Exhibit 99.1
 |
NEWS
RELEASE
|
Transcat, Inc. 35 Vantage Point Drive • Rochester • NY • 14624 • Phone: (585) 352-7777
IMMEDIATE RELEASE
Transcat Reports Increased Net Income on 11th Consecutive Year of
Revenue Growth for Fiscal 2015
|
●
|
Record quarterly and annual revenue of $32.3 million and $123.6 million, respectively
|
|
●
|
Service segment fiscal 2015 operating income increased 55.2% on 7.5% revenue growth
|
|
●
|
Fourth quarter net income grew 12.0% to $1.9 million
|
ROCHESTER, NY, May 19, 2015 – Transcat, Inc. (NASDAQ: TRNS) (“Transcat” or the “Company”), a leading provider of accredited calibration and compliance services and distributor of professional grade handheld test, measurement and control instrumentation, today reported financial results for its fourth quarter and fiscal year ended March 28, 2015. Included in the reported results are those of Ulrich Metrology Inc., acquired on August 31, 2014, and Apex Metrology Solutions, acquired on March 6, 2015.
“Our fourth quarter results capped off a solid year for Transcat, highlighted by record annual revenue,” commented Lee D. Rudow, President and CEO. “Continued strength in our Service segment, driven by organic initiatives and recent acquisitions, fueled our strong performance and helped to offset the current margin pressure within the Distribution segment. Importantly, our Service segment results demonstrated the operating leverage inherent in this business with measurable gross and operating margin expansion and strong cash generation.”
Fourth Quarter Fiscal 2015 Review (Results are compared with the fourth quarter of fiscal 2014)
Fourth quarter revenue was a record $32.3 million, an increase of 6.4%, or $1.9 million, over the prior-year period, which reflects growth in both business segments. The Service segment revenue grew $1.0 million, or 7.5%, and Distribution segment sales increased $0.9 million, or 5.5%.
Service segment gross profit increased $0.6 million in the fourth quarter; however, this was offset by a $0.7 million reduction in Distribution segment gross profit. As a result, fourth quarter consolidated gross profit declined $0.1 million to $8.5 million. Total operating expenses were down $0.3 million to $5.4 million in the fourth quarter, primarily due to lower performance-based compensation. Operating income increased 6.3% to $3.1 million over the prior fiscal year period.
Fourth quarter net income was $1.9 million, a 12.0% increase compared with the prior-year period. Diluted earnings per share increased 12.5% to $0.27.
Adjusted EBITDA increased 6.9%, or $0.3 million, to $4.0 million, over the same quarter of the prior fiscal year period. Adjusted EBITDA as a percent of revenue was 12.3%. See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the Adjusted EBITDA Reconciliation table.
Fourth Quarter Service Segment Operating Margin Expands on Revenue Growth
The Service segment represents the Company’s accredited calibration and compliance services business (45% of total revenue for the fourth quarter of fiscal 2015)
Mr. Rudow added, “Our strategy has focused on growing our Service segment because of its strong inherent earnings power given the operating leverage gained on revenue growth. For the quarter, the segment achieved record revenue and operating income. Of note, the Service segment marked a significant milestone by surpassing the Distribution segment in annual operating income. We believe this achievement underscores the significant traction we have gained in growing our service business and the successful execution of our strategy, and also solidifies the Service segment as a primary driver of future growth at Transcat.”
Transcat Reports Increased Net Income on 11th Consecutive Year of Revenue Growth for Fiscal 2015
May 19, 2015
Page 2 of 12
|
·
|
Service segment revenue grew 7.5% to a record $14.5 million, which reflects a combination of organic and acquisition-related growth.
|
|
·
|
Service segment gross profit improved $0.6 million, or 13.5%, to $4.8 million. Fourth quarter gross margin for the segment improved 180 basis points to 33.2%.
|
|
·
|
Segment operating expenses declined 4.4% to $2.6 million compared with the fourth quarter of fiscal 2014, primarily due to lower performance-based compensation expense. As a percentage of Service segment revenue, operating expenses declined 220 basis points to 18.0%.
|
|
·
|
Fourth quarter Service segment operating income increased 45.9%, or $0.7 million, to $2.2 million, while segment operating margin expanded 400 basis points to 15.2%. The Service segment produced 68.7% operating leverage in the quarter. Note that operating leverage is defined as the year-over-year change in Service segment operating income divided by the year-over-year change in Service segment revenue.
|
|
·
|
Service segment contribution margin grew 22.4% to $3.2 million, from $2.6 million in the prior fiscal year period. Service segment Adjusted EBITDA increased 39.9%, or $0.8 million, to $2.8 million. As a percentage of Service segment revenue, Adjusted EBITDA was 19.5%, a 450 basis point expansion. See Note 1 on page 4 for descriptions of these non-GAAP financial measures and pages 9 and 10 for the Adjusted EBITDA Reconciliation table and the contribution margin calculation in the Additional Information – Business Segment Data table.
|
Fourth Quarter Distribution Segment Review
The Distribution segment represents the Company’s distribution of professional grade handheld test, measurement and control instrumentation business (55% of total revenue for the fourth quarter of fiscal 2015)
|
·
|
Distribution sales increased $0.9 million, or 5.5%, to $17.9 million, due to strong growth from alternative energy customers.
|
|
·
|
Distribution segment gross profit was $3.7 million, down $0.7 million from the fourth quarter of fiscal 2014. Gross margin was 20.7%, a 520 basis point reduction. Lower year-over-year vendor rebates accounted for 220 basis points of the decline. Vendor rebates tend to fluctuate as target levels are typically established by some vendors using growth rates based on prior-year results. Competitive pricing strategies, utilized to maintain and grow market share, and changes in product mix also negatively impacted segment gross margin.
|
|
·
|
Cost discipline and reduced expenses related to performance-based compensation helped to partially offset the year-over-year decline in Distribution segment gross profit, resulting in segment operating income of $0.9 million, a decrease of $0.5 million from the fourth quarter of fiscal 2014.
|
|
·
|
Contribution margin for the Distribution segment was $1.9 million compared with $2.7 million in the prior fiscal year period. Distribution segment Adjusted EBITDA was $1.1 million, down $0.5 million. See Note 1 on page 4 for descriptions of these non-GAAP financial measures and pages 9 and 10 for the Adjusted EBITDA Reconciliation table and contribution margin calculation in the Additional Information – Business Segment Data table.
|
Transcat Reports Increased Net Income on 11th Consecutive Year of Revenue Growth for Fiscal 2015
May 19, 2015
Page 3 of 12
Fiscal 2015 Review (Results are compared with fiscal 2014)
Total revenue increased to a record $123.6 million in fiscal 2015, up 4.3% from total revenue of $118.5 million in fiscal 2014. Both the Service and Distribution segments contributed to the year-over-year growth. Gross profit was $29.1 million, down $0.7 million, or 2.4%. Gross margin declined 160 basis points to 23.5%, primarily due to $1.8 million of lower Distribution segment vendor rebates, a 150 basis point negative impact to gross margin.
Operating expenses were $22.3 million, a decrease of $0.8 million. As a percentage of total revenue, operating expenses were 18.1%, an improvement over 19.5% in fiscal 2014. The reduction in operating expenses was primarily due to lower performance-based compensation expense. Net income was $4.0 million, up slightly over the fiscal 2014 performance. Earnings per diluted share were $0.57 in fiscal 2015, up 5.6% from $0.54 in fiscal 2014.
Adjusted EBITDA was $10.3 million in fiscal 2015, up 2.1%, or $0.2 million, over fiscal 2014.
Service Segment:
|
·
|
Revenue increased 7.5% to $51.8 million, driven by organic and acquisition-related growth.
|
|
·
|
Segment gross profit increased $1.3 million, or 10.0%, from fiscal 2014. Segment gross margin improved 60 basis points to 27.2%.
|
|
·
|
Segment operating income increased by 55.2%, or $1.3 million, when compared with fiscal 2014.
|
|
·
|
Service segment Adjusted EBITDA was $6.1 million, or 11.9% of segment revenue, an increase of 33.1% over fiscal 2014.
|
Distribution Segment:
|
·
|
Sales increased 2.1%, or $1.5 million, to $71.8 million in fiscal 2015.
|
|
·
|
Segment gross margin decreased 320 basis points to 20.9% in fiscal 2015, primarily due to $1.8 million less in vendor rebates and increased price discounting.
|
|
·
|
Segment operating income decreased 28.9%, or $1.3 million, as operating expense reductions were more than offset by the impact of reduced vendor rebates.
|
|
·
|
Distribution segment Adjusted EBITDA was $4.1 million in fiscal 2015.
|
See Note 1 on page 4 for a description of Adjusted EBITDA, a non-GAAP financial measure, and page 9 for the Adjusted EBITDA Reconciliation table.
Strong Balance Sheet Supports Growth Strategy
As of March 28, 2015, the Company had $16.0 million in availability under its secured revolving credit facility.
Capital expenditures in fiscal 2015 were $3.5 million, up from $2.0 million in fiscal 2014, and were primarily for expanded Service segment capabilities and strategic information technology upgrades, including the Company’s website and the new state-of-the-art C3 Metrology Management Software. The Company expects total capital expenditures to be approximately $4.0 million in fiscal 2016, which includes expanded Service segment capabilities and additional assets for the Company’s growing rental business.
Outlook
Mr. Rudow concluded, “In fiscal 2015, we generated solid momentum and made significant headway in aligning our resources to deliver improved long-term performance. During the year, we launched our new C3 Metrology Management Software and rolled-out our now robust and user-friendly e-commerce site. We believe both investments enhance our industry leading value proposition, continue to reinforce our competitive advantage, and are driving new business.
Transcat Reports Increased Net Income on 11th Consecutive Year of Revenue Growth for Fiscal 2015
May 19, 2015
Page 4 of 12
“As we enter fiscal 2016, we are confident in our direction and are continuing to invest for future growth and market share gains. While we will continue to experience some quarter-over-quarter fluctuations, we expect to achieve consolidated operating income growth in the mid-teens in fiscal 2016.”
Webcast and Conference Call
Transcat will host a conference call and webcast on Wednesday, May 20, 2015 at 11:00 a.m. ET. Management will review the financial and operating results for the quarter and full fiscal year period, 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 the day of the call through Wednesday, May 27, 2015. To listen to the archived call, dial (858) 384-5517 and enter conference ID number 13606822, or access the webcast replay at www.transcat.com/investor-relations. A transcript will also be posted to the website, 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, other income and expenses, and non-cash stock compensation expense), which is a non-GAAP measure. The Company believes Adjusted EBITDA allows investors to view its performance in a manner similar to the methods used by management and provides additional insight into its operating results. 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.
Contribution margin, a non-GAAP financial measure, consists of gross profit less selling, marketing and warehouse expenses. We believe contribution margin provides management and users of the financial statements information about our ability to cover our operating costs, such as technology and general and administrative expenses. Contribution margin is used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. The material limitation associated with the use of contribution margin is that it is an incomplete measure of profitability as it does not include all operating expenses or non-operating income and expenses. Management compensates for these limitations when using this measure by looking at other GAAP measures, such as operating income (loss) and net income (loss). For further details on contribution margin, see the calculation of this non-GAAP financial measure and the reconciliation of contribution margin to gross profit in the Additional Information – Business Segment Data tables on pages 10 and 11.
ABOUT TRANSCAT
Transcat, Inc. is a leading provider of accredited calibration and compliance services, including analytical instrument qualifications, equipment and process validation. The Company is focused on providing best-in-class calibration analytics to highly regulated industries, particularly healthcare, which includes companies in pharmaceuticals, medical devices and bioscience. With 18 strategically-located centers of excellence in the United States, Canada and Puerto Rico, Transcat performs over 200,000 specialized technical services annually. 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 answers the call with cGMP and GLP compliant services.
Transcat Reports Increased Net Income on 11th Consecutive Year of Revenue Growth for Fiscal 2015
May 19, 2015
Page 5 of 12
In addition, Transcat operates as a leading distributor of professional grade handheld test, measurement and control instrumentation, marketing more than 100,000 premier and propriety brand instruments to nearly 30,000 customers.
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 are subject to risks, uncertainties and assumptions that often 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, growth strategy, potential acquisitions, customer preferences 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 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 or publicly announce any revisions to any of the forward-looking statements contained in this press release.
For more information contact:
John J. Zimmer, Chief Financial Officer
Phone: (585) 352-7777
Email: jzimmer@transcat.com
-OR-
Deborah K. Pawlowski, Investor Relations
Phone: (716) 843-3908
Email: dpawlowski@keiadvisors.com
FINANCIAL TABLES FOLLOW.
Transcat Reports Increased Net Income on 11th Consecutive Year of Revenue Growth for Fiscal 2015
May 19, 2015
Page 6 of 12
TRANSCAT, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
|
Fourth Quarter Ended
|
Years Ended
|
|||||||||||||||
|
March 28,
|
March 29,
|
March 28,
|
March 29,
|
|||||||||||||
|
2015
|
2014
|
2015
|
2014
|
|||||||||||||
| (Unaudited) |
(Unaudited)
|
(Unaudited)
|
||||||||||||||
|
Service Revenue
|
$ | 14,465 | $ | 13,457 | $ | 51,801 | $ | 48,184 | ||||||||
|
Distribution Sales
|
17,877 | 16,946 | 71,823 | 70,324 | ||||||||||||
|
Total Revenue
|
32,342 | 30,403 | 123,624 | 118,508 | ||||||||||||
|
Cost of Service Revenue
|
9,661 | 9,226 | 37,698 | 35,359 | ||||||||||||
|
Cost of Distribution Sales
|
14,183 | 12,560 | 56,839 | 53,359 | ||||||||||||
|
Total Cost of Revenue
|
23,844 | 21,786 | 94,537 | 88,718 | ||||||||||||
|
Gross Profit
|
8,498 | 8,617 | 29,087 | 29,790 | ||||||||||||
|
Selling, Marketing and Warehouse Expenses
|
3,407 | 3,365 | 13,913 | 14,039 | ||||||||||||
|
Administrative Expenses
|
1,975 | 2,322 | 8,406 | 9,046 | ||||||||||||
|
Total Operating Expenses
|
5,382 | 5,687 | 22,319 | 23,085 | ||||||||||||
|
Operating Income
|
3,116 | 2,930 | 6,768 | 6,705 | ||||||||||||
|
Interest and Other Expense, net
|
79 | 102 | 345 | 259 | ||||||||||||
|
Income Before Income Taxes
|
3,037 | 2,828 | 6,423 | 6,446 | ||||||||||||
|
Provision for Income Taxes
|
1,128 | 1,124 | 2,397 | 2,462 | ||||||||||||
|
Net Income
|
$ | 1,909 | $ | 1,704 | $ | 4,026 | $ | 3,984 | ||||||||
|
Basic Earnings Per Share
|
$ | 0.28 | $ | 0.25 | $ | 0.59 | $ | 0.56 | ||||||||
|
Average Shares Outstanding
|
6,831 | 6,702 | 6,798 | 7,080 | ||||||||||||
|
Diluted Earnings Per Share
|
$ | 0.27 | $ | 0.24 | $ | 0.57 | $ | 0.54 | ||||||||
|
Average Shares Outstanding
|
7,083 | 6,980 | 7,059 | 7,357 | ||||||||||||
Transcat Reports Increased Net Income on 11th Consecutive Year of Revenue Growth for Fiscal 2015
May 19, 2015
Page 7 of 12
TRANSCAT, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
|
March 28,
|
March 29,
|
|||||||
|
2015
|
2014
|
|||||||
|
(Unaudited)
|
||||||||
|
ASSETS
|
||||||||
|
Current Assets:
|
||||||||
|
Cash
|
$ | 65 | $ | 23 | ||||
|
Accounts Receivable, less allowance for doubtful accounts of $111
|
||||||||
|
and $82 as of March 28, 2015 and March 29, 2014, respectively
|
16,899 | 15,663 | ||||||
|
Other Receivables
|
1,171 | 1,088 | ||||||
|
Inventory, net
|
6,750 | 6,181 | ||||||
|
Prepaid Expenses and Other Current Assets
|
1,209 | 1,180 | ||||||
|
Deferred Tax Asset
|
1,048 | 1,396 | ||||||
|
Total Current Assets
|
27,142 | 25,531 | ||||||
|
Property and Equipment, net
|
9,397 | 7,089 | ||||||
|
Goodwill
|
20,923 | 17,384 | ||||||
|
Intangible Assets, net
|
3,554 | 2,651 | ||||||
|
Other Assets
|
1,133 | 1,219 | ||||||
|
Total Assets
|
$ | 62,149 | $ | 53,874 | ||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
Current Liabilities:
|
||||||||
|
Accounts Payable
|
$ | 7,695 | $ | 7,132 | ||||
|
Accrued Compensation and Other Liabilities
|
4,195 | 5,690 | ||||||
|
Income Taxes Payable
|
43 | 1,035 | ||||||
|
Total Current Liabilities
|
11,933 | 13,857 | ||||||
|
Long-Term Debt
|
12,168 | 7,593 | ||||||
|
Deferred Tax Liability
|
1,684 | 607 | ||||||
|
Other Liabilities
|
2,046 | 1,734 | ||||||
|
Total Liabilities
|
27,831 | 23,791 | ||||||
|
Shareholders' Equity:
|
||||||||
|
Common Stock, par value $0.50 per share, 30,000,000 shares authorized;
|
||||||||
|
6,835,828 and 6,716,350 shares issued and outstanding
|
||||||||
|
as of March 28, 2015 and March 29, 2014, respectively
|
3,418 | 3,358 | ||||||
|
Capital in Excess of Par Value
|
12,289 | 11,387 | ||||||
|
Accumulated Other Comprehensive (Loss) Income
|
(143 | ) | 567 | |||||
|
Retained Earnings
|
18,754 | 14,771 | ||||||
|
Total Shareholders' Equity
|
34,318 | 30,083 | ||||||
|
Total Liabilities and Shareholders' Equity
|
$ | 62,149 | $ | 53,874 | ||||
Transcat Reports Increased Net Income on 11th Consecutive Year of Revenue Growth for Fiscal 2015
May 19, 2015
Page 8 of 12
TRANSCAT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
|
For the Years Ended
|
||||||||
|
March 28,
|
March 29,
|
|||||||
|
2015
|
2014
|
|||||||
|
(Unaudited)
|
||||||||
|
Cash Flows from Operating Activities:
|
||||||||
|
Net Income
|
$ | 4,026 | $ | 3,984 | ||||
|
Adjustments to Reconcile Net Income to Net Cash
|
||||||||
|
Provided by Operating Activities:
|
||||||||
|
Loss (Gain) on Disposal of Property and Equipment
|
3 | (34 | ) | |||||
|
Deferred Income Taxes
|
779 | (310 | ) | |||||
|
Depreciation and Amortization
|
3,090 | 2,945 | ||||||
|
Provision for Accounts Receivable and Inventory Reserves
|
128 | 1 | ||||||
|
Stock-Based Compensation Expense
|
507 | 527 | ||||||
|
Changes in Assets and Liabilities:
|
||||||||
|
Accounts Receivable and Other Receivables
|
(1,218 | ) | (424 | ) | ||||
|
Inventory
|
(593 | ) | 681 | |||||
|
Prepaid Expenses and Other Assets
|
(343 | ) | (623 | ) | ||||
|
Accounts Payable
|
464 | (1,751 | ) | |||||
|
Accrued Compensation and Other Liabilities
|
(1,502 | ) | 2,047 | |||||
|
Income Taxes Payable
|
(902 | ) | 569 | |||||
|
Net Cash Provided by Operating Activities
|
4,439 | 7,612 | ||||||
|
Cash Flows from Investing Activities:
|
||||||||
|
Purchases of Property and Equipment
|
(3,500 | ) | (1,961 | ) | ||||
|
Proceeds from Sale of Property and Equipment
|
51 | 249 | ||||||
|
Business Acquisitions, net of cash acquired
|
(7,279 | ) | - | |||||
|
Net Cash Used in Investing Activities
|
(10,728 | ) | (1,712 | ) | ||||
|
Cash Flows from Financing Activities:
|
||||||||
|
Proceeds from Revolving Line of Credit, net
|
4,575 | (424 | ) | |||||
|
Issuance of Common Stock
|
466 | 317 | ||||||
|
Repurchase of Common Stock
|
(71 | ) | (6,482 | ) | ||||
|
Excess Tax Benefits Related to Stock-Based Compensation
|
17 | 1 | ||||||
|
Net Cash Provided by (Used in) Financing Activities
|
4,987 | (6,588 | ) | |||||
|
Effect of Exchange Rate Changes on Cash
|
1,344 | 305 | ||||||
|
Net Increase (Decrease) in Cash
|
42 | (383 | ) | |||||
|
Cash at Beginning of Period
|
23 | 406 | ||||||
|
Cash at End of Period
|
$ | 65 | $ | 23 | ||||
Transcat Reports Increased Net Income on 11th Consecutive Year of Revenue Growth for Fiscal 2015
May 19, 2015
Page 9 of 12
TRANSCAT, INC.
Adjusted EBITDA Reconciliation Table
(Dollars in thousands)
(Unaudited)
| FY2015 | ||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 |
YTD
|
||||||||||||||||
|
Net Income
|
$ | 445 | $ | 859 | $ | 813 | $ | 1,909 | $ | 4,026 | ||||||||||
|
+ Interest Expense
|
31 | 47 | 77 | 79 | 234 | |||||||||||||||
|
+ Other Expense / (Income)
|
14 | 91 | 6 | 0 | 111 | |||||||||||||||
|
+ Tax Provision
|
269 | 519 | 481 | 1,128 | 2,397 | |||||||||||||||
|
Operating Income
|
$ | 759 | $ | 1,516 | $ | 1,377 | $ | 3,116 | $ | 6,768 | ||||||||||
|
+ Depreciation & Amortization
|
624 | 747 | 897 | 822 | 3,090 | |||||||||||||||
|
+ Other (Expense) / Income
|
(14 | ) | (91 | ) | (6 | ) | 0 | (111 | ) | |||||||||||
|
+ Noncash Stock Compensation
|
155 | 234 | 85 | 33 | 507 | |||||||||||||||
|
Adjusted EBITDA
|
$ | 1,524 | $ | 2,406 | $ | 2,353 | $ | 3,971 | $ | 10,254 | ||||||||||
|
Segment Breakdown
|
||||||||||||||||||||
|
Service Operating Income
|
$ | 267 | $ | 665 | $ | 562 | $ | 2,199 | $ | 3,693 | ||||||||||
|
+ Depreciation & Amortization
|
488 | 577 | 676 | 621 | 2,362 | |||||||||||||||
|
+ Other (Expense) / Income
|
(15 | ) | (85 | ) | (33 | ) | (5 | ) | (138 | ) | ||||||||||
|
+ Noncash Stock Compensation
|
72 | 103 | 39 | 10 | 224 | |||||||||||||||
|
Service Adjusted EBITDA
|
$ | 812 | $ | 1,260 | $ | 1,244 | $ | 2,825 | $ | 6,141 | ||||||||||
|
Distribution Operating Income
|
$ | 492 | $ | 851 | $ | 815 | $ | 917 | $ | 3,075 | ||||||||||
|
+ Depreciation & Amortization
|
136 | 170 | 221 | 201 | 728 | |||||||||||||||
|
+ Other (Expense) / Income
|
1 | (6 | ) | 27 | 5 | 27 | ||||||||||||||
|
+ Noncash Stock Compensation
|
83 | 131 | 46 | 23 | 283 | |||||||||||||||
|
Distribution Adjusted EBITDA
|
$ | 712 | $ | 1,146 | $ | 1,109 | $ | 1,146 | $ | 4,113 | ||||||||||
| FY2014 | ||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 |
YTD
|
||||||||||||||||
|
Net Income
|
$ | 721 | $ | 771 | $ | 788 | $ | 1,704 | $ | 3,984 | ||||||||||
|
+ Interest Expense
|
26 | 25 | 34 | 45 | 130 | |||||||||||||||
|
+ Other Expense / (Income)
|
(22 | ) | 43 | 51 | 57 | 129 | ||||||||||||||
|
+ Tax Provision
|
427 | 442 | 469 | 1,124 | 2,462 | |||||||||||||||
|
Operating Income
|
$ | 1,152 | $ | 1,281 | $ | 1,342 | $ | 2,930 | $ | 6,705 | ||||||||||
|
+ Depreciation & Amortization
|
729 | 711 | 791 | 714 | 2,945 | |||||||||||||||
|
+ Other (Expense) / Income
|
22 | (43 | ) | (51 | ) | (57 | ) | (129 | ) | |||||||||||
|
+ Noncash Stock Compensation
|
113 | 144 | 143 | 127 | 527 | |||||||||||||||
|
Adjusted EBITDA
|
$ | 2,016 | $ | 2,093 | $ | 2,225 | $ | 3,714 | $ | 10,048 | ||||||||||
|
Segment Breakdown
|
||||||||||||||||||||
|
Service Operating Income
|
$ | 461 | $ | 260 | $ | 151 | $ | 1,507 | $ | 2,379 | ||||||||||
|
+ Depreciation & Amortization
|
555 | 521 | 555 | 513 | 2,144 | |||||||||||||||
|
+ Other (Expense) / Income
|
(14 | ) | (42 | ) | (32 | ) | (53 | ) | (141 | ) | ||||||||||
|
+ Noncash Stock Compensation
|
52 | 63 | 63 | 52 | 230 | |||||||||||||||
|
Service Adjusted EBITDA
|
$ | 1,054 | $ | 802 | $ | 737 | $ | 2,019 | $ | 4,612 | ||||||||||
|
Distribution Operating Income
|
$ | 691 | $ | 1,021 | $ | 1,191 | $ | 1,423 | $ | 4,326 | ||||||||||
|
+ Depreciation & Amortization
|
174 | 190 | 236 | 201 | 801 | |||||||||||||||
|
+ Other (Expense) / Income
|
36 | (1 | ) | (19 | ) | (4 | ) | 12 | ||||||||||||
|
+ Noncash Stock Compensation
|
61 | 81 | 80 | 75 | 297 | |||||||||||||||
|
Distribution Adjusted EBITDA
|
$ | 962 | $ | 1,291 | $ | 1,488 | $ | 1,695 | $ | 5,436 | ||||||||||
Transcat Reports Increased Net Income on 11th Consecutive Year of Revenue Growth for Fiscal 2015
May 19, 2015
Page 10 of 12
TRANSCAT, INC.
Additional Information - Business Segment Data
(Dollars in thousands)
(Unaudited)
|
Change
|
||||||||||||||||
|
SERVICE
|
FY 2015
Q4
|
FY 2014
Q4
|
$ | % | ||||||||||||
|
Service Revenue
|
$ | 14,465 | $ | 13,457 | $ | 1,008 | 7.5 | % | ||||||||
|
Cost of Revenue
|
$ | 9,661 | $ | 9,226 | $ | 435 | 4.7 | % | ||||||||
|
Gross Profit
|
$ | 4,804 | $ | 4,231 | $ | 573 | 13.5 | % | ||||||||
|
Gross Margin
|
33.2 | % | 31.4 | % | ||||||||||||
|
Selling, Marketing & Warehouse Expenses
|
$ | 1,652 | $ | 1,656 | $ | (4 | ) | (0.2 | %) | |||||||
|
Contribution Margin
|
$ | 3,152 | $ | 2,575 | $ | 577 | 22.4 | % | ||||||||
|
% of Revenue
|
21.8 | % | 19.1 | % | ||||||||||||
|
Administrative Expenses
|
$ | 953 | $ | 1,068 | $ | (115 | ) | (10.8 | )% | |||||||
|
Operating Income
|
$ | 2,199 | $ | 1,507 | $ | 692 | 45.9 | % | ||||||||
|
% of Revenue
|
15.2 | % | 11.2 | % | ||||||||||||
|
Change
|
||||||||||||||||
|
DISTRIBUTION
|
FY 2015
Q4
|
FY 2014
Q4
|
$ | % | ||||||||||||
|
Distribution Sales
|
$ | 17,877 | $ | 16,946 | $ | 931 | 5.5 | % | ||||||||
|
Cost of Sales
|
$ | 14,183 | $ | 12,560 | $ | 1,623 | 12.9 | % | ||||||||
|
Gross Profit
|
$ | 3,694 | $ | 4,386 | $ | (692 | ) | (15.8 | %) | |||||||
|
Gross Margin
|
20.7 | % | 25.9 | % | ||||||||||||
|
Selling, Marketing & Warehouse Expenses
|
$ | 1,755 | $ | 1,709 | $ | 46 | 2.7 | % | ||||||||
|
Contribution Margin
|
$ | 1,939 | $ | 2,677 | $ | (738 | ) | (27.6 | %) | |||||||
|
% of Sales
|
10.8 | % | 15.8 | % | ||||||||||||
|
Administrative Expenses
|
$ | 1,022 | $ | 1,254 | $ | (232 | ) | (18.5 | %) | |||||||
|
Operating Income
|
$ | 917 | $ | 1,423 | $ | (506 | ) | (35.6 | %) | |||||||
|
% of Sales
|
5.1 | % | 8.4 | % | ||||||||||||
|
Change
|
||||||||||||||||
|
TOTAL
|
FY 2015
Q4
|
FY 2014
Q4
|
$ | % | ||||||||||||
|
Total Revenue
|
$ | 32,342 | $ | 30,403 | $ | 1,939 | 6.4 | % | ||||||||
|
Total Cost of Revenue
|
$ | 23,844 | $ | 21,786 | $ | 2,058 | 9.4 | % | ||||||||
|
Gross Profit
|
$ | 8,498 | $ | 8,617 | $ | (119 | ) | (1.4 | %) | |||||||
|
Gross Margin
|
26.3 | % | 28.3 | % | ||||||||||||
|
Selling, Marketing & Warehouse Expenses
|
$ | 3,407 | $ | 3,365 | $ | 42 | 1.2 | % | ||||||||
|
Contribution Margin
|
$ | 5,091 | $ | 5,252 | $ | (161 | ) | (3.1 | %) | |||||||
|
% of Revenue
|
15.7 | % | 17.3 | % | ||||||||||||
|
Administrative Expenses
|
$ | 1,975 | $ | 2,322 | $ | (347 | ) | (14.9 | %) | |||||||
|
Operating Income
|
$ | 3,116 | $ | 2,930 | $ | 186 | 6.3 | % | ||||||||
|
% of Revenue
|
9.6 | % | 9.6 | % | ||||||||||||
Transcat Reports Increased Net Income on 11th Consecutive Year of Revenue Growth for Fiscal 2015
May 19, 2015
Page 11 of 12
TRANSCAT, INC.
Additional Information - Business Segment Data
(Dollars in thousands)
(Unaudited)
|
Change
|
||||||||||||||||
|
SERVICE
|
FY 2015
YTD
|
FY 2014
YTD
|
$ | % | ||||||||||||
|
Service Revenue
|
$ | 51,801 | $ | 48,184 | $ | 3,617 | 7.5 | % | ||||||||
|
Cost of Revenue
|
$ | 37,698 | $ | 35,359 | $ | 2,339 | 6.6 | % | ||||||||
|
Gross Profit
|
$ | 14,103 | $ | 12,825 | $ | 1,278 | 10.0 | % | ||||||||
|
Gross Margin
|
27.2 | % | 26.6 | % | ||||||||||||
|
Selling, Marketing & Warehouse Expenses
|
$ | 6,584 | $ | 6,690 | $ | (106 | ) | (1.6 | %) | |||||||
|
Contribution Margin
|
$ | 7,519 | $ | 6,135 | $ | 1,384 | 22.6 | % | ||||||||
|
% of Revenue
|
14.5 | % | 12.7 | % | ||||||||||||
|
Administrative Expenses
|
$ | 3,826 | $ | 3,756 | $ | 70 | 1.9 | % | ||||||||
|
Operating Income
|
$ | 3,693 | $ | 2,379 | $ | 1,314 | 55.2 | % | ||||||||
|
% of Revenue
|
7.1 | % | 4.9 | % | ||||||||||||
|
Change
|
||||||||||||||||
|
DISTRIBUTION
|
FY 2015
YTD
|
FY 2014
YTD
|
$ | % | ||||||||||||
|
Distribution Sales
|
$ | 71,823 | $ | 70,324 | $ | 1,499 | 2.1 | % | ||||||||
|
Cost of Sales
|
$ | 56,839 | $ | 53,359 | $ | 3,480 | 6.5 | % | ||||||||
|
Gross Profit
|
$ | 14,984 | $ | 16,965 | $ | (1,981 | ) | (11.7 | %) | |||||||
|
Gross Margin
|
20.9 | % | 24.1 | % | ||||||||||||
|
Selling, Marketing & Warehouse Expenses
|
$ | 7,329 | $ | 7,349 | $ | (20 | ) | (0.3 | %) | |||||||
|
Contribution Margin
|
$ | 7,655 | $ | 9,616 | $ | (1,961 | ) | (20.4 | %) | |||||||
|
% of Sales
|
10.7 | % | 13.7 | % | ||||||||||||
|
Administrative Expenses
|
$ | 4,580 | $ | 5,290 | $ | (710 | ) | (13.4 | %) | |||||||
|
Operating Income
|
$ | 3,075 | $ | 4,326 | $ | (1,251 | ) | (28.9 | %) | |||||||
|
% of Sales
|
4.3 | % | 6.2 | % | ||||||||||||
|
Change
|
||||||||||||||||
|
TOTAL
|
FY 2015
YTD
|
FY 2014
YTD
|
$ | % | ||||||||||||
|
Total Revenue
|
$ | 123,624 | $ | 118,508 | $ | 5,116 | 4.3 | % | ||||||||
|
Total Cost of Revenue
|
$ | 94,537 | $ | 88,718 | $ | 5,819 | 6.6 | % | ||||||||
|
Gross Profit
|
$ | 29,087 | $ | 29,790 | $ | (703 | ) | (2.4 | %) | |||||||
|
Gross Margin
|
23.5 | % | 25.1 | % | ||||||||||||
|
Selling, Marketing & Warehouse Expenses
|
$ | 13,913 | $ | 14,039 | $ | (126 | ) | (0.9 | %) | |||||||
|
Contribution Margin
|
$ | 15,174 | $ | 15,751 | $ | (577 | ) | (3.7 | %) | |||||||
|
% of Revenue
|
12.3 | % | 13.3 | % | ||||||||||||
|
Administrative Expenses
|
$ | 8,406 | $ | 9,046 | $ | (640 | ) | (7.1 | %) | |||||||
|
Operating Income
|
$ | 6,768 | $ | 6,705 | $ | 63 | 0.9 | % | ||||||||
|
% of Revenue
|
5.5 | % | 5.7 | % | ||||||||||||
Transcat Reports Increased Net Income on 11th Consecutive Year of Revenue Growth for Fiscal 2015
May 19, 2015
Page 12 of 12
DISTRIBUTION SALES PER BUSINESS DAY
(Dollars in thousands)
(Unaudited)
|
Change
|
||||||||||||||||
|
FY 2015 Q4
|
FY 2014 Q4
|
$ | % | |||||||||||||
|
Distribution Sales
|
$ | 17,877 | $ | 16,946 | $ | 913 | 5.5 | % | ||||||||
|
Business Days
|
63 | 64 | (1 | ) | ||||||||||||
|
Sales Per Business Day
|
$ | 284 | $ | 265 | $ | 19 | 7.2 | % | ||||||||
|
Change
|
||||||||||||||||
|
FY 2015 YTD
|
FY 2014 YTD
|
$ | % | |||||||||||||
|
Distribution Sales
|
$ | 71,823 | $ | 70,324 | $ | 1,499 | 2.1 | % | ||||||||
|
Business Days
|
250 | 251 | (1 | ) | ||||||||||||
|
Sales Per Business Day
|
$ | 287 | $ | 280 | $ | 7 | 2.5 | % | ||||||||
