Transcat, Inc. · NASDAQ:TRNS
Transcat — Q2 2016 Earnings Presentation
12 slides from Transcat's earnings presentation, Oct 27, 2015
Slide 1: Q2 Financial Results Fiscal 2016
Q2 Financial Results Fiscal 2016 Lee D. Rudow President and CEO John J. Zimmer Senior VP of Finance and CFO 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 that often are identif
Slide 3: Second Quarter Results
Second Quarter Results Revenue of $29.5 million • Service segment revenue up 12.7% • 26th consecutive quarter of YOY revenue growth in our Service segment • Acquisitions continue to contribute • Distribution segment impacted by significant decline in oil & gas industry and strong U.S. dollar Strong
Slide 4: Top-line
Top-line ($ in millions) 3% CAGR* Q2 Service Segment Consolidated – Annual $14.2 $112.3 $118.5 $123.6 $122.5 $12.6 $110.0 $36.4 $40.7 $48.2 $51.8 $54.8 $73.6 $71.6 $70.3 $71.8 $67.7 Q2 FY 2015 Q2 FY 2016 FY 2012 FY 2013 FY 2014 FY 2015 Q2 FY 2016 TTM Service Distribution Q2 Distribution Segment • To
Slide 5: Operating Income and Margin
Operating Income and Margin ($ in millions) 7% CAGR* Q2 Service Segment Consolidated – Annual $0.8 $6.7 $6.8 $6.9 $0.7 $5.4 $5.9 $1.3 $2.4 $(0.2) $3.7 $4.2 $5.6 $4.6 $4.3 $3.1 $2.6 5.3% 5.9% Q2 FY 2015 Q2 FY 2016 FY 2012 FY 2013 FY 2014 FY 2015 Q2 FY 2016 TTM Service Distribution Q2 Distribution Seg
Slide 6: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) 6% CAGR** Q2 Service Segment Consolidated – Annual $1.6 $1.3 $10.0 $10.3 $10.7 $8.8 $8.9 $2.0 $3.1 $4.6 $6.1 $7.0 $6.8 $5.8 $5.4 10.0% 11.3% $4.1 $3.7 Q2 FY 2015 Q2 FY 2016 FY 2012 FY 2013 FY 2014 FY 2015 Q2 FY 2016 TTM Service Distribution Q2 Distribution
Slide 7: Bottom-line
Bottom-line ($ in millions) Annual Net Income Quarterly Net Income $4.0 $4.0 $4.2 $3.7 $0.9 $0.9 $3.3 3.3% 3.4% 3.3% 3.4% 3.0% % of Revenue 2.8% 3.0% FY 2012 FY 2013 FY 2014 FY 2015 Q2 FY 2016 Q2 FY 2015 Q2 FY 2016 TTM Diluted $0.12 $0.12 $0.43 $0.49 $0.54 $0.57 $0.59 EPS • 7% CAGR for net income (F
Slide 8: Balance Sheet Supports Acquisition Strategy
Balance Sheet Supports Acquisition Strategy ($ in millions) Long-term Debt • Revolving credit facility: $12.2 $12.0 $17.5 million available $8.0 $7.6 • FY 2016 CapEx $3.4 – Increasing lab capabilities – Adding lab capacity FY 2012 FY 2013 FY 2014 FY 2015 Q2 FY 2016 – Assets for rental business • Fin
Slide 9: FY 2016 Outlook and Long-term Objectives
FY 2016 Outlook* • Expect double-digit Service segment revenue growth − Acquisition pipeline remains strong − Adding new capabilities in strategic markets • Challenging conditions for Distribution market • Consolidated operating income growth in the low double-digits Long-term Objectives • Service s
Slide 10: Upcoming Investor Relations Calendar
Upcoming Investor Relations Calendar November 12 Drexel Hamilton Micro-Cap Conf (NYC) Late January 2016 Q3 FY 2016 Financial Results 10
Slide 11: Supplemental Information
SUPPLEMENTAL INFORMATION TRANSCAT Better by every measure
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Q2 FY 2016 FY 2012 FY 2013 FY 2014 FY 2015 TTM Service Operating Income (loss) $ (175) $ 1,311 $ 2,379 $ 3,693 $ 4,246 +Depreciation & Amortization 1,959 1,740 2,144 2,362 2,694 +Other (Expense) / Income (37) (84) (141) (138) (76) +Noncash Stock Comp 2