Transcat, Inc. reported strong financial performance for the second quarter and the first six months of fiscal year 2025, ending September 28, 2024. Total revenue for the second quarter reached $67.8 million, an increase of $5.0 million or 8.0% compared to $62.8 million in the same period last year. For the six months, revenue totaled $134.5 million, up $11.1 million or 9.0% from $123.4 million in the prior year.
The company's gross profit for the second quarter was $21.2 million, reflecting a $1.1 million increase from $20.1 million in the previous year, while gross profit for the first half rose to $43.9 million, a 12.9% increase from $38.8 million. The gross margin for the second quarter was 31.3%, slightly down from 32.0% a year earlier. Operating income surged to $3.7 million for the second quarter, a significant increase of $2.1 million or 127.3% compared to $1.6 million in the prior year. For the six months, operating income was $8.8 million, up from $6.3 million.
Net income for the second quarter was $3.3 million, a substantial increase from $460,000 in the same quarter last year, while net income for the first half reached $7.7 million, compared to $3.4 million in the prior year. Basic earnings per share for the second quarter were $0.36, up from $0.06, and for the six months, it was $0.84, compared to $0.44.
The company’s service revenue for the second quarter was $44.1 million, up 6.4% year-over-year, while distribution revenue increased by 11.1% to $23.7 million. The growth in distribution revenue was attributed to acquisitions and increased rental revenue, despite slower demand for non-rental products.
Transcat made strategic acquisitions, including Becnel Rental Tools, LLC for approximately $49.8 million and Axiom Test Equipment, Inc. for $38.7 million, enhancing its service and distribution capabilities. The acquisitions contributed $4.7 million in revenue and incurred operating losses, reflecting integration costs and amortization of intangible assets.
As of September 28, 2024, total assets increased to $323.6 million from $287.6 million as of March 30, 2024, with total shareholders' equity rising to $268.8 million. The company maintained a strong liquidity position with $80.0 million available under its revolving credit facility, with no amounts outstanding. The effective tax rate for the first half of fiscal year 2025 was 13.9%, down from 25.3% in the prior year, contributing to improved net income.
About TRANSCAT INC
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.