Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Dec. 28, 2013 | Feb. 05, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'TRANSCAT INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--03-29 | ' |
Entity Common Stock, Shares Outstanding | ' | 6,688,966 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000099302 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 28-Dec-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 |
Distribution Sales | $18,997 | $19,440 | $53,378 | $52,753 |
Service Revenue | 11,516 | 9,884 | 34,727 | 28,456 |
Total Revenue | 30,513 | 29,324 | 88,105 | 81,209 |
Cost of Distribution Sales | 14,549 | 14,937 | 40,799 | 40,317 |
Cost of Services Sold | 8,826 | 7,757 | 26,133 | 21,977 |
Total Cost of Revenue | 23,375 | 22,694 | 66,932 | 62,294 |
Gross Profit | 7,138 | 6,630 | 21,173 | 18,915 |
Selling, Marketing and Warehouse Expenses | 3,678 | 3,386 | 10,674 | 9,786 |
Administrative Expenses | 2,118 | 2,023 | 6,724 | 6,134 |
Total Operating Expenses | 5,796 | 5,409 | 17,398 | 15,920 |
Operating Income | 1,342 | 1,221 | 3,775 | 2,995 |
Interest and Other Expense, net | 85 | 37 | 157 | 135 |
Income Before Income Taxes | 1,257 | 1,184 | 3,618 | 2,860 |
Provision for Income Taxes | 469 | 402 | 1,338 | 972 |
Net Income | $788 | $782 | $2,280 | $1,888 |
Basic Earnings Per Share (in Dollars per share) | $0.11 | $0.11 | $0.32 | $0.26 |
Average Shares Outstanding (in Shares) | 6,856 | 7,417 | 7,192 | 7,399 |
Diluted Earnings Per Share (in Dollars per share) | $0.11 | $0.10 | $0.31 | $0.25 |
Average Shares Outstanding (in Shares) | 7,125 | 7,562 | 7,421 | 7,575 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 |
Net Income | $788 | $782 | $2,280 | $1,888 |
Other Comprehensive Income (Loss): | ' | ' | ' | ' |
Currency Translation Adjustment | -3 | -1 | -2 | ' |
Unrecognized Prior Service Cost, net of tax | 9 | 12 | 27 | -57 |
Unrecognized Gain on Other Asset, net of tax | 5 | 4 | 22 | 11 |
11 | 15 | 47 | -46 | |
Comprehensive Income | $799 | $797 | $2,327 | $1,842 |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current period unaudited) (USD $) | Dec. 28, 2013 | Mar. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash | $165 | $406 |
Accounts Receivable, less allowance for doubtful accounts of $96 and $118 as of December 28, 2013 and March 30, 2013, respectively | 13,680 | 15,411 |
Other Receivables | 2,660 | 977 |
Inventory, net | 7,572 | 6,803 |
Prepaid Expenses and Other Current Assets | 1,251 | 1,134 |
Deferred Tax Asset | 1,360 | 1,087 |
Total Current Assets | 26,688 | 25,818 |
Property and Equipment, net | 6,671 | 6,885 |
Goodwill | 17,463 | 17,592 |
Intangible Assets, net | 2,895 | 3,691 |
Other Assets | 1,212 | 1,061 |
Total Assets | 54,929 | 55,047 |
Current Liabilities: | ' | ' |
Accounts Payable | 8,720 | 8,883 |
Accrued Compensation and Other Liabilities | 5,054 | 3,979 |
Income Taxes Payable | ' | 465 |
Total Current Liabilities | 13,774 | 13,327 |
Long-Term Debt | 10,609 | 8,017 |
Deferred Tax Liability | 697 | 551 |
Other Liabilities | 1,730 | 1,502 |
Total Liabilities | 26,810 | 23,397 |
Common Stock, par value $0.50 per share, 30,000,000 shares authorized; 6,686,994 and 7,423,507 shares issued and outstanding as of December 28, 2013 and March 30, 2013, respectively | 3,343 | 3,712 |
Capital in Excess of Par Value | 11,137 | 10,616 |
Accumulated Other Comprehensive Income | 528 | 481 |
Retained Earnings | 13,111 | 16,841 |
Total Shareholders' Equity | 28,119 | 31,650 |
Total Liabilities and Shareholders' Equity | $54,929 | $55,047 |
Consolidated_Balance_Sheets_Cu1
Consolidated Balance Sheets (Current period unaudited) (Parentheticals) (USD $) | Dec. 28, 2013 | Mar. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts Receivable, allowance for doubtful accounts (in Dollars) | $96 | $118 |
Common Stock, par value per share (in Dollars per share) | $0.50 | $0.50 |
Common Stock, shares authorized | 30,000,000 | 30,000,000 |
Common Stock, shares issued | 6,686,994 | 7,423,507 |
Common Stock, shares outstanding | 6,686,994 | 7,423,507 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Cash Flows from Operating Activities: | ' | ' |
Net Income | $2,280 | $1,888 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ' | ' |
Gain on Disposal of Property and Equipment | -31 | ' |
Deferred Income Taxes | -157 | -250 |
Depreciation and Amortization | 2,231 | 1,945 |
Provision for Accounts Receivable and Inventory Reserves | 122 | 167 |
Stock-Based Compensation Expense | 400 | 220 |
Changes in Assets and Liabilities: | ' | ' |
Accounts Receivable and Other Receivables | -12 | -252 |
Inventory | -827 | -349 |
Prepaid Expenses and Other Assets | -572 | -909 |
Accounts Payable | -163 | 1,337 |
Accrued Compensation and Other Liabilities | 1,347 | -1,038 |
Income Taxes Payable | -466 | -409 |
Net Cash Provided by Operating Activities | 4,152 | 2,350 |
Cash Flows from Investing Activities: | ' | ' |
Purchases of Property and Equipment | -1,158 | -2,189 |
Proceeds from Sale of Property and Equipment | 243 | ' |
Business Acquisition | ' | -3,129 |
Net Cash Used in Investing Activities | -915 | -5,318 |
Cash Flows from Financing Activities: | ' | ' |
Proceeds from Revolving Line of Credit, net | 2,592 | 3,277 |
Payments of Contingent Consideration | ' | -14 |
Issuance of Common Stock | 166 | 199 |
Repurchase of Common Stock | -6,425 | -110 |
Excess Tax benefit Related to Stock-Based Compensation | 1 | 43 |
Net Cash (Used in) Provided by Financing Activities | -3,666 | 3,395 |
Effect of Exchange Rate Changes on Cash | 188 | ' |
Net (Decrease) Increase in Cash | -241 | 427 |
Cash at Beginning of Period | 406 | 32 |
Cash at End of Period | 165 | 459 |
Cash paid during the period for: | ' | ' |
Interest | 84 | 82 |
Income Taxes, net | $2,013 | $1,603 |
Consolidated_Statement_of_Shar
Consolidated Statement of Shareholders' Equity (unaudited) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total |
In Thousands | |||||
Balance at Mar. 30, 2013 | $3,712 | $10,616 | $481 | $16,841 | $31,650 |
Balance (in Shares) at Mar. 30, 2013 | 7,424 | ' | ' | ' | ' |
Issuance of Common Stock | 18 | 148 | ' | ' | 166 |
Issuance of Common Stock (in Shares) | 36 | ' | ' | ' | ' |
Repurchase of Common Stock | -402 | -13 | ' | -6,010 | -6,425 |
Repurchase of Common Stock (in Shares) | -804 | ' | ' | ' | ' |
Stock-Based Compensation | 15 | 385 | ' | ' | 400 |
Stock-Based Compensation (in Shares) | 30 | ' | ' | ' | ' |
Tax Expense from Stock-Based Compensation | ' | 1 | ' | ' | 1 |
Other Comprehensive Income | ' | ' | 47 | ' | 47 |
Net Income | ' | ' | ' | 2,280 | 2,280 |
Balance at Dec. 28, 2013 | $3,343 | $11,137 | $528 | $13,111 | $28,119 |
Balance (in Shares) at Dec. 28, 2013 | 6,686 | ' | ' | ' | ' |
Note_1_General
Note 1 - General | 9 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' | ||||||||||||||||
NOTE 1 – GENERAL | |||||||||||||||||
Description of Business: Transcat, Inc. (“Transcat” or the “Company”) is a leading provider of accredited calibration, repair, inspection and compliance services and distributor of professional grade handheld test, measurement and control instrumentation primarily for the life science, biotechnology, medical device, pharmaceutical and other FDA-regulated industries, industrial manufacturing, energy and utilities, chemical manufacturing, and other industries. | |||||||||||||||||
Basis of Presentation: Transcat’s unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, the Consolidated Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments considered necessary for a fair presentation (consisting of normal recurring adjustments) have been included. The results for the interim periods are not necessarily indicative of what the results will be for the fiscal year. The accompanying Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements as of and for the fiscal year ended March 30, 2013 (“fiscal year 2013”) contained in the Company’s 2013 Annual Report on Form 10-K filed with the SEC. | |||||||||||||||||
Fair Value of Financial Instruments: Transcat has determined the fair value of debt and other financial instruments using a valuation hierarchy. The hierarchy, which prioritizes the inputs used in measuring fair value, consists of three levels. Level 1 uses observable inputs such as quoted prices in active markets; Level 2 uses inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, which is defined as unobservable inputs in which little or no market data exists, requires the Company to develop its own assumptions. The carrying amount of debt on the Consolidated Balance Sheets approximates fair value due to variable interest rate pricing, and the carrying amounts for cash, accounts receivable and accounts payable approximate fair value due to their short-term nature. Investment assets, which fund the Company’s non-qualified deferred compensation plan, consist of mutual funds and are valued based on Level 1 inputs. At December 28, 2013 and March 30, 2013, investment assets totaled $0.7 million and $0.6 million, respectively, and are included as a component of other assets (non-current) on the Consolidated Balance Sheets. | |||||||||||||||||
Stock-Based Compensation: The Company measures the cost of services received in exchange for all equity awards granted, including stock options and restricted stock units, based on the fair market value of the award as of the grant date. The Company records compensation cost related to unvested equity awards by recognizing, on a straight-line basis, the unamortized grant date fair value over the remaining service period of each award. Excess tax benefits from the exercise of equity awards are presented in the Consolidated Statements of Cash Flows as a financing activity. Excess tax benefits are realized benefits from tax deductions for exercised awards in excess of the deferred tax asset attributable to stock-based compensation costs for such awards. The Company did not capitalize any stock-based compensation costs as part of an asset. The Company estimates forfeiture rates based on its historical experience. During the first nine months of the fiscal year ending March 29, 2014 (“fiscal year 2014”) and the first nine months of fiscal year 2013, the Company recorded non-cash stock-based compensation cost of $0.4 million and $0.2 million, respectively, in the Consolidated Statements of Income. | |||||||||||||||||
The estimated fair value of options granted in the first nine months of fiscal year 2014 were calculated using the Black-Scholes-Merton pricing model (“Black-Scholes”), which produced a weighted average fair value of $4.23 per option. During fiscal year 2013, the Company did not grant any stock options. | |||||||||||||||||
The following are the weighted average assumptions used in the Black-Scholes model: | |||||||||||||||||
FY 2014 | |||||||||||||||||
Expected term (in years) | 6 | ||||||||||||||||
Annualized volatility rate | 59.20% | ||||||||||||||||
Risk-free rate of return | 1.70% | ||||||||||||||||
Dividend rate | 0.00% | ||||||||||||||||
The Black-Scholes model incorporates assumptions to value stock-based awards. The risk-free rate of return for periods within the contractual life of the award was based on a zero-coupon U.S. government instrument over the contractual term of the equity instrument. Expected volatility was based on historical volatility of the Company’s stock. The expected option term represented the period that stock-based awards are expected to be outstanding based on the simplified method, which averages an award's weighted-average vesting period and expected term for "plain vanilla" share options. Options are considered to be "plain vanilla" if they have the following basic characteristics: granted "at-the-money"; exercisability is conditioned upon service through the vesting date; termination of service prior to vesting results in forfeiture; limited exercise period following termination of service; and options are non-transferable and non-hedgeable. The Company will continue to use the simplified method until it has the historical data necessary to provide a reasonable estimate of expected life. | |||||||||||||||||
Foreign Currency Translation and Transactions: The accounts of Transmation (Canada) Inc., a wholly-owned subsidiary of the Company, are maintained in the local currency and have been translated to U.S. dollars. Accordingly, the amounts representing assets and liabilities have been translated at the period-end rates of exchange and related revenue and expense accounts have been translated at an average rate of exchange during the period. Gains and losses arising from translation of Transmation (Canada) Inc.’s balance sheets into U.S. dollars are recorded directly to the accumulated other comprehensive income component of shareholders’ equity. | |||||||||||||||||
Transcat records foreign currency gains and losses on Canadian business transactions. The net foreign currency loss was less than $0.1 million in the first nine months of fiscal years 2014 and 2013. The Company utilizes foreign exchange forward contracts to reduce the risk that its earnings will be adversely affected by changes in currency exchange rates. The Company does not apply hedge accounting; therefore, the change in the fair value of the contracts, which totaled a gain of $0.3 million during the first nine months of fiscal year 2014 and a loss of less than $0.1 million during the first nine months of fiscal year 2013, was recognized in other expense in the Consolidated Statements of Income. The change in the fair value of the contracts is offset by the change in fair value on the underlying accounts receivables denominated in Canadian dollars being hedged. On December 28, 2013, the Company had two foreign exchange contracts, which mature in January 2014, outstanding for an aggregate notional amount of $5.2 million. The Company does not use hedging arrangements for speculative purposes. | |||||||||||||||||
Earnings Per Share: Basic earnings per share of common stock are computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share of common stock reflect the assumed conversion of stock options and unvested restricted stock units using the treasury stock method in periods in which they have a dilutive effect. In computing the per share effect of assumed conversion, funds which would have been received from the exercise of options and unvested restricted stock units and the related tax benefits are considered to have been used to purchase shares of common stock at the average market prices during the period. The resulting net additional shares of common stock are included in the calculation of average shares of common stock outstanding. | |||||||||||||||||
The average shares outstanding used to compute basic and diluted earnings per share are as follows: | |||||||||||||||||
Third Quarter Ended | Nine Months Ended | ||||||||||||||||
December 28, | December 29, | December 28, | December 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Average Shares Outstanding – Basic | 6,856 | 7,417 | 7,192 | 7,399 | |||||||||||||
Effect of Dilutive Common Stock Equivalents | 269 | 145 | 229 | 176 | |||||||||||||
Average Shares Outstanding – Diluted | 7,125 | 7,562 | 7,421 | 7,575 | |||||||||||||
Anti-dilutive Common Stock Equivalents | - | 509 | 225 | 477 | |||||||||||||
Shareholders’ Equity: During the third quarter of fiscal year 2014, the Company repurchased and subsequently retired 0.7 million shares of its common stock from an unaffiliated shareholder in a privately-negotiated transaction for $5.6 million. | |||||||||||||||||
Note_2_Debt
Note 2 - Debt | 9 Months Ended |
Dec. 28, 2013 | |
Disclosure Text Block [Abstract] | ' |
Long-term Debt [Text Block] | ' |
NOTE 2 – DEBT | |
Description: Transcat, through its credit agreement (the “Credit Agreement”), which matures in December 2015, has a revolving credit facility in the amount of $20.0 million (the “Revolving Credit Facility”). As of December 28, 2013, $10.6 million was outstanding under the Revolving Credit Facility and is included in long-term debt on the Consolidated Balance Sheet. | |
Interest and Other Costs: Interest on the Revolving Credit Facility accrues, at Transcat’s election, at either the one-month London Interbank Offered Rate (“LIBOR”), adjusting daily, or a fixed rate for a designated period at the LIBOR corresponding to such period, in each case, plus a margin. Commitment fees accrue based on the average daily amount of unused credit available on the Revolving Credit Facility. Interest rate margins and commitment fees are determined on a quarterly basis based upon the Company’s calculated leverage ratio, as defined in the Credit Agreement. The one-month LIBOR as of December 28, 2013 was 0.2%. The Company’s interest rate for the first nine months of fiscal year 2014 ranged from 1.09% to 1.15%. | |
Covenants: The Credit Agreement has certain covenants with which the Company has to comply, including a fixed charge ratio covenant and a leverage ratio covenant. The Company was in compliance with all loan covenants and requirements throughout the first nine months of fiscal year 2014. | |
Other Terms: The Company has pledged all of its U.S. tangible and intangible personal property, the equity interests of its U.S.-based subsidiaries, and a majority of the common stock of Transmation (Canada) Inc. as collateral security for the loans made under the Revolving Credit Facility. | |
Note_3_StockBased_Compensation
Note 3 - Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
NOTE 3 – STOCK-BASED COMPENSATION | |||||||||||||||||
The Transcat, Inc. 2003 Incentive Plan, as Amended and Restated (the “2003 Plan”), provides for, among other awards, grants of restricted stock units and stock options to directors, officers and key employees at the fair market value at the date of grant. At December 28, 2013, the number of shares available for future grant under the 2003 Plan totaled 1.5 million. | |||||||||||||||||
Restricted Stock: The Company grants performance-based restricted stock units as a primary component of executive compensation. The units generally vest following the third fiscal year from the date of grant subject to certain cumulative diluted earnings per share growth targets over the eligible period. | |||||||||||||||||
Compensation cost ultimately recognized for performance-based restricted stock units will equal the grant date fair market value of the unit that coincides with the actual outcome of the performance conditions. On an interim basis, the Company records compensation cost based on an assessment of the probability of achieving the performance conditions. The Company achieved 75% of the target level for the performance-based restricted stock units granted in the fiscal year ended March 26, 2011 (“fiscal year 2011”) and as a result, issued 28 thousand shares of common stock to executive officers and certain key employees during the first quarter of fiscal year 2014. At December 28, 2013, the Company estimated the probability of achievement for the units granted in fiscal years 2014 and 2013 to be 100% of the target levels and 125% of the target level for the units granted in the fiscal year ended March 31, 2012 (“fiscal year 2012”). Total expense relating to performance-based restricted stock units, based on grant date fair value and the estimated probability of achievement, in the first nine months of fiscal years 2014 and 2013 was $0.4 million and $0.2 million, respectively. Unearned compensation totaled $0.6 million as of December 28, 2013. | |||||||||||||||||
Stock Options: Options generally vest over a period of up to four years, using either a graded schedule or on a straight-line basis, and expire ten years from the date of grant. The expense relating to options is recognized on a straight-line basis over the requisite service period for the entire award. | |||||||||||||||||
The following table summarizes the Company’s options as of and for the nine months ended December 28, 2013: | |||||||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||||||
of | Average | Average | Intrinsic | ||||||||||||||
Shares | Exercise | Remaining | Value | ||||||||||||||
Price Per | Contractual | ||||||||||||||||
Share | Term (in years) | ||||||||||||||||
Outstanding as of March 30, 2013 | 554 | $ | 6.02 | ||||||||||||||
Granted | 100 | 7.57 | |||||||||||||||
Exercised | (21 | ) | 2.52 | ||||||||||||||
Cancelled/Forfeited | (4 | ) | 4.93 | ||||||||||||||
Outstanding as of December 28, 2013 | 629 | 6.4 | 4 | $ | 938 | ||||||||||||
Exercisable as of December 28, 2013 | 523 | 6.17 | 3 | 898 | |||||||||||||
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the third quarter of fiscal year 2014 and the exercise price, multiplied by the number of in-the-money stock options) that would have been received by the option holders had all holders exercised their options on December 28, 2013. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s stock. | |||||||||||||||||
Total unrecognized compensation cost related to non-vested stock options as of December 28, 2013 was $0.4 million, which is expected to be recognized over a weighted average period of less than three years. The aggregate intrinsic value of stock options exercised in the first nine months of fiscal year 2014 was $0.1 million. Cash received from the exercise of options in the first nine months of fiscal year 2014 was less than $0.1 million. | |||||||||||||||||
Note_4_Segment_Information
Note 4 - Segment Information | 9 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
NOTE 4 – SEGMENT INFORMATION | |||||||||||||||||
Transcat has two reportable segments: distribution (“Distribution”) and service (“Service”). The Company has no inter-segment sales. The following table presents segment information for the third quarter and the nine months ended December 28, 2013 and December 29, 2012: | |||||||||||||||||
Third Quarter Ended | Nine Months Ended | ||||||||||||||||
December 28, | December 29, | December 28, | December 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Total Revenue: | |||||||||||||||||
Distribution Sales | $ | 18,997 | $ | 19,440 | $ | 53,378 | $ | 52,753 | |||||||||
Service Revenue | 11,516 | 9,884 | 34,727 | 28,456 | |||||||||||||
Total | 30,513 | 29,324 | 88,105 | 81,209 | |||||||||||||
Gross Profit: | |||||||||||||||||
Distribution | 4,448 | 4,503 | 12,579 | 12,436 | |||||||||||||
Service | 2,690 | 2,127 | 8,594 | 6,479 | |||||||||||||
Total | 7,138 | 6,630 | 21,173 | 18,915 | |||||||||||||
Operating Expenses: | |||||||||||||||||
Distribution (1) | 3,257 | 3,263 | 9,676 | 9,497 | |||||||||||||
Service (1) | 2,539 | 2,146 | 7,722 | 6,423 | |||||||||||||
Total | 5,796 | 5,409 | 17,398 | 15,920 | |||||||||||||
Operating Income (Loss): | |||||||||||||||||
Distribution | 1,191 | 1,240 | 2,903 | 2,939 | |||||||||||||
Service | 151 | (19 | ) | 872 | 56 | ||||||||||||
Total | 1,342 | 1,221 | 3,775 | 2,995 | |||||||||||||
Unallocated Amounts: | |||||||||||||||||
Interest and Other Expense, net | 85 | 37 | 157 | 135 | |||||||||||||
Provision for Income Taxes | 469 | 402 | 1,338 | 972 | |||||||||||||
Total | 554 | 439 | 1,495 | 1,107 | |||||||||||||
Net Income | $ | 788 | $ | 782 | $ | 2,280 | $ | 1,888 | |||||||||
-1 | Operating expense allocations between segments were based on actual amounts, a percentage of revenues, headcount, and management’s estimates. | ||||||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended | |
Dec. 28, 2013 | ||
Accounting Policies [Abstract] | ' | |
Basis of Accounting, Policy [Policy Text Block] | ' | |
Basis of Presentation: Transcat’s unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, the Consolidated Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments considered necessary for a fair presentation (consisting of normal recurring adjustments) have been included. The results for the interim periods are not necessarily indicative of what the results will be for the fiscal year. The accompanying Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements as of and for the fiscal year ended March 30, 2013 (“fiscal year 2013”) contained in the Company’s 2013 Annual Report on Form 10-K filed with the SEC. | ||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | |
Fair Value of Financial Instruments: Transcat has determined the fair value of debt and other financial instruments using a valuation hierarchy. The hierarchy, which prioritizes the inputs used in measuring fair value, consists of three levels. Level 1 uses observable inputs such as quoted prices in active markets; Level 2 uses inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, which is defined as unobservable inputs in which little or no market data exists, requires the Company to develop its own assumptions. The carrying amount of debt on the Consolidated Balance Sheets approximates fair value due to variable interest rate pricing, and the carrying amounts for cash, accounts receivable and accounts payable approximate fair value due to their short-term nature. Investment assets, which fund the Company’s non-qualified deferred compensation plan, consist of mutual funds and are valued based on Level 1 inputs. At December 28, 2013 and March 30, 2013, investment assets totaled $0.7 million and $0.6 million, respectively, and are included as a component of other assets (non-current) on the Consolidated Balance Sheets | ||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |
Stock-Based Compensation: The Company measures the cost of services received in exchange for all equity awards granted, including stock options and restricted stock units, based on the fair market value of the award as of the grant date. The Company records compensation cost related to unvested equity awards by recognizing, on a straight-line basis, the unamortized grant date fair value over the remaining service period of each award. Excess tax benefits from the exercise of equity awards are presented in the Consolidated Statements of Cash Flows as a financing activity. Excess tax benefits are realized benefits from tax deductions for exercised awards in excess of the deferred tax asset attributable to stock-based compensation costs for such awards. The Company did not capitalize any stock-based compensation costs as part of an asset. The Company estimates forfeiture rates based on its historical experience. During the first nine months of the fiscal year ending March 29, 2014 (“fiscal year 2014”) and the first nine months of fiscal year 2013, the Company recorded non-cash stock-based compensation cost of $0.4 million and $0.2 million, respectively, in the Consolidated Statements of Income. | ||
The estimated fair value of options granted in the first nine months of fiscal year 2014 were calculated using the Black-Scholes-Merton pricing model (“Black-Scholes”), which produced a weighted average fair value of $4.23 per option. During fiscal year 2013, the Company did not grant any stock options. | ||
The following are the weighted average assumptions used in the Black-Scholes model: | ||
FY 2014 | ||
Expected term (in years) | 6 | |
Annualized volatility rate | 59.20% | |
Risk-free rate of return | 1.70% | |
Dividend rate | 0.00% | |
The Black-Scholes model incorporates assumptions to value stock-based awards. The risk-free rate of return for periods within the contractual life of the award was based on a zero-coupon U.S. government instrument over the contractual term of the equity instrument. Expected volatility was based on historical volatility of the Company’s stock. The expected option term represented the period that stock-based awards are expected to be outstanding based on the simplified method, which averages an award's weighted-average vesting period and expected term for "plain vanilla" share options. Options are considered to be "plain vanilla" if they have the following basic characteristics: granted "at-the-money"; exercisability is conditioned upon service through the vesting date; termination of service prior to vesting results in forfeiture; limited exercise period following termination of service; and options are non-transferable and non-hedgeable. The Company will continue to use the simplified method until it has the historical data necessary to provide a reasonable estimate of expected life. | ||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | |
Foreign Currency Translation and Transactions: The accounts of Transmation (Canada) Inc., a wholly-owned subsidiary of the Company, are maintained in the local currency and have been translated to U.S. dollars. Accordingly, the amounts representing assets and liabilities have been translated at the period-end rates of exchange and related revenue and expense accounts have been translated at an average rate of exchange during the period. Gains and losses arising from translation of Transmation (Canada) Inc.’s balance sheets into U.S. dollars are recorded directly to the accumulated other comprehensive income component of shareholders’ equity. | ||
Transcat records foreign currency gains and losses on Canadian business transactions. The net foreign currency loss was less than $0.1 million in the first nine months of fiscal years 2014 and 2013. The Company utilizes foreign exchange forward contracts to reduce the risk that its earnings will be adversely affected by changes in currency exchange rates. The Company does not apply hedge accounting; therefore, the change in the fair value of the contracts, which totaled a gain of $0.3 million during the first nine months of fiscal year 2014 and a loss of less than $0.1 million during the first nine months of fiscal year 2013, was recognized in other expense in the Consolidated Statements of Income. The change in the fair value of the contracts is offset by the change in fair value on the underlying accounts receivables denominated in Canadian dollars being hedged. On December 28, 2013, the Company had two foreign exchange contracts, which mature in January 2014, outstanding for an aggregate notional amount of $5.2 million. The Company does not use hedging arrangements for speculative purposes. | ||
Earnings Per Share, Policy [Policy Text Block] | ' | |
Earnings Per Share: Basic earnings per share of common stock are computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share of common stock reflect the assumed conversion of stock options and unvested restricted stock units using the treasury stock method in periods in which they have a dilutive effect. In computing the per share effect of assumed conversion, funds which would have been received from the exercise of options and unvested restricted stock units and the related tax benefits are considered to have been used to purchase shares of common stock at the average market prices during the period. The resulting net additional shares of common stock are included in the calculation of average shares of common stock outstanding. |
Note_1_General_Tables
Note 1 - General (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||
FY 2014 | |||||||||||||||||
Expected term (in years) | 6 | ||||||||||||||||
Annualized volatility rate | 59.20% | ||||||||||||||||
Risk-free rate of return | 1.70% | ||||||||||||||||
Dividend rate | 0.00% | ||||||||||||||||
Schedule of Weighted Average Number of Shares [Table Text Block] | ' | ||||||||||||||||
Third Quarter Ended | Nine Months Ended | ||||||||||||||||
December 28, | December 29, | December 28, | December 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Average Shares Outstanding – Basic | 6,856 | 7,417 | 7,192 | 7,399 | |||||||||||||
Effect of Dilutive Common Stock Equivalents | 269 | 145 | 229 | 176 | |||||||||||||
Average Shares Outstanding – Diluted | 7,125 | 7,562 | 7,421 | 7,575 | |||||||||||||
Anti-dilutive Common Stock Equivalents | - | 509 | 225 | 477 |
Note_3_StockBased_Compensation1
Note 3 - Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||||||
of | Average | Average | Intrinsic | ||||||||||||||
Shares | Exercise | Remaining | Value | ||||||||||||||
Price Per | Contractual | ||||||||||||||||
Share | Term (in years) | ||||||||||||||||
Outstanding as of March 30, 2013 | 554 | $ | 6.02 | ||||||||||||||
Granted | 100 | 7.57 | |||||||||||||||
Exercised | (21 | ) | 2.52 | ||||||||||||||
Cancelled/Forfeited | (4 | ) | 4.93 | ||||||||||||||
Outstanding as of December 28, 2013 | 629 | 6.4 | 4 | $ | 938 | ||||||||||||
Exercisable as of December 28, 2013 | 523 | 6.17 | 3 | 898 |
Note_4_Segment_Information_Tab
Note 4 - Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||
Third Quarter Ended | Nine Months Ended | ||||||||||||||||
December 28, | December 29, | December 28, | December 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Total Revenue: | |||||||||||||||||
Distribution Sales | $ | 18,997 | $ | 19,440 | $ | 53,378 | $ | 52,753 | |||||||||
Service Revenue | 11,516 | 9,884 | 34,727 | 28,456 | |||||||||||||
Total | 30,513 | 29,324 | 88,105 | 81,209 | |||||||||||||
Gross Profit: | |||||||||||||||||
Distribution | 4,448 | 4,503 | 12,579 | 12,436 | |||||||||||||
Service | 2,690 | 2,127 | 8,594 | 6,479 | |||||||||||||
Total | 7,138 | 6,630 | 21,173 | 18,915 | |||||||||||||
Operating Expenses: | |||||||||||||||||
Distribution (1) | 3,257 | 3,263 | 9,676 | 9,497 | |||||||||||||
Service (1) | 2,539 | 2,146 | 7,722 | 6,423 | |||||||||||||
Total | 5,796 | 5,409 | 17,398 | 15,920 | |||||||||||||
Operating Income (Loss): | |||||||||||||||||
Distribution | 1,191 | 1,240 | 2,903 | 2,939 | |||||||||||||
Service | 151 | (19 | ) | 872 | 56 | ||||||||||||
Total | 1,342 | 1,221 | 3,775 | 2,995 | |||||||||||||
Unallocated Amounts: | |||||||||||||||||
Interest and Other Expense, net | 85 | 37 | 157 | 135 | |||||||||||||
Provision for Income Taxes | 469 | 402 | 1,338 | 972 | |||||||||||||
Total | 554 | 439 | 1,495 | 1,107 | |||||||||||||
Net Income | $ | 788 | $ | 782 | $ | 2,280 | $ | 1,888 |
Note_1_General_Details
Note 1 - General (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Mar. 30, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 |
Other Expense [Member] | Other Expense [Member] | Other Assets [Member] | Other Assets [Member] | Unaffiliated Shareholder [Member] | Foreign Exchange Contract [Member] | Less Than [Member] | Less Than [Member] | |||
Less Than [Member] | ||||||||||
Note 1 - General (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments | ' | ' | ' | ' | $700,000 | $600,000 | ' | ' | ' | ' |
Share-based Compensation | 400,000 | 220,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $4.23 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign Currency Transaction Gain (Loss), Realized | ' | ' | ' | ' | ' | ' | ' | ' | -100,000 | -100,000 |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | ' | ' | 300,000 | 100,000 | ' | ' | ' | ' | ' | ' |
Derivative Asset, Number of Instruments Held | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Derivative Asset, Notional Amount | ' | ' | ' | ' | ' | ' | ' | 5,200,000 | ' | ' |
Stock Repurchased During Period, Shares (in Shares) | ' | ' | ' | ' | ' | ' | 700 | ' | ' | ' |
Stock Repurchased During Period, Value | $6,425,000 | ' | ' | ' | ' | ' | $5,600,000 | ' | ' | ' |
Note_1_General_Details_Weighte
Note 1 - General (Details) - Weighted Average Assumptions Used in the Black-Scholes Model | 9 Months Ended |
Dec. 28, 2013 | |
Weighted Average Assumptions Used in the Black-Scholes Model [Abstract] | ' |
Expected term (in years) | '6 years |
Annualized volatility rate | 59.20% |
Risk-free rate of return | 1.70% |
Dividend rate | 0.00% |
Note_1_General_Details_Summary
Note 1 - General (Details) - Summary of Weighted Average Number of Shares Outstanding To Compute Basic and Diluted Earnings Per Share | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 |
Summary of Weighted Average Number of Shares Outstanding To Compute Basic and Diluted Earnings Per Share [Abstract] | ' | ' | ' | ' |
Average Shares Outstanding b Basic | 6,856 | 7,417 | 7,192 | 7,399 |
Effect of Dilutive Common Stock Equivalents | 269 | 145 | 229 | 176 |
Average Shares Outstanding b Diluted | 7,125 | 7,562 | 7,421 | 7,575 |
Anti-dilutive Common Stock Equivalents | ' | 509 | 225 | 477 |
Note_2_Debt_Details
Note 2 - Debt (Details) (Revolving Credit Facility [Member], USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Dec. 28, 2013 |
Note 2 - Debt (Details) [Line Items] | ' |
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | $20 |
Line of Credit Facility, Amount Outstanding (in Dollars) | $10.60 |
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum | 1.09% |
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Maximum | 1.15% |
London Interbank Offered Rate (LIBOR) [Member] | ' |
Note 2 - Debt (Details) [Line Items] | ' |
Debt Instrument, Interest Rate, Stated Percentage | 0.20% |
Note_3_StockBased_Compensation2
Note 3 - Stock-Based Compensation (Details) (USD $) | Dec. 28, 2013 | Jun. 29, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 |
In Millions, except Share data, unless otherwise specified | Units Granted In Fiscal Year 2011 [Member] | Units Granted in Fiscal Years 2014 and 2013 [Member] | Units Granted in Fiscal Year 2012 [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Less Than [Member] | |
Performance-based Restricted Stock Units [Member] | Performance-based Restricted Stock Units [Member] | Performance-based Restricted Stock Units [Member] | Maximum [Member] | ||||||
Note 3 - Stock-Based Compensation (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Performance Target Percentage | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in Shares) | ' | 28,000 | ' | ' | ' | ' | ' | ' | ' |
Estimated Probability Achievment of Performance Based Restricted Stock Awards Granted | ' | ' | 100.00% | 125.00% | ' | ' | ' | ' | ' |
Restricted Stock or Unit Expense | ' | ' | ' | ' | $0.40 | $0.20 | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ' | ' | ' | ' | 0.6 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | ' | ' | '4 years | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | ' | ' | ' | ' | ' | ' | '10 years | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | ' | ' | ' | ' | ' | ' | 0.4 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | ' | ' | ' | '3 years | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 |
Proceeds from Stock Options Exercised | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 |
Note_3_StockBased_Compensation3
Note 3 - Stock-Based Compensation (Details) - Summary of Company's Stock Options (USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Mar. 30, 2013 |
Summary of Company's Stock Options [Abstract] | ' | ' |
Number Of Shares | 629 | 554 |
Weighted Average Exercise Price Per Share (in Dollars per share) | $6.40 | $6.02 |
Weighted Average Remaining Contractual Term (in years) | '4 years | ' |
Aggregate Intrinsic Value (in Dollars) | $938 | ' |
Exercisable as of December 28, 2013 | 523 | ' |
Exercisable as of December 28, 2013 (in Dollars per share) | $6.17 | ' |
Exercisable as of December 28, 2013 | '3 years | ' |
Exercisable as of December 28, 2013 (in Dollars) | $898 | ' |
Granted | 100 | ' |
Granted (in Dollars per share) | $7.57 | ' |
Exercised | -21 | ' |
Exercised (in Dollars per share) | $2.52 | ' |
Cancelled/Forfeited | -4 | ' |
Cancelled/Forfeited (in Dollars per share) | $4.93 | ' |
Note_4_Segment_Information_Det
Note 4 - Segment Information (Details) | 9 Months Ended |
Dec. 28, 2013 | |
Segment Reporting [Abstract] | ' |
Number of Reportable Segments | 2 |
Note_4_Segment_Information_Det1
Note 4 - Segment Information (Details) - Segment Information (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | ||||
Total Revenue: | ' | ' | ' | ' | ||||
Net Revenue | $30,513 | $29,324 | $88,105 | $81,209 | ||||
Gross Profit: | ' | ' | ' | ' | ||||
Gross Profit | 7,138 | 6,630 | 21,173 | 18,915 | ||||
Operating Expenses: | ' | ' | ' | ' | ||||
Operating Expenses | 5,796 | 5,409 | 17,398 | 15,920 | ||||
Operating Income (Loss): | ' | ' | ' | ' | ||||
Operating Income (Loss) | 1,342 | 1,221 | 3,775 | 2,995 | ||||
Unallocated Amounts: | ' | ' | ' | ' | ||||
Interest and Other Expense, net | 85 | 37 | 157 | 135 | ||||
Provision for Income Taxes | 469 | 402 | 1,338 | 972 | ||||
Total | 554 | 439 | 1,495 | 1,107 | ||||
Net Income | 788 | 782 | 2,280 | 1,888 | ||||
Distribution Sales [Member] | ' | ' | ' | ' | ||||
Total Revenue: | ' | ' | ' | ' | ||||
Net Revenue | 18,997 | 19,440 | 53,378 | 52,753 | ||||
Gross Profit: | ' | ' | ' | ' | ||||
Gross Profit | 4,448 | 4,503 | 12,579 | 12,436 | ||||
Operating Expenses: | ' | ' | ' | ' | ||||
Operating Expenses | 3,257 | [1] | 3,263 | [1] | 9,676 | [1] | 9,497 | [1] |
Operating Income (Loss): | ' | ' | ' | ' | ||||
Operating Income (Loss) | 1,191 | 1,240 | 2,903 | 2,939 | ||||
Service Segment [Member] | ' | ' | ' | ' | ||||
Total Revenue: | ' | ' | ' | ' | ||||
Net Revenue | 11,516 | 9,884 | 34,727 | 28,456 | ||||
Gross Profit: | ' | ' | ' | ' | ||||
Gross Profit | 2,690 | 2,127 | 8,594 | 6,479 | ||||
Operating Expenses: | ' | ' | ' | ' | ||||
Operating Expenses | 2,539 | [1] | 2,146 | [1] | 7,722 | [1] | 6,423 | [1] |
Operating Income (Loss): | ' | ' | ' | ' | ||||
Operating Income (Loss) | $151 | ($19) | $872 | $56 | ||||
[1] | Operating expense allocations between segments were based on actual amounts, a percentage of revenues, headcount, and management's estimates. |