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Transcat(TRNS) - 2025 Q3 - Quarterly Results
TRNSTranscat(TRNS)2025-01-28 14:00

Revenue Performance - Consolidated revenue for Q3 FY2025 was 66.8million,anincreaseof66.8 million, an increase of 1.6 million or 2.4% compared to Q3 FY2024[6] - Service revenue was 41.6million,flatyear−over−yearwithaslightincreaseof41.6 million, flat year-over-year with a slight increase of 48, while distribution revenue grew by 1.5millionor6.51.5 million or 6.5% to 25.2 million[5][13] - Total revenue for the first nine months of FY2025 was 201.3million,anincreaseof201.3 million, an increase of 12.7 million or 6.7% compared to the same period last year[14] - Total revenue for Q3 of Fiscal 2025 was 66,754million,representinga2.466,754 million, representing a 2.4% increase from 65,166 million in Q3 of Fiscal 2024[40] - Service Revenue for FY 2025 reached 129,418million,anincreaseof5.4129,418 million, an increase of 5.4% from FY 2024's 122,793 million[42] - Distribution Revenue for FY 2025 was 71,869million,reflectinga9.371,869 million, reflecting a 9.3% growth compared to FY 2024's 65,775 million[42] - Total Revenue for FY 2025 amounted to 201,287million,up6.7201,287 million, up 6.7% from 188,568 million in FY 2024[42] Profitability Metrics - Gross profit decreased by 1.3millionor6.01.3 million or 6.0% to 19.7 million, with gross margin dropping to 29.5% from 32.1%[7] - Operating income fell by 51.1% to 2.1million,withoperatingmargindecreasingto3.12.1 million, with operating margin decreasing to 3.1%[6] - Net income per diluted share was 0.25, down from 0.38,representingadeclineof34.20.38, representing a decline of 34.2%[7] - Adjusted EBITDA was 7.9 million, a decrease of 1.2millionor13.21.2 million or 13.2%, with an adjusted EBITDA margin of 11.9%[7] - Gross profit for the third quarter was 19.679 million, down 6.0% from 20.936millionintheprioryear[28]−OperatingIncomeforFY2025increasedto20.936 million in the prior year[28] - Operating Income for FY 2025 increased to 10,934 million, a rise of 3.4% from 10,577millioninFY2024[42]−GrossProfitforFY2025was10,577 million in FY 2024[42] - Gross Profit for FY 2025 was 63,540 million, representing a 6.3% increase from FY 2024's 59,771million[42]−GrossMarginforFY2025slightlydecreasedto31.659,771 million[42] - Gross Margin for FY 2025 slightly decreased to 31.6% from 31.7% in FY 2024[42] Expenses and Costs - Selling, Marketing & Warehouse Expenses rose to 24,101 million in FY 2025, a 15.6% increase from 20,844millioninFY2024[42]−GeneralandAdministrativeExpensesforFY2025were20,844 million in FY 2024[42] - General and Administrative Expenses for FY 2025 were 28,505 million, showing a marginal increase of 0.5% from 28,350millioninFY2024[42]−CostofRevenueforTotaloperationsincreasedto28,350 million in FY 2024[42] - Cost of Revenue for Total operations increased to 137,747 million, up 6.9% from 128,797millioninFY2024[42]DebtandAssets−AsofDecember28,2024,totaldebtwas128,797 million in FY 2024[42] Debt and Assets - As of December 28, 2024, total debt was 41.9 million, with a leverage ratio of 0.97[16] - Total assets increased to 386.009millionasofDecember28,2024,from386.009 million as of December 28, 2024, from 287.552 million as of March 30, 2024[30] Strategic Initiatives - The acquisition of Martin Calibration, which has revenue exceeding 25million,isexpectedtoenhancegeographicreachandcapabilities[4]−Transcatplanstoexpanditsaddressablecalibrationmarketthroughacquisitionsandcapabilityinvestments[24]−Thecompanyoperatesoutofmorethan50locations,including33CalibrationServiceCentersacrosstheU.S.,PuertoRico,Canada,andIreland[22]−Transcat′sstrategyincludesleveragingitsstrongbrandanduniquevaluepropositiontodriveorganicsalesgrowth[24]IncomeSummary−NetincomefortheninemonthsendedDecember28,2024,was25 million, is expected to enhance geographic reach and capabilities[4] - Transcat plans to expand its addressable calibration market through acquisitions and capability investments[24] - The company operates out of more than 50 locations, including 33 Calibration Service Centers across the U.S., Puerto Rico, Canada, and Ireland[22] - Transcat's strategy includes leveraging its strong brand and unique value proposition to drive organic sales growth[24] Income Summary - Net income for the nine months ended December 28, 2024, was 10.051 million, compared to 6.757millionforthesameperiodin2023,representinga48.06.757 million for the same period in 2023, representing a 48.0% increase[32] - Net income for Q1, Q2, and Q3 of Fiscal 2025 totaled 10,051 million, with Q1 at 4,408million,Q2at4,408 million, Q2 at 3,286 million, and Q3 at 2,357million[34]−AdjustednetincomeforQ3ofFiscal2025was2,357 million[34] - Adjusted net income for Q3 of Fiscal 2025 was 4,154 million, with adjusted diluted earnings per share at 0.45[38]ShareMetrics−Thecompanyreportedatotalof9,243millionaveragedilutedsharesoutstandingforFiscal2025YTD[38]−Basicearningspershareforthethirdquarterwas0.45[38] Share Metrics - The company reported a total of 9,243 million average diluted shares outstanding for Fiscal 2025 YTD[38] - Basic earnings per share for the third quarter was 0.26, down from $0.39 in the previous year[28]