Transcat, Inc. · NASDAQ:TRNS
Transcat — Q1 FY2015 Earnings Presentation
14 slides from Transcat's earnings presentation, Jul 30, 2014
Slide 1: Q1 FY2015 Financial Results
Q1 FY2015 Financial Results July 30, 2014 Lee D. Rudow John J. Zimmer President and CEO Sr. Vice President of Finance and CFO
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 that often are identif
Slide 3: Long Term Objectives
Long Term Objectives Building a foundation for future growth while delivering near-term results Service segment • Double digit revenue growth through organic and acquisition strategy • Take market share particularly in the Life Science space • Grow pipeline of larger, multi-year enterprise opportuni
Slide 4: First Quarter FY 2015 Execution
First Quarter FY 2015 Execution Modest top line Strategy growth continues to deliver • Driven by organic Service segment growth of 3.4% • Distribution sales of $17.0 million consistent with the prior-year period • Sales progressively improved through the quarter Lower Distribution vendor rebates imp
Slide 5: Top-line Growth
Top-line Growth ($ in millions) 8.5% CAGR* Q1 Service Segment Consolidated – Annual $12.1 $118.5 $118.9 $11.7 $110.0 $112.3 $91.2 $36.4 $40.7 $48.2 $48.6 $31.3 $59.9 $73.6 $71.6 $70.3 $70.3 Q1 FY14 Q1 FY15 FY2011 FY2012 FY2013 FY2014 Q1 FY15 TTM Service Distribution Q1 Distribution Segment • Q1 Serv
Slide 6: Operating Income
Operating Income ($ in millions) 10.2% CAGR* Q1 Service Segment Consolidated – Annual $6.7 $6.3 $0.5 $5.4 $5.9 $4.6 $(0.2) $1.3 $2.4 $2.2 $0.3 $0.2 $4.4 $5.6 $4.6 $4.3 $4.1 Q1 FY14 Q1 FY15 FY2011 FY2012 FY2013 FY2014 Q1 FY15 TTM Service Distribution Q1 Distribution Segment • Q1 Service operating mar
Slide 7: Contribution Margin
Contribution Margin* ($ in millions) 8.8% CAGR** Q1 Service Segment Consolidated – Annual $1.5 $14.4 $15.7 $15.2 $1.3 $13.4 $11.6 $3.2 $5.2 $6.1 $5.9 $3.1 $8.5 $10.2 $9.2 $9.6 $9.3 Q1 FY14 Q1 FY15 FY 2011 FY 2012 FY 2013 FY 2014 Q1 FY15 TTM Service Distribution Q1 Distribution Segment • 22.6% Servic
Slide 8: Adjusted EBITDA
Adjusted EBITDA* ($ in millions) 9.7% CAGR** Q1 Service Segment Consolidated – Annual $10.0 $9.6 $1.1 $8.8 $8.9 $0.8 $7.1 $2.0 $3.1 $4.6 $4.4 $1.8 $6.8 $5.8 $5.3 $5.4 $5.2 Q1 FY14 Q1 FY15 FY 2011 FY 2012 FY 2013 FY 2014 Q1 FY15 TTM Service Distribution Q1 Distribution Segment • 32.1% Service segment
Slide 9: Bottom-line Performance
Bottom-line Performance ($ in millions) Annual Quarterly $3.7 $4.0 $3.7 $3.3 $0.7 $2.8 3.3% 3.4% $0.4 3.1% 3.1% 2.5% 3.0% % of 1.5% sales FY 2011 FY 2012 FY 2013 FY 2014 Q1 FY15 Q1 FY14 Q1 FY15 TTM $0.37 $0.43 $0.49 $0.54 $0.51 EPS $0.09 $0.06 • Net income CAGR of 9.2% since FY 2011 • Repurchase app
Slide 10: Balance Sheet Supports Acquisition Strategy
Balance Sheet Supports Acquisition Strategy ($ in millions) Long Term Debt Return on Assets $10.8 7.6% 7.4% 7.3% 7.2% 6.9% $8.0 $7.6 $5.3 $3.4 FY 2011 FY 2012 FY 2013 FY 2014 Q1 FY 2015 FY 2011 FY 2012 FY 2013 FY 2014 Q1 FY 2015 Capital Expenditures • Low debt levels to facilitate acquisition strate
Slide 11: FY2015 Outlook
FY2015 Outlook Continue to Execute Strategic Plan Realize the inherent leverage in the Service segment • Grow operating income at a faster rate than revenue Maintain leading Distribution position • Margin opportunities are limited Capital allocation focused on growth initiatives • Leverage new onlin
Slide 12: Supplemental Information
SUPPLEMENTAL INFORMATION i TRANSCAT Better by every measure.
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Q1 FY15 FY 2011 FY 2012 FY 2013 FY 2014 TTM Service Operating Income (loss) $ 192 $ (175) $ 1,311 $ 2,379 $ 2,185 +Depreciation & Amortization 1,377 1,959 1,740 2,144 2,077 +Other (Expense) / Income - (37) (84) (141) (142) +Noncash Stock Comp 202 263 1
Slide 14: Contribution Margin
Contribution Margin ($ in thousands) FY 2011 FY 2012 FY 2013 FY 2014 Q1 FY15 TTM SERVICE Service Revenue $ 31,324 $ 36,406 $ 40,655 $ 48,184 $ 48,583 Cost of Service Sold 23,392 27,786 30,353 35,359 36,017 Gross Profit $ 7,932 $ 8,620 $ 10,302 $ 12,825 $ 12,566 Gross Margin 25.3% 23.7% 25.3% 26.6% 2