Transcat, Inc. (TRNS) has reported 19.85 percent rise in profit for the quarter ended Dec. 24, 2016. The company has earned $1.28 million, or $0.18 a share in the quarter, compared with $1.07 million, or $0.15 a share for the same period last year. Revenue during the quarter grew 25.37 percent to $37.81 million from $30.16 million in the previous year period. Gross margin for the quarter expanded 110 basis points over the previous year period to 23.58 percent. Total expenses were 93.78 percent of quarterly revenues, down from 94.42 percent for the same period last year. This has led to an improvement of 65 basis points in operating margin to 6.22 percent.
Operating income for the quarter was $2.35 million, compared with $1.68 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.90 million compared with $2.65 million in the prior year period. At the same time, adjusted EBITDA margin improved 154 basis points in the quarter to 10.32 percent from 8.78 percent in the last year period.
Lee D. Rudow, president and chief executive officer, commented, "We had a record setting quarter driven by strong revenue and margin performance in both of our business segments.
Operating cash flow drops significantlyTranscat, Inc. has generated cash of $3.87 million from operating activities during the nine month period, down 47.67 percent or $3.53 million, when compared with the last year period. The company has spent $11.05 million cash to meet investing activities during the nine month period as against cash outgo of $6.65 million in the last year period. It has incurred net capital expenditure of $4.08 million on net basis during the nine month period, up 9.22 percent or $0.34 million from year ago period.
Cash flow from financing activities was $6.93 million for the nine month period as against cash outgo of $1.40 million in the last year period.
Cash and cash equivalents stood at $0.56 million as on Dec. 24, 2016, up 267.76 percent or $0.41 million from $0.15 million on Dec. 26, 2015.
Working capital increases
Transcat, Inc. has recorded an increase in the working capital over the last year. It stood at $13.35 million as at Dec. 24, 2016, up 10.48 percent or $1.27 million from $12.08 million on Dec. 26, 2015. Current ratio was at 1.64 as on Dec. 24, 2016, down from 1.99 on Dec. 26, 2015.
Cash conversion cycle (CCC) has increased to 43 days for the quarter from 39 days for the last year period. Days sales outstanding were almost stable at 50 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 29 days for the quarter compared with 23 days for the previous year period. At the same time, days payable outstanding went up to 35 days for the quarter from 33 for the same period last year.
Debt increases substantially
Transcat, Inc. has witnessed an increase in total debt over the last one year. It stood at $26.20 million as on Dec. 24, 2016, up 148.60 percent or $15.66 million from $10.54 million on Dec. 26, 2015. Short-term debt stood at $1.43 million as on Dec. 24, 2016. Total debt was 28.70 percent of total assets as on Dec. 24, 2016, compared with 16.61 percent on Dec. 26, 2015. Debt to equity ratio was at 0.62 as on Dec. 24, 2016, up from 0.28 as on Dec. 26, 2015. Interest coverage ratio deteriorated to 12.52 for the quarter from 27.13 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
