Exhibit 99.1
 | NEWS
RELEASE |
Transcat, Inc. • 35 Vantage Point Drive • Rochester • NY • 14624 • Phone: 585-352-7777 |
IMMEDIATE RELEASE
Transcat Reports Record Revenue for the Fourth Quarter and
Full Year Fiscal 2017
| ● | Full year operating income improves 25.9% to $7.9 million
|
| ● | Full year earnings per diluted share up 10.3% to a record $0.64
|
| ● | Service segment revenue up 11.2% for the fourth quarter and 20.1% for full fiscal year |
ROCHESTER, NY, May 16, 2017 – Transcat, Inc. (NASDAQ: TRNS) (“Transcat” or the “Company”), a leading provider of accredited calibration, repair, inspection and laboratory instrument services and value-added distributor of professional grade handheld test, measurement and control instrumentation, today reported financial results for its fourth quarter and fiscal year ended March 25, 2017 (“fiscal 2017”).
“Our fourth quarter provided a strong finish to our fiscal year which ended with record annual revenue and net income,” commented Lee D. Rudow, President and CEO. “Our Service segment revenue increased 20% for the year and was driven by high single-digit organic growth. We closed the fiscal year with a strong new business Service pipeline and a substantial backlog of work-in-process. We expect to continue to build segment volume and drive operational leverage through our capital investments and acquisition integrations.
“Our Distribution segment delivered another quarter of solid performance, further validating our strategy to diversify our Distribution offerings. We saw strong growth from our core end-user customers, primarily those in the alternative energy and U.S. industrial markets.”
| Fourth Quarter Fiscal 2017 Review | | (Results compared with the fourth quarter of fiscal year ended March 26, 2016 (“fiscal 2016”)) |
| ($ in thousands) | | | | | | | Change |
| FY17Q4 | | FY16 Q4 | | $'s | | % |
| Service Revenue | $ | 19,526 | | $ | 17,555 | | $ | 1,971 | | | 11.2 | % |
| Distribution Sales | $ | 18,927 | | $ | 15,305 | | $ | 3,622 | | | 23.7 | % |
| Revenue | $ | 38,453 | | $ | 32,860 | | $ | 5,593 | | | 17.0 | % |
| Gross Profit | $ | 9,782 | | $ | 8,542 | | $ | 1,240 | | | 14.5 | % |
| Gross Margin | | 25.4% | | | 26.0% | | | | | | | |
| | | | | | | | | | | | | |
| Operating Income | $ | 2,565 | | $ | 2,223 | | $ | 342 | | | 15.4 | % |
| Operating Margin | | 6.7% | | | 6.8% | | | | | | | |
| | | | | | | | | | | | | |
| Net Income | $ | 1,429 | | $ | 1,577 | | $ | (148 | ) | | (9.4 | %) |
| Net Margin | | 3.7% | | | 4.8% | | | | | | | |
| | | | | | | | | | | | | |
| Adjusted EBITDA* | $ | 4,214 | | $ | 3,525 | | $ | 689 | | | 19.5 | % |
| Adjusted EBITDA* Margin | | 11.0% | | | 10.7% | | | | | | | |
| | | | | | | | | | | | | |
| *See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the Adjusted EBITDA Reconciliation table. |
Transcat achieved record quarterly revenue of $38.5 million in the fourth quarter of fiscal 2017. Gross profit improved $1.2 million, driving a $0.3 million increase in operating income. Net income was marginally lower at $1.4 million, as a higher effective income tax rate offset increased operating income.
Transcat Reports Record Revenue for the Fourth Quarter and Full Year Fiscal 2017
May 16, 2017
Page 2 of 11
The year-over-year change in the effective tax rate largely reflected changes in the availability of federal and state research and development tax credits.
Service segment continues to deliver
Represents the accredited calibration, repair, inspection and laboratory instrument services business (51% of total revenue for the fourth quarter of fiscal 2017).
| ($ in thousands) | | | | | | | Change |
| FY17Q4 | | FY16 Q4 | | $'s | | % |
| Service Segment Revenue | $ | 19,526 | | $ | 17,555 | | $ | 1,971 | | 11.2 | % |
| Gross Profit | $ | 5,864 | | $ | 5,321 | | $ | 543 | | 10.2 | % |
| Gross Margin | | 30.0% | | | 30.3% | | | | | | |
| |
| Operating Income | $ | 1,993 | | $ | 1,871 | | $ | 122 | | 6.5 | % |
| Operating Margin | | 10.2% | | | 10.7% | | | | | | |
| |
| Adjusted EBITDA* | $ | 3,170 | | $ | 2,968 | | $ | 202 | | 6.8 | % |
| Adjusted EBITDA* Margin | | 16.2% | | | 16.9% | | | | | | |
| | | | | | | | | | | | |
| *See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the Adjusted EBITDA Reconciliation table. |
Service revenue increased more than 11% and was driven by organic growth and incremental acquisition related revenue. Segment operating margin had a negative 70 basis point impact from an increased internal allocation of general and administrative (“G&A”) expenses.
Distribution segment sales up double digits
Represents the distribution and rental of new and used professional grade handheld test, measurement and control instrumentation (49% of total revenue for the fourth quarter of fiscal 2017).
| ($ in thousands) | | | | | | | Change |
| FY17Q4 | | FY16 Q4 | | $'s | | % |
| Distribution Segment Sales | $ | 18,927 | | $ | 15,305 | | $ | 3,622 | | 23.7 | % |
| Gross Profit | $ | 3,918 | | $ | 3,221 | | $ | 697 | | 21.6 | % |
| Gross Margin | | 20.7% | | | 21.0% | | | | | | |
| | | | | | | | | | | | |
| Operating Income | $ | 572 | | $ | 352 | | $ | 220 | | 62.5 | % |
| Operating Margin | | 3.0% | | | 2.3% | | | | | | |
| | | | | | | | | | | | |
| Adjusted EBITDA* | $ | 1,044 | | $ | 557 | | $ | 487 | | 87.4 | % |
| Adjusted EBITDA* Margin | | 5.5% | | | 3.6% | | | | | | |
| | | | | | | | | | | | |
| *See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the Adjusted EBITDA Reconciliation table. |
The increase in Distribution segment sales was the result of a combination of organic growth and the acquisition of Excalibur Engineering, Inc. on April 1, 2016. The acquisition provided additional rental revenue and added a used equipment business to Transcat. Organic growth was primarily driven by increased demand from core customers across various industries. The improved segment operating margin includes a 80 basis point benefit due to the reduction in the allocation of G&A expenses, as well as increased sales volume and cost controls, somewhat offset by higher acquired customer amortization expense.
Transcat Reports Record Revenue for the Fourth Quarter and Full Year Fiscal 2017
May 16, 2017
Page 3 of 11
Full-year Fiscal 2017 Review(Results compared with fiscal 2016)
| ($ in thousands) | | | | | | | Change |
| FY17 | | FY16 | | $'s | | % |
| Service Revenue | $ | 71,103 | | $ | 59,202 | | $ | 11,901 | | 20.1 | % |
| Distribution Sales | $ | 72,795 | | $ | 62,964 | | $ | 9,831 | | 15.6 | % |
| Revenue | $ | 143,898 | | $ | 122,166 | | $ | 21,732 | | 17.8 | % |
| Gross Profit | $ | 34,970 | | $ | 29,119 | | $ | 5,851 | | 20.1 | % |
| Gross Margin | | 24.3% | | | 23.8% | | | | | | |
| | | | | | | | | | | | |
| Operating Income | $ | 7,934 | | $ | 6,302 | | $ | 1,632 | | 25.9 | % |
| Operating Margin | | 5.5% | | | 5.2% | | | | | | |
| | | | | | | | | | | | |
| Net Income | $ | 4,522 | | $ | 4,124 | | $ | 398 | | 9.7 | % |
| Net Margin | | 3.1% | | | 3.4% | | | | | | |
| | | | | | | | | | | | |
| Adjusted EBITDA* | $ | 14,520 | | $ | 10,559 | | $ | 3,961 | | 37.5 | % |
| Adjusted EBITDA* Margin | | 10.1% | | | 8.6% | | | | | | |
| | | | | | | | | | | | |
| *See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the Adjusted EBITDA Reconciliation table. |
Total revenue increased to a record $143.9 million and was driven by double-digit growth in both business segments. Consolidated gross margin improved 50 basis points, more than offsetting a 20 basis point increase in operating expenses, resulting in a $1.6 million or 25.9% year-over-year increase in operating income. The effective tax rate increased to 36.9% in fiscal 2017 compared with 31.3% in fiscal 2016, largely due to changes in the availability of federal and state research and development tax credits.
Transcat achieved record net income of $4.5 million and diluted earnings per share of $0.64 in fiscal 2017.
Adjusted EBITDA increased 37.5% to $14.5 million. As a percent of sales, Adjusted EBITDA margin expanded 150 basis points to 10.1%.
Strong Balance Sheet and Financial Flexibility Supports Growth Strategy
At March 25, 2017, the Company had total debt of $27.3 million, with $11.4 million available under its secured revolving credit facility. Capital expenditures were $1.1 million and $5.3 million for the fourth quarter and full fiscal year, respectively. Investments were primarily for assets to support the Company’s rental business and expanded Service segment capabilities.
Outlook
Mr. Rudow concluded, “We entered fiscal 2018 with excellent momentum and high expectations. During the past year, we made important, strategic investments in physical assets, as well as in leadership that we expect to help advance Transcat and our long-term strategy. We anticipate that the traction we have gained with these investments will continue.
“Fiscal 2018 will be a year of continued emphasis on improving “Operational Excellence,” an initiative that we believe will improve customer experiences, expand organic growth potential, and strengthen our acquisition integration process, allowing us to capitalize on acquired synergies at a faster pace. We continually assess opportunities that can either enhance our capabilities and expertise, expand our geographic presence or are bolt-ons that can leverage our current infrastructure.
“Looking further ahead, we believe our capital and leadership investments have positioned us well to meet our goal of achieving $175 million to $200 million in revenue over the next three to four years.”
Transcat expects its income tax rate to range between 34% and 36% in fiscal 2018.
The Company anticipates total capital expenditures to be approximately $6.0 million to $6.5 million in fiscal 2018, with the majority of the incremental capital expenditures in excess of fiscal 2017 amounts
Transcat Reports Record Revenue for the Fourth Quarter and Full Year Fiscal 2017
May 16, 2017
Page 4 of 11
planned for IT infrastructure investments to drive operational excellence and for specific customer-opportunity driven Service capabilities. Of the capital expenditures anticipated for fiscal 2018, the Company expects spending for maintenance/existing asset replacements to be consistent with fiscal 2017 at approximately $1.0 million to $1.5 million.
Webcast and Conference Call
Transcat will host a conference call and webcast on Wednesday, May 17, 2017 at 11:00 a.m. Eastern Time. Management will review the financial and operating results for the fourth quarter and full fiscal year, as well as the Company’s strategy and outlook. A question and answer session will follow the formal discussion. The review will be accompanied by a slide presentation, which will be available atwww.transcat.com/investor-relations. The conference call can be accessed by calling (201) 689-8471. Alternatively, the webcast can be monitored atwww.transcat.com/investor-relations.
A telephonic replay will be available from 2:00 p.m. Eastern Time on the day of the call through Wednesday, May 24, 2017. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13659711, or access the webcast replay atwww.transcat.com/investor-relations, where a transcript will be posted once available.
NOTE 1 – Non-GAAP Financial Measures
In addition to reporting net income, a U.S. generally accepted accounting principle (“GAAP”) measure, we present Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, and non-cash stock compensation expense), which is a non-GAAP measure. The Company’s management believes Adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the performance of its core operations from period to period by removing the impact of the capital structure (interest), tangible and intangible asset base (depreciation and amortization), taxes, and stock-based compensation expense, which is not always commensurate with the reporting period in which it is included. Adjusted EBITDA is not calculated through the application of GAAP and is not the required form of disclosure by the Securities and Exchange Commission. As such, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. The use of any non-GAAP measure 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 the attached Adjusted EBITDA Reconciliation table on page 9.
ABOUT TRANSCAT
Transcat, Inc. is a leading provider of accredited calibration, repair, inspection and laboratory instrument services. The Company is focused on providing best-in-class services and products to highly regulated industries, including life science, aerospace and defense, pharmaceutical, medical device manufacturing and biotechnology. Transcat provides permanent and periodic on-site services, mobile calibration services and in-house services through 22 Calibration Service Centers strategically located across the United States, Puerto Rico and Canada. The breadth and depth of measurement parameters addressed by Transcat’s ISO/IEC 17025 scopes of accreditation are believed to be the best in the industry.
Transcat also operates as a leading value-added distributor that markets, sells and rents national and proprietary brand instruments to customers globally. Its e-commerce focused website and product catalog offer access to more than 100,000 test, measurement and control instruments, including products from approximately 540 leading manufacturers.
Transcat’s growth strategy is to leverage its service capabilities, strong brand and leading distribution platform to drive organic sales growth and to expand its addressable calibration market through acquisitions and capability investments to further realize the inherent leverage of its business model.
More information about Transcat can be found on its website at:Transcat.com.
Safe Harbor Statement
This press 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
Transcat Reports Record Revenue for the Fourth Quarter and Full Year Fiscal 2017
May 16, 2017
Page 5 of 11
are subject to risks, uncertainties and assumptions. Forward-looking statements are identified by words such as “expects,” “estimates,” “projects,” “anticipates,” “believes,” “could,” and other similar words. All statements addressing operating performance, events or developments that Transcat, Inc. expects or anticipates will occur in the future, including but not limited to statements relating to anticipated revenue, profit margins, sales operations, capital expenditures, cash flows, operating income, growth strategy, segment growth, potential acquisitions, integration of acquired businesses, market position, customer preferences, outlook and changes in market conditions in the industries in which Transcat operates are forward-looking statements. Forward-looking statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Transcat’s Annual Report and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should any of the Company’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company’s forward-looking statements. Except as required by law, the Company disclaims any obligation to update, correct or publicly announce any revisions to any of the forward-looking statements contained in this press release.
For more information contact:
| Michael J. Tschiderer, Chief Financial Officer | Deborah K. Pawlowski, Investor Relations |
| Phone: (585) 352-7777 | Phone: (716) 843-3908 |
| Email: mtschiderer@transcat.com | Email: dpawlowski@keiadvisors.com |
FINANCIAL TABLES FOLLOW.
The Company plans on timely filing its Annual Report on Form 10-K before the June 23, 2017 required filing date.
Transcat Reports Record Revenue for the Fourth Quarter and Full Year Fiscal 2017
May 16, 2017
Page 6 of 11
TRANSCAT, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
| Fourth Quarter Ended | | For the Years Ended |
| (Unaudited) | | (Unaudited) | | (Audited) |
| March 25, | | March 26, | | March 25, | | March 26, |
| 2017 | | 2016 | | 2017 | | 2016 |
| Service Revenue | $ | 19,526 | | $ | 17,555 | | $ | 71,103 | | $ | 59,202 |
| Distribution Sales | | 18,927 | | | 15,305 | | | 72,795 | | | 62,964 |
| Total Revenue | | 38,453 | | | 32,860 | | | 143,898 | | | 122,166 |
| |
| Cost of Service Revenue | | 13,662 | | | 12,234 | | | 52,064 | | | 43,617 |
| Cost of Distribution Sales | | 15,009 | | | 12,084 | | | 56,864 | | | 49,430 |
| Total Cost of Revenue | | 28,671 | | | 24,318 | | | 108,928 | | | 93,047 |
| |
| Gross Profit | | 9,782 | | | 8,542 | | | 34,970 | | | 29,119 |
| |
| Selling, Marketing and Warehouse | | | | | | | | | | | |
| Expenses | | 3,942 | | | 3,657 | | | 16,554 | | | 13,625 |
| General & Administrative Expenses | | 3,275 | | | 2,662 | | | 10,482 | | | 9,192 |
| Total Operating Expenses | | 7,217 | | | 6,319 | | | 27,036 | | | 22,817 |
| |
| Operating Income | | 2,565 | | | 2,223 | | | 7,934 | | | 6,302 |
| |
| Interest and Other Expense, net | | 223 | | | 102 | | | 770 | | | 295 |
| |
| Income Before Income Taxes | | 2,342 | | | 2,121 | | | 7,164 | | | 6,007 |
| Provision for Income Taxes | | 913 | | | 544 | | | 2,642 | | | 1,883 |
| |
| Net Income | $ | 1,429 | | $ | 1,577 | | $ | 4,522 | | $ | 4,124 |
| |
| Basic Earnings Per Share | $ | 0.20 | | $ | 0.23 | | $ | 0.65 | | $ | 0.60 |
| Average Shares Outstanding | | 7,024 | | | 6,912 | | | 6,994 | | | 6,887 |
| |
| Diluted Earnings Per Share | $ | 0.20 | | $ | 0.22 | | $ | 0.64 | | $ | 0.58 |
| Average Shares Outstanding | | 7,189 | | | 7,131 | | | 7,111 | | | 7,121 |
Transcat Reports Record Revenue for the Fourth Quarter and Full Year Fiscal 2017
May 16, 2017
Page 7 of 11
TRANSCAT, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
| (Unaudited) | | (Audited) |
| March 25, | | March 26, |
| 2017 | | 2016 |
| ASSETS | | | | | | | |
| Current Assets: | | | | | | | |
| Cash | $ | 842 | | | $ | 641 | |
| Accounts Receivable, less allowance for doubtful accounts of $210 | | | | | | | |
| and $113 as of March 25, 2017 and March 26, 2016, respectively | | 22,049 | | | | 17,080 | |
| Other Receivables | | 1,227 | | | | 881 | |
| Inventory, net | | 10,278 | | | | 6,520 | |
| Prepaid Expenses and Other Current Assets | | 1,193 | | | | 1,096 | |
| Total Current Assets | | 35,589 | | | | 26,218 | |
| Property and Equipment, net | | 15,568 | | | | 12,313 | |
| Goodwill | | 32,520 | | | | 29,112 | |
| Intangible Assets, net | | 7,519 | | | | 8,211 | |
| Other Assets | | 901 | | | | 853 | |
| Total Assets | $ | 92,097 | | | $ | 76,707 | |
| |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | |
| Current Liabilities: | | | | | | | |
| Accounts Payable | $ | 11,615 | | | $ | 8,141 | |
| Accrued Compensation and Other Liabilities | | 5,907 | | | | 7,688 | |
| Income Taxes Payable | | 805 | | | | - | |
| Current Portion of Long-Term Debt | | 1,429 | | | | - | |
| Total Current Liabilities | | 19,756 | | | | 15,829 | |
| Long-Term Debt | | 25,883 | | | | 19,073 | |
| Deferred Tax Liability | | 1,134 | | | | 1,071 | |
| Other Liabilities | | 1,923 | | | | 1,823 | |
| Total Liabilities | | 48,696 | | | | 37,796 | |
| Shareholders' Equity: | | | | | | | |
| Common Stock, par value $0.50 per share, 30,000,000 shares authorized; | | | | | | | |
| 7,043,754 and 6,923,557 shares issued and outstanding | | | | | | | |
| as of March 25, 2017 and March 26, 2016, respectively | | 3,522 | | | | 3,462 | |
| Capital in Excess of Par Value | | 12,996 | | | | 12,993 | |
| Accumulated Other Comprehensive (Loss) Income | | (414 | ) | | | (358 | ) |
| Retained Earnings | | 27,297 | | | | 22,814 | |
| Total Shareholders' Equity | | 43,401 | | | | 38,911 | |
| Total Liabilities and Shareholders' Equity | $ | 92,097 | | | $ | 76,707 | |
Transcat Reports Record Revenue for the Fourth Quarter and Full Year Fiscal 2017
May 16, 2017
Page 8 of 11
TRANSCAT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
| For the Year Ended |
| (Unaudited) | | (Audited) |
| March 25, | | March 26, |
| 2017 | | 2016 |
| Cash Flows from Operating Activities: | | | | | | | |
| Net Income | $ | 4,522 | | | $ | 4,124 | |
| Adjustments to Reconcile Net Income to Net Cash Provided | | | | | | | |
| by Operating Activities: | | | | | | | |
| (Gain)/Loss on Sale of Property and Equipment | | (4 | ) | | | 38 | |
| Deferred Income Taxes | | 63 | | | | 136 | |
| Depreciation and Amortization | | 6,184 | | | | 3,946 | |
| Provision for Accounts Receivable and Inventory Reserves | | 376 | | | | 147 | |
| Stock-Based Compensation Expense | | 453 | | | | 359 | |
| Changes in Assets and Liabilities: | | | | | | | |
| Accounts Receivable and Other Receivables | | (4,728 | ) | | | 998 | |
| Inventory | | (3,425 | ) | | | 177 | |
| Prepaid Expenses and Other Assets | | (224 | ) | | | 118 | |
| Accounts Payable | | 3,107 | | | | 446 | |
| Accrued Compensation and Other Liabilities | | 405 | | | | 22 | |
| Income Taxes Payable | | 815 | | | | 471 | |
| Net Cash Provided by Operating Activities | | 7,544 | | | | 10,982 | |
| |
| Cash Flows from Investing Activities: | | | | | | | |
| Purchase of Property and Equipment | | (5,250 | ) | | | (4,101 | ) |
| Proceeds from Sale of Property and Equipment | | 59 | | | | 31 | |
| Business Acquisitions, net of cash acquired | | (6,977 | ) | | | (13,894 | ) |
| Net Cash Used in Investing Activities | | (12,168 | ) | | | (17,964 | ) |
| |
| Cash Flows from Financing Activities: | | | | | | | |
| (Repayment of) Proceeds from Revolving Credit Facility, net | | (452 | ) | | | 6,905 | |
| Proceeds from Term Loan | | 10,000 | | | | - | |
| Repayments of Term Loan | | (1,310 | ) | | | - | |
| Issuance of Common Stock | | 635 | | | | 454 | |
| Repurchase of Common Stock | | (98 | ) | | | (73 | ) |
| Stock Option Redemption | | (966 | ) | | | (61 | ) |
| Payment of Contingent Consideration and Holdbacks | | | | | | | |
| Related to Business Acquisitions | | (3,041 | ) | | | - | |
| Net Cash Provided by Financing Activities | | 4,768 | | | | 7,225 | |
| |
| Effect of Exchange Rate Changes on Cash | | 57 | | | | 333 | |
| |
| Net Increase in Cash | | 201 | | | | 576 | |
| Cash at Beginning of Fiscal Year | | 641 | | | | 65 | |
| Cash at End of Fiscal Year | $ | 842 | | | $ | 641 | |
Transcat Reports Record Revenue for the Fourth Quarter and Full Year Fiscal 2017
May 16, 2017
Page 9 of 11
TRANSCAT, INC.
Adjusted EBITDA Reconciliation Table
(Dollars in thousands)
(Unaudited)
| FY2017 |
| Q1 | | Q2 | | Q3 | | Q4 | | YTD |
| Net Income | $ | 906 | | | $ | 916 | | | $ | 1,271 | | | $ | 1,429 | | | $ | 4,522 | |
| + Interest Expense | | 137 | | | | 180 | | | | 184 | | | | 218 | | | | 719 | |
| + Other Expense / (Income) | | 31 | | | | 11 | | | | 4 | | | | 5 | | | | 51 | |
| + Tax Provision | | 364 | | | | 471 | | | | 894 | | | | 913 | | | | 2,642 | |
| Operating Income | $ | 1,438 | | | $ | 1,578 | | | $ | 2,353 | | | $ | 2,565 | | | $ | 7,934 | |
| + Depreciation & Amortization | | 1,549 | | | | 1,556 | | | | 1,562 | | | | 1,517 | | | | 6,184 | |
| + Other (Expense) / Income | | (31 | ) | | | (11 | ) | | | (4 | ) | | | (5 | ) | | | (51 | ) |
| + Noncash Stock Compensation | | 149 | | | | 177 | | | | (10 | ) | | | 137 | | | | 453 | |
| Adjusted EBITDA | $ | 3,105 | | | $ | 3,300 | | | $ | 3,901 | | | $ | 4,214 | | | $ | 14,520 | |
| | | | | | | | | | | | | | | | | | | | |
| Segment Breakdown | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Service Operating Income | $ | 1,044 | | | $ | 791 | | | $ | 941 | | | $ | 1,993 | | | $ | 4,769 | |
| + Depreciation & Amortization | | 1,247 | | | | 1,137 | | | | 1,158 | | | | 1,118 | | | | 4,660 | |
| + Other (Expense) / Income | | (27 | ) | | | (12 | ) | | | (7 | ) | | | (9 | ) | | | (55 | ) |
| + Noncash Stock Compensation | | 80 | | | | 94 | | | | (25 | ) | | | 68 | | | | 217 | |
| Service Adjusted EBITDA | $ | 2,344 | | | $ | 2,010 | | | $ | 2,067 | | | $ | 3,170 | | | $ | 9,591 | |
| | | | | | | | | | | | | | | | | | | |
| Distribution Operating Income | $ | 394 | | | $ | 787 | | | $ | 1,412 | | | $ | 572 | | | $ | 3,165 | |
| + Depreciation & Amortization | | 302 | | | | 419 | | | | 404 | | | | 399 | | | | 1,524 | |
| + Other (Expense) / Income | | (4 | ) | | | 1 | | | | 3 | | | | 4 | | | | 4 | |
| + Noncash Stock Compensation | | 69 | | | | 83 | | | | 15 | | | | 69 | | | | 236 | |
| Distribution Adjusted EBITDA | $ | 761 | | | $ | 1,290 | | | $ | 1,834 | | | $ | 1,044 | | | $ | 4,929 | |
| |
| FY2016 |
| Q1 | | Q2 | | Q3 | | Q4 | | YTD |
| Net Income | $ | 601 | | | $ | 878 | | | $ | 1,068 | | | $ | 1,577 | | | $ | 4,124 | |
| + Interest Expense | | 51 | | | | 48 | | | | 54 | | | | 94 | | | | 247 | |
| + Other Expense / (Income) | | 44 | | | | (12 | ) | | | 8 | | | | 8 | | | | 48 | |
| + Tax Provision | | 331 | | | | 456 | | | | 552 | | | | 544 | | | | 1,883 | |
| Operating Income | $ | 1,027 | | | $ | 1,370 | | | $ | 1,682 | | | $ | 2,223 | | | $ | 6,302 | |
| + Depreciation & Amortization | | 840 | | | | 902 | | | | 969 | | | | 1,235 | | | | 3,946 | |
| + Other (Expense) / Income | | (44 | ) | | | 12 | | | | (8 | ) | | | (8 | ) | | | (48 | ) |
| + Noncash Stock Compensation | | 171 | | | | 109 | | | | 4 | | | | 75 | | | | 359 | |
| Adjusted EBITDA | $ | 1,994 | | | $ | 2,393 | | | $ | 2,647 | | | $ | 3,525 | | | $ | 10,559 | |
| | | | | | | | | | | | | | | | | | | | |
| Segment Breakdown | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Service Operating Income | $ | 646 | | | $ | 839 | | | $ | 799 | | | $ | 1,871 | | | $ | 4,155 | |
| + Depreciation & Amortization | | 680 | | | | 717 | | | | 751 | | | | 1,068 | | | | 3,216 | |
| + Other (Expense) / Income | | (39 | ) | | | 1 | | | | (18 | ) | | | (8 | ) | | | (64 | ) |
| + Noncash Stock Compensation | | 85 | | | | 51 | | | | (2 | ) | | | 37 | | | | 171 | |
| Service Adjusted EBITDA | $ | 1,372 | | | $ | 1,608 | | | $ | 1,530 | | | $ | 2,968 | | | $ | 7,478 | |
| | | | | | | | | | | | | | | | | | | | |
| Distribution Operating Income | $ | 381 | | | $ | 531 | | | $ | 883 | | | $ | 352 | | | $ | 2,147 | |
| + Depreciation & Amortization | | 160 | | | | 185 | | | | 218 | | | | 167 | | | | 730 | |
| + Other (Expense) / Income | | (5 | ) | | | 11 | | | | 10 | | | | 0 | | | | 16 | |
| + Noncash Stock Compensation | | 86 | | | | 58 | | | | 6 | | | | 38 | | | | 188 | |
| Distribution Adjusted EBITDA | $ | 622 | | | $ | 785 | | | $ | 1,117 | | | $ | 557 | | | $ | 3,081 | |
Transcat Reports Record Revenue for the Fourth Quarter and Full Year Fiscal 2017
May 16, 2017
Page 10 of 11
TRANSCAT, INC.
Additional Information - Business Segment Data
(Dollars in thousands)
(Unaudited)
| | | | | | | | | Change |
| FY 2017 | | FY 2016 | | | | | | |
| SERVICE | Q4 | | Q4 | | $'s | | % |
| Service Revenue | $ | 19,526 | | | $ | 17,555 | | | $ | 1,971 | | 11.2 | % |
| Cost of Sales | $ | 13,662 | | | $ | 12,234 | | | $ | 1,428 | | 11.7 | % |
| Gross Profit | $ | 5,864 | | | $ | 5,321 | | | $ | 543 | | 10.2 | % |
| Gross Margin | | 30.0 | % | | | 30.3 | % | | | | | | |
| |
| Selling, Marketing & Warehouse | $ | 2,024 | | | $ | 2,023 | | | $ | 1 | | 0.0 | % |
| General & Administrative Expenses | $ | 1,847 | | | $ | 1,427 | | | $ | 420 | | 29.4 | % |
| Operating Income | $ | 1,993 | | | $ | 1,871 | | | $ | 122 | | 6.5 | % |
| % of Revenue | | 10.2 | % | | | 10.7 | % | | | | | | |
| |
| |
| | | | | | | | | Change |
| FY 2017 | | FY 2016 | | | | | | |
| DISTRIBUTION | Q4 | | Q4 | | $'s | | % |
| Distribution Sales | $ | 18,927 | | | $ | 15,305 | | | $ | 3,622 | | 23.7 | % |
| Cost of Sales | $ | 15,009 | | | $ | 12,084 | | | $ | 2,925 | | 24.2 | % |
| Gross Profit | $ | 3,918 | | | $ | 3,221 | | | $ | 697 | | 21.6 | % |
| Gross Margin | | 20.7 | % | | | 21.0 | % | | | | | | |
| |
| Selling, Marketing & Warehouse | $ | 1,918 | | | $ | 1,634 | | | $ | 284 | | 17.4 | % |
| General & Administrative Expenses | $ | 1,428 | | | $ | 1,235 | | | $ | 193 | | 15.6 | % |
| Operating Income | $ | 572 | | | $ | 352 | | | $ | 220 | | 62.5 | % |
| % of Sales | | 3.0 | % | | | 2.3 | % | | | | | | |
| |
| |
| | | | | | | | | Change |
| FY 2017 | | FY 2016 | | | | | | |
| TOTAL | Q4 | | Q4 | | $'s | | % |
| Total Revenue | $ | 38,453 | | | $ | 32,860 | | | $ | 5,593 | | 17.0 | % |
| Total Cost of Sales | $ | 28,671 | | | $ | 24,318 | | | $ | 4,353 | | 17.9 | % |
| Gross Profit | $ | 9,782 | | | $ | 8,542 | | | $ | 1,240 | | 14.5 | % |
| Gross Margin | | 25.4 | % | | | 26.0 | % | | | | | | |
| |
| Selling, Marketing & Warehouse | $ | 3,942 | | | $ | 3,657 | | | $ | 285 | | 7.8 | % |
| General & Administrative Expenses | $ | 3,275 | | | $ | 2,662 | | | $ | 613 | | 23.0 | % |
| Operating Income | $ | 2,565 | | | $ | 2,223 | | | $ | 342 | | 15.4 | % |
| % of Revenue | | 6.7 | % | | | 6.8 | % | | | | | | |
Transcat Reports Record Revenue for the Fourth Quarter and Full Year Fiscal 2017
May 16, 2017
Page 11 of 11
TRANSCAT, INC.
Additional Information - Business Segment Data
(Dollars in thousands)
(Unaudited)
| FY 2017 | | FY 2016 | | Change |
| SERVICE | YTD | | YTD | | $'s | | % |
| Service Revenue | $ | 71,103 | | | $ | 59,202 | | | $ | 11,901 | | 20.1 | % |
| Cost of Sales | $ | 52,064 | | | $ | 43,617 | | | $ | 8,447 | | 19.4 | % |
| Gross Profit | $ | 19,039 | | | $ | 15,585 | | | $ | 3,454 | | 22.2 | % |
| Gross Margin | | 26.8 | % | | | 26.3 | % | | | | | | |
| |
| Selling, Marketing & Warehouse | $ | 8,839 | | | $ | 6,848 | | | $ | 1,991 | | 29.1 | % |
| General & Administrative Expenses | $ | 5,431 | | | $ | 4,582 | | | $ | 849 | | 18.5 | % |
| Operating Income | $ | 4,769 | | | $ | 4,155 | | | $ | 614 | | 14.8 | % |
| % of Revenue | | 6.7 | % | | | 7.0 | % | | | | | | |
| |
| | | | | |
| | FY 2017 | | FY 2016 | | Change |
| DISTRIBUTION | YTD | | YTD | | $'s | | % |
| Distribution Sales | $ | 72,795 | | | $ | 62,964 | | | $ | 9,831 | | 15.6 | % |
| Cost of Sales | $ | 56,864 | | | $ | 49,430 | | | $ | 7,434 | | 15.0 | % |
| Gross Profit | $ | 15,931 | | | $ | 13,534 | | | $ | 2,397 | | 17.7 | % |
| Gross Margin | | 21.9 | % | | | 21.5 | % | | | | | | |
| |
| Selling, Marketing & Warehouse | $ | 7,715 | | | $ | 6,777 | | | $ | 938 | | 13.8 | % |
| General & Administrative Expenses | $ | 5,051 | | | $ | 4,610 | | | $ | 441 | | 9.6 | % |
| Operating Income | $ | 3,165 | | | $ | 2,147 | | | $ | 1,018 | | 47.4 | % |
| % of Sales | | 4.3 | % | | | 3.4 | % | | | | | | |
| |
| | | | | |
| | FY 2017 | | FY 2016 | | Change |
| TOTAL | YTD | | YTD | | $'s | | % |
| Total Revenue | $ | 143,898 | | | $ | 122,166 | | | $ | 21,732 | | 17.8 | % |
| Total Cost of Sales | $ | 108,928 | | | $ | 93,047 | | | $ | 15,881 | | 17.1 | % |
| Gross Profit | $ | 34,970 | | | $ | 29,119 | | | $ | 5,851 | | 20.1 | % |
| Gross Margin | | 24.3 | % | | | 23.8 | % | | | | | | |
| |
| Selling, Marketing & Warehouse | $ | 16,554 | | | $ | 13,625 | | | $ | 2,929 | | 21.5 | % |
| General & Administrative Expenses | $ | 10,482 | | | $ | 9,192 | | | $ | 1,290 | | 14.0 | % |
| Operating Income | $ | 7,934 | | | $ | 6,302 | | | $ | 1,632 | | 25.9 | % |
| % of Revenue | | 5.5 | % | | | 5.2 | % | | | | | | |
