Sign In  |  Register  |  About Livermore  |  Contact Us

Livermore, CA
September 01, 2020 1:25pm
7-Day Forecast | Traffic
  • Search Hotels in Livermore

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Transcat Reports Third Quarter EBITDA Increase of 20% on 19% Service Revenue Growth and Strong Gross Margin Expansion

  • Service revenue up 19.0%, service organic revenue growth of 12.0%
  • Consolidated gross profit increased 20.3%, consolidated gross margin expanded by 180 basis points
  • Consolidated adjusted EBITDA of $6.6 million, an increase of 20.4%.  EBITDA margin increased 70 basis points

Transcat, Inc. (Nasdaq: TRNS) (“Transcat” or the “Company”), a leading provider of accredited calibration, repair, inspection and laboratory instrument services and value-added distributor of professional grade handheld test, measurement and control instrumentation, today reported financial results for its third quarter ended December 24, 2022 (the “third quarter”) of fiscal year 2023, which ends March 25, 2023 (“fiscal 2023”). Results include the previously reported acquisitions of Cal OpEx Limited (d/b/a NEXA Enterprise Asset Management) (“NEXA”) effective August 31, 2021, Tangent Labs, LLC (“Tangent”) effective December 31, 2021 and Charlton Jeffmont Inc., Raitz Inc. and Toolroom Calibration Inc. (d/b/a Alliance Calibration) (“Alliance”) effective May 31, 2022, e2b Calibration, effective September 27, 2022 and Galium Limited (d/b/a Complete Calibrations), effective September 28, 2022.

“We are pleased with the strong execution of our strategic plan which resulted in 19% Service revenue growth, 12% of which was organic. We expanded, total Gross Margins 180 basis points year over year, expand Service Gross Margins by 30 basis points and grew EBITDA over 20 percent.” commented Lee D. Rudow, President and CEO. “The Transcat Team continues to deliver strong performance over time, which is demonstrated by our consistent revenue and profit growth over the past decade. Demand for our core calibration services remains robust and the NEXA asset management business continues to be a differentiator for Transcat, driving synergies that contributed to double digit organic growth in the 3rd quarter.”

“Our Distribution segment also performed very well in the third quarter with revenue increasing 3.7% and gross margin expanding 370 basis points to 26.2%, driven primarily by higher levels of demand in our high-margin rental business. The industry continues to be impacted by global supply chain challenges, so these results reflect Transcat’s ability to work creatively to deliver excellent results and satisfy our customers’ needs. Demand remains strong, as evidenced by a quarter end backlog of $9.5 million, up 7% year over year.”

Mr. Rudow added, “Acquisitions continue to be an important part of our overall growth strategy and we added e2b Calibration, located in Cleveland, Ohio, to the Transcat family early in the quarter. e2b Calibration is a proven leader in the aviation industry, with particular strength in avionics and we are already starting to see the benefits that comes by leveraging Transcat’s infrastructure and geographic footprint to further accelerate e2b’s growth. We could not be happier with what we have seen in the early stages of this acquisition.”

Third Quarter Fiscal 2023 Review

(Results are compared with the third quarter of the fiscal year ended March 26, 2022 (fiscal 2022))

($ in thousands)

 

 

 

 

 

 

 

 

 

Change

 

 

 

FY23 Q3

 

 

FY22 Q3

 

 

$'s

 

 

 

%

Service Revenue

 

$

35,977

 

 

$

30,237

 

 

$

5,740

 

 

 

19.0

%

Distribution Sales

 

 

21,425

 

 

 

20,665

 

 

 

760

 

 

 

3.7

%

Revenue

 

$

57,402

 

 

$

50,902

 

 

$

6,500

 

 

 

12.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

$

16,400

 

 

$

13,636

 

 

$

2,764

 

 

 

20.3

%

Gross Margin

 

 

28.6

%

 

 

26.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

$

3,163

 

 

$

2,361

 

 

$

802

 

 

 

34.0

%

Operating Margin

 

 

5.5

%

 

 

4.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

1,601

 

 

$

1,629

 

 

$

(28

)

 

 

(1.7

)%

Net Margin

 

 

2.8

%

 

 

3.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

 

$

6,585

 

 

$

5,466

 

 

$

1,119

 

 

 

20.5

%

Adjusted EBITDA* Margin

 

 

11.5

%

 

 

10.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

0.21

 

 

$

0.21

 

 

$

-

 

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Diluted EPS*

 

$

0.35

 

 

$

0.36

 

 

$

(0.01

)

 

 

(2.8

)%

*See Note 1 on page 5 for a description of these non-GAAP financial measures and pages 10 and 11 for the reconciliation tables.

Consolidated revenue was $57.4 million, an increase of 12.8%. Consolidated gross profit was $16.4 million, an increase of $2.8 million, or 20.3%, while gross margin expanded 180 basis points due to improvements in both operating segments. Operating expenses were $13.2 million, an increase of $2.0 million, or 17.4%, driven by incremental expenses from acquired businesses (including stock expense), increased intangibles amortization expense, and higher incentive-based employee costs due to higher sales. Adjusted EBITDA was $6.6 million which represented an increase of $1.1 million or 20.5%. Net income per diluted share was consistent at $0.21 and adjusted diluted earnings per share was $0.35 versus $0.36 last year.

Service segment delivers strong third quarter results

Represents the accredited calibration, repair, inspection and laboratory instrument services business (62.7% of total revenue for the third quarter of fiscal 2023).

($ in thousand)

 

 

 

 

 

 

 

 

 

Change

 

 

 

FY23 Q3

 

 

FY22 Q3

 

 

$'s

 

 

 

%

Service Segment Revenue

 

$

35,977

 

 

$

30,237

 

 

$

5,740

 

 

 

19.0

%

Gross Profit

 

$

10,793

 

 

$

8,983

 

 

$

1,810

 

 

 

20.1

%

Gross Margin

 

 

30.0

%

 

 

29.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

$

1,836

 

 

$

1,661

 

 

$

175

 

 

 

10.5

%

Operating Margin

 

 

5.1

%

 

 

5.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

 

$

4,562

 

 

$

4,088

 

 

$

474

 

 

 

11.6

%

Adjusted EBITDA* Margin

 

 

12.7

%

 

 

13.5

%

 

 

 

 

 

 

 

 

*See Note 1 on page 5 for a description of this non-GAAP financial measure and page 10 for the Adjusted EBITDA Reconciliation table.

Service segment revenue was $36.0 million, an increase of $5.7 million or 19.0% and included $2.1 million of incremental revenue from acquisitions. Organic revenue growth was 12.0% and was driven by strong end market demand and continued market share gains. The segment gross margin increased 30 basis points from prior year primarily due to improved productivity offset by increased start-up costs from new client-based lab implementations.

Distribution segment shows continued margin improvement

Represents the sale and rental of new and used professional grade handheld test, measurement and control instrumentation (37.3% of total revenue for the third quarter of fiscal 2023).

($ in thousands)

 

 

 

 

 

 

 

 

 

Change

 

 

 

FY23 Q3

 

 

FY22 Q3

 

 

$'s

 

 

 

%

Distribution Segment Sales

 

$

21,425

 

 

$

20,665

 

 

$

760

 

 

 

3.7

%

Gross Profit

 

$

5,607

 

 

$

4,653

 

 

$

954

 

 

 

20.5

%

Gross Margin

 

 

26.2

%

 

 

22.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

$

1,327

 

 

$

700

 

 

$

627

 

 

 

89.6

%

Operating Margin

 

 

6.2

%

 

 

3.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

 

$

2,023

 

 

$

1,378

 

 

$

645

 

 

 

46.8

%

Adjusted EBITDA* Margin

 

 

9.4

%

 

 

6.7

%

 

 

 

 

 

 

 

 

*See Note 1 on page 5 for a description of this non-GAAP financial measure and page 10 for the Adjusted EBITDA Reconciliation table.

Distribution sales were $21.4 million, an increase of 3.7% on improved end market demand and strength in our Rentals business. Distribution segment gross margin was 26.2%, an increase of 370 basis points due to a favorable sales mix driven by strength in the Rentals business.

Nine Month Review

(Results are compared with the first nine months of fiscal 2022)

Total revenue was $168.5 million, an increase of $19.4 million or 13.0%. Consolidated gross profit was $49.2 million, up $7.4 million, or 17.8%, and gross margin expanded to 29.2% or 120 basis points. Consolidated operating expenses were $38.8 million, an increase of $6.7 million, or 20.8%, driven by incremental expenses from acquired businesses, (including stock-based compensation expense), increased intangibles amortization expense, and investments in technology and our employee base to support future growth. As a result, consolidated operating income was $10.4 million compared with $9.6 million in last fiscal year’s period, an increase of 7.9%.

Adjusted EBITDA was $21.4 million which represented an increase of $2.8 million or 14.8%. Net income per diluted share decreased to $0.92 from $1.10 and adjusted diluted earnings per share was $1.33 versus $1.48 last year. The effective tax rate was 18.8% compared to 7.9% in the prior year, which benefited significantly from share-based payments and stock option activity. The increase in the tax rate had an unfavorable impact of $0.12 per diluted earnings per share and adjusted diluted earnings per share when compared to the prior year.

Balance Sheet and Cash Flow Overview

At December 24, 2022, the Company had $38.8 million available for borrowing under its secured revolving credit facility. Total debt of $49.2 million was up $0.7 million from fiscal 2022 year-end due to the acquisitions of Alliance, Complete Calibration and e2b during the current fiscal year. The Company’s leverage ratio, as defined in the credit agreement, was 1.66 at December 24, 2022, compared with 1.74 at March 26, 2022.

Outlook

Mr. Rudow concluded, “we are pleased with the impressive growth across all of our business channels including double-digit organic Service growth in our fiscal third quarter. We expect our unique value proposition to continue to drive a sustainable competitive advantage in the highly regulated markets that we serve, particularly the Life Science and Aerospace and Defense markets.

We are confident our work around differentiation, which includes Nexa’s unique service tracks, data analytic capabilities and consulting platform, will foster continued consistent organic revenue growth. Driven by recurring revenue streams and high levels of regulation, we expect our Service segment to outperform through various economic cycles.

Our acquisition pipeline is very active. Acquisitions, which have generated compelling returns throughout the fiscal year, will continue to be an important component of Service growth. In addition, in both the quarter and year ahead, we expect organic Service revenue growth to remain in the high-single digit range. We also expect gross margin improvement to continue as a by-product of both growth and successful execution of various ongoing productivity enhancement programs.”

Transcat expects its income tax rate to range between 21% and 23% in fiscal 2023. This estimate includes Federal, various state, Canadian and Irish income taxes and reflects the discrete tax accounting associated with share-based payment awards.

Webcast and Conference Call

Transcat will host a conference call and webcast on Tuesday, January 31, 2023 at 11:00 a.m. ET. Management will review the financial and operating results for the second quarter, as well as the Company’s strategy and outlook. A question and answer session will follow the formal discussion. The review will be accompanied by a slide presentation, which will be available at www.transcat.com/investor-relations. The conference call can be accessed by calling (201) 689-8471. Alternatively, the webcast can be monitored at www.transcat.com/investor-relations.

A telephonic replay will be available from 2:00 p.m. ET on the day of the call through Tuesday, February 7, 2023. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13735773, access the webcast replay at www.transcat.com/investor-relations, where a transcript will be posted once available.

NOTE 1 Non-GAAP Financial Measures

In addition to reporting net income, a U.S. generally accepted accounting principle (“GAAP”) measure, we present Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, non-cash stock compensation expense, acquisition related transaction expenses, non-cash loss on sale of building and restructuring expense), which is a non-GAAP measure. The Company’s management believes Adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the performance of its core operations from period to period by removing the impact of the capital structure (interest), tangible and intangible asset base (depreciation and amortization), taxes, stock-based compensation expense and other items, which is not always commensurate with the reporting period in which it is included. As such, the Company uses Adjusted EBITDA as a measure of performance when evaluating its business segments and as a basis for planning and forecasting. Adjusted EBITDA is not a measure of financial performance under GAAP and is not calculated through the application of GAAP. As such, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. Adjusted EBITDA, as presented, may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies. See page 10 for the Adjusted EBITDA Reconciliation table.

In addition to reporting Diluted Earnings Per Share, a GAAP measure, we present Adjusted Diluted Earnings Per Share (net income plus acquisition related amortization expense, acquisition related transaction expenses, acquisition related stock-based compensation, acquisition amortization of backlog and restructuring expense), which is a non-GAAP measure. Our management believes Adjusted Diluted Earnings Per Share is an important measure of our operating performance because it provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted Diluted Earnings Per Share is not a measure of financial performance under GAAP and is not calculated through the application of GAAP. As such, it should not be considered as a substitute or alternative for the GAAP measure of Diluted Earnings Per Share and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. Adjusted Diluted Earnings Per Share, as presented, may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies. See page 12 for the Adjusted Diluted EPS Reconciliation table.

ABOUT TRANSCAT

Transcat, Inc. is a leading provider of accredited calibration, reliability, maintenance optimization, quality and compliance, validation, Computerized Maintenance Management System (CMMS), and pipette services. The Company is focused on providing best-in-class services and products to highly regulated industries, particularly the Life Science industry, which includes pharmaceutical, biotechnology, medical device, and other FDA-regulated businesses, as well as aerospace and defense, and energy and utilities. Transcat provides periodic on-site services, mobile calibration services, pickup and delivery, in-house services at its 27 Calibration Service Centers strategically located across the United States, Puerto Rico, Canada, and Ireland. In addition, Transcat operates calibration labs in 21 imbedded customer-site locations. The breadth and depth of measurement parameters addressed by Transcat’s ISO/IEC 17025 scopes of accreditation are believed to be the best in the industry.

Transcat also operates as a leading value-added distributor that markets, sells and rents new and used national and proprietary brand instruments to customers primarily in North America. The Company believes its combined Service and Distribution segment offerings, experience, technical expertise, and integrity create a unique and compelling value proposition for its customers.

Transcat’s strategy is to leverage its strong brand and unique value proposition that includes its comprehensive instrument service capabilities, enterprise asset management, and leading distribution platform to drive organic sales growth. The Company will also look to expand its addressable calibration market through acquisitions and capability investments to further realize the inherent leverage of its business model. More information about Transcat can be found at: Transcat.com.

Safe Harbor Statement

This news release 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 statements are identified by words such as “expects,” “estimates,” “projects,” “anticipates,” “believes,” “could,” “plans,” “aims” and other similar words. All statements addressing operating performance, events or developments that Transcat expects or anticipates will occur in the future, including but not limited to statements relating to anticipated revenue, profit margins, the Company’s response to the coronavirus (“COVID-19”) pandemic, the commercialization of software projects, sales operations, capital expenditures, cash flows, operating income, growth strategy, segment growth, potential acquisitions, integration of acquired businesses, market position, customer preferences, outlook and changes in market conditions in the industries in which Transcat operates are forward-looking statements. Forward-looking statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include those more fully described in Transcat’s Annual Report and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors.” Should one or more of these risks or uncertainties materialize or should any of the Company’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company’s forward-looking statements, which speak only as of the date they are made. Except as required by law, the Company disclaims any obligation to update, correct or publicly announce any revisions to any of the forward-looking statements contained in this news release, whether as the result of new information, future events or otherwise.

FINANCIAL TABLES FOLLOW.

 

TRANSCAT, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts)

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

 

Third Quarter Ended

 

 

Nine Months Ended

 

 

 

December 24,

 

 

December 25,

 

 

December 24,

 

 

December 25,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service Revenue

 

$

35,977

 

 

$

30,237

 

 

$

105,120

 

 

$

87,338

 

Distribution Sales

 

 

21,425

 

 

 

20,665

 

 

 

63,382

 

 

 

61,741

 

Total Revenue

 

 

57,402

 

 

 

50,902

 

 

 

168,502

 

 

 

149,079

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Service Revenue

 

 

25,184

 

 

 

21,254

 

 

 

72,005

 

 

 

59,891

 

Cost of Distribution Sales

 

 

15,818

 

 

 

16,012

 

 

 

47,292

 

 

 

47,421

 

Total Cost of Revenue

 

 

41,002

 

 

 

37,266

 

 

 

119,297

 

 

 

107,312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

16,400

 

 

 

13,636

 

 

 

49,205

 

 

 

41,767

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing and Warehouse Expenses

 

 

6,595

 

 

 

5,051

 

 

 

18,315

 

 

 

15,022

 

General and Administrative Expenses

 

 

6,642

 

 

 

6,224

 

 

 

20,497

 

 

 

17,117

 

Total Operating Expenses

 

 

13,237

 

 

 

11,275

 

 

 

38,812

 

 

 

32,139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

 

3,163

 

 

 

2,361

 

 

 

10,393

 

 

 

9,628

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and Other Expense, net

 

 

1,039

 

 

 

136

 

 

 

1,732

 

 

 

581

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes

 

 

2,124

 

 

 

2,225

 

 

 

8,661

 

 

 

9,047

 

Provision for Income Taxes

 

 

523

 

 

 

596

 

 

 

1,631

 

 

 

715

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

1,601

 

 

$

1,629

 

 

$

7,030

 

 

$

8,332

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share

 

$

0.21

 

 

$

0.22

 

 

$

0.93

 

 

$

1.11

 

Average Shares Outstanding

 

 

7,559

 

 

 

7,519

 

 

 

7,547

 

 

 

7,487

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share

 

$

0.21

 

 

$

0.21

 

 

$

0.92

 

 

$

1.10

 

Average Shares Outstanding

 

 

7,666

 

 

 

7,653

 

 

 

7,644

 

 

 

7,599

 

 

TRANSCAT, INC.

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

 

 

 

(Unaudited)

 

 

(Audited)

 

 

 

December 24,

 

 

March 26,

 

 

 

2022

 

 

2022

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash

 

$

1,593

 

 

$

1,396

 

Accounts Receivable, less allowance for doubtful accounts of $488 and $460 as of December 24, 2022 and March 26, 2022, respectively

 

 

37,702

 

 

 

39,737

 

Other Receivables

 

 

377

 

 

 

558

 

Inventory, net

 

 

16,884

 

 

 

12,712

 

Prepaid Expenses and Other Current Assets

 

 

4,141

 

 

 

5,301

 

Total Current Assets

 

 

60,697

 

 

 

59,704

 

Property and Equipment, net

 

 

28,334

 

 

 

26,439

 

Goodwill

 

 

68,826

 

 

 

65,074

 

Intangible Assets, net

 

 

14,843

 

 

 

14,692

 

Right To Use Assets, net

 

 

14,874

 

 

 

11,026

 

Other Assets

 

 

895

 

 

 

827

 

Total Assets

 

$

188,469

 

 

$

177,762

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts Payable

 

$

13,845

 

 

$

14,171

 

Accrued Compensation and Other Current Liabilities

 

 

9,012

 

 

 

11,378

 

Current Portion of Long-Term Debt

 

 

2,227

 

 

 

2,161

 

Total Current Liabilities

 

 

25,084

 

 

 

27,710

 

Long-Term Debt

 

 

46,941

 

 

 

46,291

 

Deferred Tax Liabilities, net

 

 

6,672

 

 

 

6,724

 

Lease Liabilities

 

 

12,998

 

 

 

9,194

 

Other Liabilities

 

 

1,490

 

 

 

1,667

 

Total Liabilities

 

 

93,185

 

 

 

91,586

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity:

 

 

 

 

 

 

 

 

Common Stock, par value $0.50 per share, 30,000,000 shares authorized; 7,560,420 and 7,529,078 shares issued and outstanding as of December 24, 2022 and March 26, 2022, respectively

 

 

3,780

 

 

 

3,765

 

Capital in Excess of Par Value

 

 

27,123

 

 

 

23,900

 

Accumulated Other Comprehensive Loss

 

 

(1,123

)

 

 

(233

)

Retained Earnings

 

 

65,504

 

 

 

58,744

 

Total Shareholders' Equity

 

 

95,284

 

 

 

86,176

 

Total Liabilities and Shareholders' Equity

 

$

188,469

 

 

$

177,762

 

 

TRANSCAT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

 

 

 

(Unaudited)

 

 

 

Nine Months Ended

 

 

 

December 24,

 

 

December 25,

 

 

 

2022

 

 

2021

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

Net Income

 

$

7,030

 

 

$

8,332

 

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

 

 

 

 

 

 

 

 

Net Loss on Disposal of Property and Equipment

 

 

62

 

 

 

113

 

Deferred Income Taxes

 

 

(52

)

 

 

5

 

Depreciation and Amortization

 

 

8,243

 

 

 

6,899

 

Provision for Accounts Receivable and Inventory Reserves

 

 

174

 

 

 

417

 

Stock-Based Compensation Expense

 

 

2,757

 

 

 

1,681

 

Changes in Assets and Liabilities, net of acquisitions:

 

 

 

 

 

 

 

 

Accounts Receivable and Other Receivables

 

 

1,850

 

 

 

1,185

 

Inventory

 

 

(3,589

)

 

 

(1,794

)

Prepaid Expenses and Other Current Assets

 

 

1,074

 

 

 

(3,280

)

Accounts Payable

 

 

(424

)

 

 

689

 

Accrued Compensation and Other Current Liabilities

 

 

(3,150

)

 

 

(1,470

)

Income Taxes Payable

 

 

-

 

 

 

(399

)

Net Cash Provided by Operating Activities

 

 

13,975

 

 

 

12,378

 

 

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

Purchases of Property and Equipment

 

 

(7,149

)

 

 

(5,861

)

Proceeds from Sale of Property and Equipment

 

 

10

 

 

 

12

 

Business Acquisitions, net of cash acquired

 

 

(8,306

)

 

 

(20,910

)

Net Cash Used in Investing Activities

 

 

(15,445

)

 

 

(26,759

)

 

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

Proceeds from Revolving Credit Facility, net

 

 

2,286

 

 

 

22,760

 

Repayments of Term Loan

 

 

(1,570

)

 

 

(1,565

)

Issuance of Common Stock

 

 

503

 

 

 

1,354

 

Repurchase of Common Stock

 

 

(437

)

 

 

(5,649

)

Net Cash Provided by Financing Activities

 

 

782

 

 

 

16,900

 

 

 

 

 

 

 

 

 

 

Effect of Exchange Rate Changes on Cash

 

 

885

 

 

 

(300

)

 

 

 

 

 

 

 

 

 

Net Increase in Cash

 

 

197

 

 

 

2,219

 

Cash at Beginning of Period

 

 

1,396

 

 

 

560

 

Cash at End of Period

 

$

1,593

 

 

$

2,779

 

 

TRANSCAT, INC.

Adjusted EBITDA Reconciliation Table

(In thousands)

(Unaudited)

 

 

 

Fiscal 2023

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

YTD

 

Net Income

 

$

3,072

 

 

$

2,357

 

 

$

1,601

 

 

 

 

 

 

$

7,030

 

+ Interest Expense

 

 

360

 

 

 

550

 

 

 

726

 

 

 

 

 

 

 

1,636

 

+ Other Expense / (Income)

 

 

(204

)

 

 

(13

)

 

 

313

 

 

 

 

 

 

 

96

 

+ Tax Provision

 

 

376

 

 

 

732

 

 

 

523

 

 

 

 

 

 

 

1,631

 

Operating Income

 

$

3,604

 

 

$

3,626

 

 

$

3,163

 

 

 

 

 

 

$

10,393

 

+ Depreciation & Amortization

 

 

2,641

 

 

 

2,778

 

 

 

2,824

 

 

 

 

 

 

 

8,243

 

+ Transaction Expense

 

 

30

 

 

 

-

 

 

 

96

 

 

 

 

 

 

 

126

 

+ Other (Expense) / Income

 

 

204

 

 

 

13

 

 

 

(313

)

 

 

 

 

 

 

(96

)

+ Noncash Stock Compensation

 

 

828

 

 

 

1,114

 

 

 

815

 

 

 

 

 

 

 

2,757

 

Adjusted EBITDA

 

$

7,307

 

 

$

7,531

 

 

$

6,585

 

 

 

 

 

 

$

21,423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Breakdown

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service Operating Income

 

$

2,532

 

 

$

2,507

 

 

$

1,836

 

 

 

 

 

 

$

6,875

 

+ Depreciation & Amortization

 

 

2,139

 

 

 

2,246

 

 

 

2,268

 

 

 

 

 

 

 

6,653

 

+ Transaction Expense

 

 

30

 

 

 

-

 

 

 

96

 

 

 

 

 

 

 

126

 

+ Other (Expense) / Income

 

 

134

 

 

 

3

 

 

 

(214

)

 

 

 

 

 

 

(77

)

+ Noncash Stock Compensation

 

 

638

 

 

 

793

 

 

 

576

 

 

 

 

 

 

 

2,007

 

Service Adjusted EBITDA

 

$

5,473

 

 

$

5,549

 

 

$

4,562

 

 

$

-

 

 

$

15,584

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution Operating Income

 

$

1,072

 

 

$

1,119

 

 

$

1,327

 

 

 

 

 

 

$

3,518

 

+ Depreciation & Amortization

 

 

502

 

 

 

532

 

 

 

556

 

 

 

 

 

 

 

1,590

 

+ Other (Expense) / Income

 

 

70

 

 

 

10

 

 

 

(99

)

 

 

 

 

 

 

(19

)

+ Noncash Stock Compensation

 

 

190

 

 

 

321

 

 

 

239

 

 

 

 

 

 

 

750

 

Distribution Adjusted EBITDA

 

$

1,834

 

 

$

1,982

 

 

$

2,023

 

 

$

-

 

 

$

5,839

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2022

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

YTD

 

Net Income

 

$

3,688

 

 

$

3,015

 

 

$

1,629

 

 

$

3,048

 

 

$

11,380

 

+ Interest Expense

 

 

189

 

 

 

169

 

 

 

194

 

 

 

258

 

 

$

810

 

+ Other Expense / (Income)

 

 

6

 

 

 

81

 

 

 

(58

)

 

 

114

 

 

$

143

 

+ Tax Provision

 

 

(194

)

 

 

313

 

 

 

596

 

 

 

1,095

 

 

$

1,810

 

Operating Income

 

$

3,689

 

 

$

3,578

 

 

$

2,361

 

 

$

4,515

 

 

$

14,143

 

+ Depreciation & Amortization

 

 

1,990

 

 

 

2,141

 

 

 

2,368

 

 

 

2,578

 

 

$

9,077

 

+ Transaction Expense

 

 

-

 

 

 

821

 

 

 

55

 

 

 

26

 

 

$

902

 

+ Other (Expense) / Income

 

 

(6

)

 

 

(81

)

 

 

58

 

 

 

(114

)

 

$

(143

)

+ Noncash Stock Compensation

 

 

437

 

 

 

620

 

 

 

624

 

 

 

647

 

 

$

2,328

 

Adjusted EBITDA

 

$

6,110

 

 

$

7,079

 

 

$

5,466

 

 

$

7,652

 

 

$

26,307

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Breakdown

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service Operating Income

 

$

2,974

 

 

$

2,647

 

 

$

1,661

 

 

$

3,532

 

 

$

10,814

 

+ Depreciation & Amortization

 

 

1,488

 

 

 

1,634

 

 

 

1,861

 

 

 

2,070

 

 

$

7,053

 

+ Transaction Expense

 

 

-

 

 

 

821

 

 

 

55

 

 

 

26

 

 

$

902

 

+ Other (Expense) / Income

 

 

(2

)

 

 

(56

)

 

 

36

 

 

 

(82

)

 

$

(104

)

+ Noncash Stock Compensation

 

 

261

 

 

 

414

 

 

 

475

 

 

 

482

 

 

$

1,632

 

Service Adjusted EBITDA

 

$

4,721

 

 

$

5,460

 

 

$

4,088

 

 

$

6,028

 

 

$

20,297

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution Operating Income

 

$

715

 

 

$

931

 

 

$

700

 

 

$

983

 

 

$

3,329

 

+ Depreciation & Amortization

 

 

502

 

 

 

507

 

 

 

507

 

 

 

508

 

 

$

2,024

 

+ Other (Expense) / Income

 

 

(4

)

 

 

(25

)

 

 

22

 

 

 

(32

)

 

$

(39

)

+ Noncash Stock Compensation

 

 

176

 

 

 

206

 

 

 

149

 

 

 

165

 

 

$

696

 

Distribution Adjusted EBITDA

 

$

1,389

 

 

$

1,619

 

 

$

1,378

 

 

$

1,624

 

 

$

6,010

 

 

TRANSCAT, INC.

Adjusted Diluted EPS Reconciliation Table

(In Thousands, Except Per Share Amounts)

(Unaudited)

 

 

 

Fiscal 2023

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

YTD

 

Net Income

 

$

3,072

 

 

$

2,357

 

 

$

1,601

 

 

 

 

 

 

$

7,030

 

+ Amortization of Intangible Assets

 

 

1,084

 

 

 

1,147

 

 

 

1,180

 

 

 

 

 

 

 

3,411

 

+ Acquisition Amortization of Backlog

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

-

 

+ Acquisition Deal Costs

 

 

299

 

 

 

239

 

 

 

254

 

 

 

 

 

 

 

792

 

+ Income Tax Effect at 25%

 

 

(346

)

 

 

(346

)

 

 

(359

)

 

 

 

 

 

 

(1,051

)

Adjusted Net Income

 

$

4,109

 

 

$

3,397

 

 

$

2,676

 

 

 

 

 

 

$

10,182

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Diluted Shares Outstanding

 

 

7,629

 

 

 

7,646

 

 

 

7,666

 

 

 

 

 

 

 

7,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share

 

$

0.40

 

 

$

0.31

 

 

$

0.21

 

 

 

 

 

 

$

0.92

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Diluted Earnings Per Share

 

$

0.54

 

 

$

0.44

 

 

$

0.35

 

 

 

 

 

 

$

1.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2022

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

YTD

 

Net Income

 

$

3,688

 

 

$

3,015

 

 

$

1,629

 

 

$

3,048

 

 

$

11,380

 

+ Amortization of Intangible Assets

 

 

620

 

 

 

729

 

 

 

947

 

 

 

1,098

 

 

 

3,394

 

+ Acquisition Amortization of Backlog

 

 

-

 

 

 

100

 

 

 

300

 

 

 

90

 

 

 

490

 

+ Acquisition Deal Costs

 

 

-

 

 

 

900

 

 

 

293

 

 

 

265

 

 

 

1,458

 

+ Income Tax Effect at 25%

 

 

(155

)

 

 

(432

)

 

 

(385

)

 

 

(363

)

 

 

(1,335

)

Adjusted Net Income

 

$

4,153

 

 

$

4,312

 

 

$

2,784

 

 

$

4,138

 

 

$

15,387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Diluted Shares Outstanding

 

 

7,593

 

 

 

7,595

 

 

 

7,653

 

 

 

7,636

 

 

 

7,589

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share

 

$

0.49

 

 

$

0.40

 

 

$

0.21

 

 

$

0.40

 

 

$

1.50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Diluted Earnings Per Share

 

$

0.55

 

 

$

0.57

 

 

$

0.36

 

 

$

0.54

 

 

$

2.03

 

 

TRANSCAT, INC.

Additional Information - Business Segment Data

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Change

 

SERVICE

 

FY 2023 Q3

 

 

FY 2022 Q3

 

 

$'s

 

 

%

 

Service Revenue

 

$

35,977

 

 

$

30,237

 

 

$

5,740

 

 

 

19.0

%

Cost of Revenue

 

 

25,184

 

 

 

21,254

 

 

 

3,930

 

 

 

18.5

%

Gross Profit

 

$

10,793

 

 

$

8,983

 

 

$

1,810

 

 

 

20.1

%

Gross Margin

 

 

30.0

%

 

 

29.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

 

$

4,230

 

 

$

3,007

 

 

$

1,223

 

 

 

40.7

%

General and Administrative Expenses

 

 

4,727

 

 

 

4,315

 

 

 

412

 

 

 

9.5

%

Operating Income

 

$

1,836

 

 

$

1,661

 

 

$

175

 

 

 

10.5

%

% of Revenue

 

 

5.1

%

 

 

5.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

 

DISTRIBUTION

 

FY 2023 Q3

 

 

FY 2022 Q3

 

 

$'s

 

 

%

 

Distribution Sales

 

$

21,425

 

 

$

20,665

 

 

$

760

 

 

 

3.7

%

Cost of Sales

 

 

15,818

 

 

 

16,012

 

 

 

(194

)

 

 

(1.2

)%

Gross Profit

 

$

5,607

 

 

$

4,653

 

 

$

954

 

 

 

20.5

%

Gross Margin

 

 

26.2

%

 

 

22.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

 

$

2,365

 

 

$

2,044

 

 

$

321

 

 

 

15.7

%

General and Administrative Expenses

 

 

1,915

 

 

 

1,909

 

 

 

6

 

 

 

0.3

%

Operating Income

 

$

1,327

 

 

$

700

 

 

$

627

 

 

 

89.6

%

% of Sales

 

 

6.2

%

 

 

3.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

 

TOTAL

 

FY 2023 Q3

 

 

FY 2022 Q3

 

 

$'s

 

 

%

 

Total Revenue

 

$

57,402

 

 

$

50,902

 

 

$

6,500

 

 

 

12.8

%

Total Cost of Revenue

 

 

41,002

 

 

 

37,266

 

 

 

3,736

 

 

 

10.0

%

Gross Profit

 

$

16,400

 

 

$

13,636

 

 

$

2,764

 

 

 

20.3

%

Gross Margin

 

 

28.6

%

 

 

26.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

 

$

6,595

 

 

$

5,051

 

 

$

1,544

 

 

 

30.6

%

General and Administrative Expenses

 

 

6,642

 

 

 

6,224

 

 

 

418

 

 

 

6.7

%

Operating Income

 

$

3,163

 

 

$

2,361

 

 

$

802

 

 

 

34.0

%

% of Revenue

 

 

5.5

%

 

 

4.6

%

 

 

 

 

 

 

 

 

 

TRANSCAT, INC.

Additional Information - Business Segment Data

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

Change

 

 

FY 2023

 

FY 2022

 

 

 

 

 

 

 

SERVICE

YTD

 

YTD

 

$'s

 

%

 

Service Revenue

$

105,120

 

$

87,338

 

$

17,782

 

 

20.4

%

Cost of Revenue

 

72,005

 

 

59,891

 

 

12,114

 

 

20.2

%

Gross Profit

$

33,115

 

$

27,447

 

$

5,668

 

 

20.7

%

Gross Margin

 

31.5

%

 

31.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

11,604

 

$

8,557

 

$

3,047

 

 

35.6

%

General and Administrative Expenses

 

14,636

 

 

11,608

 

 

3,028

 

 

26.1

%

Operating Income

$

6,875

 

$

7,282

 

$

(407

)

 

(5.6

)%

% of Revenue

 

6.5

%

 

8.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

 

 

 

FY 2023

 

 

FY 2022

 

 

 

 

 

 

 

 

 

DISTRIBUTION

 

YTD

 

 

YTD

 

 

$'s

 

 

%

 

Distribution Sales

 

$

63,382

 

 

$

61,741

 

 

$

1,641

 

 

 

2.7

%

Cost of Sales

 

 

47,292

 

 

 

47,421

 

 

 

(129

)

 

 

(0.3

)%

Gross Profit

 

$

16,090

 

 

$

14,320

 

 

$

1,770

 

 

 

12.4

%

Gross Margin

 

 

25.4

%

 

 

23.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

 

$

6,711

 

 

$

6,465

 

 

$

246

 

 

 

3.8

%

General and Administrative Expenses

 

 

5,861

 

 

 

5,509

 

 

 

352

 

 

 

6.4

%

Operating Income

 

$

3,518

 

 

$

2,346

 

 

$

1,172

 

 

 

50.0

%

% of Sales

 

 

5.6

%

 

 

3.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

 

 

 

FY 2023

 

 

FY 2022

 

 

 

 

 

 

 

 

 

TOTAL

 

YTD

 

 

YTD

 

 

$'s

 

 

%

 

Total Revenue

 

$

168,502

 

 

$

149,079

 

 

$

19,423

 

 

 

13.0

%

Total Cost of Revenue

 

 

119,297

 

 

 

107,312

 

 

 

11,985

 

 

 

11.2

%

Gross Profit

 

$

49,205

 

 

$

41,767

 

 

$

7,438

 

 

 

17.8

%

Gross Margin

 

 

29.2

%

 

 

28.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

 

$

18,315

 

 

$

15,022

 

 

$

3,293

 

 

 

21.9

%

General and Administrative Expenses

 

 

20,497

 

 

 

17,117

 

 

 

3,380

 

 

 

19.7

%

Operating Income

 

$

10,393

 

 

$

9,628

 

 

$

765

 

 

 

7.9

%

% of Revenue

 

 

6.2

%

 

 

6.5

%

 

 

 

 

 

 

 

 

 

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Livermore.com & California Media Partners, LLC. All rights reserved.