Transcat, Inc. 35 Vantage Point Drive Rochester NY 14624 Phone: (585) 3527777
Transcat Reports 46.2% Increase in Operating Income on Record Net
Revenue for Fourth Quarter Fiscal 2010
||Product sales increased 20.5% and generated $0.7 million in operating profit
||Service segment revenue grew 30.6% and generated $0.6 million in operating profit
||Net income increased by 56.3% to $0.9 million
||Significant liquidity: Generated $5.6 million in cash from operations in fiscal 2010
ROCHESTER, NY, May 20, 2010 Transcat, Inc. (Nasdaq: TRNS), a leading global distributor of
professional grade handheld test and measurement instruments and accredited provider of
calibration, repair and weighing system services, today reported financial results for its 2010
fiscal fourth quarter ended March 27, 2010.
Net revenue in the fourth quarter of fiscal 2010 was $23.5 million, an increase of 24.1% when
compared with net revenue of $19.0 million in the fourth quarter of fiscal 2009. Service segment
net revenue, which represented 37.5% of total net revenue, increased $2.1 million, or 30.6%, to
$8.8 million in the fourth quarter of fiscal 2010, when compared with net revenue of $6.7 million
in the prior year fourth quarter. Product segment net sales, representing the Companys
distribution business, were
$14.7 million for the fourth quarter of fiscal 2010, an increase of $2.5 million, or 20.5%, when
compared with net sales of $12.2 million in the same period of the prior fiscal year.
Net income was $0.9 million, or $0.12 per diluted share, in the fourth quarter of fiscal 2010, an
increase from net income of $0.6 million, or $0.07 per diluted share, for the same period of the
prior fiscal year. Net income was positively impacted by increased operating profits in excess of
40% in both of the Companys Product and Service segments.
Charles P. Hadeed, President, CEO and COO of Transcat, commented, We delivered outstanding results
for the fourth quarter of fiscal 2010, reflective of the inherent strength of Transcats business
strategy. The depth of our product and service offerings, coupled with our operational discipline,
positioned us to better withstand a challenging macroeconomic environment, and to ultimately
continue to build on the evidence of economic recovery we saw initiated in our third quarter. Mr.
Hadeed added, Fourth quarter net revenue of $23.5 million is a record for the Company. Gross
margin expansion in our Product segment and increased service volume were leveraged into
significantly stronger operating and net income.
Quarter Fiscal 2010 Review
On January 27, 2010, the Company acquired United Scale & Engineering Corporation (United), which
is headquartered in Milwaukee, WI, with locations in Madison and Green Bay. United is Wisconsins
largest independent supplier and servicer of industrial scales and weighing systems, serving
Wisconsin, Northern Illinois and Upper Michigan. Strategically, the acquisition expands Transcats
footprint in the Midwest and provides an additional cash-generating business. The Companys
results for the fourth quarter of fiscal 2010 include eight weeks of operations for United.
In the fourth quarter of fiscal 2010, gross profit was $6.4 million, or 27.3% of net revenue,
compared with $5.0 million, or 26.6% of net revenue, in the same period of the prior fiscal year.
Both the Product and Service segments contributed to the increase in gross profit, with respective
increases of 29.1% and 25.4% for the quarter.
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