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Transcat, Inc. 35 Vantage Point Drive Rochester NY 14624 Phone: (585) 352-7777
Transcat Reports Fourth Quarter and Fiscal 2016 Results
|●||Achieved record fourth quarter and full year Service
segment revenue of $17.6 million and $59.2 million,
|●||Distribution segment continued to face
|●||Achieved operating income of $6.3 million for full
|●||Enhanced capabilities and geographic coverage through strategic acquisitions|
ROCHESTER, NY, May 17, 2016 Transcat, Inc. (NASDAQ: TRNS) (Transcat or the Company), a leading provider of accredited calibration and compliance services and value-added distributor of professional grade handheld test, measurement and control instrumentation, today reported financial results for its fourth quarter and fiscal year ended March 26, 2016.
The continued execution of our acquisition and organic growth strategy resulted in Service segment revenue growing 21.4% for the quarter and 14.3% for the full-year when compared with fiscal 2015. Importantly, the Service segment marked a milestone in the quarter by surpassing the Distribution segment in revenue, further validating Service as our primary driver of growth and profitability, commented Lee D. Rudow, President and CEO.
The market provided a number of opportunities on the acquisition front in fiscal 2016. We completed strategic acquisitions during the year and, just subsequent to our fiscal year-end, that increased our presence in Southern California and Canada, provided us important new Service capabilities in key biomedical and radio frequency/microwave markets, and entered us into the used equipment sales market. However, reported results have not yet realized the full potential of these acquisitions as we absorbed the incremental expenses associated with the acquired businesses and one-time acquisition costs for each. These expenses, along with higher variable performance-based compensation from strong Service segment performance, tempered our fourth quarter and fiscal 2016 earnings.
Mr. Rudow added, In a year where we faced headwinds from volatility in the oil and gas sector as well as from the impact of the strong U.S. dollar on industrial output, we believe we made wise advances in both our operating segments, generated operating income and cash, and are well-positioned to capitalize on future growth opportunities in fiscal 2017.
Fourth Quarter Fiscal 2016 Review (Results are compared with the fourth quarter of fiscal 2015)
Fourth quarter total revenue was $32.9 million, an increase of $0.5 million, or 1.6%, over the prior-year quarter. Service segment revenue grew $3.1 million, or 21.4%, while Distribution segment sales declined $2.6 million, or 14.4%.
Performance-based compensation expenses increased $0.7 million over the prior-year quarter due to the achievement of certain targets within the Service segment, of which $0.2 million was included in cost of services sold and the remainder was included in operating expenses. As a result, total gross profit of $8.5 million was consistent with the prior-year quarter and gross margin was 26.0%, down 30 basis points.
The following information was filed by Transcat Inc (TRNS) on Wednesday, May 18, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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