Please ensure Javascript is enabled for purposes of website accessibility

Tag: transcat

Transcat sales, income soar in second quarter

Rochester’s Transcat Inc., a supplier of accredited calibration, repair, inspection and laboratory instrument services, on Tuesday reported a drastically improved second-quarter, beating analyst estimates.

For the second quarter ended Sept. 25, Transcat reported sales of $50.3 million, up 21 percent from $41.6 million in the year-ago quarter. Net income for the quarter was $3.01 billion, up 49 percent from $2.02 billion in the same quarter of 2020. On a per-share basis, earnings were up from 27 cents in the year-ago quarter to 40 cents in the second quarter this year.

“Our excellent second-quarter results were driven by broad-based revenue strength and solid operational execution across both of our operating segments,” said President and CEO Lee Rudow. “Our Service segment revenue grew 20.3 percent and gross margin increased 70 basis points to a second-quarter record of 32.9 percent. We reported 14 percent organic revenue growth as demand in our highly regulated end markets, including life sciences, remained strong. We are pleased with the continued expansion of our gross margin, which was largely driven by operating leverage on our fixed costs from organic growth.”

Results included the previously reported acquisitions of BioTek Services Inc. on Dec. 16, 2020, Upstate Metrology on April 29, 2021, and Cal OpEx Ltd., dba NEXA, on Aug. 31, 2021.

“We are excited with the early progress made on our recent acquisition of NEXA Enterprise Asset Management. NEXA expands our reach into the attractive market for asset management services and its unique capabilities around managing cost, efficiency and the reliability components of life science companies’ instrumentation programs is a natural complement to our core calibration offerings,” Rudow said. “We are confident this enhances our overall value proposition to current and future customers and the NEXA and Transcat teams have already worked together to identify several synergistic growth opportunities.”

Service revenue in the second quarter grew more than 20 percent to $29.5 million, while distribution sales grew more than 22 percent to $20.8 million. Organic revenue growth was 14 percent and was driven by improvement in end-market conditions, continued market share gains and an easier comparison over the prior-year quarter, which was impacted by the pandemic, officials said.

Shares of company stock (Nasdaq: TRNS) opened Tuesday at $76.42 and by midmorning Wednesday had climbed to $80.87.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Transcat acquires Ireland firm

Rochester’s Transcat Inc. has expanded its life science service capabilities into Ireland with the acquisition of NEXA Enterprise Asset Management.

The purchase price of $22.5 million consisted of $20.25 million in cash and $2.25 million in Transcat common stock (Nasdaq: TRNS). In addition, there are potential earn-out payments of up to $7.5 million over the next four years based on NEXA achieving certain annual sales goals. If achieved, the earn-out payments will be made in common stock.

“We are joining Transcat at an exciting time in our company’s young history as we have experienced rapid growth over the last several years,” said NEXA President and CEO John Cummins, who will continue to lead the business and report directly to Transcat President and CEO Lee Rudow. “We believe our growth-oriented employee mindset will fit well with Transcat’s established culture and the combination of the two companies will further accelerate our growth trajectory.”

The company, founded in 2015 as Cal Opex Ltd., provides calibration optimization and other technical solutions to improve asset and reliability management programs to pharmaceutical, biotechnology and medical device companies worldwide. NEXA has 65 employees and $7.5 million in annual revenue, with roughly 70 percent based in the U.S. and 30 percent in Ireland.

“NEXA is a natural strategic fit with our growth strategy as it expands our reach into the attractive market for asset and reliability management services and strengthens our position in the life science sector for calibration services,” Rudow said. “NEXA has developed a truly unique approach to managing cost, efficiency and the underserved reliability components of life science companies’ instrumentation management programs.”

Rudow said NEXA’s approach is believed to be scalable and transferrable to other highly-regulated industries that Transcat competes in, such as aerospace and defense.

“This broad range of high-quality solutions will be a perfect complement to our core calibration services offering and will provide synergistic revenue growth opportunities for both businesses,” Rudow added.

Shares of company stock were trading at $67.81 midday Wednesday, up from Monday’s open at $66.70.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Transcat reports strong Q1 results

Transcat Inc. on Tuesday reported record first-quarter results, beating Wall Street estimates.

For the first quarter ended June 26, the Rochester provider of accredited calibration, repair, inspection and laboratory instrument services posted revenues of $47.79 million, up nearly 23 percent from $38.9 million in the year-ago quarter. Net income for the quarter was $3.69 billion, up from $798 million in the first quarter of fiscal 2021. Diluted earnings per share increased to 49 cents from 11 cents.

Analysts had expected earnings of 25 cents on sales of $44.42 million.

Lee Rudow
Lee Rudow

“The start to our fiscal year 2022 was very strong and allowed us to achieve record first-quarter revenue, gross margin, operating income and EBITDA,” said Transcat President and CEO Lee Rudow. “Our service segment continued to perform at a high level, growing revenue 20 percent and increasing gross margin 540 basis points from the prior-year period. We reported 16.6 percent organic revenue growth as our highly-regulated end markets, including life sciences, remained strong, and we compared against a COVID-19 impacted prior-year quarter. Our gross margin improvement was driven by operating leverage on our fixed costs from the strong organic growth and to a lesser degree continued strong technician productivity.”

At the end of the first quarter, the company had $27.9 million available for borrowing under its secured revolving credit facility. Total debt of $22.2 million was up $2.6 million from fiscal 2021 year-end.

“Cash flow from operations in the first quarter was in line with our expectations and our balance sheet remains strong,” Rudow said. “We recently announced an amendment to our credit facility which favorably updates certain terms and increases our available revolving line of credit from $40 million to $80 million to support future growth investments and a robust acquisition pipeline.”

Rudow added: “For the second quarter of fiscal 2022, we expect service organic growth to be similar to what we achieved in the first quarter. We expect more modest improvement in service gross margin than we have experienced over the last several quarters, largely due to a more difficult technician productivity comparison versus the second quarter of fiscal 2021. Distribution is expected to achieve high teens growth in the second quarter on improved order trends and a prior-year comparison that includes lower levels of demand due to the COVID-19 pandemic.”

Shares of company stock (Nasdaq: TRNS) spiked early Wednesday but by mid-afternoon had settled at $60.40.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Transcat shares soar on record Q4 sales

Rochester’s Transcat Inc. on Tuesday reported record sales and operating income for the fourth quarter, beating Wall Street estimates.

For the quarter ended March 27, the manufacturer reported revenue of $48.8 million, a nearly 7 percent increase from $45.8 million in the fourth quarter last year. Net income for the quarter increased nearly 29 percent from $2.5 million to $3.2 million. On a per-share basis, earnings were 42 cents, compared with 33 cents in the year-ago quarter.

Earnings beat Street estimates by 10 cents, while sales topped expectations by $2.58 million.

Lee Rudow
Lee Rudow

“Our fourth-quarter results were stronger than expected and allowed us to achieve record fourth-quarter and full-year revenue, operating income and cash flow, a remarkable achievement in the midst of the global COVID-19 pandemic,” said Transcat President and CEO Lee Rudow. “Our Service segment delivered another excellent quarter, growing revenue 15.8 percent and increasing gross margin by 500 basis points from the prior-year period. We reported double-digit organic revenue growth of 10 percent as our strategy to capture share in highly regulated end markets, including Life Sciences, continues to serve us well. Our gross margin improvement was driven by technician productivity, operating leverage on our fixed costs and strong performances from our recent acquisitions.”

Distribution segment sales continued to be impacted by the pandemic, with a nearly 5 percent drop year-over-year. Rudow, however, said Transcat was encouraged by the segment’s sales, which were the best quarterly result of fiscal 2021.

“We generated cash flow from operations of $23.6 million for the full year, a company record and double the cash we generated in fiscal 2020. We used our cash to pay down debt, fund technology investments and execute our acquisition strategy,” Rudow said. “In April 2021, we acquired Upstate Metrology, a Rochester-based calibration service provider with approximately $1 million in annual revenue. We plan to leverage our current infrastructure and consolidate the business into our main Rochester lab.”

For the full year, sales were roughly flat at $173.3 million. Net income was down roughly 3 percent to $7.8 million. Income per diluted share was $1.03, compared with $1.08 in fiscal 2020.

“I am incredibly proud of the performance and dedication of the entire Transcat team in the fourth quarter and throughout fiscal 2021 as we navigated the most challenging operating environment in recent history. We enter fiscal 2022 with a strong balance sheet, sustainable Service segment gross margins and an active M&A pipeline. We are confident that our disciplined focus on highly-regulated end markets and our new customer pipeline positions us well for continued strong organic growth,” Rudow said.

Shares of company stock (Nasdaq: TRNS) spiked early Wednesday and by midday were trading up nearly 14 percent at $54.00.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Transcat posts Q3 improvement, beats Street estimates

Transcat Inc. on Tuesday reported a third-quarter operating income increase of 20 percent, with service revenue up more than 12 percent.

For the quarter ended Dec. 26, the Rochester provider of accredited calibration, repair, inspection and laboratory instrument services posted revenue of $44.1 million, up 2 percent from $43.2 million in the year-ago quarter. Net income was $1.76 million, up from $1.48 million in the same quarter last year. On a per-share basis, earnings were 23 cents, up from 20 cents a year ago.

Analysts had expected earnings of 19 cents on sales of $42.99 million.

Lee Rudow
Lee Rudow

“In an environment that continues to be significantly impacted by the COVID-19 pandemic, our third-quarter results demonstrated the resiliency of our business and effectiveness of our strategy as we delivered better than expected results,” said President and CEO Lee Rudow. “Our service segment delivered another excellent quarter, growing revenue 12.2 percent and increasing gross margin by 590 basis points from the prior-year period. We were certainly encouraged by organic growth of 5.9 percent as our strategy to capture opportunities in highly-regulated end markets, including life sciences, continues to serve us well. Our gross margin improvement was driven by technician productivity, expense reductions, operating leverage on our fixed costs and the strong performance of pipettes.com.”

Transcat’s distribution segment continues to be negatively impacted by the current market environment but performed in line with expectations, Rudow said.

“Overall, our service segment performance drove third-quarter consolidated operating income of $2.5 million, exceeding our expectations and growing 20 percent from prior year. Year-to-date cash flow from operations of $15.6 million was nearly double from prior year and was used, in part, to fund technology investments and our acquisition strategy,” he added.

The company’s pipettes.com business delivered strong results and its acquisition of
BioTek increases Transcat’s exposure to the growing pipettes market, as well as broadens its geographic footprint, Rudow noted. BioTek also gives Transcat additional on-site technician capabilities, complementing the largely in-house technician business model at pipettes.com.

“The results of the third quarter were excellent and we are pleased with our service segment’s return to organic growth and its continued margin expansion. Our balance sheet is solid and the M&A pipeline is growing and active,” Rudow said. “We are confident that our disciplined focus on highly-regulated end markets and our new customer pipeline positions us well for strong organic growth as we continue to operate in a very challenging environment.”

For the fourth quarter, Transcat expects solid service revenue growth compared with last year’s fourth quarter. The company expects an improvement in service gross margin year-over-year, but not to the same degree as experienced in the last two quarters, largely due to more difficult technician productivity comparisons and the anniversary of the company’s acquisition of pipettes.com. Distribution is expected to continue to be negatively impacted by the current operating environment.

Shares of company stock (Nasdaq: TRNS) were trading up more than 6 percent Wednesday afternoon at $40.14.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Transcat acquires Virginia manufacturer

Rochester’s Transcat Inc., a provider of accredited calibration, repair, inspection and laboratory instrument services, has acquired BioTek Services Inc. for $3.5 million. The Virginia-based company annually posts revenues of $2.1 million.

Founded in 1998 and headquartered in Richmond, Va., BioTek provides in-house and on-site laboratory instrument calibrations and certification/validation offerings nationally to life science and other regulated industries. BioTek offers ISO/IEC 17025-accredited and commercial calibrations services for pipettes and liquid handling devices, as well as other lab equipment within the temperature, time, humidity, speed and balance/scale disciplines.

BioTek Owner L. Parker Carwile will join Transcat under a consulting agreement.

Lee Rudow
Lee Rudow

“This acquisition is a natural fit within our growth strategy as it strengthens our life science position within the pipettes market and expands our market reach with onsite specialists providing remote services throughout the U.S.,” said Transcat President and CEO Lee Rudow. “We believe we can continue to drive growth in this important market channel by leveraging BioTek’s capabilities and national presence with our earlier acquisition of pipettes.com.”

Transcat is focused on providing best-in-class services and products to highly regulated industries, particularly the life science industry, which includes pharmaceutical, biotechnology, medical device and other FDA-regulated businesses; as well as aerospace and defense and energy and utilities. The company provides periodic on-site services, mobile calibration services, pickup and delivery, in-house services at its 22 calibration service centers strategically located in the U.S., Puerto Rico and Canada, and services at 20 embedded customer-site locations.

Shares of company stock (Nasdaq: TRNS) opened Wednesday at $35.61 but had fallen slightly to $34.81 by midday.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Transcat selects financial management veteran as CFO

Transcat Inc. has tapped a financial management veteran as its next CFO.

Mark Doheny succeeds Michael Tschiderer, who will provide support as needed until his retirement from Transcat at the end of 2020. Doheny brings more than two decades of diverse experience in financial management and leadership to the role.

Most recently, Doheny served as CFO at Wheelabrator Technologies, a waste management and environmental services company. Prior to that, he served four years as the CFO for Vallen Distribution Inc., a leading value-added distributor of indirect supplies, whose service business model is similar to Transcat’s, officials said.

“Mark brings a broad base of experience from larger organizations which we believe will help us advance our strategy to grow Transcat and expand profit margins. He is a talented executive with a track record of driving improved performance, delivering growth and demonstrating leadership,” said Transcat President and CEO Lee Rudow. “We believe his extensive background in mergers and acquisitions and strategic planning will help accelerate our efforts to scale our calibration service business and create lasting value for our shareholders. We are thrilled to welcome him to the Transcat team.”

Doheny also spent 11 years with Eaton Corp., holding a variety of progressively responsible leadership roles in finance, mergers and acquisitions, strategic planning and more. He has a B.A. from Hobart & William Smith Colleges and an MBA in finance from Rochester Institute of Technology.

“I am excited to join Transcat at a time of significant opportunity for the company,” Doheny said. “Transcat has built a solid business foundation and operating system. I look forward to working with the team to execute on our priorities to accelerate growth and enhance profitability.”

Transcat is a Rochester-based provider of accredited calibration, repair, inspection and laboratory instrument services and value-added distributor of professional grade handheld test, measurement and control instrumentation.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Transcat reports record second quarter operating income

Rochester’s Transcat Inc. this week reported record second-quarter operating income and a strong gross margin.

For the quarter ended Sept. 26, the manufacturer reported sales of $41.6 million, compared with $41.8 million in the second quarter last year. Net income for the quarter fell to $2.02 million from $2.38 million a year ago. Gross margin improve to 27.6 percent from 25 percent.

Lee Rudow
Lee Rudow

“Our service segment delivered another excellent quarter, reaching the second-highest gross margin level in company history,” said Transcat President and CEO Lee Rudow. “Technician productivity, expense reductions and strategic pricing drove the margin improvement, which was further helped by a favorable mix and the results of pipettes.com. Our teams have done a tremendous job leveraging our technology investments and have remained focused on driving efficiencies and better cost controls in our lab network.”

Operating expenses for the quarter increased nearly 14 percent due to investments to further technology initiatives and incremental expenses related to pipettes.com.

“In addition to the high level of performance in our service segment, we were certainly encouraged with the distribution segment, where sales grew significantly over our first quarter of fiscal 2021,” Rudow said. “Overall, our service margin performance helped drive record second quarter consolidated operating income of more than $3 million, exceeding our expectations. Additionally, we continued to generate strong cash from operations, which was used in part to reduce debt and fund technology investments.”

Transcat is a provider of accredited calibration, repair, inspection and laboratory instrument services.

“The results of the second quarter were strong and we are pleased with the significant progress made in our service margin expansion initiatives,” Rudow said. “Our balance sheet is solid and the M&A pipeline is active. Additionally, we believe our new customer pipeline positions us well for strong organic growth as we work through these current challenging times.”

Since reporting earnings on Tuesday, shares of company stock (Nasdaq: TRNS) have climbed from $27.63 to $31 midday Friday.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Transcat CFO to retire, new general counsel named

Transcat Inc. this week announced management changes included the retirement of Michael Tschiderer, vice president of finance and chief financial officer.

Tschiderer plans to retire this fall and will support the transition to a new CFO. Transcat has initiated an executive search for his successor.

“These have been exciting years of growth for Transcat and I have been honored to have been a part of the leadership team that has made that happen,” Tschiderer said in a statement. “In the last nearly five years we have executed well on our strategy to develop our services business with a focus on life sciences.”

Tschiderer noted that during those years Transcat completed numerous acquisitions and grew nearly 40 percent.

“Mike has been a vital member of the team and a respected leader whose insights and perspective helped shape our strategy,” Transcat President and CEO Lee Rudow said. “I am grateful for his contributions since joining Transcat in 2015 and his flexibility in planning his retirement to provide adequate time to transition his responsibilities. We wish him well in his retirement.”

Transcat also announced the appointment of James Jenkins as general counsel and vice president of corporate development beginning Sept. 14. Jenkins will lead the acquisition strategy for Transcat to grow both core and ancillary businesses.

Jenkins is a partner with Harter Secrest & Emery LLP and heads the firm’s securities practice area. He serves as partner in charge of the firm’s New York City office.

“Jim’s deep expertise and growth mindset, paired with his extensive experience working as Transcat’s outside counsel, make him the ideal choice to lead our acquisitive growth initiatives,” Rudow said. “With Jim on board we expect that we can accelerate our efforts to further our market penetration in the regulated calibration industry.”

Transcat is a provider of accredited calibration, repair, inspection and laboratory instrument services.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Transcat reports drop in Q1 sales, earnings

Transcat Inc., a Rochester-based provider of accredited calibration, repair, inspection and laboratory instrument services, this week reported an 8 percent drop in first-quarter sales and a more than 50 percent decline in net income.

For the quarter ended June 27, Transcat reported revenue of $38.9 million, down from $42.4 million in the year-ago quarter, missing Street estimates by $230,000. Operating income fell to $964,000, while net income dropped to $798,000 from $1.7 million in the first quarter last year.

On a per-share basis, earnings were 11 cents, beating Street estimates by 13 cents.

Lee Rudow
Lee Rudow

“We are extremely proud of our organization and the invaluable contributions our people made during these difficult times. Our staff at our 42 labs has worked tirelessly to remain open and meet the demands of our customers, particularly those in the life sciences sector,” said President and CEO Lee Rudow. “Our first-quarter results are a testament to the value and effective execution of our strategy. Our commitment to technology and process improvements positively impacted our results as increased productivity drove higher service segment gross margins. We believe the improvements are sustainable and we expect to see additional traction and margin enhancement as we move forward.”

The company’s service segment sales grew by $569,000 to roughly $23 million, while distribution sales fell by roughly $4 million to $15.9 million in the quarter.

“The 20 percent decline in distribution sales was expected and was the direct result of the impact of the COVID-19 pandemic on customer demand throughout the quarter,” Rudow said. “Nonetheless, the contribution from the service business combined with company-wide cost-saving measures, which we implemented early on in the pandemic to protect the financial strength and liquidity of the company, and which continued in our first quarter, resulted in operating income of $1.0 million for the first quarter. This exceeded our expectation of operating income being in the break-even range that we had forecast in May 2020 when we released fiscal year-end results.”

Looking ahead, the company expects operating income to grow sequentially from the first quarter of fiscal 2021 by roughly $1 million and to be in the range of $2 million for its second quarter of fiscal 2021.

“Encouragingly, service demand strengthened through June and into July, although we are cautious with our outlook given the trend in new cases of COVID-19 across North America,” Rudow said. “For the second quarter of fiscal 2021, we expect service revenue to grow modestly versus last fiscal year’s second quarter and anticipate improved gross margin. Distribution is likely to remain relatively unchanged sequentially.”

Since reporting earnings Tuesday, shares of company stock (Nasdaq: TRNS) have climbed from $28 to $28.80.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Transcat acquires Boston pipette supplier

Transcat Inc. has expanded its service and distribution business with the acquisition of TTE Laboratories Inc. Financial details of the transaction were not disclosed.

The Boston-based supplier was founded in 1989 and provides a broad range of pipette services, from ISO 17025 and 8655 compliant calibration to repair, refurbishment and replacement, calibration management and user training. TTE also sells a broad line of pipette equipment and supplies.

tte-hr-logo-e1523476447227-resizedTTE serves the life sciences market, including biotech and pharmaceutical, as well as research and development labs and universities. The company annually posts roughly $8 million in revenues, with 60 percent in calibration services and the remainder in product sales.

Less than a year ago, Transcat acquired a Canadian calibration software firm for about $1.07 million. Mississauga, Ontario-based Infinite Integral Solutions Inc. is the owner and developer of the CalTree suite of software solutions for the automation of calibration procedures and datasheet generation.

Earlier this month, Transcat reported an increase in third-quarter revenue to $43.2 million from $40.9 million in the same quarter last year. But net income fell 6 percent to $1.48 million in the quarter.

“We had solid growth in the third quarter, despite being heavily impacted by holiday timing that caused an unusually slow December. This low volume in the last month of our third quarter weighed on margins and masked the improvements we are seeing throughout the organization,” company President and CEO Lee Rudow said at the time. “Our Service operations are more efficient and our productivity metrics have improved over the course of this fiscal year, reflecting our focused efforts to hire and train an appropriate number of technicians to support our continued growth and to ensure customer satisfaction.

“We have a strong pipeline of organic and acquisition opportunities, and our performance metrics are a solid leading indicator of customer retention, all of which support belief in our execution and long-term strategy,” Rudow added.

Transcat is a Rochester-based provider of accredited calibration, repair, inspection and laboratory instrument services and value-added distributor of professional-grade handheld test, measurement and control instrumentation.

The company’s 52-week stock range (Nasdaq: TRNS) is $20.66 to $34.18.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Transcat beats analyst estimates in Q2

Transcat Inc. reported an improved bottom line in the second quarter, beating Street estimates.

For the quarter ended Sept. 30, the Rochester manufacturer reported revenue of $41.76 million, up more than 7 percent from $39.88 million last year. Net income improved to $2.38 million from $1.49 million. On a per-share basis, earnings improved to 32 cents.

Analysts had pegged earnings at 19 cents.

“Our initiatives to diversify and differentiate our value proposition are clearly resonating in the market,” Transcat President and CEO Lee Rudow said in a statement. “We achieved strong service segment revenue growth, particularly on the organic side, and had meaningful margin expansion in both operating segments driving our strong bottom-line results.”

Rudow said the company continues to expand its market position and is making strides in improving its margin profile.

“Specifically, the early results of our ongoing technology and productivity initiatives are taking hold as demonstrated in this quarter’s service segment performance,” he added.

For the six-month period, Transcat reported revenue of $84.2 million, an 11 percent increase from last year. Net income for the first half of fiscal 2020 was $4.1 million, or 55 cents per diluted share, compared with $2.9 million, or 39 cents per diluted share a year ago.

Transcat provides accredited calibration, repair, inspection and laboratory instrument services. The company announced this week the appointment of Oksana Dominach as an independent director. Dominach brings more than 32 years of experience to the role. She has been with Constellation Brands Inc. for some 16 years.

Since reporting second-quarter earnings last week, shares of company stock (Nasdaq: TRNS) have jumped more than 17 percent to $31.14.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Transcat acquires Canadian software firm

Transcat Inc. has acquired a Canadian calibration software firm for about $1.07 million.

Mississauga, Ontario-based Infinite Integral Solutions Inc. is the owner and developer of the CalTree suite of software solutions for the automation of calibration procedures and datasheet generation. Total consideration for the shares of IIS was $1.4 million, Canadian, officials said Monday.

CalTree will be an important piece of Transcat’s company-wide calibration automation platform that is expected to drive greater service segment efficiencies and enhanced margins.

Transcat is a Rochester-based provider of accredited calibration, repair, inspection and laboratory instrument services and a value-added distributor of professional grade handheld test, measurement and control instrumentation.

The company in May reported record quarterly and fiscal 2019 revenue. Transcat posted fourth-quarter sales of $44.5 million, up from $42.5 million in the fourth quarter last year. Net income for the quarter was $2.66 million, up more than 8 percent from $2.45 million last year.

In April, Transcat expanded its Southern California footprint with the acquisition of Gauge Repair Service. The company provides a broad range of pressure and torque calibrations and repair services at its Torrance, Calif., laboratory.

Shares of Transcat stock (Nasdaq: TRNS) were down nearly 4 percent Monday to $23.24.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Transcat posts record Q4, full year sales

Transcat Inc. on Wednesday posted record quarterly and fiscal 2019 revenue.

For the quarter ended March 30, Transcat posted sales of $44.5 million, up from $42.5 million in the fourth quarter last year. Net income for the quarter was $2.66 million, up more than 8 percent from $2.45 million last year. On a per-share basis, earnings were 35 cents.

Transcat beat Street estimates for earnings by 11 cents and revenue by $2.85 million.

For the full year, Transcat had revenue of $160.9 million, up nearly 4 percent from $155.14 million in fiscal 2018. Net income was $7.15 million, up from $5.92 million last year. Earnings per diluted share were 95 cents for the full year.

“The continued execution of our strategic plan, strength of our value proposition and favorable U.S. macro environment drove record sales and net income for the fiscal year,” President and CEO Lee Rudow said in a statement. “The service segment continued to deliver from a sales perspective, marking an impressive 10 years, or 40 consecutive quarters, of year-over-year quarterly sales growth.”

Organic growth in the service sector was strong, Rudow said. The company’s distribution business fell slightly in the fourth quarter and full year. Part of the company’s strategic focus continues to be on improving distribution segment gross profit by driving higher margin opportunities, company officials said.

“We continue to have confidence in our ability to grow service segment revenue and expect to improve our margins over time as we overcome short-term productivity pressures related to this growth,” Rudow said. “We are improving our processes around the hiring, training and onboarding of our ever-expanding technical workforce. In addition, we believe automation and improvements of our calibration service process will aid productivity improvement throughout our network of 21 labs.”

Transcat is a Rochester-based provider of accredited calibration, repair, inspection and laboratory instrument services. Company stock (Nasdaq: TRNS) closed Wednesday at $25.10, up more than 4 percent for the day.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Transcat acquires Southern California company

Rochester’s Transcat Inc. has expanded its Southern California footprint with the acquisition of Gauge Repair Service. Financial terms of the deal were not disclosed.

GRS was established in 1963 and provides a broad range of pressure and torque calibrations and repair services at its Torrance, Calif., laboratory. GRS is A2LA-accredited and complies with ISO 17025.2005 and ANSI/NCSL Z540.1 requirements.

Ted Haggstrom, President of GRS, will assist the transition under a consulting agreement and all other GRS employees are expected to become Transcat employees.

“We believe GRS is an ideal fit for Transcat as it addresses a key element of our acquisition strategy by leveraging our infrastructure, and adds a strong customer base,” said Transcat President and CEO Lee Rudow in a statement this week. “We look forward to welcoming the GRS team and their customers as they transition to our Los Angeles-area lab in Fullerton.”

Transcat is a provider of accredited calibration, repair, inspection and laboratory instrument services. The manufacturer is focused on providing best-in-class services and products to highly regulated industries, including life science, aerospace and defense, pharmaceutical, medical device manufacturing and biotechnology. Transcat provides permanent and periodic on-site services, mobile calibration services and in-house services through 21 Calibration Service Centers strategically located across the United States, Puerto Rico and Canada.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer