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 30,
2019 (“fiscal 2019”). Transcat operates on a 52/53 week fiscal year,
ending the last Saturday in March. In a 52-week fiscal year, each of the
four quarters is a 13-week period. In a 53-week fiscal year (which
occurs once every five or six years), the last quarter is a 14-week
period. Fiscal 2019 consisted of 52 weeks while the fiscal year ended
March 31, 2018 (“fiscal 2018”) consisted of 53 weeks. Results include
the previously-reported acquisition of Angel’s Instrumentation, Inc
(“Angel’s”), effective as of August 31, 2018.
“The continued execution of our strategic plan, strength of our value
proposition and favorable U.S. macro environment drove record sales and
net income for the fiscal year,” commented Lee D. Rudow, President and
CEO. “The Service segment continued to deliver from a sales perspective,
marking an impressive 10 years, or 40 consecutive quarters, of
year-over-year quarterly sales growth. Our Service organic growth rate
was strong, particularly when normalizing for the extra week from last
year, as we have been successful in taking market share, especially
within the life science market. Our Distribution business performed well
as we continued to execute our strategy of driving higher margin core
product sales and rentals, which resulted in enhanced segment
profitability.
“We continue to have confidence in our ability to grow Service segment
revenue and expect to improve our margins over time as we overcome
short-term productivity pressures related to this growth. We are
improving our processes around the hiring, training and onboarding of
our ever-expanding technical workforce. In addition, we believe
automation and improvements of our calibration service process will aid
productivity improvement throughout our network of 21 labs.”
Fourth Quarter Fiscal 2019 Review (Results compared with the
fourth quarter of fiscal 2018)
| ($ in thousands) | Change | |||||||||||||||||||
| FY19 Q4 | FY18 Q4 | $’s | % | |||||||||||||||||
| Service Revenue | $ | 24,322 | $ | 21,955 | $ | 2,367 | 10.8 | % | ||||||||||||
| Distribution Sales | 20,171 | 20,497 | (326 | ) | (1.6 | %) | ||||||||||||||
| Revenue | $ | 44,493 | $ | 42,452 | $ | 2,041 | 4.8 | % | ||||||||||||
| Gross Profit | $ | 11,543 | $ | 10,895 | $ | 648 | 5.9 | % | ||||||||||||
| Gross Margin | 25.9 | % | 25.7 | % | ||||||||||||||||
| Operating Income | $ | 3,634 | $ | 3,503 | $ | 131 | 3.7 | % | ||||||||||||
| Operating Margin | 8.2 | % | 8.3 | % | ||||||||||||||||
| Net Income | $ | 2,660 | $ | 2,454 | $ | 206 | 8.4 | % | ||||||||||||
| Net Margin | 6.0 | % | 5.8 | % | ||||||||||||||||
| Adjusted EBITDA* | $ | 5,591 | $ | 5,310 | $ | 281 | 5.3 | % | ||||||||||||
| Adjusted EBITDA* Margin | 12.6 | % | 12.5 | % | ||||||||||||||||
|
*See Note 1 on page 5 for a description of this non-GAAP |
Transcat achieved record quarterly revenue of $44.5 million, up 4.8%
even with one less week in fiscal 2019. Revenue on a normalized basis
increased 12.9%, as strong U.S. sales more than offset continued
softness in Canada. Higher gross profit and margin helped to offset
continued investments to support growth as operating expenses were up
$0.5 million, or 7.0%. As a result, operating income increased $0.1
million. The effective tax rate was 20.7% for the quarter compared with
25.2% for the previous fiscal year’s fourth quarter.
Service segment continues to deliver strong U.S. organic growth
Represents the accredited calibration, repair, inspection and
laboratory instrument services business (55% of total revenue for the
fourth quarter of fiscal 2019).
| ($ in thousands) | Change | ||||||||||||||||||
| FY19 Q4 | FY18 Q4 | $’s | % | ||||||||||||||||
| Service Segment Revenue | $ | 24,322 | $ | 21,955 | $ | 2,367 | 10.8 | % | |||||||||||
| Gross Profit | $ | 6,731 | $ | 6,267 | $ | 464 | 7.4 | % | |||||||||||
| Gross Margin | 27.7 | % | 28.5 | % | |||||||||||||||
| Operating Income | $ | 2,431 | $ | 2,420 | $ | 11 | 0.5 | % | |||||||||||
| Operating Margin | 10.0 | % | 11.0 | % | |||||||||||||||
| Adjusted EBITDA* | $ | 3,804 | $ | 3,637 | $ | 167 | 4.6 | % | |||||||||||
| Adjusted EBITDA* Margin | 15.6 | % | 16.6 | % | |||||||||||||||
|
*See Note 1 on page 5 for a description of this non-GAAP |
Service revenue increased 10.8%, inclusive of acquired revenue from
Angel’s. Organic Service revenue growth was 7.0% in the quarter or 13.6%
on a normalized basis for 52 weeks versus 53 weeks. Higher revenue was
the result of new business from the highly-regulated life sciences
market and growth in other regulated sectors.
The segment gross margin was negatively impacted by soft Canada results
and the short-term productivity impact from strong revenue growth.
Distribution segment shows strong margins
Represents the sale and rental of new and used professional grade
handheld test, measurement and control instrumentation (45% of total
revenue for the fourth quarter of fiscal 2019).
| ($ in thousands) | Change | |||||||||||||||||||
| FY19 Q4 | FY18 Q4 | $’s | % | |||||||||||||||||
| Distribution Segment Sales | $ | 20,171 | $ | 20,497 | $ | (326 | ) | (1.6 | %) | |||||||||||
| Gross Profit | $ | 4,812 | $ | 4,628 | $ | 184 | 4.0 | % | ||||||||||||
| Gross Margin | 23.9 | % | 22.6 | % | ||||||||||||||||
| Operating Income | $ | 1,203 | $ | 1,083 | $ | 120 | 11.1 | % | ||||||||||||
| Operating Margin | 6.0 | % | 5.3 | % | ||||||||||||||||
| Adjusted EBITDA* | $ | 1,787 | $ | 1,673 | $ | 114 | 6.8 | % | ||||||||||||
| Adjusted EBITDA* Margin | 8.9 | % | 8.2 | % | ||||||||||||||||
|
*See Note 1 on page 5 for a description of this non-GAAP |
Part of the Company’s strategic focus continues to be on improving
Distribution segment gross profit by driving higher value and higher
margin opportunities. As a result, the segment gross profit improved
4.0% and segment gross margin expanded 130 basis points. This increase
was due to a mix of higher margin new product sales and increased
rentals which have a higher margin profile, and pricing initiatives as
part of the Company’s operational excellence program. Rental revenue was
up 21.2% to $1.2 million.
Full-Year Fiscal 2019 Review (Results compared with fiscal
2018)
| ($ in thousands) | Change | |||||||||||||||||||
| FY19 | FY18 | $’s | % | |||||||||||||||||
| Service Revenue | $ | 84,041 | $ | 77,445 | $ | 6,596 | 8.5 | % | ||||||||||||
| Distribution Sales | 76,857 | 77,696 | (839 | ) | (1.1 | %) | ||||||||||||||
| Revenue | $ | 160,898 | $ | 155,141 | $ | 5,757 | 3.7 | % | ||||||||||||
| Gross Profit | $ | 39,343 | $ | 37,441 | $ | 1,902 | 5.1 | % | ||||||||||||
| Gross Margin | 24.5 | % | 24.1 | % | ||||||||||||||||
| Operating Income | $ | 10,229 | $ | 9,026 | $ | 1,203 | 13.3 | % | ||||||||||||
| Operating Margin | 6.4 | % | 5.8 | % | ||||||||||||||||
| Net Income | $ | 7,145 | $ | 5,922 | $ | 1,223 | 20.7 | % | ||||||||||||
| Net Margin | 4.4 | % | 3.8 | % | ||||||||||||||||
| Adjusted EBITDA* | $ | 17,826 | $ | 16,368 | $ | 1,458 | 8.9 | % | ||||||||||||
| Adjusted EBITDA* Margin | 11.1 | % | 10.6 | % | ||||||||||||||||
|
*See Note 1 on page 5 for a description of this non-GAAP |
Consolidated revenue of $160.9 million was up 6.2% on a normalized
basis. Excluding acquired revenue from Angel’s, the Company’s organic
Service revenue increased 6.1% or 8.6% on a normalized basis.
As a percentage of revenue, consolidated operating expenses were 18.1%,
down 20 basis points. As a result, operating income increased $1.2
million, or 13.3%, to $10.2 million, and operating margin expanded 60
basis points.
The fiscal 2019 effective tax rate was down to 22.6% compared with 25.5%
in fiscal 2018, given the full fiscal year benefit of the U.S. Tax Cuts
and Jobs Act enacted in the third quarter of fiscal 2018. Transcat
achieved record net income of $7.1 million or diluted earnings per share
of $0.95, up $0.14 or 17.3%. Adjusted EBITDA improved 8.9% to $17.8
million and as a percent of total revenue was up 50 basis points to
11.1%. See Note 1 on page 5 for a description of this non-GAAP
financial measure and page 10 for the Adjusted EBITDA Reconciliation
table.
Balance Sheet and Cash Flow Overview
Net cash provided by operating activities increased 27.2% to $12.6
million. Capital expenditures were $7.0 million for fiscal 2019, with
investments focused on customer-driven expansion of Service segment
capabilities and the Company’s growing rental business.
At March 30, 2019, the Company had total debt of $21.0 million, with
$23.5 million available under its secured revolving credit facility.
Total debt at fiscal year-end was down $1.8 million from the prior
fiscal year end. The Company’s leverage ratio, as defined in its credit
agreement, was 1.12 at March 30, 2019, compared with 1.40 at fiscal 2018
year-end.
Outlook
Mr. Rudow concluded, “We are proud of our team for delivering solid
growth in revenue and profitability this year as we made significant
strides executing our strategic plan. As we have said, we are on a
long-term operational excellence journey, which includes a number of
initiatives and investments aimed at delivering a differentiated level
of service and enhancing our margin profile. We have seen the early
benefits within the Distribution business, and the longer-term Service
segment initiatives for productivity, including automation, are moving
in the right direction. While we would like to accelerate the process,
we are confident in the actions we are taking and believe we will begin
to see some of the early benefits within Service this upcoming fiscal
year.
“We kicked off the new fiscal year with a strong balance sheet and the
financial flexibility to continue to execute our strategic growth plan.
Combined with our robust pipelines for new business and acquisitions, we
believe that fiscal 2020 will be a year of revenue and margin growth.”
Transcat expects its income tax rate to range between 22% and 23% in
fiscal 2020. This estimate includes Federal, various state, and Canadian
income taxes and reflects the increased discrete tax accounting windfall
associated with share-based payment awards. In particular, this impact
is expected to result in a significantly lower first quarter fiscal 2020
tax rate of between 10% and 11%.
The Company anticipates total capital expenditures to be approximately
$7.8 million to $8.2 million in fiscal 2020, with the majority of the
incremental capital expenditures in excess of fiscal 2019 spend levels
planned for growth-oriented opportunities within both of its operating
segments. Maintenance/existing asset replacements are expected to be
consistent with fiscal 2019 at approximately $1.0 million to $1.5
million.
Webcast and Conference Call
Transcat will host a conference call and webcast on Wednesday, May 22,
2019 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 29, 2019. To listen to the
archived call, dial (412) 317-6671 and enter conference ID number
13689948, 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,
and non-cash stock compensation 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, and stock-based compensation expense, 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 the attached Adjusted EBITDA Reconciliation table
on page 10.
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, including life science, aerospace and defense,
pharmaceutical, medical device manufacturing and biotechnology. Transcat
provides permanent and periodic on-site services, mobile calibration
services and in-house services through 21 Calibration Service Centers
strategically located across the United States, Puerto Rico and Canada.
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,” and other similar words. All
statements addressing operating performance, events or developments that
Transcat, Inc. expects or anticipates will occur in the future,
including but not limited to statements relating to anticipated revenue,
profit margins, 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 are
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. 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.
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) |
|||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||
| Fourth Quarter Ended | Fiscal Year Ended | ||||||||||||||||||
| March 30, | March 31, | March 30, | March 31, | ||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
| Service Revenue | $ | 24,322 | $ | 21,955 | $ | 84,041 | $ | 77,445 | |||||||||||
| Distribution Sales | 20,171 | 20,497 | 76,857 | 77,696 | |||||||||||||||
| Total Revenue | 44,493 | 42,452 | 160,898 | 155,141 | |||||||||||||||
| Cost of Service Revenue | 17,591 | 15,688 | 63,096 | 57,523 | |||||||||||||||
| Cost of Distribution Sales | 15,359 | 15,869 | 58,459 | 60,177 | |||||||||||||||
| Total Cost of Revenue | 32,950 | 31,557 | 121,555 | 117,700 | |||||||||||||||
| Gross Profit | 11,543 | 10,895 | 39,343 | 37,441 | |||||||||||||||
| Selling, Marketing and Warehouse Expenses | 4,689 | 4,317 | 16,956 | 16,564 | |||||||||||||||
| General and Administrative Expenses | 3,220 | 3,075 | 12,158 | 11,851 | |||||||||||||||
| Total Operating Expenses | 7,909 | 7,392 | 29,114 | 28,415 | |||||||||||||||
| Operating Income | 3,634 | 3,503 | 10,229 | 9,026 | |||||||||||||||
| Interest and Other Expense, net | 279 | 224 | 994 | 1,078 | |||||||||||||||
| Income Before Income Taxes | 3,355 | 3,279 | 9,235 | 7,948 | |||||||||||||||
| Provision for Income Taxes | 695 | 825 | 2,090 | 2,026 | |||||||||||||||
| Net Income | $ | 2,660 | $ | 2,454 | $ | 7,145 | $ | 5,922 | |||||||||||
| Basic Earnings Per Share | $ | 0.37 | $ | 0.34 | $ | 0.99 | $ | 0.83 | |||||||||||
| Average Shares Outstanding | 7,208 | 7,152 | 7,196 | 7,124 | |||||||||||||||
| Diluted Earnings Per Share | $ | 0.35 | $ | 0.33 | $ | 0.95 | $ | 0.81 | |||||||||||
| Average Shares Outstanding | 7,553 | 7,376 | 7,515 | 7,303 | |||||||||||||||
|
TRANSCAT, INC. CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share and Per Share Amounts) |
|||||||||||||
| (Unaudited) | (Audited) | ||||||||||||
| March 30, | March 31, | ||||||||||||
| 2019 | 2018 | ||||||||||||
| ASSETS | |||||||||||||
| Current Assets: | |||||||||||||
| Cash | $ | 788 | $ | 577 | |||||||||
| Accounts Receivable, less allowance for doubtful accounts of $338 | |||||||||||||
| and $296 as of March 30, 2019 and March 31, 2018, respectively | 27,469 | 24,684 | |||||||||||
| Other Receivables | 1,116 | 1,361 | |||||||||||
| Inventory, net | 14,304 | 12,651 | |||||||||||
| Prepaid Expenses and Other Current Assets | 1,329 | 1,240 | |||||||||||
| Total Current Assets | 45,006 | 40,513 | |||||||||||
| Property and Equipment, net | 19,653 | 17,091 | |||||||||||
| Goodwill | 34,545 | 32,740 | |||||||||||
| Intangible Assets, net | 5,233 | 5,505 | |||||||||||
| Other Assets | 793 | 973 | |||||||||||
| Total Assets | $ | 105,230 | $ | 96,822 | |||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
| Current Liabilities: | |||||||||||||
| Accounts Payable | $ | 14,572 | $ | 13,535 | |||||||||
| Accrued Compensation and Other Liabilities | 5,450 | 5,240 | |||||||||||
| Income Taxes Payable | 228 | 232 | |||||||||||
| Current Portion of Long-Term Debt | 1,899 | 2,143 | |||||||||||
| Total Current Liabilities | 22,149 | 21,150 | |||||||||||
| Long-Term Debt | 19,103 | 20,707 | |||||||||||
| Deferred Tax Liability | 2,450 | 1,709 | |||||||||||
| Other Liabilities | 1,898 | 1,908 | |||||||||||
| Total Liabilities | 45,600 | 45,474 | |||||||||||
| Shareholders’ Equity: | |||||||||||||
|
Common Stock, par value $0.50 per share, 30,000,000 shares authorized; |
|||||||||||||
| 7,210,882 and 7,155,050 shares issued and outstanding | |||||||||||||
| as of March 30, 2019, and March 31, 2018, respectively | 3,605 | 3,578 | |||||||||||
| Capital in Excess of Par Value | 16,467 | 14,965 | |||||||||||
| Accumulated Other Comprehensive Loss | (611 | ) | (281 | ) | |||||||||
| Retained Earnings | 40,169 | 33,086 | |||||||||||
| Total Shareholders’ Equity | 59,630 | 51,348 | |||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 105,230 | $ | 96,822 | |||||||||
|
TRANSCAT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) |
||||||||||||||
|
(Unaudited)
For Fiscal Years Ended |
||||||||||||||
| March 30, | March 31, | |||||||||||||
| 2019 | 2018 | |||||||||||||
| Cash Flows from Operating Activities: | ||||||||||||||
| Net Income | $ | 7,145 | $ | 5,922 | ||||||||||
| Adjustments to Reconcile Net Income to Net Cash Provided | ||||||||||||||
| by Operating Activities: | ||||||||||||||
| Net Loss on Disposal of Property and Equipment | 8 | 133 | ||||||||||||
| Deferred Income Taxes | 741 | 765 | ||||||||||||
| Depreciation and Amortization | 6,361 | 5,991 | ||||||||||||
| Provision for Accounts Receivable and Inventory Reserves | 297 | 92 | ||||||||||||
| Stock-Based Compensation | 1,327 | 1,411 | ||||||||||||
| Changes in Assets and Liabilities: | ||||||||||||||
| Accounts Receivable and Other Receivables | (2,385 | ) | (2,952 | ) | ||||||||||
| Inventory | (1,100 | ) | (1,674 | ) | ||||||||||
| Prepaid Expenses and Other Assets | (39 | ) | (259 | ) | ||||||||||
| Accounts Payable | 963 | 1,920 | ||||||||||||
| Accrued Compensation and Other Liabilities | (804 | ) | (686 | ) | ||||||||||
| Income Taxes Payable | 47 | (789 | ) | |||||||||||
| Net Cash Provided by Operating Activities | 12,561 | 9,874 | ||||||||||||
| Cash Flows from Investing Activities: | ||||||||||||||
| Purchase of Property and Equipment | (6,998 | ) | (5,882 | ) | ||||||||||
| Proceeds from Sale of Property and Equipment | 16 | 11 | ||||||||||||
| Business Acquisitions, net of cash acquired | (3,614 | ) | – | |||||||||||
|
Payment of Contingent Consideration & Holdbacks Related to Business Acquisitions |
(308 | ) | – | |||||||||||
| Net Cash Used in Investing Activities | (10,904 | ) | (5,871 | ) | ||||||||||
| Cash Flows from Financing Activities: | ||||||||||||||
| Repayment of Revolving Credit Facility, net | (2,261 | ) | (9,878 | ) | ||||||||||
| Proceeds from Term Loan | 2,500 | 7,143 | ||||||||||||
| Repayments of Term Loan | (2,087 | ) | (1,726 | ) | ||||||||||
| Issuance of Common Stock | 285 | 931 | ||||||||||||
| Repurchase of Common Stock | (145 | ) | (360 | ) | ||||||||||
| Stock Option Redemption | – | (90 | ) | |||||||||||
| Net Cash Used in Financing Activities | (1,708 | ) | (3,980 | ) | ||||||||||
| Effect of Exchange Rate Changes on Cash | 262 | (288 | ) | |||||||||||
| Net Increase (Decrease) in Cash | 211 | (265 | ) | |||||||||||
| Cash at Beginning of Year | 577 | 842 | ||||||||||||
| Cash at End of Year | $ | 788 | $ | 577 | ||||||||||
|
TRANSCAT, INC. Adjusted EBITDA Reconciliation Table (Dollars in thousands) (Unaudited) |
|||||||||||||||||
| Fiscal 2019 | |||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||
| Net Income | $1,428 | $1,488 | $1,569 | $2,660 | $7,145 | ||||||||||||
| + Interest Expense | 206 | 197 | 250 | 250 | 903 | ||||||||||||
| + Other Expense / (Income) | 19 | (2) | 45 | 29 | 91 | ||||||||||||
| + Tax Provision | 372 | 493 | 530 | 695 | 2,090 | ||||||||||||
| Operating Income | $2,025 | $2,176 | $2,394 | $3,634 | $10,229 | ||||||||||||
| + Depreciation & Amortization | 1,567 | 1,500 | 1,666 | 1,628 | 6,361 | ||||||||||||
| + Other (Expense) / Income | (19) | 2 | (45) | (29) | (91) | ||||||||||||
| + Noncash Stock Compensation | 269 | 337 | 363 | 358 | 1,327 | ||||||||||||
| Adjusted EBITDA | $3,842 | $4,015 | $4,378 | $5,591 | $17,826 | ||||||||||||
|
Segment Breakdown |
|||||||||||||||||
| Service Operating Income | $1,068 | $1,125 | $578 | $2,431 | $5,202 | ||||||||||||
| + Depreciation & Amortization | 1,189 | 1,116 | 1,248 | 1,201 | 4,754 | ||||||||||||
| + Other (Expense) / Income | (13) | (1) | (35) | (20) | (69) | ||||||||||||
| + Noncash Stock Compensation | 146 | 174 | 190 | 192 | 702 | ||||||||||||
| Service Adjusted EBITDA | $2,390 | $2,414 | $1,981 | $3,804 | $10,589 | ||||||||||||
| Distribution Operating Income | $957 | $1,051 | $1,816 | $1,203 | $5,027 | ||||||||||||
| + Depreciation & Amortization | 378 | 384 | 418 | 427 | 1,607 | ||||||||||||
| + Other (Expense) / Income | (6) | 3 | (10) | (9) | (22) | ||||||||||||
| + Noncash Stock Compensation | 123 | 163 | 173 | 166 | 625 | ||||||||||||
| Distribution Adjusted EBITDA | $1,452 | $1,601 | $2,397 | $1,787 | $7,237 | ||||||||||||
|
Fiscal 2018 |
|||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||
| Net Income | $856 | $781 | $1,831 | $2,454 | $5,922 | ||||||||||||
| + Interest Expense | 236 | 281 | 250 | 251 | 1,018 | ||||||||||||
| + Other Expense / (Income) | 36 | (10) | 61 | (27) | 60 | ||||||||||||
| + Tax Provision | 283 | 406 | 512 | 825 | 2,026 | ||||||||||||
| Operating Income | $1,411 | $1,458 | $2,654 | $3,503 | $9,026 | ||||||||||||
| + Depreciation & Amortization | 1,487 | 1,497 | 1,543 | 1,464 | 5,991 | ||||||||||||
| + Other (Expense) / Income | (36) | 10 | (61) | 27 | (60) | ||||||||||||
| + Noncash Stock Compensation | 499 | 332 | 264 | 316 | 1,411 | ||||||||||||
| Adjusted EBITDA | $3,361 | $3,297 | $4,400 | $5,310 | $16,368 | ||||||||||||
|
Segment Breakdown |
|||||||||||||||||
| Service Operating Income | $885 | $790 | $1,063 | $2,420 | $5,158 | ||||||||||||
| + Depreciation & Amortization | 1,110 | 1,107 | 1,126 | 1,054 | 4,397 | ||||||||||||
| + Other (Expense) / Income | (28) | 4 | (45) | 8 | (61) | ||||||||||||
| + Noncash Stock Compensation | 249 | 168 | 134 | 155 | 706 | ||||||||||||
| Service Adjusted EBITDA | $2,216 | $2,069 | $2,278 | $3,637 | $10,200 | ||||||||||||
| Distribution Operating Income | $526 | $668 | $1,591 | $1,083 | $3,868 | ||||||||||||
| + Depreciation & Amortization | 377 | 390 | 417 | 410 | 1,594 | ||||||||||||
| + Other (Expense) / Income | (8) | 6 | (16) | 19 | 1 | ||||||||||||
| + Noncash Stock Compensation | 250 | 164 | 130 | 161 | 705 | ||||||||||||
| Distribution Adjusted EBITDA | $1,145 | $1,228 | $2,122 | $1,673 | $6,168 | ||||||||||||
|
TRANSCAT, INC. Additional Information – Business Segment Data (Dollars in thousands) (Unaudited) |
|||||||||||||
| Change | |||||||||||||
| SERVICE | FY 2019 Q4 | FY 2018 Q4 | $’s | % | |||||||||
| Service Revenue | $24,322 | $21,955 | $2,367 | 10.8% | |||||||||
| Cost of Service Revenue | 17,591 | 15,688 | 1,903 | 12.1% | |||||||||
| Gross Profit | $6,731 | $6,267 | $464 | 7.4% | |||||||||
| Gross Margin | 27.7% | 28.5% | |||||||||||
| Selling, Marketing & Warehouse Expenses | $2,447 | $2,207 | $240 | 10.9% | |||||||||
| General and Administrative Expenses | 1,853 | 1,640 | 213 | 13.0% | |||||||||
| Operating Income | $2,431 | $2,420 | $11 | 0.5% | |||||||||
| % of Revenue | 10.0% | 11.0% | |||||||||||
| Change | |||||||||||||
| DISTRIBUTION | FY 2019 Q4 | FY 2018 Q4 | $’s | % | |||||||||
| Distribution Sales | $20,171 | $20,497 | ($326) | (1.6%) | |||||||||
| Cost of Distribution Sales | 15,359 | 15,869 | (510) | (3.2%) | |||||||||
| Gross Profit | $4,812 | $4,628 | $184 | 4.0% | |||||||||
| Gross Margin | 23.9% | 22.6% | |||||||||||
| Selling, Marketing & Warehouse Expenses | $2,242 | $2,110 | $132 | 6.3% | |||||||||
| General and Administrative Expenses | 1,367 | 1,435 | (68) | (4.7%) | |||||||||
| Operating Income | $1,203 | $1,083 | $120 | 11.1% | |||||||||
| % of Sales | 6.0% | 5.3% | |||||||||||
| Change | |||||||||||||
| TOTAL | FY 2019 Q4 | FY 2018 Q4 | $’s | % | |||||||||
| Total Revenue | $44,493 | $42,452 | $2,041 | 4.8% | |||||||||
| Total Cost of Revenue | 32,950 | 31,557 | 1,393 | 4.4% | |||||||||
| Gross Profit | $11,543 | $10,895 | $648 | 5.9% | |||||||||
| Gross Margin | 25.9% | 25.7% | |||||||||||
| Selling, Marketing & Warehouse Expenses | $4,689 | $4,317 | $372 | 8.6% | |||||||||
| General and Administrative Expenses | 3,220 | 3,075 | 145 | 4.7% | |||||||||
| Operating Income | $3,634 | $3,503 | $131 | 3.7% | |||||||||
| % of Revenue | 8.2% | 8.3% | |||||||||||
|
TRANSCAT, INC. Additional Information – Business Segment Data (Dollars in thousands) (Unaudited) |
|||||||||||||
| Change | |||||||||||||
| SERVICE | FY 2019 YTD | FY 2018 YTD | $’s | % | |||||||||
| Service Revenue | $84,041 | $77,445 | $6,596 | 8.5% | |||||||||
| Cost of Service Revenue | 63,096 | 57,523 | 5,573 | 9.7% | |||||||||
| Gross Profit | $20,945 | $19,922 | $1,023 | 5.1% | |||||||||
| Gross Margin | 24.9% | 25.7% | |||||||||||
| Selling, Marketing & Warehouse Expenses | $8,807 | $8,517 | $290 | 3.4% | |||||||||
| General and Administrative Expenses | 6,936 | 6,247 | 689 | 11.0% | |||||||||
| Operating Income | $5,202 | $5,158 | $44 | 0.9% | |||||||||
| % of Revenue | 6.2% | 6.7% | |||||||||||
| Change | |||||||||||||
| DISTRIBUTION | FY 2019 YTD | FY 2018 YTD | $’s | % | |||||||||
| Distribution Sales | $76,857 | $77,696 | ($839) | (1.1%) | |||||||||
| Cost of Distribution Sales | 58,459 | 60,177 | (1,718) | (2.9%) | |||||||||
| Gross Profit | $18,398 | $17,519 | $879 | 5.0% | |||||||||
| Gross Margin | 23.9% | 22.5% | |||||||||||
| Selling, Marketing & Warehouse Expenses | $8,149 | $8,047 | $102 | 1.3% | |||||||||
| General and Administrative Expenses | 5,222 | 5,604 | (382) | (6.8%) | |||||||||
| Operating Income | $5,027 | $3,868 | $1,159 | 30.0% | |||||||||
| % of Sales | 6.5% | 5.0% | |||||||||||
| Change | |||||||||||||
| TOTAL | FY 2019 YTD | FY 2018 YTD | $’s | % | |||||||||
| Total Revenue | $160,898 | $155,141 | $5,757 | 3.7% | |||||||||
| Total Cost of Revenue | 121,555 | 117,700 | 3,855 | 3.3% | |||||||||
| Gross Profit | $39,343 | $37,441 | $1,902 | 5.1% | |||||||||
| Gross Margin | 24.5% | 24.1% | |||||||||||
| Selling, Marketing & Warehouse Expenses | $16,956 | $16,564 | $392 | 2.4% | |||||||||
| General and Administrative Expenses | 12,158 | 11,851 | 307 | 2.6% | |||||||||
| Operating Income | $10,229 | $9,026 | $1,203 | 13.3% | |||||||||
| % of Revenue | 6.4% | 5.8% | |||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190521005733/en/