Exhibit 99.1

 

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NEWS
RELEASE

 

Transcat, Inc. 35 Vantage Point Drive • Rochester • NY • 14624 • Phone: (585) 352-7777

 

Transcat Reports Strong Fiscal First Quarter 2026 Financial Results with Double-Digit Revenue & Gross Profit Growth

 

 

 

Q1’26 Adjusted EBITDA Increased 15% to $11.8 Million Driven by Double-Digit Revenue Growth

     
 

Q1’26 Service Revenue Increased 12% to $49.1 Million

     
  Q1’26 Distribution Revenue Grew 19% to $27.3 Million on Increased Demand for Rentals
     
  Q1’26 Distribution Gross Margins Expanded 130 Basis Points to a Record 35.2%
     
  Acquisition of Essco Calibration Laboratory with $22 Million in Annual, Margin-Accretive Revenue.
     
  Management to Host Conference Call Tomorrow at 11:00 a.m. Eastern Time

 

ROCHESTER, NY, August 6, 2025 – Transcat, Inc. (Nasdaq: TRNS) (“Transcat” or the “Company”), a leader in test measurement, control and calibration, has reported its financial and operational results for its first quarter ended June 28, 2025 (the “first quarter”) of fiscal year 2026.

 

Management Commentary 

 

    "The Transcat team delivered solid revenue and adjusted EBITDA performance in the fiscal first quarter highlighted by double-digit service revenue growth and better-than-expected demand in our distribution segment,” commented Lee D. Rudow, President and CEO. “Distribution revenue grew 19% in the quarter with a record 35% gross margin driven primarily by strong rentals performance. Our talented team’s execution paired with robust revenue growth enabled us to deliver 15% adjusted EBITDA growth."

 

"Acquisitions continue to be a cornerstone of our growth strategy. We are extremely excited about the recent acquisition of Essco Calibration, the largest deal in Transcat history, supported by our new, larger credit facility. Essco is a perfect fit in our calibration service portfolio and creates a dominant presence for Transcat in the New England market, a market defined by a large concentration of highly regulated life science and Aerospace & defense manufacturers. With the Essco deal following the acquisition of Martin Calibration in December, Transcat has acquired two leading regional calibration providers in an 8-month period, which reflects the investment in acquisition infrastructure we have made in the past couple of years. This continues to differentiate Transcat and demonstrates our ability to attract and acquire highly sought-after calibration companies, the best of the best, to expand our capabilities and geographic reach, while increasing market share. Martin Calibration had another strong quarter in the Midwest, driven by sales synergies with Transcat. The integration of Martin is ahead of schedule as we deploy our integration playbook."

 

"Looking forward, the macro environment continues to be a challenge, but our diversified portfolio of products and services along with a strong financial profile will continue to differentiate Transcat in fiscal 2026 and beyond. We expect continued service revenue growth, benefiting from our new strength in the Midwest, larger presence in the New England market, and progressively improving Service organic revenue. We are confident in a return to high single-digit Service organic revenue growth in the second half of Fiscal 2026, barring any further economic uncertainty. The 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 believe strong execution combined with the differentiation of our portfolio, positions us well to drive sustainable, long-term shareholder value."

 


 

First Quarter Fiscal 2026 Review
(Results are compared with the first quarter of the fiscal year ended March 29, 2025 (fiscal 2025))

 

($ in thousands)

                 

Change

 
   

FY26 Q1

   

FY25 Q1

   

$'s

   

%

 

Service Revenue

  $ 49,144     $ 43,778     $ 5,366       12.3 %

Distribution Revenue

    27,280       22,929       4,351       19.0 %

Revenue

  $ 76,424     $ 66,707     $ 9,717       14.6 %
                                 

Gross Profit

  $ 25,821     $ 22,655     $ 3,166       14.0 %

Gross Margin

    33.8 %     34.0 %                
                                 

Operating Income

  $ 5,338     $ 5,099     $ 239       4.7 %

Operating Margin

    7.0 %     7.6 %                
                                 

Net Income

  $ 3,261     $ 4,408     $ (1,147 )     (26.0 )%

Net Margin

    4.3 %     6.6 %                
                                 

Adjusted EBITDA*

  $ 11,768     $ 10,212     $ 1,556       15.2 %

Adjusted EBITDA* Margin

    15.4 %     15.3 %                
                                 

Diluted EPS

  $ 0.35     $ 0.48     $ (0.13 )     (27.1 )%
                                 

Adjusted Diluted EPS*

  $ 0.59     $ 0.68     $ (0.09 )     (13.2 )%

*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 $76.4 million, an increase of $9.7 million or 14.6%, driven by growth in both service and distribution segments. Consolidated gross profit was $25.8 million, an increase of $3.2 million, or 14.0%, while gross margin decreased 20 basis points.

 

Operating expenses were $20.5 million, an increase of $2.9 million, or 16.7%, driven by incremental expenses from acquired businesses (including stock-based compensation expense), increased intangibles amortization expense, and higher sales-based incentives.

 

Adjusted EBITDA was $11.8 million, which represented an increase of $1.6 million or 15.2%, driven by strong revenue growth. Net income per diluted share was $0.35 compared to $0.48 last year. Adjusted diluted earnings per share were $0.59 versus $0.68 last year.

 

 

 

Service segment first quarter results

 

Represents the accredited calibration, repair, inspection and laboratory instrument services business (64.3% of total revenue for the first quarter of fiscal 2026).

 

($ in thousand)

                 

Change

 
   

FY26 Q1

   

FY25 Q1

   

$'s

   

%

 

Service Segment Revenue

  $ 49,144     $ 43,778     $ 5,366       12.3 %

Gross Profit

  $ 16,209     $ 14,883     $ 1,326       8.9 %

Gross Margin

    33.0 %     34.0 %                
                                 

Operating Income

  $ 2,567     $ 4,090     $ (1,523 )     (37.2 )%

Operating Margin

    5.2 %     9.3 %                
                                 

Adjusted EBITDA*

  $ 6,930     $ 6,964     $ (34 )     (0.5 )%

Adjusted EBITDA* Margin

    14.1 %     15.9 %                

*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 $49.1 million, an increase of $5.4 million or 12.3%, and included $6.4 million of incremental revenue from acquisitions. Despite economic volatility in the first quarter, total Service revenue growth of 12% and was in line with expectations. The segment gross margin was 33.0%, a decrease of 100 basis points from the prior year.

 

Distribution segment second quarter results

 

Represents the sale and rental of new and used professional grade handheld test, measurement and control instrumentation (35.7% of total revenue for the second quarter of fiscal 2025).

 

($ in thousands)

                 

Change

 
   

FY26 Q1

   

FY25 Q1

   

$'s

   

%

 

Distribution Segment Revenue

  $ 27,280     $ 22,929     $ 4,351       19.0 %

Gross Profit

  $ 9,612     $ 7,772     $ 1,840       23.7 %

Gross Margin

    35.2 %     33.9 %                
                                 

Operating Income

  $ 2,771     $ 1,009     $ 1,762       174.6 %

Operating Margin

    10.2 %     4.4 %                
                                 

Adjusted EBITDA*

  $ 4,839     $ 3,248     $ 1,591       49.0 %

Adjusted EBITDA* Margin

    17.7 %     14.2 %                

*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 revenue was $27.2 million, which represented an increase of $4.4 million or 19.0%, driven by growth in rentals and products. Distribution segment gross margin was 35.2%, an increase of 130 basis points due to strong performance in higher margin rentals.

 

 

 

Balance Sheet and Cash Flow Overview

 

On June 28, 2025, the Company had $1.9 million in cash and cash equivalents on hand and $46.8 million available for borrowing under its secured revolving credit facility. Total debt was $34.4 million versus $32.7 million on March 29, 2025.  The Company’s leverage ratio, as defined in the credit agreement, was 0.82 on June 28, 2025, compared with 0.78 on March 29, 2025. On July 29, 2025, Transcat announced a new 5-Year $150 Million syndicated secured credit facility with M&T Bank and included additional lenders, Wells Fargo Bank, N.A. and Bank of America, replacing its existing $80 million credit facility with M&T and payoff of the term debt.

 

Tom Barbato, Transcat’s Chief Financial Officer, added, “First quarter adjusted EBITDA grew 15% as both segments experienced double-digit revenue growth. Our balance sheet remains strong with a 0.82x leverage ratio at quarter-end. We recently closed a new 5-Year $150 Million syndicated secured credit facility that supported the acquisition of the premier Calibration Services provider in the New England market, Essco Calibration Laboratory. The increased credit capacity now provides capital resources to execute on our proven acquisition and growth strategies. Moreover, this facility with America’s top lenders nearly doubles our access to available capital and provides significant financial flexibility. Given our expanded balance sheet and diversified portfolio, we are well-positioned to capture increased market share in the test and measurement, control and calibration markets with future profitable growth.”

 

Fiscal First Quarter 2026 Results Webcast and Conference Call

 

Transcat will host a conference call and webcast on Thursday, August 7, 2025, at 11:00 a.m. ET.  Management will review the financial and operating results for the first quarter, 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.

 

Thursday, August 7, 2025

11:00 a.m. Eastern Time

Dial-in – Toll-Free US / Canada: (800) 267-6316

Dial-in – Toll / International: (203) 518-9783

Conference ID: TRANSCAT (THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY)

Webcast and accompanying slide presentation:

https://viavid.webcasts.com/starthere.jsp?ei=1727811&tp_key=beaff2fcef

 

A telephonic replay will be available from 3:00 p.m. ET on the day of the conference call through Thursday, August 14, 2025. To listen to the archived call, dial (844) 512-2921 from the US or Canada, or (412) 317-6671 from international locations, and enter conference ID number 11159645 or access the webcast replay at https://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, non-cash stock compensation expense, and acquisition related transaction expenses, 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, and acquisition amortization of backlog; 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 its 33 Calibration Service Centers strategically located across the United States, Puerto Rico, Canada, and Ireland. Inclusive of customer embedded locations and other field offices, we operate out of more than 50 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, enterprise asset management, 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.

 

Investor Relations

Chris Tyson

Executive Vice President

MZ Group - MZ North America
Phone: (949) 491-8235

TRNS@mzgroup.us

www.mzgroup.us

 

FINANCIAL TABLES FOLLOW.

 

 

 

TRANSCAT, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)

 

   

(Unaudited)

 
   

First Quarter Ended

 
   

June 28,

   

June 29,

 
   

2025

   

2024

 
                 

Service Revenue

  $ 49,144     $ 43,778  

Distribution Revenue

    27,280       22,929  

Total Revenue

    76,424       66,707  
                 

Cost of Service Revenue

    32,935       28,895  

Cost of Distribution Revenue

    17,668       15,157  

Total Cost of Revenue

    50,603       44,052  
                 

Gross Profit

    25,821       22,655  
                 

Selling, Marketing and Warehouse Expenses

    9,515       7,801  

General and Administrative Expenses

    10,968       9,755  

Total Operating Expenses

    20,483       17,556  
                 

Operating Income

    5,338       5,099  
                 

Interest Expense

    451       52  

Interest Income

    (11 )     (312 )

Other Expense

    333       131  

Total Interest and Other Expense/(Income), net

    773       (129 )
                 

Income Before Provision For Income Taxes

    4,565       5,228  

Provision for Income Taxes

    1,304       820  
                 

Net Income

  $ 3,261     $ 4,408  
                 

Basic Earnings Per Share

  $ 0.35     $ 0.49  

Weighted Average Shares Outstanding

    9,317       9,064  
                 

Diluted Earnings Per Share

  $ 0.35     $ 0.48  

Weighted Average Shares Outstanding

    9,389       9,196  

  

 

 

TRANSCAT, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)

 

   

(Unaudited)

   

(Audited)

 
   

June 28,

   

March 29,

 
   

2025

   

2025

 

ASSETS

               

Current Assets:

               

Cash and Cash Equivalents

  $ 1,861     $ 1,517  

Accounts Receivable, less allowance for credit losses of $642 and $659 as of June 28, 2025 and March 29, 2025, respectively

    57,651       55,941  

Other Receivables

    708       373  

Inventory

    15,392       14,483  

Prepaid Expenses and Other Current Assets

    4,042       5,695  

Total Current Assets

    79,654       78,009  

Property and Equipment, net

    52,161       50,024  

Goodwill

    177,114       176,928  

Intangible Assets, net

    51,933       54,777  

Right to Use Assets

    30,505       24,345  

Other Assets

    1,169       1,159  

Total Assets

  $ 392,536     $ 385,242  
                 

LIABILITIES AND SHAREHOLDERS' EQUITY

               

Current Liabilities:

               

Accounts Payable

  $ 13,455     $ 16,755  

Accrued Compensation and Other Current Liabilities

    12,608       15,466  

Current Portion of Long-Term Debt

    1,217       1,816  

Total Current Liabilities

    27,280       34,037  

Long-Term Debt

    33,182       30,892  

Deferred Tax Liabilities, net

    9,310       9,286  

Lease Liabilities

    27,476       21,395  

Other Liabilities

    2,752       2,752  

Total Liabilities

    100,000       98,362  
                 

Shareholders' Equity:

               

Common Stock, par value $0.50 per share, 30,000,000 shares authorized; 9,318,490 and 9,315,840 shares issued and outstanding as of June 28, 2025 and March 29, 2025, respectively

    4,659       4,658  

Capital in Excess of Par Value

    192,548       191,167  

Accumulated Other Comprehensive Loss

    (461 )     (1,469 )

Retained Earnings

    95,790       92,524  

Total Shareholders' Equity

    292,536       286,880  

Total Liabilities and Shareholders' Equity

  $ 392,536     $ 385,242  

 

 

 

TRANSCAT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)

 

   

(Unaudited)

 
   

Three Months Ended

 
   

June 28,

   

June 29,

 
   

2025

   

2024

 

Cash Flows from Operating Activities:

               

Net Income

  $ 3,261     $ 4,408  

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

               

Net Loss/(Gain) on Disposal of Property and Equipment

    54       (4 )

Noncash Lease Expense

    915       850  

Deferred Income Taxes

    24       (4 )

Depreciation and Amortization

    5,605       4,113  

Provision for Accounts Receivable and Inventory Reserves

    118       (89 )

Stock-Based Compensation Expense

    1,130       697  

Changes in Assets and Liabilities, net of acquisitions:

               

Accounts Receivable and Other Receivables

    (1,214 )     2,814  

Inventory

    (745 )     (235 )

Prepaid Expenses and Other Current Assets

    1,737       (687 )

Accounts Payable

    (3,300 )     1,425  

Accrued Compensation and Other Current Liabilities

    (4,338 )     (5,123 )

Income Taxes Payable

    376       759  

Net Cash Provided by Operating Activities

    3,623       8,924  
                 

Cash Flows from Investing Activities:

               

Purchase of Property and Equipment

    (4,598 )     (3,674 )

Business Acquisitions, net of cash acquired

    -       (15,953 )

Sales of Marketable Securities

    -       15,533  

Net Cash Used in Investing Activities

    (4,598 )     (4,094 )
                 

Cash Flows from Financing Activities:

               

Proceeds From/(Repayment of) Revolving Credit Facility, net

    2,291       -  

Repayments of Term Loan

    (602 )     (576 )

Issuance of Common Stock, net of direct costs

    257       260  

Repurchase of Common Stock

    -       (1,619 )

Net Cash Provided by/(Used in) Financing Activities

    1,946       (1,935 )
                 

Effect of Exchange Rate Changes on Cash and Cash Equivalents

    (627 )     116  
                 

Net Increase in Cash and Cash Equivalents

    344       3,011  

Cash and Cash Equivalents at Beginning of Period

    1,517       19,646  

Cash and Cash Equivalents at End of Period

  $ 1,861     $ 22,657  

 

 

 

TRANSCAT, INC.
Adjusted EBITDA Reconciliation Table
(In thousands)
(Unaudited)

 

   

Fiscal 2026

 
   

Q1

   

Q2

   

Q3

   

Q4

   

YTD

 

Net Income

  $ 3,261       -       -       -     $ 3,261  

+ Interest Income

    440       -       -       -       440  

+ Tax Provision

    1,304       -       -       -       1,304  

+ Depreciation & Amortization

    5,605       -       -       -       5,605  

+ Transaction Expenses

    28       -       -       -       28  

+ Non-cash Stock Compensation

    1,130       -       -       -       1,130  

Adjusted EBITDA

  $ 11,768       -       -       -     $ 11,768  
                                         

Segment Breakdown

                                       
                                         

Service Operating Income

  $ 2,567       -       -       -     $ 2,567  

+ Depreciation & Amortization

    3,763       -       -       -       3,763  

+ Transaction Expenses

    28       -       -       -       28  

+ Other Expense

    (230 )     -       -       -       (230 )

+ Non-cash Stock Compensation

    802       -       -       -       802  

Service Adjusted EBITDA

  $ 6,930       -       -       -     $ 6,930  
                                         

Distribution Operating Income

  $ 2,771       -       -               2,771  

+ Depreciation & Amortization

    1,842       -       -               1,842  

+ Transaction Expenses

    -       -       -               -  

+ Other Expense

    (103 )     -       -               (103 )

+ Non-cash Stock Compensation

    329       -       -               329  

Distribution Adjusted EBITDA

  $ 4,839       -       -             $ 4,839  

 

 

 

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 / (Income)

    (260 )     (210 )     (20 )     463       (27 )

+ Tax Provision

    820       427       772       1,792       3,811  

+ Depreciation & Amortization

    4,113       4,399       4,430       5,625       18,567  

+ Transaction Expenses

    434       32       778       33       1,277  

+ Acquisition Earn-Out Adjustment

    -       -       -       (835 )     (835 )

+ Other (Expense) / Income

    -       1       (855 )     30       (824 )

+ Non-cash 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 Expenses

    146       -       778       11       935  

+ Acquisition Earn-Out Adjustment

    -       -       -       (256 )     (256 )

+ Other (Expense) / Income

    (96 )     (164 )     94       (133 )     (299 )

+ Non-cash 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 Diluted EPS Reconciliation Table
(In Thousands, Except Per Share Amounts)
(Unaudited)

 

   

Fiscal 2026

 
   

Q1

   

Q2

   

Q3

   

Q4

   

YTD

 

Net Income

  $ 3,261       -       -       -       3,261  

+ Amortization of Intangible Assets

    2,844       -       -       -       2,844  

+ Acquisition Amortization of Backlog

    -       -       -       -       -  

+ Acquisition Deal Costs

    28       -       -       -       28  

+ Acquisition Stock Expense

    145       -       -       -       145  

+ Income Tax Effect at 25%

    (754 )     -       -       -       (754 )

Adjusted Net Income

    5,524       -       -       -       5,524  
                                         

Weighted Average Diluted Shares Outstanding

    9,389       -       -               9,389  
                                         

Diluted Earnings Per Share

  $ 0.35       -       -       -     $ 0.35  
                                         

Adjusted Diluted Earnings Per Share

  $ 0.59       -       -       -     $ 0.59  
                                         
   

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

    434       33       778       34       1,279  

+ Acquisition Stock Expense

    234       130       (261 )     141       244  

+ Income Tax Effect at 25%

    (610 )     (514 )     (599 )     (770 )     (2,493 )

+ Acquisition Earn-Out Adjustment

    -       -       -       (836 )     (836 )

Adjusted Net Income

  $ 6,239     $ 4,827     $ 4,154     $ 5,939     $ 21,159  
                                         

Weighted 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  

 

 

 

TRANSCAT, INC.
Additional Information - Business Segment Data
(Dollars in thousands)
(Unaudited)

 

                   

Change

 

SERVICE

 

FY 2026 Q1

   

FY 2025 Q1

   

$'s

   

%

 

Service Revenue

  $ 49,144     $ 43,778     $ 5,366       12.3 %

Cost of Revenue

    32,935       28,895       4,040       14.0 %

Gross Profit

  $ 16,209     $ 14,883     $ 1,326       8.9 %

Gross Margin

    33.0 %     34.0 %                
                                 

Selling, Marketing & Warehouse Expenses

  $ 5,866     $ 4,303     $ 1,563       36.3 %

General and Administrative Expenses

    7,776       6,490       1,286       19.8 %

Operating Income

  $ 2,567     $ 4,090     $ (1,523 )     (37.2 )%

% of Revenue

    5.2 %     9.3 %                

 

                   

Change

 

DISTRIBUTION

 

FY 2026 Q1

   

FY 2025 Q1

   

$'s

   

%

 

Distribution Revenue

  $ 27,280     $ 22,929     $ 4,351       19.0 %

Cost of Revenue

    17,668       15,157       2,511       16.6 %

Gross Profit

  $ 9,612     $ 7,772     $ 1,840       23.7 %

Gross Margin

    35.2 %     33.9 %                
                                 

Selling, Marketing & Warehouse Expenses

  $ 3,650     $ 3,498     $ 152       4.3 %

General and Administrative Expenses

    3,191       3,265       (74 )     (2.3 )%

Operating Income

  $ 2,771     $ 1,009     $ 1,762       174.6 %

% of Sales

    10.2 %     4.4 %                

 

                   

Change

 

TOTAL

 

FY 2026 Q1

   

FY 2025 Q1

   

$'s

   

%

 

Total Revenue

  $ 76,424     $ 66,707     $ 9,717       14.6 %

Total Cost of Revenue

    50,603       44,052       6,551       14.9 %

Gross Profit

  $ 25,821     $ 22,655     $ 3,166       14.0 %

Gross Margin

    33.8 %     34.0 %                
                                 

Selling, Marketing & Warehouse Expenses

  $ 9,516     $ 7,801     $ 1,715       22.0 %

General and Administrative Expenses

    10,967       9,755       1,212       12.4 %

Operating Income

  $ 5,338     $ 5,099     $ 239       4.7 %

% of Revenue

    7.0 %     7.6 %