- Service gross margin expanded 250 basis points driven by 9.1%
Service organic growth
- Distribution gross margin expands 530 basis points to 31.5% on
strength of Rentals
- Consolidated adjusted EBITDA grew 38.5% with margins expanding
250 basis points
- Operating Cash Flow of $26.9M year-to-date
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 23, 2023 (the “third quarter”) of fiscal
year 2024, which ends March 30, 2024 (“fiscal 2024”). Results
include the previously reported acquisitions of TIC-MS, Inc.
("TIC-MS") effective March 27, 2023, SteriQual, Inc. ("SteriQual"),
effective July 12, 2023 and Axiom Test Equipment, Inc. (“Axiom”),
effective August 8, 2023.
“We are extremely pleased with our third quarter results as
Service gross margin expanded 250 basis points versus prior year
driven by strong organic Service revenue growth and increased
productivity throughout our network of labs. Adjusted EBITDA growth
of 39% for the third quarter reflects our ability to leverage
organic Service revenue growth and the successful integration of
acquired companies. Consolidated revenue was up 14% with gross
margin expansion of 350 basis points year over year driven by our
differentiated value proposition, excellent performance in the
high-margin rental business, and execution of our automation and
process improvement initiatives. Service segment revenue grew 15%
as demand in our highly regulated end markets, including life
sciences, remained strong and our recent acquisitions continued to
perform at a high level” commented Lee D. Rudow, President and CEO.
“The Transcat Team continues to deliver strong revenue growth and
sustainable gross margin expansion.”
Mr. Rudow added, “The outstanding performance of recent
acquisitions demonstrates we are excellent stewards of capital and
can successfully identify, acquire, and integrate dynamic
companies. The key differentiator of the Transcat acquisition
strategy is the effectiveness of our integration processes that
enables new acquisitions, such as the recent deal with Axiom, to
very quickly be accretive to the overall company. In addition to
strong returns, the acquisitions present compelling cross-sell
synergies to drive organic calibration service growth and rental
sales into these newly acquired customer bases. Acquisitions allow
us to leverage our existing infrastructure, expand addressable
markets, and widen the breadth of our service offerings.”
Third Quarter Fiscal 2024
Review
(Results are compared with the third
quarter of the fiscal year ended March 25, 2023 (“fiscal
2023”))
($ in thousands)
Change
FY24 Q3
FY23 Q3
$'s
%
Service Revenue
$
41,509
$
35,977
$
5,532
15.4
%
Distribution Sales
23,657
21,425
2,232
10.4
%
Revenue
$
65,166
$
57,402
$
7,764
13.5
%
Gross Profit
$
20,936
$
16,400
$
4,536
27.7
%
Gross Margin
32.1
%
28.6
%
Operating Income
$
4,294
$
3,163
$
1,131
35.8
%
Operating Margin
6.6
%
5.5
%
Net Income
$
3,348
$
1,601
$
1,747
109.1
%
Net Margin
5.1
%
2.8
%
Adjusted EBITDA*
$
9,120
$
6,585
$
2,535
38.5
%
Adjusted EBITDA* Margin
14.0
%
11.5
%
Diluted EPS
$
0.38
$
0.21
$
0.17
81.0
%
Adjusted Diluted EPS*
$
0.56
$
0.35
$
0.21
60.0
%
*See Note 1 on page 5 for a description of
these non-GAAP financial measures and pages 10, 11 and 12 for the
reconciliation tables.
Consolidated revenue was $65.2 million, an increase of $7.8
million or 13.5%. Consolidated gross profit was $20.9 million, an
increase of $4.5 million, or 27.7%, while gross margin expanded 350
basis points due to improvements in both operating segments.
Operating expenses were $16.6 million, an increase of $3.4 million,
or 25.7%, driven by incremental expenses from acquired businesses
(including stock-based compensation expense) and higher
incentive-based employee costs due to higher sales. Adjusted EBITDA
was $9.1 million which represented an increase of $2.5 million or
38.5%. Net income per diluted share was $0.38 compared to $0.21
last year. Adjusted diluted earnings per share was $0.56 versus
$0.35 last year.
Service segment delivers strong third quarter results
Represents the accredited calibration, repair, inspection and
laboratory instrument services business (63.7% of total revenue for
the third quarter of fiscal 2024).
($ in thousand)
Change
FY24 Q3
FY23 Q3
$'s
%
Service Segment Revenue
$
41,509
$
35,977
$
5,532
15.4
%
Gross Profit
$
13,494
$
10,793
$
2,701
25.0
%
Gross Margin
32.5
%
30.0
%
Operating Income
$
2,966
$
1,836
$
1,130
61.5
%
Operating Margin
7.1
%
5.1
%
Adjusted EBITDA*
$
5,979
$
4,562
$
1,417
31.1
%
Adjusted EBITDA* Margin
14.4
%
12.7
%
*See Note 1 on page 5 for a description of
this non-GAAP financial measure and pages 10 and 11 for the
Adjusted EBITDA Reconciliation tables.
Service segment revenue was $41.5 million, an increase of $5.5
million or 15.4%, and included $2.2 million of incremental revenue
from acquisitions. Organic revenue growth was 9.1% and was driven
by strong end-market demand and continued market share gains. The
segment gross margin increased 250 basis points from prior year
primarily due to continued productivity improvements offset by
increased start-up costs from new client-based lab
implementations.
Distribution segment shows continued margin
improvement
Represents the sale and rental of new and used professional
grade handheld test, measurement and control instrumentation (36.3%
of total revenue for the third quarter of fiscal 2024).
($ in thousands)
Change
FY24 Q3
FY23 Q3
$'s
%
Distribution Segment Sales
$
23,657
$
21,425
$
2,232
10.4
%
Gross Profit
$
7,442
$
5,607
$
1,835
32.7
%
Gross Margin
31.5
%
26.2
%
Operating Income
$
1,328
$
1,327
$
1
0.1
%
Operating Margin
5.6
%
6.2
%
Adjusted EBITDA*
$
3,141
$
2,023
$
1,118
55.3
%
Adjusted EBITDA* Margin
13.3
%
9.4
%
*See Note 1 on page 5 for a description of
this non-GAAP financial measure and pages 10 and 11 for the
Adjusted EBITDA Reconciliation tables.
Distribution sales were $23.7 million, which represented an
increase of $2.2 million or 10.4%. These sales included $2.9
million from an acquisition offset by decreases in other channels.
Distribution segment gross margin was 31.5%, an increase of 530
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 2023)
Total revenue was $188.6 million, an increase of $20.1 million
or 11.9%. Consolidated gross profit was up $10.6 million, or 21.5%,
and gross margin expanded to 31.7% or 250 basis points.
Consolidated operating expenses increased $10.4 million, or 26.7%,
driven by incremental expenses from acquired businesses, (including
stock-based compensation expense), increased intangibles
amortization expense, investments in technology and our employee
base to support future growth, and a non-cash charge related to the
amended NEXA Earn-Out agreement. As a result, consolidated
operating income was $10.6 million compared with $10.4 million in
last fiscal year’s period.
Adjusted EBITDA was $26.9 million which represented an increase
of $5.5 million or 25.7%. Net income per diluted share decreased to
$0.83 from $0.92 and adjusted diluted earnings per share was $1.68
versus $1.33 last year. The effective tax rate was 23.5% compared
to 18.8% in the prior year, due to the discrete tax treatment of
the non-cash charge related to the amended NEXA Earn-Out
agreement.
Balance Sheet and Cash Flow Overview
On December 23, 2023, the Company had $80.0 million available
for borrowing under its secured revolving credit facility. Total
debt of $4.7 million was down $44.4 million from fiscal 2023
year-end due to cash proceeds from our secondary stock offering.
The Company’s leverage ratio, as defined in the credit agreement,
was 0.12 on December 23, 2023, compared with 1.60 on March 25,
2023.
Outlook
Mr. Rudow added concluded, “We are proud of our dedicated team,
which has consistently delivered exceptional results through
various economic cycles as can be seen over the past decade and a
half of profitable growth. For the fiscal year, we expect organic
Service revenue growth in the high-single digit to low double-digit
range and gross margin expansion. Automation of our calibration
processes and overall process improvement will be key enablers to
future margin expansion. We believe the Service segment has
substantial runway ahead for growth, both organically and through
acquisition. Our robust and diverse acquisition pipeline enables
strategic, accretive acquisitions that drive synergistic growth
opportunities and will be a key component of our go-forward
strategy. We believe our unique value proposition fostered by
Nexa's Cost, Control and Optimization Services drives a sustainable
competitive advantage in the highly regulated markets that we
serve, particularly the Life Science, Aerospace, and Defense
markets, along with a growing Rentals business. We have a long
history of generating sustainable value for our shareholders and
providing a dynamic, rewarding workplace for our team.”
Transcat expects its income tax rate to range between 24% and
26% in fiscal 2024. 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 30, 2024 at 11:00 a.m. ET. Management will review the
financial and operating results for the third 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 6, 2024. To listen to the
archived call, dial (412) 317-6671 and enter conference ID number
13742041, 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 pages 10 and 11 for the
Adjusted EBITDA Reconciliation tables.
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 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 23,
December 24,
December 23,
December 24,
2023
2022
2023
2022
Service Revenue
$
41,509
$
35,977
$
122,793
$
105,120
Distribution Sales
23,657
21,425
65,775
63,382
Total Revenue
65,166
57,402
188,568
168,502
Cost of Service Revenue
28,015
25,184
82,244
72,005
Cost of Distribution Sales
16,215
15,818
46,553
47,292
Total Cost of Revenue
44,230
41,002
128,797
119,297
Gross Profit
20,936
16,400
59,771
49,205
Selling, Marketing and Warehouse
Expenses
7,519
6,595
20,844
18,315
General and Administrative Expenses
9,123
6,642
28,350
20,497
Total Operating Expenses
16,642
13,237
49,194
38,812
Operating Income
4,294
3,163
10,577
10,393
Interest Expense
81
731
1,785
1,651
Interest Income
(347
)
(5
)
(347
)
(15
)
Other Income/Expense
289
313
304
96
Income Before Income Taxes
4,271
2,124
8,835
8,661
Provision for Income Taxes
923
523
2,078
1,631
Net Income
$
3,348
$
1,601
$
6,757
$
7,030
Basic Earnings Per Share
$
0.39
$
0.21
$
0.84
$
0.93
Average Shares Outstanding
8,615
7,559
8,060
7,547
Diluted Earnings Per Share
$
0.38
$
0.21
$
0.83
$
0.92
Average Shares Outstanding
8,752
7,666
8,187
7,644
TRANSCAT, INC.
CONSOLIDATED BALANCE
SHEETS
(In Thousands, Except Share and
Per Share Amounts)
(Unaudited)
(Audited)
December 23,
March 25,
2023
2023
ASSETS
Current Assets:
Cash and cash equivalents
$
35,205
$
1,531
Accounts Receivable, less allowance for
credit losses of $579 and $457 as of December 23, 2023 and March
25, 2023, respectively
43,307
44,698
Other Receivables
819
506
Inventory, net
16,178
16,929
Prepaid Expenses and Other Current
Assets
3,295
3,935
Total Current Assets
98,804
67,599
Property and Equipment, net
37,222
29,064
Goodwill
105,700
69,360
Intangible Assets, net
21,459
13,799
Right To Use Assets, net
16,834
14,876
Other Assets
1,055
1,051
Total Assets
$
281,074
$
195,749
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities:
Accounts Payable
$
11,355
$
15,869
Accrued Compensation and Other Current
Liabilities
15,683
10,201
Current Portion of Long-Term Debt
2,316
2,248
Total Current Liabilities
29,354
28,318
Long-Term Debt
2,411
46,869
Deferred Tax Liabilities, net
10,855
6,538
Lease Liabilities
14,457
12,960
Other Liabilities
5,527
1,434
Total Liabilities
62,604
96,119
Shareholders' Equity:
Common Stock, par value $0.50 per share,
30,000,000 shares authorized; 8,828,515 and 7,562,604 shares issued
and outstanding as of December 23, 2023 and March 25, 2023,
respectively
4,414
3,781
Capital in Excess of Par Value
140,382
27,886
Accumulated Other Comprehensive Loss
(691
)
(1,200
)
Retained Earnings
74,365
69,163
Total Shareholders' Equity
218,470
99,630
Total Liabilities and Shareholders'
Equity
$
281,074
$
195,749
TRANSCAT, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In Thousands)
(Unaudited)
Nine Months Ended
December 23,
December 24,
2023
2022
Cash Flows from Operating
Activities:
Net Income
$
6,757
$
7,030
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Net Loss on Disposal of Property and
Equipment
24
62
Deferred Income Taxes
42
(52
)
Depreciation and Amortization
9,841
8,243
Provision for Accounts Receivable and
Inventory Reserves
379
174
Stock-Based Compensation Expense
3,338
2,757
Changes in Assets and Liabilities, net of
acquisitions:
Accounts Receivable and Other
Receivables
3,819
1,850
Inventory
3,208
(3,589
)
Prepaid Expenses and Other Current
Assets
728
1,074
Accounts Payable
(5,194
)
(424
)
Accrued Compensation and Other Current
Liabilities
3,947
(3,150
)
Net Cash Provided by Operating
Activities
26,889
13,975
Cash Flows from Investing
Activities:
Purchases of Property and Equipment
(9,099
)
(7,149
)
Proceeds from Sale of Property and
Equipment
-
10
Business Acquisitions, net of cash
acquired
(12,932
)
(8,306
)
Net Cash Used in Investing Activities
(22,031
)
(15,445
)
Cash Flows from Financing
Activities:
(Repayment of) Proceeds from Revolving
Credit Facility, net
(42,713
)
2,286
Repayments of Term Loan
(1,678
)
(1,570
)
Issuance of Common Stock, net of direct
costs
75,714
503
Repurchase of Common Stock
(2,247
)
(437
)
Net Cash Provided by Financing
Activities
29,076
782
Effect of Exchange Rate Changes on Cash
and cash equivalents
(260
)
885
Net Increase in Cash and cash
equivalents
33,674
197
Cash and cash equivalents at Beginning of
Period
1,531
1,396
Cash and cash equivalents at End of
Period
$
35,205
$
1,593
TRANSCAT, INC.
Adjusted EBITDA Reconciliation
Table
(In thousands)
(Unaudited)
Fiscal 2024
Q1
Q2
Q3
Q4
YTD
Net Income
$
2,949
$
460
$
3,348
$
6,757
+ Interest Expense
814
890
(266
)
1,438
+ Other Expense / (Income)
64
(49
)
289
304
+ Tax Provision
813
342
923
2,078
Operating Income
$
4,640
$
1,643
$
4,294
$
-
$
10,577
+ Depreciation & Amortization
2,790
3,269
3,783
9,842
+ Transaction Expense
185
328
78
591
+ Acquisition Earn-Out Adjustment
-
2,800
87
2,887
+ Other (Expense) / Income
(64
)
49
(289
)
(304
)
+ Noncash Stock Compensation
930
1,241
1,167
3,338
Adjusted EBITDA
$
8,481
$
9,330
$
9,120
$
-
$
26,931
Segment
Breakdown
Service Operating Income
$
3,192
$
742
$
2,966
$
6,900
+ Depreciation & Amortization
2,226
2,325
2,362
6,913
+ Transaction Expense
185
76
30
291
+ Acquisition Earn-Out Adjustment
-
2,800
87
2,887
+ Other (Expense) / Income
(47
)
29
(203
)
(221
)
+ Noncash Stock Compensation
676
826
737
2,239
Service Adjusted EBITDA
$
6,232
$
6,798
$
5,979
$
-
$
19,009
Distribution Operating Income
$
1,448
$
901
$
1,328
$
3,677
+ Depreciation & Amortization
564
944
1,421
2,929
+ Transaction Expense
-
252
48
300
+ Other (Expense) / Income
(17
)
20
(86
)
(83
)
+ Noncash Stock Compensation
254
415
430
1,099
Distribution Adjusted EBITDA
$
2,249
$
2,532
$
3,141
$
-
$
7,922
TRANSCAT, INC.
Adjusted EBITDA Reconciliation
Table
(In thousands)
(Unaudited)
Fiscal 2023
Q1
Q2
Q3
Q4
YTD
Net Income
$
3,072
$
2,357
$
1,601
$
3,658
$
10,688
+ Interest Expense
360
550
726
781
2,417
+ Other Expense / (Income)
(204
)
(13
)
313
248
344
+ Tax Provision
376
732
523
1,168
2,799
Operating Income
$
3,604
$
3,626
$
3,163
$
5,855
$
16,248
+ Depreciation & Amortization
2,641
2,778
2,824
2,712
10,955
+ Transaction Expense
30
-
96
59
185
+ Other (Expense) / Income
204
13
(313
)
(248
)
(344
)
+ Noncash Stock Compensation
828
1,114
815
620
3,377
Adjusted EBITDA
$
7,307
$
7,531
$
6,585
$
8,998
$
30,421
Segment
Breakdown
Service Operating Income
$
2,532
$
2,507
$
1,836
$
4,547
$
11,422
+ Depreciation & Amortization
2,139
2,246
2,268
2,147
8,800
+ Transaction Expense
30
-
96
59
185
+ Other (Expense) / Income
134
3
(214
)
(170
)
(247
)
+ Noncash Stock Compensation
638
793
576
456
2,463
Service Adjusted EBITDA
$
5,473
$
5,549
$
4,562
$
7,039
$
22,623
Distribution Operating Income
$
1,072
$
1,119
$
1,327
$
1,308
$
4,826
+ Depreciation & Amortization
502
532
556
565
2,155
+ Other (Expense) / Income
70
10
(99
)
(78
)
(97
)
+ Noncash Stock Compensation
190
321
239
164
914
Distribution Adjusted EBITDA
$
1,834
$
1,982
$
2,023
$
1,959
$
7,798
TRANSCAT, INC.
Adjusted Diluted EPS
Reconciliation Table
(In Thousands, Except Per Share
Amounts)
(Unaudited)
Fiscal 2024
Q1
Q2
Q3
Q4
YTD
Net Income
$
2,949
$
460
$
3,348
$
6,757
+ Amortization of Intangible Assets
1,093
1,416
1,674
4,183
+ Acquisition Amortization of Backlog
-
19
24
43
+ Acquisition Deal Costs
367
602
430
1,399
+ Income Tax Effect at 25%
(365
)
(509
)
(532
)
(1,406
)
+ Acquisition Earn-Out Adjustment
-
2,800
-
2,800
Adjusted Net Income
$
4,044
$
4,788
$
4,944
$
-
$
13,776
Average Diluted Shares Outstanding
7,762
7,948
8,752
8,187
Diluted Earnings Per Share
$
0.38
$
0.06
$
0.38
$
-
$
0.83
Adjusted Diluted Earnings Per Share
$
0.52
$
0.60
$
0.56
$
-
$
1.68
Fiscal 2023
Q1
Q2
Q3
Q4
YTD
Net Income
$
3,072
$
2,357
$
1,601
$
3,658
$
10,688
+ Amortization of Intangible Assets
1,084
1,147
1,180
1,043
4,454
+ Acquisition Deal Costs
299
239
254
226
1,018
+ Income Tax Effect at 25%
(346
)
(346
)
(359
)
(317
)
(1,368
)
Adjusted Net Income
$
4,109
$
3,397
$
2,676
$
4,610
$
14,792
Average Diluted Shares Outstanding
7,629
7,646
7,666
7,688
7,645
Diluted Earnings Per Share
$
0.40
$
0.31
$
0.21
$
0.48
$
1.40
Adjusted Diluted Earnings Per Share
$
0.54
$
0.44
$
0.35
$
0.60
$
1.93
TRANSCAT, INC.
Additional Information -
Business Segment Data
(Dollars in thousands)
(Unaudited)
Change
SERVICE
FY 2024 Q3
FY 2023 Q3
$'s
%
Service Revenue
$
41,509
$
35,977
$
5,532
15.4
%
Cost of Revenue
28,015
25,184
2,831
11.2
%
Gross Profit
$
13,494
$
10,793
$
2,701
25.0
%
Gross Margin
32.5
%
30.0
%
Selling, Marketing & Warehouse
Expenses
$
4,202
$
4,230
$
(28
)
(0.7
)%
General and Administrative Expenses
6,326
4,727
1,599
33.8
%
Operating Income
$
2,966
$
1,836
$
1,130
61.5
%
% of Revenue
7.1
%
5.1
%
Change
DISTRIBUTION
FY 2024 Q3
FY 2023 Q3
$'s
%
Distribution Sales
$
23,657
$
21,425
$
2,232
10.4
%
Cost of Sales
16,215
15,818
397
2.5
%
Gross Profit
$
7,442
$
5,607
$
1,835
32.7
%
Gross Margin
31.5
%
26.2
%
Selling, Marketing & Warehouse
Expenses
$
3,317
$
2,365
$
952
40.3
%
General and Administrative Expenses
2,797
1,915
882
46.1
%
Operating Income
$
1,328
$
1,327
$
1
0.1
%
% of Sales
5.6
%
6.2
%
Change
TOTAL
FY 2024 Q3
FY 2023 Q3
$'s
%
Total Revenue
$
65,166
$
57,402
$
7,764
13.5
%
Total Cost of Revenue
44,230
41,002
3,228
7.9
%
Gross Profit
$
20,936
$
16,400
$
4,536
27.7
%
Gross Margin
32.1
%
28.6
%
Selling, Marketing & Warehouse
Expenses
$
7,519
$
6,595
$
924
14.0
%
General and Administrative Expenses
9,123
6,642
2,481
37.4
%
Operating Income
$
4,294
$
3,163
$
1,131
35.8
%
% of Revenue
6.6
%
5.5
%
TRANSCAT, INC.
Additional Information -
Business Segment Data
(Dollars in thousands)
(Unaudited)
Change
FY 2024
FY 2023
SERVICE
YTD
YTD
$'s
%
Service Revenue
$
122,793
$
105,120
$
17,673
16.8
%
Cost of Revenue
82,244
72,005
10,239
14.2
%
Gross Profit
$
40,549
$
33,115
$
7,434
22.4
%
Gross Margin
33.0
%
31.5
%
Selling, Marketing & Warehouse
Expenses
$
12,452
$
11,604
$
848
7.3
%
General and Administrative Expenses
21,197
14,636
6,561
44.8
%
Operating Income
$
6,900
$
6,875
$
25
0.4
%
% of Revenue
5.6
%
6.5
%
Change
FY 2024
FY 2023
DISTRIBUTION
YTD
YTD
$'s
%
Distribution Sales
$
65,775
$
63,382
$
2,393
3.8
%
Cost of Sales
46,553
47,292
(739
)
(1.6
)%
Gross Profit
$
19,222
$
16,090
$
3,132
19.5
%
Gross Margin
29.2
%
25.4
%
Selling, Marketing & Warehouse
Expenses
$
8,392
$
6,711
$
1,681
25.0
%
General and Administrative Expenses
7,153
5,861
1,292
22.0
%
Operating Income
$
3,677
$
3,518
$
159
4.5
%
% of Sales
5.6
%
5.6
%
Change
FY 2024
FY 2023
TOTAL
YTD
YTD
$'s
%
Total Revenue
$
188,568
$
168,502
$
20,066
11.9
%
Total Cost of Revenue
128,797
119,297
9,500
8.0
%
Gross Profit
$
59,771
$
49,205
$
10,566
21.5
%
Gross Margin
31.7
%
29.2
%
Selling, Marketing & Warehouse
Expenses
$
20,844
$
18,315
$
2,529
13.8
%
General and Administrative Expenses
28,350
20,497
7,853
38.3
%
Operating Income
$
10,577
$
10,393
$
184
1.8
%
% of Revenue
5.6
%
6.2
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240129185467/en/
For more information contact: Tom Barbato Phone: (585)
505-6530 Email: Thomas.Barbato@transcat.com
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