Core Viewpoint - Transcat, Inc. reported quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.47 per share, representing a year-over-year decline from $0.41 per share [1][2] Financial Performance - The company posted revenues of $67.83 million for the quarter ended September 2024, which was 4.06% below the Zacks Consensus Estimate and an increase from $62.8 million a year ago [2] - Over the last four quarters, Transcat has surpassed consensus EPS estimates three times and topped revenue estimates two times [2] Stock Performance - Transcat shares have increased approximately 9.5% since the beginning of the year, while the S&P 500 has gained 21.8% [3] - The current Zacks Rank for Transcat is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.44 on revenues of $71.9 million, and for the current fiscal year, it is $2.06 on revenues of $287.03 million [7] - The estimate revisions trend for Transcat is mixed, and changes in earnings expectations may occur following the recent earnings report [6][7] Industry Context - The Instruments - Control industry, to which Transcat belongs, is currently in the bottom 33% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can materially affect stock performance [5][8]

Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying stocks that can fulfill their potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - Transcat, Inc. (TRNS) is currently recommended as a cutting-edge growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth [2] Group 2: Earnings Growth - Historical EPS growth for Transcat is 14.2%, but projected EPS growth for this year is expected to be 26.2%, significantly higher than the industry average of 17.4% [5] Group 3: Asset Utilization - Transcat has an asset utilization ratio (sales-to-total-assets ratio) of 0.93, outperforming the industry average of 0.74, indicating higher efficiency in generating sales from its assets [6] Group 4: Sales Growth - The company's sales are projected to grow by 10.6% this year, compared to the industry average of 9.2%, showcasing strong sales growth potential [7] Group 5: Earnings Estimate Revisions - The current-year earnings estimates for Transcat have been revised upward, with the Zacks Consensus Estimate increasing by 3.5% over the past month, indicating positive momentum [9] Group 6: Investment Positioning - Transcat's combination of a Growth Score of A and a Zacks Rank of 2 positions it well for outperformance, making it an attractive option for growth investors [10]

Core Viewpoint - Transcat, Inc. (TRNS) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly influenced by institutional investors [4]. Business Improvement Indicators - Rising earnings estimates and the Zacks rating upgrade suggest an improvement in Transcat's underlying business, which could lead to increased stock prices as investors respond positively [5][10]. - For the fiscal year ending March 2025, Transcat is expected to earn $2.06 per share, representing a 26.4% increase from the previous year, with a 4.1% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade of Transcat to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Industry Overview - The Zacks Instruments – Control industry focuses on energy-efficient production processes and integrated software systems, with rising demand for advanced technology to replace legacy industrial control systems expected to drive growth [1][2] - The industry comprises manufacturers of precision and specialty motion-control components and systems, providing solutions for flow measurement, control, and communication across various sectors [3] Growth Drivers - Increased adoption of industrial automation and higher investments in new technologies are anticipated to propel growth, particularly in North America, supported by infrastructural investments in energy and power sectors [4] - Solid demand for power generation, especially in Asia, and the need for backup power for data centers are contributing to growth momentum in the industry [5] - The emphasis on digitized technologies, such as the Industrial Internet of Things, is driving demand for process automation and instrumentation products, which enhance product quality and reduce emissions [7] Challenges - Elevated customer inventory levels and geopolitical challenges may negatively impact the process automation and instrumentation market [2] - Material cost inflation and rising transportation costs are affecting industry margins, with companies struggling to pass on increased raw material prices to customers due to competitive pressures [6] Market Performance - The Zacks Instruments – Control industry has underperformed compared to the S&P 500 and the broader Zacks Computer and Technology sector over the past year, with a growth of 6.7% compared to 15% and 21.3% respectively [10] - The industry has a trailing 12-month EV/EBITDA ratio of 11.6X, lower than the S&P 500's 16.77X and the sector's 17.89X, indicating potential undervaluation [10] Notable Companies - **Watts Water Technologies, Inc. (WTS)**: Focuses on water safety and flow control products, benefiting from cost-reduction actions and a strong balance sheet, with a long-term earnings growth expectation of 8% [13] - **Badger Meter, Inc. (BMI)**: Provides flow measurement and control solutions, with a focus on digital solutions and a long-term earnings growth expectation of 17.9% [15] - **Transcat, Inc. (TRNS)**: Offers calibration and inspection services, with a focus on the life sciences market and a long-term earnings growth expectation, having gained 21.8% over the past year [16]

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all. By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss. However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2025 was $66.7 million, reflecting a 10% increase compared to the prior year, driven by strong demand in both segments [14][36] - Consolidated gross margin expanded by 310 basis points to 34%, with significant margin improvements in both Service and Distribution segments [12][41] - Adjusted EBITDA for the quarter was $10.2 million, up 20% from the same quarter last year, with an adjusted EBITDA margin increase of 130 basis points [16][42] - Net income increased by 49% to $4.4 million, with diluted earnings per share rising to $0.48, up $0.10 from the previous year [42] Business Line Data and Key Metrics Changes - Service revenue grew by 10% overall, with 6.4% of this growth being organic and the remainder from acquisitions [11][14] - Distribution revenue reached $22.9 million, an 11% increase, primarily due to strong performance in the higher-margin Rental business [14][15] - Service gross margins improved by 150 basis points to 34%, attributed to increased productivity and automation [38] Market Data and Key Metrics Changes - The company continues to focus on highly-regulated industries such as life sciences and aerospace and defense, which are driving consistent demand [11][23] - The expansion of addressable markets has significantly contributed to revenue and margin growth [12] Company Strategy and Development Direction - The company aims for organic Service growth in the high single-digit to low double-digit range for fiscal 2025, with a focus on gross margin expansion across its business portfolio [19] - A robust acquisition pipeline is in place to enhance core services and addressable markets, aiming to generate sustainable long-term value for shareholders [19][59] - The strategic shift towards higher-margin Rental business is expected to continue, with a gradual decrease in focus on low-margin Distribution business [49][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand and pipeline, indicating that fluctuations in organic growth should not be a cause for concern [22] - The company is focused on improving operational efficiency through automation and training programs to address labor challenges [66] - Management highlighted the importance of maintaining customer relationships while transitioning resources towards higher-margin segments [63] Other Important Information - The company ended the quarter with total net cash of $19.1 million and a leverage ratio of 0.1x, with $80 million available from its credit facility [17] - The acquisition of Becnel Rental Tools for $50 million was completed, expected to enhance service margin expansion over time [17] Q&A Session Summary Question: Insights on Services organic growth being below expectations - Management indicated that the 6.4% organic growth should not be overly scrutinized, as demand remains strong and fluctuations are expected [22] Question: Performance of Distribution segment and Rental business mix - Management acknowledged that while organic growth in Distribution was negative, the focus on Rental business is strategic and has shown impressive growth [24] Question: Updates on Services gross margin improvement drivers - Management detailed that productivity improvements and automation initiatives are key drivers of margin enhancement, with ongoing efforts to improve operational efficiency [52][66] Question: Addressable market updates and growth drivers - Management confirmed that the addressable market is being expanded adjacent to core calibration services, with a focus on recurrent revenue streams [73] Question: Expectations for second quarter margin trends - Management stated that no significant changes in seasonality are expected, and it would be safe to assume typical trends [78]

[Company Overview and Highlights](index=1&type=section&id=company_overview_and_highlights) Transcat reported strong Q1 FY25 results with significant gross margin and EBITDA growth, driven by service productivity, distribution rentals, and strategic acquisitions, reinforcing its position as a leading provider in highly regulated industries [First Quarter Fiscal 2025 Highlights](index=1&type=section&id=First%20Quarter%20Fiscal%202025%20Highlights) Transcat reported strong first quarter fiscal year 2025 results, characterized by significant gross margin expansion and EBITDA growth. This performance was driven by increased Service productivity, growth in Distribution segment rentals, and successful integration of acquired companies - Consolidated Gross Profit grew **21.1%** on double-digit Revenue growth[18](index=18&type=chunk) - Consolidated adjusted EBITDA grew **20.4%** with margins expanding **130 basis points**[2](index=2&type=chunk) - Distribution gross margins expanded **620 basis points** on strength of rentals[2](index=2&type=chunk) - Service gross margins expanded **150 basis points** on organic growth of **6.4%** and improved productivity[18](index=18&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Lee D. Rudow expressed satisfaction with the strong Q1 results, attributing success to increased Service productivity, Distribution segment rental growth, consistent demand in highly regulated markets, successful acquisitions, and expanded offerings. He highlighted the company's differentiated value proposition, execution of automation, and productivity enhancements, noting the strategic acquisition of Becnel Rental Tools for its high-margin rental portfolio and cross-selling opportunities - Consolidated revenue was up **10%** driven by consistent demand in highly regulated end markets, successful integration of acquired companies, and widened breadth of offerings[2](index=2&type=chunk) - Adjusted EBITDA grew **20%** and margins expanded driven by a differentiated value proposition and outstanding execution of automation and productivity enhancements[2](index=2&type=chunk) - The acquisition of Becnel Rental Tools differentiates the **higher margin rental portfolio** and has provided opportunities for cross-selling of Transcat's products and services[19](index=19&type=chunk) - Expects another year of organic Service revenue growth in the **high single-digit to low double-digit range** and gross margin expansion, with automation and productivity improvements as key enablers[8](index=8&type=chunk) [About Transcat](index=5&type=section&id=About%20Transcat) Transcat, Inc. is a leading provider of accredited calibration, reliability, and related services, primarily serving highly regulated industries such as Life Science, aerospace, defense, and energy. The company also operates as a value-added distributor of professional-grade test, measurement, and control instrumentation. Its strategy focuses on leveraging its brand and comprehensive offerings to drive organic growth and expand its market through strategic acquisitions and capability investments - Transcat is a **leading provider** of accredited calibration, reliability, maintenance optimization, quality and compliance, validation, CMMS, and pipette services[41](index=41&type=chunk) - The company focuses on providing **best-in-class services and products** to highly regulated industries, particularly Life Science, aerospace and defense, and energy and utilities[41](index=41&type=chunk) - Transcat operates **29 Calibration Service Centers** and **21 imbedded customer-site locations** across the United States, Puerto Rico, Canada, and Ireland[41](index=41&type=chunk) - The company's strategy is to leverage its **strong brand** and unique value proposition to drive organic sales growth and expand its addressable calibration market through acquisitions and capability investments[12](index=12&type=chunk) [Consolidated Financial Results](index=2&type=section&id=consolidated_financial_results) Transcat achieved robust Q1 FY25 consolidated financial performance, with total revenue increasing 10.1% to $66.7 million, gross profit up 21.1%, and adjusted diluted EPS rising 30.8%, despite higher operating expenses from acquisitions and sales growth [Key Financial Metrics](index=2&type=section&id=Key%20Financial%20Metrics) For Q1 FY25, Transcat's consolidated revenue increased **10.1%** to **$66.7 million**. Gross profit grew **21.1%** to **$22.7 million**, with gross margin expanding **310 basis points**. Net income per diluted share rose **26.3%** to **$0.48**, and Adjusted Diluted EPS increased **30.8%** to **$0.68** Consolidated Financial Performance (FY25 Q1 vs FY24 Q1) | Metric | FY25 Q1 ($ in thousands) | FY24 Q1 ($ in thousands) | Change ($) | Change (%) | | :-------------------------- | :----------------------- | :----------------------- | :--------- | :--------- | | Service Revenue | 43,778 | 39,853 | 3,925 | 9.8% | | Distribution Sales Revenue | 22,929 | 20,745 | 2,184 | 10.5% | | **Total Revenue** | **66,707** | **60,598** | **6,109** | **10.1%** | | Gross Profit | 22,655 | 18,710 | 3,945 | 21.1% | | Gross Margin | 34.0% | 30.9% | | 310 bps | | Operating Income | 5,099 | 4,640 | 459 | 9.9% | | Operating Margin | 7.6% | 7.7% | | (10) bps | | Net Income | 4,408 | 2,949 | 1,459 | 49.5% | | Net Margin | 6.6% | 4.9% | | 170 bps | | Adjusted EBITDA* | 10,212 | 8,481 | 1,731 | 20.4% | | Adjusted EBITDA* Margin | 15.3% | 14.0% | | 130 bps | | Diluted EPS | 0.48 | 0.38 | 0.10 | 26.3% | | Adjusted Diluted EPS* | 0.68 | 0.52 | 0.16 | 30.8% | [Operating Expenses](index=2&type=section&id=Operating%20Expenses) Total operating expenses for Q1 FY25 increased by **$3.5 million**, or **24.8%**, to **$17.6 million**. This increase was primarily driven by incremental expenses from acquired businesses, including stock-based compensation, and higher incentive-based employee costs due to sales growth - Operating expenses were **$17.6 million**, an increase of **$3.5 million**, or **24.8%**, driven by incremental expenses from acquired businesses (including stock-based compensation expense) and higher incentive-based employee costs due to sales growth[3](index=3&type=chunk) Consolidated Operating Expenses (FY25 Q1 vs FY24 Q1) | Expense Category | FY25 Q1 ($ in thousands) | FY24 Q1 ($ in thousands) | Change ($) | Change (%) | | :-------------------------------- | :----------------------- | :----------------------- | :--------- | :--------- | | Selling, Marketing & Warehouse Expenses | 7,801 | 6,469 | 1,332 | 20.6% | | General and Administrative Expenses | 9,755 | 7,601 | 2,154 | 28.3% | [Segment Performance](index=3&type=section&id=segment_performance) Both Service and Distribution segments demonstrated strong Q1 FY25 performance, with Service revenue growing 9.8% and gross margin expanding 150 bps, while Distribution sales increased 10.5% and gross margin significantly expanded by 620 bps due to rental strength [Service Segment](index=3&type=section&id=Service%20Segment) The Service segment delivered strong first quarter results, with revenue increasing **9.8%** to **$43.8 million**, including **$1.3 million** from acquisitions. Organic revenue growth was **6.4%**, driven by robust end-market demand and market share gains. The segment's gross margin expanded **150 basis points** to **34.0%** due to continued productivity improvements - Service segment revenue was **$43.8 million**, an increase of **$3.9 million** or **9.8%**, including **$1.3 million** of incremental revenue from acquisitions[4](index=4&type=chunk) - Organic revenue growth for the Service segment was **6.4%**, driven by strong end-market demand and continued market share gains[4](index=4&type=chunk) - The Service segment gross margin was **34.0%**, an increase of **150 basis points** from prior year primarily due to continued productivity improvements[4](index=4&type=chunk) Service Segment Performance (FY25 Q1 vs FY24 Q1) | Metric | FY25 Q1 ($ in thousands) | FY24 Q1 ($ in thousands) | Change ($) | Change (%) | | :-------------------------- | :----------------------- | :----------------------- | :--------- | :--------- | | Service Revenue | 43,778 | 39,853 | 3,925 | 9.8% | | Gross Profit | 14,883 | 12,971 | 1,912 | 14.7% | | Gross Margin | 34.0% | 32.5% | | 150 bps | | Operating Income | 4,090 | 3,192 | 898 | 28.1% | | Operating Margin | 9.3% | 8.0% | | 130 bps | | Adjusted EBITDA* | 6,964 | 6,232 | 732 | 11.7% | | Adjusted EBITDA* Margin | 15.9% | 15.6% | | 30 bps | [Distribution Segment](index=3&type=section&id=Distribution%20Segment) The Distribution segment demonstrated continued margin improvement in Q1 FY25, with sales increasing **10.5%** to **$22.9 million**, driven by growth in the Rental business and acquisitions. The segment's gross margin significantly expanded by **620 basis points** to **33.9%**, primarily due to a favorable sales mix and strength in the Rentals business - Distribution sales were **$22.9 million**, an increase of **$2.2 million** or **10.5%**, driven by growth in the Rental business including acquisitions[23](index=23&type=chunk) - Distribution segment gross margin was **33.9%**, an increase of **620 basis points** due to a favorable sales mix driven by strength in the Rentals business[23](index=23&type=chunk) Distribution Segment Performance (FY25 Q1 vs FY24 Q1) | Metric | FY25 Q1 ($ in thousands) | FY24 Q1 ($ in thousands) | Change ($) | Change (%) | | :-------------------------- | :----------------------- | :----------------------- | :--------- | :--------- | | Distribution Sales | 22,929 | 20,745 | 2,184 | 10.5% | | Gross Profit | 7,772 | 5,739 | 2,033 | 35.4% | | Gross Margin | 33.9% | 27.7% | | 620 bps | | Operating Income | 1,009 | 1,448 | (439) | (30.3)% | | Operating Margin | 4.4% | 7.0% | | (260) bps | | Adjusted EBITDA* | 3,248 | 2,249 | 999 | 44.4% | | Adjusted EBITDA* Margin | 14.2% | 10.8% | | 340 bps | [Financial Position and Cash Flow](index=4&type=section&id=financial_position_and_cash_flow) As of June 29, 2024, Transcat maintained a strong financial position with $22.7 million in cash, $80.0 million available credit, and reduced total debt, while operating cash flow increased to $8.9 million despite significant investing activities [Balance Sheet Overview](index=4&type=section&id=Balance%20Sheet%20Overview) As of June 29, 2024, Transcat maintained a strong financial position with **$22.7 million** in cash and cash equivalents and **$80.0 million** available under its secured revolving credit facility. Total debt decreased to **$3.6 million** from **$4.2 million**, leading to a lower leverage ratio of **0.08**. Total assets increased to **$323.7 million** Cash and Liquidity (as of June 29, 2024) | Metric | Amount ($ in thousands) | | :-------------------------------- | :---------------------- | | Cash and Cash Equivalents | 22,657 | | Available Revolving Credit Facility | 80,000 | | Total Debt | 3,580 | | Leverage Ratio | 0.08 | - Total Assets increased to **$323.652 million** as of June 29, 2024, from **$287.552 million** as of March 30, 2024[44](index=44&type=chunk) - Total Liabilities decreased to **$61.364 million** as of June 29, 2024, from **$62.383 million** as of March 30, 2024[32](index=32&type=chunk) - Total Shareholders' Equity increased to **$262.288 million** as of June 29, 2024, from **$225.169 million** as of March 30, 2024[32](index=32&type=chunk) [Cash Flow Activities](index=9&type=section&id=Cash%20Flow%20Activities) Net cash provided by operating activities for the three months ended June 29, 2024, was **$8.9 million**, an increase from **$7.5 million** in the prior year. Net cash used in investing activities decreased to **$4.1 million**, despite significant business acquisitions. Net cash used in financing activities increased to **$1.9 million**, primarily due to common stock repurchases Cash Flow Summary (Three Months Ended June 29, 2024 vs June 24, 2023) | Activity | June 29, 2024 ($ in thousands) | June 24, 2023 ($ in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net Cash Provided by Operating Activities | 8,924 | 7,536 | | Net Cash Used in Investing Activities | (4,094) | (5,636) | | Net Cash Used in Financing Activities | (1,935) | (859) | | Net Increase in Cash and Cash Equivalents | 3,011 | 618 | | Cash and Cash Equivalents at End of Period | 22,657 | 2,149 | - Business acquisitions, net of cash acquired, amounted to **$15.953 million** for the three months ended June 29, 2024[33](index=33&type=chunk) - Sales of marketable securities generated **$15.533 million** in Q1 FY25[33](index=33&type=chunk) [Outlook and Strategy](index=4&type=section&id=outlook_and_strategy) Transcat anticipates continued strong performance in fiscal 2025, projecting high single-digit to low double-digit organic Service revenue growth and ongoing gross margin expansion, driven by leveraging its brand, comprehensive services, and strategic acquisitions [Fiscal 2025 Outlook](index=4&type=section&id=Fiscal%202025%20Outlook) Transcat anticipates continued strong performance in fiscal 2025, projecting **high single-digit to low double-digit range** organic Service revenue growth, normalized for the extra week in fiscal 2024. The company also expects ongoing gross margin expansion and an income tax rate ranging between **24% and 26%** - Transcat expects another year of organic Service revenue growth in the **high single-digit to low double-digit range** when normalized for the extra week in fiscal 2024[8](index=8&type=chunk) - Gross margin expansion is expected to continue, with automation of calibration processes and overall productivity improvements being **key enablers**[8](index=8&type=chunk) - The company expects its income tax rate to range between **24% and 26%** in fiscal 2025[25](index=25&type=chunk) [Company Strategy](index=4&type=section&id=Company%20Strategy) Transcat's strategy is centered on leveraging its strong brand, comprehensive service capabilities, enterprise asset management, and leading distribution platform to drive organic sales growth. The company also aims to expand its addressable calibration market through strategic, accretive acquisitions and capability investments, with a sharp focus on integration to achieve synergistic growth - Transcat's strategy is to leverage its **strong brand** and unique value proposition, including comprehensive instrument service capabilities, enterprise asset management, and a leading distribution platform, to drive organic sales growth[12](index=12&type=chunk) - The company will expand its addressable calibration market through acquisitions and capability investments, focusing on integration to drive **synergistic growth opportunities**[12](index=12&type=chunk)[8](index=8&type=chunk) - Transcat believes its unique value proposition drives a **sustainable competitive advantage** in highly regulated markets, particularly Life Science, Aerospace, and Defense, along with a growing Rentals business[8](index=8&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=5&type=section&id=non_gaap_financial_measures_reconciliation) This section provides reconciliations for non-GAAP measures, including Adjusted EBITDA and Adjusted Diluted EPS, which are used to evaluate core operating performance by excluding non-cash and non-recurring items [Adjusted EBITDA Reconciliation](index=5&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA is presented as a non-GAAP measure to provide insight into core operating performance by excluding non-operating and non-cash items such as interest, income taxes, depreciation, amortization, non-cash stock compensation, and acquisition-related transaction expenses. For Q1 FY25, consolidated Adjusted EBITDA was **$10.2 million**, representing a **20.4%** increase year-over-year - Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, non-cash stock compensation expense, acquisition related transaction expenses, non-cash loss on sale of building and restructuring expense[40](index=40&type=chunk) - This non-GAAP measure allows evaluation and comparison of core operations by removing the impact of capital structure, asset base, taxes, stock-based compensation, and other non-recurring items[40](index=40&type=chunk) Consolidated Adjusted EBITDA (FY25 Q1 vs FY24 Q1) | Metric | FY25 Q1 ($ in thousands) | FY24 Q1 ($ in thousands) | Change ($) | Change (%) | | :---------------- | :----------------------- | :----------------------- | :--------- | :--------- | | Adjusted EBITDA | 10,212 | 8,481 | 1,731 | 20.4% | | Adjusted EBITDA Margin | 15.3% | 14.0% | | 130 bps | Segment Adjusted EBITDA (FY25 Q1) | Segment | Adjusted EBITDA ($ in thousands) | | :---------------- | :----------------------------- | | Service | 6,964 | | Distribution | 3,248 | [Adjusted Diluted EPS Reconciliation](index=5&type=section&id=Adjusted%20Diluted%20EPS%20Reconciliation) Adjusted Diluted EPS is a non-GAAP measure that adjusts net income for acquisition-related amortization, transaction expenses, stock-based compensation, and backlog amortization, then divides by diluted shares outstanding. For Q1 FY25, Adjusted Diluted EPS was **$0.68**, representing a **30.8%** increase compared to **$0.52** in Q1 FY24 - Adjusted Diluted Earnings Per Share is a non-GAAP measure calculated as net income plus acquisition related amortization expense, acquisition related transaction expenses, acquisition related stock-based compensation, acquisition amortization of backlog and restructuring expense; divided by the average diluted shares outstanding[27](index=27&type=chunk) - This measure provides a basis for comparing business operations by excluding items not indicative of core operating performance[27](index=27&type=chunk) Diluted EPS vs. Adjusted Diluted EPS (FY25 Q1 vs FY24 Q1) | Metric | FY25 Q1 | FY24 Q1 | Change | Change (%) | | :---------------------- | :------ | :------ | :----- | :--------- | | Diluted Earnings Per Share | $0.48 | $0.38 | $0.10 | 26.3% | | Adjusted Diluted Earnings Per Share | $0.68 | $0.52 | $0.16 | 30.8% | - Adjusted Net Income for FY25 Q1 was **$6.239 million**[36](index=36&type=chunk) [Additional Information](index=4&type=section&id=additional_information) This section provides details on the Q1 FY25 webcast and conference call, a safe harbor statement regarding forward-looking information, and investor contact details [Webcast and Conference Call](index=4&type=section&id=Webcast%20and%20Conference%20Call) Transcat hosted a conference call and webcast on **Tuesday, July 30, 2024, at 11:00 a.m. ET**, to discuss Q1 financial and operating results, strategy, and outlook. A telephonic replay and webcast replay are available for those who missed the live event - A conference call and webcast were hosted on **Tuesday, July 30, 2024, at 11:00 a.m. ET**[26](index=26&type=chunk) - Access to the webcast replay and a transcript is available at **www.transcat.com/investor-relations**[9](index=9&type=chunk) - A telephonic replay was available from **2:00 p.m. ET on the day of the call through Tuesday, August 6, 2024**, by dialing **(412) 317-6671** and entering conference ID **13747789**[9](index=9&type=chunk) [Safe Harbor Statement](index=6&type=section&id=Safe%20Harbor%20Statement) The news release includes forward-looking statements that are subject to various risks, uncertainties, and assumptions. These statements pertain to future operating performance, revenue, profit margins, acquisitions, and market conditions. Readers are advised against undue reliance on these statements, which are valid only as of their original date, and the company disclaims any obligation to update them unless legally required - Forward-looking statements are not historical facts and are subject to **risks, uncertainties, and assumptions**[13](index=13&type=chunk) - These statements address future operating performance, revenue, profit margins, acquisitions, and market conditions[13](index=13&type=chunk) - Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made[13](index=13&type=chunk) - The company disclaims any obligation to update, correct, or publicly announce revisions to forward-looking statements, except as required by law[13](index=13&type=chunk) [Contact Information](index=6&type=section&id=Contact%20Information) Contact details for investor relations are provided for Tom Barbato - Contact Person: **Tom Barbato**[30](index=30&type=chunk) - Phone: **(585) 505-6530**[30](index=30&type=chunk) - Email: **Thomas.Barbato@transcat.com**[30](index=30&type=chunk)

Core Insights - Transcat, Inc. reported revenue of $66.71 million for the quarter ended June 2024, reflecting a year-over-year increase of 10.1% and an EPS of $0.48, up from $0.38 in the same quarter last year [1] Financial Performance Metrics - The reported revenue of $66.71 million was a surprise of -3.40% compared to the Zacks Consensus Estimate of $69.06 million [3] - The EPS surprise was +65.52%, with the consensus EPS estimate being $0.29 [3] - Distribution Sales revenue was $22.93 million, compared to the estimated $24.76 million, marking a year-over-year increase of +10.3% [5] - Service Revenue was reported at $43.78 million, slightly below the average estimate of $43.92 million, with a year-over-year change of +29.2% [5] - Gross Profit from Distribution was $7.77 million, close to the average estimate of $7.78 million [5] - Gross Profit from Service was $14.88 million, compared to the estimated $15.05 million [5] Stock Performance - Transcat's shares have returned +17% over the past month, while the Zacks S&P 500 composite experienced a -0.2% change [6] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [6]

分组1 - Transcat, Inc. reported quarterly earnings of $0.48 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and up from $0.38 per share a year ago [1][5][12] - The company posted revenues of $66.71 million for the quarter, which was 3.40% below the Zacks Consensus Estimate, but an increase from $60.6 million year-over-year [9] - Transcat's stock has increased approximately 28.1% since the beginning of the year, outperforming the S&P 500's gain of 14.5% [6] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $71.86 million, and for the current fiscal year, it is $1.99 on revenues of $292.29 million [10] - The Instruments - Control industry, to which Transcat belongs, is currently ranked in the top 8% of over 250 Zacks industries, indicating strong performance potential [4] - Transcat has surpassed consensus EPS estimates four times over the last four quarters, demonstrating consistent earnings strength [12][13]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: March 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______to ______ Commission File Number: 000-03905 TRANSCAT, INC. (Exact name of registrant as specified in its charter) (State or other jurisdictio ...