Transcat, Inc. · NASDAQ:TRNS
Transcat — Investor Presentation (May 2025)
29 slides from Transcat's investor presentation, May 2025
Slide 1: Investor Presentation May 2025
NASDAQ: TRNS INVESTOR PRESENTATION May 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement This investor presentation may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. All statements other than statements of historical fact are “forwar
Slide 3: A Leader in the Calibration Service Market
A Leader in the Calibration Service Market, Provider of Cost, Control & Optimization Services and Value-add Distributor of Test, Measurement & Control Instrumentation ✓ Service segment, consisting of high levels of recurring revenue streams, is our primary growth engine ✓ Distribution segment, inclu
Slide 4: Seasoned Executive Management Team
Seasoned Executive Management Team Lee D. Rudow Thomas Barbato Michael W. West President & Chief Executive Officer and Director Chief Financial Officer & Treasurer Chief Operating Officer ▪ 33+ years of experience in calibration, distribution ▪ 20+ years of corporate finance experience in ▪ 15+ year
Slide 5: Company Overview
Company Overview Industry leading provider of mission critical, accredited calibration services and equipment FOUNDED IN 1964 DISTRIBUTOR AND FOOTPRINT AND 28 COMMERCIAL TRANSCAT 60 CONSECUTIVE NASDAQ:TRNS NEXA COST, OVER 59 YEARS PUBLICLY-TRADED RENTAL OF TEST SCALE TO LABS QUARTERS OF YOY UNIVERSI
Slide 6: Building a Services Engine
Building a Services Engine 62 Consecutive Quarters of YOY Service Revenue Growth History Acquires Martin GM% Axiom Calibration 275,000 Accelerating 1964-1982 Rental Growth NEXA Cost, 35% Manufacturing Control and 225,000 Transcat Optimization Heavily Regulated Rentals Industry Focus Lee Rudow 1982-2
Slide 7: Service Segment: Consistent Performance and Growth
Service Segment: Consistent Performance and Growth Fiscal Year (in millions) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Service Revenue $ 36.4 $ 40.7 $ 48.2 $ 51.8 $ 59.2 $ 71.1 $ 77.4 $ 84.0 $ 93.0 $ 101.3 $ 122.0 $ 144.9 $ 169.5 $ 181.4 Service GM% 23.7% 25.3% 26.6% 27.2
Slide 8: Complementary Business Segments
Complementary Business Segments Strong cross-selling opportunities from distribution to calibration services OPPORTUNITY FOR ACCELERATED GROWTH AND MARGIN EXPANSION u e w s en Pr F l o Su ev i p p R sh m Ca or ng ar ts ng yG rri G ro Recu St r o rowth Driver Calibration Distribution / Quality Lead G
Slide 9: Competitive Landscape and Differentiators
Competitive Landscape and Differentiators Calibration Industry – Industry Attributes Competitive Landscape Driven by Recurring Service Growing Service Regulation and Revenue Streams Market 5 National Players High Cost of Failure Transcat Trescal Tektronics Simco Electronics Applied Technical Service
Slide 10: Strategic, Regulated Vertical Markets
Strategic, Regulated Vertical Markets • Provider of premium, mission critical services to regulated, high cost of failure industries that require long qualification cycles • High switching costs deeply entrench customers on Transcat service platform; high barrier to entry that results in recurring,
Slide 11: Double-Digit Service Growth Drivers
Double-Digit Service Growth Drivers (Leverage NEXA) (Leverage NEXA) Acquisitions Expand Geographic Footprint, Capabilities, Markets 11
Slide 12: 50 Locations Serving the U.S., Canada, Ireland and Puerto Rico
50 Locations Serving the U.S., Canada, Ireland and Puerto Rico Flexible Service Delivery Options: ✓ Client-based lab Montreal ✓ Periodic on-site Ottawa Medical Animal Device Health Medical Bosto Pharma ✓ Mobile Device n Portland Toronto Milford Medical Device Milwaukee Testing Medical Rochester ✓ In
Slide 13: Broad and Diverse Blue Chip Customer Base
Broad and Diverse Blue Chip Customer Base Percentage of Service Revenue * Servicing the Fortune 500 Manufacturers: 4% Other Pharmaceuticals 5% Energy/Utilities Medical Devices: Orthopedics Endoscopy 7% Services/Consumer Goods Surgical Tools 8% Aerospace/Defense Defense Systems Aerospace 16% Industri
Slide 14: Recent Acquisition Drivers
Recent Acquisition Drivers Geographic Increased Leveraged Year Target Capabilities and Infrastructure Expansion Expertise (Bolt-on) FY2025 FY25 FY24 FY2024 FY24 FY24 FY2023 FY23 FY22 FY2022 FY22 FY22 FY21 FY2021 FY21 14
Slide 15: Acquisition and Integration Differentiators
Acquisition and Integration Differentiators Transcat’s Proven Integration Process Drives Consistent Long-Term Value Capture and Returns Diligence and Decision Making Acquirer of Choice Disciplined approach with high emphasis on Sellers consistently chose Transcat, often at a cultural fit lower price
Slide 16: Martin Calibration – Expanding Presence in Upper Midwest
Martin Calibration – Expanding Presence in Upper Midwest ✓ $79 million purchase price; $10 million in Company stock and $69 million in cash ✓ Existing leadership and staff retained ✓ Establishes Transcat presence in the highly coveted Minneapolis area, as well as other locations in the Upper Midwest
Slide 17: Financial Overview
FINANCIAL OVERVIEW Note: Amounts shown in the graphs that follow may be rounded. Therefore, totals shown in the graphs may not be equal to the sum of the segments
Slide 18: FY2025 Revenue
FY2025 Revenue ($ in millions) Service Segment Distribution Segment Consolidated $52.0 $25.1 $77.1 $46.7 11% $24.2 4% $70.9 9% Q4 FY24 Q4 FY25 Q4 FY24 Q4 FY25 Q4 FY24 Q4 FY25 Full Year Consolidated • Consolidated revenue up Q4 9% and FY 7% despite one less week in fiscal 2025 7% $278.4 $259.5 • Serv
Slide 19: FY2025 Gross Profit and Margin
FY2025 Gross Profit and Margin ($ in millions) Service Segment Distribution Segment Consolidated 8% $25.9 13% -3% $24.0 $16.7 $18.8 $7.3 $7.1 35.7% 36.2% 30.3% 28.2% 33.9% 33.6% Q4 FY24 Q4 FY25 Q4 FY24 Q4 FY25 Q4 FY24 Q4 FY25 • Consolidated Gross Profit of $25.9M for Q4 increased 8% Full Year Consol
Slide 20: FY2025 Net Income, Diluted EPS, Adjusted Diluted EPS
FY2025 Net Income, Diluted EPS, Adjusted Diluted EPS* ($ in millions, except EPS) Net Income Diluted EPS Adjusted EPS* $0.66 $0.64 $6.9 $0.77 $4.5 $0.48 Q4 FY24 Q4 FY25 Q4 FY24 Q4 FY25 Q4 FY24 Q4 FY25 Full Year Net Income • Q4 Adjusted EPS of $0.64 vs $0.66 prior year $14.5 $13.6 • Full year Net Inc
Slide 21: FY2025 Adjusted EBITDA and Margin
FY2025 Adjusted EBITDA* and Margin ($ in millions) Service Segment Distribution Segment Consolidated $12.7 $11.7 16% -13% 9% $10.2 $2.9 $8.7 $2.6 18.7% 19.6% 12.2% 10.2% 16.5% 16.5% Q4 FY24 Q4 FY25 Q4 FY24 Q4 FY25 Q4 FY24 Q4 FY25 Full Year Consolidated • Consolidated adjusted EBITDA grew Q4 9% and f
Slide 22: Consolidated Historical Results
Consolidated Historical Results ($ in millions) Revenue Adjusted EBITDA $39.7 $38.6 $278 $260 $231 $30.4 28% $205 35% $26.3 $161 $173 $173 $20.6 $155 $18.4 $110 $144 $17.8 $16.4 65% 65% $14.5 72% 67% $8.3 72% 33% FY 2012 FY FY FY FY FY FY FY FY FY FY 2012 FY FY FY FY FY FY FY FY FY 2017 2018 2019 20
Slide 23: Service Segment Driving Strong Results
Service Segment Driving Strong Results ($ in millions) Service Revenue • Capturing share in highly regulated end $181.4 markets, including life sciences and $169.5 $144.9 Aerospace & Defense $122.0 $101.3 $93.0 • NEXA enterprise asset management $77.4 $84.0 acquired on August 31, 2021 FY FY FY FY FY
Slide 24: Distribution Supports Growth Strategy
Distribution Supports Growth Strategy ($ in millions) Distribution and Rental Sales $97.0 $85.7 $90.0 • Stable performance, which is in line $83.0 with our strategy to drive service $72.1 segment growth FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Distribution Gross Margin % 29.5% 29.7% • Gross margin pe
Slide 25: Operating Free Cash Flow and Capitalization
Operating Free Cash Flow and Cap Table ($ in millions) Operating Free Cash Flow Capitalization Supports Growth Strategy Capitalization Twelve Months Ended Note: Components may not add to totals March 29 March 30 due to rounding 2025 2024 Note: Components may not add to totals March 29 March 30 Cash,
Slide 26: Investor Relations and Analyst Coverage
Investor Relations TRANSCAT, INC Chris Tyson 35 Vantage Point Drive Executive Vice President Rochester, NY 14624 MZ Group - MZ North America 949-491-8235 TRNS@mzgroup.us Analyst Coverage Firm Analyst Craig-Hallum Greg Palm H.C. Wainwright & Co. Scott Buck Northland Capital Markets Ted Jackson Oppenh
Slide 27: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2024 FY 2025 FY 2025 Q4 Q4 Q4 TTM Net Income $ 6,890 $ 4,464 $ 14,515 + Interest Expense / (Income), net (411) 463 (27) + Other Expense / (Income) 11 221 (425) + Tax Provision 2,714 1,792 3,811 Operating Income $ 9,204 $ 6,940 $ 17,874 + Depreciatio
Slide 28: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) FY 2024 Q4 FY 2025 Q4 Service Operating Income $ 8,144 $ 5,976 + Depreciation & Amortization 2,280 3,774 + Transaction Expense (44) 11 + Acquisition Earn-Out Adjustment (2,357) (256) + Other (Expense) / Income (18) (133) + Noncash Stock Compens
Slide 29: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS EBITDA Reconciliation ($ in thousands except per share data) FY 24 Q4 FY 25 Q4 GAAP Net Income $ 6,890 $ 4,464 Add back (deduct) $ (979) $ 1,475 Amortization of Intangibles 1,447 2,906 Acquisition deal costs 81 34 Acq Stock Expense 258 141 Acquisition Amortization of backlog 24