Transcat Inc 2024年度报告

Fiscal 2025 Annual Report Dear Shareholders, Fiscal 2025 demonstrated resilience in our core calibration business despite the challengeswe faced with Transcat Solutions (Nexa). The year was impacted by numerous macro-economic and political headwinds, but Transat saw consistent demand for our calibrationservices. We continue to be focused on executing our long-term strategy, which is highlighted by thefollowing results: xAcquired Martin Calibration, which establishes Transcat’s presence in the UpperMidwest, including MinneapolisxRecord Revenue and Gross Profit levelsxConsolidated revenue of $278.4 million, up 7% from prior yearxService segment revenue grew 7%x64 consecutive quarters of year-over-year quarterly Service growth –16 straight years!xDistribution revenue grew 8% led by growth in RentalsxNet income of $14.5 million, up 6% from prior yearxRecord adjusted EBITDA1of $39.7 million, up 3% from prior yearxRecord Operating Free Cash Flow1of $25.4 million, up 31% from prior year Recurring revenue streams, driven by regulation, continue to drive growth in our Servicessegment The Service segment achieved high single digit organic revenue growth in fiscal 2025, whennormalized for the 53rdweek in the prior year and excluding Transcat Solutions. Our corecalibration services business continues to benefit from recurring revenue streams and thestrategic decision to increase exposure to highly regulated end markets, including lifesciences, which represents approximately 60% of Service revenue. We target markets wherethe cost of failure is high and where our unique high-end mission critical service offeringsresonate the most. Transcat Solutions was a challenge for us in fiscal 2025, but we believe theissues are isolated and we have the appropriate focus and attention in place to stabilize thebusiness in advance of returning it to growth. The Distribution segment achieved 8% revenue growth, driven by growth in rentals, with theaddition of Becnel Rental Tools to the Transcat family. We expect Distribution margins tocontinue to expand as the business further mixes towards the higher margin rental business. Successful in achieving both organic and inorganic growth Organic and inorganic growth are both key contributors to Transcat’s long-term success andremain part of our future growth strategy. Historically achieving high single digit organicgrowth, combined with strategic acquisitions, has resulted in the achievement of consistent,sustained growth over time. We believe this strategy, which is supported by a robustacquisition pipeline, and our team’s execution will continue to serve us well in the comingyears. Martin Calibration is the largest acquisition in Transcat’s history and establishes a presence inthe highly coveted Minneapolis area. This acquisition is tightly aligned and very complimentaryto Transcat’s core calibration business. The talented Martin team brings industry leadingphysical and dimensional calibration expertise and provides a tremendous platform for growthin the upper Midwest. A Long-Term track record of profitable growth driven by strong execution, continuousimprovement, and leadership development Transcat has demonstrated the ability to grow the top line and expand profitability over thepast decade and a half. We will continue to leverage automation and continuous processimprovement to maximize the inherent leverage in our Services operating model and increaseService gross margins over time. We recruit and hire top talent to ensure we have the rightteam in place to continue to execute our long-term strategy and position the company forongoing, sustainable industry leading performance. As we look ahead to fiscal 2026, we have built a strong foundation of recurring revenuestreams in highly regulated end markets, including life sciences, which we believe hold up inall types of macro-economic cycles. We enter the year facing macroeconomic headwinds butare confident in our long-term strategy and believe that our business will show resilience andreturn to historic growth levels, when the economy normalizes. On behalf of the Transcat Board and employees, thank you for your continued interest andinvestment in Transcat. Sincerely, Lee D. Rudow President and Chief Executive Officer CAUTIONARYNOTEREGARDINGFORWARDLOOKINGSTATEMENTS:Thisannual report contains“forward-lookingstatements”within the meaning of thePrivate Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, estimates, beliefs,assumptionsand predictions of future events and areidentified by words such as “believe,” “estimate,” “expect,”“may,” “focus,” “should,” “strategy,” “target,” “will,” andother similar words. Forward-looking statements are notstatements of historical fact and thus are subject to risks,uncertainties and other factors that could cause actual resultsto differ materially from historical results or those expressed in such forward-looking statements. You should evaluateforward