Transcat, Inc. · NASDAQ:TRNS
Transcat — Shareholder Meeting (August 2006)
22 slides from Transcat's shareholder meeting presentation, Aug 15, 2006
Slide 1: Transcat, Inc. Annual Meeting
Transcat, Inc. Annual Meeting August 15, 2006 Carl E. Sassano Chairman and Chief Executive Officer “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements, which are subject to various risks and uncertainties. The Compa
Slide 2: Another Year of Strong Returns
Another Year of Strong Returns In fiscal year 2006, we delivered significant value to our shareholders as pre-tax earnings were more than three times the pre-tax earnings of fiscal year 2005. Copyright © 2006 - All Rights Reserved. 2
Slide 3: FY 2006 Financial Highlights
FY 2006 Financial Highlights FY 2006 FY 2005 Distribution Products Sales $40.1 $37.1 Calibration Services Sales 19.7 18.2 Net Sales 60.5 55.3 Gross Profit 15.1 13.9 Selling and Marketing Expenses Operating Expenses 13.6 13.0 Operating Income 1.5 .9 Net Income 3.6 .3 Diluted Earnings Per Share $ 0.50
Slide 4: Focus on Providing Integrated Services for Targeted Industries
Focus on Providing Integrated Services for Targeted Industries We focus on gaining business and market share in markets where companies value quality systems and/or operate in regulated environments Focus on the Process, Utility, Pharmaceutical and Electrical industries We build barriers to co
Slide 5: Distribution Products
Distribution Products Copyright © 2006 - All Rights Reserved. 5
Slide 6: Distribution Products: Business & Marketing Strategy
Distribution Products: Business & Marketing Strategy Carry the best, latest technology and comprehensive range of test and measurement instruments for pharmaceutical, process, utility and electrical industries Direct Mail Programs Master Catalog: 55,000 piece drop Supplements: ~300,000 piece
Slide 7: Distribution Products: Our Flagship Master Catalog
Distribution Products: Our Flagship Master Catalog Bible of the industry Always reinvigorating Master Catalog with new products and brands that will meet customers’ needs 2007 Master Catalog Scorecard 111 new product pages; representing 15% of 2006 Master Catalog 11 new brands Continue t
Slide 8: Distribution Products: World-Class Internet Presence
Distribution Products: World-Class Internet Presence Copyright © 2006 - All Rights Reserved. 8
Slide 9: Distribution Products: Focus on Organic Growth
Distribution Products: Focus on Organic Growth Distribution of the industry-recognized Transcat Master Catalog to identify new customers and cross-sell Calibration Services New vendors and products added, as appropriate B2B direct mail, supplement catalogs, special promotions (products, access
Slide 10: Calibration Services
Calibration Services We offer our customers expert Calibration and Repair Services for all types of calibration, test and measurement instruments to assure complete compliance to the standards that affect their industries Copyright © 2006 - All Rights Reserved. 10
Slide 11: Calibration Services: Business & Marketing Strategy
Calibration Services: Business & Marketing Strategy Target companies that value quality and expect documentation of work performed Identify companies with in-house calibration operations and present benefits of outsourcing to Transcat Generally less expensive as Transcat Calibration Services c
Slide 12: Calibration Services: Solid Results in FY 06 & FY 07/Q1
Calibration Services: Solid Results in FY 06 & FY 07/Q1 Strategic acquisition program has expanded Calibration Centers of Excellence to twelve. In April, 2005, acquired assets of Hilton Engineering’s calibration services facility in San Juan, Puerto Rico In February 2006, acquired N.W. Calibra
Slide 13: Building Our Distribution Products & Calibration Services Businesses in Fiscal 2007
Transcat, Inc. Building Our Distribution Products & Calibration Services Businesses in Fiscal 2007 Copyright © 2006 - All Rights Reserved. 13
Slide 14: FY 2007/Q1 Financial Highlights
FY 2007/Q1 Financial Highlights Q1/FY 2007 Q1/FY 2006 Distribution Products Sales $ 10.6 $ 9.4 Calibration Services Sales 5.0 4.7 Net Sales 15.5 14.1 Gross Profit 3.9 3.6 Operating Expenses 3.6 3.3 Operating Income .4 .3 Net Income .2 .2 Diluted Earnings Per Share $ 0.02 $ 0.02 Copyright © 2006 - Al
Slide 15: Accounts Receivable & DSO
Accounts Receivable & DSO (in millions – DSO based on 60 days) FY 2007 $9 120 Trend $8 110 $7 100 ' Accounts Receivable $6 90 $5 80 DSO $4 70 $3 60 $2 50 $1 40 Â $0 30 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 /Q /Q /Q /Q /Q /Q /Q /Q /Q /Q /Q /Q /Q /Q /Q /Q /Q 03 03 03 03 04 04 04 04 05 05 05 05 06 06 06 06
Slide 16: Inventories and Debt
FY FY $2 $3 $4 $5 $6 $4 $6 $8 $10 03 03 /Q /Q FY 1 FY 1 03 03 /Q /Q FY 2 FY 2 03 03 /Q /Q FY 3 FY 3 03 03 /Q /Q FY 4 FY 4 Copyright © 2006 - All Rights Reserved. 04 04 /Q /Q (in millions) FY 1 FY 1 04 04 /Q /Q FY 2 FY 2 04 04 /Q /Q FY 3 FY 3 04 04 /Q /Q FY 4 FY 4 05 05 /Q /Q FY 1 FY 1 05 05 /Q /Q FY
Slide 17: FY 2007 Outlook
FY 2007 Outlook Will build on the solid foundation that has been established over the previous four years, with continued steady growth in revenues. Anticipate that business overall will experience growth in fiscal year 2007 similar to that of fiscal year 2006. Distribution Products revenues i
Slide 18: Expanding Our Market Penetration in FY 2007
Expanding Our Market Penetration in FY 2007 Continue to evaluate other catalog and calibration opportunities Focus on quality, customer-oriented culture, calibration disciplines, and distribution products that meet customer needs Continue cultivating relationships with key regional players in
Slide 19: FY 2007 Outlook: Other Items
FY 2007 Outlook: Other Items Certain FY 2007 expenses, necessitated by accounting requirements, will affect operating and net earnings in certain quarters Adoption of SFAS 123R – Expensing of Stock Options: Greatest impact in FY 2007/Q1 with recording of expense associated with unvested outstand
Slide 20: Transcat 2007: The Front Line
Transcat 2007: The Front Line Carl A. Sassano – Chairman and Chief Executive Officer Charles P. Hadeed – promoted to President in FY 2006, in addition to his position as Chief Operating Officer John A. De Voldre - Vice President of Human Resources Robert C. Maddamma - Vice President of Custo
Slide 21: Transcat 2007
Transcat 2007 Profitable business model established Solid growth in sales and earnings in line with overall strategy Investment in people and equipment as customer demand dictates Copyright © 2006 - All Rights Reserved. 21
Slide 22: For Additional Information
For Additional Information To receive additional information about Transcat, please contact: Charles P. Hadeed Van Negris or President and COO Lexi Terrero Transcat, Inc. Van Negris & Co., Inc. 35 Vantage Point Drive 1120 Avenue of the Rochester, NY 14624 Americas - Suite 4100 Tel: 585-352-7777 New