Q1

Fiscal 2024

Financial Results

Lee D. Rudow

President and CEO

Mark A. Doheny

Chief Operating Officer

Tom L. Barbato

Chief Financial Officer

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Safe Harbor Statement

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact and thus are subject to risks,

uncertainties and assumptions. Forward-looking statements are identified by words such as "expects," "estimates,"

"projects," "anticipates," "believes," "could," "plans," "aims" and other similar words. All statements addressing operating performance, events or developments that Transcat expects or anticipates will occur in the future, including but not limited to statements relating to anticipated revenue, profit margins, the commercialization of software projects, sales operations, capital expenditures, cash flows, operating income, growth strategy, segment growth, potential acquisitions, integration of acquired businesses, market position, customer preferences, outlook and changes in market conditions in the industries in which Transcat operates are forward-looking statements. Forward-looking statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include those more fully described in Transcat's Annual Report and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled "Risk Factors." Should one or more of these risks or uncertainties materialize, or should any of the Company's underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company's forward-looking statements, which speak only as of the date they are made. Except as required by law, the Company disclaims any obligation to update, correct or publicly announce any revisions to any of the forward-looking statements contained in this news release, whether as the result of new information, future events or otherwise.

This presentation includes some non-GAAP financial measures, which the Company believes are useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results compared in accordance with GAAP. The Company has provided a discussion of these non-GAAP financial measures and reconciliations of comparable GAAP to non-GAAP measures in tables found in the Supplemental Information portion of this presentation.

© 2023 Transcat Inc.

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Q1 FY24 Summary

Consolidated

Results

Q1 revenue up 11% to $60.6 million

Gross margin of 30.9%, an improvement of 160 bps from prior year Adjusted EBITDA increased 16% from prior year to $8.5 million

Service Segment

Q1 Revenue up 18% versus prior year; organic revenue growth of 11% Q1 Gross Profit grew 20% and gross margin expanded 50 bps to 32.5% Acquisition of SteriQual completed just after fiscal Q1 close

Distribution Segment

Q1 Gross Profit increased 10% versus prior year

Q1 Gross Margin expanded 270 bps to 27.7% driven by Rentals

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Revenue

($ in millions)

Service Segment

Distribution Segment

Consolidated

+11%

+18%

$20.8

0%

$20.7

$60.6

$54.7

$39.9

$33.9

Q1 FY23

Q1 FY24

Q1 FY23

Q1 FY24

Q1 FY23

Q1 FY24

Q1 Consolidated revenue up 11% on strong Service segment performance

Service revenue growth of 18% with strong organic growth of 11%

Q1 Distribution revenue consistent with prior year

All figures are rounded to the nearest tenth of a million. Therefore, totals shown in graphs may not equal the sum of the segments.

4

Gross Profit and Margin

($ in millions)

Service Segment

Distribution Segment

Consolidated

$13.0

$5.7

$10.8

$5.2

$16.0

+17% $18.7

32.0%

32.5%

25.0%

27.7%

Q1 FY23

Q1 FY24

Q1 FY23

Q1 FY24

Consolidated gross margin in Q1 of 30.9% expanded 160 bps

Service gross margin in Q1 of 32.5% expanded 50 basis points primarily due to improved productivity and Service organic revenue growth

Distribution gross margin expanded 270 bps driven by Rentals

29.3%30.9%

Q1 FY23

Q1 FY24

All figures are rounded to the nearest tenth of a million. Therefore, totals shown in graphs may not equal the sum of the segments.

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Transcat Inc. published this content on 31 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2023 20:30:37 UTC.