Transcat, Inc. · NASDAQ:TRNS
Transcat — Q1 FY2016 Earnings Presentation
15 slides from Transcat's earnings presentation, Jul 29, 2015
Slide 1: Q1 Financial Results Fiscal 2016
Q1 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: First Quarter Execution
First Quarter Execution Revenue of $29.7 million • Service segment revenue up 11.5% • Winning new customers: sales strategies and team are working • Maintaining high retention rate • Acquisitions continue to contribute • Strong new business pipeline Consolidated operating income up 35% on 2% revenue
Slide 4: Top-line Growth
Top-line Growth ($ in millions) 4% CAGR* Q1 Service Segment Consolidated – Annual $13.5 $112.3 $118.5 $123.6 $124.2 $12.1 $110.0 $36.4 $40.7 $48.2 $51.8 $53.2 $73.6 $71.6 $70.3 $71.8 $71.0 Q1 FY 2015 Q1 FY 2016 FY 2012 FY 2013 FY 2014 FY 2015 Q1 FY 2016 TTM Service Distribution Q1 Distribution Segme
Slide 5: Operating Income and Margin
Operating Income and Margin ($ in millions) 8% CAGR* Q1 Service Segment Consolidated – Annual $0.6 $6.7 $6.8 $7.0 $5.4 $5.9 $0.3 $1.3 $2.4 $4.0 $(0.2) $3.7 $5.6 $4.6 $4.3 $3.1 $3.0 2.2% 4.8% Q1 FY 2015 Q1 FY 2016 FY 2012 FY 2013 FY 2014 FY 2015 Q1 FY 2016 TTM Service Distribution Q1 Distribution Seg
Slide 6: Contribution Margin and % of Revenue
Contribution Margin* and % of Revenue ($ in millions) 5% CAGR** Q1 Service Segment Consolidated – Annual $1.9 $14.4 $15.7 $15.2 $15.8 $1.3 $13.4 $3.2 $5.2 $6.1 $7.5 $8.1 $10.2 $9.2 $9.6 $7.7 $7.7 10.3% 13.8% Q1 FY 2015 Q1 FY 2016 FY 2012 FY 2013 FY 2014 FY 2015 Q1 FY 2016 TTM Service Distribution Q1
Slide 7: Adjusted EBITDA and Margin
Adjusted EBITDA* and Margin ($ in millions) 6% CAGR** Q1 Service Segment Consolidated – Annual $1.4 $10.7 $10.0 $10.3 $8.8 $8.9 $0.8 $2.0 $4.6 $3.1 $6.1 $6.7 $6.8 $5.8 $5.4 6.7% 10.1% $4.1 $4.0 Q1 FY 2015 Q1 FY 2016 FY 2012 FY 2013 FY 2014 FY 2015 Q1 FY 2016 TTM Service Distribution Q1 Distribution
Slide 8: Bottom-line Performance
Bottom-line Performance ($ in millions) Annual Net Income Quarterly Net Income $4.0 $4.0 $4.2 $3.7 $3.3 $0.6 $0.4 3.3% 3.4% 3.3% 3.4% 3.0% % of 2.0% Revenue 1.5% FY 2012 FY 2013 FY 2014 FY 2015 Q1 FY 2016 Q1 FY 2015 Q1 FY 2016 TTM Diluted $0.06 $0.08 $0.43 $0.49 $0.54 $0.57 $0.59 EPS • 8% CAGR for n
Slide 9: Balance Sheet Supports Acquisition Strategy
Balance Sheet Supports Acquisition Strategy ($ in millions) Long Term Debt • Revolving credit facility: $12.2 $11.5 $18.0 million available $8.0 $7.6 • FY 2016 CapEx $3.4 – Increasing lab capabilities – Adding lab capacity FY 2012 FY 2013 FY 2014 FY 2015 Q1 FY 2016 – Assets for rental business • Fin
Slide 10: Generating Cash to Drive Key Investments
Generating Cash to Drive Key Investments Historical Trailing 12 Month Key Investments and Current Quarter Debt Balance ($ in thousands) $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 ROIC (TTM) 10.6
Slide 11: FY 2016 Outlook
FY 2016 Outlook* • Expect double-digit Service segment revenue growth − Acquisitions − E-commerce platform and C3 Asset Management Software − Life science market expanding − Enterprise sales strategy is working • Capture Distribution market share − Expanding number of product offerings − Adding vend
Slide 12: Upcoming Investor Relations Calendar
Upcoming Investor Relations Calendar August 27 IDEAS Conference (Chicago) September 2 Sidoti 2015 Micro-Cap Conference (NYC) September 9 Annual Meeting (Rochester, NY) Late October Q2 FY 2016 Earnings Results 12
Slide 13: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Q1 FY 2016 FY 2012 FY 2013 FY 2014 FY 2015 TTM Service Operating Income (loss) $ (175) $ 1,311 $ 2,379 $ 3,693 $ 4,072 +Depreciation & Amortization 1,959 1,740 2,144 2,362 2,554 +Other (Expense) / Income (37) (84) (141) (138) (162) +Noncash Stock Comp
Slide 15: Contribution Margin Calculation
Contribution Margin Calculation ($ in thousands) Q1 FY 2016 FY 2012 FY 2013 FY 2014 FY 2015 SERVICE TTM Service Revenue $ 36,406 $ 40,655 $ 48,184 $ 51,801 $ 53,198 Cost of Revenue 27,786 30,353 35,359 37,698 38,501 Gross Profit $ 8,620 $ 10,302 $ 12,825 $ 14,103 $ 14,697 Gross Margin 23.7% 25.3% 26