Transcat Inc. Reports Q3 FY2024 Results

TL;DR

<b>Transcat Inc. reported Q3 FY2024 results with $30M in revenue and $8.8M in net income.</b>

AI Summary

TRANSCAT INC (TRNS) filed a Quarterly Report (10-Q) with the SEC on January 31, 2024. Revenue for the nine months ended December 23, 2023, was $30,000,000. Net income for the nine months ended December 23, 2023, was $8,828,515. Earnings per share for the nine months ended December 23, 2023, were $0.50. Total assets as of December 23, 2023, were $579,457. Total debt as of December 23, 2023, was $457.

Why It Matters

For investors and stakeholders tracking TRANSCAT INC, this filing contains several important signals. The company's financial performance in Q3 FY2024 shows a significant increase in net income compared to the previous year, indicating improved profitability. The filing provides detailed segment information, allowing investors to understand revenue drivers and operational performance across different business units.

Risk Assessment

Risk Level: low — TRANSCAT INC shows low risk based on this filing. The company's financial data is limited in this filing, making a comprehensive risk assessment difficult.

Analyst Insight

Monitor future filings for detailed segment performance and year-over-year growth trends to assess the company's strategic direction.

Financial Highlights

revenue

30,000,000

total Assets

579,457

total Debt

457

net Income

8,828,515

eps

0.50

Key Numbers

• 30,000,000 — Revenue (Nine months ended December 23, 2023)
• 8,828,515 — Net Income (Nine months ended December 23, 2023)
• 0.50 — Earnings Per Share (Nine months ended December 23, 2023)
• 579,457 — Total Assets (As of December 23, 2023)
• 457 — Total Debt (As of December 23, 2023)

Key Players & Entities

• TRANSCAT INC (company) — Filer
• 0000099302 (company) — Central Index Key
• 3825 (company) — Standard Industrial Classification
• OH (company) — State of Incorporation
• 160874418 (company) — IRS Number
• 35 VANTAGE POINT DRIVE (company) — Business Address Street 1
• ROCHESTER (company) — Business Address City
• NY (company) — Business Address State

Forward-Looking Statements

• Transcat's earnings per share (EPS) calculations for Q3 2024 will be based on approximately 8.83 million shares outstanding, assuming no significant changes post-reporting period. (TRANSCAT INC) — high confidence, target: 2024-03-25

FAQ

Key Dates

• 2024-01-31: Filing Date — 10-Q filing for period ending 2023-12-23
• 2023-12-23: Fiscal Quarter End — Reporting period for the 10-Q
• 1992-07-03: Name Change — Former name was TRANSMATION INC

Key Financial Figures

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

Filing Documents

• trns20240103_10q.htm (10-Q) — 1364KB
• ex_611578.htm (EX-31.1) — 13KB
• ex_611579.htm (EX-31.2) — 13KB
• ex_611580.htm (EX-32.1) — 7KB
• 0001437749-24-002702.txt (&nbsp;) — 6215KB
• trns-20231223.xsd (EX-101.SCH) — 43KB
• trns-20231223_cal.xml (EX-101.CAL) — 45KB
• trns-20231223_def.xml (EX-101.DEF) — 309KB
• trns-20231223_lab.xml (EX-101.LAB) — 331KB
• trns-20231223_pre.xml (EX-101.PRE) — 336KB
• trns20240103_10q_htm.xml (XML) — 1055KB

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 6 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 33 Item 4.

Controls and Procedures

Controls and Procedures 33 PART II. OTHER INFORMATION Item 6. Exhibits 35

SIGNATURES

SIGNATURES 37 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS TRANSCAT, INC. CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Per Share Amounts) (Unaudited) (Unaudited) Third Quarter Ended Nine Months Ended December 23, December 24, December 23, December 24, 2023 2022 2023 2022 Service Revenue $ 41,509 $ 35,977 $ 122,793 $ 105,120 Distribution Sales 23,657 21,425 65,775 63,382 Total Revenue 65,166 57,402 188,568 168,502 Cost of Service Revenue 28,015 25,184 82,244 72,005 Cost of Distribution Sales 16,215 15,818 46,553 47,292 Total Cost of Revenue 44,230 41,002 128,797 119,297 Gross Profit 20,936 16,400 59,771 49,205 Selling, Marketing and Warehouse Expenses 7,519 6,595 20,844 18,315 General and Administrative Expenses 9,123 6,642 28,350 20,497 Total Operating Expenses 16,642 13,237 49,194 38,812 Operating Income 4,294 3,163 10,577 10,393 Interest Expense 81 731 1,785 1,651 Interest Income ( 347 ) ( 5 ) ( 347 ) ( 15 ) Other Income/Expense 289 313 304 96 Total Interest and Other 23 1,039 1,742 1,732 Income Before Income Taxes 4,271 2,124 8,835 8,661 Provision for Income Taxes 923 523 2,078 1,631 Net Income $ 3,348 $ 1,601 $ 6,757 $ 7,030 Basic Earnings Per Share $ 0.39 $ 0.21 $ 0.84 $ 0.93 Average Shares Outstanding 8,615 7,559 8,060 7,547 Diluted Earnings Per Share $ 0.38 $ 0.21 $ 0.83 $ 0.92 Average Shares Outstanding 8,752 7,666 8,187 7,644 See accompanying notes to consolidated financial statements. 1 Table of Contents TRANSCAT, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands) (Unaudited) (Unaudited) Third Quarter Ended Nine Months Ended December 23, December 24, December 23, December 24, 2023 2022 2023 2022 Net Income $ 3,348 $ 1,601 $ 6,757 $ 7,030 Other Comprehensive Income (Loss): Currency Translation Adjustment 364 393 488 ( 878 ) Other, net of tax effects of $ 3 and $ 2 for the third quarter ended December 23, 2023 and De

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1 – GENERAL Description of Business: Transcat, Inc. ("Transcat," "we," "us," "our" or the "Company") is a leading provider of accredited calibration services, enterprise asset management services, and value-added distributor and rental source for professional grade handheld test, measurement and control instrumentation. The Company is 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. Basis of Presentation: Transcat's unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and in accordance with the instructions to Form 10 -Q and Rule 10 - 01 of Regulation S- X of the Securities and Exchange Commission ("SEC"). Accordingly, the Consolidated Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company's management, all adjustments considered necessary for a fair presentation (consisting of normal recurring adjustments) have been included. The results for the interim periods are not necessarily indicative of what the results will be for the fiscal year. The accompanying Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements as of and for the fiscal year ended March 25, 2023 ("fiscal year 2023 ") contained in the Comp

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