Transcat, Inc. · NASDAQ:TRNS
Transcat — Shareholder Meeting (September 2013)
25 slides from Transcat's shareholder meeting presentation, Sep 10, 2013
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders September 10, 2013
Slide 2: Annual Meeting of Shareholders
Annual Meeting of Shareholders Lee D. Rudow President and Chief Executive Officer
Slide 3: 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 4: Senior Management Team
Senior Management Team Lee Rudow President and Chief Executive Officer John Zimmer Senior Vice President of Finance and Chief Financial Officer Michael Craig Vice President of Human Resources John Hennessy Vice President of Sales and Marketing Rainer Stellrecht Vice President of Laboratory Operation
Slide 5: Agenda
Agenda FY 2013 in Review Strategy and Outlook FY14 Q1 Update FY14 Board Review Presentation 5
Slide 6: Record Revenue & Operating Income
Record Revenue & Operating Income ($ in millions) Consolidated Revenue Operating Income $110.0 $112.3 $91.2 $5.9 $81.0 $5.4 $75.4 $4.6 $2.7 $2.4 FY2009 FY2010 FY2011 FY2012 FY2013 FY2009 FY2010 FY2011 FY2012 FY2013 Revenue 10.5% CAGR* Operating Income 21.6% CAGR* *CAGR – Compound annual growth r
Slide 7: Strong Cash Generation
Strong Cash Generation ($ in millions) EBITDA* $8.2 $8.6 $6.7 $1.7 Service Segment’s $3.0 CAGR¹ was 97% $1.6 $4.4 $4.2 Achieved an 18% $1.2 consolidated EBITDA $6.5 CAGR¹ $5.1 $5.6 $4.2 $3.0 Strengthened earnings power FY 2009 2 FY 2010 2 FY 2011 2 FY 2012 FY 2013 Distribution Segment Service
Slide 8: Strong Performance
Strong Performance EPS Return on Assets 7.6% 7.4% 7.2% $0.49 23.6% $0.43 5.8% CAGR* $0.37 4.5% $0.21 $0.19 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 *CAGR – Compound annual growth rate (FY2013 / FY2009)^(1/4)-1 8
Slide 9: Service Segment
Service Segment ($ in millions) Revenue Operating Income $40.7 $1.3 $36.4 $31.3 $27.9 $23.9 $0.1 $0.2 $(0.2) $(0.7) FY2009 FY2010 FY2011 FY2012 FY2013 FY2009 FY2010 FY2011 FY2012 FY2013 Service Revenue 14.2% CAGR* *CAGR – Compound annual growth rate (FY2013 / FY2009)^(1/4)-1 9
Slide 10: Distribution Segment
Distribution Segment ($ in millions) Revenue Operating Income $73.6 $71.6 $5.6 $59.9 $4.4 $4.6 $51.5 $53.1 $3.4 $2.3 FY2009 FY2010 FY2011 FY2012 FY2013 FY2009 FY2010 FY2011 FY2012 FY2013 Distribution Revenue 8.6% CAGR* Distribution Operating Income 7.9% CAGR* *CAGR – Compound annual growth rate
Slide 11: Strategy and Outlook
STRATEGY AND OUTLOOK TRANSCAT Better by every measure.
Slide 12: Key Customers
Key Customers Percentage of Service Revenue $40.7 mm* Other, 21% Life Sciences & Pharmaceutical, Chemical, 34% 8% Energy, 16% Industrial, 21% *Revenue and Percentages as of the end of FY2013, March 31, 2013 12
Slide 13: Successful Acquisition Strategy
Successful Acquisition Strategy Cal-Matrix Anacor Metrology Inc. Newark Compliance Jan 2013 CMC Calibration Services Instrument Services July 2012 Services, Inc. Sep 2011 Wind Turbine April 2011 Tools Inc. Jan 2011 ACA Tmetrix Inc. Lab in Canada Nov 2010 Fiscal 2013 United Scale & Engineering Corp.
Slide 14: Unique Service Value Proposition
Unique Service Value Proposition Fully Accredited Calibration Provider with highest Quality in the Industry On Site Services 18 Centers of Excellence High-Demand Disciplines: Electrical Temperature Pressure Dimensional FY14 Board Review Presentation 14
Slide 15: Growth Opportunity: Life Sciences Market
Growth Opportunity: Typical Suite of Services Life Sciences Market Life Science Company 3% 9% 17% 4% • Highly regulated Industry • Quality orientated 67% • Estimated $1.6 billion+ market* Calibration Standards Process Calibration Validation Analytical Pipettes *Source: Frost & Sullivan, North Americ
Slide 16: Distribution Segment: Products and Customer Base
Distribution Segment: Products and Customer Base • 500+ of the Industry’s leading brands • More than 100,000 test, measurement and control instruments • Comprehensive selection of new products Driving demand through integrated marketing: Direct Mail Transcat.com Direct Sales FY14 Board Review Presen
Slide 17: Leveraging our Distribution Segment
Leveraging our Distribution Segment • Uniquely positioned to capitalize on inherent leverage between business segments • Sell more services to distribution customers and more distribution products to service customers • Provide calibrations with new product sale 17
Slide 18: Multi-Faceted Growth Strategy
Multi-Faceted Growth Strategy Strategic Acquisitions Organic Growth Geographic footprint Leveraging business segments Increased capabilities Outsourcing of internal labs Acquired expertise Integrated sales model 18
Slide 19: First Quarter FY14 Results
FIRST QUARTER FY14 RESULTS TRANSCAT Better by every measure.
Slide 20: Quarterly Results: Revenue
Quarterly Results (in millions) Revenue $28.7 $25.1 Q1FY13 Q1FY14 20
Slide 21: Quarterly Results: Gross Profit
Quarterly Results (in millions) Gross Profit $7.2 $6.2 Q1FY13 Q1FY14 21
Slide 22: Quarterly Results: Operating Income
Quarterly Results (in millions) Operating Income $1.2 $0.6 Q1FY13 Q1FY14 22
Slide 23: Annual Meeting of Shareholders
Annual Meeting of Shareholders September 10, 2013
Slide 24: Supplemental Information
SUPPLEMENTAL INFORMATION TRANSCAT Better by every measure.
Slide 25: EBITDA Reconciliation
EBITDA Reconciliation FY09 FY10 FY11 FY12 FY2013 Service Operating Income $ (762) $ 94 $ 192 $ (175) $ 1,311 +Depreciation & Amortization $ 954 $ 1,136 $ 1,377 $ 1,959 $ 1,740 +Other (Expense) / Income - - - $ (37) $ (84) Service EBITDA $ 192 $ 1,230 $ 1,569 $ 1,747 $ 2,967 Distribution Operating In