Transcat, Inc. · NASDAQ:TRNS
Transcat — Q4 FY2015 Earnings Presentation
16 slides from Transcat's earnings presentation, May 20, 2015
Slide 1: Q4 and FY 2015 Financial Results
Q4 and FY 2015 Financial Results May 20, 2015 Lee D. Rudow John J. Zimmer President and CEO Sr. Vice President of Finance and CFO
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: Fourth Quarter Execution
Fourth Quarter Execution Record revenue of $32.3 million • Service segment record revenue of $14.5 million, up 7.5% • 24 consecutive quarters of year-over-year Service segment revenue growth • Distribution sales up 5.5% to $17.9 million Strong operating leverage • Service segment operating margin ex
Slide 4: Record FY 2015 Performance
Record FY 2015 Performance Record annual revenue of $123.6 million, up 4.3% • 11th consecutive year of revenue growth • Service segment revenue increased 7.5% to $51.8 million • Distribution sales up 2.1% to $71.8 million Cash generation and bottom-line performance • Consolidated Adjusted EBITDA* of
Slide 5: Top-line Growth
Top-line Growth ($ in millions) 7.9% CAGR* Q4 Service Segment Consolidated – Annual $14.5 $112.3 $118.5 $123.6 $13.5 $110.0 $91.2 $36.4 $40.7 $48.2 $51.8 $31.3 $59.9 $73.6 $71.6 $70.3 $71.8 Q4 FY 2014 Q4 FY 2015 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Service Distribution Q4 Distribution Segment • R
Slide 6: Operating Income and Margin
Operating Income and Margin ($ in millions) 10.2% CAGR* Q4 Service Segment Consolidated – Annual $6.7 $6.8 $2.2 $5.4 $5.9 $4.6 $(0.2) $1.3 $2.4 $1.5 $3.7 $0.2 $4.4 $5.6 $4.6 $4.3 $3.1 1.3% 4.5% 11.2% 15.2% FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Q4 FY 2014 Q4 FY 2015 Service Distribution Q4 Distribu
Slide 7: Contribution Margin and % of Revenue
Contribution Margin* and % of Revenue ($ in millions) 7.1% CAGR** Q4 Service Segment Consolidated – Annual $3.2 $15.8 $2.6 $14.4 $15.2 $13.4 $11.5 $3.2 $5.2 $6.1 $7.5 $3.1 $8.5 $10.2 $9.2 $9.6 $7.7 8.5% 19.1% 11.5% 21.8% Q4 FY 2014 Q4 FY 2015 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Service Distribut
Slide 8: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) 9.7% CAGR** Q4 Service Segment Consolidated – Annual $2.8 $10.3 $10.0 $8.8 $8.9 $2.0 $7.1 $2.0 $3.1 $4.6 $6.1 $1.8 $6.8 $5.8 $5.3 $5.4 $4.1 15.0% 19.5% Q4 FY 2014 Q4 FY 2015 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Service Distribution Q4 Distribution Segme
Slide 9: Bottom-line Performance
Bottom-line Performance ($ in millions) Annual Net Income Quarterly Net Income $3.7 $4.0 $4.0 $1.9 $3.3 $1.7 $2.8 5.9% 3.4% 5.6% 3.1% 3.3% 3.3% % of 3.0% Revenue FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Q4 FY 2014 Q4 FY 2015 $0.37 $0.43 $0.49 $0.54 $0.57 EPS $0.24 $0.27 • 9.6% CAGR for net income (FY
Slide 10: Balance Sheet Supports Growth Strategy
Balance Sheet Supports Growth Strategy ($ in millions) Long Term Debt $12.2 • $16.0 million in availability under $8.0 $7.6 $5.3 revolving credit facility $3.4 • FY 2015 CapEx focused on service capabilities and IT upgrades FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 • FY 2016 CapEx to focus on increasi
Slide 11: Generating Cash to Drive Key Investments
Generating Cash to Drive Key Investments Historical Trailing 12 Month Key Investments and Current Quarter Debt Balance ($ in thousands) $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Capital Spend Acquisi
Slide 12: FY 2016 Outlook
FY 2016 Outlook* • Expect double-digit Service segment revenue growth − Leverage recent acquisitions and investments such as the new website and C3 software − Continue to develop and grow Service pipeline, particularly in the Healthcare space • Expect Distribution sales growth in the low single digi
Slide 13: Upcoming Investor Relations Calendar
Upcoming Investor Relations Calendar Late July Q1 FY 2016 Earnings Sep 9 Annual Meeting 13
Slide 14: Supplemental Information
SUPPLEMENTAL INFORMATION i TRANSCAT Better by every measure
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Service Operating Income (loss) $ 192 $ (175) $ 1,311 $ 2,379 $ 3,693 +Depreciation & Amortization 1,377 1,959 1,740 2,144 2,362 +Other (Expense) / Income - (37) (84) (141) (138) +Noncash Stock Comp 202 263 150 2
Slide 16: Contribution Margin Calculation
Contribution Margin Calculation ($ in thousands) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 SERVICE Service Revenue $ 31,324 $ 36,406 $ 40,655 $ 48,184 $ 51,801 Cost of Revenue 23,392 27,786 30,353 35,359 37,698 Gross Profit $ 7,932 $ 8,620 $ 10,302 $ 12,825 $ 14,103 Gross Margin 25.3% 23.7% 25.3% 26.6