CORRECTING and REPLACING: Transcat Reports Fiscal Fourth Quarter and Full Year 2025 Financial Results

Author's Avatar
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=1717999&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 Reconciliationtables.

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 Reconciliationtable.

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 29,

March 30,

March 29,

March 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

)

(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

)

(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

SERVICE

FY 2025 Q4

FY 2024 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

DISTRIBUTION

FY 2025 Q4

FY 2024 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

TOTAL

FY 2025 Q4

FY 2024 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

%

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