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Transmation boosts authorized shares

For the first time in the company’s 30-year history, Transmation Inc. today got shareholder approval to boost the number of common shares it is authorized to issue, making it possible to act quickly on potential acquisitions.
More than 70 shareholders, employees and company officials crowded the Hutchinson House this afternoon, where they passed several other proposals and heard a state-of-the-company address from President and CEO Robert Klimasewski.
The message was upbeat. Transmation cruised through the year with record net income and sales, reporting profits of $1.2 million, or 49 cents a share, on sales of $38.5 million for fiscal 1996 ended March 31.
With profitability strong, this year Transmation will turn its attention on sales, Klimasewski said. Specifically, the firm hopes to grow the market share of its Transcat catalog division and crank up international sales.
Last year, Asian sales faltered “because I made a poor decision” to separate international business from the other divisions of the company, Klimasewski said. The firm is back on track now that Transcat and the instrument division again have responsibility for managing their exports, he said.
Cost control also is a priority, Klimasewski said. For example, Transcat’s president, Barry Wharity, began holding “dumb meetings” to identify and eliminate the dumb things that cost the company money. So far, suggestions from such meetings have saved Transmation $100,000, Klimasewski said.
In response to a shareholder query, Klimasewski insisted “the company is not for sale.” Transmation was on the block in 1993, but the board took it off the market the following year, soon after Klimasewski became president.
However, Klimasewski said that if any company were interested in acquiring Transmation, he might suggest forming a strategic partnership instead.
Transmation, which bought Altek Industries Corp. in April, still is hunting for acquisitions, Klimasewski said. That might include a business-to-business reseller like Transcat, he added.
During the meeting, shareholders voted to increase the number of authorized common shares from 8 million to 15 million. Other proposals were passed that reduced the eligibility requirement for the firm’s employee stock-purchase plan from one year to six months, and increased the number of shares available under the company’s stock-option plan from 400,000 to 600,000.
Shareholders also elected three directors for terms expiring in 1999. They are Angelo Chiarella, president of Midtown Holdings Corp. and a director since 1967; John Oberlies, chief operating officer of Rochester Individual Practice Association Inc. and a director since 1987; and first-time director Lee Garelick, former Altek president and co-owner. Garelick replaces William Berk, Transmation’s founder and former CEO who resigned his director’s post in June.
Transmation stock was trading this afternoon on the NASDAQ exchange at $8.38, unchanged from yesterday’s close.

Transmation boosts authorized shares

For the first time in the company’s 30-year history, Transmation Inc. today got shareholder approval to boost the number of common shares it is authorized to issue, making it possible to act quickly on potential acquisitions.

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