Transcat Inc. on Tuesday reported a jump in fiscal fourth-quarter revenue, but a decline in net income.
Transcat logged revenue for the quarter ended March 25 of $38.5 million, compared with $32.9 million in the fourth quarter last year. Net income for the quarter was $1.43 million, or 20 cents a diluted share, down from $1.58 million, or 22 cents a share, a year ago.
The company’s distribution segment sales were $18.9 million, up nearly 24 percent from $15.3 million a year ago. Transcat’s service segment logged revenue of $19.5 million, up from $17.6 million.
For the full year, Transcat reported record revenue of $143.9 million, up nearly 18 percent from $122.2 million a year ago. Net income was $4.52 million, or 64 cents a share, compared with $4.12 million, or 58 cents, a year ago.
“Our fourth quarter provided a strong finish to our fiscal year, which ended with record annual revenue and net income,” President and CEO Lee Rudow said.
The Gates company’s service segment increase was driven by high single-digit organic growth, Rudow said. Transcat’s distribution segment growth was from the company’s core end-user customers, primarily those in the alternative energy and U.S. industrial markets, as well as growth attributed to the company’s acquisition of Excalibur Engineering Inc. last April.
Transcat expects revenue of $175 to $200 million over the next three to four years, and anticipates spending $6 million to $6.5 million on IT infrastructure investments, as well as maintenance and asset replacements.
“We entered fiscal 2018 with excellent momentum and high expectations,” Rudow said. “During the past year, we made important, strategic investments in physical assets, as well as in leadership that we expect to help advance Transcat and our long-term strategy.”
Shares of company stock (Nasdaq: TRNS) were trading midday Wednesday at $11.80, down 2.5 percent from Tuesday’s close of $12.35.
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