Transcat, Inc. · NASDAQ:TRNS
Transcat — Q2 FY2021 Earnings Presentation
14 slides from Transcat's earnings presentation, Oct 28, 2020
Slide 1: Q2 Financial Results Fiscal 2021
Q2 Financial Results Fiscal 2021 Lee D. Rudow President and CEO Michael J. Tschiderer Chief Financial Officer 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation 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 state
Slide 3: Q2 FY21 Execution
Q2 FY21 Execution Revenue of $41.6M Gross margin expanded 260 bps to 27.6% on revenue similar to prior year Q2 Consolidated Exceeded expectations: generated $3.1M of operating income Results Achieved net income of $2.0M or $0.27 per diluted share Generated $8.5M in cash from operations in Q2 All 42
Slide 4: Revenue
Revenue ($ in millions) Q2 Service Segment Consolidated – Annual $24.6 $160.9 $173.1 $169.5 $143.9 $155.1 $23.5 $77.4 $84.0 $93.0 $94.6 $71.1 $72.8 $77.7 $76.9 $80.1 $74.9 Q2 2020 Q2 2021 FY 2017 FY 2018 FY 2019 FY 2020 Q2 FY21 TTM Service Distribution Q2 Distribution Segment Service segment: $18.3
Slide 5: Operating Income
Operating Income ($ in millions) Q2 Service Segment Consolidated – Annual $3.0 $10.2 $10.8 $9.9 $9.0 $7.9 $5.2 $5.7 $1.8 $5.2 $7.2 $4.8 $3.9 $5.0 $5.2 7.8% 12.1% $3.2 $2.7 Q2 2020 Q2 2021 FY 2017 FY 2018 FY 2019 FY 2020 Q2 FY21 TTM Service Distribution Q2 Distribution Segment Significant Service mar
Slide 6: Net Income & Diluted EPS
Net Income & Diluted EPS ($ in millions, except EPS) Annual Quarterly $8.1 $7.1 $6.8 $5.9 $4.5 $2.4 $2.0 $0.64 $0.81 $0.95 $1.08 $0.90 Diluted EPS $0.32 $0.27 FY 2017 FY 2018 FY 2019 FY 2020 Q2 FY21 Q2 2020 Q2 2021 TTM Last fiscal year’s second quarter benefited from a lower tax rate due to increase
Slide 7: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) Q2 Service Segment Consolidated – Annual $4.5 $18.4 $18.4 $16.4 $17.8 $14.5 $3.1 $10.6 $11.1 $13.1 $10.2 $9.6 13.2% 18.2% $4.9 $6.2 $7.2 $7.4 $5.2 Q2 2020 Q2 2021 FY 2017 FY 2018 FY 2019 FY 2020 Q2 FY21 TTM Service Distribution Q2 Distribution Segment $1.7
Slide 8: Flexible Balance Sheet Supports Growth Strategy
Flexible Balance Sheet Supports Growth Strategy ($ in millions) CAPITALIZATION No current or expected liquidity issues Note: Components may not add to totals Sept 26, March 28, due to rounding $28.9M available from credit facility at 2020 2020 quarter-end Cash and cash equivalents $ 1.0 $ 0.5 Paid d
Slide 9: Strong Cash Generation
Strong Cash Generation ($ in millions) Three Months Ended $24.7M in working capital at end of Q2 FY21 Note: Components may not add to totals due to rounding Sept 26, Sept 28, 2020 2019 Accounts receivable decreased $3.3M in Q2 FY21 Net cash provided by operations $ 8.5 $ 2.0 Capital investments prim
Slide 10: Outlook
Outlook* Q3 FY 2021 Expectations Service: Expect revenue to grow modestly versus last fiscal year’s third quarter, with solid improved gross margin versus prior year Q3 Distribution: Expect sales to continue to be negatively impacted by the current COVID-19 economic environment Consolidated: Expect
Slide 11: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13710941 • Telephone replay available through Wednesday, November 4, 2020 • Webcast / Presentation / Replay available at http://www.transcat.com/investor-relations/ • Transcript, when available, at http://www.transcat.com/i
Slide 12: Supplemental Information
Supplemental Information 12
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Q2 FY21 FY 2017 FY 2018 FY 2019 FY 2020 TTM Net Income $ 4,522 $ 5,922 $ 7,145 $ 8,067 $ 6,792 + Interest Expense 719 1,018 903 934 904 + Other Expense / (Income) 51 60 91 186 194 + Tax Provision 2,642 2,026 2,090 1,663 1,985 Operating Income $ 7,934 $
Slide 14: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) Q2 FY21 FY 2017 FY 2018 FY 2019 FY 2020 TTM Service Operating Income $ 4,769 $ 5,158 $ 5,202 $ 5,672 $ 7,203 +Depreciation & Amortization 4,660 4,397 4,754 4,929 5,216 +Restructuring Expense - - - - 193 +Other (Expense) / Income (55) (61) (69)