-- Q4'25 Service Revenue Increased 11% to $52 Million
-- Q4'25 Service Gross Profit Increased 13% on Double-Digit Revenue Growth
-- Q4'25 Service Gross Margins Expanded 50 Basis Points to 36.2% on Improved
Productivity and Shift to Automation
-- Q4'25 Adjusted EBITDA Increased 9% to $12.7 Million Driven by Strength in
the Calibration Business
-- Full Fiscal Year 2025 Revenue Increased 7% to $278 Million with Growth in
Both Segments
-- Management to Host Conference Call Tomorrow at 11:00 a.m. Eastern Time
ROCHESTER, N.Y.--(BUSINESS WIRE)--May 20, 2025--
This press release corrects a clerical error regarding the incremental service segment revenue from acquisitions in the fourth quarter of the fiscal year ended March 29, 2025 ("fiscal 2025") from the prior version of the press release issued on May 19, 2025. Service segment revenue included $6.8 million of incremental revenue from acquisitions for the fourth quarter of fiscal 2025 and $10.4 million of incremental revenue from acquisitions for fiscal 2025, which amount had inadvertently been included in the prior version of the press release.
The updated release reads:
TRANSCAT REPORTS FISCAL FOURTH QUARTER AND FULL YEAR 2025 FINANCIAL RESULTS
-- Q4'25 Service Revenue Increased 11% to $52 Million
-- Q4'25 Service Gross Profit Increased 13% on Double-Digit Revenue Growth
-- Q4'25 Service Gross Margins Expanded 50 Basis Points to 36.2% on Improved
Productivity and Shift to Automation
-- Q4'25 Adjusted EBITDA Increased 9% to $12.7 Million Driven by Strength in
the Calibration Business
-- Full Fiscal Year 2025 Revenue Increased 7% to $278 Million with Growth in
Both Segments
-- Management to Host Conference Call Tomorrow at 11:00 a.m. Eastern Time
Transcat, Inc. (Nasdaq: TRNS) ("Transcat" or the "Company"), a leading provider of accredited calibration services, cost control and optimization services, and distribution and rental of value-added professional grade handheld test, measurement, and control instrumentation, today reported financial results for its fiscal fourth quarter and year ended March 29, 2025.
Management Commentary
"Consolidated revenue grew 9% in the fiscal fourth quarter as strength in the Calibration business drove double-digit Service revenue growth and margin expansion," said Lee D. Rudow, President and CEO of Transcat. "Acquisitions continued to play a key role in Service revenue, including most recently Martin Calibration which we are swiftly integrating into our operations. Driven by consistent demand in the Calibration business, Service organic growth was in the high single-digit range for Q4 and the full year, when normalized for the 53rd week and excluding the Transcat Solutions channel. Revenue growth in both segments combined with continued productivity gains from increased automation and process improvements drove EBITDA growth for Q4 and the full year.
"The macroeconomic backdrop, including tariffs, has become more uncertain since the beginning of the year. However, our business model is resilient. The regulatory standards for manufacturers imposed by entities including the FDA, FAA and Department of Defense fundamentally drive the opportunity for ongoing organic Service growth of our differentiated calibration services. From a tariff standpoint, higher levels of US manufacturing overtime will provide increased opportunity for Transcat. Our dedicated team has a proven track record of delivering profitable revenue growth over the past decade and a half. We believe our team in combination with the recurring revenue inherent in the industries we serve, diversified portfolio with a Fortune 500 client base, and strong balance sheet will continue to differentiate Transcat during Fiscal 2026 and beyond.
"While we would expect some downward pressure in revenue in a highly volatile economic backdrop, generally our business model holds up well and will return to high single-digit Service organic revenue growth as macro-trends normalize. Inherent operating leverage in our Service model, along with automation of our calibration processes and focus on productivity, remain key enablers of Service margin expansion. We will continue to leverage our acquisition expertise and are excited with the current flow of strategic opportunities. We believe strong execution, paired with strategic acquisitions, positions us well to drive long-term shareholder value."
Fourth Quarter Fiscal 2025 Review
(Results are compared with the fourth quarter of the fiscal year ended March 30, 2024 ("fiscal 2024"))
($ in thousands) Change
---------------
FY25 Q4 FY24 Q4 $'s %
------- ------- ------- -----
Service Revenue $52,010 $46,732 $ 5,278 11.3%
Distribution
Revenue 25,124 24,181 943 3.9%
------ ------ ------ -----
Revenue $77,134 $70,913 $ 6,221 8.8%
Gross Profit $25,913 $24,035 $ 1,878 7.8%
Gross Margin 33.6% 33.9%
Operating Income $ 6,940 $ 9,204 $(2,264) (24.6)%
Operating
Margin 9.0% 13.0%
Net Income $ 4,464 $ 6,890 $(2,426) (35.2)%
Net Margin 5.8% 9.7%
Adjusted EBITDA* $12,745 $11,682 $ 1,063 9.1%
Adjusted
EBITDA*
Margin 16.5% 16.5%
Diluted EPS $ 0.48 $ 0.77 $ (0.29) (37.6)%
Adjusted Diluted
EPS* $ 0.64 $ 0.66 $ (0.02) (3.1)%
*See Note 1 on page 5 for a description of these non-GAAP financial measures
and pages 10, 11 and 12 for the reconciliation tables.
Consolidated revenue was $77.1 million, an increase of 8.8%, even though fiscal 2025 had 13 weeks compared to 14 weeks in fiscal 2024. Consolidated gross profit was $25.9 million, an increase of $1.9 million, or 7.8%, while gross margin decreased by 30 basis points due to lower distribution gross margin.
Operating expenses were $19.0 million, an increase of $4.1 million, or 27.9%, driven by incremental expenses from acquired businesses (including stock-based compensation expense), increased intangibles amortization expense, higher sales-based incentives, and a reversal of the non-cash charge related to the amended NEXA Earn-Out agreement in fiscal 2024.
Adjusted EBITDA was $12.7 million, which represented an increase of $1.1 million or 9.1%. Net income per diluted share of $0.48 was down from $0.77 and adjusted diluted earnings per share decreased to $0.64 versus $0.66 last year, which includes the non-cash reversal of $2.4 million for the amended NEXA Earn-Out agreement.
Service Segment Fiscal 2025 Fourth Quarter Results
Represents the accredited calibration, repair, inspection and laboratory instrument services business (67.4% of total revenue for the fourth quarter of fiscal 2025).
($ in thousand) Change
---------------
FY25 Q4 FY24 Q4 $'s %
------- ------- ------- -----
Service Segment
Revenue $52,010 $46,732 $ 5,278 11.3%
Gross Profit $18,828 $16,704 $ 2,124 12.7%
Gross Margin 36.2% 35.7%
Operating Income $ 5,976 $ 8,144 $(2,168) (26.6)%
Operating
Margin 11.5% 17.4%
Adjusted EBITDA* $10,185 $ 8,741 $ 1,444 16.5%
Adjusted
EBITDA*
Margin 19.6% 18.7%
*See Note 1 on page 5 for a description of this non-GAAP financial measure and
pages 10 and 11 for the Adjusted EBITDA Reconciliation tables.
Service segment revenue was $52.0 million, an increase of $5.3 million or 11.3% and included $6.8 million of incremental revenue from acquisitions. Organic revenue declined 2% because of one less week in fiscal 2025. When normalized for the 53rd week, Service organic growth was in the low-to-mid single-digit range, consistent with previous guidance. The segment gross margin increased 50 basis points from the prior year, primarily due to continued productivity improvements.
Distribution Segment Fiscal 2025 Fourth Quarter Results
Represents the sale and rental of new and used professional grade handheld test, measurement and control instrumentation (32.6% of total revenue for the fourth quarter of fiscal 2025).
($ in thousands) Change
-------------
FY25 Q4 FY24 Q4 $'s %
------- ------- ----- -----
Distribution
Segment Revenue $25,124 $24,181 $ 943 3.9%
Gross Profit $ 7,085 $ 7,331 $(246) (3.4)%
Gross Margin 28.2% 30.3%
Operating Income $ 964 $ 1,060 $ (96) (9.1)%
Operating
Margin 3.8% 4.4%
Adjusted EBITDA* $ 2,560 $ 2,941 $(381) (13.0)%
Adjusted
EBITDA*
Margin 10.2% 12.2%
*See Note 1 on page 5 for a description of this non-GAAP financial measure and
pages 10 and 11 for the Adjusted EBITDA Reconciliation tables.
Distribution sales were $25.1 million, an increase of 3.9% on improved rental sales including acquisitions. Distribution segment gross margin was 28.2%, a decrease of 210 basis points due to the sales mix of products sold.
Full-Year Fiscal 2025 Review
(Results are compared with full-year fiscal 2024)
($ in thousands) Change
--------------
FY 2025 FY 2024 $'s %
-------- -------- ------- ----
Service Revenue 181,428 169,525 $11,903 7.0%
Distribution
Revenue 96,993 89,956 7,037 7.8%
------- ------- ------ ----
Revenue $278,421 $259,481 $18,940 7.3%
Gross Profit $ 89,453 $ 83,806 $ 5,647 6.7%
Gross Margin 32.1% 32.3%
Operating Income $ 17,874 $ 19,781 $(1,907) (9.6)%
Operating
Margin 6.4% 7.6%
Net Income $ 14,515 $ 13,647 $ 868 6.4%
Net Margin 5.2% 5.3%
Adjusted EBITDA* $ 39,732 $ 38,613 $ 1,119 2.9%
Adjusted
EBITDA*
Margin 14.3% 14.9%
Diluted EPS $ 1.57 $ 1.63 $ (0.06) (3.8)%
Adjusted Diluted
EPS* $ 2.29 $ 2.36 $ (0.07) (3.1)%
*See Note 1 on page 5 for a description of these non-GAAP financial measures
and pages 10, 11 and 12 for the reconciliation tables.
Total revenue was $278.4 million, an increase of $18.9 million or 7.3%. Consolidated gross profit was $89.5 million, up $5.6 million, or 6.7%, and gross margin was 32.1%, a decrease of 20 basis points.
Consolidated operating expenses were $71.6 million, an increase of $7.6 million, or 11.8%, driven by incremental expenses from acquired businesses (including stock-based compensation expense), increased intangibles amortization expense, and investments in technology and our employee base to support future growth. As a result, consolidated operating income was $17.9 million compared with $19.8 million in last fiscal year's period, an decrease of 9.6%.
Adjusted EBITDA was $39.7 million which represented an increase of $1.1 million or 2.9%. Net income per diluted share decreased to $1.57 from $1.63 and adjusted diluted earnings per share was $2.29 versus $2.36 last year.
Balance Sheet and Cash Flow Overview
On March 29, 2025, the Company had $1.5 million in cash and cash equivalents on hand and $49.1 million available for borrowing under its secured revolving credit facility. Total debt was $32.7 million versus $4.2 million on March 30, 2024. The Company's leverage ratio, as defined in the credit agreement, was 0.78 on March 29, 2025, compared with 0.10 on March 30, 2024.
Tom Barbato, Transcat's Chief Financial Officer, added, "Service gross margins expanded 50bps on double-digit revenue growth in Q4 which further demonstrates our ability to leverage higher levels of Technician productivity and our differentiated value proposition. Q4 EBITDA grew 9% as both segments experienced revenue growth. Operating free cash flow expanded by $6.5 million in fiscal 2025 to $25.8 million. Our balance sheet remains very strong with a 0.78x leverage ratio and $49 million available from our credit facility at quarter-end. Given our financial strength and resilient business model, we are well-positioned for future growth."
Fiscal Fourth Quarter and Full Year 2025 Results Webcast and Conference Call
Transcat will host a conference call and webcast on Tuesday, May 20, 2025, at 11:00 a.m. ET. Management will review the financial and operating results for the fourth quarter and full fiscal year, 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 can be viewed during the webcast or will be available at www.transcat.com/investor-relations.
To access the call, please use the following information:
Date: Tuesday, May 20, 2025
Time: 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time)
Dial-in: 1-877-407-4018
International Dial-in: 1-201-689-8471
Conference Code: 13753614
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=17179
99&tp_key=40fd39b758
A telephonic replay will be available approximately three hours after the call and will remain available through Tuesday, May 27, 2025. To listen to the archived call, dial 1-844-512-2921 from the U.S., or 1-412-317-6671 from international locations, and enter conference ID number 13753614, The replay can also be viewed through the webcast link above and the presentation utilized during the call will be available at www.transcat.com/investor-relations, where a transcript will also 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, acquisition related transaction expenses, non-cash loss on sale of building and restructuring expense), 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, but 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 pages 10 and 11 for the Adjusted EBITDA Reconciliation tables.
In addition to reporting Diluted Earnings Per Share, a GAAP measure, we present Adjusted Diluted Earnings Per Share (net income plus acquisition related amortization expense, acquisition related transaction expenses, acquisition related stock-based compensation, acquisition amortization of backlog and restructuring expense; divided by the average diluted shares outstanding during the period), which is a non-GAAP measure. Our management believes Adjusted Diluted Earnings Per Share is an important measure of our operating performance because it provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted Diluted Earnings Per Share 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 or alternative for the GAAP measure of Diluted Earnings Per Share and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. Adjusted Diluted Earnings Per Share, 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 page 12 for the Adjusted Diluted EPS Reconciliation table.
ABOUT TRANSCAT
Transcat, Inc. is a leading provider of accredited calibration, reliability, maintenance optimization, quality and compliance, validation, Computerized Maintenance Management System (CMMS), and pipette 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 Calibration Service Centers strategically located across the United States, Puerto Rico, Canada, and Ireland. In addition, Transcat operates calibration labs in 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 its strong brand and unique value proposition that includes its comprehensive instrument service capabilities, Cost, Control and Optimizations services, 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 relate to expectations, estimates, beliefs, assumptions and predictions of future events and are identified by words such as "aim," "anticipates," "believes," "can," "could," "designed," "estimates," "expects," "focus," "goal," "intends," "may," "plan," "outlook," "potential," "seek," "strategy," "strive," "target," "will," "would," 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 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) (Unaudited)
Fourth Quarter
Ended Fiscal Year Ended
----------------- -------------------
March March March March
29, 30, 29, 30,
2025 2024 2025 2024
------- -------- -------- --------
Service Revenue $52,010 $ 46,732 $181,428 $169,525
Distribution
Sales 25,124 24,181 96,993 89,956
------ ------- ------- -------
Total Revenue 77,134 70,913 278,421 259,481
------ ------- ------- -------
Cost of Service
Revenue 33,182 30,028 120,769 112,272
Cost of
Distribution
Sales 18,039 16,850 68,199 63,403
------ ------- ------- -------
Total Cost of
Revenue 51,221 46,878 188,968 175,675
------ ------- ------- -------
Gross Profit 25,913 24,035 89,453 83,806
------ ------- ------- -------
Selling,
Marketing and
Warehouse
Expenses 9,240 7,866 33,341 28,710
General and
Administrative
Expenses 9,733 6,965 38,238 35,315
------ ------- ------- -------
Total
Operating
Expenses 18,973 14,831 71,579 64,025
------ ------- ------- -------
Operating Income 6,940 9,204 17,874 19,781
------ ------- ------- -------
Interest and
Other Expense,
net 684 (400) (452) 1,342
------ ------- ------- -------
Income Before
Income Taxes 6,256 9,604 18,326 18,439
Provision for
Income Taxes 1,792 2,714 3,811 4,792
------ ------- ------- -------
Net Income $ 4,464 $ 6,890 $ 14,515 $ 13,647
====== ======= ======= =======
Basic Earnings
Per Share $ 0.48 $ 0.78 $ 1.58 $ 1.66
Average Shares
Outstanding 9,230 8,832 9,185 8,239
Diluted Earnings
Per Share $ 0.48 $ 0.77 $ 1.57 $ 1.63
Average Shares
Outstanding 9,287 8,972 9,254 8,352
TRANSCAT, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
March 29, March 30,
2025 2024
----------- -----------
ASSETS
Current Assets:
Cash and Cash Equivalents $ 1,517 $ 19,646
Marketable Securities - 15,533
Accounts Receivable, less allowance for
credit losses of $659 and $544 as of
March 29, 2025, and March 30, 2024,
respectively 55,941 47,779
Other Receivables 373 506
Inventory, net 14,483 17,418
Prepaid Expenses and Other Current
Assets 5,695 4,276
------- -------
Total Current Assets 78,009 105,158
Property and Equipment, net 50,024 38,944
Goodwill 176,928 105,585
Intangible Assets, net 54,777 19,987
Right to Use Assets, net 24,345 16,823
Other Assets 1,159 1,055
------- -------
Total Assets $ 385,242 $ 287,552
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $ 16,755 $ 11,495
Accrued Compensation and Other Current
Liabilities 15,466 16,739
Income Taxes Payable - 2,926
Current Portion of Long-Term Debt 1,816 2,339
------- -------
Total Current Liabilities 34,037 33,499
Long-Term Debt 30,892 1,817
Deferred Tax Liabilities, net 9,286 9,291
Lease Liabilities 21,395 14,873
Other Liabilities 2,752 2,903
------- -------
Total Liabilities 98,362 62,383
------- -------
Shareholders' Equity:
Common Stock, par value $0.50 per
share, 30,000,000 shares authorized;
9,315,840 and 8,839,299 shares issued
and outstanding as of March 29, 2025,
and March 30, 2024, respectively 4,658 4,420
Capital in Excess of Par Value 191,167 141,624
Accumulated Other Comprehensive Loss (1,469) (949)
Retained Earnings 92,524 80,074
------- -------
Total Shareholders' Equity 286,880 225,169
------- -------
Total Liabilities and Shareholders'
Equity $ 385,242 $ 287,552
======= =======
TRANSCAT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Fiscal Year Ended
-------------------------
March 29, March 30,
2025 2024
----------- -----------
Cash Flows from Operating Activities:
Net Income $ 14,515 $ 13,647
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Net (Gain) Loss on Disposal of
Property and Equipment (31) 53
Deferred Income Taxes (5) (1,597)
Depreciation and Amortization 18,567 13,544
Gain on Sale of Assets (855) -
Provision for Accounts Receivable
and Inventory Reserves 336 406
Stock-Based Compensation Expense 3,248 4,512
Changes in Assets and Liabilities, net
of acquisitions:
Accounts Receivable and Other
Receivables (1,292) (1,259)
Inventory 4,393 2,318
Prepaid Expenses and Other Current
Assets (992) (299)
Accounts Payable 4,940 (5,005)
Accrued Compensation and Other Current
Liabilities (914) 3,397
Income Taxes Payable (2,925) 2,899
------- -------
Net Cash Provided by Operating
Activities 38,985 32,616
------- -------
Cash Flows from Investing Activities:
Purchases of Property and Equipment (13,197) (13,280)
Proceeds from Sale of Property and
Equipment - -
Business Acquisitions, net of cash
acquired (87,436) (12,859)
Proceeds from Sale of Assets 1,100 -
Sales (Purchases) of Marketable
Securities 15,533 (15,533)
------- -------
Net Cash Used in Investing Activities (84,000) (41,672)
Cash Flows from Financing Activities:
Proceeds from (repayments of) Revolving
Credit Facility, net 30,891 (42,713)
Repayments of Term Loan (2,338) (2,248)
Issuance of Common Stock, net of direct
costs 1,874 77,266
Repurchase of Common Stock (3,565) (4,906)
------- -------
Net Cash Provided by Financing
Activities 26,862 27,399
------- -------
Effect of Exchange Rate Changes on Cash
and Cash Equivalents 24 (228)
------- -------
Net (Decrease) Increase in Cash and Cash
Equivalents (18,129) 18,115
Cash and Cash Equivalents at Beginning of
Period 19,646 1,531
------- -------
Cash and Cash Equivalents at End of Period $ 1,517 $ 19,646
======= =======
TRANSCAT, INC.
Adjusted EBITDA Reconciliation Table
(In thousands)
(Unaudited)
Fiscal 2025
----------------------------------------------
Q1 Q2 Q3 Q4 YTD
------- ------ ------- ------- -------
Net Income $ 4,408 $3,286 $ 2,357 $ 4,464 $14,515
+ Interest
Expense (260) (210) (20) 463 (27)
+ Other Expense
/ (Income) 131 232 (1,009) 221 (425)
+ Tax Provision 820 427 772 1,792 3,811
------ ----- ------ ------ ------
Operating Income $ 5,099 $3,735 $ 2,100 $ 6,940 $17,874
+ Depreciation
&
Amortization 4,113 4,399 4,430 5,625 18,567
+ Transaction
Expense 434 32 778 33 1,277
+ Acquisition
Contingent
Consideration
Adjustment - - - (835) (835)
+ Other
(Expense) /
Income (131) (231) 154 (191) (399)
+ Noncash Stock
Compensation 697 926 452 1,173 3,248
------ ----- ------ ------ ------
Adjusted EBITDA $10,212 $8,861 $ 7,914 $12,745 $39,732
Segment Breakdown
-----------------
Service Operating
Income $ 4,091 $3,704 $ 1,412 $ 5,976 $15,183
+ Depreciation
&
Amortization 2,402 2,455 2,451 3,774 11,082
+ Transaction
Expense 146 - 778 11 935
+ Acquisition
Contingent
Consideration
Adjustment - - - (256) (256)
+ Other
(Expense) /
Income (96) (164) 94 (133) (299)
+ Noncash Stock
Compensation 421 629 186 813 2,049
------ ----- ------ ------ ------
Service Adjusted
EBITDA $ 6,964 $6,624 $ 4,921 $10,185 $28,694
Distribution
Operating Income $ 1,008 $ 31 $ 688 $ 964 $ 2,691
+ Depreciation
&
Amortization 1,711 1,944 1,979 1,851 7,485
+ Transaction
Expense 288 32 - 22 342
+ Acquisition
Contingent
Consideration
Adjustment - - - $(579.SI)$ (579)
+ Other
(Expense) /
Income (35) (67) 60 (58) (100)
+ Noncash Stock
Compensation 276 297 266 360 1,199
------ ----- ------ ------ ------
Distribution
Adjusted EBITDA $ 3,248 $2,237 $ 2,993 $ 2,560 $11,038
TRANSCAT, INC.
Adjusted EBITDA Reconciliation Table
(In thousands)
(Unaudited)
Fiscal 2024
--------------------------------------------
Q1 Q2 Q3 Q4 YTD
------ ------ ------ ------- -------
Net Income $2,949 $ 460 $3,348 $ 6,890 $13,647
+ Interest
Expense 814 890 (266) (411) 1,027
+ Other
Expense /
(Income) 64 (49) 289 11 315
+ Tax
Provision 813 342 923 2,714 4,792
----- ----- ----- ------ ------
Operating Income $4,640 $1,643 $4,294 $ 9,204 $19,781
+ Depreciation
&
Amortization 2,790 3,269 3,783 3,635 13,477
+ Acquisition
Earn-Out
Adjustment 185 328 78 37 628
+ Transaction
Expense - 2,800 87 (2,357) 530
+ Other
(Expense) /
Income (64) 49 (289) (11) (315)
+ Noncash
Stock
Compensation 930 1,241 1,167 1,174 4,512
----- ----- ----- ------ ------
Adjusted EBITDA $8,481 $9,330 $9,120 $11,682 $38,613
Segment
Breakdown
----------------
Service Operating
Income $3,192 $ 742 $2,966 $ 8,144 $15,044
+ Depreciation
&
Amortization 2,226 2,325 2,362 2,280 9,193
+ Transaction
Expense 185 76 30 (44) 247
+ Acquisition
Earn-Out
Adjustment - 2,800 87 (2,357) 530
+ Other
(Expense) /
Income (47) 29 (203) (18) (239)
+ Noncash
Stock
Compensation 676 826 737 736 2,975
----- ----- ----- ------ ------
Service Adjusted
EBITDA $6,232 $6,798 $5,979 $ 8,741 $27,750
Distribution
Operating
Income $1,448 $ 901 $1,328 $ 1,060 $ 4,737
+ Depreciation
&
Amortization 564 944 1,421 1,355 4,284
+ Transaction
Expense - 252 48 81 381
+ Other
(Expense) /
Income (17) 20 (86) 7 (76)
+ Noncash
Stock
Compensation 254 415 430 438 1,537
----- ----- ----- ------ ------
Distribution
Adjusted EBITDA $2,249 $2,532 $3,141 $ 2,941 $10,863
TRANSCAT, INC.
Adjusted Diluted EPS Reconciliation Table
(In Thousands, Except Per Share Amounts)
(Unaudited)
Fiscal 2025
-----------------------------------------------
Q1 Q2 Q3 Q4 YTD
------- ------- ------- -------- ----------
Net Income $4,408 $3,286 $2,357 $ 4,464 $14,515
+ Amortization
of Intangible
Assets 1,749 1,888 1,879 2,906 8,422
+ Acquisition
Amortization
of Backlog 24 4 - - 28
+ Acquisition
Deal Costs 668 163 517 175 1,523
+ Income Tax
Effect at
25% (610) (514) (599) (770) (2,493)
+ Acquisition
Contingent
Comp
Adjustment - - - (836) (836)
----- ----- ----- ------ ------
Adjusted Net
Income $6,239 $4,827 $4,154 $ 5,939 $21,159
===== ===== ===== ====== ======
Average Diluted
Shares
Outstanding 9,196 9,282 9,326 9,287 9,254
Diluted Earnings
Per Share $ 0.48 $ 0.35 $ 0.25 $ 0.48 $ 1.57
Adjusted Diluted
Earnings Per
Share $ 0.68 $ 0.52 $ 0.45 $ 0.64 $ 2.29
Fiscal 2024
-----------------------------------------------
Q1 Q2 Q3 Q4 YTD
------- ------- ------- -------- ----------
Net Income $2,949 $ 460 $3,348 $ 6,890 $13,647
+ Amortization
of Intangible
Assets 1,093 1,416 1,674 1,447 5,630
+ Acquisition
Amortization
of Backlog - 19 24 24 67
+ Acquisition
Deal Costs 367 602 343 339 1,651
+ Income Tax
Effect at
25% (365) (509) $(532.SI)$ (431) (1,837)
+ Acquisition
Earn-Out
Adjustment - 2,800 87 (2,358) 529
----- ----- ----- ------ ------
Adjusted Net
Income $4,044 $4,788 $4,944 $ 5,911 $19,687
===== ===== ===== ====== ======
Average Diluted
Shares
Outstanding 7,762 7,948 8,752 8,972 8,352
Diluted Earnings
Per Share $ 0.38 $ 0.06 $ 0.38 $ 0.77 $ 1.63
Adjusted Diluted
Earnings Per
Share $ 0.52 $ 0.60 $ 0.56 $ 0.66 $ 2.36
TRANSCAT, INC.
Additional Information - Business Segment Data
(Dollars in thousands)
(Unaudited)
Change
---------------
FY 2025 FY 2024
SERVICE Q4 Q4 $'s %
------- ------- ------- -----
Service Revenue $52,010 $46,732 $ 5,278 11.3%
Cost of Revenue 33,182 30,028 3,154 10.5%
------ ------ ------ -----
Gross Profit $18,828 $16,704 $ 2,124 12.7%
Gross Margin 36.2% 35.7%
Selling,
Marketing &
Warehouse
Expenses $ 5,743 $ 4,490 $ 1,253 27.9%
General and
Administrative
Expenses 7,109 4,070 3,039 74.7%
------ ------ ------ -----
Operating Income $ 5,976 $ 8,144 $(2,168) (26.6)%
% of Revenue 11.5% 17.4%
Change
-------------
FY 2025 FY 2024
DISTRIBUTION Q4 Q4 $'s %
------- ------- ------ ----
Distribution
Revenue $25,124 $24,181 $ 943 3.9%
Cost of Revenue 18,039 16,850 1,189 7.1%
------ ------ ----- ----
Gross Profit $ 7,085 $ 7,331 $ (246) (3.4)%
Gross Margin 28.2% 30.3%
Selling,
Marketing &
Warehouse
Expenses $ 3,497 $ 3,376 $ 121 3.6%
General and
Administrative
Expenses 2,624 2,895 (271) (9.4)%
------ ------ ----- ----
Operating Income $ 964 $ 1,060 $ (96) (9.1)%
% of Sales 3.8% 4.4%
Change
---------------
FY 2025 FY 2024
TOTAL Q4 Q4 $'s %
------- ------- ------- -----
Total Revenue $77,134 $70,913 $ 6,221 8.8%
Total Cost of
Revenue 51,221 46,878 4,343 9.3%
------ ------ ------ -----
Gross Profit $25,913 $24,035 $ 1,878 7.8%
Gross Margin 33.6% 33.9%
Selling,
Marketing &
Warehouse
Expenses $ 9,240 $ 7,866 $ 1,374 17.5%
General and
Administrative
Expenses 9,733 6,965 2,768 39.7%
------ ------ ------ -----
Operating Income $ 6,940 $ 9,204 $(2,264) (24.6)%
% of Revenue 9.0% 13.0%
TRANSCAT, INC.
Additional Information - Business Segment Data
(Dollars in thousands)
(Unaudited)
Change
-------------
FY 2025 FY 2024
SERVICE YTD YTD $'s %
-------- -------- ------- ----
Service Revenue $181,428 $169,525 $11,903 7.0%
Cost of Revenue 120,769 112,272 8,497 7.6%
------- ------- ------ ----
Gross Profit $ 60,659 $ 57,253 $ 3,406 5.9%
Gross Margin 33.4% 33.8%
Selling,
Marketing &
Warehouse
Expenses $ 19,013 $ 16,942 $ 2,071 12.2%
General and
Administrative
Expenses 26,466 25,268 1,198 4.7%
------- ------- ------ ----
Operating Income $ 15,180 $ 15,043 $ 137 0.9%
% of Revenue 8.4% 8.9%
Change
---------------
FY 2025 FY 2024
DISTRIBUTION YTD YTD $'s %
------- ------- ------- -----
Distribution
Revenue $96,993 $89,956 $ 7,037 7.8%
Cost of Revenue 68,199 63,403 4,796 7.6%
------ ------ ------ -----
Gross Profit $28,794 $26,553 $ 2,241 8.4%
Gross Margin 29.7% 29.5%
Selling,
Marketing &
Warehouse
Expenses $14,328 $11,769 $ 2,559 21.7%
General and
Administrative
Expenses 11,772 10,046 1,726 17.2%
------ ------ ------ -----
Operating Income $ 2,694 $ 4,738 $(2,044) (43.1)%
% of Sales 2.8% 5.3%
Change
--------------
FY 2025 FY 2024
TOTAL YTD YTD $'s %
-------- -------- ------- ----
Total Revenue $278,421 $259,481 $18,940 7.3%
Total Cost of
Revenue 188,968 175,675 13,293 7.6%
------- ------- ------ ----
Gross Profit $ 89,453 $ 83,806 $ 5,647 6.7%
Gross Margin 32.1% 32.3%
Selling,
Marketing &
Warehouse
Expenses $ 33,341 $ 28,711 $ 4,630 16.1%
General and
Administrative
Expenses 38,238 35,314 2,924 8.3%
------- ------- ------ ----
Operating Income $ 17,874 $ 19,781 $(1,907) (9.6)%
% of Revenue 6.4% 7.6%
View source version on businesswire.com: https://www.businesswire.com/news/home/20250519741764/en/
CONTACT: Investor Relations
Chris Tyson
Executive Vice President
MZ Group - MZ North America
Phone: (949) 491-8235
TRNS@mzgroup.us
www.mzgroup.us
(END) Dow Jones Newswires
May 20, 2025 11:43 ET (15:43 GMT)
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