Transcat, Inc. (NASDAQ:TRNS) Q3 2024 Earnings Conference Call January 30, 2024 11:00 AM ET Company Participants Thomas Barbato - CFO Lee Rudow - President & CEO Mark Doheny - COO Conference Call Participants Greg Palm - Craig-Hallum Capital Group Scott Buck - H.C. Wainwright Martin Yang - Oppenheimer Operator Greetings, and welcome to Transcat, Inc., Third Quarter Fiscal Year 2024 Financial Results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the forma ...

Fiscal 2024 • Acquisitions that strengthen our fundamental value proposition will continue to be an important component of our go-forward strategy * Outlook provided as of October 30, 2023 10 Conference Call and Webcast Playback • Replay Number: 412-317-6671 passcode: 13743750 Telephone replay available through Tuesday, February 6, 2024 • Webcast / Presentation / Replay available at https://www.transcat.com/investor-relations 11 Supplemental Information 12 Adjusted EBITDA Reconciliation | --- | --- | --- | ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: September 23, 2023 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) Ohio 16-0874418 (State or ot ...

Transcat, Inc. (NASDAQ:TRNS) Q2 2024 Earnings Conference Call October 31, 2023 11:00 AM ET Company Participants Thomas Barbato - Chief Financial Officer Lee Rudow - President and Chief Executive Officer Conference Call Participants Greg Palm - Craig-Hallum Capital Group Ted Jackson - Northland Securities Martin Yang - Oppenheimer Operator Greetings welcome to Transcat Inc's Second Quarter Fiscal 2024 Financial Results. At this time, all participants are in a listen-only mode. A question-and-answer session w ...

Financial Performance - Consolidated revenue for the first quarter of fiscal year 2024 was $60.6 million, an increase of $5.9 million or 10.9% compared to the same period in fiscal year 2023[90]. - Gross profit for the first quarter of fiscal year 2024 was $18.7 million, reflecting a $2.7 million increase or 16.7% year-over-year, with a gross margin of 30.9%[91]. - Operating income increased to $4.6 million, a rise of $1.0 million or 28.7%, with an operating margin of 7.7%[92]. - Net income for the first quarter of fiscal year 2024 was $2.9 million, down from $3.1 million in the prior year, attributed to higher interest expenses and tax provisions[93]. - Adjusted EBITDA for Q1 FY 2024 was $8.481 million, a 16.1% increase from $7.307 million in Q1 FY 2023[116]. - Adjusted diluted earnings per share for Q1 FY 2024 was $0.52, compared to $0.54 in Q1 FY 2023[120]. - Net income for Q1 FY 2024 decreased to $2.949 million, down 4.0% from $3.072 million in Q1 FY 2023[113]. Revenue Breakdown - Service revenue accounted for 65.8% of total revenue, increasing by 17.6% year-over-year, including $2.2 million from acquisitions and 11.2% organic growth[96]. - Distribution sales decreased by 0.2% to $20.7 million, representing 34.2% of total revenue, primarily due to slower demand for traditional products[101]. Operating Expenses - Operating expenses rose to $14.1 million, an increase of $1.6 million or 13.2%, with operating expenses as a percentage of total revenue at 23.2%[92]. - Total operating expenses rose to $14.1 million in Q1 FY 2024, an increase of 13.2% from $12.4 million in Q1 FY 2023[110]. Margins - Service gross profit increased by $2.1 million or 19.7%, with a service gross margin of 32.5%[107]. - Service gross margin for Q1 FY 2024 was 32.5%, down from 34.0% in Q4 FY 2023[108]. - Distribution gross margin increased to 27.7% in Q1 FY 2024, a 270 basis point increase from 25.0% in Q1 FY 2023[109]. Cash Flow and Capital Structure - Cash provided by operating activities was $7.536 million in Q1 FY 2024, significantly up from $2.043 million in Q1 FY 2023[128]. - The company had $37.5 million available for borrowing under the revolving credit facility as of June 24, 2023[126]. - The leverage ratio was 1.50 at June 24, 2023, down from 1.60 at March 25, 2023[125]. - Interest rate for the revolving credit facility ranged from 6.4% to 6.9% in Q1 FY 2024, with a fixed rate of 3.90% for the 2018 Term Loan[139]. Tax and Liabilities - The effective tax rate increased to 21.6% in Q1 FY 2024 from 10.9% in Q1 FY 2023[112]. - Anticipated income tax rate for FY 2024 is between 21% and 23%, with a timing difference expected to positively impact the tax rate by approximately 13% in Q2 FY 2024[136]. - Accrued compensation and other current liabilities decreased by $0.9 million in Q1 FY 2024, compared to a decrease of $2.8 million in Q1 FY 2023[137]. Inventory and Accounts Payable - Inventory balance decreased by $1.8 million in Q1 FY 2024, compared to an increase of $2.2 million in Q1 FY 2023 due to strategic purchasing timing[25]. - Accounts payable decreased by $4.3 million in Q1 FY 2024, following a decrease of $1.2 million in Q1 FY 2023, largely due to timing of payments[25]. Capital Expenditures and Acquisitions - Capital expenditures for Q1 FY 2024 were $2.7 million, up from $2.4 million in Q1 FY 2023, primarily for customer-driven expansion[131]. - Business acquisitions cost $2.9 million in Q1 FY 2024, down from $4.0 million in Q1 FY 2023[131]. Future Projections - Expected organic Service revenue growth for FY 2024 is projected in the high-single digit to low double-digit range[135]. Currency and Foreign Exchange - Approximately 90% of total revenues for Q1 FY 2024 were denominated in U.S. dollars, with a 10% change in Canadian dollar or Euro impacting revenue by about 1%[140]. - A foreign exchange contract with a notional amount of $2.5 million was outstanding as of June 24, 2023, to mitigate currency risk[141].

Transcat, Inc. (NASDAQ:TRNS) Q1 2024 Earnings Call Transcript August 1, 2023 11:00 AM ET Company Participants Thomas Barbato - Chief Financial Officer Lee Rudow - President and Chief Executive Officer Conference Call Participants Greg Palm - Craig-Hallum Capital Group Gerard Sweeney - Roth Capital Ted Jackson - Northland Securities Operator Greetings and welcome to the Transcat, Inc. First Quarter Fiscal Year 2024 Financial Results. At this time, all participants are in a listen-only mode. A brief question- ...

Fiscal 2024 Q1 Financial Results | --- | --- | --- | |-------|----------------------------------------|-------| | | | | | | Lee D. Rudow President and CEO | | | | Mark A. Doheny Chief Operating Officer | | | | Tom L. Barbato Chief Financial Officer | | | | | | Safe Harbor Statement This presentation 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, unc ...

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 25, 2023 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 ...

Financial Data and Key Metrics Changes - Consolidated revenue increased by 12% to $230 million for fiscal 2023, marking a new record for the company [5][11] - Consolidated gross margin expanded by 110 basis points to 29.6% [5][13] - Adjusted EBITDA grew by 16% to $30.4 million [5][16] - Q4 net income rose by 20% to $3.7 million, with diluted earnings per share at $0.48 [14] Business Line Data and Key Metrics Changes - Service segment revenue grew by 19% for the full year, with 10% coming from organic growth [5][12] - Service segment revenue in Q4 increased by 15%, with organic growth of 10% [10][12] - Distribution segment revenue grew by 3% for the full year, driven by strong performance in the rental business [8][12] - Service gross margin in Q4 expanded by 90 basis points to 34% [12] Market Data and Key Metrics Changes - The company experienced strong demand in core calibration and NEXA Enterprise Asset Management businesses [5][6] - The company expanded its service offerings into various parts of Europe, including the Netherlands, Switzerland, and Germany [6] Company Strategy and Development Direction - The company aims for continued margin expansion across service channels, particularly in the latter half of fiscal 2024 [19][20] - The company is focused on M&A activities in the fragmented third-party calibration services market [9][17] - The company plans to maintain a strong balance sheet to support future growth opportunities [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving high single-digit organic growth in fiscal 2024 despite macroeconomic uncertainties [19][20] - The company highlighted the importance of leadership development and operational excellence as key differentiators [9][19] Other Important Information - The company successfully acquired and integrated three companies in fiscal 2023, expanding its addressable markets [7] - The company expects capital expenditures for fiscal 2024 to be in the range of $10 million to $11 million [17][18] Q&A Session Summary Question: Commentary on near-term investments in NEXA and CBLs - Management indicated that investments are driven by growth and the need for infrastructure build to scale operations [21][22] Question: Synergies from NEXA acquisition - Management noted that the acquisition has exceeded expectations, with significant business opportunities arising from cross-selling [24] Question: Geographic expansion into Europe - Management described the expansion as opportunistic, primarily serving existing customers with locations in Europe [25][26] Question: Drivers of growth and differentiation - Management emphasized the depth and breadth of services, particularly in life sciences, as key growth drivers [29][31] Question: Cross-selling opportunities with NEXA - Management confirmed that there are significant opportunities for cross-selling between NEXA and Transcat's customer base [32][33] Question: Margin expectations for NEXA - Management indicated that NEXA's average margin is higher than Transcat's overall service margin [36] Question: Interest rates impact on capital structure - Management acknowledged that rising interest rates are being evaluated in terms of debt strategy [41] Question: Appetite for larger transformational M&A deals - Management expressed readiness for larger acquisitions if opportunities arise, while maintaining a focus on smaller bolt-on acquisitions [42] Question: Working capital increase and expectations - Management explained that increases in working capital are related to business growth and strategic acquisitions [44][45] Question: Revenue expectations from recent acquisition - Management expects to achieve growth targets without significant revenue impact from the recent acquisition in the first quarter [47][48] Question: Growth in distribution business - Management stated that distribution is viewed as a stable segment, with growth expected primarily in the rental business [49][50] Question: Robotics and automation efforts - Management described ongoing efforts in robotics as a long-term opportunity, with initial installations already in place [52] Question: Growth in other sectors beyond life sciences - Management confirmed growth in aerospace and defense, as well as general manufacturing, contributing to overall growth [54][56] Question: Update on Transcat University - Management reported progress in training programs, with increased productivity among trained employees [59][60] Question: M&A activity outside the U.S. - Management indicated that while there is openness to international M&A, the primary focus remains on U.S.-based opportunities [61]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: December 24, 2022 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 jurisdiction ...