Transcat, Inc. · NASDAQ:TRNS
Transcat — Q3 FY2017 Earnings Presentation
13 slides from Transcat's earnings presentation, Jan 31, 2017
Slide 1: Q3 Financial Results Fiscal 2017
Q3 Financial Results Fiscal 2017 Lee D. Rudow President and CEO Michael J. Tschiderer Chief Financial Officer TRANSGAT Trust in every measure
Slide 2: Safe Harbor Statement
TRANSCAT sts vy mess 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.
Slide 3: Third Quarter Execution
Third Quarter Execution Record consolidated and Service segment revenue © Total consolidated revenue up 25% to record $37.8 million * Total operating income increased 40% to $2.4 million * Service segment revenue of $17.5 million, up 25% ¢ 31% consecutive quarter of YOY revenue growth in Service seg
Slide 4: Revenue
TRANSCAT sti very measure Revenue ($ in millions) i Consolidated — Annual Q3 Service Segment $138.3 $17.5 $112.3 $118.5 $123.6 $122.2 ' wl - 7 = ii = Q3 FY 2016 Q3 FY 2017 FY 2013 FY 2014 FY 2015 FY 2016 Q3 FY 2017 TM ae ld Service —_f- Distribution Q3 Distribution Segment * Solid organic revenue gr
Slide 5: Operating Income and Margin
TRANSCAT ‘srstin overy moasure Operating Income and Margin ($ in millions) Consolidated — Annual Q3 Service Segment $7.6 6.8 ; - : = “ a “| Q3 FY 2016 Q3 FY 2017 FY 2013 FY 2014 Fy 2015 FY2016 Q3. ae 2017 il Service tl Distribution Q3 Distribution Segment * Consolidated operating margin expanded 60
Slide 6: Adjusted EBITDA and Margin
TRANSAT tiustin every measure Adjusted EBITDA* and Margin ($ in millions) Consolidated — Annual Q3 Service Segment $13.8 $24 39 «$10.0«S «$10.3 «$10.6 ae a3 FY 2016 Onn FY2013 = FY2014. «= FY 2015 FY2016 Q3 FY 2017 T™™ il Service tl Distribution Q2 Distribution Segment * Total Adjusted EBITDA* up 47
Slide 7: Net Income
TRANSCAT sti very measure Net Income ($ in millions) Annual Net Income & Diluted EPS Quarterly Net Income & Diluted EPS $4.6 $4.0 $4.0 $4.1 $3.7 eis f $11 7 FY2013 FY2014. «= FY2015 = FY2016 © Q3 FY 2017 Q3 FY 2016 Q3 FY 2017 T™ * 6% CAGR for net income (ry 2013 - Q3 FY 2017 TTM) * Expect tax rate t
Slide 8: Balance Sheet Supports Growth Strategy
TRANSCAT sti very measure Balance Sheet Supports Growth Strategy ($ in millions) Total Debt $26.2 $19.1 $12.2 = al 1 ol Lo 2013 FY 2014 FY 2015 FY2016 Q3FY 2017 Capital Expenditures $5.0- $5.5 $3.5 cael $2.7 ee | FY 2013 Fy 2014 FY 2015 Fy 2016 FY 2017* * FY 2017 capital expenditure guidance provide
Slide 9: FY 2017 Outlook
TRANSAT tustin every ‘measure FY 2017 Outlook* ¢ Reaffirm solid organic growth in the Service segment - Gross and operating margins leverage to continue - Remain selective and disciplined in acquisition approach * Optimistic Distribution segment performance will continue - Continue to expand high-ma
Slide 10: Upcoming Investor Relations Calendar
TRANSCAT ust ovry measure Upcoming Investor Relations Calendar March 13-15 Roth Conference (Dana Point, CA) March 29 Sidoti Spring Conference (NYC) May 17-18
Slide 11: Supplemental Information
Supplemental Information TRANSGAT Trust in every measure
Slide 12: Adjusted EBITDA Reconciliation
TRANSCAT rusts ny nse Adjusted EBITDA Reconciliation (Sin thousands) Q3 FY 2017 FY 2013 Fy 2014 FY 2015, FY 2016 ™ Net income $ 3708 $ 3984 $ 4025 $ 4124 $ 4587 + Interest 17 130 234 247 595 + Other Expense / (Income) rte 129 rte 48 54 + Tax Provision 2,014 2,462 2,397 1,883 2,356 Operating Income $
Slide 13: Segment Adjusted EBITDA Reconciliation
TRANSCAT rusts ny nse Segment Adjusted EBITDA Reconciliation (Sin thousands) Q3 FY 2017 FY 2013 FY 2014 FY 2015 FY 2016 7™ Service Operating Income (loss) $ 1311 $ 2,379 $3693 $ 4155 $ 4647 +Depreciation & Amortization 1,740 2144 2,362 3,216 4,610 +Other (Expense) / Income (84) (141) (138) (64) (54)