Transcat, Inc. · NASDAQ:TRNS
Transcat — Q4 FY2018 Earnings Presentation
13 slides from Transcat's earnings presentation, May 23, 2018
Slide 1: Q4 Financial Results Fiscal 2018
Q4 Financial Results Fiscal 2018 Lee D. Rudow President and CEO Michael J. Tschiderer 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: Q4 and Full Fiscal Year 2018 Execution
Q4 and Full Fiscal Year 2018 Execution Record revenue: Q4 up 10% to $42.5 million Record Full year up 8% to 155.1 million Consolidated Annual operating income increased 14% to $9.0 million; operating margin expanded 30 bps to 5.8% Results Record net income of $5.9 million, or $0.81 per diluted share
Slide 4: Record Revenue
Record Revenue ($ in millions) 7% CAGR* Q4 Service Segment Consolidated – Annual $143.9 $155.1 $22.0 $19.5 $118.5 $123.6 $122.2 $71.1 $77.4 $48.2 $51.8 $59.2 $70.3 $71.8 $63.0 $72.8 $77.7 Q4 FY 2017 Q4 FY 2018 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Service Distribution Q4 Distribution Segment • 53
Slide 5: Improved Operating Income and Margin
Improved Operating Income and Margin ($ in millions) 8% Q4 Service Segment Consolidated – Annual CAGR* $2.4 $9.0 $7.9 $2.0 $6.7 $6.8 $6.3 $5.2 $2.4 $4.8 $3.7 $4.2 $4.3 $3.2 $3.9 10.2% 11.0% $3.1 $2.1 Q4 FY 2017 Q4 FY 2018 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Service Distribution Q4 Distribution S
Slide 6: Record Net Income & Diluted EPS
Record Net Income & Diluted EPS ($ in millions, except EPS) Annual Quarterly $5.9 $2.5 $4.5 $4.0 $4.0 $4.1 $1.4 $0.54 $0.57 $0.58 $0.64 $0.81 Diluted EPS $0.20 $0.33 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Q4 FY 2017 Q4 FY 2018 • 10% CAGR for net income (FY 2014 – FY 2018) • Lower effective tax rate
Slide 7: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) 13% CAGR** Q4 Service Segment Consolidated – Annual $3.6 $16.4 $14.5 $3.2 $10.0 $10.3 $10.6 $10.2 $9.6 $4.6 $6.1 $7.5 16.2% 16.6% $5.4 $4.1 $4.9 $6.2 $3.1 Q4 FY 2017 Q4 FY 2018 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Service Distribution Q4 Distribution Se
Slide 8: Financial Flexibility Supports Growth Strategy
Financial Flexibility Supports Growth Strategy ($ in millions) Total Debt • Strong cash generation $27.3 • $21.3 million available from credit facility $22.9 $19.1 as of March 31, 2018 $12.2 • 1.4x leverage ratio at year‐end $7.6 (Total debt to TTM Adjusted EBITDA*) • CapEx focused on rental assets
Slide 9: FY19 Outlook – Building our Business for the Long Term
FY19 Outlook* – Building our Business for the Long Term • Service segment: Value proposition continues to resonate in the market; Expect mid to high single‐digit organic growth and improved productivity • Distribution segment: Optimistic performance will continue • Operational Excellence initiatives
Slide 10: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412‐317‐6671 passcode: 13678786 • Telephone replay available through Wednesday, May 30, 2018 • Webcast / Presentation / Replay available at http://www.transcat.com/investor‐relations/ • Transcript, when available, at http://www.transcat.com/inves
Slide 11: Supplemental Information
Supplemental Information 11
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Net Income $ 3,984 $ 4,026 $ 4,124 $ 4,522 $ 5,922 + Interest 130 234 247 719 1,018 + Other Expense / (Income) 129 111 48 51 60 + Tax Provision 2,462 2,397 1,883 2,642 2,026 Operating Income $ 6,705 $ 6,768 $ 6,3
Slide 13: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Service Operating Income (loss) $ 2,379 $ 3,693 $ 4,155 $ 4,769 $ 5,158 +Depreciation & Amortization 2,144 2,362 3,216 4,660 4,397 +Other (Expense) / Income (141) (138) (64) (55) (61) +Noncash Stock Comp