The following is a summary of the Transcat, Inc. (TRNS) Q4 2024 Earnings Call Transcript:
Financial Performance:
Transcat showcased a strong fiscal 2024 performance with an 11% double-digit organic service growth and 17% total service growth.
Consolidated revenue increased by 13% to reach $259 million.
Revenue Gross margins expanded to 32.3%, a growth of 270 basis points, buoyed by organic service revenue, improved productivity, and a higher rental mix in Distribution.
Adjusted EBITDA, a key metric for acquisition strategy, grew 27% from the previous year to $38.6 million.
Business Progress:
Transcat made three significant acquisitions in 2024: TIC-MS, SteriQual, and Axiom Test Equipment, which aimed to expand markets and make use of existing infrastructure.
Services offered by Transcat continue to be valued highly within their highly regulated markets, leading to an increase in Service margins.
The company reported a 60th consecutive quarter of YoY growth in the Service segment in the fourth quarter of fiscal 2024.
Distribution segment revenue for the full fiscal year 2024 increased by 5%, supported by the Axiom acquisition.
Expect future growth through acquisition of strategic companies that enhance customer value.
CapEx increased over the past year mostly due to the Axiom acquisition, a similar increase is expected with the Becnel acquisition in '25 to support rental expansion.
The company unveiled its new brand, TS3, which aims to provide more integrated services and appeal to historically hard-to-reach customers in highly regulated industries.
More details: Transcat IR
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