Transcat(TRNS) - 2025 Q2 - Quarterly Results

Revenue Growth - Consolidated revenue for Q2 FY2025 was $67.8 million, an increase of 8.0% compared to $62.8 million in Q2 FY2024[3] - Service revenue grew to $44.1 million, up 6.4% year-over-year, while distribution revenue increased by 11.1% to $23.7 million[4] - Total revenue for the second quarter ended September 28, 2024, was $67.826 million, representing an increase from $62.804 million in the same quarter of the previous year, a growth of approximately 3.2%[24] - Total revenue for FY 2025 Q2 reached $67,826, an increase of 8.0% compared to $62,804 in FY 2024 Q2[36] - Service revenue for FY 2025 YTD was $87,861, up 8.1% from $81,284 in FY 2024 YTD[37] - Distribution revenue for FY 2025 YTD was $46,672, representing a 10.8% increase from $42,118 in FY 2024 YTD[38] Profitability - Gross profit for the quarter was $21.2 million, a 5.4% increase from $20.1 million in the prior year, with a gross margin of 31.3%[3] - Gross profit for the second quarter was $21.206 million, up from $20.125 million year-over-year, reflecting a growth of about 5.4%[24] - Operating income surged to $3.7 million, reflecting a 127.3% increase from $1.6 million in the same quarter last year[3] - Net income for the second quarter was $3.286 million, compared to $460,000 in the same quarter last year, indicating a significant increase[24] - Net income per diluted share rose to $0.35, compared to $0.06 in the prior year, marking a 483.3% increase[4] - Year-to-date operating income for FY 2025 reached $8,834, a 40.6% increase from $6,283 in FY 2024 YTD[39] Cash and Assets - The company had $23.8 million in cash and cash equivalents and $80.0 million available for borrowing as of September 28, 2024[13] - Total cash and cash equivalents at the end of the period were $23,815,000, compared to $1,246,000 at the end of the previous year[28] - Total assets increased to $323.553 million as of September 28, 2024, up from $287.552 million as of March 30, 2024[26] Operational Performance - Adjusted EBITDA is used as a key performance measure, allowing for evaluation of core operations by excluding non-GAAP items[17] - Adjusted EBITDA for Q2 was $8,861,000, with a year-to-date total of $19,073,000, reflecting strong operational performance[29] - Transcat's service segment adjusted EBITDA was $6,624,000 for Q2, while the distribution segment adjusted EBITDA was $2,237,000[30] - Cash flows from operating activities were $15,759,000 for the six months ended September 2024, slightly down from $15,972,000 in the prior year[28] Strategic Initiatives - The company expects FY25 organic service revenue growth in the mid-single digits, with a return to high single-digit growth anticipated by the first half of FY2026[14] - Transcat's acquisition pipeline remains robust, focusing on strategic opportunities to drive organic revenue growth[14] - The company aims to expand its addressable calibration market through acquisitions and capability investments[21] - Transcat operates 29 Calibration Service Centers across the U.S., Puerto Rico, Canada, and Ireland, enhancing its service capabilities[19] - The company emphasizes its strategy to leverage its strong brand and unique value proposition to drive organic sales growth[21] Shareholder Information - The company reported a total of 9,199,277 shares outstanding as of September 28, 2024, compared to 8,839,299 shares as of March 30, 2024[25] - Transcat's average diluted shares outstanding were 9,222,000 for the year-to-date period, reflecting a slight increase in share count[31] - Diluted earnings per share for the second quarter were $0.35, compared to $0.06 in the same quarter of the previous year, marking a substantial rise[24] - The company reported a diluted earnings per share of $0.83 for the year-to-date period, with an adjusted diluted earnings per share of $1.20[31] Expense Management - Selling, marketing, and warehouse expenses increased by 19.3% to $8,181 in FY 2025 Q2 from $6,856 in FY 2024 Q2[36] - General and administrative expenses decreased by 20.1% to $9,290 in FY 2025 Q2 from $11,626 in FY 2024 Q2[36] - Depreciation and amortization expenses for Q2 amounted to $4,399,000, contributing to the overall adjusted EBITDA calculation[29] - The company incurred transaction expenses of $33,000 in Q2, indicating ongoing costs related to acquisitions[29]