Transcat, Inc. · NASDAQ:TRNS
Transcat — Q3 FY2015 Earnings Presentation
16 slides from Transcat's earnings presentation, Jan 27, 2015
Slide 1: Q3 FY 2015 Financial Results
Q3 FY 2015 Financial Results January 27, 2015 Lee D. Rudow John J. Zimmer President and CEO Sr. Vice President of Finance and CFO
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 that often are identif
Slide 3: Long-Term Objectives
Long-Term Objectives Leverage our strong foundation to drive future growth Service segment • Double-digit revenue growth through organic and acquisition strategies • Take market share particularly in the Healthcare space • Grow pipeline of larger, multi-year enterprise opportunities • Continue margi
Slide 4: Third Quarter and FY 2015 Execution
Third Quarter and FY 2015 Execution Record third quarter revenue of $31.1 million • Service segment revenue of $12.6 million, up 9.4% • 23 consecutive quarters of year-over-year Service segment revenue growth • Distribution sales down 2.9% Strong operating leverage • Service segment operating income
Slide 5: Top-line Growth
Top-line Growth ($ in millions) 8.0% CAGR* Q3 Service Segment Consolidated – Annual $12.6 $112.3 $118.5 $121.7 $11.5 $110.0 $91.2 $36.4 $40.7 $48.2 $50.8 $31.3 $59.9 $73.6 $71.6 $70.3 $70.9 Q3 FY 2014 Q3 FY 2015 FY 2011 FY 2012 FY 2013 FY 2014 Q3 FY 15 TTM Service Distribution Q3 Distribution Segmen
Slide 6: Operating Income and Margin
Operating Income and Margin ($ in millions) 10.1% CAGR* Q3 Service Segment Consolidated – Annual $6.7 $6.6 $0.6 $5.4 $5.9 $4.6 $(0.2) $1.3 $2.4 $3.0 $0.2 $0.2 $4.4 $5.6 $4.6 $4.3 $3.6 1.3% 4.5% Q3 FY 2014 Q3 FY 2015 FY 2011 FY 2012 FY 2013 FY 2014 Q3 FY 15 TTM Service Distribution Q3 Distribution Se
Slide 7: Contribution Margin and % of Revenue
Contribution Margin* and % of Revenue ($ in millions) 7.9% CAGR** Q3 Service Segment Consolidated – Annual $1.5 $15.8 $15.3 $13.4 $14.4 $1.0 $11.5 $3.2 $5.2 $6.1 $6.9 $3.1 $8.5 $10.2 $9.2 $9.6 $8.4 8.5% 11.5% Q3 FY 2014 Q3 FY 2015 FY 2011 FY 2012 FY 2013 FY 2014 Q3 FY 15 TTM Service Distribution Q3
Slide 8: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) 9.6% CAGR** Q3 Service Segment Consolidated – Annual $1.2 $10.0 $10.0 $8.8 $8.9 $7.1 $0.7 $2.0 $3.1 $4.6 $5.3 $1.8 $6.8 $5.8 $5.3 $5.4 $4.7 6.4% 9.9% Q3 FY 2014 Q3 FY 2015 FY 2011 FY 2012 FY 2013 FY 2014 Q3 FY 15 TTM Service Distribution Q3 Distribution Se
Slide 9: Bottom-line Performance
Bottom-line Performance ($ in millions) Annual Quarterly $3.7 $4.0 $3.8 $3.3 $0.8 $0.8 $2.8 3.4% 3.3% 3.1% 3.1% 3.0% % of 2.6% 2.6% Revenue FY 2011 FY 2012 FY 2013 FY 2014 Q3 FY 15 Q3 FY 2014 Q3 FY 2015 TTM $0.37 $0.43 $0.49 $0.54 $0.53 EPS $0.11 $0.11 • 8.8% CAGR for net income (FY 2011-Q3 FY 2015
Slide 10: Balance Sheet Supports Acquisition Strategy
Balance Sheet Supports Acquisition Strategy ($ in millions) Long Term Debt $14.8 • $12.7 million in availability under $8.0 $7.6 revolving credit facility $5.3 $3.4 • CapEx focused on service capabilities and IT FY 2011 FY 2012 FY 2013 FY 2014 Q3 FY 2015 • Financial flexibility to facilitate acquisi
Slide 11: Generating Cash to Drive Key Investments
Generating Cash to Drive Key Investments Historical Trailing 12 Month Key Investments and Current Quarter Debt Balance ($ in thousands) $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Capital Spend Acquisitions
Slide 12: FY 2015 Outlook
FY 2015 Outlook Continue to Execute Strategic Plan • Grow operating income at a faster rate than revenue • Capitalize on the organic opportunities in the Service space – Augmented growth from Ulrich acquisition • Continue to capture Distribution market share and leverage leading position to drive Se
Slide 13: Upcoming Investor Relations Calendar
Upcoming Investor Relations Calendar February 9-11 1:1s West Coast Late May Q4 FY 2015 Earnings 13
Slide 14: Supplemental Information
SUPPLEMENTAL INFORMATION i TRANSCAT Better by every measure
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Q3 FY 15 FY 2011 FY 2012 FY 2013 FY 2014 TTM Service Operating Income (loss) $ 192 $ (175) $ 1,311 $ 2,379 $ 3,001 +Depreciation & Amortization 1,377 1,959 1,740 2,144 2,982 +Other (Expense) / Income - (37) (84) (141) (186) +Noncash Stock Comp 202 263
Slide 16: Contribution Margin Calculation
Contribution Margin Calculation ($ in thousands) Q3 FY 15 FY 2011 FY 2012 FY 2013 FY 2014 SERVICE TTM Service Revenue $ 31,324 $ 36,406 $ 40,655 $ 48,184 $ 50,793 Cost of Revenue 23,392 27,786 30,353 35,359 37,263 Gross Profit $ 7,932 $ 8,620 $ 10,302 $ 12,825 $ 13,530 Gross Margin 25.3% 23.7% 25.3%