Transcat, Inc. · NASDAQ:TRNS
Transcat — Q1 FY2020 Earnings Presentation
13 slides from Transcat's earnings presentation, Jul 24, 2019
Slide 1: Q1 Financial Results Fiscal 2020
Q1 Financial Results Fiscal 2020 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: Q1 2020 Execution
Q1 2020 Execution Record Q1 revenue of $42.4M, up $5.7M or nearly 16% Operating expenses down 20 basis points to 19.1% of sales, including one‐time Consolidated $0.2 million negative impact to operating income from building sale Results Net income increased 20% to $1.7M Diluted earnings per share of
Slide 4: Record Revenue
Record Revenue ($ in millions) 10% Q1 Service Segment Consolidated – Annual CAGR¹ $155.1 $160.9 $166.6 $22.4 $143.9 $122.2 $19.3 $77.4 $84.0 $87.1 $71.1 $59.2 $63.0 $72.8 $77.7 $76.9 $79.5 Q1 FY 2019 Q1 FY 2020 FY 2016 FY 2017 FY 2018 FY 2019 Q1 FY20 TTM Service Distribution Q1 Distribution Segment
Slide 5: Operating Income
Operating Income ($ in millions) 16% Q1 Service Segment Consolidated – Annual CAGR¹ $1.1 $10.2 $10.2 $9.0 $7.9 $0.7 $6.3 $5.2 $4.9 $5.2 $4.8 $4.2 $3.9 $5.0 $5.3 5.5% 3.3% $2.1 $3.2 Q1 FY 2019 Q1 FY 2020 FY 2016 FY 2017 FY 2018 FY 2019 Q1 FY20 TTM Service Distribution Q1 Distribution Segment • Servic
Slide 6: Net Income & Diluted EPS
Net Income & Diluted EPS ($ in millions, except EPS) Annual Quarterly 20% $7.1 $7.4 CAGR¹ $5.9 $4.5 $4.1 $1.7 $1.4 $0.58 $0.64 $0.81 $0.95 $0.99 Diluted EPS $0.19 $0.23 FY 2016 FY 2017 FY 2018 FY 2019 Q1 FY20 Q1 FY 2019 Q1 FY 2020 TTM • Q1 FY20 included a discrete tax benefit due to tax accounting a
Slide 7: Adjusted EBITDA and Margin
Adjusted EBITDA¹ and Margin ($ in millions) 17% Q1 Service Segment CAGR² Consolidated – Annual $2.4 $17.8 $17.9 $2.1 $16.4 $14.5 $10.6 $10.6 $10.3 $10.2 $9.6 $7.5 12.4% 9.6% $6.2 $7.2 $7.6 $3.1 $4.9 Q1 FY 2019 Q1 FY 2020 FY 2016 FY 2017 FY 2018 FY 2019 Q1 FY20 TTM Service Distribution Q1 Distributio
Slide 8: Financial Flexibility Supports Growth Strategy
Financial Flexibility Supports Growth Strategy ($ in millions) Total Debt • $21.7 million available from credit facility as of $27.3 June 29, 2019 $22.9 $21.0 $22.4 $19.1 • 1.22x leverage ratio at quarter‐end (Total debt to TTM Adjusted EBITDA¹) • Q1 CapEx primarily focused on rental assets and cust
Slide 9: FY2020 Outlook – Building our Business for the Long Term
FY2020 Outlook* – Building our Business for the Long Term Service segment: Expect to achieve double‐digit revenue growth and improved productivity Distribution segment: Focus on higher value, higher margin opportunities anticipated to continue to drive gross profit performance, while providing cross
Slide 10: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412‐317‐6671 passcode: 13691912 • Telephone replay available through Wednesday, July 31, 2019 • Webcast / Presentation / Replay available at http://www.transcat.com/investor‐relations/ • Transcript, when available, at http://www.transcat.com/inve
Slide 11: Supplemental Information
Supplemental Information 11
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Q1 FY20 FY 2016 FY 2017 FY 2018 FY 2019 TTM Net Income $ 4,124 $ 4,522 $ 5,922 $ 7,145 $ 7,435 + Interest 247 719 1,018 903 941 + Other Expense / (Income) 48 51 60 91 113 + Tax Provision 1,883 2,642 2,026 2,090 1,673 Operating Income $ 6,302 $ 7,934 $
Slide 13: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) Q1 FY20 FY 2016 FY 2017 FY 2018 FY 2019 TTM Service Operating Income $ 4,155 $ 4,769 $ 5,158 $ 5,202 $ 4,872 +Depreciation & Amortization 3,216 4,660 4,397 4,754 4,785 +Other (Expense) / Income (64) (55) (61) (69) 21 +Noncash Stock Compensation