Slide 1: Q1 Financial Results Fiscal 2024
Q1 Financial Results Fiscal 2024 Lee D. Rudow President and CEO Mark A. Doheny Chief Operating Officer Tom L. Barbato Chief Financial Officer 1
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. Forward-looking state
Slide 3: Q1 FY24 Summary
Q1 FY24 Summary Q1 revenue up 11% to $60.6 million Consolidated Gross margin of 30.9%, an improvement of 160 bps from prior year Results Adjusted EBITDA increased 16% from prior year to $8.5 million Q1 Revenue up 18% versus prior year; organic revenue growth of 11% Service Q1 Gross Profit grew 20% a
Slide 4: Revenue
Revenue ($ in millions) Distribution Segment Consolidated Service Segment 0% +11% $60.6 +18% $20.8 $20.7 $54.7 $39.9 $33.9 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 Consolidated revenue up 11% on strong Service segment performance Service revenue growth of 18% with strong organic growth of
Slide 5: Gross Profit and Margin
Gross Profit and Margin ($ in millions) Distribution Segment Consolidated Service Segment $18.7 $13.0 $5.7 +17% $5.2 $16.0 $10.8 32.0% 32.5% 25.0% 27.7% 29.3% 30.9% Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Consolidated gross margin in Q1 of 30.9% expanded 160 bps Service gross margin in Q1 of
Slide 6: Net Income, Diluted EPS, Adjusted Diluted EPS
Net Income, Diluted EPS, Adjusted Diluted EPS* ($ in millions, except EPS) Net Income Diluted EPS Adjusted EPS* $3.1 $2.9 $0.40 $0.38 $0.54 $0.52 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 net income of $2.9 million down 4% driven by higher interest expense and taxes Q1 Diluted EPS $0.38 vs.
Slide 7: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) Service Segment Distribution Segment Consolidated $6.2 $2.2 +16% $5.5 $8.5 $1.8 $7.3 16.2% 15.6% 8.8% 10.8% 13.4% 14.0% Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Consolidated adjusted EBITDA up 16% driven by strong performance from both segments Serv
Slide 8: Operating Free Cash Flow
Operating Free Cash Flow ($ in millions) Three Months Ended Note: Components may not add to totals due to June 24, June 25, rounding 2023 2022 Cash Flow has improved versus prior year Net cash provided by operations $7.5 $2.0 Capital expenditures primarily focused on technology, Service capabilities
Slide 9: Balance Sheet Supports Growth Strategy
Balance Sheet Supports Growth Strategy ($ in millions) Capitalization Note: Components may not add to totals June 24, Mar 25, due to rounding 2023 2023 1.50x leverage ratio at quarter-end Cash and cash equivalents $2.1 $1.5 (Total debt to TTM Adjusted EBITDA*) Total debt 48.4 49.1 $37.5M available f
Slide 10: Outlook
Outlook* 2024 Expectations Service segment: For Fiscal 2024, expect Service organic revenue growth to be in the high- single digit to low-double digit range and Service gross margin improvement from prior year. Total Transcat: We expect the fiscal 2024 income tax rate to be in the range of 21% to 23
Slide 11: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13740167 Telephone replay available through Tuesday, Aug 8, 2023 • Webcast / Presentation / Replay available at www.transcat.com/investor-relations 11
Slide 12: Supplemental Information
Supplemental Information 12
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2023 Q1 FY 2024 Q1 FY 2024 Q1 TTM Net Income $ 3,072 $ 2,949 $ 10,565 +Interest Expense 360 814 2,871 +Other (Expense) / Income (204) 64 612 +Tax Provision 376 813 3,236 Operating Income $ 3,604 $ 4,640 $ 17,284 +Depreciation & Amortization 2,641 2,
Slide 14: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) FY 2023 Q1 FY 2024 Q1 Service Operating Income $ 2,532 $ 3,192 +Depreciation & Amortization 2,139 2,226 +Acquisition Related Add-Back 30 185 +Other (Expense) / Income 134 (47) +Noncash Stock Compensation 638 676 Service Adjusted EBITDA $ 5,473
Slide 15: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation ($ in thousands) In addition to reporting Earnings Per Share, a GAAP measure, we present Adjusted Diluted Earnings Per Share (net income plus acquisition related amortization expense, acquisition related transaction and integration expenses, acquisition amortizati