UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 8-K
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||||||
CURRENT REPORT
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||||||
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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||||||
Date of Report (Date of earliest event reported)
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July 31, 2012
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Transcat, Inc.
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(Exact name of registrant as specified in its charter) | ||
Ohio
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000-03905
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16-0874418
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(State or other jurisdiction
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(Commission
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(IRS Employer
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of incorporation)
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File Number)
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Identification No.)
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35 Vantage Point Drive, Rochester, New York
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14624
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(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code
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585-352-7777
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(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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||||||
[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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||||||
[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit No.
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Description
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99.1
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Transcat, Inc. Press Release dated July 31, 2012
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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TRANSCAT, INC.
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Dated: August 3, 2012
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By:
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/s/ John J. Zimmer
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John J. Zimmer
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Senior Vice President of Finance and Chief Financial Officer
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·
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Total net revenue decreased 2.0% to $25.1 million as increased Service segment revenue partially offset lower Product segment sales
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·
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Product segment gross and operating margins improved despite lower sales
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·
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First quarter net income increased 11.1% from the first quarter of the prior fiscal year
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Transcat Reports 4% Increase in Operating Income for Fiscal 2013 First Quarter
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Page 2
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July 31, 2012
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Transcat Reports 4% Increase in Operating Income for Fiscal 2013 First Quarter
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Page 3
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July 31, 2012
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Transcat Reports 4% Increase in Operating Income for Fiscal 2013 First Quarter
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Page 4
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July 31, 2012
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Transcat Reports 4% Increase in Operating Income for Fiscal 2013 First Quarter
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Page 5
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July 31, 2012
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(Unaudited)
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||||||||
First Quarter Ended
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||||||||
June 30,
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June 25,
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|||||||
2012
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2011
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|||||||
Product Sales
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$ | 16,365 | $ | 17,182 | ||||
Service Revenue
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8,732 | 8,423 | ||||||
Net Revenue | 25,097 | 25,605 | ||||||
Cost of Products Sold
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12,155 | 12,914 | ||||||
Cost of Services Sold
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6,735 | 6,393 | ||||||
Total Cost of Products and Services Sold
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18,890 | 19,307 | ||||||
Gross Profit
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6,207 | 6,298 | ||||||
Selling, Marketing and Warehouse Expenses
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3,441 | 3,626 | ||||||
Administrative Expenses
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2,172 | 2,102 | ||||||
Total Operating Expenses
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5,613 | 5,728 | ||||||
Operating Income
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594 | 570 | ||||||
Interest and Other Expense, net
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47 | 45 | ||||||
Income Before Income Taxes
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547 | 525 | ||||||
Provision for Income Taxes
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186 | 200 | ||||||
Net Income
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361 | 325 | ||||||
Basic Earnings Per Share
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$ | 0.05 | $ | 0.04 | ||||
Average Shares Outstanding
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7,375 | 7,277 | ||||||
Diluted Earnings Per Share
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$ | 0.05 | $ | 0.04 | ||||
Average Shares Outstanding
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7,681 | 7,608 |
Transcat Reports 4% Increase in Operating Income for Fiscal 2013 First Quarter
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Page 6
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July 31, 2012
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TRANSCAT, INC.
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||||||||
CONSOLIDATED BALANCE SHEETS
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||||||||
(In Thousands, Except Share and Per Share Amounts)
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||||||||
(Unaudited)
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||||||||
June 30,
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March 31,
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|||||||
2012
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2012
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|||||||
ASSETS
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||||||||
Current Assets:
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||||||||
Cash
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$ | 44 | $ | 32 | ||||
Accounts Receivable, less allowance for doubtful accounts of $97
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||||||||
and $99 as of June 30, 2012 and March 31, 2012, respectively
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11,905 | 13,800 | ||||||
Other Receivables
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1,041 | 845 | ||||||
Inventory, net
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7,224 | 6,396 | ||||||
Prepaid Expenses and Other Current Assets
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1,067 | 1,064 | ||||||
Deferred Tax Asset
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857 | 1,041 | ||||||
Total Current Assets
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22,138 | 23,178 | ||||||
Property and Equipment, net
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5,426 | 5,306 | ||||||
Goodwill
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13,384 | 13,390 | ||||||
Intangible Assets, net
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2,265 | 2,449 | ||||||
Deferred Tax Asset
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315 | - | ||||||
Other Assets
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849 | 654 | ||||||
Total Assets
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$ | 44,377 | $ | 44,977 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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||||||||
Current Liabilities:
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||||||||
Accounts Payable
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$ | 6,248 | $ | 7,516 | ||||
Accrued Compensation and Other Liabilities
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2,873 | 5,171 | ||||||
Income Taxes Payable
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219 | 366 | ||||||
Total Current Liabilities
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9,340 | 13,053 | ||||||
Long-Term Debt
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5,852 | 3,365 | ||||||
Deferred Tax Liability
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- | 139 | ||||||
Other Liabilities
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1,382 | 1,042 | ||||||
Total Liabilities
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16,574 | 17,599 | ||||||
Shareholders' Equity:
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||||||||
Common Stock, par value $0.50 per share, 30,000,000 shares authorized;
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||||||||
7,905,461 and 7,840,994 shares issued as of June 30, 2012 and
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March 31, 2012, respectively; 7,406,679 and 7,341,007 shares
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||||||||
outstanding as of June 30, 2012 and March 31, 2012, respectively
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3,953 | 3,920 | ||||||
Capital in Excess of Par Value
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10,932 | 10,810 | ||||||
Accumulated Other Comprehensive Income
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357 | 448 | ||||||
Retained Earnings
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14,755 | 14,394 | ||||||
Less: Treasury Stock, at cost, 498,782 shares
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(2,194 | ) | (2,194 | ) | ||||
Total Shareholders' Equity
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27,803 | 27,378 | ||||||
Total Liabilities and Shareholders' Equity
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$ | 44,377 | $ | 44,977 |
Transcat Reports 4% Increase in Operating Income for Fiscal 2013 First Quarter
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Page 7
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July 31, 2012
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TRANSCAT, INC.
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||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
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||||||||
(In Thousands)
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||||||||
(Unaudited)
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||||||||
First Quarter Ended
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June 30,
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June 25,
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|||||||
2012
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2011
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|||||||
Cash Flows from Operating Activities:
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Net Income
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$ | 361 | $ | 325 | ||||
Adjustments to Reconcile Net Income to Net Cash
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Used in Operating Activities:
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Deferred Income Taxes
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(218 | ) | (8 | ) | ||||
Depreciation and Amortization
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600 | 670 | ||||||
Provision for Accounts Receivable and Inventory Reserves
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70 | 66 | ||||||
Stock-Based Compensation Expense
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75 | 258 | ||||||
Changes in Assets and Liabilities:
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||||||||
Accounts Receivable and Other Receivables
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1,662 | (297 | ) | |||||
Inventory
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(808 | ) | (1,028 | ) | ||||
Prepaid Expenses and Other Assets
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(346 | ) | (163 | ) | ||||
Accounts Payable
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(1,254 | ) | 213 | |||||
Accrued Compensation and Other Liabilities
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(2,089 | ) | (543 | ) | ||||
Income Taxes Payable
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(147 | ) | (58 | ) | ||||
Net Cash Used in Operating Activities
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(2,094 | ) | (565 | ) | ||||
Cash Flows from Investing Activities:
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Purchase of Property and Equipment
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(453 | ) | (610 | ) | ||||
Business Acquisition
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- | (125 | ) | |||||
Net Cash Used in Investing Activities
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(453 | ) | (735 | ) | ||||
Cash Flows from Financing Activities:
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Revolving Line of Credit, net
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2,487 | 1,296 | ||||||
Payments on Other Debt Obligations
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- | (6 | ) | |||||
Payments of Contingent Consideration
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(14 | ) | (58 | ) | ||||
Issuance of Common Stock
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80 | 70 | ||||||
Excess Tax Benefits Related to Stock-Based Compensation
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- | 6 | ||||||
Net Cash Provided by Financing Activities
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2,553 | 1,308 | ||||||
Effect of Exchange Rate Changes on Cash
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6 | 2 | ||||||
Net Increase in Cash
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12 | 10 | ||||||
Cash at Beginning of Period
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32 | 32 | ||||||
Cash at End of Period
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$ | 44 | $ | 42 |
Transcat Reports 4% Increase in Operating Income for Fiscal 2013 First Quarter
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Page 8
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July 31, 2012
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EBITDA By Segment Reconciliation | ||||||||||||||||||||||||
FY 2013 First Quarter
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FY 2012 First Quarter | |||||||||||||||||||||||
Total
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Product
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Service
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Total
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Product
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Service
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|||||||||||||||||||
Net Income (Loss)
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$ | 361 | $ | 557 | $ | (196 | ) | $ | 325 | $ | 505 | (180 | ) | |||||||||||
+ Interest
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21 | 0 | 21 | 28 | 0 | 28 | ||||||||||||||||||
+ Taxes
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186 | 287 | (101 | ) | 200 | 310 | (110 | ) | ||||||||||||||||
+ Depreciation & Amortization
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600 | 241 | 359 | 670 | 246 | 424 | ||||||||||||||||||
EBITDA
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$ | 1,168 | $ | 1,085 | $ | 83 | $ | 1,223 | $ | 1,061 | 162 |
Transcat Reports 4% Increase in Operating Income for Fiscal 2013 First Quarter
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Page 9
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July 31, 2012
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(Unaudited)
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(Unaudited)
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|||||||||||||||
Quarter ended
June 30, 2012
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Quarter ended
June 25, 2011
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$
Change
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%
Change
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|||||||||||||
Products
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||||||||||||||||
Net sales
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$ | 16,365 | $ | 17,182 | $ | (817 | ) | (4.8 | %) | |||||||
Gross profit
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4,210 | 4,268 | (58 | ) | (1.4 | %) | ||||||||||
Margin
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25.7 | % | 24.8 | % | ||||||||||||
Operating income
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852 | 821 | 31 | 3.8 | % | |||||||||||
Margin
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5.2 | % | 4.8 | % | ||||||||||||
Services
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||||||||||||||||
Net revenue
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$ | 8,732 | $ | 8,423 | $ | 309 | 3.7 | % | ||||||||
Gross profit
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1,997 | 2,030 | (33 | ) | (1.6 | %) | ||||||||||
Margin
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22.9 | % | 24.1 | % | ||||||||||||
Operating Loss
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(258 | ) | (251 | ) | (7 | ) | (2.8 | %) | ||||||||
Margin
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(3.0 | %) | (3.0 | %) | ||||||||||||
Consolidated
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||||||||||||||||
Net revenue
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$ | 25,097 | $ | 25,605 | $ | (508 | ) | (2.0 | %) | |||||||
Gross profit
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6,207 | 6,298 | (91 | ) | (1.4 | %) | ||||||||||
Margin
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24.7 | % | 24.6 | % | ||||||||||||
Operating income
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594 | 570 | 24 | 4.2 | % | |||||||||||
Margin
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2.4 | % | 2.2 | % |
Transcat Reports 4% Increase in Operating Income for Fiscal 2013 First Quarter
|
Page 10
|
July 31, 2012
|
PRODUCT SALES PER BUSINESS DAY
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||||||||||||||||||||
(Dollars in thousands)
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||||||||||||||||||||
(Unaudited)
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||||||||||||||||||||
FY 2013
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||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 |
FY 2013
YTD
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||||||||||||||||
Number of business days
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63 | 63 | ||||||||||||||||||
Total product sales
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$ | 16,365 | $ | 16,365 | ||||||||||||||||
Sales per day
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$ | 260 | $ | 260 | ||||||||||||||||
FY 2012
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||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 |
FY 2012
Total
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||||||||||||||||
Number of business days
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64 | 63 | 63 | 68 | 258 | |||||||||||||||
Total product sales
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$ | 17,182 | $ | 16,969 | $ | 19,382 | $ | 20,081 | $ | 73,614 | ||||||||||
Sales per day
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$ | 268 | $ | 269 | $ | 308 | $ | 295 | $ | 285 |
PRODUCT SEGMENT SALES BY REGION
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||||||||||||||||||||||||
(Dollars in thousands)
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||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||
FY 2013
|
||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 |
FY 2013
YTD
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% of
Total
|
|||||||||||||||||||
United States
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$ | 14,095 | $ | 14,095 | 86.1 | % | ||||||||||||||||||
Canada
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1,422 | 1,422 | 8.7 | % | ||||||||||||||||||||
Other International
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595 | 595 | 3.6 | % | ||||||||||||||||||||
Freight Billed to Customers
|
253 | 253 | 1.6 | % | ||||||||||||||||||||
Total
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$ | 16,365 | $ | 16,365 | ||||||||||||||||||||
FY 2012
|
||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 |
FY 2012
Total
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% of
Total
|
|||||||||||||||||||
United States
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$ | 14,979 | $ | 14,943 | $ | 16,967 | $ | 17,668 | $ | 64,557 | 87.7 | % | ||||||||||||
Canada
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1,258 | 1,249 | 1,433 | 1,358 | 5,298 | 7.2 | % | |||||||||||||||||
Other International
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689 | 531 | 700 | 740 | 2,660 | 3.6 | % | |||||||||||||||||
Freight Billed to Customers
|
256 | 246 | 282 | 315 | 1,099 | 1.5 | % | |||||||||||||||||
Total
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$ | 17,182 | $ | 16,969 | $ | 19,382 | $ | 20,081 | $ | 73,614 |
Transcat Reports 4% Increase in Operating Income for Fiscal 2013 First Quarter
|
Page 11
|
July 31, 2012
|
SERVICE SEGMENT REVENUE BY TYPE
|
||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||
FY 2013
|
||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 |
FY 2013
YTD
|
% of
Total
|
|||||||||||||||||||
Depot/On-site
|
$ | 6,908 | $ | 6,908 | 79.1 | % | ||||||||||||||||||
Outsourced
|
1,597 | 1,597 | 18.3 | % | ||||||||||||||||||||
Freight Billed to Customers
|
227 | 227 | 2.6 | % | ||||||||||||||||||||
Total Service Revenue
|
$ | 8,732 | $ | 8,732 | ||||||||||||||||||||
FY 2012
|
||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 |
FY 2012
Total
|
% of
Total
|
|||||||||||||||||||
Depot/On-site
|
$ | 6,542 | $ | 6,490 | $ | 7,069 | $ | 8,608 | $ | 28,709 | 78.9 | % | ||||||||||||
Outsourced
|
1,673 | 1,520 | 1,791 | 1,788 | 6,772 | 18.6 | % | |||||||||||||||||
Freight Billed to Customers
|
208 | 204 | 218 | 295 | 925 | 2.5 | % | |||||||||||||||||
Total Service Revenue
|
$ | 8,423 | $ | 8,214 | $ | 9,078 | $ | 10,691 | $ | 36,406 |
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