Transcat, Inc. · NASDAQ:TRNS
Transcat — FY2014 Earnings Presentation
12 slides from Transcat's earnings presentation, May 21, 2014
Slide 1: Q4 and FY2014 Financial Results
Q4 and FY2014 Financial Results May 21, 2014 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 subject to risks, uncertainties and assumptions and are identified by words such as “expects,” “estimates,” “projects
Slide 3: Fourth Quarter and Fiscal Year 2014 Execution
Fourth Quarter and Fiscal Year 2014 Execution Strategy Continues to Deliver Strong Results • Continued to execute our strategic plan – Acceleration of growth – Building momentum • Achieved annual revenue growth for 10th consecutive year – Service segment continued double-digit growth, up 19% for the
Slide 4: Record Annual Revenue & Operating Income
Record Annual Revenue & Operating Income Consolidated Revenue Revenue - Quarterly $118.5 $31.1 $30.4 $110.0 $112.3 $91.2 $81.0 $18.9 $16.9 $12.2 $13.5 FY2010 FY2011 FY2012 FY2013 FY2014 Q4 2013 Q4 2014 Operating Income Operating Income - Quarterly $3.0 $2.9 $6.7 $5.4 $5.9 $4.6 $1.7 $1.4 $2.4 $1.3 $1
Slide 5: Strong Contribution Margin
Strong Contribution Margin Contribution Margin* Q4 Service Contribution Margin * $15.8 $14.4 $13.4 $11.5 $2.6 $6.1 $2.4 $3.2 $5.2 $8.6 $3.1 Q4 2013 Q4 2014 $2.5 $10.2 $9.2 $9.6 $8.5 Q4 Distribution Contribution $6.1 Margin * FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 $2.8 Distribution Segment Service S
Slide 6: Strong Cash Generation
Strong Cash Generation Q4 Service Adjusted EBITDA* Adjusted EBITDA* $2.0 $10.0 $1.8 $8.8 $8.9 $7.1 $2.0 $4.6 $3.1 $4.8 $1.8 Q4 2013 Q4 2014 $1.5 $6.8 $5.3 $5.8 $5.4 $3.4 Q4 Distribution Adjusted EBITDA* FY 2010 1 FY 2011 1 FY 2012 FY 2013 FY 2014 $2.0 $1.7 Distribution Segment Service Segment All fi
Slide 7: Strong Performance
Strong Performance Net($ inIncome millions) Q4 Net Income ($ in millions) $4.0 $3.7 $3.3 $1.8 $1.7 $2. 8 3.3%* 3.4%* 3.0%* $1.5 3.1%* 1.8%* FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Q4 FY2013 Q4 FY2014 *=% of sales Q4 EPS 30% EPS $0.54 $0.24 $0.24 CAGR* $0.49 $0.43 $0.37 $0.19 FY 2010 FY 2011 FY 2012
Slide 8: Outlook
Outlook Continue to Execute Strategic Plan • Expect solid performance driven by Service segment growth – Expect to continue double-digit growth trend in Service segment – Distribution segment expected to rebound • Strategic acquisitions will continue play an important role in top-line growth • Servi
Slide 9: Supplemental Information
SUPPLEMENTAL INFORMATION i TRANSCAT Better by every measure.
Slide 10: Critical Mass – Service Inflection Point
Critical Mass – Service Inflection Point Distribution Service Now Inflection Point Cost Volume Volume Moving forward operating income should grow at a faster rate than revenue 10
Slide 11: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Service Operating Income $ 94 $ 192 $ (175) $ 1,311 $ 2,379 +Depreciation & Amortization $ 1,136 $ 1,377 $ 1,959 $ 1,740 $ 2,144 +Other (Expense) / Income - - $ (37) $ (84) $ (141) +Noncash Stock Comp $ 256 $ 202
Slide 12: Contribution Margin
Contribution Margin ($ in thousands) FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 SERVICE Service Revenue $27,918 $31,324 $36,406 $40,655 $48,184 Cost of Service Sold $21,066 $23,392 $27,786 $30,353 $35,359 Gross Profit $6,852 $7,932 $8,620 $10,302 $12,825 Gross Margin 24.5% 25.3% 23.7% 25.3% 26.6% Selli