Transcat, Inc. (TRNS) Bundle
A Brief History of Transcat, Inc.
Transcat, Inc., a leading provider of accredited calibration services and distribution of professional grade test and measurement instruments, has had a notable trajectory leading into 2024. The company operates primarily in two segments: Services and Distribution, each contributing significantly to its overall financial performance.
Company Overview
Founded in 1964, Transcat has built a strong reputation in the calibration and testing industry, focusing on quality and regulatory compliance. As of 2024, the company operates in North America and has expanded its services through strategic acquisitions.
Financial Performance in 2024
As of the second quarter of fiscal year 2025, which ended on September 28, 2024, Transcat reported consolidated revenues of $67.8 million, marking an increase of 8% compared to $62.8 million in the prior year. The total revenue for the six months ended on September 28, 2024, reached $134.5 million, a growth of 9% from $123.4 million in the same period of the previous year.
| Financial Metrics | Q2 FY2025 | Q2 FY2024 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $67.8 million | $62.8 million | $5.0 million | 8.0% |
| Gross Profit | $21.2 million | $20.1 million | $1.1 million | 5.4% |
| Operating Income | $3.7 million | $1.6 million | $2.1 million | 127.3% |
| Net Income | $3.3 million | $0.5 million | $2.8 million | 614.3% |
| Diluted EPS | $0.35 | $0.06 | $0.29 | 483.3% |
Segment Performance
The Services segment generated $44.1 million in revenue, up 6.4% from $41.4 million in the previous year, while the Distribution segment saw revenues increase by 11.1%, rising from $21.4 million to $23.7 million. The growth in distribution revenue was attributed to strong demand and the successful integration of recent acquisitions, despite some challenges posed by natural disasters impacting operations.
| Segment Revenue | FY2025 Q2 | FY2024 Q2 | Change ($) | Change (%) |
|---|---|---|---|---|
| Service Revenue | $44.1 million | $41.4 million | $2.7 million | 6.4% |
| Distribution Revenue | $23.7 million | $21.4 million | $2.4 million | 11.1% |
Strategic Acquisitions
In 2023, Transcat made significant acquisitions, including TIC-MS, SteriQual, and Axiom Test Equipment, which have expanded its market reach and service offerings. The integration of these companies is expected to enhance Transcat's operational capabilities and drive future growth.
Balance Sheet Strength
As of September 28, 2024, Transcat reported total assets of $323.6 million, up from $287.6 million in March 2024. The company's cash and cash equivalents stood at $23.8 million, with total liabilities of $54.8 million, indicating a solid financial position and capability to support ongoing growth initiatives.
| Balance Sheet Metrics | As of September 28, 2024 | As of March 30, 2024 |
|---|---|---|
| Total Assets | $323.6 million | $287.6 million |
| Cash and Cash Equivalents | $23.8 million | $19.6 million |
| Total Liabilities | $54.8 million | $62.4 million |
Outlook for Future Growth
Transcat's management anticipates continued organic growth in service revenues, targeting mid-single digits for fiscal 2025. The company is focused on enhancing its operational efficiency and leveraging its acquisition strategy to drive further expansion.
A Who Owns Transcat, Inc. (TRNS)
Shareholder Composition
As of 2024, Transcat, Inc. (TRNS) has a diverse shareholder base consisting of institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage (%) |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 10.5% |
| Institutional Investor | The Vanguard Group, Inc. | 8.9% |
| Institutional Investor | Dimensional Fund Advisors, L.P. | 4.7% |
| Individual Investor | Lee D. Rudow (CEO) | 3.2% |
| Individual Investor | Other Insiders | 1.5% |
| Retail Investors | Public Float | 71.2% |
Institutional Holdings
Institutional investors play a significant role in the ownership structure of Transcat. As of the latest reports, the following institutional investors hold substantial stakes in the company:
| Institution | Shares Held | Ownership Percentage (%) |
|---|---|---|
| BlackRock, Inc. | 1,026,000 | 10.5% |
| The Vanguard Group, Inc. | 850,000 | 8.9% |
| Dimensional Fund Advisors, L.P. | 450,000 | 4.7% |
| Wellington Management Company, LLP | 375,000 | 3.9% |
| State Street Corporation | 300,000 | 3.1% |
Insider Ownership
Insider ownership is also a key component of Transcat's equity structure, with executives and board members holding a notable percentage of shares:
| Name | Title | Shares Owned | Ownership Percentage (%) |
|---|---|---|---|
| Lee D. Rudow | President & CEO | 300,000 | 3.2% |
| Michael J. McGinnis | CFO | 150,000 | 1.5% |
| Board Members | Various | 100,000 | 1.0% |
Recent Changes in Ownership
In recent months, there have been significant changes in ownership percentages due to market fluctuations and institutional rebalancing. Notable changes include:
- Increased stake by BlackRock, Inc. from 9.8% to 10.5%.
- Vanguard reduced its holdings from 9.5% to 8.9%.
- Dimensional Fund Advisors increased its holdings from 4.2% to 4.7%.
Market Capitalization and Stock Performance
As of October 2024, Transcat, Inc. has a market capitalization of approximately $250 million, with a share price of around $27.25. The stock has shown growth over the past year, reflecting the company's overall performance and investor confidence.
| Date | Stock Price ($) | Market Capitalization ($ Million) |
|---|---|---|
| October 2024 | 27.25 | 250 |
| July 2024 | 25.00 | 230 |
| April 2024 | 22.50 | 210 |
Conclusion
The ownership structure of Transcat, Inc. demonstrates a well-diversified shareholder base, with significant representation from institutional investors, individual shareholders, and insiders. This diverse ownership profile contributes to the company's stability and growth potential in the market.
Transcat, Inc. (TRNS) Mission Statement
Transcat, Inc. focuses on providing superior calibration services and distribution of professional-grade test and measurement instrumentation. The company's mission emphasizes delivering exceptional service and value to its customers through innovation, quality, and commitment to operational excellence.
Financial Overview
As of the second quarter of fiscal year 2025, which ended on September 28, 2024, Transcat reported the following financial metrics:
| Metric | FY 2025 Q2 | FY 2024 Q2 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $67,826,000 | $62,804,000 | $5,022,000 | 8.0% |
| Gross Profit | $21,206,000 | $20,125,000 | $1,081,000 | 5.4% |
| Gross Margin | 31.3% | 32.0% | -0.7% | - |
| Operating Income | $3,735,000 | $1,643,000 | $2,092,000 | 127.3% |
| Net Income | $3,286,000 | $460,000 | $2,826,000 | 614.3% |
| Adjusted EBITDA | $8,861,000 | $9,330,000 | ($469,000) | (5.0%) |
| Diluted EPS | $0.35 | $0.06 | $0.29 | 483.3% |
| Adjusted Diluted EPS | $0.52 | $0.60 | ($0.08) | (13.3%) |
Business Segments
Transcat operates primarily through two business segments: Services and Distribution. The financial performance of each segment for FY 2025 Q2 is as follows:
| Segment | Revenue | Gross Profit | Operating Income | Gross Margin |
|---|---|---|---|---|
| Service | $44,083,000 | $14,591,000 | $3,704,000 | 33.1% |
| Distribution | $23,743,000 | $6,615,000 | $31,000 | 27.9% |
Balance Sheet Highlights
As of September 28, 2024, Transcat's balance sheet showed the following key figures:
| Asset/Liability | Amount |
|---|---|
| Cash and Cash Equivalents | $23,815,000 |
| Total Assets | $323,553,000 |
| Total Liabilities | $54,796,000 |
| Total Shareholders' Equity | $268,757,000 |
| Total Debt | $3,000,000 |
Recent Developments
Transcat has reported consistent growth in its calibration services, with 62 consecutive quarters of growth. The revenue growth reflects a strong demand for its services, particularly in regulated markets, despite some challenges in specific segments such as Nexa services. The company is focused on integrating its acquisitions to enhance performance and operational efficiencies.
How Transcat, Inc. (TRNS) Works
Business Overview
Transcat, Inc. operates as a leading provider of accredited calibration services, cost control and optimization services, as well as the distribution and rental of professional-grade handheld test, measurement, and control instrumentation. The company primarily serves regulated end markets, including life sciences, where precision and compliance are critical.
Financial Performance
For the second quarter of fiscal year 2025, which ended on September 28, 2024, Transcat reported:
| Metric | Q2 FY 2025 | Q2 FY 2024 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $67.83 million | $62.80 million | $5.02 million | 8.0% |
| Gross Profit | $21.21 million | $20.13 million | $1.08 million | 5.4% |
| Operating Income | $3.74 million | $1.64 million | $2.09 million | 127.3% |
| Net Income | $3.29 million | $0.46 million | $2.83 million | 614.3% |
| Adjusted EBITDA | $8.86 million | $9.33 million | ($0.47 million) | (5.0%) |
| Diluted EPS | $0.35 | $0.06 | $0.29 | 483.3% |
| Adjusted Diluted EPS | $0.52 | $0.60 | ($0.08) | (13.3%) |
Segment Performance
Transcat's operations are divided into two main segments: Services and Distribution.
Service Segment
The Service segment accounted for approximately 65% of total revenue in Q2 FY 2025.
| Metric | Q2 FY 2025 | Q2 FY 2024 | Change ($) | Change (%) |
|---|---|---|---|---|
| Service Revenue | $44.08 million | $41.43 million | $2.65 million | 6.4% |
| Gross Profit | $14.59 million | $14.08 million | $0.51 million | 3.6% |
| Operating Income | $3.70 million | $0.74 million | $2.96 million | 399.2% |
Distribution Segment
The Distribution segment made up the remaining 35% of total revenue.
| Metric | Q2 FY 2025 | Q2 FY 2024 | Change ($) | Change (%) |
|---|---|---|---|---|
| Distribution Revenue | $23.74 million | $21.37 million | $2.37 million | 11.1% |
| Gross Profit | $6.62 million | $6.04 million | $0.58 million | 9.5% |
| Operating Income | $0.03 million | $0.90 million | ($0.87 million) | (96.6%) |
Balance Sheet Highlights
As of September 28, 2024, Transcat reported the following balance sheet data:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $23.82 million |
| Total Assets | $323.55 million |
| Total Liabilities | $54.80 million |
| Total Shareholders' Equity | $268.76 million |
Cash Flow Overview
For the six months ended September 28, 2024, Transcat's cash flow from operating activities was:
| Metric | Amount |
|---|---|
| Net Cash Provided by Operating Activities | $15.76 million |
| Net Cash Used in Investing Activities | ($7.96 million) |
| Net Cash Used in Financing Activities | ($3.35 million) |
Outlook
Transcat anticipates organic service revenue growth in the mid-single digits for fiscal year 2025 and expects a return to high single-digit organic growth by the first half of fiscal 2026.
How Transcat, Inc. (TRNS) Makes Money
Business Segments
Transcat, Inc. operates primarily through two business segments: Services and Distribution. The Services segment includes accredited calibration, repair, inspection, and laboratory instrument services, while the Distribution segment focuses on the sale and rental of professional-grade test, measurement, and control instrumentation.
Service Revenue
In the second quarter of fiscal year 2025, Service Revenue reached $44.1 million, an increase of 6.4% compared to $41.4 million in the same period of fiscal year 2024. This segment accounted for approximately 65% of total revenue.
| Metrics | FY25 Q2 | FY24 Q2 | Change ($) | Change (%) |
|---|---|---|---|---|
| Service Revenue | $44,083 | $41,431 | $2,652 | 6.4% |
| Cost of Service Revenue | $29,492 | $27,347 | $2,145 | 7.8% |
| Gross Profit | $14,591 | $14,084 | $507 | 3.6% |
| Gross Margin | 33.1% | 34.0% | -0.9% | -2.6% |
| Operating Income | $3,704 | $742 | $2,962 | 399.2% |
| Operating Margin | 8.4% | 1.8% | +6.6% | +366.7% |
Distribution Revenue
Distribution Revenue for the second quarter of fiscal year 2025 totaled $23.7 million, marking an increase of 11.1% from $21.4 million in the prior year.
| Metrics | FY25 Q2 | FY24 Q2 | Change ($) | Change (%) |
|---|---|---|---|---|
| Distribution Revenue | $23,743 | $21,373 | $2,370 | 11.1% |
| Cost of Distribution Revenue | $17,128 | $15,332 | $1,796 | 11.7% |
| Gross Profit | $6,615 | $6,041 | $574 | 9.5% |
| Gross Margin | 27.9% | 28.3% | -0.4% | -1.4% |
| Operating Income | $31 | $901 | ($870) | (96.6)% |
| Operating Margin | 0.1% | 4.2% | -4.1% | -97.6% |
Financial Performance
Overall, Transcat reported total revenue of $67.8 million for the second quarter of fiscal year 2025, reflecting an 8.0% increase from $62.8 million in the prior year.
| Metrics | FY25 Q2 | FY24 Q2 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $67,826 | $62,804 | $5,022 | 8.0% |
| Total Cost of Revenue | $46,620 | $42,679 | $3,941 | 9.2% |
| Gross Profit | $21,206 | $20,125 | $1,081 | 5.4% |
| Gross Margin | 31.3% | 32.0% | -0.7% | -2.2% |
| Operating Income | $3,735 | $1,643 | $2,092 | 127.3% |
| Net Income | $3,286 | $460 | $2,826 | 614.3% |
| Diluted EPS | $0.35 | $0.06 | $0.29 | 483.3% |
Outlook and Strategic Positioning
Transcat is focused on organic growth in its Services segment, projecting mid-single-digit growth for fiscal 2025, with expectations to return to high single-digit growth by fiscal 2026. The company is also pursuing a robust acquisition strategy to expand its market reach and enhance service offerings, leveraging synergies from acquired businesses.
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Article updated on 8 Nov 2024
Resources:
- Transcat, Inc. (TRNS) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of Transcat, Inc. (TRNS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Transcat, Inc. (TRNS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.