• Consolidated fourth quarter revenue of $48.8 million up 6.6% from prior year; full year revenue slightly above prior year
  • Service segment fourth quarter organic revenue grew 10% and gross margin expanded 500 basis points to 33.9%
  • Service segment surpassed $100 million in revenue and 30% gross margin milestones for the full year
  • Record full year operating income and operating cash flow of $11.1 million and $23.6 million, respectively

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 fourth quarter and fiscal year ended March 27, 2021 (“fiscal 2021”). Results include the previously reported acquisitions of TTE Laboratories, Inc. (referred to as “pipettes.com”) effective February 21, 2020 and the acquisition of Bio Tek Services, Inc. (“Bio Tek”) effective December 16, 2020.

“Our fourth quarter results were stronger than expected and allowed us to achieve record fourth quarter and full year revenue, operating income and cash flow, a remarkable achievement in the midst of the global COVID-19 pandemic,” commented Lee D. Rudow, President and CEO. “Our Service segment delivered another excellent quarter, growing revenue 15.8% and increasing gross margin by 500 basis points from the prior-year period. We reported double-digit organic revenue growth of 10% as our strategy to capture share in highly-regulated end markets, including Life Sciences, continues to serve us well. Our gross margin improvement was driven by technician productivity, operating leverage on our fixed costs and strong performances from our recent acquisitions.”

“We were encouraged by improvement in our Distribution business, with fourth quarter revenue declining 4.6% to $19.8 million, the best quarterly result of fiscal 2021. Overall, our Service segment performance drove fourth quarter consolidated operating income of $4.5 million, exceeding our expectations and growing 21% from prior year. We also achieved two important Service segment milestones, surpassing $100 million in revenue and 30% gross margin for the full year.”

He added, “We generated cash flow from operations of $23.6 million for the full year, a company record and double the cash we generated in fiscal 2020. We used our cash to pay down debt, fund technology investments and execute our acquisition strategy. In April 2021, we acquired Upstate Metrology, a Rochester, NY-based calibration service provider with approximately $1 million in annual revenue. We plan to leverage our current infrastructure and consolidate the business into our main Rochester lab.”

Fourth Quarter Fiscal 2021 Review (Results compared with the fourth quarter of fiscal 2020)

($ in thousands)

 

 

 

 

Change

 

FY21 Q4

 

FY20 Q4

 

$'s

 

%

Service Revenue

$

28,977

 

 

$

25,016

 

 

$

3,961

 

 

15.8

%

Distribution Sales

 

19,785

 

 

 

20,746

 

 

 

(961

)

 

(4.6

%)

Revenue

$

48,762

 

 

$

45,762

 

 

$

3,000

 

 

6.6

%

Gross Profit

$

13,970

 

 

$

12,053

 

 

$

1,917

 

 

15.9

%

Gross Margin

 

28.6

%

 

 

26.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

$

4,512

 

 

$

3,742

 

 

$

770

 

 

20.6

%

Operating Margin

 

9.3

%

 

 

8.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

3,208

 

 

$

2,493

 

 

$

715

 

 

28.7

%

Net Margin

 

6.6

%

 

 

5.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

$

7,302

 

 

$

5,611

 

 

$

1,691

 

 

30.1

%

Adjusted EBITDA* Margin

 

15.0

%

 

 

12.3

%

 

 

 

 

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

Despite the ongoing impact from the COVID-19 pandemic, consolidated revenue of $48.8 million was up 6.6% year-over-year. Consolidated gross profit increased 15.9% and gross margin improved by 230 basis points on Service segment margin expansion. Operating expenses increased approximately $1.1 million, or 14%, driven by incremental expenses from acquired businesses, investments in technology and $0.3 million of severance expense. The effective tax rate was 23.6% for the quarter compared with 26.6% for the previous fiscal year’s fourth quarter. Net income per diluted share increased 27% to $0.42 from $0.33.

Service segment delivers record quarterly results

Represents the accredited calibration, repair, inspection and laboratory instrument services business (59% of total revenue for the fourth quarter of fiscal 2021).

($ in thousands)

 

 

 

 

Change

 

FY21 Q4

 

FY20 Q4

 

$'s

 

%

 

 

 

 

 

 

 

 

Service Segment Revenue

$

28,977

 

 

$

25,016

 

 

$

3,961

 

15.8

%

Gross Profit

$

9,811

 

 

$

7,236

 

 

$

2,575

 

35.6

%

Gross Margin

 

33.9

%

 

 

28.9

%

 

 

 

 

Operating Income

$

4,379

 

 

$

2,609

 

 

$

1,770

 

67.8

%

Operating Margin

 

15.1

%

 

 

10.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

$

6,276

 

 

$

3,937

 

 

$

2,339

 

59.4

%

Adjusted EBITDA* Margin

 

21.7

%

 

 

15.7

%

 

 

 

 

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

Service segment revenue increased 15.8% to a record $29.0 million and included $1.4 million of incremental revenue from acquisitions. Organic revenue growth was 10.0% and was driven by continued market share gains and an easier comparison over the prior-year quarter, as we began to feel the impact of the COVID-19 pandemic toward the second half of March 2020.

Service segment gross margin expanded 500 basis points and was driven by technician productivity, operating leverage on our fixed costs and accretive acquisition margins.

Distribution segment fourth quarter sales reached highest level of fiscal 2021

Represents the sale and rental of new and used professional grade handheld test, measurement and control instrumentation (41% of total revenue for the fourth quarter of fiscal 2021).

($ in thousands)

 

 

 

 

Change

 

FY21 Q4

 

FY20 Q4

 

$'s

 

%

 

 

 

 

 

 

 

 

Distribution Segment Sales

$

19,785

 

 

$

20,746

 

 

$

(961

)

 

(4.6

%)

Gross Profit

$

4,159

 

 

$

4,817

 

 

$

(658

)

 

(13.7

%)

Gross Margin

 

21.0

%

 

 

23.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

$

133

 

 

$

1,133

 

 

$

(1,000

)

(88.3

%)

Operating Margin

 

0.7

%

 

 

5.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

$

1,026

 

 

$

1,674

 

 

$

(648

)

 

(38.7

%)

Adjusted EBITDA* Margin

 

5.2

%

 

 

8.1

%

 

 

 

 

*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 segment sales continued to be negatively impacted by the lingering effects of the COVID-19 pandemic, however, the business saw sequential improvement from the previous quarter and revenue hit $19.8 million, the highest quarterly total of the year. Rental revenue of $1.4 million was up 11% over the prior-year period. Distribution segment gross profit reflected lower volume from core product sales and reduced co-operative advertising and rebate programs as vendors reduced these programs to lower their costs.

Full-Year Fiscal 2021 Review (Results compared with fiscal 2020)

($ in thousands)

 

 

 

 

Change

 

FY21

 

FY20

 

$'s

 

%

Service Revenue

$

101,274

 

 

$

93,003

 

 

$

8,271

 

 

8.9

%

Distribution Sales

 

72,061

 

 

 

80,096

 

 

 

(8,035

)

 

(10.0

%)

Revenue

$

173,335

 

 

$

173,099

 

 

$

236

 

 

0.1

%

Gross Profit

$

46,118

 

 

$

42,478

 

 

$

3,640

 

 

8.6

%

Gross Margin

 

26.6

%

 

 

24.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

$

11,073

 

 

$

10,850

 

 

$

223

 

 

2.1

%

Operating Margin

 

6.4

%

 

 

6.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

7,791

 

 

$

8,067

 

 

$

(276

)

 

(3.4

%)

Net Margin

 

4.5

%

 

 

4.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

$

20,575

 

 

$

18,407

 

 

$

2,168

 

 

11.8

%

Adjusted EBITDA* Margin

 

11.9

%

 

 

10.6

%

 

 

 

 

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

Consolidated revenue of $173.3 million was up modestly from the prior year. Service Segment revenue reached a record $101.3 million, up nearly 9%, while Distribution revenue declined approximately 10% due to the COVID-19 pandemic.

Consolidated gross margin grew 210 basis points and was driven by the Service gross margin improvement. Total operating expenses increased 10.8% to $35.0 million as the Company continued to invest in technology initiatives and acquisitions. As a result, operating income reached a record $11.1 million, up 2.1% from the prior year.

The effective tax rate for fiscal 2021 was 21.9% compared with 17.1% in the prior fiscal year. The lower tax rate in fiscal 2020 was aided by higher discrete income tax benefits related to share-based awards due to stock option exercise activity. Fiscal year 2021 net income per diluted share was $1.03 compared with $1.08.

Balance Sheet and Cash Flow Overview

Fiscal 2021 net cash provided by operations was $23.6 million and was used to fund capital expenditures of $6.6 million, acquisition payments and debt repayment. The capital investments were focused on technology infrastructure, organic growth opportunities and rental pool assets.

At March 27, 2021, the Company had $31.1 million available for borrowing under its secured revolving credit facility. Total debt of $19.6 million was down $10.7 million from fiscal 2020 year-end. The Company’s leverage ratio, as defined in the credit agreement, was 0.94 at March 27, 2021, compared with 1.53 at fiscal 2020 year-end.

Outlook

Mr. Rudow concluded, “I am incredibly proud of the performance and dedication of the entire Transcat team in the fourth quarter and throughout fiscal 2021 as we navigated the most challenging operating environment in recent history. We enter fiscal 2022 with a strong balance sheet, sustainable Service segment gross margins and an active M&A pipeline. We are confident that our disciplined focus on highly-regulated end markets and our new customer pipeline positions us well for continued strong organic growth.

“For the first quarter of fiscal 2022, we expect Service organic growth to be similar to what we achieved in the fourth quarter of fiscal 2021. We expect improvement in Service gross margin, but not to the same degree we experienced in fiscal 2021, largely due to more difficult technician productivity comparisons and the recent anniversary of our acquisition of pipettes.com, which occurred in February 2020. Distribution is expected to achieve high double-digit growth in the first quarter on modestly improving trends and a prior-year comparison that includes low levels of demand due to the onset of the COVID-19 pandemic. Total operating expenses are expected to be similar to the trailing fourth quarter of 2021.”

Transcat expects its income tax rate to range between 20% and 22% in fiscal 2022. This estimate includes Federal, various state, and Canadian income taxes and reflects discrete tax accounting associated with share-based payment awards.

The Company anticipates total capital expenditures to be approximately $7.5 million to $8.5 million in fiscal 2022, with the majority of the capital expenditures planned for growth-oriented opportunities within both of its operating segments.

Webcast and Conference Call

Transcat will host a conference call and webcast on Wednesday, May 19, 2021 at 11:00 a.m. Eastern Time. Management will review the financial and operating results for the fourth quarter and full fiscal year, 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. Eastern Time on the day of the call through Wednesday, May 26, 2021. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13718348, or 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, restructuring expense, and non-cash loss on sale of building), 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, rather 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 the attached Adjusted EBITDA Reconciliation table below.

ABOUT TRANSCAT

Transcat, Inc. is a leading provider of accredited calibration, repair, inspection and laboratory instrument 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 22 Calibration Service Centers strategically located across the United States, Puerto Rico and Canada, and services at 20 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 the complementary nature of its two operating segments, its comprehensive service capabilities, strong brand, enhanced e-commerce capabilities 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 impact of and the Company’s response to the 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.

The Company plans on timely filing its Annual Report on Form 10-K before the required filing date.

TRANSCAT, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts)

   

Fourth Quarter Ended

Fiscal Year Ended

 

 

(Unaudited)

 

 

 

(Unaudited)

 

 

March 27,

March 28,

March 27,

March 28,

2021

2020

2021

2020

Service Revenue

$

28,977

$

25,016

$

101,274

$

93,003

Distribution Sales

 

19,785

 

20,746

 

72,061

 

80,096

Total Revenue

 

48,762

 

45,762

 

173,335

 

173,099

 

Cost of Service Revenue

 

19,166

 

17,780

 

70,579

 

69,517

Cost of Distribution Sales

 

15,626

 

15,929

 

56,638

 

61,104

Total Cost of Revenue

 

34,792

 

33,709

 

127,217

 

130,621

 

Gross Profit

 

13,970

 

12,053

 

46,118

 

42,478

 

Selling, Marketing and Warehouse Expenses

 

4,703

 

4,819

 

17,743

 

17,985

General and Administrative Expenses

 

4,755

 

3,492

 

17,302

 

13,643

Total Operating Expenses

 

9,458

 

8,311

 

35,045

 

31,628

 

Operating Income

 

4,512

 

3,742

 

11,073

 

10,850

 

Interest and Other Expense, net

 

312

 

344

 

1,091

 

1,120

 

Income Before Income Taxes

 

4,200

 

3,398

 

9,982

 

9,730

Provision for Income Taxes

 

992

 

905

 

2,191

 

1,663

 

Net Income

$

3,208

$

2,493

$

7,791

$

8,067

 

Basic Earnings Per Share

$

0.43

$

0.34

$

1.05

$

1.10

Average Shares Outstanding

 

7,447

 

7,379

 

7,423

 

7,331

 

Diluted Earnings Per Share

$

0.42

$

0.33

$

1.03

$

1.08

Average Shares Outstanding

 

7,611

 

7,569

 

7,548

 

7,487

TRANSCAT, INC.

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

 

(Unaudited)

March 27,

March 28,

2021

2020

ASSETS

Current Assets:

Cash

$

560

 

$

499

 

Accounts Receivable, less allowance for doubtful accounts of $526

and $480 as of March 27, 2021 and March 28, 2020, respectively

 

33,950

 

 

30,952

 

Other Receivables

 

428

 

 

1,132

 

Inventory, net

 

11,636

 

 

14,180

 

Prepaid Expenses and Other Current Assets

 

2,354

 

 

1,697

 

Total Current Assets

 

48,928

 

 

48,460

 

Property and Equipment, net

 

22,203

 

 

20,833

 

Goodwill

 

43,272

 

 

41,540

 

Intangible Assets, net

 

7,513

 

 

7,977

 

Right to Use Asset, net

 

9,392

 

 

8,593

 

Other Assets

 

808

 

 

719

 

Total Assets

$

132,116

 

$

128,122

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:

Accounts Payable

$

12,276

 

$

11,947

 

Accrued Compensation and Other Liabilities

 

10,417

 

 

6,907

 

Income Taxes Payable

 

382

 

 

86

 

Current Portion of Long-Term Debt

 

2,067

 

 

1,982

 

Total Current Liabilities

 

25,142

 

 

20,922

 

Long-Term Debt

 

17,494

 

 

28,362

 

Deferred Tax Liabilities

 

3,201

 

 

3,025

 

Lease Liabilities

 

7,958

 

 

6,832

 

Other Liabilities

 

3,243

 

 

1,894

 

Total Liabilities

 

57,038

 

 

61,035

 

 

Shareholders' Equity:

Common Stock, par value $0.50 per share, 30,000,000 shares authorized:

7,458,251 and 7,381,180 shares issued and outstanding

as of March 27, 2021, and March 28, 2020, respectively

 

3,729

 

 

3,691

 

Capital in Excess of Par Value

 

19,287

 

 

17,929

 

Accumulated Other Comprehensive Loss

 

(451

)

 

(1,010

)

Retained Earnings

 

52,513

 

 

46,477

 

Total Shareholders' Equity

 

75,078

 

 

67,087

 

Total Liabilities and Shareholders' Equity

$

132,116

 

$

128,122

 

TRANSCAT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

     

For Fiscal Years Ended

 

 

 

 

 

(Unaudited)

 

 

March 27,

March 28,

2021

2020

Cash Flows from Operating Activities:

     

 

Net Income

 

 

$

7,791

 

 

 

 

$

8,067

 

Adjustments to Reconcile Net Income to Net Cash Provided

 

     

 

by Operating Activities: Net Loss on Disposal of Property and Equipment

 

136

 

 

460

 

Deferred Income Taxes

 

176

 

 

575

 

Depreciation and Amortization

 

7,580

 

 

6,659

 

Provision for Accounts Receivable and Inventory Reserves

 

636

 

 

371

 

Stock-Based Compensation

 

1,513

 

 

884

 

Changes in Assets and Liabilities:      

 

Accounts Receivable and Other Receivables

 

(1,796

)

 

 

(3,303

)

Inventory

 

2,724

 

 

 

875

 

Prepaid Expenses and Other Assets

 

(725

)

 

 

(467

)

Accounts Payable

 

329

 

 

 

(2,767

)

Accrued Compensation and Other Liabilities

 

4,943

 

 

 

307

 

Income Taxes Payable

 

332

 

 

 

(100

)

Net Cash Provided by Operating Activities

 

23,639

 

 

11,561

 

 

Cash Flows from Investing Activities:

     

 

Purchase of Property and Equipment  

 

(6,617

)

 

 

 

 

(6,579

Proceeds from Sale of Property and Equipment  

 

17

 

 

 

 

 

184

 

Business Acquisitions, net of cash acquired  

 

(3,551

)

 

 

 

 

(12,983

Payment of Contingent Consideration & Holdbacks Related to Business Acquisitions

 

 

-

 

 

 

 

 

(864

Net Cash Used in Investing Activities

 

(10,151

)

 

(20,242

)

 

Cash Flows from Financing Activities:

     

 

Repayment of Revolving Credit Facility, net  

 

(8,801

)

 

 

 

 

11,241

 

Repayments of Term Loan  

 

(1,982

)

 

 

 

 

(1,899

Issuance of Common Stock  

 

1,177

 

 

 

 

 

1,727

 

Repurchase of Common Stock  

 

(3,049

)

 

 

 

 

(2,822

Net Cash Used in Financing Activities

 

(12,655

)

 

8,247

 

 

Effect of Exchange Rate Changes on Cash

 

 

 

(772

)

 

 

 

 

145

 

 

Net Increase (Decrease) in Cash

 

 

 

61

 

 

 

 

 

(289

Cash at Beginning of Period

 

 

 

499

 

 

 

 

 

788

 

Cash at End of Period

 

 

$

560

 

 

 

 

$

499

 

TRANSCAT, INC.

Adjusted EBITDA Reconciliation Table

(Dollars in thousands)

(Unaudited)

         

Fiscal 2021

 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Net Income

$

798

 

 

$

2,024

 

 

$

1,761

 

 

$

3,208

 

 

$

7,791

 

+ Interest Expense

 

224

 

 

 

233

 

 

 

203

 

 

 

190

 

 

 

850

 

+ Other Expense / (Income)

 

19

 

 

 

84

 

 

 

16

 

 

 

122

 

 

 

241

 

+ Tax Provision

 

(77

)

 

 

737

 

 

 

539

 

 

 

992

 

 

 

2,191

 

Operating Income

$

964

 

 

$

3,078

 

 

$

2,519

 

 

$

4,512

 

 

$

11,073

 

+ Depreciation & Amortization

 

1,871

 

 

 

1,864

 

 

 

1,861

 

 

 

1,984

 

 

 

7,580

 

 

+ Restructuring Expense

 

360

 

 

 

-

 

 

 

-

 

 

 

290

 

 

 

650

 

+ Other (Expense) / Income

 

(19

)

 

 

(85

)

 

 

(15

)

 

 

(122

)

 

 

(241

)

+ Noncash Stock Compensation

 

312

 

 

 

366

 

 

 

197

 

 

 

638

 

 

 

1,513

 

Adjusted EBITDA

$

3,488

 

 

$

5,223

 

 

$

4,562

 

 

$

7,302

 

 

$

20,575

 

         

Segment Breakdown

                 

Service Operating Income

$

1,129

 

 

$

2,977

 

 

$

1,956

 

 

$

4,379

 

 

$

10,441

 

+ Depreciation & Amortization

 

1,394

 

 

 

1,359

 

 

 

1,372

 

 

 

1,472

 

 

 

5,597

 

 

+ Restructuring Expense

 

193

 

 

 

-

 

 

 

-

 

 

 

156

 

 

 

349

 

+ Other (Expense) / Income

 

(15

)

 

 

(57

)

 

 

(8

)

 

 

(82

)

 

 

(162

)

+ Noncash Stock Compensation

 

162

 

 

 

196

 

 

 

126

 

 

 

351

 

 

 

835

 

Service Adjusted EBITDA

$

2,863

 

 

$

4,475

 

 

$

3,446

 

 

$

6,276

 

 

$

17,060

 

         

Distribution Operating Income

$

(165

)

 

$

101

 

 

$

563

 

 

$

133

 

 

$

632

 

+ Depreciation & Amortization

 

477

 

 

 

505

 

 

 

489

 

 

 

512

 

 

 

1,983

 

 

+ Restructuring Expense

 

167

 

 

 

-

 

 

 

-

 

 

 

134

 

 

 

301

 

+ Other (Expense) / Income

 

(4

)

 

 

(28

)

 

 

(7

)

 

 

(40

)

 

 

(79

)

+ Noncash Stock Compensation

 

150

 

 

 

170

 

 

 

71

 

 

 

287

 

 

 

678

 

Distribution Adjusted EBITDA

$

625

 

 

$

748

 

 

$

1,116

 

 

$

1,026

 

 

$

3,515

 

             

 

Fiscal 2020

             

Q1

 

Q2

 

Q3

 

Q4

 

YTD

Net Income

$

1,718

 

 

$

2,379

 

 

$

1,477

 

 

$

2,493

 

 

$

8,067

 

+ Interest Expense

 

244

 

 

 

243

 

 

 

216

 

 

 

231

 

 

 

934

 

+ Other Expense / (Income)

 

41

 

 

 

54

 

 

 

(22

)

 

 

113

 

 

 

186

 

+ Tax Provision

 

(45

)

 

 

383

 

 

 

420

 

 

 

905

 

 

 

1,663

 

Operating Income

$

1,958

 

 

$

3,059

 

 

$

2,091

 

 

$

3,742

 

 

$

10,850

 

+ Depreciation & Amortization

 

1,622

 

 

 

1,681

 

 

 

1,648

 

 

 

1,707

 

 

 

6,658

 

+ Other (Expense) / Income

 

159

 

 

 

(54

)

 

 

22

 

 

 

(112

)

 

 

15

 

+ Noncash Stock Compensation

 

203

 

 

 

102

 

 

 

305

 

 

 

274

 

 

 

884

 

Adjusted EBITDA

$

3,942

 

 

$

4,788

 

 

$

4,066

 

 

$

5,611

 

 

$

18,407

 

         

Segment Breakdown

                 

Service Operating Income

$

738

 

 

$

1,837

 

 

$

488

 

 

$

2,609

 

 

$

5,672

 

+ Depreciation & Amortization

 

1,220

 

 

 

1,246

 

 

 

1,206

 

 

 

1,257

 

 

 

4,929

 

+ Other (Expense) / Income

 

77

 

 

 

(38

)

 

 

13

 

 

 

(72

)

 

 

(20

)

+ Noncash Stock Compensation

 

112

 

 

 

56

 

 

 

159

 

 

 

143

 

 

 

470

 

Service Adjusted EBITDA

$

2,147

 

 

$

3,101

 

 

$

1,866

 

 

$

3,937

 

 

$

11,051

 

         

Distribution Operating Income

$

1,220

 

 

$

1,222

 

 

$

1,603

 

 

$

1,133

 

 

$

5,178

 

+ Depreciation & Amortization

 

401

 

 

 

436

 

 

 

442

 

 

 

450

 

 

 

1,729

 

+ Other (Expense) / Income

 

83

 

 

 

(17

)

 

 

9

 

 

 

(40

)

 

 

35

 

+ Noncash Stock Compensation

 

91

 

 

 

46

 

 

 

146

 

 

 

131

 

 

 

414

 

Distribution Adjusted EBITDA

$

1,795

 

 

$

1,687

 

 

$

2,200

 

 

$

1,674

 

 

$

7,356

 

TRANSCAT, INC.

Additional Information - Business Segment Data

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

Change

SERVICE

FY 2021 Q4

 

FY 2020 Q4

 

$'s

 

%

 

 

 

 

 

 

 

Service Revenue

$

28,977

 

 

$

25,016

 

 

$

3,961

 

 

15.8

%

Cost of Revenue

 

19,166

 

 

 

17,780

 

 

 

1,386

 

 

7.8

%

Gross Profit

$

9,811

 

 

$

7,236

 

 

$

2,575

 

 

35.6

%

Gross Margin

 

33.9

%

 

 

28.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

2,639

 

 

$

2,563

 

 

$

76

 

 

3.0

%

General and Administrative Expenses

 

2,793

 

 

 

2,064

 

 

 

729

 

 

35.3

%

Operating Income

$

4,379

 

 

$

2,609

 

 

$

1,770

 

 

67.8

%

% of Revenue

 

15.1

%

 

 

10.4

%

 

 

 

 

 

 

Change

DISTRIBUTION

FY 2021 Q4

 

FY 2020 Q4

$'s

%

Distribution Sales

$

19,785

 

 

$

20,746

 

 

$

(961

)

 

(4.6

%)

Cost of Sales

 

15,626

 

 

 

15,929

 

 

 

(303

)

 

(1.9

%)

Gross Profit

$

4,159

 

 

$

4,817

 

 

$

(658

)

 

(13.7

%)

Gross Margin

 

21.0

%

 

 

23.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

2,064

 

 

$

2,256

 

 

$

(192

)

 

(8.5

%)

General and Administrative Expenses

 

1,962

 

 

 

1,428

 

 

 

534

 

 

37.4

%

Operating Income

$

133

 

 

$

1,133

 

 

$

(1,000

)

 

(88.3

%)

% of Sales

 

0.7

%

 

 

5.5

%

 

 

 

 

 

 

Change

TOTAL

FY 2021 Q4

 

FY 2020 Q4

$'s

%

 

Total Revenue

$

48,762

 

 

$

45,762

 

 

$

3,000

 

 

6.6

%

Total Cost of Revenue

 

34,792

 

 

 

33,709

 

 

 

1,083

 

 

3.2

%

Gross Profit

$

13,970

 

 

$

12,053

 

 

$

1,917

 

 

15.9

%

Gross Margin

 

28.6

%

 

 

26.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

4,703

 

 

$

4,819

 

 

$

(116

)

 

(2.4

%)

General and Administrative Expenses

 

4,755

 

 

 

3,492

 

 

 

1,263

 

 

36.2

%

Operating Income

$

4,512

 

 

$

3,742

 

 

$

770

 

 

20.6

%

% of Revenue

 

9.3

%

 

 

8.2

%

 

 

 

 

TRANSCAT, INC.

Additional Information - Business Segment Data

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

Change

SERVICE

FY 2021 YTD

 

FY 2020 YTD

 

$'s

 

%

 

 

 

 

 

 

 

 

Service Revenue

$

101,274

 

 

$

93,003

 

 

$

8,271

 

 

8.9

%

Cost of Revenue

 

70,579

 

 

 

69,517

 

 

 

1,062

 

 

1.5

%

Gross Profit

$

30,695

 

 

$

23,486

 

 

$

7,209

 

 

30.7

%

Gross Margin

 

30.3

%

 

 

25.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

9,941

 

 

$

9,507

 

 

$

434

 

 

4.6

%

General and Administrative Expenses

 

10,313

 

 

 

8,307

 

 

 

2,006

 

 

24.1

%

Operating Income

$

10,441

 

 

$

5,672

 

 

$

4,769

 

 

84.1

%

% of Revenue

 

10.3

%

 

 

6.1

%

 

 

 

 

 

 

 

 

 

 

Change

DISTRIBUTION

FY 2021 YTD

 

FY 2020 YTD

 

$'s

 

%

Distribution Sales

$

72,061

 

 

$

80,096

 

 

$

8,035

)

 

(10.0

%)

Cost of Sales

 

56,638

 

 

 

61,104

 

 

 

(4,466

)

 

(7.3

%)

Gross Profit

$

15,423

 

 

$

18,992

 

 

$

(3,569

)

 

(18.8

%)

Gross Margin

 

21.4

%

 

 

23.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

7,802

 

 

$

8,478

 

 

$

(676

)

 

(8.0

%)

General and Administrative Expenses

 

6,989

 

 

 

5,336

 

 

 

1,653

 

 

31.0

%

Operating Income

$

632

 

 

$

5,178

 

 

$

(4,546

)

 

(88.3

%)

% of Sales

 

0.9

%

 

 

6.5

%

 

 

 

 

 

 

 

 

 

 

Change

TOTAL

FY 2021 YTD

 

FY 2020 YTD

 

$'s

 

%

 

 

 

 

 

 

 

 

Total Revenue

$

173,335

 

 

$

173,099

 

 

$

236

 

 

0.1

%

Total Cost of Revenue

 

127,217

 

 

 

130,621

 

 

 

(3,404

)

 

(2.6

%)

Gross Profit

$

46,118

 

 

$

42,478

 

 

$

3,640

 

 

8.6

%

Gross Margin

 

26.6

%

 

 

24.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

17,743

 

 

$

17,985

 

 

$

(242

)

 

(1.3

%)

General and Administrative Expenses

 

17,302

 

 

 

13,643

 

 

 

3,659

 

 

26.8

%

Operating Income

$

11,073

 

 

$

10,850

 

 

$

223

 

 

2.1

%

% of Revenue

 

6.4

%

 

 

6.3

%

 

 

 

 

 

Mark A. Doheny, Chief Financial Officer Phone: (585) 563-5766 Email: mark.doheny@transcat.com

Deborah K. Pawlowski, Investor Relations Phone: (716) 843-3908 Email: dpawlowski@keiadvisors.com

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