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]

PART I. FINANCIAL INFORMATION This section presents Transcat, Inc.'s unaudited consolidated financial statements, including income, comprehensive income, balance sheets, cash flows, and shareholders' equity, along with detailed notes on business operations and key accounting policies [Item 1. Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents Transcat, Inc.'s unaudited consolidated financial statements, including statements of income, comprehensive income, balance sheets, cash flows, and changes in shareholders' equity for the third quarter and nine months ended December 24, 2022, and December 25, 2021, along with detailed notes on business operations, accounting policies, long-term debt, stock-based compensation, segment information, and recent business acquisitions [Consolidated Statements of Income](index=3&type=section&id=Consolidated%20Statements%20of%20Income) This section provides the consolidated statements of income, detailing revenue, net income, and earnings per share for the specified periods | Metric | 3Q FY23 (Dec 24, 2022) (in thousands) | 3Q FY22 (Dec 25, 2021) (in thousands) | 9M FY23 (Dec 24, 2022) (in thousands) | 9M FY22 (Dec 25, 2021) (in thousands) | | :----------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Total Revenue | $57,402k | $50,902k | $168,502k | $149,079k | | Net Income | $1,601k | $1,629k | $7,030k | $8,332k | | Basic EPS | $0.21 | $0.22 | $0.93 | $1.11 | | Diluted EPS | $0.21 | $0.21 | $0.92 | $1.10 | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the consolidated statements of comprehensive income, including net income and currency translation adjustments | Metric | 3Q FY23 (Dec 24, 2022) (in thousands) | 3Q FY22 (Dec 25, 2021) (in thousands) | 9M FY23 (Dec 24, 2022) (in thousands) | 9M FY22 (Dec 25, 2021) (in thousands) | | :----------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Net Income | $1,601k | $1,629k | $7,030k | $8,332k | | Currency Translation Adjustment | $393k | $(233)k | $(878)k | $(314)k | | Comprehensive Income | $2,002k | $1,414k | $6,140k | $8,066k | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) This section outlines the consolidated balance sheets, detailing assets, liabilities, and shareholders' equity at specific fiscal year-ends | Metric | Dec 24, 2022 (in thousands) | Mar 26, 2022 (in thousands) | | :-------------------------- | :----------- | :----------- | | Total Current Assets | $60,697k | $59,704k | | Total Assets | $188,469k | $177,762k | | Total Current Liabilities | $25,084k | $27,710k | | Total Liabilities | $93,185k | $91,586k | | Total Shareholders' Equity | $95,284k | $86,176k | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section presents the consolidated statements of cash flows, categorizing cash activities into operating, investing, and financing | Metric | 9M FY23 (Dec 24, 2022) (in thousands) | 9M FY22 (Dec 25, 2021) (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | | Net Cash Provided by Operating Activities | $13,975k | $12,378k | | Net Cash Used in Investing Activities | $(15,445)k | $(26,759)k | | Net Cash Provided by Financing Activities | $782k | $16,900k | | Net Increase in Cash | $197k | $2,219k | | Cash at End of Period | $1,593k | $2,779k | [Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This section details changes in shareholders' equity, including retained earnings and common stock shares issued | Metric | Dec 24, 2022 (in thousands) | Mar 26, 2022 (in thousands) | Dec 25, 2021 (in thousands) | | :-------------------------- | :----------- | :----------- | :----------- | | Total Shareholders' Equity | $95,284k | $86,176k | $82,898k | | Retained Earnings | $65,504k | $58,744k | $56,403k | | Common Stock Shares Issued | 7,560k | 7,529k | 7,521k | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the company's business, accounting policies, debt, compensation, segment performance, and business acquisitions [NOTE 1 – GENERAL](index=8&type=section&id=NOTE%201%20%E2%80%93%20GENERAL) This note provides an overview of Transcat's business, its basis of financial statement presentation, revenue recognition policies, fair value measurements of financial instruments, stock-based compensation accounting, foreign currency translation, earnings per share calculations, and policies for goodwill and intangible assets, also mentioning the anticipated non-material impact of a recently issued accounting pronouncement - Transcat, Inc. is a leading provider of accredited calibration services, enterprise asset management services, and a value-added distributor of professional-grade test, measurement, and control instrumentation, primarily serving highly regulated industries like life sciences[21](index=21&type=chunk) - Non-cash stock-based compensation expense increased to **$2.8 million** for the first nine months of fiscal year 2023, up from **$1.7 million** in the prior year period[27](index=27&type=chunk) - The Company uses short-term foreign exchange forward contracts to reduce the risk of adverse effects from changes in Canadian dollar exchange rates on future earnings, with a gain of **$0.3 million** recognized in 9M FY23[29](index=29&type=chunk) Average Shares Outstanding | Metric | 3Q FY23 (Dec 24, 2022) (in thousands) | 3Q FY22 (Dec 25, 2021) (in thousands) | 9M FY23 (Dec 24, 2022) (in thousands) | 9M FY22 (Dec 25, 2021) (in thousands) | | :-------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Average Shares Outstanding – Basic | 7,559k | 7,519k | 7,547k | 7,487k | | Average Shares Outstanding – Diluted | 7,666k | 7,653k | 7,644k | 7,599k | Goodwill and Intangible Assets | Metric | Goodwill (Dec 24, 2022) (in thousands) | Intangible Assets (Dec 24, 2022) (in thousands) | Goodwill (Mar 26, 2022) (in thousands) | Intangible Assets (Mar 26, 2022) (in thousands) | | :-------------------------- | :---------------------- | :------------------------- | :---------------------- | :------------------------- | | Net Book Value | $68,826k | $14,843k | $65,074k | $14,692k | | Additions | $4,496k | $3,576k | - | - | | Amortization | - | $(3,411)k | - | - | - The Company anticipates that the adoption of ASU 2016-13, which changes how entities measure credit losses, will not have a material impact on its consolidated financial statements[33](index=33&type=chunk) [NOTE 2 – LONG-TERM DEBT](index=10&type=section&id=NOTE%202%20%E2%80%93%20LONG-TERM%20DEBT) This note details the 2021 Credit Agreement, which significantly increased the revolving credit commitment to $80.0 million and extended its term, also modifying permitted acquisition limits, restricted payment allowances, and adjusting interest rates and covenants, with the Company in compliance with all loan covenants as of December 24, 2022 - The 2021 Credit Agreement increased the revolving credit commitment from **$40.0 million** to **$80.0 million** and extended its term to June 2026[35](index=35&type=chunk)[139](index=139&type=chunk) - Permitted acquisitions limits were increased to **$65.0 million** for fiscal year 2022 and **$50.0 million** for subsequent fiscal years, with an additional **$40.0 million** for UK/EU acquisitions[35](index=35&type=chunk)[139](index=139&type=chunk) - Restricted payments for share repurchases and dividends were increased to **$25.0 million** in aggregate and **$10.0 million** in any single fiscal year[36](index=36&type=chunk)[140](index=140&type=chunk) - The LIBOR floor was reduced from **1.0%** to **0.25%**, and the fixed interest rate on the **$15.0 million term loan** was reduced from **4.15%** to **3.90%**[36](index=36&type=chunk)[140](index=140&type=chunk) - As of December 24, 2022, **$42.2 million** was outstanding on the revolving credit facility and **$7.0 million** on the 2018 Term Loan[39](index=39&type=chunk)[40](index=40&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk) - The Company was in compliance with all loan covenants, including a leverage ratio of **1.66** at December 24, 2022, down from **1.74** at March 26, 2022[42](index=42&type=chunk)[145](index=145&type=chunk) [NOTE 3 – STOCK-BASED COMPENSATION](index=12&type=section&id=NOTE%203%20%E2%80%93%20STOCK-BASED%20COMPENSATION) This note outlines the Company's stock-based compensation plans, including the 2021 Stock Incentive Plan, restricted stock units (RSUs), and stock options, detailing the valuation methods, vesting schedules, and associated expenses for these awards - The 2021 Stock Incentive Plan replaced the 2003 Plan, with **0.7 million shares** available for future grant as of December 24, 2022[45](index=45&type=chunk) - Total expense for restricted stock units was **$1.7 million** for the first nine months of fiscal year 2023, up from **$1.2 million** in the prior year period[50](index=50&type=chunk) - Unearned compensation related to restricted stock units totaled **$2.7 million** as of December 24, 2022[50](index=50&type=chunk) - The expense related to all stock option awards was **$1.1 million** for the first nine months of fiscal year 2023, compared to **$0.4 million** in the prior year period[55](index=55&type=chunk) - Total unrecognized compensation cost related to non-vested stock options as of December 24, 2022, was **$2.2 million**, expected to be recognized over three years[58](index=58&type=chunk) [NOTE 4 – SEGMENT INFORMATION](index=15&type=section&id=NOTE%204%20%E2%80%93%20SEGMENT%20INFORMATION) This note disaggregates the Company's financial performance into its two reportable segments: Service and Distribution, and provides geographic revenue data, highlighting the revenue, gross profit, and operating income contributions from each segment Segment Performance | Metric | 3Q FY23 Service (in thousands) | 3Q FY22 Service (in thousands) | 3Q FY23 Distribution (in thousands) | 3Q FY22 Distribution (in thousands) | 9M FY23 Service (in thousands) | 9M FY22 Service (in thousands) | 9M FY23 Distribution (in thousands) | 9M FY22 Distribution (in thousands) | | :---------------- | :-------------- | :-------------- | :------------------- | :------------------- | :-------------- | :-------------- | :------------------- | :------------------- | | Revenue | $35,977k | $30,237k | $21,425k | $20,665k | $105,120k | $87,338k | $63,382k | $61,741k | | Gross Profit | $10,793k | $8,983k | $5,607k | $4,653k | $33,115k | $27,447k | $16,090k | $14,320k | | Operating Income | $1,836k | $1,661k | $1,327k | $700k | $6,875k | $7,282k | $3,518k | $2,346k | Geographic Revenue | Metric | 3Q FY23 (Dec 24, 2022) (in thousands) | 3Q FY22 (Dec 25, 2021) (in thousands) | 9M FY23 (Dec 24, 2022) (in thousands) | 9M FY22 (Dec 25, 2021) (in thousands) | | :-------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | US Revenue | $51,209k | $46,005k | $151,242k | $136,359k | | Canada Revenue | $4,221k | $3,749k | $12,075k | $10,849k | | Other International Revenue | $1,972k | $1,148k | $5,185k | $1,871k | [NOTE 5 – BUSINESS ACQUISITIONS](index=16&type=section&id=NOTE%205%20%E2%80%93%20BUSINESS%20ACQUISITIONS) This note details several business acquisitions made by Transcat, Inc., including Complete Calibrations, e2b, Alliance, Tangent, NEXA, and Upstate Metrology, outlining the purchase price, strategic rationale, goodwill allocation, and contributions to revenue and operating income for each acquisition, along with pro forma financial information - Transcat acquired Complete Calibrations (Ireland) for **$1.2 million cash** on September 28, 2022, contributing **$0.1 million revenue** and **< $0.1 million operating income** since acquisition[62](index=62&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) - e2b Calibration (Ohio) was acquired for **$3.1 million cash** on September 27, 2022, contributing **$0.9 million revenue** and **$0.2 million operating income** since acquisition[66](index=66&type=chunk)[68](index=68&type=chunk)[70](index=70&type=chunk) - Alliance Calibration (Ohio) was acquired for **$4.7 million** (**$4.0 million cash**, **$0.1 million stock**) on May 31, 2022, contributing **$1.3 million revenue** and **$0.1 million operating income** since acquisition[71](index=71&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) - Tangent Labs, LLC was acquired for **$8.9 million cash** on December 31, 2021, contributing **$1.7 million revenue** and **< $0.1 million operating loss** for the first nine months of fiscal year 2023[75](index=75&type=chunk)[77](index=77&type=chunk)[79](index=79&type=chunk) - NEXA Enterprise Asset Management (Ireland/US) was acquired for **$26.2 million** (**$23.9 million cash**, **$2.4 million stock**) on August 31, 2021, contributing **$9.8 million revenue** and **$0.2 million operating income** for the first nine months of fiscal year 2023[80](index=80&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) Pro Forma Financial Information | Metric | 3Q FY23 Pro Forma (in thousands) | 3Q FY22 Pro Forma (in thousands) | 9M FY23 Pro Forma (in thousands) | 9M FY22 Pro Forma (in thousands) | | :----------------------- | :---------------- | :---------------- | :---------------- | :---------------- | | Total Revenue | $57,402k | $52,760k | $170,648k | $158,848k | | Net Income | $1,601k | $1,648k | $7,245k | $9,749k | | Basic Earnings Per Share | $0.21 | $0.22 | $0.96 | $1.30 | | Diluted Earnings Per Share | $0.21 | $0.22 | $0.95 | $1.28 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial performance, liquidity, and capital resources for the third quarter and nine months ended December 24, 2022, highlighting revenue growth driven by acquisitions and strong demand, gross margin improvements, and the impact of increased operating and interest expenses on net income, also discussing cash flow dynamics and the Company's future outlook [Forward-Looking Statements](index=21&type=section&id=Forward-Looking%20Statements) This section highlights that the report contains forward-looking statements subject to various risks and uncertainties - The report contains forward-looking statements regarding future events, subject to risks and uncertainties such as economic conditions, competition, acquisitions, and foreign currency fluctuations[91](index=91&type=chunk) [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=21&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) This section confirms no material changes to critical accounting policies and estimates since the last annual report - There have been no material changes to the Company's critical accounting policies and estimates since the Annual Report on Form 10-K for the fiscal year ended March 26, 2022[92](index=92&type=chunk) [RESULTS OF OPERATIONS](index=21&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the company's financial performance, including revenue, gross profit, operating expenses, and net income for the periods presented [Executive Summary](index=21&type=section&id=Executive%20Summary) In the third quarter of fiscal year 2023, Transcat achieved consolidated revenue of $57.4 million, a 12.8% increase, driven by acquisitions and strong demand, with gross profit rising 20.3% to $16.4 million and gross margin expanding to 28.6%, operating income increased 34.0% to $3.2 million, but net income remained flat at $1.6 million due to higher interest expense - Consolidated revenue for 3Q FY23 increased by **$6.5 million** (**12.8%**) to **$57.4 million**, primarily due to recent acquisitions, strong Service segment demand, and improved Distribution segment rentals[93](index=93&type=chunk) - Gross profit for 3Q FY23 increased by **$2.8 million** (**20.3%**) to **$16.4 million**, with consolidated gross margin rising **180 basis points** to **28.6%**[94](index=94&type=chunk) - Operating income for 3Q FY23 increased by **$0.8 million** (**34.0%**) to **$3.2 million**, with operating margin improving from **4.6%** to **5.5%**[95](index=95&type=chunk) - Net income for 3Q FY23 remained flat at **$1.6 million**, as higher operating income was offset by increased interest expense[96](index=96&type=chunk) [THIRD QUARTER ENDED DECEMBER 24, 2022 COMPARED TO THIRD QUARTER ENDED DECEMBER 25, 2021](index=22&type=section&id=THIRD%20QUARTER%20ENDED%20DECEMBER%2024%2C%202022%20COMPARED%20TO%20THIRD%20QUARTER%20ENDED%20DECEMBER%2025%2C%202021) In the third quarter of fiscal year 2023, total revenue grew 12.8% to $57.4 million, driven by strong Service segment performance (19.0% growth) and increased Distribution sales (3.7%), gross profit increased 20.3% to $16.4 million, with both segments showing margin expansion, operating expenses rose 17.4% due to acquisitions and higher employee costs, and despite higher operating income, net income remained flat at $1.6 million due to increased interest expense [Revenue](index=22&type=section&id=Revenue_3Q) This section details the revenue performance for the third quarter, highlighting growth drivers for Service and Distribution segments | Metric | 3Q FY23 (Dec 24, 2022) (in thousands) | 3Q FY22 (Dec 25, 2021) (in thousands) | Change ($ thousands) | Change (%) | | :---------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Service Revenue | $35,977k | $30,237k | $5,740k | 19.0% | | Distribution Sales | $21,425k | $20,665k | $760k | 3.7% | | Total Revenue | $57,402k | $50,902k | $6,500k | 12.8% | - Service revenue growth for 3Q FY23 was **19.0%** year-over-year, including **$2.1 million** from acquisitions and **12.0% organic growth**[99](index=99&type=chunk) - Trailing twelve-month Service revenue growth was **20.2%** for 3Q FY23, indicating sustained segment progress[102](index=102&type=chunk) - Distribution sales increased **3.7%** in 3Q FY23, primarily driven by strong demand for rental orders[103](index=103&type=chunk) - Total pending product shipments at the end of 3Q FY23 were **$9.5 million**, an increase of **$0.6 million** year-over-year, attributed to supply chain disruption and increased orders[106](index=106&type=chunk) [Gross Profit](index=24&type=section&id=Gross%20Profit_3Q) This section analyzes gross profit and margin trends for the Service and Distribution segments in the third quarter | Metric | 3Q FY23 (Dec 24, 2022) (in thousands) | 3Q FY22 (Dec 25, 2021) (in thousands) | Change ($ thousands) | Change (%) | | :---------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Service Gross Profit | $10,793k | $8,983k | $1,810k | 20.1% | | Distribution Gross Profit | $5,607k | $4,653k | $954k | 20.5% | | Total Gross Profit | $16,400k | $13,636k | $2,764k | 20.3% | - Total gross margin increased **180 basis points** to **28.6%** in 3Q FY23[108](index=108&type=chunk) - Service gross margin increased **30 basis points** to **30.0%** in 3Q FY23, driven by improved productivity[109](index=109&type=chunk) - Distribution segment gross margin increased **370 basis points** to **26.2%** in 3Q FY23, primarily due to a favorable mix of higher margin products sold and rented[111](index=111&type=chunk) [Operating Expenses](index=25&type=section&id=Operating%20Expenses_3Q) This section reviews operating expenses, including selling, marketing, warehouse, and general and administrative costs for the third quarter | Metric | 3Q FY23 (Dec 24, 2022) (in thousands) | 3Q FY22 (Dec 25, 2021) (in thousands) | Change ($ thousands) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Selling, Marketing and Warehouse | $6,595k | $5,051k | $1,544k | 30.6% | | General and Administrative | $6,642k | $6,224k | $418k | 6.7% | | Total Operating Expenses | $13,237k | $11,275k | $1,962k | 17.4% | - The increase in operating expenses was due to recent acquisitions, higher incentive-based employee costs, and continued investments in technology[112](index=112&type=chunk) - As a percentage of total revenue, operating expenses increased **90 basis points** to **23.1%** in 3Q FY23[113](index=113&type=chunk) [Income Taxes](index=25&type=section&id=Income%20Taxes_3Q) This section presents the provision for income taxes and the effective tax rate for the third quarter | Metric | 3Q FY23 (Dec 24, 2022) (in thousands) | 3Q FY22 (Dec 25, 2021) (in thousands) | Change ($ thousands) | Change (%) | | :-------------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Provision for Income Taxes | $523k | $596k | $(73)k | (12.2)% | | Effective Tax Rate | 24.6% | 26.8% | - | - | - The decrease in the tax provision and effective tax rate was due to the mix of net income by country[114](index=114&type=chunk) [Net Income](index=26&type=section&id=Net%20Income_3Q) This section details the net income performance for the third quarter, noting factors impacting its change | Metric | 3Q FY23 (Dec 24, 2022) (in thousands) | 3Q FY22 (Dec 25, 2021) (in thousands) | Change ($ thousands) | Change (%) | | :--------- | :--------------------- | :--------------------- | :--------- | :--------- | | Net Income | $1,601k | $1,629k | $(28)k | (1.7)% | - Net income remained flat year-over-year, as higher operating income was offset by increased interest expense[115](index=115&type=chunk) [Adjusted EBITDA](index=26&type=section&id=Adjusted%20EBITDA_3Q) This section provides Adjusted EBITDA and its percentage of revenue for the third quarter, explaining key drivers | Metric | 3Q FY23 (Dec 24, 2022) (in thousands) | 3Q FY22 (Dec 25, 2021) (in thousands) | Change ($ thousands) | Change (%) | | :--------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Adjusted EBITDA | $6,585k | $5,466k | $1,119k | 20.5% | | % of Revenue | 11.5% | 10.7% | 0.8% | - | - The increase in Adjusted EBITDA was primarily driven by higher depreciation and amortization expense and interest expense[118](index=118&type=chunk) [Adjusted Diluted Earnings Per Share](index=27&type=section&id=Adjusted%20Diluted%20Earnings%20Per%20Share_3Q) This section presents both GAAP and Adjusted Diluted Earnings Per Share for the third quarter | Metric | 3Q FY23 (Dec 24, 2022) | 3Q FY22 (Dec 25, 2021) | | :-------------------------- | :--------------------- | :--------------------- | | Diluted EPS – GAAP | $0.21 | $0.21 | | Adjusted Diluted EPS | $0.35 | $0.36 | [NINE MONTHS ENDED DECEMBER 24, 2022 COMPARED TO NINE MONTHS ENDED DECEMBER 25, 2021](index=27&type=section&id=NINE%20MONTHS%20ENDED%20DECEMBER%2024%2C%202022%20COMPARED%20TO%20NINE%20MONTHS%20ENDED%20DECEMBER%2025%2C%202021) For the first nine months of fiscal year 2023, total revenue increased 13.0% to $168.5 million, with Service revenue growing 20.4% and Distribution sales up 2.7%, gross profit rose 17.8% to $49.2 million, and total gross margin improved to 29.2%, operating expenses increased 20.8% due to acquisitions and higher costs, and net income decreased 15.6% to $7.0 million, primarily due to higher operating expenses, interest expense, and income taxes, despite higher operating income [Revenue](index=27&type=section&id=Revenue_9M) This section details the revenue performance for the nine-month period, highlighting growth drivers for Service and Distribution segments | Metric | 9M FY23 (Dec 24, 2022) (in thousands) | 9M FY22 (Dec 25, 2021) (in thousands) | Change ($ thousands) | Change (%) | | :---------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Service Revenue | $105,120k | $87,338k | $17,782k | 20.4% | | Distribution Sales | $63,382k | $61,741k | $1,641k | 2.7% | | Total Revenue | $168,502k | $149,079k | $19,423k | 13.0% | - Service revenue growth included **$9.0 million** of incremental revenue from acquisitions[123](index=123&type=chunk) - Distribution sales increase was due to increased orders and strong demand for rental orders[124](index=124&type=chunk) [Gross Profit](index=28&type=section&id=Gross%20Profit_9M) This section analyzes gross profit and margin trends for the Service and Distribution segments over the nine-month period | Metric | 9M FY23 (Dec 24, 2022) (in thousands) | 9M FY22 (Dec 25, 2021) (in thousands) | Change ($ thousands) | Change (%) | | :---------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Service Gross Profit | $33,115k | $27,447k | $5,668k | 20.7% | | Distribution Gross Profit | $16,090k | $14,320k | $1,770k | 12.4% | | Total Gross Profit | $49,205k | $41,767k | $7,438k | 17.8% | - Total gross margin increased **120 basis points** to **29.2%**, driven by operating leverage in the Service segment and a favorable product mix in the Distribution segment[125](index=125&type=chunk) [Operating Expenses](index=28&type=section&id=Operating%20Expenses_9M) This section reviews operating expenses, including selling, marketing, warehouse, and general and administrative costs for the nine-month period | Metric | 9M FY23 (Dec 24, 2022) (in thousands) | 9M FY22 (Dec 25, 2021) (in thousands) | Change ($ thousands) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Selling, Marketing and Warehouse | $18,315k | $15,022k | $3,293k | 21.9% | | General and Administrative | $20,497k | $17,117k | $3,380k | 19.7% | | Total Operating Expenses | $38,812k | $32,139k | $6,673k | 20.8% | - The increase in operating expenses was due to recent acquisitions, higher incentive-based employee costs, new employees, and continued investments in technology[126](index=126&type=chunk) - As a percentage of total revenue, operating expenses increased **140 basis points** to **23.0%** for the first nine months of fiscal year 2023[126](index=126&type=chunk) [Provision for Income Taxes](index=28&type=section&id=Provision%20for%20Income%20Taxes_9M) This section presents the provision for income taxes and the effective tax rate for the nine-month period | Metric | 9M FY23 (Dec 24, 2022) (in thousands) | 9M FY22 (Dec 25, 2021) (in thousands) | Change ($ thousands) | Change (%) | | :-------------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Provision for Income Taxes | $1,631k | $715k | $916k | 128.1% | | Effective Tax Rate | 18.8% | 7.9% | - | - | - The increase in the effective tax rate was due to decreased discrete tax benefits from share-based compensation activity[127](index=127&type=chunk) [Net Income](index=29&type=section&id=Net%20Income_9M) This section details the net income performance for the nine-month period, noting factors impacting its change | Metric | 9M FY23 (Dec 24, 2022) (in thousands) | 9M FY22 (Dec 25, 2021) (in thousands) | Change ($ thousands) | Change (%) | | :--------- | :--------------------- | :--------------------- | :--------- | :--------- | | Net Income | $7,030k | $8,332k | $(1,302)k | (15.6)% | - The year-over-year decrease in net income was due to higher operating expenses, increased interest expense, and a higher provision for income taxes, despite higher operating income[129](index=129&type=chunk) [Adjusted EBITDA](index=29&type=section&id=Adjusted%20EBITDA_9M) This section provides Adjusted EBITDA and its percentage of revenue for the nine-month period, explaining key drivers | Metric | 9M FY23 (Dec 24, 2022) (in thousands) | 9M FY22 (Dec 25, 2021) (in thousands) | Change ($ thousands) | Change (%) | | :--------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Adjusted EBITDA | $21,423k | $18,655k | $2,768k | 14.8% | | % of Revenue | 12.7% | 12.5% | 0.2% | - | - The increase in Adjusted EBITDA was primarily driven by higher interest expense, tax provision, depreciation and amortization expense, and non-cash stock compensation expense[132](index=132&type=chunk) [Adjusted Diluted Earnings Per Share](index=30&type=section&id=Adjusted%20Diluted%20Earnings%20Per%20Share_9M) This section presents both GAAP and Adjusted Diluted Earnings Per Share for the nine-month period | Metric | 9M FY23 (Dec 24, 2022) | 9M FY22 (Dec 25, 2021) | | :-------------------------- | :--------------------- | :--------------------- | | Diluted EPS – GAAP | $0.92 | $1.10 | | Adjusted Diluted EPS | $1.33 | $1.48 | [LIQUIDITY AND CAPITAL RESOURCES](index=30&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The Company expects to meet its liquidity and capital resource requirements through anticipated cash flows from operations and its revolving credit facility, with the 2021 Credit Agreement significantly increasing the revolving credit commitment to $80.0 million and modifying various terms, including permitted acquisitions and restricted payments, and as of December 24, 2022, the Company had $42.2 million outstanding on the revolving credit facility and $7.0 million on the 2018 Term Loan, and was in compliance with all loan covenants - The Company expects to meet foreseeable liquidity and capital resource requirements through anticipated cash flows from operations and borrowings from its **$80.0 million revolving credit facility**[137](index=137&type=chunk)[139](index=139&type=chunk) - As of December 24, 2022, **$42.2 million** was outstanding on the revolving credit facility and **$7.0 million** on the 2018 Term Loan[143](index=143&type=chunk)[144](index=144&type=chunk) - The Company was in compliance with all loan covenants and requirements during the third quarter of fiscal year 2023, with a leverage ratio of **1.66** at December 24, 2022[145](index=145&type=chunk) [Cash Flows](index=32&type=section&id=Cash%20Flows) For the first nine months of fiscal year 2023, net cash provided by operating activities increased to $14.0 million, primarily due to changes in net working capital, net cash used in investing activities decreased to $15.4 million, mainly due to lower business acquisition spending, and net cash provided by financing activities significantly decreased to $0.8 million, driven by reduced revolving credit facility borrowings and common stock issuance compared to the prior year | Metric | 9M FY23 (Dec 24, 2022) (in thousands) | 9M FY22 (Dec 25, 2021) (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | | Net Cash Provided by Operating Activities | $13,975k | $12,378k | | Net Cash Used in Investing Activities | $(15,445)k | $(26,759)k | | Net Cash Provided by Financing Activities | $782k | $16,900k | - The year-over-year increase in cash provided by operations was primarily the result of changes in net working capital, including a **$2.0 million decrease** in accounts receivable and a **$4.2 million increase** in inventory[147](index=147&type=chunk)[148](index=148&type=chunk) - Cash used for business acquisitions decreased to **$8.3 million** in 9M FY23 from **$20.9 million** in 9M FY22[150](index=150&type=chunk) - Net cash provided by financing activities decreased significantly due to lower proceeds from the revolving credit facility (**$2.3 million** in 9M FY23 vs. **$22.8 million** in 9M FY22) and reduced common stock issuance[151](index=151&type=chunk)[152](index=152&type=chunk) [OUTLOOK](index=33&type=section&id=OUTLOOK) Transcat anticipates continued double-digit organic Service growth, driven by its unique value proposition in highly regulated markets and differentiation strategies, with acquisitions remaining a key growth component, projecting high-single digit organic Service revenue growth for Q4 FY23 and FY24, along with ongoing gross margin improvement, and an estimated full fiscal year 2023 income tax rate between 21% and 23% - The Company expects continued **double-digit organic Service growth**, driven by its unique value proposition in highly regulated markets, particularly Life Science and Aerospace and Defense[153](index=153&type=chunk)[154](index=154&type=chunk) - Acquisitions will continue to be an important component of Service growth, with an active acquisition pipeline[155](index=155&type=chunk) - Organic Service revenue growth is expected to remain in the **high-single digit range** for Q4 FY23 and fiscal year 2024, accompanied by continued gross margin improvement[155](index=155&type=chunk) - The estimated income tax rate for full fiscal year 2023 is expected to range between **21%** and **23%**[156](index=156&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses Transcat's exposure to market risks, specifically interest rate and foreign currency fluctuations, quantifying the potential impact of interest rate changes on debt and outlining the Company's strategy for managing foreign currency risk through hedging instruments [INTEREST RATES](index=33&type=section&id=INTEREST%20RATES) This section analyzes the company's exposure to interest rate fluctuations and their potential impact on interest expense - A **1% change** in interest rates would impact the Company's yearly interest expense by approximately **$0.4 million**, assuming constant average borrowing levels[157](index=157&type=chunk) - The revolving credit facility has a variable interest rate (LIBOR plus margin), while the **$15.0 million 2018 Term Loan** has a fixed rate of **3.90%**[158](index=158&type=chunk) - The Company had no hedging arrangements in place for its revolving credit facility to limit exposure to upward interest rate movements as of December 24, 2022[158](index=158&type=chunk) [FOREIGN CURRENCY](index=34&type=section&id=FOREIGN%20CURRENCY) This section discusses the company's exposure to foreign currency fluctuations and its hedging strategies - Approximately **90% of total revenues** are denominated in U.S. dollars, with the remainder in Canadian dollars and Euros; a **10% currency fluctuation** would impact revenue by about **1%**[159](index=159&type=chunk) - The Company uses short-term foreign exchange forward contracts to reduce the risk of Canadian dollar fluctuations, recognizing a gain of **$0.3 million** in 9M FY23[160](index=160&type=chunk) - As of December 24, 2022, a foreign exchange contract with a notional amount of **$3.0 million** was outstanding and subsequently renewed in January 2023[160](index=160&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of Transcat's disclosure controls and procedures and reports no material changes in internal control over financial reporting during the third quarter of fiscal year 2023 [Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures](index=34&type=section&id=Conclusion%20Regarding%20the%20Effectiveness%20of%20Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures as of the reporting date - The principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures were effective as of December 24, 2022[161](index=161&type=chunk) [Changes in Internal Control over Financial Reporting](index=34&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section reports no material changes in internal control over financial reporting during the third fiscal quarter - There were no material changes in internal control over financial reporting during the third quarter of fiscal year 2023[162](index=162&type=chunk) PART II. OTHER INFORMATION This section includes additional information and exhibits required for the Form 10-Q filing [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including various certifications and interactive data files - The exhibits include Rule 13a-14(a)/15d-14(a) Certifications, Section 1350 Certifications, and Interactive Data Files (XBRL)[164](index=164&type=chunk) SIGNATURES This section contains the official certifications and signatures of the company's executive officers [Signatures](index=36&type=section&id=Signatures_Details) This section contains the official signatures of the registrant's principal executive officer and principal financial officer, certifying the report - The report was signed by Lee D. Rudow, President and Chief Executive Officer, and Thomas L. Barbato, Senior Vice President of Finance and Chief Financial Officer, on February 1, 2023[170](index=170&type=chunk)

Financial Data and Key Metrics Changes - Consolidated revenue increased by 13% to $57.4 million, with service revenue growth of 19% and organic growth of 12% [5][11] - Consolidated gross margin expanded by 180 basis points to 28.6%, driven by margin improvements in both distribution and service segments [6][12] - Adjusted EBITDA grew by 20% year-over-year to $6.6 million [6][13] - Net income remained flat at $1.6 million, with diluted earnings per share of $0.21 and adjusted diluted earnings per share of $0.35 [12] Business Line Data and Key Metrics Changes - Service segment revenue grew by 19%, marking the 55th consecutive quarter of year-over-year revenue growth, with service gross margins at 30% [6][7] - Distribution segment revenue increased by 4% to $21.4 million, with distribution gross margin expanding by 370 basis points to 26.2% [8][11] Market Data and Key Metrics Changes - Open order backlog in the distribution segment rose by 7% to $9.5 million [11] - The company reported strong performance in regulated markets, particularly in life sciences and aerospace and defense sectors [6][15] Company Strategy and Development Direction - The company aims to expand its addressable markets and leverage acquisitions to drive growth, with a focus on differentiation and strong execution [15][16] - Strategic acquisitions are a key part of the growth strategy, with recent acquisitions enhancing capabilities in calibration services and expanding geographic presence [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience amid economic uncertainty, highlighting the durability of its business model [15][39] - The company anticipates continued organic growth in the high single-digit range and expects to maintain strong demand for its services [15][39] Other Important Information - The company generated $6.8 million of free cash flow year-to-date [10] - The leverage ratio stands at 1.66 times, indicating a strong balance sheet supportive of acquisition strategies [10][14] Q&A Session Summary Question: Service growth acceleration and contributing factors - Management noted that the acceleration in service growth was due to a combination of factors, including strong retention and growth across various businesses, particularly NEXA [17] Question: Update on CBLs and their impact - Management indicated that while CBLs contributed to growth, they do not represent a high percentage of overall growth, and any drag from recent CBLs is expected to normalize in upcoming quarters [18][19] Question: Distribution margin strength and rental business contribution - Management stated that both rental business and strategic acquisitions contributed equally to the strong distribution margin performance [20] Question: CapEx expectations for the rental business - Management expects CapEx for the rental business to remain in the $2 million to $3 million range [23] Question: Efficiency gains on the service side - Management indicated that they are still in the early stages of their margin enhancement journey, aiming for mid-30s gross margins in the future [24][25] Question: Opportunities for cross-selling with NEXA - Management expressed optimism about substantial cross-selling opportunities with NEXA, noting early successes since the acquisition [26][27] Question: Expansion plans in Europe - Management confirmed that the acquisition in Ireland is a foothold for further expansion, with potential for growth in calibration services and professional services [28][29] Question: Comfort level with leveraging the balance sheet for acquisitions - Management indicated comfort with leveraging up to 3 times, currently at 1.66 times, and remains active in pursuing acquisitions [32][34] Question: Performance in the Canadian market - Management reported strong performance in Canada, exceeding expectations, and noted ongoing investments in the Toronto lab to enhance capabilities [36][37] Question: Potential headwinds for fiscal 2024 - Management acknowledged economic factors such as rising interest rates and inflation as potential headwinds but expressed confidence in the company's recession-resistant business model [39]

Financial Performance - Consolidated revenue increased by 13% year-over-year, reaching $57.4 million in Q3 FY23 compared to $50.9 million in Q3 FY22 [7] - Adjusted EBITDA grew by 20% from the prior year, totaling $6.6 million [4, 14] - Gross margin expanded by 180 basis points to 28.6% [4] - Net income was $1.6 million, resulting in $0.21 per diluted share [4] Segment Performance - Service segment revenue increased by 19%, with organic growth of 12% [4, 7] - Service segment gross profit grew by 20%, with gross margin expanding 30 basis points to 30.0% [4] - Distribution segment revenue grew by 4%, with backlog increasing by 7% to over $9.5 million [4] - Distribution segment gross margin expanded by 370 basis points [4] - Service segment adjusted EBITDA increased 12% from prior year to $4.6 million [14] - Distribution adjusted EBITDA increased 47% from prior year to $2.0 million [14]

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 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 ...

Transcat, Inc. (NASDAQ:TRNS) Q2 2023 Results Conference Call November 1, 2022 11:00 AM ET Company Participants Tom Barbato - CFO Lee Rudow - President, CEO and Director Mark Doheny - COO Conference Call Participants Greg Palm - Craig-Hallum Capital Group Gerry Sweeney - ROTH Capital Scott Buck - H.C. Wainwright Ted Jackson - Northland Securities Mitra Ramgopal - Sidoti Operator Greetings and welcome to Transcat, Inc. Second Quarter 2023 Financial Results. At this time, all participants are in a listen-only ...