Transcat, Inc. · NASDAQ:TRNS
Transcat — Q3 FY2018 Earnings Presentation
13 slides from Transcat's earnings presentation, Jan 30, 2018
Slide 1: Q3 Financial Results Fiscal 2018
Q3 Financial Results Fiscal 2018 Lee D. Rudow President and CEO Michael J. Tschiderer Chief Financial Officer TRANSGAT Trust in every measure
Slide 2: Safe Harbor Statement
TRANSCAT sts vy mess 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: Third Quarter Fiscal 2018 Execution
TRANSCAT sti very measure Third Quarter Fiscal 2018 Execution Consolidated Results Service Segment Distribution Segment Record revenue of $40.5 million, up 7.1% Productivity efforts progressing: gross margin up 40 bps to 24%; operating margin up 40 bps 6.6% Net income of $1.8 million, or $0.25 per d
Slide 4: Revenue
Revenue ($ in millions) Q3 Service Segment TRANSCAT sti very measure Consolidated — Annual $18.8 $143.9 $151.1 $17.5 - $11g5 $123.6 = $122.2 = = Q3 FY 2017 Q3 FY 2018 FY 2014 FY 2015 FY 2016 FY 2017 Q3 FY 2018 TM Q3 Distribution Segment $20.4 $21.7 Q3 FY 2017 Q3 FY 2018 “FY 2014~ Q3FY 2018 TT © Serv
Slide 5: Operating Income and Margin
TRANSCAT ust very measure Operating Income and Margin ($ in millions) Q3 Service Segment Consolidated — Annual * $1.1 ; = Ss Ss s a ia Q3 FY 2017 Q3 FY 2018 FY 2014 FY 2015 FY 2016 FY2017_ Q3FY EvZ018 © Service @ Distribution 3 Distribution Segment Q e * Productivity improvements more than offset so
Slide 6: Net Income & Diluted EPS
TRANSCAT sts vy mess Net Income & Diluted EPS (Sin millions, except EPS) Annual Quarterly $5.0 $4.5 $4.0 $4.0 $4.1 Re $1.3 Diluted EPS = FY2014 - FY2015 = FY2016=FY2017'Q3 FY 2018 Q3 FY 2017 Q3 FY 2018 1™ * US. Tax Cuts and Jobs Act signed on December 22, 2017 right before the end of our third quart
Slide 7: Adjusted EBITDA and Margin
TRANSCAT ‘srstin overy moasure Adjusted EBITDA* and Margin ($ in millions) Q3 Service Segment Consolidated — Annual pe gias $153 $2.1 $2.3 $10.0 $10.3 $10.6 er Bh seekt Q3 FY 2017 a3 FY 2018 FY2014 FY 2015 FY2016 = FY2017. «3 FY 2018 T™ © Service & Distribution oo Dit ibulon Sesment * 22% CAGR for S
Slide 8: Financial Flexibility Supports Growth Strategy
TRANSCAT ‘srstin overy moasure Financial Flexibility Supports Growth Strategy ($ in millions) Total Debt + $18.4 million available from credit facility as of December 23, 2017 $27.3 $26.2 * Total debt to TTM Adjusted EBITDA* 1.7x at - 1 quarter-end a - 2 + YTD FY18 CapEx of $5.1M for rental assets a
Slide 9: FY 2018 Outlook -- Strong Momentum
TRANSCAT ins: ‘in every measure FY 2018 Outlook* -- Strong Momentum Value proposition continues to resonate in the market Expect to finish the fiscal year strong with record revenue Service segment: Expect mid to high single digit organic growth and improved productivity Distribution segment: Optimi
Slide 10: Upcoming Investor Relations Calendar
TRANSCAT ust ovry measure Upcoming Investor Relations Calendar Feb 13-15 1:1 meetings in Milwaukee, Chicago and Boston Mar 12-13 ROTH Conference (Dana Point, CA) Mar 29 Sidoti Spring 20
Slide 11: Supplemental Information
Supplemental Information TRANSGAT Trust in every measure
Slide 12: Adjusted EBITDA Reconciliation
TRANSCAT rusts ny nse Adjusted EBITDA Reconciliation (Sin thousands) Fy 2014 FY 2015 FY 2016 FY2017__Q3 FY18TTM Net Income $ 3,984 $ 4026 $ 4124 $ 4522 $ 4,897 + Interest Expense 130 234 247 79 985 + Other Expense / (Income) 129 a 43 Br 92 +Tax Provision 2,462 2,397 1,883 2,642 2,114 Operating incom
Slide 13: Segment Adjusted EBITDA Reconciliation
TRANSCAT rusts ny nse Segment Adjusted EBITDA Reconciliation (Sin thousands) FY 2014 Fy 2015 FY 2016 FY2017__Q3FY18TTM Service Operating Income $ 2379 $ 3993 $ 4155 $ 4769 $ 4731 + Depreciation & Amortization 2,144 2,362 3,216 4,860 4,461 +Other (Expense) / Income (241) (138) (64) (55) (73) +Noncash