Transcat Reports Record Third Quarter EBITDA on Service Revenue Growth of 22% and Strong Gross Margin Expansion

  • Consolidated revenue of $50.9 million, up 15.5% versus prior year
  • Service segment organic revenue grew 10.2% and gross margin expanded 180 basis points to 29.7%
  • Consolidated EBITDA of $5.5 million, an increase of 20% versus prior year

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 and nine-month period ended December 25, 2021 (the “third quarter”) of fiscal year 2022, which ends March 26, 2022 (“fiscal 2022”). Results include the previously reported acquisitions of BioTek Services, Inc. (“BioTek”) effective December 16, 2020, Upstate Metrology (“Upstate”) effective April 29, 2021 and Cal OpEx Limited (d/b/a NEXA Enterprise Asset Management), (“NEXA”) effective August 31, 2021.

“Our excellent third quarter results were driven by continued strong performance from our Service business.” commented Lee D. Rudow, President and CEO. “Service revenue grew 22% as robust demand in our highly regulated end markets drove 10.2% organic growth and was supplemented by 12% growth from acquisitions. Gross margin expanded 180 basis points to a third quarter record of 29.7% and was driven by operating leverage on our fixed costs from the strong organic growth and accretive gross margins from recent acquisitions.”

“Our Distribution segment revenue grew 7.2%, modestly below our expectations, as vendor lead times extended further toward the end of the calendar year. However, orders remained strong and we enter our fiscal fourth quarter with a record $9 million in backlog, up $3.3 million from prior year. Overall, our Service segment performance drove third quarter consolidated adjusted EBITDA of $5.5 million, an increase of 20% from the prior year.”

Mr. Rudow added, “Acquisitions continue to be an important part of our growth strategy. We are pleased with how the program has performed and the level of activity in our current pipeline. Our recent acquisitions enhance our long-term growth potential and have added unique capabilities, extended our geographic reach and increased our available market. The pipettes businesses we have acquired over the last two years, pipettes.com and Biotek, have created a powerful platform for growth and have exceeded our original expectations. NEXA, which has also performed well, is a natural complement to our core calibration offerings and expands our reach into Ireland and the attractive market for asset management services. Additionally, in late December, we announced the acquisition of Tangent Labs, which gives us new local presence in Indiana, an attractive life sciences market, and Huntsville, Alabama, which has a large aerospace and defense market.”

Third Quarter Fiscal 2022 Review (Results are compared with the third quarter of the fiscal year ended March 27, 2021 (“fiscal 2021”))

($ in thousands)

 

 

 

 

Change

FY22 Q3

 

FY21 Q3

 

$’s

 

%

Service Revenue

$

30,237

 

$

24,776

 

$

5,461

 

22.0%

Distribution Sales

 

20,665

 

 

19,286

 

 

1,379

 

7.2%

Revenue

$

50,902

 

$

44,062

 

$

6,840

 

15.5%

Gross Profit

$

13,636

 

$

11,245

 

$

2,391

 

21.3%

Gross Margin

 

26.8%

 

 

25.5%

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

$

2,361

 

$

2,519

 

$

(158)

 

(6.3%)

Operating Margin

 

4.6%

 

 

5.7%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

1,629

 

$

1,761

 

$

(132)

 

(7.5%)

Net Margin

 

3.2%

 

 

4.0%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

$

5,466

 

$

4,562

 

$

904

 

19.8%

Adjusted EBITDA* Margin

 

10.7%

 

 

10.4%

 

 

 

 

*See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the Adjusted EBITDA Reconciliation table.

Consolidated revenue was $50.9 million, an increase of 15.5%. Consolidated gross profit was $13.6 million, an increase of $2.4 million, or 21.3%, and gross margin expanded 130 basis points to 26.8% due to strong operational performance in the Service segment. Operating expenses increased $2.5 million, or 29.2%, driven by incremental expenses from acquired businesses, increases in employee and stock compensation costs and investments in technology. Adjusted EBITDA was $5.5 million and increased by 19.8%. Net income per diluted share decreased to $0.21 from $0.23.

Service segment achieved strong revenue growth and gross margin expansion

Represents the accredited calibration, repair, inspection and laboratory instrument services business (59.4% of total revenue for the third quarter of fiscal 2022).

($ in thousands)

 

 

 

 

Change

FY22 Q3

 

FY21 Q3

 

$’s

 

%

 

 

 

 

 

 

 

 

Service Segment Revenue

$

30,237

 

$

24,776

 

$

5,461

 

22.0%

Gross Profit

$

8,983

 

$

6,915

 

$

2,068

 

29.9%

Gross Margin

 

29.7%

 

 

27.9%

 

 

 

 

 

 

 

 

 

 

 

Operating Income

$

1,661

 

$

1,956

 

$

(295)

 

(15.1%)

Operating Margin

 

5.5%

 

 

7.9%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

$

4,088

 

$

3,446

 

$

642

 

18.6%

Adjusted EBITDA* Margin

 

13.5%

 

 

13.9%

 

 

 

 

*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 segment revenue increased 22.0% to $30.2 million and included $2.9 million of incremental revenue from acquisitions. Organic revenue growth was 10.2% and was driven by strong end market demand and continued market share gains.

The segment gross margin increased by 180 basis points due to operating leverage on our fixed costs and accretive gross margins from recent acquisitions.

Distribution shows revenue increases

Represents the sale and rental of new and used professional grade handheld test, measurement and control instrumentation (40.6% of total revenue for the third quarter of fiscal 2022).

($ in thousands)

 

 

 

 

Change

FY22 Q3

 

FY21 Q3

 

$’s

 

%

Distribution Segment Sales

$

20,665

 

$

19.286

 

$

1,379

 

7.2%

Gross Profit

$

4,653

 

$

4.330

 

$

323

 

7.5%

Gross Margin

 

22.5%

 

 

22.5%

 

 

 

 

 

 

 

 

 

 

Operating Income

$

700

 

$

563

 

$

137

 

24.3%

Operating Margin

 

3.4%

 

 

2.9%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

$

1,378

 

$

1,116

 

$

262

 

23.5%

Adjusted EBITDA* Margin

 

6.7%

 

 

5.8%

 

 

 

 

*See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the Adjusted EBITDA Reconciliation table.

Distribution sales increased 7.2% on improved market conditions and an easier comparison to the prior year period, which was impacted by the COVID-19 pandemic. Distribution segment gross margins were flat compared to prior year.

Nine Month Review (Results are compared with the first nine months of fiscal 2021)

Total revenue was $149.1 million, an increase of 19.7%. Consolidated gross profit was up $9.6 million, or 29.9%, and gross margin expanded to 28.0% or 220 basis points. Consolidated operating expenses increased $6.6 million, or 25.6%, driven by incremental expenses from acquired businesses, increases in employee and stock compensation costs, investments in technology and one-time transaction expenses related to acquisitions that closed in the fiscal year. As a result, consolidated operating income was $9.6 million compared with $6.6 million in last fiscal year’s period.

Net income was $8.3 million, or $1.10 per diluted share, compared with $4.6 million, or $0.61 per diluted share. Adjusted EBITDA was $18.7 million, an increase of 40.5% compared to prior year. See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the Adjusted EBITDA Reconciliation table.

Balance Sheet Highlights

At December 25, 2021, the Company had $48.3 million available for borrowing under its secured revolving credit facility. Total debt of $40.8 million was up $21.2 million from fiscal 2021 year-end. The Company’s leverage ratio, as defined in the credit agreement, was 1.47 at December 25, 2021, compared with 0.94 at March 27, 2021.

Outlook

Mr. Rudow concluded, “We are incredibly proud of our dedicated team, which has successfully executed through the challenges of the COVID-19 pandemic and consistently delivered excellent results. We have a strong balance sheet, sustainable Service segment gross margins and an active M&A pipeline. We are confident that the strength of our unique and enhanced value proposition and our new customer pipeline positions us well for continued strong organic growth.

“For the fourth quarter of fiscal 2022, which is historically the strongest quarter of our fiscal year due to the seasonality of our Service business, we expect Service revenue growth to be in the high-teens. We expect Service gross margin to be in the range of 35% as we benefit from a seasonally higher level of volume. Distribution revenue is expected to grow high single-digits in the fourth quarter. Total operating expenses are expected to increase approximately $0.5 million sequentially from the third quarter and will include expenses associated with our recent acquisition of Tangent Labs.”

Transcat expects its income tax rate for fiscal 2022 to range between 14% to 15%, unchanged from previous expectations.

Webcast and Conference Call

Transcat will host a conference call and webcast on Wednesday, February 2, 2022 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 9, 2022. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13726586, 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 compensation expense, restructuring expense, non-cash loss on sale of building and acquisition related transaction expenses), 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, stock-based compensation expense and other items, 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, rather 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, particularly the Life Science industry, which includes pharmaceutical, biotechnology, medical device and other FDA-regulated businesses; as well as aerospace and defense, and energy and utilities. Transcat provides periodic on-site services, mobile calibration services, pickup and delivery, in-house services at its 22 Calibration Service Centers strategically located across the United States, Puerto Rico, Canada and Ireland, and services at 20 imbedded customer-site locations. 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 the 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,” “aims” and other similar words. All statements addressing operating performance, events or developments that Transcat expects or anticipates will occur in the future, including but not limited to statements relating to anticipated revenue, profit margins, the Company’s response to the coronavirus (“COVID-19”) pandemic, the commercialization of software projects, 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 include those 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 25,

December 26,

December 25,

December 26,

2021

2020

2021

2020

Service Revenue

$

30,237

$

24,776

$

87,338

$

72,297

Distribution Sales

 

20,665

 

19,286

 

61,741

 

52,276

Total Revenue

 

50,902

 

44,062

 

149,079

 

124,573

 

Cost of Service Revenue

 

21,254

 

17,861

 

59,891

 

51,413

Cost of Distribution Sales

 

16,012

 

14,956

 

47,421

 

41,012

Total Cost of Revenue

 

37,266

 

32,817

 

107,312

 

92,425

 

Gross Profit

 

13,636

 

11,245

 

41,767

 

32,148

 

Selling, Marketing and Warehouse Expenses

 

5,051

 

4,675

 

15,022

 

13,040

General and Administrative Expenses

 

6,224

 

4,051

 

17,117

 

12,547

Total Operating Expenses

 

11,275

 

8,726

 

32,139

 

25,587

 

Operating Income

 

2,361

 

2,519

 

9,628

 

6,561

 

Interest and Other Expense, net

 

136

 

219

 

581

 

779

 

Income Before Income Taxes

 

2,225

 

2,300

 

9,047

 

5,782

Provision for Income Taxes

 

596

 

539

 

715

 

1,199

 

Net Income

$

1,629

$

1,761

$

8,332

$

4,583

 

Basic Earnings Per Share

$

0.22

$

0.24

$

1.11

$

0.62

Average Shares Outstanding

 

7,519

 

7,437

 

7,487

 

7,415

 

Diluted Earnings Per Share

$

0.21

$

0.23

$

1.10

$

0.61

Average Shares Outstanding

 

7,653

 

7,580

 

7,599

 

7,532

TRANSCAT, INC.

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

 

(Unaudited)

(Audited)

December 25,

March 27,

2021

2021

ASSETS

Current Assets:

Cash

$

2,779

$

560

Accounts Receivable, less allowance for doubtful accounts of $505

and $526 as of December 25, 2021 and March 27, 2021, respectively

 

34,702

 

33,950

Other Receivables

 

628

 

428

Inventory, net

 

13,868

 

11,636

Prepaid Expenses and Other Current Assets

 

5,572

 

2,354

Total Current Assets

 

57,549

 

48,928

Property and Equipment, net

 

23,781

 

22,203

Goodwill

 

59,133

 

43,272

Intangible Assets, net

 

11,503

 

7,513

Right To Use Asset, net

 

8,738

 

9,392

Other Assets

 

896

 

808

Total Assets

$

161,600

$

132,116

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current Liabilities:

Accounts Payable

$

12,965

$

12,276

Accrued Compensation and Other Liabilities

 

9,514

 

10,417

Income Taxes Payable

 

 

382

Current Portion of Long-Term Debt

 

2,140

 

2,067

Total Current Liabilities

 

24,619

 

25,142

Long-Term Debt

 

38,616

 

17,494

Deferred Tax Liabilities

 

4,912

 

3,201

Lease Liabilities

 

7,123

 

7,958

Other Liabilities

 

3,432

 

3,243

Total Liabilities

 

78,702

 

57,038

 

Shareholders’ Equity:

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

7,520,719 and 7,458,251 shares issued and outstanding

as of December 25, 2021 and March 27, 2021, respectively

 

3,760

 

3,729

Capital in Excess of Par Value

 

23,452

 

19,287

Accumulated Other Comprehensive Loss

 

(717)

 

(451)

Retained Earnings

 

56,403

 

52,513

Total Shareholders’ Equity

 

82,898

 

75,078

Total Liabilities and Shareholders’ Equity

$

161,600

$

132,116

TRANSCAT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

 

(Unaudited)

For the Nine Months Ended

 

December 25,

December 26,

2021

 

2020

Cash Flows from Operating Activities:

Net Income

$

8,332

 

$

4,583

 

Adjustments to Reconcile Net Income to Net Cash Provided

 

by Operating Activities:

Net Loss on Disposal of Property and Equipment

 

113

 

 

65

 

Deferred Income Taxes

 

5

 

 

75

 

Depreciation and Amortization

 

6,899

 

 

5,596

 

Provision for Accounts Receivable and Inventory Reserves

 

417

 

 

699

 

Stock-Based Compensation

 

1,681

 

 

875

 

Changes in Assets and Liabilities:

Accounts Receivable and Other Receivables

 

1,185

 

 

902

 

Inventory

 

(1,794

)

 

2,072

 

Prepaid Expenses and Other Assets

 

(3,280

)

 

(678

)

Accounts Payable

 

689

 

 

(2,103

)

Accrued Compensation and Other Liabilities

 

(1,470

)

 

3,391

 

Income Taxes Payable

 

(399

)

 

170

 

Net Cash Provided by Operating Activities

 

12,378

 

 

15,647

 

 

Cash Flows from Investing Activities:

Purchase of Property and Equipment

 

(5,861

)

 

(4,295

)

 

Proceeds from Sale of Property and Equipment

 

12

 

 

 

 

Business Acquisitions, net of cash acquired

 

(20,910

)

 

(3,447

)

Net Cash Used in Investing Activities

 

(26,759

)

 

 

(7,742

)

 

Cash Flows from Financing Activities:

Proceeds from (Repayments of) Revolving Credit Facility, net

 

22,760

 

 

(4,504

)

Repayments of Term Loan

 

(1,565

)

 

(1,477

)

Issuance of Common Stock

 

1,354

 

 

649

 

Repurchase of Common Stock

 

(5,649

)

 

(1,287

)

Net Cash Provided by (Used in) Financing Activities

 

16,900

 

 

 

(6,619

)

 

Effect of Exchange Rate Changes on Cash

 

(300

)

 

 

(751

)

 

Net Increase in Cash

 

2,219

 

 

535

 

Cash at Beginning of Period

 

560

 

 

 

499

 

Cash at End of Period

$

2,779

 

 

$

1,034

 

TRANSCAT, INC.

Adjusted EBITDA Reconciliation Table

(Dollars in thousands)

(Unaudited)

 

Fiscal 2022

 

Q1

Q2

Q3

Q4

YTD

Net Income

$

3,688

 

$

3,015

 

$

1,629

 

$

8,332

 

+ Interest Expense

 

189

 

 

169

 

 

194

 

 

552

 

+ Other Expense / (Income)

 

6

 

 

81

 

 

(58

)

 

29

 

+Tax Provision

 

(194

)

 

313

 

 

596

 

 

 

715

 

Operating Income

$

3,689

 

$

3,578

 

$

2,361

 

 

$

9,628

 

+ Depreciation & Amortization

 

1,990

 

 

2,141

 

 

2,368

 

 

 

6,499

 

+ Transaction Expense

 

 

 

821

 

 

55

 

 

 

876

 

+ Other (Expense) / Income

 

(6

)

 

(81

)

 

58

 

 

(29

)

+ Noncash Stock Compensation

 

437

 

 

620

 

 

624

 

 

 

1,681

 

Adjusted EBITDA

$

6,110

 

$

7,079

 

$

5,466

 

 

$

18,655

 

 

Segment Breakdown

 

Service Operating Income

$

2,974

 

$

2,647

 

$

1,661

 

$

7,282

 

+ Depreciation & Amortization

 

1,488

 

 

1,634

 

 

1,861

 

 

4,983

 

+ Transaction Expense

 

 

 

821

 

 

55

 

 

 

876

 

+ Other (Expense) / Income

 

(2

)

 

(56

)

 

36

 

 

(22

)

+ Noncash Stock Compensation

 

261

 

 

414

 

 

475

 

 

 

1,150

 

Service Adjusted EBITDA

$

4,721

 

$

5,460

 

$

4,088

 

 

$

14,269

 

 

Distribution Operating Income

$

715

 

$

931

 

$

700

 

$

2,346

 

+ Depreciation & Amortization

 

502

 

 

507

 

 

507

 

 

1,516

 

+ Other (Expense) / Income

 

(4

)

 

(25

)

 

22

 

 

(7

)

+ Noncash Stock Compensation

 

176

 

 

206

 

 

149

 

 

 

531

 

Distribution Adjusted EBITDA

$

1,389

 

$

1,619

 

$

1,378

 

 

$

4,386

 

 

Fiscal 2021

Q1

Q2

Q3

Q4

YTD

Net Income

$

798

 

$

2,024

 

$

1,761

 

$

3.208

 

$

7,791

 

+ Interest Expense

 

224

 

 

233

 

 

203

 

 

190

 

 

850

 

+ Other Expense / (Income)

 

19

 

 

84

 

 

16

 

 

122

 

 

241

 

+ Tax Provision

 

(77

)

 

737

 

 

539

 

 

992

 

 

2,191

 

Operating Income

$

964

 

$

3,078

 

$

2,519

 

$

4.512

 

$

11,073

 

+ Depreciation & Amortization

 

1,871

 

 

1,864

 

 

1,861

 

 

1,984

 

 

7,580

 

+ Restructuring Expense

 

360

 

 

 

 

 

 

290

 

 

650

 

+ Other (Expense) / Income

 

(19

)

 

(85

)

 

(15

)

 

(122

)

 

(241

)

+ Noncash Stock Compensation

 

312

 

 

366

 

 

197

 

 

638

 

 

1,513

 

Adjusted EBITDA

$

3,488

 

$

5,223

 

$

4,562

 

$

7,302

 

$

20,575

 

 

Segment Breakdown

 

Service Operating Income

$

1,129

 

$

2,977

 

$

1,956

 

$

4,379

 

$

10,441

 

+ Depreciation & Amortization

 

1,394

 

 

1,359

 

 

1,372

 

 

1,472

 

 

5,597

 

+ Restructuring Expense

 

193

 

 

 

 

 

 

156

 

 

349

 

+ Other (Expense) / Income

 

(15

)

 

(57

)

 

(8

)

 

(82

)

 

(162

)

+ Noncash Stock Compensation

 

162

 

 

196

 

 

126

 

 

351

 

 

835

 

Service Adjusted EBITDA

$

2,863

 

$

4,475

 

$

3,446

 

$

6,276

 

$

17,060

 

 

Distribution Operating Income

$

(165

)

$

101

 

$

563

 

$

133

 

$

632

 

+ Depreciation & Amortization

 

477

 

 

505

 

 

489

 

 

512

 

 

1,983

 

+ Restructuring Expense

 

167

 

 

 

 

 

 

134

 

 

301

 

+ Other (Expense) / Income

 

(4

)

 

(28

)

 

(7

)

 

(40

)

 

(79

)

+ Noncash Stock Compensation

 

150

 

 

170

 

 

71

 

 

287

 

 

678

 

Distribution Adjusted EBITDA

$

625

 

$

748

 

$

1,116

 

$

1,026

 

$

3,515

 

TRANSCAT, INC.

Additional Information – Business Segment Data

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

Change

SERVICE

FY 2022 Q3

 

FY 2021 Q3

 

$’s

 

%

 

 

 

 

 

 

 

 

Service Revenue

$

30,237

 

$

24,776

 

$

5,461

22.0%

Cost of Service Revenue

 

21,254

 

 

17,861

 

 

3,393

19.0%

Gross Profit

$

8,983

 

$

6,915

 

$

2,068

29.9%

Gross Margin

 

29.7%

 

 

27.9%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

3,007

 

$

2,527

 

$

480

19.0%

General and Administrative Expenses

 

4,315

 

 

2,432

 

 

1,883

77.4%

Operating Income

$

1,661

 

$

1,956

 

$

(295)

(15.1%)

% of Revenue

 

5.5%

 

 

7.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

DISTRIBUTION

FY 2022 Q3

 

FY 2021 Q3

 

$’s

 

%

Distribution Sales

$

20,665

 

$

19,286

 

$

1,379

7.2%

Cost of Distribution Sales

 

16,012

 

 

14,956

 

 

1,056

7.1%

Gross Profit

$

4,653

 

$

4,330

 

$

323

7.5%

Gross Margin

 

22.5%

 

 

22.5%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

2,044

 

$

2,148

 

$

(104)

(4.8%)

General and Administrative Expenses

 

1,909

 

 

1,619

 

 

290

17.9%

Operating Income

$

700

 

$

563

 

$

137

24.3%

% of Sales

 

3.4%

 

 

2.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

TOTAL

FY 2022 Q3

 

FY 2021 Q3

 

$’s

 

%

 

 

 

 

 

 

 

 

Total Revenue

$

50,902

 

$

44,062

 

$

6,840

15.5%

Total Cost of Revenue

 

37,266

 

 

32,817

 

 

4,449

13.6%

Gross Profit

$

13,636

 

$

11,245

 

$

2,391

21.3%

Gross Margin

 

26.8%

 

 

25.5%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

5,051

 

$

4,675

 

$

376

8.0%

General and Administrative Expenses

 

6,224

 

 

4,051

 

 

2,173

53.6%

Operating Income

$

2,361

 

$

2,519

 

$

(158)

(6.3%)

% of Revenue

 

4.6%

 

 

5.7%

 

 

 

 

Contacts

Mark A. Doheny, Chief Financial Officer

Phone: (585) 866-1969

Email: mark.doheny@transcat.com

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