PART I. FINANCIAL INFORMATION ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS Presents unaudited consolidated financial statements and notes for Q3 and 9M FY22, detailing operations, policies, and acquisitions Consolidated Statements of Income | Metric (in Thousands) | Q3 FY22 (Dec 25, 2021) | Q3 FY21 (Dec 26, 2020) | 9M FY22 (Dec 25, 2021) | 9M FY21 (Dec 26, 2020) | | :-------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Service Revenue | $30,237 | $24,776 | $87,338 | $72,297 | | Distribution Sales | $20,665 | $19,286 | $61,741 | $52,276 | | Total Revenue | $50,902 | $44,062 | $149,079 | $124,573 | | Gross Profit | $13,636 | $11,245 | $41,767 | $32,148 | | Operating Income | $2,361 | $2,519 | $9,628 | $6,561 | | Net Income | $1,629 | $1,761 | $8,332 | $4,583 | | Basic EPS | $0.22 | $0.24 | $1.11 | $0.62 | | Diluted EPS | $0.21 | $0.23 | $1.10 | $0.61 | Consolidated Statements of Comprehensive Income | Metric (in Thousands) | Q3 FY22 (Dec 25, 2021) | Q3 FY21 (Dec 26, 2020) | 9M FY22 (Dec 25, 2021) | 9M FY21 (Dec 26, 2020) | | :-------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Net Income | $1,629 | $1,761 | $8,332 | $4,583 | | Currency Translation Adjustment | ($233) | $251 | ($314) | $505 | | Other, net of tax effects | $18 | $21 | $48 | $95 | | Total Other Comprehensive (Loss) Income | ($215) | $272 | ($266) | $600 | | Comprehensive Income | $1,414 | $2,033 | $8,066 | $5,183 | Consolidated Balance Sheets | Metric (in Thousands) | Dec 25, 2021 | Mar 27, 2021 | | :-------------------- | :----------- | :----------- | | Cash | $2,779 | $560 | | Accounts Receivable, net | $34,702 | $33,950 | | Inventory, net | $13,868 | $11,636 | | Total Current Assets | $57,549 | $48,928 | | Property and Equipment, net | $23,781 | $22,203 | | Goodwill | $59,133 | $43,272 | | Intangible Assets, net | $11,503 | $7,513 | | Total Assets | $161,600 | $132,116 | | Total Current Liabilities | $24,619 | $25,142 | | Long-Term Debt | $38,616 | $17,494 | | Total Liabilities | $78,702 | $57,038 | | Total Shareholders' Equity | $82,898 | $75,078 | Consolidated Statements of Cash Flows | Metric (in Thousands) | 9M FY22 (Dec 25, 2021) | 9M FY21 (Dec 26, 2020) | | :-------------------- | :--------------------- | :--------------------- | | Net Cash Provided by Operating Activities | $12,378 | $15,647 | | Net Cash Used in Investing Activities | ($26,759) | ($7,742) | | Net Cash Provided by (Used in) Financing Activities | $16,900 | ($6,619) | | Net Increase in Cash | $2,219 | $535 | | Cash at End of Period | $2,779 | $1,034 | Consolidated Statements of Shareholders' Equity | Metric (in Thousands) | Balance as of March 27, 2021 | Balance as of December 25, 2021 | | :-------------------- | :--------------------------- | :------------------------------ | | Common Stock, $0.50 Par Value | $3,729 | $3,760 | | Capital in Excess of Par Value | $19,287 | $23,452 | | Accumulated Other Comprehensive Loss | ($451) | ($717) | | Retained Earnings | $52,513 | $56,403 | | Total Shareholders' Equity | $75,078 | $82,898 | Notes to Consolidated Financial Statements NOTE 1 – GENERAL Details Transcat's business, key accounting policies, and confirms no material impact from ASU 2016-13 on credit losses - Transcat, Inc. is a leading provider of accredited calibration and laboratory instrument services and a value-added distributor of professional grade test, measurement and control instrumentation, focusing on highly regulated industries like life science23 | Metric (in Thousands) | 9M FY22 (Dec 25, 2021) | 9M FY21 (Dec 26, 2020) | | :-------------------- | :--------------------- | :--------------------- | | Non-cash stock-based compensation expense | $1,700 | $900 | - The company uses short-term foreign exchange forward contracts to reduce risk from Canadian dollar fluctuations, recognizing net changes in fair value as a component of other expense30 | Metric (in Thousands) | Dec 25, 2021 | Mar 27, 2021 | | :-------------------- | :----------- | :----------- | | Goodwill | $59,133 | $43,272 | | Intangible Assets | $11,503 | $7,513 | | Goodwill Additions | $15,980 | - | | Intangible Assets Additions | $6,690 | - | | Intangible Assets Amortization | ($2,696) | - | - The adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), is not expected to have a material impact on consolidated financial statements, as credit losses from trade receivables have not historically been significant34 NOTE 2 – LONG-TERM DEBT Details the 2021 Credit Agreement, increasing revolving credit and acquisition limits, and confirming covenant compliance - The 2021 Credit Agreement increased the revolving credit commitment from $40.0 million to $80.0 million and extended its term to June 202636 - Permitted acquisitions aggregate purchase price increased from $1.0 million to $65.0 million for the current fiscal year, with an additional $40.0 million for UK/EU businesses36 - Restricted payments for share repurchases and dividends increased to $25.0 million in aggregate and $10.0 million in any single fiscal year37 - 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%37 | Debt Type (in Thousands) | Outstanding as of Dec 25, 2021 | | :----------------------- | :----------------------------- | | Revolving Credit Facility | $31,700 | | 2018 Term Loan | $9,100 | - The company was in compliance with all loan covenants, with a leverage ratio of 1.47 at December 25, 2021, compared to 0.94 at March 27, 202143 NOTE 3 – STOCK-BASED COMPENSATION Outlines the 2021 Stock Incentive Plan, restricted stock units, options, and related compensation expense and tax benefits - As of December 25, 2021, 0.7 million shares of common stock were available for future grant under the 2021 Plan46 | Metric (in Thousands) | 9M FY22 (Dec 25, 2021) | 9M FY21 (Dec 26, 2020) | | :-------------------- | :--------------------- | :--------------------- | | Discrete tax benefits related to share-based compensation | $1,700 | $300 | | Metric (in Thousands) | 9M FY22 (Dec 25, 2021) | 9M FY21 (Dec 26, 2020) | | :-------------------- | :--------------------- | :--------------------- | | Expense relating to restricted stock units | $1,200 | $700 | | Unearned compensation for restricted stock units (as of Dec 25, 2021) | $2,400 | - | | Metric (in Thousands) | 9M FY22 (Dec 25, 2021) | 9M FY21 (Dec 26, 2020) | | :-------------------- | :--------------------- | :--------------------- | | Expense related to stock options | $400 | $100 | | Aggregate intrinsic value of stock options exercised | $6,900 | $300 | | Cash received from exercise of options | $1,000 | $400 | NOTE 4 – SEGMENT INFORMATION Provides disaggregated financial data for Service and Distribution segments, including revenue, gross profit, and operating income | Metric (in Thousands) | Q3 FY22 (Dec 25, 2021) | Q3 FY21 (Dec 26, 2020) | 9M FY22 (Dec 25, 2021) | 9M FY21 (Dec 26, 2020) | | :-------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Revenue: | | | | | | Service | $30,237 | $24,776 | $87,338 | $72,297 | | Distribution | $20,665 | $19,286 | $61,741 | $52,276 | | Total | $50,902 | $44,062 | $149,079 | $124,573 | | Gross Profit: | | | | | | Service | $8,983 | $6,915 | $27,447 | $20,884 | | Distribution | $4,653 | $4,330 | $14,320 | $11,264 | | Total | $13,636 | $11,245 | $41,767 | $32,148 | | Operating Expenses: | | | | | | Service | $7,322 | $4,959 | $20,165 | $14,822 | | Distribution | $3,953 | $3,767 | $11,974 | $10,765 | | Total | $11,275 | $8,726 | $32,139 | $25,587 | | Operating Income: | | | | | | Service | $1,661 | $1,956 | $7,282 | $6,062 | | Distribution | $700 | $563 | $2,346 | $499 | | Total | $2,361 | $2,519 | $9,628 | $6,561 | NOTE 5 – BUSINESS ACQUISITIONS Details recent business acquisitions, including purchase prices, allocations, strategic rationale, and pro forma results - Transcat acquired Tangent Labs, LLC for approximately $9.0 million in cash on December 31, 2021, expanding its local calibration capabilities in attractive geographies5758 - Transcat acquired NEXA Enterprise Asset Management for approximately $26.2 million ($23.9 million cash, $2.4 million stock) on August 31, 2021, enhancing Service capabilities globally6062 NEXA Preliminary Purchase Price Allocation (in Thousands): | Asset/Liability | Amount | | :-------------- | :----- | | Goodwill | $15,497 | | Intangible Assets – Customer Base & Contracts | $5,600 | | Intangible Assets – Backlog | $490 | | Intangible Assets – Covenant Not to Compete | $600 | | Cash | $3,732 | | Accounts Receivable | $2,434 | | Non-Current Assets | $38 | | Current Liabilities | ($453) | | Deferred Tax Liability | ($1,706) | | Total Purchase Price | $26,232 | - Transcat acquired Upstate Metrology Inc. for approximately $0.9 million on April 29, 2021, leveraging existing operating infrastructure6567 Upstate Metrology Purchase Price Allocation (in Thousands): | Asset/Liability | Amount | | :-------------- | :----- | | Goodwill | $483 | | Current Assets | $189 | | Non-Current Assets | $270 | | Current Liabilities | ($11) | | Total Purchase Price | $931 | - Transcat acquired BioTek Services, Inc. for approximately $3.5 million on December 16, 2020, expanding pipette calibration services in the life science sector6870 BioTek Purchase Price Allocation (in Thousands): | Asset/Liability | Amount | | :-------------- | :----- | | Goodwill | $1,063 | | Intangible Assets – Customer Base & Contracts | $1,930 | | Intangible Assets – Covenant Not to Compete | $100 | | Current Assets | $406 | | Non-Current Assets | $8 | | Total Purchase Price | $3,507 | Unaudited Pro Forma Results (in Thousands, except per share): | Metric | Q4 FY21 (Dec 26, 2020) | 9M FY22 (Dec 25, 2021) | 9M FY21 (Dec 26, 2020) | | :----- | :--------------------- | :--------------------- | :--------------------- | | Total Revenue | $47,384 | $153,011 | $131,096 | | Net Income | $3,129 | $8,943 | $5,998 | | Basic EPS | $0.42 | $1.19 | $0.81 | | Diluted EPS | $0.41 | $1.18 | $0.80 | ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Management's discussion of financial condition and results for Q3 and 9M FY22, covering revenue, expenses, and liquidity Forward-Looking Statements - The report contains forward-looking statements subject to risks and uncertainties, including the impact of COVID-19, competition, cybersecurity, employee retention, operating result fluctuations, and acquisition integration75 Critical Accounting Policies and Estimates - There have been no material changes to critical accounting policies and estimates from the information provided in the Annual Report on Form 10-K for the fiscal year ended March 27, 202176 RESULTS OF OPERATIONS Executive Summary Transcat's Q3 FY22 revenue grew 15.5% to $50.9 million from strong Service and Distribution, with Adjusted EBITDA up 19.8% | Metric (in Millions) | Q3 FY22 (Dec 25, 2021) | Q3 FY21 (Dec 26, 2020) | Change ($M) | Change (%) | | :------------------- | :--------------------- | :--------------------- | :---------- | :--------- | | Consolidated Revenue | $50.9 | $44.1 | $6.8 | 15.5% | | Gross Profit | $13.6 | $11.2 | $2.4 | 21.3% | | Gross Margin | 26.8% | 25.5% | 1.3 pp | | | Total Operating Expenses | $11.3 | $8.7 | $2.6 | 29.2% | | Operating Income | $2.4 | $2.5 | ($0.1) | (4.0%) | | Net Income | $1.6 | $1.8 | ($0.2) | (7.5%) | Third Quarter Ended December 25, 2021 Compared to Third Quarter Ended December 26, 2020 Q3 FY22 revenue grew 15.5% to $50.9 million from strong Service and Distribution, with Adjusted EBITDA up 19.8% Revenue | Revenue (in Thousands) | Q3 FY22 (Dec 25, 2021) | Q3 FY21 (Dec 26, 2020) | Change ($) | Change (%) | | :--------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Service | $30,237 | $24,776 | $5,461 | 22.0% | | Distribution | $20,665 | $19,286 | $1,379 | 7.2% | | Total | $50,902 | $44,062 | $6,840 | 15.5% | - Service revenue growth included $2.9 million from acquisitions and 10.2% organic revenue growth83 Service Revenue Growth (YoY %): | Quarter | FY22 Q3 | FY22 Q2 | FY22 Q1 | FY21 Q4 | FY21 Q3 | FY21 Q2 | FY21 Q1 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Growth | 22.0% | 20.3% | 20.0% | 15.8% | 12.2% | 4.5% | 2.5% | Trailing Twelve-Month Service Revenue (in Thousands): | Quarter | FY22 Q3 | FY22 Q2 | FY22 Q1 | FY21 Q4 | FY21 Q3 | FY21 Q2 | FY21 Q1 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Revenue | $116,315 | $110,854 | $105,864 | $101,274 | $97,225 | $94,624 | $93,572 | | Growth | 19.5% | 17.1% | 13.1% | 8.9% | 5.4% | 4.3% | 7.4% | Distribution Sales Growth (Decline) (YoY %): | Quarter | FY22 Q3 | FY22 Q2 | FY22 Q1 | FY21 Q4 | FY21 Q3 | FY21 Q2 | FY21 Q1 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Growth | 7.2% | 22.2% | 27.0% | (4.6%) | (8.6%) | (6.6%) | (20.3%) | Total Pending Product Shipments (in Thousands): | Quarter | FY22 Q3 (Dec 25, 2021) | FY21 Q3 (Dec 26, 2020) | Change ($) | | :------ | :--------------------- | :--------------------- | :--------- | | Amount | $8,854 | $5,533 | $3,321 | | % Backorders | 81.3% | 79.3% | | Gross Profit | Gross Profit (in Thousands) | Q3 FY22 (Dec 25, 2021) | Q3 FY21 (Dec 26, 2020) | Change ($) | Change (%) | | :-------------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Service | $8,983 | $6,915 | $2,068 | 29.9% | | Distribution | $4,653 | $4,330 | $323 | 7.5% | | Total | $13,636 | $11,245 | $2,391 | 21.3% | - Total gross margin expanded by 130 basis points to 26.8% in Q3 FY22, driven by operating leverage and accretive gross margins from recent acquisitions9091 Service Gross Margin (% of Service Revenue): | Quarter | FY22 Q3 | FY22 Q2 | FY22 Q1 | FY21 Q4 | FY21 Q3 | FY21 Q2 | FY21 Q1 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Margin | 29.7% | 32.9% | 31.8% | 33.9% | 27.9% | 32.2% | 26.4% | Distribution Gross Margin (% of Distribution Sales): | Quarter | FY22 Q3 | FY22 Q2 | FY22 Q1 | FY21 Q4 | FY21 Q3 | FY21 Q2 | FY21 Q1 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Margin | 22.5% | 23.5% | 23.6% | 21.0% | 22.5% | 21.1% | 21.0% | Operating Expenses | Operating Expenses (in Thousands) | Q3 FY22 (Dec 25, 2021) | Q3 FY21 (Dec 26, 2020) | Change ($) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Selling, Marketing and Warehouse | $5,051 | $4,675 | $376 | 8.0% | | General and Administrative | $6,224 | $4,051 | $2,173 | 53.6% | | Total | $11,275 | $8,726 | $2,549 | 29.2% | - Increase in operating expenses was due to higher performance-based sales incentives, direct marketing costs, one-time transaction expenses from acquisitions, incremental expenses from acquired companies, increased payroll, and technology investments94 Provision for Income Taxes | Provision for Income Taxes (in Thousands) | Q3 FY22 (Dec 25, 2021) | Q3 FY21 (Dec 26, 2020) | Change ($) | Change (%) | | :---------------------------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Amount | $596 | $539 | $57 | 10.6% | - Effective tax rates were 26.8% for Q3 FY22 and 23.4% for Q3 FY21, with the increase due to higher non-deductible expenses95 - Expected total fiscal year 2022 effective tax rate is approximately 14% to 15%96 Net Income | Net Income (in Thousands) | Q3 FY22 (Dec 25, 2021) | Q3 FY21 (Dec 26, 2020) | Change ($) | Change (%) | | :------------------------ | :--------------------- | :--------------------- | :--------- | :--------- | | Amount | $1,629 | $1,761 | ($132) | (7.5%) | - Net income decreased primarily due to lower operating income and a higher provision for income taxes97 Adjusted EBITDA | Adjusted EBITDA (in Thousands) | Q3 FY22 (Dec 25, 2021) | Q3 FY21 (Dec 26, 2020) | Change ($) | Change (%) | | :----------------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Amount | $5,466 | $4,562 | $904 | 19.8% | - Adjusted EBITDA as a percentage of revenue increased to 10.7% for Q3 FY22 from 10.4% for Q3 FY21100 - The increase in Adjusted EBITDA was primarily driven by increases in depreciation and amortization expense and non-cash stock compensation expense, offsetting lower net income100 Nine Months Ended December 25, 2021 Compared to Nine Months Ended December 26, 2020 9M FY22 revenue increased 19.7% to $149.1 million, net income surged 81.8%, and Adjusted EBITDA rose 40.5% Revenue | Revenue (in Thousands) | 9M FY22 (Dec 25, 2021) | 9M FY21 (Dec 26, 2020) | Change ($) | Change (%) | | :--------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Service | $87,338 | $72,297 | $15,041 | 20.8% | | Distribution | $61,741 | $52,276 | $9,465 | 18.1% | | Total | $149,079 | $124,573 | $24,506 | 19.7% | - Service revenue increase included $5.3 million of incremental revenue from acquisitions102 - Distribution sales increase was due to increased orders and an easier comparison to the prior year, which was adversely impacted by COVID-19103 Gross Profit | Gross Profit (in Thousands) | 9M FY22 (Dec 25, 2021) | 9M FY21 (Dec 26, 2020) | Change ($) | Change (%) | | :-------------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Service | $27,447 | $20,884 | $6,563 | 31.4% | | Distribution | $14,320 | $11,264 | $3,056 | 27.1% | | Total | $41,767 | $32,148 | $9,619 | 29.9% | - Total gross margin for the first nine months of fiscal year 2022 was 28.0%, a 220 basis points increase compared to 25.8% in the prior year104 - Increase in gross margin was primarily due to operating leverage on fixed costs, accretive margins from recent acquisitions, strong technician productivity in Service, and a favorable product mix in Distribution104 Operating Expenses | Operating Expenses (in Thousands) | 9M FY22 (Dec 25, 2021) | 9M FY21 (Dec 26, 2020) | Change ($) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Selling, Marketing and Warehouse | $15,022 | $13,040 | $1,982 | 15.2% | | General and Administrative | $17,117 | $12,547 | $4,570 | 36.4% | | Total | $32,139 | $25,587 | $6,552 | 25.6% | - Increase in general and administrative expenses includes $0.9 million of one-time transaction related expenses from business acquisitions, incremental expenses from acquired companies, increased payroll, and technology investments105 Provision for Income Taxes | Provision for Income Taxes (in Thousands) | 9M FY22 (Dec 25, 2021) | 9M FY21 (Dec 26, 2020) | Change ($) | Change (%) | | :---------------------------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Amount | $715 | $1,199 | ($484) | (40.4%) | - Effective tax rates were 7.9% for 9M FY22 and 20.7% for 9M FY21, with the decrease due to increased discrete tax benefits from share-based compensation activity ($1.7 million in FY22 vs. $300 thousand in FY21)107 Net Income | Net Income (in Thousands) | 9M FY22 (Dec 25, 2021) | 9M FY21 (Dec 26, 2020) | Change ($) | Change (%) | | :------------------------ | :--------------------- | :--------------------- | :--------- | :--------- | | Amount | $8,332 | $4,583 | $3,749 | 81.8% | - The year-over-year increase in net income was due to higher operating income and lower provision for income taxes108 Adjusted EBITDA | Adjusted EBITDA (in Thousands) | 9M FY22 (Dec 25, 2021) | 9M FY21 (Dec 26, 2020) | Change ($) | Change (%) | | :----------------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Amount | $18,655 | $13,273 | $5,382 | 40.5% | - Adjusted EBITDA as a percentage of revenue was 12.5% for 9M FY22, up from 10.7% for 9M FY21112 - The increase in Adjusted EBITDA was primarily driven by the increase in net income, depreciation and amortization expense, non-cash stock compensation expense, and acquisition transaction expenses112 LIQUIDITY AND CAPITAL RESOURCES Transcat expects to meet liquidity needs via operations and credit facility, which was expanded, while cash flows reflect acquisitions - Foreseeable liquidity and capital resource requirements are expected to be met through anticipated cash flows from operations and borrowings from the $80.0 million revolving credit facility113115 - The 2021 Credit Agreement increased the revolving credit commitment to $80.0 million, expanded permitted acquisition limits to $65.0 million (current fiscal year) plus $40.0 million for UK/EU businesses, and increased restricted payments for share repurchases/dividends115116 - As of December 25, 2021, $31.7 million was outstanding on the revolving credit facility and $9.1 million on the 2018 Term Loan119120 - The company was in compliance with all loan covenants, with a leverage ratio of 1.47 at December 25, 2021121 | Cash Flows (in Thousands) | 9M FY22 (Dec 25, 2021) | 9M FY21 (Dec 26, 2020) | | :------------------------ | :--------------------- | :--------------------- | | Operating Activities | $12,378 | $15,647 | | Investing Activities | ($26,759) | ($7,742) | | Financing Activities | $16,900 | ($6,619) | - Net cash provided by operating activities decreased due to changes in net working capital, including increases in accounts receivable and inventory, and decreases in accrued compensation and income taxes payable124128 - Investing activities included $5.9 million in capital expenditures and $20.9 million for business acquisitions in 9M FY22126127 - Financing activities in 9M FY22 included $22.8 million borrowed from the revolving credit facility, $1.4 million from common stock issuance, and $5.6 million for share repurchases to cover employee tax obligations128 OUTLOOK Q4 FY22 outlook projects high-teens Service revenue growth, high single-digit Distribution growth, and a 14-15% full-year tax rate - For Q4 FY22, Service revenue growth is expected to be in the high-teens, with Service gross margin in the range of 35%130 - Distribution revenue is expected to grow in the high single-digits in Q4 FY22130 - Total operating expenses in Q4 FY22 are expected to increase approximately $0.5 million sequentially from Q3, including expenses from the Tangent Labs acquisition130 - The expected income tax rate for full fiscal year 2022 is between 14% and 15%131 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Discusses exposure to interest rate and foreign currency risks, quantifying potential impacts and mitigation strategies Interest Rates - A 1% change in interest rates would impact yearly interest expense by approximately $0.2 million, assuming constant average borrowing levels132 - As of December 25, 2021, $31.7 million was outstanding on the $80.0 million revolving credit facility, and $9.1 million on the $15.0 million (original principal) 2018 Term Loan132 - The revolving credit facility's interest rate ranged from 1.0% to 2.2% during the first nine months of fiscal year 2022, while the 2018 Term Loan accrued at a fixed rate of 3.90% for subsequent periods after Q1 FY22133 Foreign Currency - Approximately 90% of total revenues for the first nine months of fiscal years 2022 and 2021 were denominated in U.S. dollars, with the remainder in Canadian dollars and Euros134 - A 10% change in the value of the Canadian dollar or Euro against the U.S. dollar would impact revenue by approximately 1%134 - The company uses short-term foreign exchange forward contracts to mitigate risk from Canadian dollar fluctuations, with a notional amount of $2.6 million outstanding as of December 25, 2021135136 ITEM 4. CONTROLS AND PROCEDURES 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 fiscal quarter of 2022 Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of December 25, 2021137 Changes in Internal Control over Financial Reporting - There has been no change in internal control over financial reporting during the third fiscal quarter of 2022 that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting138 PART II. OTHER INFORMATION ITEM 6. EXHIBITS Lists exhibits filed with Form 10-Q, including SOX certifications and XBRL data - Key exhibits include the Membership Unit Purchase Agreement, CEO and CFO certifications (Section 302 and 906 of Sarbanes-Oxley Act), and XBRL Interactive Data Files141 SIGNATURES Contains the duly authorized signatures of Transcat, Inc.'s CEO and CFO, affirming the report's filing
Transcat(TRNS) - 2022 Q3 - Quarterly Report