Transcat, Inc. · NASDAQ:TRNS
Transcat — Q1 FY2021 Earnings Presentation
14 slides from Transcat's earnings presentation, Jul 22, 2020
Slide 1: Q1 Financial Results Fiscal 2021
Q1 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: Q1 FY21 Execution
Q1 FY21 Execution Exceeded expectations: generated $1.0M in operating income Gross margin expanded 50 basis points, despite 8% decline in revenue Consolidated Achieved net income of $0.8 million, or $0.11 per diluted share Results Generated $4.0M in cash from operations TTE (which we refer to as “pi
Slide 4: Revenue
Revenue ($ in millions) Q1 Service Segment Consolidated – Annual $160.9 $173.1 $169.6 $23.0 $143.9 $155.1 $22.4 $77.4 $84.0 $93.0 $93.6 $71.1 $72.8 $77.7 $76.9 $80.1 $76.1 Q1 2020 Q1 2021 FY 2017 FY 2018 FY 2019 FY 2020 Q1 FY21 TTM Service Distribution Q1 Distribution Segment Pipettes.com contribute
Slide 5: Operating Income
Operating Income ($ in millions) Q1 Service Segment Consolidated – Annual $10.8 $1.1 $10.2 $9.9 $9.0 $7.9 $5.2 $5.7 $0.7 $5.2 $6.1 $4.8 $3.9 $5.0 $5.2 $3.8 3.3% 4.9% $3.2 Q1 2020 Q1 2021 FY 2017 FY 2018 FY 2019 FY 2020 Q1 FY21 TTM Service Distribution Q1 Distribution Segment $1.2 • Productivity impr
Slide 6: Net Income & Diluted EPS
Net Income & Diluted EPS ($ in millions, except EPS) Annual Quarterly $8.1 $7.1 $7.2 $1.7 $5.9 $4.5 $0.8 $0.64 $0.81 $0.95 $1.08 $0.95 Diluted EPS $0.23 $0.11 FY 2017 FY 2018 FY 2019 FY 2020 Q1 FY21 Q1 2020 Q1 2021 TTM • Q1 FY21 included a discrete tax benefit due to tax accounting associated with s
Slide 7: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) Q1 Service Segment Consolidated – Annual $2.9 $17.8 $18.4 $18.0 $16.4 $14.5 $2.1 $10.6 $11.1 $11.8 $10.2 $9.6 9.6% 12.5% $4.9 $6.2 $7.2 $7.4 $6.2 Q1 2020 Q1 2021 FY 2017 FY 2018 FY 2019 FY 2020 Q1 FY21 TTM Service Distribution Q1 Distribution Segment • Con
Slide 8: Flexible Balance Sheet Supports Growth Strategy
Flexible Balance Sheet Supports Growth Strategy ($ in millions) CAPITALIZATION No current or expected liquidity issues Note: Components may not add to totals due to rounding June 27, March 28, $23.6M available from credit facility as of 2020 2020 June 27, 2020 Cash and cash equivalents $ 0.4 $ 0.5 P
Slide 9: Cash Flow
Cash Flow ($ in millions) Note: Components may not add to totals $27.3M in working capital at quarter end due to rounding Three Months Ended Inventory remained stable in Q1 June 27, June 29, 2020 2019 Accounts receivable decreased $3.1 million Net cash provided by operations $ 4.0 $ 0.9 Capital inve
Slide 10: FY 2021 Outlook
FY 2021 Outlook* • Believe we are in strong position to navigate this challenging environment • Believe highly-regulated Life Science and other critical industries will continue to provide a degree of resilience • Distribution segment sales more susceptible to current economic conditions • Continuin
Slide 11: Conference Call and Webcast Playback
Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13705865 • Telephone replay available through Wednesday, July 29, 2020 • Webcast / Presentation / Replay available at http://www.transcat.com/investor-relations/ • Transcript, when available, at http://www.transcat.com/inve
Slide 12: Supplemental Information
Supplemental Information 12
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Q1 FY21 FY 2017 FY 2018 FY 2019 FY 2020 TTM Net Income $ 4,522 $ 5,922 $ 7,145 $ 8,067 $ 7,147 + Interest Expense 719 1,018 903 934 914 + Other Expense / (Income) 51 60 91 186 164 + Tax Provision 2,642 2,026 2,090 1,663 1,631 Operating Income $ 7,934 $
Slide 14: Segment Adjusted EBITDA Reconciliation
Segment Adjusted EBITDA Reconciliation ($ in thousands) Q1 FY21 FY 2017 FY 2018 FY 2019 FY 2020 TTM Service Operating Income $ 4,769 $ 5,158 $ 5,202 $ 5,672 $ 6,063 +Depreciation & Amortization 4,660 4,397 4,754 4,929 5,103 +Restructuring Expense - - - - 193 +Other (Expense) / Income (55) (61) (69)