Market Overview

Transcat Reports Operating Income Up 14% on Record Revenue for Fiscal 2018

Share:
  • Record fourth quarter and full fiscal year revenue of $42.5 million
    and $155.1 million, respectively
  • Consolidated operating margin expanded 160 basis points to 8.3% in
    the fourth quarter and 30 basis points to 5.8% for the full fiscal year
  • Achieved record net income of $5.9 million or $0.81 per diluted
    share in fiscal 2018
  • Reduced debt $4.5 million to $22.9 million at year-end as a result
    of strong operations and cash flows

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 fourth quarter and fiscal year ended March 31,
2018 ("fiscal 2018"). Transcat operates on a 52/53 week fiscal year,
ending the last Saturday in March. In a 52-week fiscal year, each of the
four quarters is a 13-week period. In a 53-week fiscal year (which
occurs once every five or six years), the last quarter is a 14-week
period. Fiscal 2018 consisted of 53 weeks while the fiscal year ended
March 25, 2017 ("fiscal 2017") consisted of 52 weeks.

"Our fiscal 2018 results demonstrated solid performance in both of our
segments as we achieved new records with more than $155 million in
revenue and $5.9 million in net income. We are particularly pleased that
we now have had 36 straight quarters, or nine years, of
quarter-over-quarter growth in our Service segment revenue," commented
Lee D. Rudow, President and CEO. "We saw healthy demand in both
segments. Strong execution in our Service segment helped us continue to
take market share, especially in the targeted life science space, while
our Distribution segment had growth across all channels."

"While we didn't see the desired improvement in reported Service gross
margin, key Service performance indicators continued to move in the
right direction. On a consolidated basis, we generated higher operating
income, operating margin and strong cash flow, reduced debt and funded
longer-term productivity enhancement investments."

Fourth Quarter Fiscal 2018 Review (Results compared with the
fourth quarter of fiscal 2017)

($ in thousands)                 Change
FY18 Q4 FY17 Q4 $'s       %
Service Revenue $ 21,955 $ 19,526 $ 2,429 12.4%
Distribution Sales   20,497   18,927   1,570 8.3%
Revenue $ 42,452 $ 38,453 $ 3,999 10.4%
Gross Profit $ 10,895 $ 9,782 $ 1,113 11.4%
Gross Margin 25.7% 25.4%
 
Operating Income $ 3,503 $ 2,565 $ 938 36.6%
Operating Margin 8.3% 6.7%
 
Net Income $ 2,454 $ 1,429 $ 1,025 71.7%
Net Margin 5.8% 3.7%
 
Adjusted EBITDA* $ 5,310 $ 4,214 $ 1,096 26.0%
Adjusted EBITDA* Margin 12.5% 11.0%

*See Note 1 on page 5 for a description of this non-GAAP financial
measure and page 10 for the Adjusted EBITDA Reconciliation table.

Transcat achieved record quarterly revenue of $42.5 million, which
includes the 53rd week in fiscal 2018. Consolidated gross
profit improved $1.1 million and gross margin increased 30 basis points.
Total operating expenses were up only $0.2 million, or 2.4%. As a
result, operating income increased nearly 37%, and operating margin
expanded 160 basis points to 8.3%.

On December 22, 2017, the Tax Cuts and Jobs Act (H.R. 1) (the "Tax Act")
was signed into law. The Tax Act includes numerous changes in existing
tax law, including a permanent reduction in the federal corporate income
tax rate from 35% to 21%. The Tax Act contains other provisions that are
not expected to materially impact the Company. As a result of the
reduction in the federal income tax rates, the effective tax rate for
the fourth quarter of fiscal 2018 was 25.2% compared with 39.0% in the
prior-year period. Fourth quarter diluted earnings per share increased
$0.13 to $0.33, of which $0.06 of the increase was due to the Tax Act.

Service segment continues to deliver organic growth

Represents the accredited calibration, repair, inspection and
laboratory instrument services business (52% of total revenue for the
fourth quarter of fiscal 2018).

($ in thousands)                 Change
FY18 Q4 FY17 Q4 $'s     %
 
Service Segment Revenue $ 21,955 $ 19,526 $ 2,429 12.4%
Gross Profit $ 6,267 $ 5,864 $ 403 6.9%
Gross Margin 28.5% 30.0%
 
Operating Income $ 2,420 $ 1,993 $ 427 21.4%
Operating Margin 11.0% 10.2%
 
Adjusted EBITDA* $ 3,637 $ 3,170 $ 467 14.7%
Adjusted EBITDA* Margin 16.6% 16.2%

*See Note 1 on page 5 for a description of this non-GAAP financial
measure and page 10 for the Adjusted EBITDA Reconciliation table.

Service revenue increased on all organic growth, and was comprised of
new business from the life science market and growth in general
industrial manufacturing, which includes both the defense and aerospace
market. When normalizing for the extra days from fiscal 2018's 53 weeks,
the Company estimates that its fourth quarter Service revenue growth was
approximately 6%.

The segment gross margin was negatively impacted by the mix of services
performed during the quarter and some lab closures due to March snow
storms in the Northeast. Segment operating expenses were down as a
percent of segment revenue, which helped drive an 80 basis point
improvement in operating margin.

Strong sales and margins throughout the Distribution segment

Represents the sale and rental of new and used professional grade
handheld test, measurement and control instrumentation (48% of total
revenue for the fourth quarter of fiscal 2018).

($ in thousands)                 Change
FY18 Q4 FY17 Q4 $'s       %
 
Distribution Segment Sales $ 20,497 $ 18,927 $ 1,570 8.3%
Gross Profit $ 4,628 $ 3,918 $ 710 18.1%
Gross Margin 22.6% 20.7%
 
Operating Income $ 1,083 $ 572 $ 511 89.3%
Operating Margin 5.3% 3.0%
 
Adjusted EBITDA* $ 1,673 $ 1,044 $ 629 60.2%
Adjusted EBITDA* Margin 8.2% 5.5%

*See Note 1 on page 5 for a description of this non-GAAP financial
measure and page 10 for the Adjusted EBITDA Reconciliation table.

The Distribution sales increase reflects higher rental revenue, which
was up 67% to $1.0 million, and the additional week in the fourth
quarter of fiscal 2018. The segment gross profit improved due to a mix
of higher margin new product sales and increased rentals which have a
higher margin profile. Segment operating expenses were down as a percent
of segment sales, which combined with gross profit expansion helped
drive a 230 basis point improvement in operating margin.

Full-Year Fiscal 2018 Review (Results compared with fiscal
2017)

($ in thousands)                 Change
FY18 FY17 $'s       %
Service Revenue $ 77,445 $ 71,103 $ 6,342 8.9%
Distribution Sales   77,696   72,795   4,901 6.7%
Revenue $ 155,141 $ 143,898 $ 11,243 7.8%
Gross Profit $ 37,441 $ 34,970 $ 2,471 7.1%
Gross Margin 24.1% 24.3%
 
Operating Income $ 9,026 $ 7,934 $ 1,092 13.8%
Operating Margin 5.8% 5.5%
 
Net Income $ 5,922 $ 4,522 $ 1,400 31.0%
Net Margin 3.8% 3.1%
 
Adjusted EBITDA* $ 16,368 $ 14,520 $ 1,848 12.7%
Adjusted EBITDA* Margin 10.6% 10.1%

*See Note 1 on page 5 for a description of this non-GAAP financial
measure and page 10 for the Adjusted EBITDA Reconciliation table.

Total revenue increased to a record $155.1 million on all organic
growth. When normalizing for the extra days from fiscal 2018's 53 weeks,
the Company estimates that its full year Service revenue growth was
approximately 7%. The Distribution sales increase reflected $1.2 million
more in rental revenue and increased demand from industrial customers.

As a percentage of total revenue, consolidated operating expenses were
18.3%, down 50 basis points. As a result, operating income increased
$1.1 million, or 13.8%, to $9.0 million, or 5.8% of revenue.

Transcat achieved record net income of $5.9 million and diluted earnings
per share of $0.81, up $0.17, or 26.6%. Adjusted EBITDA improved 12.7%
to $16.4 million and as a percent of total revenue was up 50 basis
points to 10.6%. See Note 1 on page 5 for a description of this
non-GAAP financial measure and page 10 for the Adjusted EBITDA
Reconciliation table.

Balance Sheet and Cash Flow Overview

Net cash provided by operating activities was $9.9 million, up $2.3
million, or 30.9%. Capital expenditures were $5.9 million for fiscal
2018. Investments were primarily for assets for customer-driven
expansion of Service segment capabilities, including mobile calibration
fleet investments and RF/electronics assets for the aerospace/defense
and life science markets, and purchases of rental business assets.

At March 31, 2018, the Company had total debt of $22.9 million, with
$21.3 million available under its secured revolving credit facility.
Total debt at year-end was down $4.5 million from the prior year end.
The Company's leverage ratio, as defined in its credit agreement, was
1.40 at March 31, 2018, compared with 1.88 at fiscal 2017 year-end.

Outlook

Mr. Rudow concluded, "We are pleased with the results we delivered for
fiscal 2018. We continue to expect mid to high single-digit organic
growth in our Service segment and believe we will continue to take
market share, particularly within the life science space. Our pipeline
of acquisition opportunities is strong, and continues to be an important
element of our long-term growth strategy. We are building our business
for the long term with investments in operational excellence and
technology, both of which are designed to improve infrastructure to
expand margins incrementally over time.

"We think we have a great leadership team in place, are confident in our
direction, and believe we have positioned Transcat to be successful for
our shareholders."

Transcat expects its income tax rate to range between 25% and 27% in
fiscal 2019. This rate includes Federal, various state, and Canadian
income taxes.

The Company anticipates total capital expenditures to be approximately
$7.0 million to $7.5 million in fiscal 2019, with the majority of the
incremental capital expenditures in excess of fiscal 2018 spend levels
planned for IT infrastructure investments to drive operational
excellence and for growth-oriented opportunities within both of its
operating segments. Maintenance/existing asset replacements are expected
to be consistent with fiscal 2018 at approximately $1.0 million to $1.5
million.

Webcast and Conference Call

Transcat will host a conference call and webcast on Wednesday, May 23,
2018 at 11:00 a.m. Eastern Time. 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 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. Eastern Time on the
day of the call through Wednesday, May 30, 2018. To listen to the
archived call, dial (412) 317-6671 and enter conference ID number
13678786, 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,
and non-cash stock compensation 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, and stock-based compensation expense, 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 the attached Adjusted EBITDA Reconciliation table
on page 10.

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, including life science, aerospace and defense,
pharmaceutical, medical device manufacturing and biotechnology. Transcat
provides permanent and periodic on-site services, mobile calibration
services and in-house services through 22 Calibration Service Centers
strategically located across the United States, Puerto Rico and Canada.
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," and other similar words. All
statements addressing operating performance, events or developments that
Transcat, Inc. expects or anticipates will occur in the future,
including but not limited to statements relating to anticipated revenue,
profit margins, 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 are
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. 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.

FINANCIAL TABLES FOLLOW.

The Company plans on timely filing its Annual Report on Form 10-K before
the required filing date.

 
TRANSCAT, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
 
Fourth Quarter Ended Fiscal Year Ended
(Unaudited) (Unaudited) (Audited)
March 31, March 25, March 31, March 25,
2018 2017 2018 2017
Service Revenue $ 21,955 $ 19,526 $ 77,445 $ 71,103
Distribution Sales 20,497 18,927 77,696 72,795
Total Revenue 42,452 38,453 155,141 143,898
 
Cost of Service Revenue 15,688 13,662 57,523 52,064
Cost of Distribution Sales 15,869 15,009 60,177 56,864
Total Cost of Revenue 31,557 28,671 117,700 108,928
 
Gross Profit 10,895 9,782 37,441 34,970
 
Selling, Marketing and Warehouse Expenses 4,317 3,942 16,564 16,554
Administrative Expenses 3,075 3,275 11,851 10,482
Total Operating Expenses 7,392 7,217 28,415 27,036
 
Operating Income 3,503 2,565 9,026 7,934
 
Interest and Other Expense, net 224 223 1,078 770
 
Income Before Income Taxes 3,279 2,342 7,948 7,164
Provision for Income Taxes 825 913 2,026 2,642
 
Net Income $ 2,454 $ 1,429 $ 5,922 $ 4,522
 
Basic Earnings Per Share $ 0.34 $ 0.20 $ 0.83 $ 0.65
Average Shares Outstanding 7,152 7,024 7,124 6,994
 
Diluted Earnings Per Share $ 0.33 $ 0.20 $ 0.81 $ 0.64
Average Shares Outstanding 7,376 7,189 7,303 7,111
 
TRANSCAT, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
 
       

(Unaudited)

March 31,

(Audited)

March 25,

2018 2017
ASSETS
Current Assets:
Cash $ 577 $ 842
Accounts Receivable, less allowance for doubtful accounts of $296
and $210 as of March 31, 2018 and March 25, 2017, respectively 24,684 22,049
Other Receivables 1,361 1,227
Inventory, net 12,651 10,278
Prepaid Expenses and Other Current Assets 1,240 1,193
Total Current Assets 40,513 35,589
Property and Equipment, net 17,091 15,568
Goodwill 32,740 32,520
Intangible Assets, net 5,505 7,519
Other Assets 973 901
Total Assets $ 96,822 $ 92,097
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $ 13,535 $ 11,615
Accrued Compensation and Other Liabilities 5,240 5,907
Income Taxes Payable 232 805
Current Portion of Long-Term Debt 2,143 1,429
Total Current Liabilities 21,150 19,756
Long-Term Debt 20,707 25,883
Deferred Tax Liability 1,709 1,134
Other Liabilities 1,908 1,923
Total Liabilities 45,474 48,696
Shareholders' Equity:

Common Stock, par value $0.50 per share, 30,000,000 shares
authorized;
7,155,050 and 7,043,754 shares issued and outstanding

as of March 31, 2018 and March 25, 2017, respectively 3,578 3,522
Capital in Excess of Par Value 14,965 12,996
Accumulated Other Comprehensive (Loss) (281) (414)
Retained Earnings 33,086 27,297
Total Shareholders' Equity 51,348 43,401
Total Liabilities and Shareholders' Equity $ 96,822 $ 92,097
 
TRANSCAT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
        For the Fiscal Year Ended
(Unaudited)   (Audited)
March 31, March 25,
2018   2017
Cash Flows from Operating Activities:
Net Income $ 5,922 $ 4,522
Adjustments to Reconcile Net Income to Net Cash Provided
by Operating Activities:
Loss/(Gain) on Sale of Property and Equipment 133 (4)
Deferred Income Taxes 765 63
Depreciation and Amortization 5,991 6,184
Provision for Accounts Receivable and Inventory Reserves 92 376
Stock-Based Compensation 1,411 453
Changes in Assets and Liabilities:
Accounts Receivable and Other Receivables (2,952) (4,728)
Inventory (1,674) (3,425)
Prepaid Expenses and Other Assets (259) (224)
Accounts Payable 1,920 3,107
Accrued Compensation and Other Liabilities (686) 405
Income Taxes Payable (789)   815
Net Cash Provided by Operating Activities 9,874   7,544
 
Cash Flows from Investing Activities:
Purchase of Property and Equipment (5,882) (5,250)
Proceeds from Sale of Property and Equipment 11 59
Business Acquisitions, net of cash acquired -   (6,977)
Net Cash Used in Investing Activities (5,871)   (12,168)
 
Cash Flows from Financing Activities:
Repayment of Revolving Credit Facility, net (9,878) (452)
Proceeds from Term Loan 7,143 10,000
Repayments of Term Loan (1,726) (1,310)
Issuance of Common Stock 931 635
Repurchase of Common Stock (360) (98)
Stock Option Redemption (90) (966)
Payment of Contingent Consideration & Holdbacks Related to Business
Acquisition
-   (3,041)
Net Cash (Used in) Provided by Financing Activities (3,980)   4,768
 
Effect of Exchange Rate Changes on Cash (288)   57
Net (Decrease) Increase in Cash (265) 201
Cash at Beginning of Period 842   641
Cash at End of Period $ 577   $ 842
 

TRANSCAT, INC.

Adjusted EBITDA Reconciliation Table

(Dollars in thousands)

(Unaudited)

                   
FY 2018
Q1     Q2     Q3     Q4     YTD
Net Income $ 856 $ 781 $ 1,831 $ 2,454 $ 5,922
+ Interest Expense 236 281 250 251 1,018
+ Other Expense / (Income) 36 (10) 61 (27) 60
+ Tax Provision 283     406     512     825     2,026
Operating Income $ 1,411 $ 1,458 $ 2,654 $ 3,503 $ 9,026
+ Depreciation & Amortization 1,487 1,497 1,543 1,464 5,991
+ Other (Expense) / Income (36) 10 (61) 27 (60)
+ Noncash Stock Compensation 499     332     264     316     1,411
Adjusted EBITDA $ 3,361 $ 3,297 $ 4,400 $ 5,310 $ 16,368

Segment Breakdown

 
Service Operating Income $ 885 $ 790 $ 1,063 $ 2,420 $ 5,158
+ Depreciation & Amortization 1,110 1,107 1,126 1,054 4,397
+ Other (Expense) / Income (28) 4 (45) 8 (61)
+ Noncash Stock Compensation 249     168     134     155     706
Service Adjusted EBITDA $ 2,216 $ 2,069 $ 2,278 $ 3,637 $ 10,200
 
Distribution Operating Income $ 526 $ 668 $ 1,591 $ 1,083 $ 3,868
+ Depreciation & Amortization 377 390 417 410 1,594
+ Other (Expense) / Income (8) 6 (16) 19 1
+ Noncash Stock Compensation 250     164     130     161     705
Distribution Adjusted EBITDA $ 1,145 $ 1,228 $ 2,122 $ 1,673 $ 6,168
 
 
FY 2017
Q1     Q2     Q3     Q4     YTD
Net Income $ 906 $ 917 $ 1,270 $ 1,429 $ 4,522
+ Interest Expense 137 180 184 218 719
+ Other Expense / (Income) 31 11 4 5 51
+ Tax Provision 364     470     895     913     2,642
Operating Income $ 1,438 $ 1,578 $ 2,353 $ 2,565 $ 7,934
+ Depreciation & Amortization 1,549 1,556 1,562 1,517 6,184
+ Other (Expense) / Income (31) (11) (4) (5) (51)
+ Noncash Stock Compensation 149     177     (10)    

137

    453
Adjusted EBITDA $ 3,105 $ 3,300 $ 3,901 $ 4,214 $ 14,520
 

Segment Breakdown

 
Service Operating Income $ 1,044 $ 791 $ 941 $ 1,993 $ 4,769
+ Depreciation & Amortization 1,247 1,137 1,158 1,118 4,660
+ Other (Expense) / Income (27) (12) (7) (9) (55)
+ Noncash Stock Compensation 80     94     (25)     68     217
Service Adjusted EBITDA $ 2,344 $ 2,010 $ 2,067 $ 3,170 $ 9,591
 
Distribution Operating Income $ 394 $ 787 $ 1,412 $ 572 $ 3,165
+ Depreciation & Amortization 302 419 404 399 1,524
+ Other (Expense) / Income (4) 1 3 4 4

+ Noncash Stock Compensation

69     83     15     69     236
Distribution Adjusted EBITDA $ 761 $ 1,290 $ 1,834 $ 1,044 $ 4,929
 

TRANSCAT, INC.

Additional Information - Business Segment Data

(Dollars in thousands)

(Unaudited)

       
Change
SERVICE

FY 2018 Q4

FY 2017 Q4

$'s   %
Service Revenue $ 21,955 $ 19,526 $ 2,429 12.4%
Cost of Revenue 15,688 13,662 2,026 14.8%
Gross Profit $ 6,267 $ 5,864 $ 403 6.9%
Gross Margin 28.5% 30.0%
 
Selling, Marketing & Warehouse $ 2,207 $ 2,024 $ 183 9.0%
General & Administrative Expenses 1,640 1,847 (207) (11.2)%
Operating Income $ 2,420 $ 1,993 $ 427 21.4%
% of Revenue 11.0% 10.2%
                 
 
Change
DISTRIBUTION

FY 2018
Q4

FY 2017
Q4

$'s %
Distribution Sales $ 20,497 $ 18,927 $ 1,570 8.3%
Cost of Sales 15,869 15,009 860 5.7%
Gross Profit $ 4,628 $ 3,918 $ 710 18.1%
Gross Margin 22.6% 20.7%
 
Selling, Marketing & Warehouse $ 2,110 $ 1,918 $ 192 10.0%
General & Administrative Expenses 1,435 1,428 7 0.5%
Operating Income $ 1,083 $ 572 $ 511 89.3%
% of Sales 5.3% 3.0%
                 
 
Change
TOTAL

FY 2018
Q4

FY 2017
Q4

$'s %
Total Revenue $ 42,452 $ 38,453 $ 3,999 10.4%
Total Cost of Revenue 31,557 28,671 2,886 10.1%
Gross Profit $ 10,895 $ 9,782 $ 1,113 11.4%
Gross Margin 25.7% 25.4%
 
Selling, Marketing & Warehouse $ 4,317 $ 3,942 $ 375 9.5%
General & Administrative Expenses 3,075 3,275 (200) (6.1)%
Operating Income $ 3,503 $ 2,565 $ 938 36.6%
% of Revenue 8.3% 6.7%
 

TRANSCAT, INC.

Additional Information - Business Segment Data

(Dollars in thousands)

(Unaudited)

       
Change
SERVICE

FY 2018

FY 2017 $'s   %
Service Revenue $ 77,445 $ 71,103 $ 6,342 8.9%
Cost of Revenue 57,523 52,064 5,459 10.5%
Gross Profit $ 19,922 $ 19,039 $ 883 4.6%
Gross Margin 25.7% 26.8%
 
Selling, Marketing & Warehouse $ 8,517 $ 8,839 $ (322) (3.6)%
General & Administrative Expenses 6,247 5,431 816 15.0%
Operating Income $ 5,158 $ 4,769 $ 389 8.2%
% of Revenue 6.7% 6.7%
                   
 
Change
DISTRIBUTION FY 2018 FY 2017 $'s %
Distribution Sales $ 77,696 $ 72,795 $ 4,901 6.7%
Cost of Sales 60,177 56,864 3,313 5.8%
Gross Profit $ 17,519 $ 15,931 $ 1,588 10.0%
Gross Margin 22.5% 21.9%
 
Selling, Marketing & Warehouse $ 8,047 $ 7,715 $ 332 4.3%
General & Administrative Expenses 5,604 5,051 553 10.9%
Operating Income $ 3,868 $ 3,165 $ 703 22.2%
% of Sales 5.0% 4.3%
                   
 
Change
TOTAL FY 2018 FY 2017 $'s %
Total Revenue $ 155,141 $ 143,898 $ 11,243 7.8%
Total Cost of Revenue 117,700 108,928 8,772 8.1%
Gross Profit $ 37,441 $ 34,970 $ 2,471 7.1%
Gross Margin 24.1% 24.3%
 
Selling, Marketing & Warehouse $ 16,564 $ 16,554 $ 10 0.1%
General & Administrative Expenses 11,851 10,482 1,369 13.1%
Operating Income $ 9,026 $ 7,934 $ 1,092 13.8%
% of Revenue 5.8% 5.5%

View Comments and Join the Discussion!