Transcat Reports Strong First Quarter Results with Significant Gross Margin Expansion and EBITDA Growth
- Consolidated Gross Profit grew 21.1% on double-digit Revenue growth
- Distribution gross margins expanded 620 basis points on strength of rentals
- Service gross margins expanded 150 basis points on organic growth of 6.4% and improved productivity
- Consolidated adjusted EBITDA grew 20.4% with margins expanding 130 basis points
“We are pleased with our strong first quarter results as gross margins expanded 310 basis points versus prior year from increased Service productivity and growth in Rentals in the Distribution segment. Consolidated revenue was up 10% driven by consistent demand in highly regulated end markets, our successful integration of acquired companies, and widened breadth of offerings,” commented
First Quarter Fiscal 2025 Review
(Results are compared with the first quarter of the fiscal year ended
($ in thousands) |
|
|
|
|
|
|
|
|
|
Change |
||||||
|
|
FY25 Q1 |
|
FY24 Q1 |
|
$'s |
|
% |
||||||||
Service Revenue |
|
$ |
43,778 |
|
|
$ |
39,853 |
|
|
$ |
3,925 |
|
|
|
9.8 |
% |
Distribution Sales |
|
|
22,929 |
|
|
|
20,745 |
|
|
|
2,184 |
|
|
|
10.5 |
% |
Revenue |
|
$ |
66,707 |
|
|
$ |
60,598 |
|
|
$ |
6,109 |
|
|
|
10.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
$ |
22,655 |
|
|
$ |
18,710 |
|
|
$ |
3,945 |
|
|
|
21.1 |
% |
Gross Margin |
|
|
34.0 |
% |
|
|
30.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
5,099 |
|
|
$ |
4,640 |
|
|
$ |
459 |
|
|
|
9.9 |
% |
Operating Margin |
|
|
7.6 |
% |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
4,408 |
|
|
$ |
2,949 |
|
|
$ |
1,459 |
|
|
|
49.5 |
% |
|
|
|
6.6 |
% |
|
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA* |
|
$ |
10,212 |
|
|
$ |
8,481 |
|
|
$ |
1,731 |
|
|
|
20.4 |
% |
Adjusted EBITDA* Margin |
|
|
15.3 |
% |
|
|
14.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS |
|
$ |
0.48 |
|
|
$ |
0.38 |
|
|
$ |
0.10 |
|
|
|
26.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS* |
|
$ |
0.68 |
|
|
$ |
0.52 |
|
|
$ |
0.16 |
|
|
|
30.8 |
% |
*See Note 1 on page 5 for a description of these non-GAAP financial measures and pages 10, 11 and 12 for the reconciliation tables. |
Consolidated revenue was
Service segment delivers strong first quarter results
Represents the accredited calibration, repair, inspection and laboratory instrument services business (65.6% of total revenue for the third quarter of fiscal 2024).
($ in thousand) |
|
|
|
|
|
|
|
|
|
Change |
||||||
|
|
FY25 Q1 |
|
FY24 Q1 |
|
$'s |
|
% |
||||||||
Service Segment Revenue |
|
$ |
43,778 |
|
|
$ |
39,853 |
|
|
$ |
3,925 |
|
|
|
9.8 |
% |
Gross Profit |
|
$ |
14,883 |
|
|
$ |
12,971 |
|
|
$ |
1,912 |
|
|
|
14.7 |
% |
Gross Margin |
|
|
34.0 |
% |
|
|
32.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
4,090 |
|
|
$ |
3,192 |
|
|
$ |
898 |
|
|
|
28.1 |
% |
Operating Margin |
|
|
9.3 |
% |
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA* |
|
$ |
6,964 |
|
|
$ |
6,232 |
|
|
$ |
732 |
|
|
|
11.7 |
% |
Adjusted EBITDA* Margin |
|
|
15.9 |
% |
|
|
15.6 |
% |
|
|
|
|
|
|
|
|
*See Note 1 on page 5 for a description of this non-GAAP financial measure and pages 10 and 11 for the Adjusted EBITDA Reconciliation tables. |
Service segment revenue was
Distribution segment shows continued margin improvement
Represents the sale and rental of new and used professional grade handheld test, measurement and control instrumentation (34.4% of total revenue for the third quarter of fiscal 2024).
($ in thousands) |
|
|
|
|
|
|
|
|
|
Change |
||||||
|
|
FY25 Q1 |
|
FY24 Q1 |
|
$'s |
|
% |
||||||||
Distribution Segment Sales |
|
$ |
22,929 |
|
|
$ |
20,745 |
|
|
$ |
2,184 |
|
|
|
10.5 |
% |
Gross Profit |
|
$ |
7,772 |
|
|
$ |
5,739 |
|
|
$ |
2,033 |
|
|
|
35.4 |
% |
Gross Margin |
|
|
33.9 |
% |
|
|
27.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
1,009 |
|
|
$ |
1,448 |
|
|
$ |
(439 |
) |
|
|
(30.3 |
)% |
Operating Margin |
|
|
4.4 |
% |
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA* |
|
$ |
3,248 |
|
|
$ |
2,249 |
|
|
$ |
999 |
|
|
|
44.4 |
% |
Adjusted EBITDA* Margin |
|
|
14.2 |
% |
|
|
10.8 |
% |
|
|
|
|
|
|
|
|
*See Note 1 on page 5 for a description of this non-GAAP financial measure and pages 10 and 11 for the Adjusted EBITDA Reconciliation tables. |
Distribution sales were
Balance Sheet and Cash Flow Overview
On
Outlook
Webcast and Conference Call
A telephonic replay will be available from
NOTE 1 – Non-GAAP Financial Measures
In addition to reporting net income, a
In addition to reporting Diluted Earnings Per Share, a GAAP measure, we present Adjusted Diluted Earnings Per Share (net income plus acquisition related amortization expense, acquisition related transaction expenses, acquisition related stock-based compensation, acquisition amortization of backlog and restructuring expense; divided by the average diluted shares outstanding during the period), which is a non-GAAP measure. Our management believes Adjusted Diluted Earnings Per Share is an important measure of our operating performance because it provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted Diluted Earnings Per Share is not a measure of financial performance under GAAP and is not calculated through the application of GAAP. As such, it should not be considered as a substitute or alternative for the GAAP measure of Diluted Earnings Per Share and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. Adjusted Diluted Earnings Per Share, as presented, may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies. See page 12 for the Adjusted Diluted EPS Reconciliationtable.
ABOUT
Transcat’s strategy is to leverage its strong brand and unique value proposition that includes its comprehensive instrument service capabilities, enterprise asset management, and leading distribution platform to drive organic sales growth. The Company will also look to expand its addressable calibration market through acquisitions and capability investments to further realize the inherent leverage of its business model. More information about
Safe Harbor Statement
This news release 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 statements relate to expectations, estimates, beliefs, assumptions and predictions of future events and are identified by words such as “aim,” “anticipates,” “believes,” “can,” “could,” “designed,” “estimates,” “expects,” “focus,” “goal,” “intends,” “may,” “plan,” “outlook,” “potential,” “seek,” “strategy,” “strive,” “target,” “will,” “would,” and other similar words. All statements addressing operating performance, events or developments that
FINANCIAL TABLES FOLLOW.
CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Per Share Amounts) |
||||||||
|
(Unaudited) |
|
||||||
|
|
First Quarter Ended |
|
|||||
|
|
|
|
|
|
|
||
|
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
|
|
|
Service Revenue |
|
$ |
43,778 |
|
|
$ |
39,853 |
|
Distribution Sales |
|
|
22,929 |
|
|
|
20,745 |
|
Total Revenue |
|
|
66,707 |
|
|
|
60,598 |
|
|
|
|
|
|
|
|
|
|
Cost of Service Revenue |
|
|
28,895 |
|
|
|
26,882 |
|
Cost of Distribution Sales |
|
|
15,157 |
|
|
|
15,006 |
|
Total Cost of Revenue |
|
|
44,052 |
|
|
|
41,888 |
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
22,655 |
|
|
|
18,710 |
|
|
|
|
|
|
|
|
|
|
Selling, Marketing and Warehouse Expenses |
|
|
7,801 |
|
|
|
6,469 |
|
General and Administrative Expenses |
|
|
9,755 |
|
|
|
7,601 |
|
Total Operating Expenses |
|
|
17,556 |
|
|
|
14,070 |
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
5,099 |
|
|
|
4,640 |
|
|
|
|
|
|
|
|
|
|
Interest Expense |
|
|
52 |
|
|
|
814 |
|
Interest Income |
|
|
(312 |
) |
|
|
- |
|
Other Expense |
|
|
131 |
|
|
|
64 |
|
Total Interest and Other |
|
|
(129 |
) |
|
|
878 |
|
|
|
|
|
|
|
|
|
|
Income Before Provision For Income Taxes |
|
|
5,228 |
|
|
|
3,762 |
|
Provision for Income Taxes |
|
|
820 |
|
|
|
813 |
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
4,408 |
|
|
$ |
2,949 |
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Share |
|
$ |
0.49 |
|
|
$ |
0.39 |
|
Average Shares Outstanding |
|
|
9,064 |
|
|
|
7,622 |
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share |
|
$ |
0.48 |
|
|
$ |
0.38 |
|
Average Shares Outstanding |
9,196 |
7,762 |
CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share and Per Share Amounts) |
||||||||
|
|
|
|
|||||
|
|
(Unaudited) |
|
|
(Audited) |
|
||
|
|
|
|
|
|
|
||
|
|
2024 |
|
|
2024 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash and Cash Equivalents |
|
$ |
22,657 |
|
|
$ |
19,646 |
|
|
|
|
- |
|
|
$ |
15,533 |
|
Accounts Receivable, less allowance for credit losses of |
|
|
48,156 |
|
|
|
47,779 |
|
Other Receivables |
|
|
242 |
|
|
|
506 |
|
Inventory, net |
|
|
18,128 |
|
|
|
17,418 |
|
Prepaid Expenses and Other Current Assets |
|
|
5,070 |
|
|
|
4,276 |
|
Total Current Assets |
|
|
94,253 |
|
|
|
105,158 |
|
Property and Equipment, net |
|
|
45,954 |
|
|
|
38,944 |
|
|
|
|
138,146 |
|
|
|
105,585 |
|
Intangible Assets, net |
|
|
26,254 |
|
|
|
19,987 |
|
Right to Use Assets, net |
|
|
17,996 |
|
|
|
16,823 |
|
Other Assets |
|
|
1,049 |
|
|
|
1,055 |
|
Total Assets |
|
$ |
323,652 |
|
|
$ |
287,552 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts Payable |
|
$ |
13,076 |
|
|
$ |
11,495 |
|
Accrued Compensation and Other Current Liabilities |
|
|
12,677 |
|
|
|
16,739 |
|
Income Taxes Payable |
|
|
3,687 |
|
|
|
2,926 |
|
Current Portion of Long-Term Debt |
|
|
2,362 |
|
|
|
2,339 |
|
Total Current Liabilities |
|
|
31,802 |
|
|
|
33,499 |
|
Long-Term Debt |
|
|
1,218 |
|
|
|
1,817 |
|
Deferred Tax Liabilities, net |
|
|
9,287 |
|
|
|
9,291 |
|
Lease Liabilities |
|
|
15,400 |
|
|
|
14,873 |
|
Other Liabilities |
|
|
3,657 |
|
|
|
2,903 |
|
Total Liabilities |
|
|
61,364 |
|
|
|
62,383 |
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
|
|
|
|
Common Stock, par value |
|
|
4,572 |
|
|
|
4,420 |
|
Capital in Excess of Par Value |
|
|
175,299 |
|
|
|
141,624 |
|
Accumulated Other Comprehensive Loss |
|
|
(1,104 |
) |
|
|
(949 |
) |
Retained Earnings |
|
|
83,521 |
|
|
|
80,074 |
|
Total Shareholders' Equity |
|
|
262,288 |
|
|
|
225,169 |
|
Total Liabilities and Shareholders' Equity |
|
$ |
323,652 |
|
|
$ |
287,552 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) |
||||||||
|
|
(Unaudited) |
||||||
|
|
Three Months Ended |
||||||
|
|
|
|
|
||||
|
|
2024 |
|
2023 |
||||
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
Net Income |
|
$ |
4,408 |
|
|
$ |
2,949 |
|
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
(4 |
) |
|
|
8 |
|
Deferred Income Taxes |
|
|
(4 |
) |
|
|
44 |
|
Depreciation and Amortization |
|
|
4,113 |
|
|
|
2,790 |
|
(Recovery of)/Provision for Accounts Receivable and Inventory Reserves |
|
|
(89 |
) |
|
|
138 |
|
Stock-Based Compensation Expense |
|
|
697 |
|
|
|
930 |
|
Changes in Assets and Liabilities, net of acquisitions: |
|
|
|
|
|
|
|
|
Accounts Receivable and Other Receivables |
|
|
2,814 |
|
|
|
3,115 |
|
Inventory |
|
|
(235 |
) |
|
|
1,950 |
|
Prepaid Expenses and Other Current Assets |
|
|
(687 |
) |
|
|
531 |
|
Accounts Payable |
|
|
1,425 |
|
|
|
(4,315 |
) |
Accrued Compensation and Other Current Liabilities |
|
|
(4,273 |
) |
|
|
(1,203 |
) |
Income Taxes Payable |
|
|
759 |
|
|
|
599 |
|
Net Cash Provided by Operating Activities |
|
|
8,924 |
|
|
|
7,536 |
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
Purchase of Property and Equipment |
|
|
(3,674 |
) |
|
|
(2,767 |
) |
Proceeds from Sale of Property and Equipment |
|
|
- |
|
|
|
- |
|
Business Acquisitions, net of cash acquired |
|
|
(15,953 |
) |
|
|
(2,869 |
) |
Sales of |
|
|
15,533 |
|
|
|
- |
|
|
|
|
(4,094 |
) |
|
|
(5,636 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
Repayment of Revolving Credit Facility, net |
|
|
- |
|
|
|
(204 |
) |
Repayments of Term Loan |
|
|
(576 |
) |
|
|
(553 |
) |
Issuance of Common Stock, net of direct costs |
|
|
260 |
|
|
|
199 |
|
Repurchase of Common Stock |
|
|
(1,619 |
) |
|
|
(301 |
) |
|
|
|
(1,935 |
) |
|
|
(859 |
) |
|
|
|
|
|
|
|
|
|
Effect of Exchange Rate Changes on Cash and Cash Equivalents |
|
|
116 |
|
|
|
(423 |
) |
|
|
|
|
|
|
|
|
|
Net Increase in Cash and Cash Equivalents |
|
|
3,011 |
|
|
|
618 |
|
Cash and Cash Equivalents at Beginning of Period |
|
|
19,646 |
|
|
|
1,531 |
|
Cash and Cash Equivalents at End of Period |
|
$ |
22,657 |
|
|
$ |
2,149 |
|
Adjusted EBITDA Reconciliation Table (In thousands) (Unaudited) |
||||||||||||||||||||
|
|
Fiscal 2025 |
|
|||||||||||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||||||
Net Income |
|
$ |
4,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
4,408 |
|
+ Interest Income |
|
|
(260 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(260 |
) |
+ Other Expense / (Income) |
|
|
131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
131 |
|
+ Tax Provision |
|
|
820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
820 |
|
Operating Income |
|
$ |
5,099 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
5,099 |
|
+ Depreciation & Amortization |
|
|
4,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,113 |
|
+ Transaction Expenses |
|
|
434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
434 |
|
+ Acquisition Earn-Out Adjustment |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
+ Other (Expense) / Income |
|
|
(131 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(131 |
) |
+ Noncash Stock Compensation |
|
|
697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
697 |
|
Adjusted EBITDA |
|
$ |
10,212 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
10,212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Breakdown |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service Operating Income |
|
$ |
4,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
4,091 |
|
+ Depreciation & Amortization |
|
|
2,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,402 |
|
+ Transaction Expenses |
|
|
146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
146 |
|
+ Other (Expense) / Income |
|
|
(96 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(96 |
) |
+ Noncash Stock Compensation |
|
|
421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
421 |
|
Service Adjusted EBITDA |
|
$ |
6,964 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
6,964 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Operating Income |
|
$ |
1,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,008 |
|
+ Depreciation & Amortization |
|
|
1,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,711 |
|
+ Transaction Expenses |
|
|
288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
288 |
|
+ Other (Expense) / Income |
|
|
(35 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(35 |
) |
+ Noncash Stock Compensation |
|
|
276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
276 |
|
Distribution Adjusted EBITDA |
|
$ |
3,248 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
3,248 |
|
Adjusted EBITDA Reconciliation Table (In thousands) (Unaudited) |
||||||||||||||||||||
|
|
Fiscal 2024 |
|
|||||||||||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||||||
Net Income |
|
$ |
2,949 |
|
|
$ |
460 |
|
|
$ |
3,348 |
|
|
$ |
6,890 |
|
|
$ |
13,647 |
|
+ Interest Expense / (Income) |
|
|
814 |
|
|
|
890 |
|
|
|
(266 |
) |
|
|
(411 |
) |
|
|
1,027 |
|
+ Other Expense / (Income) |
|
|
64 |
|
|
|
(49 |
) |
|
|
289 |
|
|
|
11 |
|
|
|
315 |
|
+ Tax Provision |
|
|
813 |
|
|
|
342 |
|
|
|
923 |
|
|
|
2,714 |
|
|
|
4,792 |
|
Operating Income |
|
$ |
4,640 |
|
|
$ |
1,643 |
|
|
$ |
4,294 |
|
|
$ |
9,204 |
|
|
$ |
19,781 |
|
+ Depreciation & Amortization |
|
|
2,790 |
|
|
|
3,269 |
|
|
|
3,783 |
|
|
|
3,635 |
|
|
|
13,477 |
|
+ Transaction Expenses |
|
|
185 |
|
|
|
328 |
|
|
|
78 |
|
|
|
37 |
|
|
|
628 |
|
+ Acquisition Earn-Out Adjustment |
|
|
- |
|
|
|
2,800 |
|
|
|
87 |
|
|
|
(2,357 |
) |
|
|
530 |
|
+ Other (Expense) / Income |
|
|
(64 |
) |
|
|
49 |
|
|
|
(289 |
) |
|
|
(11 |
) |
|
|
(315 |
) |
+ Noncash Stock Compensation |
|
|
930 |
|
|
|
1,241 |
|
|
|
1,167 |
|
|
|
1,174 |
|
|
|
4,512 |
|
Adjusted EBITDA |
|
$ |
8,481 |
|
|
$ |
9,330 |
|
|
$ |
9,120 |
|
|
$ |
11,682 |
|
|
$ |
38,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Breakdown |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service Operating Income |
|
$ |
3,192 |
|
|
$ |
742 |
|
|
$ |
2,966 |
|
|
$ |
8,144 |
|
|
$ |
15,044 |
|
+ Depreciation & Amortization |
|
|
2,226 |
|
|
|
2,325 |
|
|
|
2,362 |
|
|
|
2,280 |
|
|
|
9,193 |
|
+ Transaction Expenses |
|
|
185 |
|
|
|
76 |
|
|
|
30 |
|
|
|
(44 |
) |
|
|
247 |
|
+ Acquisition Earn-Out Adjustment |
|
|
- |
|
|
|
2,800 |
|
|
|
87 |
|
|
|
(2,357 |
) |
|
|
530 |
|
+ Other (Expense) / Income |
|
|
(47 |
) |
|
|
29 |
|
|
|
(203 |
) |
|
|
(18 |
) |
|
|
(239 |
) |
+ Noncash Stock Compensation |
|
|
676 |
|
|
|
826 |
|
|
|
737 |
|
|
|
736 |
|
|
|
2,975 |
|
Service Adjusted EBITDA |
|
$ |
6,232 |
|
|
$ |
6,798 |
|
|
$ |
5,979 |
|
|
$ |
8,741 |
|
|
$ |
27,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Operating Income |
|
$ |
1,448 |
|
|
$ |
901 |
|
|
$ |
1,328 |
|
|
$ |
1,060 |
|
|
$ |
4,737 |
|
+ Depreciation & Amortization |
|
|
564 |
|
|
|
944 |
|
|
|
1,421 |
|
|
|
1,355 |
|
|
|
4,284 |
|
+ Transaction Expenses |
|
|
- |
|
|
|
252 |
|
|
|
48 |
|
|
|
81 |
|
|
|
381 |
|
+ Other (Expense) / Income |
|
|
(17 |
) |
|
|
20 |
|
|
|
(86 |
) |
|
|
7 |
|
|
|
(76 |
) |
+ Noncash Stock Compensation |
|
|
254 |
|
|
|
415 |
|
|
|
430 |
|
|
|
438 |
|
|
|
1,537 |
|
Distribution Adjusted EBITDA |
|
$ |
2,249 |
|
|
$ |
2,532 |
|
|
$ |
3,141 |
|
|
$ |
2,941 |
|
|
$ |
10,863 |
|
Adjusted Diluted EPS Reconciliation Table (In Thousands, Except Per Share Amounts) (Unaudited) |
||||||||||||||||||||
|
|
Fiscal 2025 |
|
|||||||||||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||||||
Net Income |
|
$ |
4,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
4,408 |
|
+ Amortization of Intangible Assets |
|
|
1,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,749 |
|
+ Acquisition Amortization of Backlog |
|
|
24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24 |
|
+ Acquisition Deal Costs |
|
|
434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
434 |
|
+ Acquisition Stock Expense |
|
|
234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
234 |
|
+ Income Tax Effect at 25% |
|
|
(610 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(610 |
) |
+ Acquisition Earn-Out Adjustment |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
Adjusted Net Income |
|
$ |
6,239 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
6,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Diluted Shares Outstanding |
|
|
9,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share |
|
$ |
0.48 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Earnings Per Share |
|
$ |
0.68 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
0.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2024 |
|
|||||||||||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||||||
Net Income |
|
$ |
2,949 |
|
|
$ |
460 |
|
|
$ |
3,348 |
|
|
$ |
6,890 |
|
|
$ |
13,647 |
|
+ Amortization of Intangible Assets |
|
|
1,093 |
|
|
|
1,416 |
|
|
|
1,674 |
|
|
|
1,447 |
|
|
|
5,630 |
|
+ Acquisition Amortization of Backlog |
|
|
- |
|
|
|
19 |
|
|
|
24 |
|
|
|
24 |
|
|
|
67 |
|
+ Acquisition Deal Costs |
|
|
185 |
|
|
|
328 |
|
|
|
78 |
|
|
|
81 |
|
|
|
672 |
|
+ Acquisition Stock Expense |
|
|
182 |
|
|
|
274 |
|
|
|
265 |
|
|
|
258 |
|
|
|
979 |
|
+ Income Tax Effect at 25% |
|
|
(365 |
) |
|
|
(509 |
) |
|
|
(532 |
) |
|
|
(431 |
) |
|
|
(1,837 |
) |
+ Acquisition Earn-Out Adjustment |
|
|
- |
|
|
|
2,800 |
|
|
|
87 |
|
|
|
(2,358 |
) |
|
|
529 |
|
Adjusted Net Income |
|
$ |
4,044 |
|
|
$ |
4,788 |
|
|
$ |
4,944 |
|
|
$ |
5,911 |
|
|
$ |
19,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Diluted Shares Outstanding |
|
|
7,762 |
|
|
|
7,948 |
|
|
|
8,752 |
|
|
|
8,972 |
|
|
|
8,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share |
|
$ |
0.38 |
|
|
$ |
0.06 |
|
|
$ |
0.38 |
|
|
$ |
0.77 |
|
|
$ |
1.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Earnings Per Share |
|
$ |
0.52 |
|
|
$ |
0.60 |
|
|
$ |
0.56 |
|
|
$ |
0.66 |
|
|
$ |
2.36 |
|
Additional Information - Business Segment Data (Dollars in thousands) (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Change |
||||||
SERVICE |
|
FY 2025 Q1 |
|
FY 2024 Q1 |
|
$'s |
|
% |
||||||||
Service Revenue |
|
$ |
43,778 |
|
|
$ |
39,853 |
|
|
$ |
3,925 |
|
|
|
9.8 |
% |
Cost of Revenue |
|
|
28,895 |
|
|
|
26,882 |
|
|
|
2,013 |
|
|
|
7.5 |
% |
Gross Profit |
|
$ |
14,883 |
|
|
$ |
12,971 |
|
|
$ |
1,912 |
|
|
|
14.7 |
% |
Gross Margin |
|
|
34.0 |
% |
|
|
32.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, Marketing & Warehouse Expenses |
|
$ |
4,303 |
|
|
$ |
4,106 |
|
|
$ |
197 |
|
|
|
4.8 |
% |
General and Administrative Expenses |
|
|
6,490 |
|
|
|
5,673 |
|
|
|
817 |
|
|
|
14.4 |
% |
Operating Income |
|
$ |
4,090 |
|
|
$ |
3,192 |
|
|
$ |
898 |
|
|
|
28.1 |
% |
% of Revenue |
|
|
9.3 |
% |
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
||||||
DISTRIBUTION |
|
FY 2025 Q1 |
|
FY 2024 Q1 |
|
$'s |
|
% |
||||||||
Distribution Sales |
|
$ |
22,929 |
|
|
$ |
20,745 |
|
|
$ |
2,184 |
|
|
|
10.5 |
% |
Cost of Sales |
|
|
15,157 |
|
|
|
15,006 |
|
|
|
151 |
|
|
|
1.0 |
% |
Gross Profit |
|
$ |
7,772 |
|
|
$ |
5,739 |
|
|
$ |
2,033 |
|
|
|
35.4 |
% |
Gross Margin |
|
|
33.9 |
% |
|
|
27.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, Marketing & Warehouse Expenses |
|
$ |
3,498 |
|
|
$ |
2,363 |
|
|
$ |
1,135 |
|
|
|
48.0 |
% |
General and Administrative Expenses |
|
|
3,265 |
|
|
|
1,928 |
|
|
|
1,337 |
|
|
|
69.3 |
% |
Operating Income |
|
$ |
1,009 |
|
|
$ |
1,448 |
|
|
$ |
(439 |
) |
|
|
(30.3 |
)% |
% of Sales |
|
|
4.4 |
% |
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
||||||
TOTAL |
|
FY 2025 Q1 |
|
FY 2024 Q1 |
|
$'s |
|
% |
||||||||
Total Revenue |
|
$ |
66,707 |
|
|
$ |
60,598 |
|
|
$ |
6,109 |
|
|
|
10.1 |
% |
Total Cost of Revenue |
|
|
44,052 |
|
|
|
41,888 |
|
|
|
2,164 |
|
|
|
5.2 |
% |
Gross Profit |
|
$ |
22,655 |
|
|
$ |
18,710 |
|
|
$ |
3,945 |
|
|
|
21.1 |
% |
Gross Margin |
|
|
34.0 |
% |
|
|
30.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, Marketing & Warehouse Expenses |
|
$ |
7,801 |
|
|
$ |
6,469 |
|
|
$ |
1,332 |
|
|
|
20.6 |
% |
General and Administrative Expenses |
|
|
9,755 |
|
|
|
7,601 |
|
|
|
2,154 |
|
|
|
28.3 |
% |
Operating Income |
|
$ |
5,099 |
|
|
$ |
4,640 |
|
|
$ |
459 |
|
|
|
9.9 |
% |
% of Revenue |
|
|
7.6 |
% |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240729780719/en/
(585) 505-6530
Thomas.Barbato@transcat.com
Source: