Slide 1: Q3 Financial Results Fiscal 2016
Q3 Financial Results Fiscal 2016 Lee D. Rudow President and CEO John J. Zimmer Senior VP of Finance and CFO Michael J. Tschiderer Vice President — Finance TRANSCAT Trust in every measure
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 that often are identif
Slide 3: Third Quarter Results
TRANSCAT natin sur msss Third Quarter Results Revenue of $30.2 mi * Service segment revenue up 10.5% 27" consecutive quarter of YOY revenue growth in our Service segment * Distribution segment revenue down 12%; half of decline due to soft oil & gas market * Consolidated revenue down 2.9%, 1.4% lower
Slide 4: Top-line
Top-line (Sin milions) Q3 Service Segment $12.6 Q3 FY 2015, $13.9 03 FY 2016 Q3 Distribution Segment $18.4 Q3 FY 2015 $16.2 Q3 FY 2016 TRANSCAT sti very noasure Consolidated — Annual $110.0 $112.3 $118.5 $123.6 = $121.6 FY 2012 FY 2013 FY 2014 FY2015 3 FY 2016 ™ i Service ta Distribution * Total rev
Slide 5: Operating Income and Margin
TRANSCAT tine nase Operating Income and Margin (Sin millions) Q3 Service Segment Consolidated — Annual $0.8 ; ai i = 2 Q3 FY 2015 Q3 FY 2016 FY 2012 FY 2013, FY 2014 FY 2015, a3 a fae lu Service ij Distribution Q3 Distribution Segment ¢ Service operating margin expanded $0.8 $0.9 120 basis points *
Slide 6: Adjusted EBITDA and Margin
TRANSCAT stinewr near Adjusted EBITDA* and Margin (Sin milions) Q3 Service Segment Consolidated — Annual $10.0 $10.3 $11.0 $15 - al : : i ~ 2] 93 FY 2015, 03 FY 2016 FY 2012 FY 2013 FY2014 —-FY2015 «3 FY 2016 T™ ls Service @ Distribution Q3 Distribution Segment * Service segment up 23% quarter over
Slide 7: Bottom-line
TRANSAT ttn over nasire Bottom-line (Sin millions) Annual Net Income Quarterly Net Income $4.5 $3.7 $4.0 $4.0 $1.4 $0.8 % of Revenue Fy2012 -FY2013. «= FY2014 «=—-FY.2015 Q3 FY 2016 Q3 FY 2015 Q3 FY 2016 ™ $0.43 $0.49 $0.54 $0.57 $0.63 ee $0.11 $0.15 | + Third quarter net income increased 31.4% , EP
Slide 8: Balance Sheet Supports Acquisition Strategy
TRANSCAT stinewr near Balance Sheet Supports Acquisition Strategy (Sin milions) Long-term Debt . Revolving credit facility: $19.5 million available FY 2016 CapEx — Increasing lab capabilities — Adding lab capacity FY2012 FY2013 FY2014-FY2015 Q3 FY 2016 — Assets for rental business Financial flexibil
Slide 9: FY 2016 Outlook
FY 2016 Outlook* ¢ Executing strategy despite headwinds ¢ Previously projected double-digit operating income growth; total operating income growth now likely to be flat to modest * Positioned for future growth as industrial markets rebound * Expect double-digit Service segment revenue growth - Stron
Slide 10: Long-term Objectives
Long-term Objectives* * Financial performance (within 5 years) - $175 million to $200 million revenue - Double-digit EBITDA margins * Service segment - Acquisition strategy and organic sales plan to drive double-digit top line growth * Distribution Segment - Moving to more diversified portfolio comb
Slide 11: Upcoming Investor Relations Calendar
TRANSCAT sti very noasure Upcoming Investor Relations Calendar March 14-16 ROTH 28* Annual Conference (Dana Point, CA) Mid May 2016 =Q4 FY 2016 Financial Results
Slide 12: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 13: Adjusted EBITDA Reconciliation
TRANSCAT stinewr near Adjusted EBITDA Reconciliation ($ in thousands) 3 FY 2016 Fy 2012 FY 2013 Fy 2014 FY 2015 ™. Service Operating Income (loss) $ (175) $ 1311 $ 2,379 $3693 $4,483 +Depreciation & Amortization 1,959 1,740 2,144 2,362 2,768 +40ther (Expense) / Income (37) (ea) (141) (138) (61) -4No