Transcat, Inc. · NASDAQ:TRNS
Transcat — Western New York Investors Conference 2003
19 slides from Transcat's conference presentation, Nov 20, 2003
Slide 1: Presenting to Western New York Investors Conference
Transcat, Inc. Presenting to Western New York Investors Conference November 20, 2003
Slide 2: Transcat, Inc. Company Overview
Transcat, Inc. Leading global distributor of professional grade test, measurement and calibration instruments and an accredited provider of calibration and repair services, primarily to the process, life science and manufacturing industries.
Slide 3: Safe Harbor Statement
Transcat, Inc. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995 This contains forward-looking statements, which are subject to various risks and uncertainties. The Company's actual results could differ from these anticipated in such forward-looking statements as a r
Slide 4: Why Invest?
Transcat, Inc. Why Invest? Emerging from financial and organizational restructuring. Establishing a profitable business model and process to manage it. Working the sales and marketing fundamentals of growth: Planning for product growth - low single digits; stable gross profit margins. Planning for c
Slide 5: History
Transcat, Inc. History Founded in 1964 in Rochester, New York, IPO in 1968. Started Transcat catalog in 1981 and added calibration and repair services in 1989. Acquired EIL in 1997 with $25 million in debt and nearly doubled revenues. Transcat / EIL integration problem - lost 30% of revenue in first
Slide 6: History
Transcat, Inc. History New CEO and CFO join company in March / April 2002. Changed corporate name to Transcat consistent with core catalog and calibration businesses. Refinanced remaining debt, bankers forgive $2 million debt in exchange for 500,000 warrants @ $1.50 completed in November 2002. Reduc
Slide 7: History
Transcat, Inc. History 1997 1998 1999 2000 2001 2002 2003 Sales 47,311 78,484 69,745 79,969 76,881 66,782 57,181 Net Earnings 2,060 998 1,049 (2,490) 513 (6,631) 1,757* Debt 6,600 27,109 28,367 29,393 25,204 9,913 6,582 Cash Provided by Operations 1,561 2,852 4,642 293 5,425 3,544 937 Goodwill 5,948
Slide 8: Business Today (Fiscal 2003)
Transcat, Inc. Business Today (Fiscal 2003 4/02 - 3/03) Distributed Products Calibration Sales - US / Canada - International - Total $34,600 3,800 $38,400 $18,800 0 $18,800 Key Product or Service Process calibrators, deadweight testers, temperature devices, multimeters, oscilloscopes Process calibra
Slide 9: Distributed Products Market
Transcat, Inc. Distributed Products Market Overall $1 Billion + Growth Rate 1 - 5% Typical Customer Maintenance Engineer / Technician Tanscat Position 30% share of $50 million process calibrator market - - <2% share of $1 billion market for oscilloscopes, digital multimeters, portable temperature de
Slide 10: Calibration Markets
Transcat, Inc. Calibration Markets Military Market Commercial Outsourcing Market Commercial Non-Outsourcing Market 0.27 0.43 0.3 Total $1.4 Billion Commercially Outsourced Market 43% Internally Provided Market 30% Military Market 27%
Slide 11: Calibration
Transcat, Inc. Calibration The nine U.S. labs cover a potential market that is 83% of the total market. Lab Total Available Business Transcat's Market Share Boston 5% 3.4% Rochester 13% 0.9% Philadelphia 20% 1.9% San Fran - LA 17% 0.7% Houston 20% 0.7% Saint Louis 3% 2.6% Charlotte 3% 4.8% Dayton 12
Slide 12: Calibration Sector Penetration
Transcat Inc. Calibration Sector (,000) Transcat Sales in FY03 Est. Sector Market Size Penetration Aerospace $ 182 $ 6,351 2.9% Automotive 414 7,349 5.6% Communications 2,267 128,151 1.8% Life Science 4,065 152,366 2.7% Manufacturing 3,570 293,717 1.2% Process 5,850 217,793 2.7% Service (Engineering
Slide 13: Strategies
Transcat, Inc. Strategies Product Target Calibration Customers Offer best and most current test, calibration and measurement equipment and application assistance Constantly prospect to add catalog customers Calibration Target companies that value quality (ISO, 17025, Etc.) Target product customers P
Slide 14: Transcat, Inc. Customer Base
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East 20.4 27.4 90 20.4 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 Fortune 500 Global 500 All Others 0.25 0.09 0.66 Fortune 500 Global 500 All Others 0.31 0.05 0.64 Calibration Sales FY03 Product Sales FY03 Transcat, Inc. Customer Base Global 500 9% Fortune 500 2
Slide 15: Product and Calibration Sales and Gross Profit %
Transcat, Inc. Product and Calibration Sales and Gross Profit % Last Six Quarters
Slide 16: Operating Expenses Compared to Total Sales
Transcat, Inc. Operating Expenses Compared to Total Sales Last Six Quarters
Slide 17: Operating Income - Last Six Quarters
Transcat, Inc. Operating Income - Last Six Quarters
Slide 18: Debt vs. Operating Cash Flow
Transcat, Inc. Debt vs. Operating Cash Flow - Last Six Quarters
Slide 19: Why Invest? Watch Our Progress!
Transcat, Inc. Why Invest? Emerging from financial and organizational restructuring. Establishing a profitable business model and process to manage it. Working the sales and marketing fundamentals of growth: Planning for product growth - low single digits; stable gross profit margins. Planning for c
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