A. Doheny Chief Operating Officer Tom L. Barbato Chief Financial Officer TRANSGAT Trust in every measure
Slide 2: Safe Harbor Statement
TRANSCAT ost enn mesne 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
Slide 3: Q3 FY23 Summary
TRANSCAT ‘rx con nes Q3 FY23 Summary Revenue grew 13% from prior year Consolidated Gross margin expanded 180 basis points from PY to 28.6% Results Adjusted EBITDA increased 20% from prior year to $6.6 mi Net Income of $1.6 million or $0.21 per diluted share Revenue up 19%; 12% organic growth Service
Slide 4: Revenue
TRANSCAT extn oney nesses Revenue (5 in milions) Service Segment Distribution Segment on sso wor Dia 93 FY22 3 FY23 a3 FY22 03 FY23 Consolidated Consolidated revenue up 13% on Service segment strength and modest growth in Distribution ne $574 Total Service revenue growth of 19%; organic growth was s
Slide 5: Gross Profit and Margin
Gross Profit and Margin (5 in milions) Service Segment $108 : J 03 FY22 3 FY23 Consolidated gross margin expanded 180 basis points Service gross margin of 30.0% expanded 30 basis points primarily due to improved productivity and gains in automation Distribution gross margin expanded 370 basis points
Slide 6: Net Income, Diluted EPS, Adjusted Diluted EPS
TRANSCAT sts none Net Income, Diluted EPS, Adjusted Diluted EPS* (5 in lions, except EPS) Net Income Diluted EPS Adjusted EPS* $16 $16 $0.2 $0.21 $0.36 $0.85 a3 Fv22 3 Fv23, 3 FY22 03 Fv23 03 FY22 a3 #23, Q3 FY23 net income of $1.6 million down (1.7%) from PY and Diluted EPS $0.21 vs. $0.21 in prior
Slide 7: Adjusted EBITDA and Margin
TRANSCAT tnstin ory esse Adjusted EBITDA* and Margin (Sinton) Service Segment 6 saa es as rrez as Fras Consolidated adjusted EBITDA of $6.6 million up 20% Service segment adjusted EBITDA of $4.6 million up 12% from PY Distribution adjusted EBITDA up 47% from PY Distribution Segment $2.0 $14 6.7% 94%
Slide 8: Operating Free Cash Flow
TRANSCAT oxo nous Operating Free Cash Flow (Sin milions) 9 J aMonthsended | Ended Ce eR a ae Ses Cash flow improved versus prior year Net cash provided by operations $14.0 $12.4 Capital expenditures primarily focused on technology, Service capabilities/expansion and rental pool assets and in line wi
Slide 9: Balance Sheet Supports Growth Strategy
TRANSCAT ‘rx con nes Balance Sheet Supports Growth Strategy (Sin milions) alization "Note: Components may net dd 0 tot veto rounding ech sak eencRTS s14 1.66x leverage ratio at quarter-end i . aarene 4248s (Total debt to TTM Adjusted EBITDA*) Total net debt $47.6 $47.4 $37.8M available from credit f
Slide 10: Outlook
Outlook* TRANSOAT nse Near Term Expectations Service segment: In the year ahead, we expect Service organic revenue growth to continue to be in the high-single digit range and expect gross margin improvement. Total Transcat: We expect the fiscal 2023 income tax rate to be in the range of 21% to 23% M
Slide 11: Conference Call and Webcast Playback
TRANSCAT ‘rx con nes Conference Call and Webcast Playback * Replay Number: 412-317-6671 passcode: 13735773 Telephone replay available through Tuesday, February 7, 2023 * Webcast / Presentation / Replay available at www.transcat.com/investor-relations "
Slide 12: Supplemental Information
Supplemental Information TRANSGAT Trust in every measure
Slide 13: Adjusted EBITDA Reconciliation
TRANSCAT rust ory nosso Adjusted EBITDA Reconciliation (Sin thousands) FY2022Q3 © FY2023Q3 «FY 2023 } Net Income $ 1629 $ 1,601 $ 10,078 +interest Expense 194 726 1,894 +Other (Expense) / Income (58) 313 210 +Tax Provision 596 523 2,726 lOperating Income $ 2361 $ 3,163 $ 14,908 +Depreciation & Amort
Slide 14: Segment Adjusted EBITDA Reconciliation
TRANSAT stn noee Segment Adjusted EBITDA Reconciliation (Sin thousands) RET RES Service Operating Income 766i 7836 ++Depreciation & Amortization 1,861, 2,268 ++Acquistion Related Add-Back 35 6 +40ther (Expense) / Income 36 (21) +Noncash Stock Compensation 475 576 Service Adjusted EBITDA 3 4088S Asez
Slide 15: Adjusted Diluted EPS Reconciliation
TRANSCAT tnstin ory esse Adjusted Diluted EPS Reconciliation (Sin thousands) GAAP Nat Income (loss) ‘Add back (deduct) ‘Amortization of intangibles Acquisition deal costs ‘Acq Stock Expense Acquisition Amortization of backlog Income Tax Effect at 25% ‘Non-GAAP adjusted net income ‘Average diluted sh