Press release

Transcat Reports Record Second Quarter Operating Income of $3.1 Million on Strong Service Gross Margin

0
Sponsored by Businesswire

Transcat, Inc. (Nasdaq: TRNS) (“Transcat” or the “Company”), a leading provider of accredited calibration, repair, inspection and laboratory instrument services and value-added distributor of professional grade handheld test, measurement and control instrumentation, today reported financial results for its second quarter ended September 26, 2020 (the “second quarter”) of fiscal year 2021, which ends March 27, 2021 (“fiscal 2021”). Results include the previously-reported acquisition of TTE Laboratories, Inc. (referred to as “pipettes.com”) effective February 21, 2020.

“Our Service segment delivered another excellent quarter, reaching the second highest gross margin level in company history at 32.2%, an increase of 660 basis points year-over-year,” commented Lee D. Rudow, President and CEO. “Technician productivity, expense reductions and strategic pricing drove the margin improvement, which was further helped by a favorable mix and the results of pipettes.com. Our teams have done a tremendous job leveraging our technology investments and have remained focused on driving efficiencies and better cost controls in our lab network.”

“In addition to the high level of performance in our Service segment, we were certainly encouraged with the Distribution segment, where sales grew significantly over our first quarter of fiscal 2021. Overall, our Service margin performance helped drive record second quarter consolidated operating income of more than $3 million, exceeding our expectations. Additionally, we continued to generate strong cash from operations, which was used in part to reduce debt and fund technology investments.”

Second Quarter Fiscal 2021 Review (Results are compared with the second quarter of the fiscal year ended March 28, 2020 (“fiscal 2020”))

($ in thousands)

 

 

 

 

Change

FY21 Q2

 

FY20 Q2

 

$’s

 

%

Service Revenue

$

24,554

 

 

$

23,502

 

 

$

1,052

 

 

4.5

%

Distribution Sales

 

17,053

 

 

 

18,261

 

 

 

(1,208

)

 

(6.6

%)

Revenue

$

41,607

 

 

$

41,763

 

 

$

(156

)

 

(0.4

%)

Gross Profit

$

11,494

 

 

$

10,445

 

 

$

1,049

 

 

10.0

%

Gross Margin

 

27.6

%

 

 

25.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

$

3,078

 

 

$

3,059

 

 

$

19

 

 

0.6

%

Operating Margin

 

7.4

%

 

 

7.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

2,024

 

 

$

2,379

 

 

$

(355

)

 

(14.9

%)

Net Margin

 

4.9

%

 

 

5.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

$

5,223

 

 

$

4,788

 

 

$

435

 

 

9.1

%

Adjusted EBITDA* Margin

 

12.6

%

 

 

11.5

%

 

 

 

 

*See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the Adjusted EBITDA Reconciliation table.

Despite the ongoing impact from the COVID-19 pandemic, consolidated revenue remained stable year-over-year. Consolidated gross profit increased $1.0 million, or 10.0%, and gross margin expanded 260 basis points as a result of continued productivity improvements in the Service Segment, strategic pricing and cost controls, which offset continued softness in the Distribution segment. Operating expenses grew $1.0 million, or 13.9%, due to investments to further technology initiatives and incremental expenses related to pipettes.com. Net income per diluted share was $0.27 compared with $0.32 in last fiscal year’s second quarter with the prior period benefiting by $0.05 from a lower tax rate due to increased discrete income tax benefits related to stock-based awards.

Service segment margins saw significant expansion

Represents the accredited calibration, repair, inspection and laboratory instrument services business

(59% of total revenue for the second quarter of fiscal 2021).

($ in thousands)

 

 

 

 

Change

FY21 Q2

 

FY20 Q2

 

$’s

 

%

 

 

 

 

 

 

 

 

Service Segment Revenue

$

24,554

 

 

$

23,502

 

 

$

1,052

 

4.5

%

Gross Profit

$

7,900

 

 

$

6,012

 

 

$

1,888

 

31.4

%

Gross Margin

 

32.2

%

 

 

25.6

%

 

 

 

 

 

 

 

 

 

 

 

Operating Income

$

2,977

 

 

$

1,837

 

 

$

1,140

 

62.1

%

Operating Margin

 

12.1

%

 

 

7.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

$

4,475

 

 

$

3,101

 

 

$

1,374

 

44.3

%

Adjusted EBITDA* Margin

 

18.2

%

 

 

13.2

%

 

 

 

 

*See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the Adjusted EBITDA Reconciliation table.

The increase in Service revenue reflected new Life Science business, including $1.2 million of incremental revenue from pipettes.com, which more than offset softness from other markets. On a trailing twelve-month basis, Service revenue was $94.6 million, up 4.3% when compared with the trailing twelve-month period ending with the prior-fiscal year second quarter.

Service segment gross margin improved 660 basis points due to continued productivity initiatives and technology enhancements, more seasoned technicians, optimized client-based lab operations, strategic pricing, and a favorable mix of Service work performed in the quarter.

Distribution segment revenue and margins continued to be impacted by COVID-19 pandemic

Represents the sale and rental of new and used professional grade handheld test, measurement and control instrumentation (41% of total revenue for the second quarter of fiscal 2021).

($ in thousands)

 

 

 

 

Change

FY21 Q2

 

FY20 Q2

 

$’s

 

%

Distribution Segment Sales

$

17,053

 

 

$

18,261

 

 

$

(1,208

)

 

(6.6

%)

Gross Profit

$

3,594

 

 

$

4,433

 

 

$

(839

)

 

(18.9

%)

Gross Margin

 

21.1

%

 

 

24.3

%

 

 

 

 

 

 

 

 

 

 

Operating Income

$

101

 

 

$

1,222

 

 

$

(1,121

)

 

(91.7

%)

Operating Margin

 

0.6

%

 

 

6.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

$

748

 

 

$

1,687

 

 

$

(939

)

 

(55.7

%)

Adjusted EBITDA* Margin

 

4.4

%

 

 

9.2

%

 

 

 

 

*See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the Adjusted EBITDA Reconciliation table.

Distribution segment sales continued to be impacted by the COVID-19 pandemic, with reduced demand from oil and gas related businesses and other industrial manufacturing sectors. Rental revenue was up 32% sequentially from the first quarter of fiscal 2021 and was up 1.2% over the prior-year period. Distribution gross margin reflects lower volume from core product sales and reduced co-operative advertising and rebate programs as vendors reduced these programs to lower their costs.

Six Month Review (Results are compared with the first six months of fiscal 2020)

Total revenue was $80.5 million, a decrease of 4.3%, or $3.6 million, primarily due to a reduction in demand for Distribution products as a result of the COVID-19 pandemic which commenced at the beginning of the Company’s fiscal 2021 year. Despite the lower revenue, consolidated gross profit was up $0.4 million, or 2.0%, and gross margin expanded 160 basis points to 26.0%. Consolidated operating expenses increased $1.4 million, or 8.9%, as the Company continued to invest in technology initiatives. As a result, operating income was $4.0 million compared with $5.0 million in last fiscal year’s period.

Net income was $2.8 million, or $0.38 per diluted share, compared with $4.1 million, or $0.55 per diluted share. Adjusted EBITDA was consistent at $8.7 million. See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the Adjusted EBITDA Reconciliation table.

Strong Balance Sheet and Liquidity

Year-to-date net cash provided by operations of $12.5 million increased from $2.8 million in the prior-year period and was used to fund $3.1 million of capital expenditures and $7.6 million of debt repayment. Capital expenditures were primarily focused on technology, Service segment capabilities and rental pool assets.

At the end of the second quarter, Transcat had $28.9 million available for borrowing under its secured revolving credit facility. Total debt of $22.7 million was down $7.6 million from fiscal 2020 year-end. The Company’s leverage ratio, as defined in its credit agreement, was down to 1.19 at quarter end compared with 1.53 at fiscal 2020 year-end.

Outlook

Mr. Rudow concluded, “The results of the second quarter were strong and we are pleased with the significant progress made in our Service margin expansion initiatives. Our balance sheet is solid and the M&A pipeline is active. Additionally, we believe our new customer pipeline positions us well for strong organic growth as we work through these current challenging times. We are equally focused on continuing to advance our initiatives aimed at further enhancing our Service business, including additional technology deployments to drive productivity.

“As we head into the winter months, we remain cautious given the high degree of uncertainty that still exists in today’s COVID-19 impacted economic environment. For the third quarter of fiscal 2021, we expect Service revenue to grow modestly versus last fiscal year’s third quarter, and we anticipate solid improvement in gross margin year-over-year. Distribution is likely to continue to be negatively impacted by the current economic environment. We expect operating income for the third quarter of fiscal 2021 to be similar to the third quarter of fiscal 2020.”

Transcat adjusted its expected income tax rate for fiscal 2021 to a range of 22% to 23% from the previously provided range of 20% to 21%, largely due to profitability exceeding previous estimates.

The Company now expects capital expenditures to be approximately $5.5 million to $6.5 million, up from the previous estimated range of $5.0 million to $5.5 million. Capital investments are expected to be primarily for technology, growth-oriented opportunities within both of its operating segments, and rental pool assets. Maintenance and existing asset replacements are expected to be consistent with fiscal 2020 at approximately $1.0 million to $1.5 million.

Webcast and Conference Call

Transcat will host a conference call and webcast on Wednesday, October 28, 2020 at 11:00 a.m. ET. Management will review the financial and operating results for the second quarter, as well as the Company’s strategy and outlook. A question and answer session will follow the formal discussion. The review will be accompanied by a slide presentation, which will be available at www.transcat.com/investor-relations. The conference call can be accessed by calling (201) 689-8471. Alternatively, the webcast can be monitored at www.transcat.com/investor-relations.

A telephonic replay will be available from 2:00 p.m. ET on the day of the call through Wednesday, November 4, 2020. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13710941, or access the webcast replay at www.transcat.com/investor-relations, where a transcript will be posted once available.

NOTE 1 – Non-GAAP Financial Measures

In addition to reporting net income, a U.S. generally accepted accounting principle (“GAAP”) measure, we present Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, non-cash stock compensation expense, restructuring expense, and non-cash loss on sale of building), which is a non-GAAP measure. The Company’s management believes Adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the performance of its core operations from period to period by removing the impact of the capital structure (interest), tangible and intangible asset base (depreciation and amortization), taxes, stock-based compensation expense and other items, which is not always commensurate with the reporting period in which it is included. As such, the Company uses Adjusted EBITDA as a measure of performance when evaluating its business segments and as a basis for planning and forecasting. Adjusted EBITDA is not a measure of financial performance under GAAP and is not calculated through the application of GAAP. As such, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, rather in conjunction with, the GAAP measure. Adjusted EBITDA, as presented, may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies. See the attached Adjusted EBITDA Reconciliation table below.

ABOUT TRANSCAT

Transcat, Inc. is a leading provider of accredited calibration, repair, inspection and laboratory instrument services. The Company is focused on providing best-in-class services and products to highly regulated industries, particularly the Life Science industry, which includes pharmaceutical, biotechnology, medical device and other FDA-regulated businesses; as well as aerospace and defense, and energy and utilities. Transcat provides periodic on-site services, mobile calibration services, pickup and delivery, in-house services at its 22 Calibration Service Centers strategically located across the United States, Puerto Rico and Canada, and services at 20 imbedded customer-site locations. The breadth and depth of measurement parameters addressed by Transcat’s ISO/IEC 17025 scopes of accreditation are believed to be the best in the industry.

Transcat also operates as a leading value-added distributor that markets, sells and rents new and used national and proprietary brand instruments to customers primarily in North America. The Company believes its combined Service and Distribution segment offerings, experience, technical expertise and integrity create a unique and compelling value proposition for its customers.

Transcat’s strategy is to leverage the complementary nature of its two operating segments, its comprehensive service capabilities, strong brand, enhanced e-commerce capabilities and leading distribution platform to drive organic sales growth. The Company will also look to expand its addressable calibration market through acquisitions and capability investments to further realize the inherent leverage of its business model.

More information about Transcat can be found at: Transcat.com.

Safe Harbor Statement

This news release 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, uncertainties and assumptions. Forward-looking statements are identified by words such as “expects,” “estimates,” “projects,” “anticipates,” “believes,” “could,” “plans,” “aims” and other similar words. All statements addressing operating performance, events or developments that Transcat expects or anticipates will occur in the future, including but not limited to statements relating to anticipated revenue, profit margins, the impact of and the Company’s response to the COVID-19 pandemic, the commercialization of software projects, sales operations, capital expenditures, cash flows, operating income, growth strategy, segment growth, potential acquisitions, integration of acquired businesses, market position, customer preferences, outlook and changes in market conditions in the industries in which Transcat operates are forward-looking statements. Forward-looking statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include those more fully described in Transcat’s Annual Report and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should any of the Company’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company’s forward-looking statements, which speak only as of the date they are made. Except as required by law, the Company disclaims any obligation to update, correct or publicly announce any revisions to any of the forward-looking statements contained in this news release, whether as the result of new information, future events or otherwise.

FINANCIAL TABLES FOLLOW.

TRANSCAT, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts)

 

(Unaudited)

Second Quarter Ended

(Unaudited)

Six Months Ended

September 26,

2020

September 28,

2019

September 26,

2020

September 28,

2019

Service Revenue

$

24,554

$

23,502

$

47,521

$

45,900

Distribution Sales

 

17,053

 

18,261

 

32,990

 

38,258

Total Revenue

 

41,607

 

41,763

 

80,511

 

84,158

 

Cost of Service Revenue

 

16,654

 

17,490

 

33,552

 

34,516

Cost of Distribution Sales

 

13,459

 

13,828

 

26,056

 

29,145

Total Cost of Revenue

 

30,113

 

31,318

 

59,608

 

63,661

 

Gross Profit

 

11,494

 

10,445

 

20,903

 

20,497

 

Selling, Marketing and Warehouse Expenses

 

4,291

 

4,231

 

8,365

 

8,703

Administrative Expenses

 

4,125

 

3,155

 

8,496

 

6,777

Total Operating Expenses

 

8,416

 

7,386

 

16,861

 

15,480

 

Operating Income

 

3,078

 

3,059

 

4,042

 

5,017

 

Interest and Other Expense, net

 

317

 

297

 

560

 

582

 

Income Before Income Taxes

 

2,761

 

2,762

 

3,482

 

4,435

Provision for Income Taxes

 

737

 

383

 

660

 

338

 

Net Income

$

2,024

$

2,379

$

2,822

$

4,097

 

Basic Earnings Per Share

$

0.27

$

0.32

$

0.38

$

0.56

Average Shares Outstanding

 

7,417

 

7,331

 

7,405

 

7,293

 

Diluted Earnings Per Share

$

0.27

$

0.32

$

0.38

$

0.55

Average Shares Outstanding

 

7,549

 

7,484

 

7,525

 

7,441

TRANSCAT, INC.

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

 

(Unaudited)

September 26,

2020

March 28,

2020

ASSETS

Current Assets:

Cash

$

962

 

$

499

 

Accounts Receivable, less allowance for doubtful accounts of $589
and $480 as of September 26, 2020 and March 28, 2020, respectively

 

27,647

 

 

30,952

 

Other Receivables

 

717

 

 

1,132

 

Inventory, net

 

13,685

 

 

14,180

 

Prepaid Expenses and Other Current Assets

 

2,369

 

 

1,697

 

Total Current Assets

 

45,380

 

 

48,460

 

Property and Equipment, net

 

21,475

 

 

20,833

 

Goodwill

 

41,773

 

 

41,540

 

Intangible Assets, net

 

6,737

 

 

7,977

 

Right To Use Asset, net

 

10,010

 

 

8,593

 

Other Assets

 

685

 

 

719

 

Total Assets

$

126,060

 

$

128,122

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current Liabilities:

Accounts Payable

$

11,055

 

$

11,947

 

Accrued Compensation and Other Liabilities

 

7,118

 

 

6,907

 

Income Taxes Payable

 

438

 

 

86

 

Current Portion of Long-Term Debt

 

2,024

 

 

1,982

 

Total Current Liabilities

 

20,635

 

 

20,922

 

Long-Term Debt

 

20,709

 

 

28,362

 

Deferred Tax Liabilities

 

3,072

 

 

3,025

 

Lease Liabilities

 

8,197

 

 

6,832

 

Other Liabilities

 

3,345

 

 

1,894

 

Total Liabilities

 

55,958

 

 

61,035

 

 

Shareholders’ Equity:

Common Stock, par value $0.50 per share, 30,000,000 shares authorized;
7,432,582 and 7,381,180 shares issued and outstanding
as of September 26, 2020 and March 28, 2020, respectively

 

3,716

 

 

3,691

 

Capital in Excess of Par Value

 

18,453

 

 

17,929

 

Accumulated Other Comprehensive Loss

 

(682

)

 

(1,010

)

Retained Earnings

 

48,615

 

 

46,477

 

Total Shareholders’ Equity

 

70,102

 

 

67,087

 

Total Liabilities and Shareholders’ Equity

$

126,060

 

$

128,122

TRANSCAT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

 

(Unaudited)

For the Six Months Ended

September 26,

2020

September 28,

2019

Cash Flows from Operating Activities:

Net Income

$

2,822

 

$

4,097

 

Adjustments to Reconcile Net Income to Net Cash Provided

 

by Operating Activities:
Loss on Sale of Property and Equipment

 

68

 

 

240

 

Deferred Income Taxes

 

47

 

 

10

 

Depreciation and Amortization

 

3,736

 

 

3,303

 

Provision for Accounts Receivable and Inventory Reserves

 

523

 

 

201

 

Stock-Based Compensation Expense

 

678

 

 

305

 

Changes in Assets and Liabilities:
Accounts Receivable and Other Receivables

 

3,543

 

 

778

 

Inventory

 

623

 

 

(807

)

Prepaid Expenses and Other Assets

 

(625

)

 

(1,149

)

Accounts Payable

 

(892

)

 

(3,433

)

Accrued Compensation and Other Liabilities

 

1,626

 

 

(475

)

Income Taxes Payable

 

327

 

 

(236

)

Net Cash Provided by Operating Activities

 

12,476

 

 

2,834

 

 

Cash Flows from Investing Activities:

Purchase of Property and Equipment

 

(3,116

)

 

(4,048

)

Proceeds from Sale of Property and Equipment

 

 

 

184

 

Business Acquisitions, Net of cash acquired

 

 

 

(452

)

Payment of Contingent Consideration & Holdbacks Related to

Business Acquisition

 

 

 

 

(484

)

Net Cash Used in Investing Activities

 

(3,116

)

 

 

(4,800

)

 

Cash Flows from Financing Activities:

(Repayments of) Proceeds from Revolving Credit Facility, net

 

(6,632

)

 

4,598

 

Repayments of Term Loan

 

(979

)

 

(938

)

Issuance of Common Stock

 

474

 

 

1,372

 

Repurchase of Common Stock

 

(1,287

)

 

(2,822

)

Net Cash (Used in)/Provided by Financing Activities

 

(8,424

)

 

 

2,210

 

 

Effect of Exchange Rate Changes on Cash

 

(473

)

 

 

(112

)

 

Net Increase in Cash

 

463

 

 

132

 

Cash at Beginning of Period

 

499

 

 

 

788

 

Cash at End of Period

$

962

 

 

$

920

 

TRANSCAT, INC.

Adjusted EBITDA Reconciliation Table

(Dollars in thousands)

(Unaudited)

 

Fiscal 2021

 

Q1

Q2

Q3

Q4

YTD

Net Income

$

798

 

$

2,024

 

$

2,822

 

+ Interest Expense

 

224

 

 

233

 

 

457

 

+ Other Expense / (Income)

 

19

 

 

84

 

 

103

 

+ Tax Provision

 

(77

)

 

737

 

 

 

 

660

 

Operating Income

$

964

 

$

3,078

 

 

 

$

4,042

 

+ Depreciation & Amortization

 

1,871

 

 

1,864

 

 

 

 

3,735

 

+ Restructuring Expense

 

360

 

 

 

 

 

 

360

 

+ Other (Expense) / Income

 

(19

)

 

(85

)

 

(104

)

+ Noncash Stock Compensation

 

312

 

 

366

 

 

 

 

678

 

Adjusted EBITDA

$

3,488

 

$

5,223

 

 

 

$

8,711

 

 

Segment Breakdown

 

Service Operating Income

$

1,129

 

$

2,977

 

$

4,106

 

+ Depreciation & Amortization

 

1,394

 

 

1,359

 

 

2,753

 

+ Restructuring Expense

 

193

 

 

 

 

 

 

193

 

+ Other (Expense) / Income

 

(15

)

 

(57

)

 

(72

)

+ Noncash Stock Compensation

 

162

 

 

196

 

 

 

 

358

 

Service Adjusted EBITDA

$

2,863

 

$

4,475

 

 

 

$

7,338

 

 

Distribution Operating Income

$

(165

)

$

101

 

$

(64

)

+ Depreciation & Amortization

 

477

 

 

505

 

 

982

 

+ Restructuring Expense

 

167

 

 

 

 

 

167

 

+ Other (Expense) / Income

 

(4

)

 

(28

)

 

(32

)

+ Noncash Stock Compensation

 

150

 

 

170

 

 

 

 

320

 

Distribution Adjusted EBITDA

$

625

 

$

748

 

 

 

$

1,373

 

 

Fiscal 2020

 

Q1

Q2

Q3

Q4

YTD

Net Income

$

1,718

 

$

2,379

 

$

1,477

 

$

2,493

 

$

8,067

 

+ Interest Expense

 

244

 

 

243

 

 

216

 

 

231

 

 

934

 

+ Other Expense / (Income)

 

41

 

 

54

 

 

(22

)

 

113

 

 

186

 

+ Tax Provision

 

(45

)

 

383

 

 

420

 

 

905

 

 

1,663

 

Operating Income

$

1,958

 

$

3,059

 

$

2,091

 

$

3,742

 

$

10,850

 

+ Depreciation & Amortization

 

1,622

 

 

1,681

 

 

1,648

 

 

1,707

 

 

6,658

 

+ Other (Expense) / Income

 

159

 

 

(54

)

 

22

 

 

(112

)

 

15

 

+ Noncash Stock Compensation

 

203

 

 

102

 

 

305

 

 

274

 

 

884

 

Adjusted EBITDA

$

3,942

 

$

4,788

 

$

4,066

 

$

5,611

 

$

18,407

 

 

Segment Breakdown

 

Service Operating Income

$

738

 

$

1,837

 

$

488

 

$

2,609

 

$

5,672

 

+ Depreciation & Amortization

 

1,220

 

 

1,246

 

 

1,206

 

 

1,257

 

 

4,929

 

+ Other (Expense) / Income

 

77

 

 

(38

)

 

13

 

 

(72

)

 

(20

)

+ Noncash Stock Compensation

 

112

 

 

56

 

 

159

 

 

143

 

 

470

 

Service Adjusted EBITDA

$

2,147

 

$

3,101

 

$

1,866

 

$

3,937

 

$

11,051

 

 

Distribution Operating Income

$

1,220

 

$

1,222

 

$

1,603

 

$

1,133

 

$

5,178

 

+ Depreciation & Amortization

 

401

 

 

436

 

 

442

 

 

450

 

 

1,729

 

+ Other (Expense) / Income

 

83

 

 

(17

)

 

9

 

 

(40

)

 

35

 

+ Noncash Stock Compensation

 

91

 

 

46

 

 

146

 

 

131

 

 

414

 

Distribution Adjusted EBITDA

$

1,795

 

$

1,687

 

$

2,200

 

$

1,674

 

$

7,356

 

TRANSCAT, INC.

Additional Information – Business Segment Data

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

Change

SERVICE

FY 2021 Q2

 

FY 2020 Q2

 

$’s

 

%

 

 

 

 

 

 

 

Service Revenue

$

24,554

 

 

$

23,502

 

 

$

1,052

 

4.5

%

Cost of Service Revenue

 

16,654

 

 

 

17,490

 

 

 

(836

)

(4.8

%)

Gross Profit

$

7,900

 

 

$

6,012

 

 

$

1,888

 

31.4

%

Gross Margin

 

32.2

%

 

 

25.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

2,427

 

 

$

2,227

 

 

$

200

 

9.0

%

General and Administrative Expenses

 

2,496

 

 

 

1,948

 

 

 

548

 

28.1

%

Operating Income

$

2,977

 

 

$

1,837

 

 

$

1,140

 

62.1

%

% of Revenue

 

12.1

%

 

 

7.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

DISTRIBUTION

FY 2021 Q2

 

FY 2020 Q2

 

$’s

 

%

Distribution Sales

$

17,053

 

 

$

18,261

 

 

$

(1,208

)

(6.6

%)

Cost of Distribution Sales

 

13,459

 

 

 

13,828

 

 

 

(369

)

(2.7

%)

Gross Profit

$

3,594

 

 

$

4,433

 

 

$

(839

)

(18.9

%)

Gross Margin

 

21.1

%

 

 

24.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

1,864

 

 

$

2,004

 

 

$

(140

)

(7.0

%)

General and Administrative Expenses

 

1,629

 

 

 

1,207

 

 

 

422

 

35.0

%

Operating Income

$

101

 

 

$

1,222

 

 

$

(1,121

)

(91.7

%)

% of Sales

 

0.6

%

 

 

6.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

TOTAL

FY 2021 Q2

 

FY 2020 Q2

 

$’s

 

%

 

 

 

 

 

 

 

 

Total Revenue

$

41,607

 

 

$

41,763

 

 

$

(156

)

(0.4

%)

Total Cost of Revenue

 

30,113

 

 

 

31,318

 

 

 

(1,205

)

(3.8

%)

Gross Profit

$

11,494

 

 

$

10,445

 

 

$

1,049

 

10.0

%

Gross Margin

 

27.6

%

 

 

25.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

4,291

 

 

$

4,231

 

 

$

60

 

1.4

%

General and Administrative Expenses

 

4,125

 

 

 

3,155

 

 

 

970

 

30.7

%

Operating Income

$

3,078

 

 

$

3,059

 

 

$

19

 

0.6

%

% of Revenue

 

7.4

%

 

 

7.3

%

 

 

 

 

TRANSCAT, INC.

Additional Information – Business Segment Data

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

Change

SERVICE

FY 2021 YTD

 

FY 2020 YTD

 

$’s

 

%

 

 

 

 

 

 

 

 

Service Revenue

$

47,521

 

 

$

45,900

 

 

$

1,621

 

 

3.5

%

Cost of Service Revenue

 

33,552

 

 

 

34,516

 

 

 

(964

)

 

(2.8

%)

Gross Profit

$

13,969

 

 

$

11,384

 

 

$

2,585

 

 

22.7

%

Gross Margin

 

29.4

%

 

 

24.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

4,775

 

 

$

4,613

 

 

$

162

 

 

3.5

%

General and Administrative Expenses

 

5,088

 

 

 

4,196

 

 

 

892

 

 

21.3

%

Operating Income

$

4,106

 

 

$

2,575

 

 

$

1,531

 

 

59.5

%

% of Revenue

 

8.6

%

 

 

5.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

DISTRIBUTION

FY 2021 YTD

 

FY 2020 YTD

 

$’s

 

%

Distribution Sales

$

32,990

 

 

$

38,258

 

 

$

(5,268

)

 

(13.8

%)

Cost of Distribution Sales

 

26,056

 

 

 

29,145

 

 

 

(3,089

)

 

(10.6

%)

Gross Profit

$

6,934

 

 

$

9,113

 

 

$

(2,179

)

 

(23.9

%)

Gross Margin

 

21.0

%

 

 

23.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

3,590

 

 

$

4,090

 

 

$

(500

)

 

(12.2

%)

General and Administrative Expenses

 

3,408

 

 

 

2,581

 

 

 

827

 

 

32.0

%

Operating Income

$

(64

)

 

$

2,442

 

 

$

(2,506

)

 

(102.6

%)

% of Sales

 

(0.2

%)

 

 

6.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change

TOTAL

FY 2021 YTD

 

FY 2020 YTD

 

$’s

 

%

 

 

 

 

 

 

 

 

Total Revenue

$

80,511

 

 

$

84,158

 

 

$

(3,647

)

 

(4.3

%)

Total Cost of Revenue

 

59,608

 

 

 

63,661

 

 

 

(4,053

)

 

(6.4

%)

Gross Profit

$

20,903

 

 

$

20,497

 

 

$

406

 

 

2.0

%

Gross Margin

 

26.0

%

 

 

24.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling, Marketing & Warehouse Expenses

$

8,365

 

 

$

8,703

 

 

$

(338

)

 

(3.9

%)

General and Administrative Expenses

 

8,496

 

 

 

6,777

 

 

 

1,719

 

 

25.4

%

Operating Income

$

4,042

 

$

5,017

 

$

(975

)

(19.4

%)

% of Revenue

 

5.0

%

 

 

6.0

%