BusinessWire

Transcat Reports Record Third Quarter Revenue in Fiscal 2020

  • Record third quarter consolidated revenue of $43.2 million in fiscal 2020
  • Solid Service segment organic revenue growth of 7.8% reflects continued market expansion, including within the highly regulated life sciences market
  • Distribution segment revenue growth of 3.5%
  • Generated $8.2 million in cash from fiscal year-to-date operations, up 13.6%

ROCHESTER, N.Y.--(BUSINESS WIRE)--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 third quarter ended December 28, 2019 (the “third quarter”) of the fiscal year ending March 28, 2020 (“fiscal 2020”). Results include the previously reported acquisition of Gauge Repair Service, effective April 1, 2019.


Lee D. Rudow, President and CEO, commented, “We had solid growth in the third quarter, despite being heavily impacted by holiday timing that caused an unusually slow December. This low volume in the last month of our third quarter weighed on margins and masked the improvements we are seeing throughout the organization. Our Service operations are more efficient and our productivity metrics have improved over the course of this fiscal year, reflecting our focused efforts to hire and train an appropriate number of technicians to support our continued growth and to ensure customer satisfaction.

We have a strong pipeline of organic and acquisition opportunities, and our performance metrics are a solid leading indicator of customer retention, all of which support belief in our execution and long-term strategy.”

Third Quarter Fiscal 2020 Review [Results are compared with the third quarter of the fiscal year ended March 30, 2019 (“fiscal 2019”)]

       

($ in thousands)

Change

       

FY20 Q3

FY19 Q3

$'s

%

       

Service Revenue

$

22,087

 

$

20,492

 

$

1,595

 

7.8

%

       

Distribution Sales

 

21,092

 

 

20,376

 

 

716

 

3.5

%

       

Revenue

$

43,179

 

$

40,868

 

$

2,311

 

5.7

%

       

Gross Profit

$

9,928

 

$

9,548

 

$

380

 

4.0

%

       

Gross Margin

 

23.0

%

 

 

23.4

%

       

 

 

 

 

 

 

 

 

       

Operating Income

$

2,091

 

$

2,394

 

 

(303

)

(12.7

%)

       

Operating Margin

 

4.8

%

 

 

5.9

%

       

 

 

 

 

 

 

 

 

       

Net Income

$

1,477

 

 

$

1,569

 

 

 

(92

)

 

(5.9

%)

       

Net Margin

 

3.4

%

 

 

3.8

%

 

 

 

 

       

 

 

 

 

 

 

 

 

       

Adjusted EBITDA*

$

4,066

 

 

$

4,378

 

 

$

(312

)

 

(7.1

%)

       

Adjusted EBITDA* Margin

 

9.4

%

 

 

10.7

%

 

 

 

 

*See Note 1 below for a description of this non-GAAP financial measure and the attached Adjusted EBITDA Reconciliation table.

The Company achieved revenue of $43.2 million, a record level for a third quarter, which was driven by growth in both segments. Gross and operating margins were largely impacted by the under absorption of fixed costs from a slow December.

The effective tax rate for the third quarter of fiscal 2020 was 22.1% compared with 25.3% in the prior fiscal year period. The tax rate continues to be aided by the discrete income tax benefits related to share-based awards due to stock option exercise activity. Third quarter net income per diluted share was $0.20 compared with $0.21 in last fiscal year’s corresponding period.

Service segment delivers 43rd consecutive quarter of year-over-year revenue growth

Represents the accredited calibration, repair, inspection and laboratory instrument services business (51% of total revenue for the third quarter of fiscal 2020).

       

($ in thousands)

Change

       

FY20 Q3

FY19 Q3

$'s

%

       

 

       

Service Segment Revenue

$

22,087

 

$

20,492

 

$

1,595

 

7.8

%

       

Gross Profit

$

4,866

 

$

4,488

 

$

378

 

8.4

%

       

Gross Margin

 

22.0

%

 

 

21.9

%

         
       

Operating Income

$

488

 

$

578

 

$

(90

)

(15.6

%)

       

Operating Margin

 

2.2

%

 

2.8

%

       

 

 

 

 

 

 

 

 

       

Adjusted EBITDA*

$

1,866

 

 

$

1,981

 

 

$

(115

)

 

(5.8

%)

       

Adjusted EBITDA* Margin

 

8.4

%

 

 

9.7

%

 

 

 

 

*See Note 1 below for a description of this non-GAAP financial measure and the attached Adjusted EBITDA Reconciliation table.

Service segment revenue increased 7.8%, which was all organic. On a trailing twelve-month basis (“TTM”), Service segment revenue was $92.3 million, a 13.0% improvement compared with the TTM ending with the prior-fiscal year third quarter. Higher revenue was primarily the result of new business from the highly regulated life sciences market, including the ramp-up of new client-based lab contracts, and growth in U.S. and Canadian general industrial manufacturing.

Although Service gross margin increased 10 basis points, the segment gross and operating margin changes reflected the impact of a soft December.

Distribution segment sales improved, but customer mix impacted margins

Represents the distribution and rental of new and used professional grade handheld test, measurement and control instrumentation (49% of total revenue for the third quarter of fiscal 2020).

       

($ in thousands)

Change

       

FY20 Q3

FY19 Q3

$'s

 

%

       

Distribution Segment Sales

$

21,092

 

$

20,376

 

$

716

 

3.5

%

       

Gross Profit

$

5,062

 

$

5,060

 

$

2

 

0.0

%

       

Gross Margin

 

24.0

%

 

24.8

%

       

 

       

Operating Income

$

1,603

 

$

1,816

 

$

(213

)

(11.7

%)

       

Operating Margin

 

7.6

%

 

8.9

%

       

 

 

 

 

 

 

 

 

       

Adjusted EBITDA*

$

2,200

 

 

$

2,397

 

 

$

(197

)

 

(8.2

%)

       

Adjusted EBITDA* Margin

 

10.4

%

 

 

11.8

%

 

 

 

 

*See Note 1 below for a description of this non-GAAP financial measure and the attached Adjusted EBITDA Reconciliation table.

The Company’s higher margin equipment rental business increased 3.4% to $1.2 million in the third quarter, a relatively low growth rate compared with the double-digit growth experienced in recent quarters. As a result, segment gross margin was less favorably impacted by rentals compared with the prior fiscal year third quarter.

Nine Month Review (Results are compared with the first nine months of fiscal 2019)

Total revenue was $127.3 million, up 9.4%, or $10.9 million, inclusive of acquired revenue of $1.7 million. Consolidated gross profit was up 9.4%, or $2.6 million, with a gross margin of 23.9%. Total operating expenses increased 10 basis points to 18.3% of revenue as the Company ramped up for higher capacity. As a result, operating income increased 7.8%, to $7.1 million, though operating margin was down 10 basis points to 5.6%.

Net income was $5.6 million, or $0.75 per diluted share, compared with $4.5 million, or $0.60 per diluted share. Adjusted EBITDA was $12.8 million compared with $12.2 million. See Note 1 below for a description of this non-GAAP financial measure and the attached Adjusted EBITDA Reconciliation table.

Balance Sheet and Cash Flow Overview

Year-to-date net cash provided by operations increased $1.0 million, or 13.6%, to $8.2 million, and was used to fund organic growth opportunities, acquisition payments and debt repayments. In the third quarter of fiscal 2020, $0.4 million of cash was used to fund the release of certain purchase agreement holdbacks from the August 2018 acquisition of Angel’s Instrumentation, Inc.

Capital expenditures were $5.0 million for the first nine months of fiscal 2020, with investments focused on technology infrastructure to drive operational excellence, fund organic growth opportunities within both operating segments, and for rental pool assets.

At December 28, 2019, the Company had total debt of $19.7 million, with $23.4 million available under its credit facility. The Company’s leverage ratio, as defined in the credit agreement, was 1.07 at December 28, 2019, compared with 1.12 at fiscal 2019 year-end.

Outlook

Mr. Rudow concluded, “Our sales have bounced-back in January and early February from the slow, holiday-impacted December and we believe we remain on track to achieve record results in fiscal 2020. In addition, our acquisition pipeline is healthy and will remain a key element of our strategic growth plan.

We are strategically positioned to capitalize on growth opportunities as we have added significant capacity to our lab network. We ended the third quarter with a net increase of 37 technicians over the prior-year period, a 12% increase in staffing. Availability of trained technical labor is now a key differentiator and competitive advantage for Transcat.

We are also pleased with our progress in developing a culture centered on technology and increased productivity as imperatives. As we move forward, we expect to continue to improve on this important cultural advancement, and believe we are well-positioned to support double-digit Service growth with improved profitability margins going forward.”

Transcat lowered its income tax rate expectations for fiscal 2020 to range between 17% and 18%, from the previously provided range of 18% to 19%.

The Company lowered its capital expenditure expectations for fiscal 2020 to a range of $6.8 million to $7.1 million, from the previously provided range of $7.8 to $8.2 million, largely due to the timing of certain projects and less spend required on Service lab replacement assets.

Webcast and Conference Call

Transcat will host a conference call and webcast on Wednesday, February 5, 2020 at 11:00 a.m. ET. Management will review the financial and operating results for the third quarter, 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 at www.transcat.com/investor-relations. The conference call can be accessed by calling (201) 689-8471. Alternatively, the webcast can be monitored at www.transcat.com/investor-relations.

A telephonic replay will be available from 2:00 p.m. ET on the day of the call through Wednesday, February 12, 2020. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13697525, or access the webcast replay at www.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, non-cash stock-based compensation expense, and non-cash loss on sale of building), 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. As such, the Company uses Adjusted EBITDA as a measure of performance when evaluating its business segments and as a basis for planning and forecasting. Adjusted EBITDA 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 for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. Adjusted EBITDA, 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 the attached Adjusted EBITDA Reconciliation table below.

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 21 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 new and used national and proprietary brand instruments to customers primarily in North America. The Company believes its combined Service and Distribution segment offerings, experience, technical expertise and integrity create a unique and compelling value proposition for its customers.

Transcat’s strategy is to leverage the complementary nature of its two operating segments, its comprehensive service capabilities, strong brand, enhanced e-commerce capabilities 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 its inherent leverage of its business model.

More information about Transcat can be found at: Transcat.com.

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 are identified by words such as “expects,” “estimates,” “projects,” “anticipates,” “believes,” “could,” “plans,” 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, the commercialization of software products, 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, which speak only as of the date they are made. 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 news release, whether as the result of new information, future events or otherwise.

FINANCIAL TABLES FOLLOW.

 

TRANSCAT, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts)

 

(Unaudited)

 

(Unaudited)

Third Quarter Ended

 

Nine Months Ended

December 28,

 

December 29,

 

December 28,

 

December 29,

 

2019

 

 

2018

 

 

2019

 

 

2018

Service Revenue

$

         22,087

$

         20,492

$

        67,987

$

        59,719

Distribution Sales

 

21,092

 

20,376

 

59,350

 

56,686

Total Revenue

 

43,179

 

40,868

 

127,337

 

116,405

 

Cost of Service Revenue

 

17,221

 

16,004

 

51,737

 

45,505

Cost of Distribution Sales

 

16,030

 

15,316

 

45,175

 

43,100

Total Cost of Revenue

 

33,251

 

31,320

 

96,912

 

88,605

 

 

Gross Profit

 

9,928

 

9,548

 

30,425

 

27,800

 

Selling, Marketing and Warehouse Expenses

 

4,463

 

4,215

 

13,166

 

12,267

General and Administrative Expenses

 

3,374

 

2,939

 

10,151

 

8,938

Total Operating Expenses

 

7,837

 

7,154

 

23,317

 

21,205

 

 

 

Operating Income

 

2,091

 

 

2,394

 

7,108

 

6,595

 

 

Interest and Other Expense, net

 

194

 

295

 

776

 

715

 

 

 

Income Before Income Taxes

 

1,897

 

 

2,099

 

6,332

 

5,880

Provision for Income Taxes

 

420

 

 

530

 

758

 

1,395

 

Net Income

$

           1,477

$

           1,569

$

          5,574

$

          4,485

 

Basic Earnings Per Share

$

             0.20

$

             0.22

$

            0.76

$

            0.62

Average Shares Outstanding

 

7,367

 

7,203

 

7,316

 

7,192

 

Diluted Earnings Per Share

$

             0.20

$

             0.21

$

            0.75

$

            0.60

Average Shares Outstanding

 

7,557

 

7,518

 

7,470

 

7,500

   

TRANSCAT, INC.

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

   

(Unaudited)

 

(Audited)

December 28,

 

March 30,

2019

 

2019

ASSETS

 

Current Assets:

 

Cash

$

204

 

 

$

788

 

Accounts Receivable, less allowance for doubtful accounts of $439

 

and $338 as of December 28, 2019 and March 30, 2019, respectively

 

26,718

 

 

 

27,469

 

Other Receivables

 

1,313

 

 

 

1,116

 

Inventory, net

 

14,452

 

 

 

14,304

 

Prepaid Expenses and Other Current Assets

 

1,920

 

 

 

1,329

 

Total Current Assets

 

44,607

 

 

 

45,006

 

Property and Equipment, net

 

20,646

 

 

 

19,653

 

Goodwill

 

34,961

 

 

 

34,545

 

Intangible Assets, net

 

3,955

 

 

 

5,233

 

Right To Use Assets, net

 

9,021

 

 

 

-

 

Other Assets

 

821

 

 

 

793

 

Total Assets

$

114,011

 

 

$

105,230

 

   

LIABILITIES AND SHAREHOLDERS' EQUITY

 

Current Liabilities:

 

Accounts Payable

$

10,893

 

 

$

14,572

 

Accrued Compensation and Other Liabilities

 

6,848

 

 

 

5,450

 

Income Taxes Payable

 

40

 

 

 

228

 

Current Portion of Long-Term Debt

 

1,960

 

 

 

1,899

 

Total Current Liabilities

 

19,741

 

 

 

22,149

 

Long-Term Debt

 

17,748

 

 

 

19,103

 

Deferred Tax Liabilities

 

2,472

 

 

 

2,450

 

Lease Liabilities

 

7,333

 

 

 

-

 

Other Liabilities

 

1,933

 

 

 

1,898

 

Total Liabilities

 

49,227

 

 

 

45,600

 

   

Shareholders' Equity:

 

Common Stock, par value $0.50 per share, 30,000,000 shares authorized;

 

7,376,488 and 7,210,882 shares issued and outstanding

 

as of December 28, 2019 and March 30, 2019, respectively

 

3,688

 

 

 

3,605

 

Capital in Excess of Par Value

 

17,556

 

 

 

16,467

 

Accumulated Other Comprehensive Loss

 

(444

)

 

 

(611

)

Retained Earnings

 

43,984

 

 

 

40,169

 

Total Shareholders' Equity

 

64,784

 

 

 

59,630

 

Total Liabilities and Shareholders' Equity

$

114,011

 

 

$

105,230

 

 

TRANSCAT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

 
 

(Unaudited)

For the Nine Months Ended

December 28,

 

December 29,

2019

 

2018

Cash Flows from Operating Activities:

 

Net Income

$

5,574

 

 

$

4,485

 

Adjustments to Reconcile Net Income to Net Cash Provided

 

 

by Operating Activities:

 

Net Loss on Disposal of Property and Equipment

 

253

 

 

 

6

 

Deferred Income Taxes

 

22

 

 

 

(20

)

Depreciation and Amortization

 

4,951

 

 

 

4,733

 

Provision for Accounts Receivable and Inventory Reserves

 

311

 

 

 

122

 

Stock-Based Compensation

 

610

 

 

 

969

 

Changes in Assets and Liabilities:

 

 

Accounts Receivable and Other Receivables

 

398

 

 

 

393

 

Inventory

 

341

 

 

 

(544

)

Prepaid Expenses and Other Assets

 

(689

)

 

 

(156

)

Accounts Payable

 

(3,679

)

 

 

(2,169

)

Accrued Compensation and Other Liabilities

 

347

 

 

 

(1,170

)

Income Taxes Payable

 

(204

)

 

 

597

 

Net Cash Provided by Operating Activities

 

8,235

 

 

 

7,246

 

   

Cash Flows from Investing Activities:

 

Purchase of Property and Equipment

 

(5,001

)

 

 

(5,452

)

Proceeds from Sale of Property and Equipment

 

184

 

 

 

-

 

Business Acquisitions, net of cash acquired

 

(452

)

 

 

(3,614

)

Payment of Contingent Consideration & Holdbacks Related to Business Acquisitions

 

(864

)

 

 

(108

)

Net Cash Used in Investing Activities

 

(6,133

)

 

 

(9,174

)

   

Cash Flows from Financing Activities:

 

Proceeds from Revolving Credit Facility, net

 

122

 

 

 

807

 

Proceeds from Term Loan

 

-

 

 

 

2,500

 

Repayments of Term Loan

 

(1,416

)

 

 

(1,607

)

Issuance of Common Stock

 

1,625

 

 

 

193

 

Repurchase of Common Stock

 

(2,822

)

 

 

(143

)

Net Cash (Used in) Provided by Financing Activities

 

(2,491

)

 

 

1,750

 

 

 

Effect of Exchange Rate Changes on Cash

 

(195

)

 

 

421

 

 

 

 

Net (Decrease) Increase in Cash

 

(584

)

 

 

243

 

Cash at Beginning of Period

 

788

 

 

 

577

 

Cash at End of Period

$

204

 

 

$

820

 

 

TRANSCAT, INC.

Adjusted EBITDA Reconciliation Table

(Dollars in thousands)

(Unaudited)

 

 

 

Fiscal 2020

 

 

Q1

Q2

Q3

Q4

YTD

Net Income

$

1,718

 

$

2,379

 

$

1,477

 

$

5,574

 

+ Interest Expense

 

244

 

 

243

 

 

216

 

 

703

 

+ Other Expense / (Income)

 

41

 

 

54

 

 

(22

)

 

73

 

+ Tax Provision

 

(45

)

 

383

 

 

420

 

 

758

 

Operating Income

$

1,958

 

$

3,059

 

$

2,091

 

 

$

7,108

 

+ Depreciation & Amortization

 

1,622

 

 

1,681

 

 

1,648

 

 

 

4,951

 

+ Other (Expense) / Income

 

159

 

 

(54

)

 

22

 

 

127

 

+ Noncash Stock Compensation

 

203

 

 

102

 

 

305

 

 

610

 

Adjusted EBITDA

$

3,942

 

$

4,788

 

$

4,066

 

 

$

12,796

 

 

Segment Breakdown

Service Operating Income

$

738

 

$

1,837

 

$

488

 

$

3,063

 

+ Depreciation & Amortization

 

1,220

 

 

1,246

 

 

1,206

 

 

3,672

 

+ Other (Expense) / Income

 

77

 

 

(38

)

 

13

 

 

52

 

+ Noncash Stock Compensation

 

112

 

 

56

 

 

159

 

 

327

 

Service Adjusted EBITDA

$

2,147

 

$

3,101

 

$

1,866

 

 

$

7,114

 

 

Distribution Operating Income

$

1,220

 

$

1,222

 

$

1,603

 

$

4,045

 

+ Depreciation & Amortization

 

401

 

 

436

 

 

442

 

 

1,279

 

+ Other (Expense) / Income

 

83

 

 

(17

)

 

9

 

 

75

 

+ Noncash Stock Compensation

 

91

 

 

46

 

 

146

 

 

283

 

Distribution Adjusted EBITDA

$

1,795

 

$

1,687

 

$

2,200

 

 

$

5,682

 

 

 

 

Fiscal 2019

 

 

Q1

Q2

Q3

Q4

YTD

Net Income

$

1,428

 

$

1,488

 

$

1,569

 

$

2,660

 

$

7,145

 

+ Interest Expense

 

206

 

 

197

 

 

250

 

 

250

 

 

903

 

+ Other Expense / (Income)

 

19

 

 

(2

)

 

45

 

 

29

 

 

91

 

+ Tax Provision

 

372

 

 

493

 

 

530

 

 

695

 

 

2,090

 

Operating Income

$

2,025

 

$

2,176

 

$

2,394

 

$

3,634

 

$

10,229

 

+ Depreciation & Amortization

 

1,567

 

 

1,500

 

 

1,666

 

 

1,628

 

 

6,361

 

+ Other (Expense) / Income

 

(19

)

 

2

 

 

(45

)

 

(29

)

 

(91

)

+ Noncash Stock Compensation

 

269

 

 

337

 

 

363

 

 

358

 

 

1,327

 

Adjusted EBITDA

$

3,842

 

$

4,015

 

$

4,378

 

$

5,591

 

$

17,826

 

 

Segment Breakdown

Service Operating Income

$

1,068

 

$

1,125

 

$

578

 

$

2,431

 

$

5,202

 

+ Depreciation & Amortization

 

1,189

 

 

1,116

 

 

1,248

 

 

1,201

 

 

4,754

 

+ Other (Expense) / Income

 

(13

)

 

(1

)

 

(35

)

 

(20

)

 

(69

)

+ Noncash Stock Compensation

 

146

 

 

174

 

 

190

 

 

192

 

 

702

 

Service Adjusted EBITDA

$

2,390

 

$

2,414

 

$

1,981

 

$

3,804

 

$

10,589

 

 

Distribution Operating Income

$

957

 

$

1,051

 

$

1,816

 

$

1,203

 

$

5,027

 

+ Depreciation & Amortization

 

378

 

 

384

 

 

418

 

 

427

 

 

1,607

 

+ Other (Expense) / Income

 

(6

)

 

3

 

 

(10

)

 

(9

)

 

(22

)

+ Noncash Stock Compensation

 

123

 

 

163

 

 

173

 

 

166

 

 

625

 

Distribution Adjusted EBITDA

$

1,452

 

$

1,601

 

$

2,397

 

$

1,787

 

$

7,237

 

 

TRANSCAT, INC.

Additional Information - Business Segment Data

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

Change

SERVICE

FY 2020 Q3

 

FY 2019 Q3

 

$'s

 

%

 

 

 

 

 

 

 

 

Service Revenue

$22,087

 

$20,492

 

$1,595

 

7.8%

Cost of Revenue

$17,221

 

$16,004

 

$1,217

 

7.6%

Gross Profit

$4,866

 

$4,488

 

$378

 

8.4%

Gross Margin

22.0%

 

21.9%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$2,331

 

$2,229

 

$102

 

4.6%

General and Administrative Expenses

$2,047

 

$1,681

 

$366

 

21.8%

Operating Income

$488

 

$578

 

($90)

 

(15.6%)

% of Revenue

2.2%

 

2.8%

 

 

 

 

 

 

 

 

 

 

Change

DISTRIBUTION

FY 2020 Q3

 

FY 2019 Q3

 

$'s

 

%

Distribution Sales

$21,092

 

$20,376

 

$716

 

3.5%

Cost of Sales

$16,030

 

$15,316

 

$714

 

4.7%

Gross Profit

$5,062

 

$5,060

 

$2

 

0.0%

Gross Margin

24.0%

 

24.8%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$2,132

 

$1,986

 

$146

 

7.4%

General and Administrative Expenses

$1,327

 

$1,258

 

$69

 

5.5%

Operating Income

$1,603

 

$1,816

 

($213)

 

(11.7%)

% of Sales

7.6%

 

8.9%

 

 

 

 

 

 

 

 

 

 

Change

TOTAL

FY 2020 Q3

 

FY 2019 Q3

 

$'s

 

%

 

 

 

 

 

 

 

 

Total Revenue

$43,179

 

$40,868

 

$2,311

 

5.7%

Total Cost of Revenue

$33,251

 

$31,320

 

$1,931

 

6.2%

Gross Profit

$9,928

 

$9,548

 

$380

 

4.0%

Gross Margin

23.0%

 

23.4%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$4,463

 

$4,215

 

$248

 

5.9%

General and Administrative Expenses

$3,374

 

$2,939

 

$435

 

14.8%

Operating Income

$2,091

 

$2,394

 

($303)

 

(12.7%)

% of Revenue

4.8%

 

5.9%

 

 

 

 


Contacts

Michael J. Tschiderer, Chief Financial Officer
Phone: (585) 563-5766
Email: mtschiderer@transcat.com

Deborah K. Pawlowski, Investor Relations
Phone: (716) 843-3908
Email: dpawlowski@keiadvisors.com


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