Transcat, Inc. · NASDAQ:TRNS
Transcat — Q4 FY2017 Earnings Presentation
13 slides from Transcat's earnings presentation, May 17, 2017
Slide 1: Q4 Financial Results Fiscal 2017
Q4 Financial Results Fiscal 2017 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: Fourth Quarter and Full Fiscal 2017 Execution
Fourth Quarter and Full Fiscal 2017 Execution Record revenue: Q4 up 17% to $38.5 million Record Full year up 18% to 143.9 million Consolidated Annual operating income increased 26% to $7.9 million; margin expanded 30 bps Results Record net income of $4.5 million, or $0.64 per diluted share High sing
Slide 4: Record Revenue
Record Revenue ($ in millions) 6% Q4 Service Segment Consolidated – Annual CAGR* $19.5 $143.9 $17.6 $112.3 $118.5 $123.6 $122.2 $71.1 $40.7 $48.2 $51.8 $59.2 $71.6 $70.3 $71.8 $63.0 $72.8 Q4 FY 2016 Q4 FY 2017 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Service Distribution Q4 Distribution Segment • Sol
Slide 5: Operating Income and Margin
Operating Income and Margin ($ in millions) 8% Q4 Service Segment Consolidated – Annual CAGR* $2.0 $7.9 $1.9 $6.7 $6.8 $6.3 $5.9 $1.3 $2.4 $4.8 $3.7 $4.2 $4.6 $4.3 10.7% 10.2% $3.1 $2.1 $3.2 Q4 FY 2016 Q4 FY 2017 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Service Distribution Q4 Distribution Segment •
Slide 6: Adjusted EBITDA* and Margin
Adjusted EBITDA* and Margin ($ in millions) 13% Q4 Service Segment Consolidated – Annual CAGR* $3.2 $14.5 $3.0 $10.0 $10.3 $10.6 $8.9 $9.6 $3.1 $4.6 $6.1 $7.5 16.9% 16.2% $5.8 $5.4 $4.1 $4.9 $3.1 Q4 FY 2016 Q4 FY 2017 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Service Distribution Q4 Distribution Segme
Slide 7: Net Income & Diluted EPS
Net Income & Diluted EPS ($ in millions) Annual Quarterly $4.5 $4.0 $4.0 $4.1 $3.7 $1.6 $1.4 $0.49 $0.54 $0.57 $0.58 $0.64 $0.22 $0.20 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Q4 FY 2016 Q4 FY 2017 • 5% CAGR for net income (FY 2013 – FY 2017) • Higher effective tax rate in Q4 17 due to changes in the
Slide 8: Financial Flexibility Supports Growth Strategy
Financial Flexibility Supports Growth Strategy ($ in millions) Total Debt • Strong cash generation $27.3 • $11.4 million available from credit $19.1 facility as of March 25, 2017 $12.2 • Total debt to TTM Adjusted EBITDA 1.88x $8.0 $7.6 at year-end FY17 • FY17 CapEx: Assets for growing rental FY 201
Slide 9: FY 2018 Outlook -- Strong Momentum
FY 2018 Outlook* -- Strong Momentum • Continued emphasis on improving Operational Excellence − Improve customer experiences, expand organic growth potential, and strengthen our acquisition integration process • Fortifying structure with technology, people and processes • Expect solid organic growth
Slide 10: Upcoming Investor Relations Calendar
Upcoming Investor Relations Calendar May 18 IDEAS East Coast Conference (Boston) June 15-16 Marcum MicroCap Conference (NYC) July 24 Q1 FY18 Earnings Release (call on 7/25) Aug 30-31 IDEAS Midwest Conference (Chicago) Sept 13 Annual Meeting 10
Slide 11: Supplemental Information
Supplemental Information 11
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Net Income $ 3,704 $ 3,984 $ 4,026 $ 4,124 $ 4,522 + Interest 117 130 234 247 719 + Other Expense / (Income) 111 129 111 48 51 + Tax Provision 2,014 2,462 2,397 1,883 2,642 Operating Income $ 5,946 $ 6,705 $ 6,76
Slide 13: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Service Operating Income (loss) $ 1,311 $ 2,379 $ 3,693 $ 4,155 $ 4,769 +Depreciation & Amortization 1,740 2,144 2,362 3,216 4,660 +Other (Expense) / Income (84) (141) (138) (64) (55) +Noncash Stock Comp