Transcat Inc. Reports FY2024 Results

TL;DR

Transcat FY24 revenue $261.4M, net income $14.6M. Full financials out.

AI Summary

Transcat Inc. filed its 10-K for the fiscal year ending March 30, 2024, reporting total revenues of $261.4 million. The company's net income for the period was $14.6 million, with earnings per share of $0.50. This filing details their financial performance and operational overview for the fiscal year.

Why It Matters

This 10-K filing provides investors and stakeholders with a comprehensive overview of Transcat Inc.'s financial health and strategic direction for the past fiscal year, influencing investment decisions.

Risk Assessment

Risk Level: medium — The filing is a standard annual report and does not contain immediate red flags or significant new risks.

Key Numbers

• $261.4M — Total Revenues (Fiscal Year 2024 revenue)
• $14.6M — Net Income (Fiscal Year 2024 net income)
• $0.50 — Earnings Per Share (Fiscal Year 2024 EPS)
• 30,000,000 — Debt (Long-term debt reported)
• 8,839,299 — Interest Expense (Annual interest expense)

Key Players & Entities

• TRANSCAT INC (company) — Filer
• 20240330 (date) — Fiscal Year End
• 20240528 (date) — Filing Date
• 35 VANTAGE POINT DRIVE (address) — Business and Mail Address
• ROCHESTER (city) — Business and Mail City
• NY (state) — Business and Mail State
• 14624 (zip_code) — Business and Mail Zip Code
• TRANSMATION INC (company) — Former Company Name
• 19920703 (date) — Date of Name Change

FAQ

Key Financial Figures

• $0.50 — nge on which registered Common Stock, $0.50 par value TRNS Nasdaq Global Market

Filing Documents

• trns20240220_10k.htm (10-K) — 2320KB
• ex_654802.htm (EX-2.2) — 517KB
• ex_654803.htm (EX-10.26) — 98KB
• ex_628490.htm (EX-21.1) — 5KB
• ex_628491.htm (EX-23.1) — 3KB
• ex_628492.htm (EX-31.1) — 8KB
• ex_628493.htm (EX-31.2) — 8KB
• ex_628494.htm (EX-32.1) — 6KB
• ex_662724.htm (EX-97.1) — 30KB
• g04.jpg (GRAPHIC) — 29KB
• g05.jpg (GRAPHIC) — 45KB
• ns3.jpg (GRAPHIC) — 71KB
• 0001437749-24-018456.txt ( ) — 12329KB
• trns-20240330.xsd (EX-101.SCH) — 79KB
• trns-20240330_cal.xml (EX-101.CAL) — 81KB
• trns-20240330_def.xml (EX-101.DEF) — 553KB
• trns-20240330_lab.xml (EX-101.LAB) — 541KB
• trns-20240330_pre.xml (EX-101.PRE) — 603KB
• trns20240220_10k_htm.xml (XML) — 2126KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 14 Item 1B. Unresolved Staff Comments 23 Item 1C. Cybersecurity 23 Item 2.

Properties

Properties 25 Item 3.

Legal Proceedings

Legal Proceedings 26 Item 4. Mine Safety Disclosures 26 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26 Item 6. [Reserved] 26 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 40 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 41 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 77 Item 9A.

Controls and Procedures

Controls and Procedures 77 Item 9B. Other Information 77 Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 77 Part III Item 10. Directors, Executive Officers and Corporate Governance 78 Item 11.

Executive Compensation

Executive Compensation 78 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 78 Item 13. Certain Relationships and Related Transactions, and Director Independence 78 Item 14. Principal Accountant Fees and Services 79 Part IV Item 15. Exhibits and Financial Statement Schedules 79 Item 16. Form 10-K Summary 83

Signatures

Signatures 84 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Forward-Looking Statements. This report contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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. Forward-looking statements are not statements of historical fact and thus are subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or those expressed in such forward-looking statements. You should evaluate forward-looking statements in light of important risk factors and uncertainties that may affect our operating and financial results and our ability to achieve our financial objectives. These factors include, but are not limited to: general economic conditions applicable to our business, including impacts from the ongoing inflationary environment and interest rate changes, the highly competitive nature of the industries in which we compete, the significant competition we face in our Distribution segment, the concentration of Service segment customers in the life science and other FDA-regulated businesses, as well as the industrial manufacturing, aerospace, defense, energy and utilities industries, any impairment of our goodwill or intangible assets, tariffs and changing trade relations, regional and international conflicts and political conditions, negative publicity and other reputational harm, our ability to successfully complete and integrate business acquisitions, potential unexpected liabilities associated with companies we acquire, cybersecurity risks, i

BUSINESS

ITEM 1. BUSINESS BUSINESS OVERVIEW Transcat, Inc. ("Transcat", the "Company," "we" or "us") is 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. We are focused on providing services and products to highly regulated industries, particularly the life science industry, which includes pharmaceutical, biotechnology, medical device and other FDA-regulated businesses. Additional industries served include industrial manufacturing; energy and utilities, including oil and gas; chemical manufacturing; FAA-regulated businesses, including aerospace and defense; and other industries that require accuracy in their processes, confirmation of the capabilities of their equipment, and for which the risk of failure is very costly. We conduct our business through two operating segments: service ("Service") and distribution ("Distribution"). See Note 7 to our Consolidated Financial Statements in this report for financial information for these segments. We concentrate on attracting new customers in each segment, retaining existing customers and cross-selling to customers to increase our total revenue. We serve approximately 30,000 customers through our Service and Distribution segments, with approximately 20% to 25% of those customers transacting with us through both of our business segments. Through the Company's acquisition strategy, we have been focused on building out our business segments by entering adjacent and complimentary markets. This has been demonstrated by the acquisitions of Axiom Test Equipment, Inc. ("Axiom"), SteriQual, Inc. ("SteriQual") and TIC-MS, Inc. ("TIC-MS") in the fiscal year 2024, and Elite Calibration, LLC ("Elite"), Galium Limited (d/b/a Complete Calibrations) ("Complete Calibrations"), e2b Calibration ("e2b"), and Charlton Jeffmont Inc., Raitz Inc. and Toolroom Calibration Inc. d/b/a All

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View this 10-K filing on SEC EDGAR